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Friday 2 June 2023
Federal Jury Convicts Richfield Man for Fentanyl ConspiracyRead the Press Release
MINNEAPOLIS – A federal jury found a Richfield man guilty of conspiracy to distribute fentanyl, announced U.S. Attorney Andrew M. Luger.
Following a two-day trial before Chief Judge Patrick J. Schiltz, Marquice Shaquan Morris, 26, was convicted on one count of conspiracy to distribute fentanyl.
According to evidence presented at trial, from spring 2022 to October 2022, Morris and his coconspirator Brandon Pierre Johnson, 34, of Chicago, conspired to distribute approximately 83,000 fentanyl pills, weighing about 18 pounds, or 8.3 kilograms. In late September 2022, Morris and Johnson agreed to fly from Minnesota to Arizona to pick up the fentanyl, then Johnson would bring the drugs back to Minnesota on a bus, to give them back to Morris. In return, Morris agreed to pay Johnson $1,500. On September 30, 2022, Morris and Johnson flew from Minnesota to Arizona and obtained the fentanyl pills from Morris’s source. Morris then flew home, while Johnson boarded a Greyhound bus to St. Paul. Johnson carried the pills along with a loaded 9 mm handgun onto the bus, in a duffle bag. When Johnson’s bus stopped in Amarillo, Texas, law enforcement officers found and seized the fentanyl pills and the gun. Officers arrested Johnson.
On March 17, 2023, Johnson pleaded guilty in U.S. District Court before Chief Judge Patrick J. Schiltz to conspiracy to distribute fentanyl. Johnson is scheduled to be sentenced on August 7, 2023.
Morris is scheduled to be sentenced on October 12, 2023.
This case is the result of an investigation conducted by the Drug Enforcement Administration and the Amarillo Police Department.
Assistant U.S. Attorneys Matthew D. Forbes, Harry M. Jacobs, and Thomas M. Hollenhorst tried the case.
Eufaula Resident Sentenced for Murder in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced today that William Clayton Brown, age 40, of Eufaula, Oklahoma, was sentenced to consecutive life sentences in prison for one count of First Degree Murder in Indian Country and one count of Second Degree Murder in Indian Country.
The charges arose from investigations by the Eufaula Police Department, the District 25 Violent Crime Task Force, the Oklahoma Department of Corrections Office of Fugitive Apprehension and Investigations, and the Federal Bureau of Investigation.
On September 1, 2021, Brown was found guilty by a federal jury of Second Degree Murder in Indian Country. During the trial, the medical examiner testified Brown fatally stabbed a victim with a sharp instrument. Further testimony revealed Brown attempted to hide the victim’s body in a field.
On July 7, 2022, a federal jury found Brown guilty of First Degree Murder in Indian Country. During the trial, witnesses testified that while in the Oklahoma State Penitentiary in McAlester, Brown killed a second victim in a cell, strangling him with a ligature before beating him and suffocating him with plastic bags.
“William Brown has proven he is a hardened and violent criminal, and a true menace to society,” said FBI Oklahoma City Special Agent in Charge Edward J. Gray. “For the lives he took and the families he affected, he has duly earned each of his life sentences. Thanks to the efforts of the FBI and our law enforcement partners, Brown will never again endanger the citizens of Oklahoma.”
“The defendant is obviously an extremely violent person and the consecutive life sentences imposed by Court were fitting punishment for his heinous crimes,” said United States Attorney Christopher J. Wilson.
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted these cases because the defendant is a member of a federally recognized Indian tribe and the crimes occurred in McIntosh and Pittsburg Counties, which are within the boundaries of the Creek and Choctaw Nation Reservations, respectively, and within the Eastern District of Oklahoma.
The Honorable David C. Joseph, U.S. District Judge in the United States District Court for the Western District of Louisiana, sitting by designation, presided over the September 2021 trial and the sentencing hearings in Muskogee, Oklahoma.
The Honorable Jodi W. Dishman, U.S. District Judge in the United States District Court for the Western District of Oklahoma, sitting by assignment, presided over the July 2022 trial in Oklahoma City, Oklahoma.
Brown will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve non-paroleable sentences of incarceration.
Assistant United States Attorney T. Cameron McEwen represented the United States.
Drug Trafficking Organization Sentenced to More Than 184 Years Combined in Federal PrisonRead the Press Release
FAYETTEVILLE – The final member of a Northwest Arkansas drug trafficking organization was sentenced to federal prison for crimes related to the Distribution of Methamphetamine. The Honorable Judge Timothy L. Brooks presided over the sentencing hearings for the United States District Court in Fayetteville.
According to court documents, beginning in approximately September of 2020, agents with the Drug Enforcement Administration (DEA) initiated an investigation into a drug trafficking organization operating out of the Fayetteville Division responsible for distributing methamphetamine. During the course of their investigation, investigators identified both Steven Warner and Elmer Francis as leaders of this local group. Warner was further identified as a methamphetamine source of supply for the local group.
Those members of the drug trafficking organization indicted federally have been sentenced as follows:
Steven James Warner aka Misfit: age 46, McAlester, Oklahoma – Conspiracy to Distribute more than 50 grams of Methamphetamine – 400 months imprisonment and 5-year term of supervised release.
Elmer Nathaniel Francis aka Nathan: age 65, Cave Springs, Arkansas - Conspiracy to Distribute more than 50 grams of Methamphetamine – 327 months imprisonment and 5-year term of supervised release.
Vincent James Burrough: age 58, Spiro, Oklahoma - Conspiracy to Distribute more than 50 grams of Methamphetamine – 270 months imprisonment and 5-year term of supervised release.
Charley Edward Rouell Jr.: age 52, Stigler, Oklahoma – Conspiracy to Distribute more than 50 grams of Methamphetamine – 250 months imprisonment and 5-year term of supervised release.
Danial Wayne Plack: age 42, Fayetteville, Arkansas – Distribution of more than 50 grams of Methamphetamine – 188 months imprisonment and 5-year term of supervised release.
Michael Winberry: age 52, Cave Springs, Arkansas – Conspiracy to Distribute more than 50 grams of Methamphetamine – 180 months imprisonment and 4-year term of supervised release.
Cassandra Claire Webb: age 34, Fort Smith, Arkansas – Conspiracy to Distribute Methamphetamine – 60 months imprisonment and 3-year term of supervised release.
Eunice Felicitas Cisneros: age 44, Moreno Valley, California – Conspiracy to Distribute more than 50 grams of Methamphetamine – 135 months imprisonment and 4-year term of supervised release.
Landon Dale Thompson Jr.: age 42, Van Buren, Arkansas – Conspiracy to Distribute Methamphetamine – 87 months imprisonment and 3-year term of supervised release.
Christie Michelle Yandell Warner: age 49, Yukon, Oklahoma – Aiding and abetting in the distribution of more than 50 grams of Methamphetamine – 180 months imprisonment and 5-year term of supervised release.
Paul Eugene Wisdom: age 34, Fayetteville, Arkansas – Possession with Intent to Distribute Methamphetamine – 140 months imprisonment and 3-year term of supervised release.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Drug Enforcement Administration Fayetteville Resident Office investigated the case, and were assisted by the following federal and local agencies: United States Marshals Service, ATF, FBI, Benton County Sheriff’s Office, Rogers Police Department, Benton County Drug Unit, Bentonville Police Department, 4th Judicial District Drug Task Force, Washington County Sheriff’s Office, Arkansas Department of Community Corrections – Probation and Parole, Arkansas Counter Drug Unit, and the Arkansas State Police.
Assistant U.S. Attorney Kim Harris prosecuted the case for the United States.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Drug Traffickers Involved in Fatal Eastern Avenue Gunfight SentencedRead the Press Release
ROANOKE, Va. – A pair of Roanoke men involved in a fatal shooting at an Eastern Avenue drug house in the City of Roanoke were sentenced yesterday in federal court for their roles in the shootings and related drug trafficking activities.
Aaron Lee Woods, 28, was sentenced yesterday to more than 20 years in federal prison. Chad Matthew Custer, 23, was also sentenced yesterday to 16 years’ incarceration. Both men previously pleaded guilty to one count each of possession with intent to distribute and distribution of 100 kilograms or more of marijuana as well as one count of discharging a firearm in furtherance of a drug trafficking crime.
A third man, Darion Mantez Harvey was sentenced to 26 years in federal prison in May 2022 for related conduct.
According to court documents, in October 2018, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) began investigating a drug trafficking organization involving Woods, Custer, and Harvey.
During the course of the investigation, authorities learned that Woods, Harvey, Custer, and other co-conspirators used Woods’ apartment on Eastern Avenue as the primary site for their large-scale distribution of marijuana in the Roanoke Valley from late 2017 through approximately August 2019. Witnesses told police that customers would stream in and out of the apartment at all hours of the day and night buying marijuana from the defendants, who kept their loaded firearms in plain view.
In the early evening hours of July 10, 2018, a car containing five individuals arrived at the Eastern Avenue apartment where a gun battle broke out with Harvey, Woods, and Custer on one side and the newly-arrived individuals on the other. While four of the individuals fled on foot, a fifth individual was in a vehicle driving away from the scene when a bullet struck him in the back of the head and killed him.
Investigators recovered multiple firearms used by Woods, Harvey, and Custer during the shootout, including high-powered, military-style rifles with laser sights as well as multiple handguns and ammunition.
United States Attorney Christopher R. Kavanaugh, Special Agent in Charge Craig B. Kailimai of the Washington Division and Roanoke Police Chief Sam Roman made the announcement today.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the City of Roanoke Police Department investigated the case, with assistance from the Drug Enforcement Administration.
Assistant U.S. Attorneys Charlene R. Day, and Matthew M. Miller prosecuted the case for the United States.
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.
Dozens sentenced for their roles in Atlanta-based fraud and money laundering operation that stole over $30 million from individuals and companiesRead the Press Release
ATLANTA – More than three dozen individuals have been sentenced for their involvement in a large-scale fraud and money laundering operation that targeted individuals, corporations, and financial institutions throughout the United States. The defendants used business email compromise schemes, romance fraud scams, and retirement account scams, among other frauds, to steal more than $30 million from numerous victims.
“The Department of Justice has tirelessly worked for more than four years to obtain justice for dozens of victims impacted by this brazen criminal organization,” said U.S. Attorney Ryan K. Buchanan. “The defendants’ sentences should serve as a stark warning to others that fraud and money laundering crimes are top priorities for this office and our federal, state, and local law enforcement partners.”
“Several members of this conspiracy fraudulently obtained funds from ERISA-covered employee benefit plans. The funds, which originated from unwitting individuals’ retirement accounts, were deposited into personal and business bank accounts that were created in furtherance of this money-laundering conspiracy. The greed of the conspirators caused workers and prospective retirees to lose significant portions of their hard-earned retirement funds. We will continue to work with our law enforcement partners and the U.S. Department of Labor’s Employee Benefits Security Administration to protect the integrity of employee benefit plans,” said Mathew Broadhurst, Special Agent-in-Charge, Southeast Region, U.S. Department of Labor, Office of Inspector General.
“These fraud scams, although not violent, are not victimless and can be devastating to businesses and individuals who fall prey to them,” said Keri Fairly, Special Agent in Charge of FBI Atlanta. “The sentencing of all these individuals shows the FBI’s dedication to working with our partners to hold anyone accountable who would steal from hard working and honest individuals, rather than put in the work themselves.”
“These scammers defrauded individuals and companies with the sole purpose of enriching themselves,” said Acting Special Agent in Charge Travis Pickard, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI and its law enforcement partners will continue to work tirelessly to protect the integrity of the nation’s financial infrastructure and ensure that financial crimes do not go unpunished.”
“This sentencing illustrates the Secret Service’s dedication to protecting our nation’s financial systems,” said Steven R. Baisel, Special Agent in Charge of the U.S. Secret Service’s Atlanta Field Office. “We are thankful for our law enforcement partners’ commitment and support as we worked together to bring this case to justice.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: The defendants engaged in multiple fraud and money laundering conspiracies that stole millions of dollars from victims located throughout the United States and abroad. The defendants were charged across several related pending cases.
U.S. District Judge William M. Ray, II, sentenced the following individuals for their respective roles in this criminal scheme:
- Joshua Roberts, also known as “Onyx,” 32, of Houston, Texas, was sentenced to eight years and one month in custody, to be followed by three years of supervised release, and ordered to pay $9,675,739.73 in restitution to victims. He was sentenced on August 10, 2022, after pleading guilty to conspiracy to commit money laundering on March 29, 2022.
- Darius Sowah Okang, also known as “Michael J. Casey,” “Richard Resser,” “Thomas Vaden,” “Michael Lawson,” “Matthew Reddington,” and “Michael Little,” 32, of Stone Mountain, Georgia, was sentenced to seven years and 10 months in custody, to be followed by three years of supervised release, and ordered to pay $6,204,119 in restitution to victims. He was sentenced on March 17, 2022, after pleading guilty to conspiracy to commit money laundering and aggravated identity theft on September 2, 2021.
- George Kodjo Edem Adatsi, 39, of Atlanta, Georgia, was sentenced to five years and 10 months in custody, to be followed by three years of supervised release, and ordered to pay $3,373,797.43 in restitution to victims. He was sentenced on July 21, 2021, after pleading guilty to conspiracy to commit money laundering on April 7, 2021.
- Benjamin Ibukunoluwa Oye, 29, of Sandy Springs, Georgia, was sentenced to five years in custody, to be followed by three years of supervised release, and ordered to pay $1,163,127.01 in restitution to victims. He was sentenced on March 21, 2023, after pleading guilty to conspiracy to commit bank fraud, aggravated identity theft, conspiracy to commit money laundering, and money laundering on March 4, 2020.
- Prince Sheriff Okai, 29, of Mableton, Georgia, was sentenced to four years and nine months in custody, to be followed by three years of supervised release, and ordered to pay $4,950,586.54 in restitution to victims. He was sentenced on January 12, 2021, after pleading guilty to conspiracy to commit money laundering on October 6, 2020.
- Hamza Abdallah, also known as “Reggie Lewis,” 33, of McDonough, Georgia, was sentenced to four years and nine months in custody, to be followed by three years of supervised release, and ordered to pay $5,051,473.87 in restitution to victims. He was sentenced on February 24, 2021, after pleading guilty to conspiracy to commit money laundering on November 18, 2020.
- Dominique Raquel Golden, also known as “Desire Tamakloe,” “Mellissa Moore,” “Nicole Nolay,” “Raquel Roberts,” “Maria Henderson,” and “Raquel Golden,” 32, of Houston, Texas, was sentenced to four years and six months in custody, to be followed by three years of supervised release, and ordered to pay $7,830,607.05 in restitution to victims. She was sentenced on March 28, 2022, after pleading guilty to conspiracy to commit money laundering on September 30, 2021.
- Kelvin Prince Boateng, 27, of Atlanta, Georgia, was sentenced to three years and 10 months in custody, to be followed by three years of supervised release, and ordered to pay $870,333 in restitution to victims. He was sentenced on June 17, 2021, after pleading guilty to conspiracy to commit money laundering on March 2, 2021.
- Jonathan Kojo Agbemafle, also known as “Skinny,” 29, of Kansas City, Missouri, was sentenced to three years and 10 months in custody, to be followed by three years of supervised release, and ordered to pay $2,637,625.01 in restitution to victims. He was sentenced on August 8, 2022, after pleading guilty to conspiracy to commit money laundering on April 4, 2022.
- Blessing Oluwatimilehin Ojo, also known as “Timmy,” 37, of Nigeria, was sentenced to three years and 10 months in custody, to be followed by three years of supervised release, and ordered to pay $1,711,304 in restitution to victims. He was sentenced on October 26, 2022, after pleading guilty to conspiracy to commit money laundering on July 19, 2022.
- Desire Elorm Tamakloe, also known as “Chubby,” 28, of Smyrna, Georgia, was sentenced to three years and 10 months in custody, to be followed by three years of supervised release, and ordered to pay $1,215,357.81 in restitution to victims. He was sentenced on April 18, 2023, after pleading guilty to conspiracy to commit money laundering on October 13, 2022.
- Stephen Abbu Jenkins, also known as “Face,” “Steven Abbu Jenkins,” “Steven Jenkins,” and “Steve Jenkins,” 56, of Atlanta, Georgia, was sentenced to three years and seven months in custody, to be followed by three years of supervised release, and ordered to pay $726,290 in restitution to victims. He was sentenced on February 22, 2023, after pleading guilty to conspiracy to commit money laundering on August 8, 2022.
- Obinna Nwosu, 29, of Douglasville, Georgia, was sentenced to three years and one month in custody, to be followed by three years of supervised release, and ordered to pay $1,045,065.75 in restitution to victims. He was sentenced on December 16, 2020, after pleading guilty to conspiracy to commit money laundering on September 17, 2020.
- Ojebe Obewu Ojebe, 30, of Atlanta, Georgia, was sentenced to three years and one month in custody, to be followed by three years of supervised release, and ordered to pay $893,879.55 in restitution to victims. He was sentenced on September 27, 2022, after pleading guilty to conspiracy to commit money laundering on June 2, 2022.
- Francesco Benjamin, also known as “B-More,” 33, of Atlanta, Georgia, was sentenced to three years and one month in custody, to be followed by three years of supervised release, and ordered to pay $987,070 in restitution to victims. He was sentenced on March 1, 2023, after pleading guilty to conspiracy to commit money laundering on October 19, 2022.
- Chukwukadibia Ikechukwu Nnadozie, also known as “Chuka” and “Michael McCord,” 30, of Fayetteville, Georgia, was sentenced to three years and one month in custody, to be followed by three years of supervised release, and ordered to pay $231,507.19 in restitution to victims. He was sentenced on May 9, 2023, after pleading guilty to conspiracy to commit money laundering on November 28, 2022.
- Abubakar Sadik Ibrahim, 29, of Mableton, Georgia, was sentenced to three years in custody, to be followed by three years of supervised release, and ordered to pay $1,193,750.27 in restitution to victims. He was sentenced on February 1, 2022, after pleading guilty to conspiracy to commit money laundering on September 27, 2021.
- John Ifeoluwa Onimole, 31, of Powder Springs, Georgia, was sentenced to three years in custody, to be followed by three years of supervised release, and ordered to pay $1,117,966.06 in restitution to victims. He was sentenced on April 25, 2023, after pleading guilty to money laundering on December 7, 2022.
- Chadrick Jamal Rhodes, 31, of Atlanta, Georgia, was sentenced to two years and 11 months in custody, to be followed by three years of supervised release, and ordered to pay $120,000 in restitution to victims. He was sentenced on January 31, 2022, after pleading guilty to conspiracy to commit bank fraud and aggravated identity theft on October 12, 2021.
- Chadwick Osbourne Stewart, 43, of Atlanta, Georgia, was sentenced to two years and eight months in custody, to be followed by three years of supervised release, and ordered to pay $60,000 in restitution to victims. He was sentenced on January 26, 2022, after pleading guilty to conspiracy to commit bank fraud and aggravated identity theft on October 22, 2021.
- Macario Lee Nelson, a/k/a “Mac,” 27, of Atlanta, Georgia, was sentenced to two years and eight months in custody, to be followed by three years of supervised release, and ordered to pay $120,000 in restitution to victims. He was sentenced on February 17, 2022, after pleading guilty to conspiracy to commit bank fraud and aggravated identity theft on September 29, 2021.
- Afeez Olaide Adeniran, a/k/a “Ola,” 34, of Atlanta, Georgia, was sentenced to two years and six months in custody, to be followed by three years of supervised release, and ordered to pay $352,830.25 in restitution to victims. He was sentenced on October 6, 2022, after pleading guilty to conspiracy to commit money laundering on August 18, 2022.
- Kahlia Andrea Siddiqui, 31, of Chamblee, Georgia, was sentenced to two years and six months in custody, to be followed by three years of supervised release, and ordered to pay $325,811 in restitution to victims. She was sentenced on February 22, 2023, after pleading guilty to conspiracy to commit money laundering on August 9, 2022.
- Solomon Agyapong, also known as “Gumpe,” 34, of Marietta, Georgia, was sentenced to two years and six months in custody, to be followed by three years of supervised release, and ordered to pay $496,123.92 in restitution to victims. He was sentenced on April 18, 2023, after pleading guilty to conspiracy to commit money laundering on October 11, 2022.
- Christopher Akinwande Awonuga, 31, of Fayetteville, Georgia, was sentenced to two years and three months in custody, to be followed by three years of supervised release, and ordered to pay $113,276.27 in restitution to victims. He was sentenced on January 8, 2020, after pleading guilty to conspiracy to commit bank fraud on August 22, 2019.
- Emanuela Joe Joseph, 37, of Lawrenceville, Georgia, was sentenced to two years and three months in custody, to be followed by three years of supervised release, and ordered to pay $442,557.08 in restitution to victims. She was sentenced on February 21, 2023, after pleading guilty to conspiracy to commit money laundering on October 26, 2022.
- Seth Appiah Kubi, 63, of Dacula, Georgia, was sentenced to two years in custody, to be followed by one year of supervised release. He was sentenced on July 7, 2020, after pleading guilty to aggravated identity theft on March 4, 2020.
- Oluwafunmilade Onamuti, also known as “Mathew Kelvin,” 29, of Duluth, Georgia, was sentenced to one year and 10 months in custody, to be followed by three years of supervised release, and ordered to pay $167,195 in restitution to victims. He was sentenced on July 21, 2021, after pleading guilty to conspiracy to commit money laundering on April 7, 2021.
- Paul Chinonso Anyanwu, 31, of Hampton, Georgia, was sentenced to one year and six months in custody, to be followed by three years of supervised release, and ordered to pay $57,000 in restitution to victims. He was sentenced on December 19, 2019, after pleading guilty to conspiracy to commit money laundering on September 18, 2019.
- Casey Broderick Williams, 29, of Covington, Georgia, was sentenced to one year and one day in custody, to be followed by three years of supervised release, and ordered to pay $60,000 in restitution to victims. He was sentenced on June 2, 2022, after pleading guilty to conspiracy to commit bank fraud and aggravated identity theft on July 30, 2019.
- Alexus Ciera Johnson, 29, of Mableton, Georgia, was sentenced to one year and one day in custody, to be followed by three years of supervised release, and ordered to pay $106,879 in restitution to victims. She was sentenced on May 22, 2023, after pleading guilty to conspiracy to commit money laundering on October 11, 2022.
- Egale Veonzell Woods, Jr., 44, of East Point, Georgia, was sentenced to one year in custody, to be followed by three years of supervised release, and ordered to pay $165,007.19 in restitution to victims. He was sentenced on April 21, 2021, after pleading guilty to conspiracy to commit money laundering on March 4, 2020.
- Gregory Thomas Hudson, 42, of Powder Springs, Georgia, was sentenced to 10 months in custody, to be followed by 10 years of supervised release, and ordered to pay $125,291.45 in restitution to victims. He was sentenced on June 27, 2022, after pleading guilty to conspiracy to commit bank fraud on March 14, 2022.
- Uchechi Chidimma Odus, also known as “Uche,” 26, of Atlanta, Georgia, was sentenced to 10 months in custody, to be followed by three years of supervised release, and ordered to pay $83,345.47 in restitution to victims. She was sentenced on May 17, 2023, after pleading guilty to conspiracy to commit money laundering on December 21, 2022.
- Matthan Bolaji Ibidapo, also known as “B.J.,” 30, of Colorado Springs, Colorado, was sentenced to eight months in custody, to be followed by three years of supervised release with a portion to be served in home confinement and ordered to pay $82,490.50 in restitution to victims. He was sentenced on February 21, 2023, after pleading guilty to conspiracy to commit money laundering on November 1, 2022.
- Tyler Keon Roussell, 28, of Atlanta, Georgia, was sentenced to six months in custody, to be followed by six years of supervised release with a portion served in home confinement, and ordered to pay $368,400.49 in restitution to victims. He was sentenced on February 21, 2022, after pleading guilty to conspiracy to commit bank fraud on May 16, 2019.
- Monique Wheeler, 32, of Atlanta, Georgia, was sentenced to three months in custody, to be followed by three years of supervised release with a portion to be served in home confinement, and ordered to pay $71,010 in restitution to victims. She was sentenced on December 2, 2022, after pleading guilty to money laundering on July 13, 2022.
- Chineda Obilom Nwakudu, 28, of McDonough, Georgia, was sentenced to three years of probation with a portion to be served in home confinement and ordered to pay $123,645.85 in restitution to victims. He was sentenced on February 22, 2023, after pleading guilty to conspiracy to commit money laundering on August 23, 2019.
- Ahamefule Aso Odus, 30, of Atlanta, Georgia, was convicted by a jury on January 30, 2023, of conspiracy to commit money laundering and multiple substantive money laundering offenses. His sentencing is pending.
- Motswana Mulongo, also known as “David Mulongo” and “Henry Tipton,” 38, of Decatur, Georgia, was convicted of conspiracy to commit money laundering on March 10, 2023. His sentencing is scheduled for June 22, 2023.
- Oumar Bouyo Mbodj of Kennesaw, Georgia, is deceased, and charges filed against him were dismissed.
This investigation was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) program—the keystone drug, money laundering, and transnational organized crime enforcement program of the Department of Justice.
This case was investigated by the Department of Labor, Office of Inspector General, Federal Bureau of Investigation, U.S. Secret Service, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The investigating agencies received considerable support from the Department of Labor, Employee Benefits Security Administration, and numerous federal, state, and local law enforcement authorities.
Assistant U.S. Attorneys Kelly K. Connors and Russell Phillips prosecuted the case.
For further information, please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Court Sentences Mobile Man to Ten Years' Imprisonment for Armed Robbery of Dollar Tree StoreRead the Press Release
MOBILE, AL – On June 1, 2023, United States District Court Judge Terry F. Moorer sentenced Carlos Dominick Balams of Mobile to 120 months’ imprisonment for robbery and brandishing a firearm during the commission of a crime of violence.
Cleveland Man Sentenced in Drug Trafficking and Money Laundering ConspiracyRead the Press Release
AKRON – Devonn Fair, 31, of Cleveland, Ohio, was sentenced on Thursday, June 1, 2023, to 420 months or 35 years in prison by U.S. District Judge John R. Adams after he pleaded guilty to conspiracy to distribute and possession with intent to distribute controlled substances, possession with intent to distribute fentanyl, conspiracy to launder monetary instruments, money laundering, and being a felon in possession of a firearm and ammunition.
According to court documents, Fair was one of the leaders of a large-scale fentanyl trafficking organization that operated on the east side of Cleveland from September of 2019 to February of 2022. The Fair drug trafficking organization distributed fentanyl at several residences throughout the east side of Cleveland which drew customers from as far away as Medina, Wayne, and Lorain Counties. Fair and his organization profited from their crimes and laundered those profits with the purchase of expensive clothing, jewelry, and vehicles. In addition, Fair was prohibited under federal law from possessing a firearm due to previous felony convictions.
Fair was ordered to forfeit the unlawful proceeds of his crimes which included jewelry, $68,922 in U.S. Currency, and three vehicles.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation’s Cartel, Gang, Narcotics, and Laundering Task Force (CGNL), and the Internal Revenue Service Criminal Investigation Division (IRS-CID) with assistance from the Cleveland Division of Police, the Cuyahoga County Sheriff’s Office, the Ohio Investigative Unit, the Ohio State Highway Patrol, the Cleveland Heights Police Department, the Southeast Area Law Enforcement Task Force
(SEALE), the ATF, the U.S. Marshal’s Service, the DEA, and the Cuyahoga County Regional Forensic Science Laboratory. This case was prosecuted as part of the Organized Crime Drug Enforcement Task Force (OCDETF) national program.This case was prosecuted by Assistant United States Attorneys James Lewis and Joseph Dangelo.
Chicago Man Sentenced to 4 Years in Federal Prison for Two Retail Store Robberies in Illinois and IndianaRead the Press Release
ROCKFORD — A Chicago man has been sentenced to four years in federal prison in connection with a series of retail store robberies in Illinois and Indiana.
In 2016, YASHMINE ODOM and his co-conspirators carried out two violent robberies, using force and pepper spray to coerce store employees while stealing laptops, iPads, smart watches, and cell phones. During the robberies, Odom or his co-conspirators physically assaulted and restrained the employees.
On Dec. 10, 2016, Odom and his co-conspirators traveled to the Valparaiso Simply Mac store in Valparaiso, Ind., and forced store employees to the back of the store. Odom stayed in the car as the getaway driver while his co-conspirators carried out approximately $50,000 worth of stolen merchandise.
On Dec. 16, 2016, Odom traveled with eight co-conspirators to the Cherry Valley Simply Mac store in Cherry Valley, Ill. Odom and his co-conspirators forced employees to the back of the store, pepper sprayed one of them, and stole two computers.
Odom, 38, pleaded guilty last year to conspiracy and robbery charges. U.S. District Judge Philip G. Reinhard imposed the four-year sentence Wednesday after a hearing in federal court in Rockford.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The Rockford Police Department assisted in the investigation. The government was represented by Assistant U.S. Attorney Robert S. Ladd.
Chicago Man Sentenced to 22 Years in Federal Prison for Surreptitiously Recording Boys in YMCA Locker RoomsRead the Press Release
CHICAGO — A Chicago man has been sentenced to 22 years in federal prison for surreptitiously recording thousands of videos of nude boys inside YMCA lockers rooms.
For approximately two decades, MICHAEL PORTER surreptitiously recorded videos of nude boys inside the locker room at three Chicago-area YMCAs, where Porter was a member. Porter placed a video-recording device inside of a bag and then strategically placed the bag on the floor of the locker rooms. Porter sexually abused at least one of the boys, capturing the abuse on video.
During the investigation law enforcement seized from Porter six recording devices, seven cameras, 30 USB drives, hundreds of cassette tapes and DVDs, and two laptops. Law enforcement discovered in his possession 46,563 images and 44,553 videos depicting child pornography, including approximately 2,245 videos produced by Porter.
Porter, 58, pleaded guilty last year to federal charges of production, receipt, and possession of child pornography. In addition to the prison term, U.S. District Judge Sara L. Ellis on Thursday ordered Porter to pay $63,500 in restitution to victims.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the Cook County Sheriff’s Police Department.
“Michael Porter was a prolific manufacturer and collector of child pornography,” Assistant U.S. Attorneys Kristen Totten and Elly M. Peirson argued in the government’s sentencing memorandum. “Regardless of whether these images will ever surface again, the victims will live with the trauma imposed upon them by the defendant for the rest of their lives.”
If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by logging on to www.missingkids.com or by calling 1-800-843-5678. The service is available 24 hours a day, seven days a week.
Chicago Man Sentenced to 15 Years for Leading Cocaine ConspiracyRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Winfield Agee, 36, Chicago, Illinois, was sentenced today by Chief U.S. District Judge James D. Peterson to 15 years in prison for conspiring to distribute 5 kilograms or more of cocaine. Agee pleaded guilty to this charge on January 26, 2023.
The government’s investigation revealed that Agee was the undisputed leader of a large-scale drug trafficking organization that was responsible for bringing at least 50 kilograms of cocaine from Chicago to Madison between 2014 and 2020. As a result of his lucrative operation, Agee drove high-end cars, lived in posh luxury accommodations, and collected designer clothing, jewelry, shoes, and bags.
The investigation showed that beginning in approximately 2014, Agee, who resided in Chicago, began providing cocaine to various people, including several female associates, for redistribution around Madison. One source of information (SOI-1) reported that towards the end of 2014, she began transporting a kilogram of cocaine from Chicago to Madison twice per month for Agee. The arrangement between SOI-1 and the defendant continued for several years until SOI-1 was arrested in May 2018.
Another source of information (SOI-2) reported that she started transporting cocaine at Agee’s direction between Chicago and Madison beginning sometime in 2018. According to SOI-2, she was transporting a kilogram of cocaine a week to Madison in 2019 and 2020. SOI-2 recalled that Agee gave her very specific directions on how fast to drive, which lane to drive in, and what to do if she was stopped by the police. According to SOI-2, when she would arrive in Madison with the cocaine, she would wait for Agee to tell her where to deliver it.
On November 25, 2020, SOI-2 rented a car and drove to Agee’s home in Chicago to pick up a kilogram of cocaine. Surveillance footage revealed Agee putting a bag in SOI-2’s car outside of his apartment building. SOI-2 was in Chicago for less than 30 minutes. Madison Police officers stopped SOI-2 as she was driving in Madison and a search of her car revealed the kilogram of cocaine. SOI-2 reported that she had picked up the cocaine from Agee after she had collected money from one of his associates in Madison.
A third source of information (SOI-3) reported that she resided in the Madison area and beginning sometime in 2018, she would receive large quantities of cocaine from Agee that she would distribute to his associates in Madison. SOI-3 would pick up the cocaine from SOI-2 once it arrived in Madison.
All three sources of information described a similar method of operation used by Agee and his associates. Additionally, law enforcement agents were able to corroborate much of the information based on intercepted telephone communications and surveillances.
On December 3, 2020, officers executed a search warrant at Agee’s penthouse apartment in Chicago. During the search, officers found $6,041 in cash, key fobs for a Rolls Royce, and designer clothes, jewelry, shoes, and bags. Officers later located two vehicles belonging to the defendant in the parking garage of the apartment — a 2019 Rolls Royce SUV and a 2020 BMW M8.
The jewelry seized from Agee included a Patek Phillipe watch, a diamond bracelet, a diamond necklace, and diamond earrings. Based on an appraisal from a jewelry store, the total value of the four pieces of jewelry was $472,718.
At the sentencing hearing, Judge Peterson concluded that a significant sentence was warranted because Agee’s organization was responsible for bringing a tremendous amount of cocaine into Wisconsin for a significant period of time. Judge Peterson also noted that Agee’s extraordinary success as a drug trafficker allowed him to become wealthy by exploiting the illnesses of other people.
A total of eight individuals have been charged with and pleaded guilty to participating in the cocaine distribution scheme.
The charge against Agee is the result of a joint investigation by the Drug Enforcement Administration, Federal Bureau of Investigation, Wisconsin Department of Justice Division of Criminal Investigation, Madison Police Department, and the Dane County Narcotics Task Force. The investigation was conducted and funded by the Organized Crime Drug Enforcement Task Force (OCDETF), a multi-agency task force that coordinates long-term narcotics trafficking investigations. The prosecution of the case is being handled by Assistant U.S. Attorney Aaron Wegner.
Casper Woman Arraigned on Arson ChargesRead the Press Release
Lorna Roxanne Green, 22, of Casper, Wyoming, was indicted by a federal grand jury in May and was arraigned today for arson of a facility engaged in interstate commerce before U.S. Magistrate Judge Kelly H. Rankin. Green pleaded not guilty. A jury trial has been set for July 24, 2023, before U.S. District Court Judge Alan B. Johnson.
If convicted, Green faces a minimum of five years and up to 20 years’ imprisonment, up to a $250,000 fine, three years of supervised release, and a $100 special assessment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This crime is being investigated by the Casper Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Federal Bureau of Investigation.
An indictment merely contains allegations, and every defendant is presumed innocent unless and until proven guilty.
Case No: 23-CR-00066
Canadian Pastor Sentenced to 10 Years in Prison for Enticing a Minor to Engage in Illegal Sexual ActivityRead the Press Release
DETROIT – A Canadian pastor was sentenced yesterday to 10 years in prison for using the internet to entice of a 15-year-old girl to engage in illegal sexual activity, United States Attorney Dawn N. Ison announced.
Ison was joined in the announcement by Angie M. Salazar, Special Agent in Charge, Homeland Security Investigations, Detroit Field Office.
Timothy Milley, 69, of suburban Toronto, Canada, was sentenced by United States District Judge Judith E. Levy. In October 2022, Milley was convicted of the online enticement of a metro-Detroit minor. The investigation revealed that in the spring of 2013, Milley had communicated with the minor over the internet and shared text exchanges with her when she was 15 years old. After months of grooming, Milley traveled to the United States from Canada, and he convinced the minor to meet with him in front of her school in the Detroit area, where he picked her up. He took her to a hotel and had sexual intercourse with her there, before returning her to her school and abandoning her in front of the building. Milley’s crime was discovered years later when the minor victim—now an adult—looked up Milley online and found out that he had been charged and convicted in his native Canada for similar online solicitation of an undercover agent he thought was a minor. Following this discovery, the minor victim in the United States reported the incident to law enforcement agents at the U.S. Department of Homeland Security, who investigated and soon arrested Milley for his online solicitation of the minor victim here.
“This defendant groomed the vulnerable minor victim and preyed upon her youth and inexperience. Thanks to her bravery in coming forward years later, we were able to arrest him and prevent further victimization of other minors,” U.S. Attorney Ison said.
“Individuals who prey on children, especially those in positions of public trust, should expect to be held fully accountable for their actions,” said HSI Detroit Special Agent in Charge Angie. M. Salazar. “I commend the victim for her courage in coming forward to ensure that Milley is unable to continue to victimize and exploit children.”
This case was investigated by Homeland Security Investigations of the Department of Homeland Security, and it was prosecuted by Assistant U.S. Attorney Diane Princ.
California Man Sentenced to 78 Months for Conspiring to Distribute Pharmaceutical DrugsRead the Press Release
United States Attorney Steven Russell announced that Nicolas A. Decosta, 27, of California, was sentenced today in federal court in Omaha, Nebraska, for conspiring to distribute pharmaceutical controlled substances. United States District Judge Brian C. Buescher sentenced Decosta to imprisonment for 78 months. Upon release from prison, Decosta will be required to complete a 3-year term of supervised release. There is no parole in the federal system.
In the fall of 2019 investigators accessed an online dark net marketplace called “Empire Market” where they observed vendor “norco_king” advertising the sale of pharmaceutical controlled substances such as Oxycodone and Hydrocodone. Over the course of the investigation, investigators made a series of controlled buys of pharmaceutical controlled substances from norco_king on the dark net using an undercover identity. Norco_king accepted payment via Bitcoin and later Monero, both cryptocurrencies. The parcels containing the drugs were mailed from California to an undercover address in Omaha. Investigators reviewed surveillance video from the originating post offices in the vicinity of Desert Hot Springs, California, and identified Decosta’s codefendant, Jamal Holdman, as a suspect.
On June 21, 2021, investigators served a warrant to search Holdman’s residence in Desert Hot Springs. Upon searching the residence, investigators seized approximately 21,000 pills including a significant number of pharmaceutical controlled substances in Holdman’s bedroom including opioids Oxycodone, Hydrocodone, Morphine Sulfate, Hydromorphone, Tapentadol, Methadone, and Tramadol, several amphetamines including Lisdexamfetamine (commercially known as Vyvanse), and several benzodiazepines such as Lorazepam and Alprazolam. In addition, investigators seized 420 pressed “M30” pills, as well as postal service priority mailboxes and pre-paid labels for orders to include one that was addressed to be shipped to Nebraska. Although the color and markings on the “M30” tablets indicated they contained Oxycodone, they were later confirmed through laboratory testing to contain Fentanyl, a Schedule II controlled substance.
Holdman told investigators that he packaged and shipped the controlled substances and named Nicolas Decosta as the supplier of the drugs and dark net site vendor. Investigators corroborated this information and arrested Decosta. Holdman was sentenced to imprisonment for a term of 68 months on April 12, 2023.
This case was investigated by the United State Postal Inspection Service and the Drug Enforcement Administration.
California Man Sentenced to 132 months for Distribution of MethamphetamineRead the Press Release
United States Attorney Steven Russell announced that Jason Smith, 48, of Victorville, California, was today by Senior United States District Court Judge John M. Gerrard to a term of 132 months’ imprisonment following his conviction for possession with intent to distribute methamphetamine. After he completes his prison sentence, Smith will also serve five years on supervised release. There is no parole in the federal system.
On June 3, 2022, Smith was stopped for a traffic violation on Interstate 80 in York County, Nebraska by a Nebraska State Patrolman. The trooper became suspicious of Smith’s behavior and travel plans. A York County Deputy showed up with his drug detection dog which alerted and indicated to the odor of narcotics. During a probable cause search of the rental car, officers found approximately two pounds of methamphetamine packaged in two separate one-pound bags in the trunk. The trooper estimated the street value of the methamphetamine to be around $8,730. In the center console, officers found a methamphetamine pipe and a pill bottle with Smith’s name on the label, and which contained about four grams of methamphetamine. In the trunk, in addition to the drugs, officers found a suitcase with clothes and documents addressed to Smith.
The methamphetamine was sent to the Nebraska State Patrol Crime Lab for testing where a forensic scientist confirmed the presence of methamphetamine in both one-pound packages from the trunk as well and in the pill bottle found in the center console. Purity testing on one of the one-pound packages showed a methamphetamine concentration of 100% and resulted in at least 444.24 grams actual methamphetamine. The total weight of all methamphetamines in the car was approximately 886.5 grams. At the time of his arrest, Smith was serving a term of supervised release as a result of a conspiracy to distribute methamphetamine conviction out of Wisconsin from 2002.
This case was investigated by the Nebraska State Patrol, the York County Sheriff’s Office, and the Trident Drug Task Force, which is made up of officers from the Grand Island Police Department, Hall County Sheriff, Hastings Police Department, Adams County Sheriff, Kearney Police Department, Buffalo County Sheriff, Nebraska State Patrol, Homeland Security Investigations, and the Federal Bureau of Investigation.
Brooklyn Man Charged with Fraudulently Entering Competitor Laboratory and Destroying and Stealing EquipmentRead the Press Release
NEWARK, N.J. – A Brooklyn, New York, man was arraigned on charges he allegedly entered a laboratory business on false pretenses and destroyed and stole that business’ equipment, U.S. Attorney Philip R. Sellinger announced today.
Eric Leykin, 32, of Brooklyn, New York, was indicted on May 24, 2023, for committing wire fraud. He was arraigned June 1, 2023, before U.S. District Judge Esther Salas in Newark federal court.
According to documents filed in this case:
Leykin was the chief executive officer of a clinical reference laboratory based in New Jersey. Leykin’s laboratory competed against the victim business, another clinical reference laboratory also based in New Jersey. On June 30, 2022, Leykin bought and activated a prepaid mobile phone and called an employee of the business, claiming to be a technician with a vendor that the business used to service its laboratory equipment. On that false pretense, Leykin arranged with the victim business’ employee to come to the business on the following day, supposedly to service the business’ laboratory equipment. On July 1, 2022, Leykin went to the business, entered the premises fraudulently posing as a vendor technician, and proceeded to destroy a significant amount of the business’ laboratory and computer equipment. Leykin also stole multiple computer hard drives.
The wire fraud count carries a maximum potential penalty of 20 years in prison and a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; the Millburn Police Department, under the direction of Chief Brian Gilfedder; and the FBI in New York, under the direction of Assistant Director Michael Driscoll, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Andrew M. Trombly of the Cybercrime Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
leykin.indictment.pdfBook Readers Look on with Pride as Students Take Next Step in EducationRead the Press Release
MIAMI – As summer approaches, many schools are holding graduations. But for staff of the Law Enforcement Coordination and Community Outreach Section (LEC/COS) of the U.S. Attorney’s Office for the Southern District of Florida, two recent graduations were particularly special.
LEC/COS staff regularly hold monthly readings for pre-kindergarten students in an effort to develop in them a love of reading. And children from two of the reading program’s mainstay schools—Paul L. Dunbar K-8 Center in Miami and Trinity Christian Academy in Miami Gardens—have moved on … to kindergarten.
The students looked so excited on stage, hugging and high fiving one another as family members applauded and yelled words of encouragement. The elegantly dressed 4 and 5-year-olds beamed with pride.
“It’s tough to see them move on,” said Law Enforcement Coordination Specialist Mark McKinney. “You read to them many times during the year and develop a certain relationship. I’m proud of them for taking the next step in their education, but I am going to miss them.”
Law Enforcement Coordination Specialist Darcey Lindsley can relate.
“I have attended many graduations over the years and it’s always bittersweet,” she said. “We try to attend their graduation ceremonies to show our support and have one last group hug with them. It’s a special moment.”
In addition to the hug, Lindsley had a final message for the young students.
“Do you know what you have to do over the summer?” she asked to a group of future Dunbar K-8 Center kindergartners. “Read! Promise me, okay? I want you to continue to work on your reading skills so you’ll have good momentum heading into next school year.”
According to national literacy data, approximately 25 percent of children in America grow up without learning how to read. Also, upward of 80 percent of preschool programs in low-income neighborhoods lack age-appropriate books for their students. To help combat this, LEC/COS staff provide books for children to take with them to build up their home libraries.
“Reading is crucial to a child’s educational development and future success,” said LEC/COS Chief J.D. Smith. “We’ve seen the data. We know how important it is to get children interested in reading at a young age. If we can help a parent or teacher reinforce the importance of reading, we are glad to do it.”
Smith and staff have done these readings for about seven years and soon will have a fresh group of pre-K students to hear how difficult it is to catch that gingerbread man.
Anyone interested in donating children’s books may do so by emailing U.S. Attorney’s Office staff at [email protected] or by calling (305) 961-9134.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.
Parents, family members, and a whole bunch of balloons filled the auditoriums of two graduating pre-K classes at local South Florida schools. The students in these classes were part of a reading program put on by the Law Enforcement Coordination and Community Outreach Section of the U.S. Attorney’s Office for the Southern District of Florida.
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Billings man admits to distributing child pornographyRead the Press Release
BILLINGS — A Billings man today admitted to distributing child pornography using social media, U.S. Attorney Jesse Laslovich said.
Stetson Lee Hubbard, 33, pleaded guilty to distribution of child pornography. Hubbard faces a mandatory minimum of five years to 20 years of imprisonment, a $250,000 fine and five years to a lifetime of supervised release.
U.S. District Judge Susan P. Watters presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Sept. 27. Hubbard was detained pending further proceedings.
The government alleged in court documents that in January 2020, law enforcement began an investigation using a social media application and posed as woman from Wisconsin. Law enforcement entered multiple public groups that appeared to be focused on child pornography. While in one such group, a member of the group distributed child pornography. An investigation determined that the address associated with the distribution originated in Billings and ultimately led to Hubbard as the account’s owner. When interviewed, Hubbard acknowledged using the social media application and that he may have distributed child pornography on that application. Law enforcement subsequently found child pornography on Hubbard’s cellular phone.
Assistant U.S. Attorney Zeno B. Baucus is prosecuting the case. The FBI conducted the investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Bayamón Psychologist Sentenced to 19 years and 7 months of Imprisonment for the Attempted Coercion and Enticement of Two Minor FemalesRead the Press Release
SAN JUAN, Puerto Rico – W. Stephen Muldrow, United States Attorney for the District of Puerto Rico announced that this afternoon psychologist Samuel Pérez-Figueroa was sentenced to 235 months of imprisonment, equivalent to 19 years and 7 months, by Chief Judge Raúl Arias Marxuach of the United States District Court for the District of Puerto Rico for the attempted coercion and enticement of two minor females. Pérez-Figueroa will also have to serve an additional 6 years of supervised release and register as a sex offender.
Pursuant to the facts admitted by Perez-Figueroa as part of his plea agreement, he used a cellular telephone and internet instant messaging capabilities from October through November 2021 to knowingly attempt to persuade, induce, entice, and coerce two female minors, a 15-year-old and an 11-year-old, to engage in illegal sexual activity. Perez-Figueroa used his cellular phone to solicit sexually explicit images from two minors he was contracted to provide mental health services to. Chief Judge Arias indicated during the sentencing hearing that this crime was particularly disgraceful because Perez-Figueroa abused his position of trust as a psychologist. Instead of being a source of comfort for his patients, he chose to traumatize these minor victims.
The FBI conducted the investigation and Assistant United States Attorney and Chief of the Child Exploitation and Immigration Unit, Jenifer Y. Hernández-Vega, prosecuted the charges.
The U.S. Attorney’s Office and the FBI encourage other victims of sexual extortion to report this type of criminal behavior. If you or anyone you know has been the victim or a witness to this or any other federal crime, please call (787) 987-6500 or visit tips.fbi.gov. Tipsters may remain anonymous.
###Atlantic County Resident Admits Laundering Proceeds of COVID-19 Small Business Relief Program FraudRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man admitted laundering the proceeds of fraudulently obtained Paycheck Protection Program loans, U.S. Attorney Philip R. Sellinger announced today.
Jeremy Earley, 41, of Egg Harbor Township, New Jersey, and Lilburn, Georgia, pleaded guilty on June 1, 2023, before U.S. District Judge Karen M. Williams in Camden federal court to an information charging him with one count of engaging in a monetary transaction in criminally derived property.
According to documents filed in this case and statements made in court:
In 2020 and 2021, two companies owned by Earley received loans totaling more than $1.3 million from the Paycheck Protection Program (PPP), a federal program that provided forgivable loans to small businesses for job retention and certain other expenses. The loans were approved based on fraudulent applications submitted by conspirator Rhonda Thomas stating that the companies had dozens of employees and monthly payrolls of $145,000 and $382,400, respectively. The applications also contained forged tax forms. In fact, Earley’s businesses had no employees other than himself and paid minimal to no wages. After receiving the PPP loan proceeds, Earley wrote checks totaling nearly $400,000 to Thomas to compensate her for her role in submitting the fraudulent loan applications.
The charge of money laundering carries a maximum penalty of 10 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. Sentencing is scheduled for Oct. 13, 2023.
Rhonda Thomas previously pleaded guilty to bank fraud conspiracy and money laundering and was sentenced to five years in prison.
U.S. Attorney Sellinger credited special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, under the direction of Patricia Tarasca, Special Agent-in-Charge, New York Regional Office; special agents of the Social Security Administration, Office of the Inspector General, New York Field Division, under the direction of Special Agent in Charge Sharon MacDermott; special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia; and special agents of the U.S. Department of Labor, Office of the Inspector General, New York Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Daniel A. Friedman and Attorney-In-Charge Jason M. Richardson of the U.S. Attorney’s Office’s Criminal Division in Camden.
earley.information.pdfAlda Man Sentenced for Attempted Production of Child PornographyRead the Press Release
United States Attorney Steven Russell announced that Michael Melgaard, 54, of Alda, Nebraska, was sentenced today in Lincoln, Nebraska, by Senior United States Senior District Judge John M. Gerrard for two counts of attempted production of child pornography. Melgaard was sentenced to 240 months in prison and will also serve 10 years on supervised release. There is no parole in the federal system. Melgaard was additionally ordered to pay $6,000 which will contribute to funds established for victims of these types of crimes.
This case began in January of 2022, during a separate investigation involving Melgaard. As a result of this investigation, several search warrants were received and executed for Melgaard’s home and electronic devices. Melgaard’s devices were downloaded and forensically analyzed. Approximately 14 images that met the federal definition of child pornography were located. During the investigation, Melgaard agreed to be interviewed multiple times. He admitted that he had been taking nude photographs of several minors aged 4-11. These photographs would happen while the minor victims would change their clothes, showered, or while they were asleep. He indicated that he would keep the images for a short period of time before deleting them.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the Hall County Sheriff’s Office, the Grand Island Police Department, and the Department of Homeland Security.
Activity in the U. S. Attorney's OfficeRead the Press Release
Child Pornography
Michael Gregory Schaefer, age 38 of Cheyenne, Wyoming, was sentenced to 135 months in prison for receipt of child pornography and possession of child pornography. Chief U.S. District Court Judge Scott W. Skavdahl imposed the sentence, which included 10 years of supervised release following imprisonment and a $200 special assessment, on May 31, 2023. The case was investigated by the Cheyenne Police Department and U.S. Secret Service and prosecuted by Assistant U.S. Attorney Christyne M. Martens.
Drug Trafficking
Michael Anthony Smith, age 64, of Marianna, Arkansas, was sentenced on May 25, 2023, for possession with intent to distribute methamphetamine. U.S. District Court Judge Alan B. Johnson sentenced Smith to 70 months’ imprisonment with four years of supervised release and $100 special assessment. According to court records, on September 29, 2020, Michael Smith was observed speeding on I‑80. Before a Wyoming Highway Patrol trooper was able to conduct a traffic stop, Smith exited I-80 and parked at the Flying J truck stop in Cheyenne, Wyoming. A canine unit was deployed and alerted to the presence of a controlled substance coming from Smith’s vehicle. The vehicle was searched, and officers discovered over 14 kilograms of raw marijuana and over 1.6 kilograms of methamphetamine. Smith admitted he was a regular trafficker of controlled substances. The crime was investigated by the Wyoming Highway Patrol, Wyoming Division of Criminal Investigation, and the Cheyenne Police Department.
Wendy Delana Kaufman, age 51, of Gillette, Wyoming, was sentenced on May 26, 2023, for conspiracy to distribute methamphetamine. U.S. District Court Judge Alan B. Johnson sentenced Kaufman to 78 months’ imprisonment with four years of supervised release. She was also ordered to pay $500 in community restitution and a $100 special assessment. This crime was investigated by the Wyoming Division of Criminal Investigation and the Campbell County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Jonathan C. Coppom.
Firearms Offenses
Matthew Pruitt, age 20, of Cheyenne, Wyoming was sentenced on May 26, 2023, for being a felon in possession of a firearm to 27 months’ imprisonment with three years of supervised release and a $100 special assessment. U.S. District Court Judge Alan B. Johnson imposed the sentence. The crime was investigated by the Cheyenne Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Timothy J. Forwood prosecuted the case.A Native of Iraq and Citizen of the Netherlands Was Sentenced to 5 Years in Federal Prison for Possessing Firearms and Ammunition UnlawfullyRead the Press Release
DETROIT – A native of Iraq and citizen of the Netherlands, who has prior criminal arrests for Assault and Battery, Domestic Violence, Drug Possession, Malicious Destruction of Property, and Larceny, was sentenced this week to 5 years in federal prison for being an unlawful alien in possession of firearms and ammunition, announced United State Attorney Dawn N. Ison.
Ison was joined in the announcement by Chief Patrol Agent Robert Danley, United States Border Patrol, Detroit Sector.
Sentenced was Vires Al-Hakiem, age 43. Al-Hakiem was sentenced in federal court in Detroit on May 31 before United States District Judge Laurie Michelson.
According to court records, in June 2021, Al-Hakiem sent a text message containing a video to his then spouse threatening her with a gun. A subsequent search of Al-Hakiem’s bedroom found six firearms, 34 handgun magazines (7 of which were high capacity), 53 long-gun magazines (4 with extended capacity for ammunition) and over 2,600 rounds of ammunition. Al-Hakiem has prior criminal arrests for Assault and Battery, Domestic Violence, Drug Possession, Malicious Destruction of Property, and Larceny. In January 2023, Al-Hakiem pleaded guilty in federal court to being an unlawful alien in possession of a firearm and ammunition.
Al-Hakiem will be deported to the Netherlands when his sentence is finished.
“Our office is dedicated to enforcing our immigration laws. This defendant who already had a lengthy criminal history was both illegally present in the United States and illegally possessed a large number of guns and ammunition. “Today’s sentence makes our community safer,” stated U.S. Attorney Dawn Ison.
“Protecting our Nation’s borders goes beyond patrolling an imaginary line on the ground or water, as this case clearly shows. The United States Border Patrol is dedicated to protecting all our communities from dangerous people such as this, and I’m proud of our Detroit Sector agents and their task force partners for the great work that made this conviction possible,” said Chief Patrol Agent Danley.
This case was investigated by agents of the Border Patrol with the assistance of the FBI Macomb County Gang and Violent crime task force. The case was prosecuted by Assistant United States Attorney Susan Fairchild.
Thursday 1 June 2023
“Crips” Gang Member Receives More Than 15 Years in Federal Prison for Fentanyl Conviction After Leading Law Enforcement on a High-Speed Chase and Crashing His CarRead the Press Release
WILMINGTON, N.C. – Darrell Koonce, 36, of Kinston, was sentenced to 188 months in prison for possession with intent to distribute 40 grams or more of fentanyl. He pled guilty to the charge on February 22, 2023.
According to court documents and other information presented in court, on July 6, 2021, Koonce was stopped for erratic driving after he was observed leaving a known drug location in Kinston. When the Kinston Police Detectives approached the vehicle, they observed an odor of marijuana. During a search of the car, detectives located 40 grams of fentanyl and cash.
On August 4, 2022, officers observed Koonce driving a sedan on Ferrell Road in Lenoir County. The officers attempted to stop Koonce and serve a federal arrest warrant and Koonce initially stopped his car. However, Koonce then fled at a high rate of speed. Officers pursued him and Koonce’s car reached speeds in excess of 90 miles per hour. Koonce ultimately collided with a car that was travelling in the other lane of traffic, and he was arrested following the collision.
According to law enforcement, Koonce was a member of the Crips Gang and has prior convictions for Discharging a weapon into occupied property (2006), Common Law Robbery (2015), Assault Inflicting Serious Injury on a Detention Officer (2015), and Possession of a Firearm by a Felon (2020).
“As an agency, we’re extremely grateful that the U.S. Attorney’s Office had made it their focal point to assist communities such as Kinston,” said Kinston Police Chief Keith Goyette. “This sentence protects our community and places a career criminal where he belongs, in prison.”
This is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, 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.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Kinston Police Department and the Jacksonville Police Departments investigated the case and Assistant U.S. Attorney Timothy Severo prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:22-cr-00036-M-RJ-1.
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Wilson County Man Sentenced to 12 Years in Prison for Child Pornography OffensesRead the Press Release
RALEIGH, N.C. – A Lucama, N.C. man was sentenced yesterday to 144 months in prison for the receipt and possession of child sexual abuse material (CSAM) between April 2020 and August 2021. On February 7, 2023, Jason Ray Batten, 39, pled guilty to one count of receipt of child pornography.
According to court documents and other information presented in court, on November 23, 2020, an online undercover employee observed a user of the social media platform, Kik, posting links containing CSAM. Investigators traced the IP address used by the account back to North Carolina and ultimately identified the individuals to whom the subject user accounts were registered. On August 24, 2021, investigators executed a search warrant at Batten’s address and also confronted Batten at a nearby property. When confronted, Batten made a number of voluntary admissions, including that he had been involved in the transmission, receipt and possession of CSAM for approximately four years, was a member of multiple online groups known for sharing of CSAM, and even served as the moderator of one such online group. A full forensic examination revealed numerous image and video files of CSAM, including files depicting the sexual abuse of minors as young as infants, and a number of CSAM videos over 10 minutes long.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Federal Bureau of Investigation, Wilson County Sheriff’s Office, North Carolina State Bureau of Investigation, and Greenville Police Department investigated the case and Assistant U.S. Attorney Bryan M. Stephany prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:22-CR-00239-BO.
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Webster Woman Pleads Guilty to Stealing Hundreds of Thousands of Dollars from WegmansRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Alicia Torres, 47, of Webster, NY, pleaded guilty before U.S. District Judge David G. Larimer to wire fraud, which carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that Torres was employed at Wegmans Food Market, Inc. for approximately 27 years. Between 2014 and February 2023, she utilized the Enterprise System, which is used to fill customers' prescriptions, to fraudulently process approximately 350 credit card refund requests in customers' names with fictitious amounts. The fraudulent refund amounts were based on what Torres observed customers receiving in previous transactions. She then tricked the pharmacist on duty to sign off on and authorize the fraudulent refund requests. Once refund requests were approved, Torres paid the refund amounts to herself by swiping her bank debit card in Wegmans’ point of sale system. Between 2014 and February 2023, Torres received $568,021.69 in fraudulent refunds. In addition, between 2020 and February 2023, Torres fraudulently used Wegmans gift cards to steal $10,922.17 from Wegmans.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia.
Sentencing is scheduled for September 11, 2023, at 2:00 p.m. before Judge Larimer.
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Ware County man sentenced to federal prison for methamphetamine distributionRead the Press Release
BRUNSWICK, GA: A Ware County man has been sentenced to more than 15 years in federal prison for trafficking methamphetamine.
Jarvis Godwin, 39, of Homerville, Ga., was sentenced to 188 months in prison after pleading guilty to Distribution of Methamphetamine, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge Lisa Godbey Wood also ordered Godwin to serve three years of supervised release upon completion of his prison term. There is no parole in the federal system.
“Methamphetamine and other highly addictive illegal drugs deliver devastation to communities, no matter how rural or populous,” said U.S. Attorney Steinberg. “The Ware County area will be much safer with this meth merchant behind bars.”
As described in court documents and testimony, investigators from the Ware County Sheriff’s Office, Georgia Bureau of Investigation, and U.S. Drug Enforcement Administration initiated an investigation of Godwin’s drug trafficking activity in 2020 and documented multiple instances of Godwin selling large quantities of methamphetamine. The investigation culminated in Godwin’s indictment and arrest in September 2022. Godwin pled guilty to one count of methamphetamine distribution in December of 2022 and was scheduled for sentencing in April of 2023.
Godwin’s sentencing was delayed after investigators recovered evidence of Godwin’s continued involvement in the illicit drug trade. While in custody pending sentencing, Godwin engaged other individuals, through the use of jail communication facilities, in a conspiracy to import distributable quantities of methamphetamine and marijuana. The investigation resulted in the successful recovery of the illegal drugs before they could be further distributed.
Godwin has a long history of criminal convictions for drug offenses.
“Driven by greed, the defendant’s trafficking of methamphetamine on multiple occasions was a significant threat to the quality of life,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division. “As a result, he will have to deal with the consequences with significant time behind bars.”
“The sentencing of Jarvis Godwin for methamphetamine distribution underscores our commitment to combating the devastating impact of illegal drugs on our communities. Godwin's repeated convictions for drug offenses demonstrate his disregard for the well-being of our communities, but this outcome will contribute to a safer Ware County area,” said Mike Register, Director of the Georgia Bureau of Investigation. “We commend the collaborative efforts of the Ware County Sheriff's Office, the U.S. Drug Enforcement Administration, and our own investigators for their dedication in bringing Godwin to justice.”
The case was investigated by the U.S. Drug Enforcement Administration, the Georgia Bureau of Investigation, and the Ware County Sheriff’s Office, and prosecuted for the United States by Assistant U.S. Attorneys Bradley R. Thompson and Marcela C. Mateo.
Vallejo Man Pleads Guilty to Stealing Money from U.S. Postal Service TruckRead the Press Release
SACRAMENTO, Calif. — Former U.S. Postal Service employee Edison Small, 42, of Vallejo, pleaded guilty today to theft of government property, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on May 24, 2022, Small climbed inside a trailer that a USPS truck was towing in Vallejo while the truck was stopped at a red light. The trailer is used to transport money and mail. Once inside, Small grabbed a bag and hid it under his shirt. When the truck drove down the street, Small hopped out of the trailer. The bag contained $17,460 in cash, $1,300 in money orders, and $504 in checks. During a search of Small’s apartment, $15,240 was found.
This case is the product of an investigation by the U.S. Postal Inspection Service with assistance from the Federal Bureau of Investigation. Assistant U.S. Attorney Nicholas M. Fogg is prosecuting the case.
Small is scheduled to be sentenced by U.S. District Judge Daniel J. Calabretta on Sept. 7, 2023. Small faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Tyler Pollender-Savery Sentenced for Firearm CrimeRead the Press Release
Burlington, Vermont – The United States Attorney’s Office stated that Tyler Pollender-Savery, 28, of Ludlow, Vermont, was sentenced yesterday in the United States District Court in Rutland to a time-served sentence following his guilty plea to possessing firearms while being an unlawful user of controlled substances. Chief United States District Judge Geoffrey W. Crawford also ordered that Pollender-Savery serve two years of supervised release.
According to court documents, on December 10, 2018, Pollender-Savery was arrested and charged in state court in Windsor County, Vermont with second-degree murder in connection with the homicide of an infant. Following a jury trial in October 2022, the defendant was acquitted of those charges. As part of the investigation into the homicide, law enforcement searched Pollender-Savery’s residence and recovered nine firearms belonging to Pollender-Savery. Investigation further established that Pollender-Savery used both cocaine and marijuana in and around the time he possessed these firearms, and that he had assaulted someone with a firearm while using controlled substances.
This case was investigated by the Vermont State Police.
Assistant United States Attorney Wendy L. Fuller represented the government. David Sleigh, Esq. represented Pollender-Savery.
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. For more information about Project Safe Neighborhoods, please visit https://www.justice.gov/psn .Two Eagle Pass Trucking Company Employees Arrested for Alleged Wire FraudRead the Press Release
DEL RIO, Texas – Two Eagle Pass women were arrested Friday, May 26, on a four-count indictment related to their alleged scheme to defraud and embezzle money from their employer, a Texas-based trucking company headquartered in Eagle Pass.
According to court documents, Dina Maldonado Morales, 42, and Laura Ballesteros Haby, 52, allegedly used their positions with MH Group to divert the company’s customer account receivable payments to their own bank accounts. The total amount of the embezzled, diverted and stolen funds between July 2017 and April 2019 is alleged to have been approximately $1.4 million.
Both Morales and Haby are charged with one count of conspiracy to commit wire fraud and three counts of wire fraud and aiding and abetting wire fraud. The defendants made their initial court appearances on Tuesday before U.S. Magistrate Judge Collis White of the U.S. District Court for the Western District of Texas. If convicted, they each face a maximum penalty of 20 years in prison on the conspiracy count and 20 years in prison on the three wire fraud and aiding and abetting counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jaime Esparza of the Western District of Texas and Acting Special Agent in Charge Craig Larrabee of the Homeland Security Investigations San Antonio Division made the announcement.
HSI is investigating the case.
Assistant U.S. Attorneys Rex Beasley and Izaak Bruce are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Two Businessmen Plead Guilty to Wire Fraud Conspiracy for Orchestrating Large-Scale Investment SchemeRead the Press Release
CHARLOTTE, N.C. – Marlin Hershey, 53, and Dana Bradley, 53, both of Cornelius, North Carolina, appeared before U.S. Magistrate Judge David C. Keesler and pleaded guilty to wire fraud conspiracy for orchestrating a large-scale investment scheme, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
North Carolina Secretary of State Elaine F. Marshall and Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, join U.S. Attorney King in making today’s announcement.
According to filed court documents and the plea hearings, from approximately 2009 to 2021, Hershey and Bradley conspired to defraud numerous victims who invested in two unregistered securities offerings promoted by the defendants, Performance Retire on Rentals, LLC (Performance Retire), and Distressed Lending Fund (DLF). As the defendants admitted in court today, both projects eventually failed causing significant losses to investors.
As reflected in court documents, to induce investors to invest their money, Hershey and Bradley provided victims with investment materials for the two securities offerings that contained false and misleading statements and did not disclose material information. For example, Hershey and Bradley failed to disclose that they received commission-like payments based on the amount of investments they sold. In fact, the defendants often provided investors with offering materials that represented the opposite – that nobody would be paid a commission in connection with the investments. Contrary to their statements, the defendants received payments that were typically 10% of an investor’s initial investment and often received an additional payment when an investor extended an investment. In this manner, Hershey and Bradley received hundreds of thousands of dollars in undisclosed payments from the sale of securities. Filed documents also show that, in addition to these payments, the defendants received regular undisclosed “management” fees from Performance Retire and DLF.
According to court records, Hershey and Bradley also failed to disclose to investors other material information, including negative information about the defendants’ backgrounds and the financial woes faced by some of the entities for which they were soliciting investments. To the contrary, because the defendants often solicited the same group of investors to invest in the various projects, the defendants took steps to conceal such financial difficulties by making undisclosed loans to various entities so that the entities could, in turn, make their required interest payments to investors. Hershey and Bradley also solicited new investors and used the new investors’ money to repay the loans and to make Ponzi-style payments to previous investors. In addition, the defendants sent to investors periodic performance reports that failed to disclose material information about the status and health of their investments.
In 2019, investors learned for the first time that the projects in which they had invested were in financial distress and could no longer meet their significant obligations to investors.
After entering their guilty pleas the defendants were released on bond. The wire fraud conspiracy charge carries a maximum sentence of 20 years in prison and a $250,000 fine. A sentencing date has not been set.
In making today’s announcement U.S. Attorney King thanked the Securities Division of the North Carolina Secretary of State and the FBI for leading the joint investigation.
Assistant U.S. Attorneys Daniel Ryan and Taylor Stout, of the U.S. Attorney’s Office in Charlotte, are prosecuting the case.
Three Men Headed to Prison for Distributing Methamphetamine and Illegally Possessing FirearmsRead the Press Release
SHREVEPORT, La. - United States Attorney Brandon B. Brown announced the sentencing of three defendants in connection with cases involving the trafficking of narcotics and illegal possession of a firearm. United States District Judge S. Maurice Hicks, Jr. sentenced the following individuals:
Cedric Bell, 55, of Shreveport, was sentenced to 180 months in prison, followed by 5 years of supervised release, on drug and firearms charges. On August 20, 2021, a Caddo Parish Probation Officer searched Bell’s clothing and found a digital scale and cash in his pockets. When questioned by the officer, Bell admitted that he had some pills in his car and consented to a search of the vehicle. While searching Bell’s vehicle, officers found at least 50 grams of methamphetamine, a Taurus pistol, a Taurus revolver, and ammunition. Officers then searched Bell’s home and found ten more firearms, including two short-barreled rifles and a silencer. Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) examined the firearms and determined they functioned as designed. Bell admitted to possession of the methamphetamine with intent to distribute and carrying and using firearms during a drug trafficking offense.
The case was investigated by the ATF and Caddo Parish Office of Probation and prosecuted by Assistant U.S. Attorney Leon H. Whitten.
Demetrius Sumner, 44, of Shreveport, was sentenced to 60 months in prison, followed by 3 years of supervised release, on firearms charges. Sumner went to a local pawn shop in Shreveport in July 2021 and attempted to purchase four firearms. While completing the ATF Form 4473 to purchase the firearms, Sumner indicated on the form that he had not been convicted in any court of a misdemeanor crime of domestic violence. When in truth and in fact, Sumner had been convicted of a domestic violence charge in Clark County, Nevada on August 3, 2017. After waiting several days and not receiving an answer on Sumner’s background check to purchase the firearms, the pawn shop released them to Sumner. However, ten days later, the pawn shop received information denying Sumner’s application check due to his prior conviction. Law enforcement agents got the firearms back from Sumner and he admitted to making a false statement to a firearms dealer about his prior conviction.
The case was investigated by the ATF and prosecuted by Assistant U.S. Attorney Tennille Gilreath.
In a separate and unrelated case, United States Judge Dee D. Drell sentenced Julius Bernard Washington, 39, of Natchitoches, Louisiana to 70 months in prison for distribution of methamphetamine. In October 2021, Washington sold methamphetamine to an individual which was later seized by law enforcement agents. The total amount of actual methamphetamine distributed by Washington was approximately 301.5 grams. Washington pleaded guilty to the charge on January 25, 2023.
The case was investigated by the Federal Bureau of Investigation, Grant Parish Sheriff’s Office and Natchitoches Parish Sheriff’s Office, and prosecuted by Assistant U.S. Attorney Seth D. Reeg.
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Three Defendants Sentenced for Conspiracy to Commit Series of Commercial ArsonsRead the Press Release
MOBILE, AL – United States District Judge Terry F. Moorer has sentenced to prison three of eight defendants involved in a series of 2021 arson attacks at Walmart stores in Alabama and Mississippi.
The court sentenced Jeffery Sikes, a.k.a. “Kenneth Allen,” age 42, to serve 216 months in prison. Judge Moorer ordered Alexander Olson, age 23, to serve 180 months in prison. Finally, the court sentenced Quinton Olson, age 22, to serve 36 months in prison.
According to court documents and testimony during the sentencing evidentiary hearing, these defendants initially resided in Kearney, Nebraska, and lived in Lillian, Alabama, at the time of the conspiracy. Jeffery Sikes had entered a guilty plea to wire fraud in the District of Nebraska and absconded to Alabama with several co-defendants before he was sentenced in that case. While in Alabama, Sikes led a conspiracy with seven co-defendants to set fire to Walmart stores. The conspirators held a series of planning meetings in which they also drafted a document entitled the Declaration of War and Demands for the People that made various demands and threats against Walmart locations. Alexander Olson and Quinton Olson participated in these planning meetings. The defendants circulated this document to multiple media outlets to draw attention to the arson attacks. Multiple conspirators set malicious fires at four Walmart locations. Jeffery Sikes and Alexander Olson set fires at one Walmart location, and Alexander Olson was present during the malicious fires at all four locations. At the evidentiary hearing, the Court heard from multiple witnesses who suffered the impacts from these fires.
The defendants were arrested in February 2022 after a months-long investigation. They pleaded guilty to participation in a conspiracy to set these malicious fires.
“These three defendants deliberately endangered innocent shoppers and destroyed millions of dollars of merchandise when they intentionally and maliciously set fires in four stores in two states,” said United States Attorney Sean P. Costello. “Setting fire to a business isn’t an economic or political argument, it’s a serious violent crime that has serious consequences. These criminals were brought to justice thanks to the exceptional work of the men and women of the FBI, who demonstrated persistence, creativity, and professionalism throughout this complex investigation.”
FBI–Mobile Special Agent in Charge Paul Brown said, “Jeffery Sikes, the admitted mastermind of a series of Walmart store fires was sentenced to 18 years in federal prison, which was double the recommended prison term under the federal guidelines. This sentence was based on the totality and severity of the defendant’s actions. Sikes will also be required to pay approximately $7.3 million dollars in restitution to Walmart. This case demonstrates domestic terrorism continues to persist in a variety of forms. The investigative rigor and professionalism of the Mobile JTTF and its partners brought this investigation to a successful conclusion.”Co-defendants Erica Sikes, Jenna Sikes, and Mikayla Scheele are scheduled be sentenced by Judge Moorer on June 2, 2023. Michael Bottorff and Sean Bottorff are scheduled to be sentenced on June 12, 2023, and August 24, 2023, respectively.
This case was primarily investigated by FBI–Mobile. In addition, Mobile Fire Investigators, ATF–Mobile, FBI–Jackson, FBI–Omaha, and various FBI Headquarters components contributed to this investigation.
Assistant U.S. Attorneys Christopher Bodnar, Scott Gray, and Kasee Heisterhagen prosecuted this case on behalf of the United States. Substantial assistance was also provided by the U.S. Attorney’s Office for the District of Nebraska as well as the Department of Justice–Counterterrorism Section.
Three Charged in Multi-Million Dollar Pandemic Assistance Fraud SchemeRead the Press Release
DETROIT - Three Macomb County residents were charged for their alleged roles in a multi-million-dollar Paycheck Protection Program (“PPP”) fraud scheme, announced United States Attorney Dawn N. Ison.
Joining in the announcement were Special Agent in Charge James A. Tarasca, Federal Bureau of Investigation, Special Agent in Charge Angie M. Salazar, United States Department of Homeland Security, Homeland Security Investigations and Julia Dale, Director, Michigan Unemployment Insurance Agency.
Rita Shaba, 37, of Macomb and Samer Kammo, 43 of Shelby Township were charged in an indictment with conspiracy to commit wire fraud and bank fraud; wire fraud; bank fraud; false statements in connection with a bank loan; and, aggravated identity theft.
Christina Anasi, 33, of Shelby, was charged in a related criminal complaint with the same offenses, as well as money laundering.
According to the indictment and complaint, the defendants caused fraudulent PPP applications to be submitted for several business entities. Those applications are alleged to have misrepresented payroll information for the business entities and falsely certified that PPP loan funds would be used for permissible business-related purposes. The defendants are also alleged to have caused fictitious payroll, health insurance, bank, and tax records to be submitted in connection with the PPP loan applications.
According to court records, the defendants received over $3 million in fraudulent PPP loan funds. To date, law enforcement has seized and recovered over $2.1 million of those funds.
Anasi is also alleged to have engaged in unemployment insurance fraud.
The Paycheck Protection Program was created by Congress to provide assistance to businesses harmed by the economic dislocations caused by the Covid-19 pandemic.
U.S. Attorney Ison stated, “If you stole government funds designed to help other Americans make it through the global pandemic, my office—along with our law enforcement partners—is coming for you.”
“These defendants are charged with defrauding American taxpayers and stealing from businesses that were in desperate need of support during the COVID-19 pandemic,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “The FBI and are law enforcement partners remain committed to finding people who commit fraud and holding them accountable for their crimes.”
“The pandemic took a toll on our communities and local businesses, yet some saw that suffering as an opportunity to steal from their fellow citizens,” said HSI Detroit Special Agent in Charge Angie M. Salazar. “Our agents will continue to investigate instances of PPP fraud and help hold offenders accountable to the people we serve.”
“The Michigan Unemployment Insurance Agency’s Investigations Division has a long, successful record of identifying bad actors who steal money from hard-working Michiganders and Michigan businesses,” said UIA Director Julia Dale. “The close partnership that we have with federal law enforcement ensures fraudsters receive the justice they rightly deserve for violating the integrity of the state’s unemployment insurance program.”
The defendants face up to twenty years in prison based on the wire fraud and wire fraud conspiracy charges, and they face a maximum of thirty years in prison on the bank fraud and bank fraud conspiracy charges. Each of the defendants face consecutive two-year prison sentences for aggravated identity theft.
An indictment and a complaint are both only charges and are not evidence of guilt. Trial cannot be held on felony charges in a complaint. When the investigation is completed, a determination will be made whether to seek a felony indictment on the charges brought in the complaint. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the Federal Bureau of Investigation and the United States Department of Homeland Security, Homeland Security Investigations. The Unemployment Insurance Agency, Michigan Department of Labor and Economic Opportunity has also provided valuable assistance.
The case is being prosecuted by Assistant United States Attorney Andrew J. Yahkind. Related forfeiture matters are being handled by Assistant United States Attorney Michael El-Zein.
Texas Man Who Embezzled Nearly $10 Million from Employer Sentenced to Federal PrisonRead the Press Release
EL PASO, Texas – A Horizon City man was sentenced today to 60 months in prison and ordered to pay $9.8 million in restitution for wire fraud.
According to court documents, Ricardo Robles, 41, was employed in a position in which he was responsible for purchasing goods from suppliers. His employer would then resell the goods for profit. Robles created numerous sham companies beginning in 2010 and used those sham companies to purchase goods and inflate the prices along with his co-conspirators. On his employer’s behalf, Robles would then purchase from his sham companies and divert portions of those payments to his personal bank accounts.
“This case demonstrates the commitment of our prosecutors and our partners at the FBI to deliver justice to those who rob and defraud their own communities,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “These schemes have a devastating impact on businesses, as well as the employees and others who depend on those businesses for their livelihood.”
“The defendant violated the trust placed in him by his employer through the multi-year theft of company funds,” said Special Agent in Charge Jeffrey R. Downey of the FBI El Paso Field Office. “Today’s sentencing sends a strong message that those who engage in these types of fraudulent schemes will be held accountable. In this effort, one of our most important partners is the public, and we encourage citizens to continue to report corrupt activity to the FBI at tips.fbi.gov or call us at (915) 832-5000.”
The FBI investigated the case.
Assistant U.S. Attorney Christopher Mangels prosecuted the case.
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Tampa Armed Drug Trafficker Sentenced to 30 Years in Federal PrisonRead the Press Release
Tampa, FL – U.S. District Judge William F. Jung has sentenced Dempsey Gilmore (32, Tampa) to 30 years in federal prison for conspiring to distribute methamphetamine and marijuana, possessing with the intent to distribute methamphetamine and marijuana, carrying a firearm in furtherance of a drug trafficking crime, and possessing a firearm as a convicted felon. The court also ordered Gilmore to forfeit an HS Produkt (Springfield Armory) model XDM-45 .45 caliber pistol and ammunition, which were used in the commission of the offenses. A federal jury had found Gilmore guilty on March 9, 2023.
According to testimony and evidence presented at trial, on February 9, 2022, an officer from the Tampa Police Department (TPD) observed a red Dodge Charger fail to stop for a stop sign and attempted a traffic stop, but the vehicle fled at speeds over 100 miles per hour. A TPD Air Support Unit tracked and recorded the vehicle as it fled from the police, ultimately stopping near a residence, where the driver and passenger got out, scaled a fence, and ran into a house.
During the flight, the air unit recorded the vehicle temporarily stopping and its occupants throwing items from the car. TPD officers arrived at that location and, along the side of the road, found a bag containing almost 200 grams of 100% pure methamphetamine, a zip-top bag labeled “Dempsey,” and a fully loaded firearm (pictured below). They also found a box with bags of marijuana and a digital scale nearby.
After obtaining a search warrant for the house where the suspects had entered, officers ordered the occupants to exit the home. Several individuals immediately complied, but Gilmore and another man initially remained in the house before ultimately coming out. Officers found a security video from the house showing Gilmore and the other man running into the residence and located more marijuana inside the Dodge Charger that had been abandoned near the residence. A fingerprint recovered from the vehicle matched that of Gilmore.
Gilmore wad previously convicted of multiple felonies, including being a felon in possession of a firearm and escape. Therefore, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Tampa Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Samantha Beckman.
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.
Susquehanna County Man Pleads Guilty to Methamphetamine TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Justin Passetti, age 31, of Kingsley, Pennsylvania, pleaded guilty yesterday before U.S. District Court Judge Robert D. Mariani, to the charge of conspiracy to distribute more than 500 grams of methamphetamine.
According to United States Attorney Gerard M. Karam, Passetti admitted to conspiring with other individuals to distribute between 1.5 kilograms and 5 kilograms of methamphetamine in the Susquehanna County area in March 2020. The charge stems from an incident on March 11, 2020, in which the Pennsylvania State Police conducted a traffic stop of a vehicle in which Passetti was an occupant. A subsequent search of the vehicle resulted in the seizure of five pounds of crystal methamphetamine.
The charge against the defendant resulted from an investigation conducted by the Drug Enforcement Administration (DEA) and the Pennsylvania State Police. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Under federal law, the drug trafficking offense carries a maximum sentence of up to life in prison, 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.
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Suburban Chicago Man Sentenced to 18 Years in Federal Prison for Enticing Girl to Produce Sexually Explicit PhotosRead the Press Release
CHICAGO — A suburban Chicago man has been sentenced to 18 years in federal prison for enticing a 14-year-old girl to produce sexually explicit photos of herself and a younger sibling.
BRANDON T. HANAHAN, 26, of Bridgeview, Ill., pleaded guilty earlier this year to federal child pornography charges. U.S. District Judge Edmond E. Chang imposed the sentence Wednesday after a hearing in federal court in Chicago.
Hanahan admitted in a plea agreement that in 2016 he communicated on Instagram with the 14-year-old girl and enticed her to take sexually explicit photos of herself and send them to him. Over the next several months, Hanahan repeatedly instructed and enticed the girl, who lived in California, to send him explicit photographs. Hanahan also repeatedly asked the girl to send him sexually explicit photos of the girl’s younger sister, who was less than ten years old at the time. The 14-year-old girl complied with Hanahan’s requests and sent him numerous photographs of herself and the sibling via Instagram private messaging.
Law enforcement searched Hanahan’s residence and discovered more than 200 images of child pornography on his electronic devices.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Sean Fitzgerald, Special Agent-in-Charge of Homeland Security Investigations in Chicago. Valuable assistance was provided by the Orange County, Calif., Child Exploitation Task Force and the Santa Ana, Calif., Police Department. The government was represented by Special Assistant U.S. Attorney Malgorzata Tracz Kozaka.
If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by logging on to www.missingkids.com or by calling 1-800-843-5678. The service is available 24 hours a day, seven days a week.
Stockton Methamphetamine Trafficker Sentenced to 9 Years in Prison for Selling Methamphetamine through FacebookRead the Press Release
SACRAMENTO, Calif. — Eliyen Alejandro Alarcon-Flores, 31, of Stockton, was sentenced today by U.S. District Judge Troy L. Nunley to nine years in prison for conspiracy to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Alarcon-Flores was a methamphetamine trafficker based in Stockton who sold up to 30 pounds of methamphetamine at a time. In 2021, an undercover officer arranged to purchase methamphetamine from a Facebook account that Alarcon-Flores had set up under a fake name. After law enforcement had identified Alarcon-Flores’s distribution network, officers arrested Alarcon-Flores and searched his house. During the search, officers seized 13 pounds of methamphetamine.
This case was the product of an investigation by the Drug Enforcement Administration with assistance from the San Joaquin County Metropolitan Narcotics Task Force (METRO), the Stockton Police Department, and the U.S. Marshals Service. Assistant U.S. Attorney Justin Lee prosecuted the case.
On June 9, 2022, co-defendant Juan Jose Valenzuela-Bustamante was sentenced to 10 years in prison.
Santo Domingo Man Charged with Sexual Abuse of Minor, Receipt of Child PornographyRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Jordian Pacheco was arraigned on an indictment charging him with sexual abuse of a minor and receipt of child pornography. Pacheco, 32, of Santo Domingo Pueblo, and an enrolled member of the Pueblo of Santo Domingo, will remain in custody pending trial, which has not been scheduled.
A federal grand jury indicted Pacheco on May 24. According to the indictment and other court records, on Jan. 10, 2021, officers from the Navajo Police Department (NPD) responded to a call from a woman reporting that a man was hiding in the closet of her minor daughter, identified in court records as Jane Doe. When officers arrived at the residence, they located Pacheco. He provided officers with the name “Scott Nieto” and told them he was 18-years old and his mother had dropped him off at Jane Doe’s home. Pacheco was detained and transported to Window Rock Adult Detention Center.
NPD officers located an unknown vehicle outside Jane Doe’s residence and towed it. When they ran the plates, it came back as belonging to Pacheco. Officers spoke to Pacheco again who confirmed that he had given them false identification. Pacheco told NPD officers that he had met Jane Doe on Tik Tok a year before and that he knew she was a minor. During the interview Pacheco claimed to have lost his phone. Upon his release from Window Rock Adult Detention Center on Jan. 11, 2021, Pacheco gained access to his vehicle to retrieve his cellphone, however NPD intercepted him and seized his phone and 8 other devices located in the vehicle. NPS obtained a search warrant for the devices and extracted information which included sexually explicit conversations with and photos of Jane Doe, as well as other minors. Based on the evidence, the FBI expanded their search for additional minor victims of Pacheco who he contacted through social media between 2014 and 2018.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Pacheco faces up to 20 years in prison.
The FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department. Assistant United States Attorney Caitlin L. Dillon is prosecuting the case.
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Rocky Mount Man Involved in Raleigh Shooting Sentenced to More Than 12 Years in Federal PrisonRead the Press Release
RALEIGH, N.C. – Terrance Daniels, 34, of Rocky Mount was sentenced today to 150 months in prison for the possession of a firearm by a convicted felon.
According to court records and evidence presented in court, Terrance Daniels engaged in a shooting outside of a convenience store on Poole Road in Raleigh on July 6, 2022. The shooting was captured on video and Daniels could be seen firing the illegally possessed firearm nine times in the direction of two victims, one of whom was an acquaintance of Daniels. The two victims were engaged in a fist fight outside of the store when Daniels fired at them, striking them both in their legs. Daniels was charged with possession of a firearm by a felon and indicted on November 1, 2022. He pleaded guilty on February 7, 2023.
The conviction is a result of the ongoing Violent Crime Action Plan (VCAP) initiative which is collaborative effort with local, state, and federal law enforcement agencies, working with the community, to identify and address the most significant drivers of violent crime. VCAP involves focused and strategic enforcement, and interagency coordination and intelligence-led policing.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Raleigh Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case. Assistant U.S. Attorney Leonard Champaign prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:22-CR-00275-BO.
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Rochester Man Pleads Guilty to COVID FraudRead the Press Release
ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Kenyatta Phipps, 46, of Rochester, NY, pleaded guilty before U.S. District Judge Frank P. Geraci, Jr. to wire fraud. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that in February 2020, Phipps filed a federal income tax return for the tax year 2019, reporting wages and interest income of $13,273.00, which resulted in a refund of $696. In August 2020, Phipps attempted four times to file a second 2019 federal income tax return on which he falsely reported additional income he earned in the amount of $333,522 from a company he operated called Platinum Express Cleaning. If the returns were accepted Phipps would have received a fraudulent tax refund of $164,951. After all four attempts were rejected by the IRS, in September 2020, Phipps filed a fraudulent amended federal income tax return for the year 2019, which was accepted by the IRS. In the fraudulent return, Phipps falsely reported that Platinum Express Cleaning received gross receipts of $455,734 from Eastman Kodak Company and had taxes withheld from such income of more than $355,000. This resulted in Phipps receiving a fraudulent tax refund and tax loss to the IRS of $186,570.
In addition to defrauding the IRS, Phipps used information from the false tax returns to submit three fraudulent loan applications in the name of Platinum Express Cleaning to the Small Business Administration (SBA) in attempts to obtain COVID relief funding through the Economic Injury Disaster Loans (EIDL) program provided by the 2020 CARES Act. Phipps also falsely stated on the EIDL loan applications that Platinum Express Cleaning had more than 120 employees which would have qualified his company for $573,200 on EIDL program loans. Prior to funding the EIDLs program loans, the SBA discovered the fraudulent loan applications and did not fund the loans.
The plea is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent in Charge Thomas Fattorusso.
Sentencing is scheduled for August 20, 2023, before Judge Geraci.
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Retired New Jersey Doctor Sentenced for Selling Toxic DNP Online and Faking Cancer Diagnosis to Avoid TrialRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that William Merlino, 85, of Mays Landing, NJ, was sentenced to thirty-three months in prison and one year of supervised release by United States District Court Judge Gerald A. McHugh for selling misbranded drugs online and obstruction of justice.
The chemical 2,4-Dinitrophenol (“DNP”) has a variety of industrial and commercial uses, such as herbicides, dyes, and wood preservatives. In the 1930s, before federal law required drugs to be proven safe before they were marketed, DNP was used as a weight-loss drug despite significant adverse side effects, including dehydration, cataracts, liver damage, and death. Owing to DNP’s toxicity, the U.S. Food and Drug Administration (“FDA”) has never approved DNP for human consumption.
A year-long investigation by the FDA revealed that Merlino, a retired physician, packaged and sold DNP for human consumption as a weight-loss drug, and that he used Twitter to advertise, eBay to sell, and email to communicate with customers in the U.S., Canada, and the U.K. Merlino operated his online business out of his home from at least November 2017 until March 2019, and earned approximately $54,000 from his sales of DNP to hundreds of customers. A search warrant executed at the defendant's residence recovered bulk DNP, packaging and encapsulating materials, and a pill press.
In December 2019, Merlino was charged with one count of introduction of misbranded drugs into interstate commerce in connection with operating his illegal business, and in August of 2021, while under indictment and awaiting trial on the misbranding charge, he faked a diagnosis of pancreatic cancer in order to avoid trial. Based on forged medical records and doctor’s letters submitted to the court, Merlino’s trial was delayed several months. When the obstruction was discovered in January 2022, he was charged with obstructing justice and detained.
In August 2022, Merlino was convicted at trial of the misbranding charge, and subsequently pleaded guilty to the obstruction charge in January 2023. During the trial, a witness from the shipping service the defendant used to ship the drug to customers testified that they referred to Merlino among their colleagues as “the yellow man,” owing to the fact that every time he would bring in a package to ship, they would see yellow dust from the chemical on his skin, nails, and clothes. At sentencing, the government presented evidence that a customer in the U.K. died of DNP toxicity after ingesting pills he purchased from Merlino, who knew that DNP was toxic to humans and illegal to market as a drug.
“Misbranding and selling a toxic chemical not fit for human consumption as a diet drug places the public at grave and obvious risk,” said U.S. Attorney Romero. “The defendant’s deliberate, dangerous, and deceptive conduct in this case was egregious, and resulted in the tragic loss of a life. His faking having cancer to avoid accountability in our justice system only underscores his shocking contempt for the law.”
“Distributing unapproved and potentially toxic drugs under false labeling and in a deliberate attempt to avoid regulatory scrutiny endangers consumers who are in many cases desperate for treatment,” said Special Agent in Charge George A. Scavdis, FDA Office of Criminal Investigations Metro Washington Field Office. “The fact a medical professional was involved makes the situation ever more troubling. We will continue to pursue and bring to justice those who jeopardize the public health.”
The cases were investigated by the U.S. Food & Drug Administration Office of Criminal Investigations, U. S. Postal Inspection Service, and Homeland Security Investigations (“HSI”) Atlantic City under the HSI Newark office and are being prosecuted by Assistant United States Attorney Joan Burnes.
Registered Sex Offender from Beverly Indicted for Possessing Child PornographyRead the Press Release
BOSTON – A Beverly man has been indicted by a federal grand jury in Boston on a child pornography offense.
Robert Miller, 58, was charged with one count of possession of child pornography. Miller was previously arrested and charged by criminal complaint with the same offense on May 3, 2023.
According to court documents, this case arose from an investigation of a secure online chat platform often used for, among other things, accessing and exchanging child pornography. Miller was identified as an alleged member of a large-scale group chat trading child pornography on the platform. During a search of Miller’s residence today, approximately 15 electronic devices were seized and allegedly found to contain multiple videos depicting child pornography.
In September 2018, Miller was convicted of possession of child pornography in Essex County Superior Court, for which he received a three-year probationary sentence and was required to register as a sex offender in Massachusetts.
Due to Miller’s prior conviction, the charge of possession of child pornography provides for a sentence of up to 20 years in prison with a 10 year mandatory minimum period of incarceration, at least 5 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 United States Attorney Joshua S. Levy; Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations in New England; and Beverly Police Chief John G. LeLacheur made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Levy’s Major Crimes Unit is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
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.
Registered Sex Offender Charged with Coercion and Enticement of 15-Year-Old in Orange CountyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today an Indictment charging CURTIS ELLINGTON with enticing a minor to engage in unlawful sexual activity and committing this offense while being a registered sex offender. ELLINGTON was arrested in Kansas on April 27, 2023, and detained pending his transfer to White Plains federal court. Today, ELLINGTON was arraigned in White Plains and detained.
U.S. Attorney Damian Williams said: “Curtis Ellington, a convicted rapist, was allegedly undeterred by his previous involvement with the criminal justice system. This case underlines the urgent need for law enforcement to continue its efforts to protect children from those who prey on them. We will use every tool available to law enforcement to investigate and prosecute those alleged to have sexually exploited children. We encourage anyone who may have additional information into Curtis Ellington’s conduct to please call the FBI at 1-800-CALL-FBI.”
As alleged in the Complaint filed on April 26, 2023, and the Indictment filed on May 24, 2023, in White Plains federal court:[1]
CURTIS ELLINGTON was convicted on or about January 12, 2007, in Orange County Court of Rape in the First Degree: Intercourse with A Person Less Than 11 Years Old and sentenced to seven years in prison. As a result of this conviction, ELLINGTON is required to register as a sex offender.
On or about April 7, 2023, ELLINGTON slept at the home of a 15-year-old minor (“Victim-1”) and, while there, engaged in sexual activity with Victim-1. Prior to engaging in sexual activity with Victim-1, ELLINGTON and Victim-1 engaged in numerous communications via Instagram in which ELLINGTON, who used the Instagram screen name “Godson,” discussed his desire to engage in sexual activity with Victim-1.
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ELLINGTON, 33, of Junction City, Kansas, is charged in Count One with enticing a minor to engage in unlawful sexual activity and in Count Two with engaging in this offense while a registered sex offender. Count One carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison. Count Two carries a mandatory sentence of 10 years in prison, which must be imposed to run consecutive to any sentence imposed in connection with Count One.
The statutory minimum and maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams stated that the investigation is ongoing. Mr. Williams requests that any individuals who have information with respect to CURTIS ELLINGTON contact the Federal Bureau of Investigation (“FBI”) Tip Line at 1-800-CALL-FBI.
Mr. Williams praised the efforts of the FBI, the Geary County Sheriff’s Office, the U.S. Attorney’s Office for the District of Kansas, and the Middletown Police Department in connection with this investigation.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Marcia S. Cohen is in charge of the prosecution.
The charges contained in the Complaint and the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and Indictment and the description of the Complaint and Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
u.s._v._ellington_complaint.pdf u.s._v._ellington_indictment.pdfRapid City Brothers Found Guilty of Drug TraffickingRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that U.S. District Judge Jeffrey L. Viken has convicted Elias Condon, age 24, and Jordan Condon, age 22, both of Rapid City, South Dakota, of Conspiracy to Distribute a Controlled Substance following a two-day court trial in federal district court in Rapid City, South Dakota. The verdict was returned on May 24, 2023.
The charge carries a mandatory minimum of 10 years up to life in custody and/or a $10,000,000 fine, five years up to life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Elias Condon and Jordan Condon were indicted by a federal grand jury in July 2021. During their involvement in the conspiracy, the brothers made multiple trips to the Denver, Colorado, area where they purchased methamphetamine. They then returned to South Dakota and distributed the methamphetamine to others to further sell or use. Several times the defendants brought firearms to trade for the methamphetamine. Two co-conspirators have already pleaded guilty to their involvement. Edward Ybarra was sentenced to 15 ½ years in federal prison on March 3, 2023. Ramon Morales-Padilla will be sentenced on July 21, 2023.
This case was investigated by the Unified Narcotics Enforcement Team (UNET), which is comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, South Dakota Highway Patrol, and the South Dakota National Guard. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
A presentence investigation was ordered and sentencing dates are pending. The defendants were remanded to the custody of the U.S. Marshals Service.
Physician Sentenced for Stealing Approximately $250K from COVID-19 Relief ProgramsRead the Press Release
A Colorado physician was sentenced today to two and a half years in prison for fraudulently obtaining and misappropriating approximately $250,000 from two separate COVID-19 relief programs.
According to court documents, Dr. Francis F. Joseph, 58, of Highlands Ranch, was the supervisory physician at Springs Medical Associates, a medical clinic with three offices in Colorado. From March through June 2020, Joseph applied for and received government funds for COVID-19 relief from the Accelerated and Advance Payment Program and the Paycheck Protection Program. Both programs were designed to provide emergency financial assistance to medical providers and small businesses who were suffering economic effects from the COVID-19 pandemic. In total, Joseph received approximately $250,000 from these programs and used the money to pay for his personal expenses.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Special Agent in Charge Curt Muller of the Department of Health and Human Services Office of Inspector General (HHS-OIG), Kansas City Region; and Special Agent in Charge Weston King of the U.S. Small Business Administration Office of Inspector General (SBA-OIG), Western Region made the announcement.
The HHS-OIG and SBA-OIG investigated the case.
Trial Attorneys Jennifer Bilinkas and John J. Liolos of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Criminal Division’s efforts to combat fraud related to the COVID-19 pandemic, particularly with respect to the resources made available by Congress through the Coronavirus Aid, Relief, and Economic Security (CARES) Act for programs including the Paycheck Protection Program, the Economic Injury Disaster Loan program, and the Provider Relief Fund. Since the CARES Act passed, Fraud Section attorneys have prosecuted more than 210 defendants in more than 140 criminal cases related to CARES Act programs and funds. The Fraud Section has also seized more than $80 million in cash proceeds derived from CARES Act-related fraud schemes, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at www.justice.gov/criminal-fraud/cares-act-fraud.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
Oklahoma City Man Pleads Guilty to Attempted Coercion and Enticement of a MinorRead the Press Release
OKLAHOMA CITY — Today, STEVEN NEEL HARRY, 61, of Oklahoma City pleaded guilty to attempted coercion and enticement of a minor to engage in sexual activity, announced United States Attorney Robert J. Troester.
According to an affidavit filed in support of the criminal complaint, Harry started communicating with an undercover law enforcement officer in September 2022. During those conversations, Harry discussed meeting an individual at a hotel in Oklahoma City to engage in sexual activity with a person whom Harry believed was a 12-year-old girl. FBI agents arrested Harry on March 22, 2023, after he arrived at the metro hotel.
On April 18, 2023, a federal grand jury returned a two-count indictment against Harry. Count 1 charged him with attempted coercion and enticement of a minor, and Count 2 charged him with commission of a felony sex offense by an individual required to register as a sex offender.
This afternoon, Harry pleaded guilty to Count 1 of the indictment before Judge Charles B. Goodwin. A sentencing hearing will be scheduled in approximately 90 days. At sentencing, Harry faces not less than 10 years and up to life in federal prison, a fine of $250,000, and a special assessment of $55,100. Harry would also be required to serve a term of supervised release of at least five years and up to life. He has been in federal custody since his arrest on March 22, 2023.
This case is the result of an investigation by the FBI Oklahoma City Field Office. Assistant U.S. Attorneys Allison B. Christian and Brandon Hale are prosecuting the case.
This case is part of Project Safe Childhood (PSC), a nationwide initiative by the Department of Justice (DOJ) to combat child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the DOJ Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about PSC, please visit www.justice.gov/psc.
Reference is made to public records for more information.
Odessa Man Sentenced to over 21 Years in Prison for Meth Trafficking and Firearm ChargesRead the Press Release
MIDLAND, Texas – An Odessa man was sentenced today to 235 months in prison for meth trafficking and firearm charges.
According to court documents, Odessa Police Department detectives surveilled Brandon Mendoza, 35, on Nov. 30, 2022, as he conducted multiple narcotics transactions. Detectives performed a traffic stop on Mendoza and recovered both methamphetamine and a semi-automatic firearm from Mendoza’s truck. Detectives later searched Mendoza’s apartment where they recovered additional methamphetamine, multiple baggies, and scales. In total, detectives recovered four firearms.
Mendoza was on federal supervised release for a 2021 firearm charge when he was arrested by the Odessa Police Department in November 2022. As a result, Mendoza was also sentenced consecutively to 24 months for violating his supervised release. In total, Mendoza will serve over 21 years in federal prison.
“This defendant demonstrated an inability to comply with the terms of his federal supervised release and continued selling methamphetamine,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “The substantial sentence ordered in this case is reflective of the dangers drug traffickers pose to innocent members of the community, especially when firearms are involved. I appreciate the efforts of our local law enforcement partners, helping us bring yet another trafficker to justice.”
The Odessa Police Department investigated the case.
Assistant U.S. Attorney Joe Mahoney prosecuted the case.
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O.C. Man Charged in Alleged $1.8M Investment Fraud SchemeRead the Press Release
SANTA ANA, California – An Orange County-based businessman who portrayed himself as a wealthy and successful entrepreneur – sometimes bragging that he was one of the richest men in Africa – was arrested this morning on federal charges alleging he solicited investments under false pretenses and used the investors’ money to support his own high-end lifestyle.
Amadou Kane Diallo, 44, a Senegalese national living in Laguna Niguel, was arrested at his residence this morning by FBI special agents. Diallo is expected to be arraigned on a 21-count indictment this afternoon in United States District Court in Santa Ana.
The federal grand jury indictment unsealed today alleges that Diallo fraudulently obtained more than $1.8 million from at least 11 victims who thought their investments would allow them to reap the benefits of Diallo’s supposed business successes while facing little to no risk.
Diallo was the CEO of two Newport Beach-based companies – Virtual Advisors LLC and Liquide, Inc. – which he allegedly used to solicit investments in purported business opportunities related to various sectors and topics, including technology, healthcare, real estate, home ownership and service to the African diaspora. Diallo made various representations to victims, including falsely telling some potential investors that he had previously raised hundreds of millions of dollars for another investment firm and its real estate investment fund – a claim that simply was not true, according to the indictment.
Contrary to his representations to victims, Diallo allegedly used most of the investment funds for his own extravagant lifestyle, which included making rent payments on his residence, purchasing or making payments on luxury vehicles, buying clothes and fancy dinners, and hosting lavish events for foreign government officials.
In conjunction with Diallo’s arrest, authorities seized a number of items related to allegedly fraudulent conduct, including three late model luxury vehicles – a Ferrari SF90 Stradale, a Rolls-Royce Phantom and a Range Rover – a Harry Winston ring worth approximately $12,500, and a brokerage account containing about $500,000 worth of stocks.
The indictment charges Diallo with 19 counts of wire fraud and two counts of money laundering. If convicted, he faces a maximum penalty of 20 years in federal prison on each of the wire fraud counts and a maximum penalty of 10 years in prison on each of the money laundering counts.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI is conducting the ongoing investigation in this matter.
Special Assistant United States Attorney Ryan G. Adams of the Santa Ana Branch Office and Justice Department Trial Attorney William E. Schurmann of the Criminal Division’s Fraud Section are prosecuting this case. Assistant United States Attorney Tara Vavere of the Asset Forfeiture and Recovery Section is handling today’s seizures.
If you believe you are a victim in this case or other conduct by Mr. Diallo, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at [email protected].
New Bern Getaway Driver in Armed Robbery Sentenced to Ten Years in Federal PrisonRead the Press Release
RALEIGH, N.C. – Justin Pickens, 31, of New Bern was sentenced today to 120 months in prison for charges related to an armed robbery in New Bern, North Carolina.
According to court records and evidence presented in court, Justin Pickens and two of his co-defendants, Quamaime Donnell Smith and Francesco Greco, Jr., planned and executed an armed robbery of the Five Points gas station in New Bern on May 17, 2021. The robbery was captured on the video surveillance footage from inside the store. The footage shows two male suspects enter the store, one armed with a handgun and the other armed with a tire iron. The robber with the gun, Smith, could been seen striking the store clerk in the head with his gun. The two robbers then emptied the cash register and fled the store in a getaway vehicle driven by Pickens. In total, the three stole roughly $3,000 in cash from the store. New Bern Police located and arrested all three suspects within 24 hours of the robbery and recovered the firearm used during the robbery.
“Brutal armed robberies like this one leave victims traumatized for years, and sometimes with lifelong physical limitations. This gas station attendant was not just held-up, he was pistol-whipped in the head. Hardworking people should never be subjected to violence just for doing their jobs,” said U.S. Attorney Michael Easley. “The FBI and New Bern Police worked hard to get justice for this victim. And, for his role in a violent crime that netted roughly $3,000, this defendant and his co-conspirators are now spending time behind bars.”
“The New Bern Police Department serves and protects the citizens and businesses within the City,” said New Bern Police Chief Patrick Gallagher. “Our daily goal is to create and maintain a peaceful place to live, work, and visit. These perpetrators committed a heinous act of assaulting the clerk and robbery of the business. Members of the agency worked together tirelessly, using various investigative techniques and methods, to bring about the best possible outcome for the victim, as well as those within the community. Let this outcome serve as notice to criminals that the New Bern Police Department will bring the full weight of the justice system on individuals who threaten the balance of peace within our community.”
Pickens, the getaway driver, was named in a one count indictment on July 21, 2022, charging him with interference with commerce by robbery and aiding and abetting. He pleaded guilty on February 23, 2023. Greco was sentenced to 40 months on April 21, 2022, and Smith was sentenced to 144 months on May 25, 2022.
Michael F. Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The New Bern Police Department and the Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney Leonard Champaign prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:22-CR-00038-BO.
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