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10 July 2023
Convicted Murderer Who Ran $1.5 Million COVID Jobless Benefits Fraud from Behind Bars Sentenced to 7 Years in Federal PrisonRead the Press Release
LOS ANGELES – A woman serving a life sentence in state prison for murder was sentenced today in federal court to 84 months in federal prison for leading a ring that fraudulently obtained more than $1.5 million in California unemployment insurance (UI) benefits – mostly pandemic-related relief – by using other people’s identities, some of which belonged to her fellow California prison inmates.
Natalie Le Demola, 38, who was incarcerated at the California Institution for Women in Corona at the time of the offense, was sentenced by United States District Judge John F. Walter, who also ordered her to pay $933,181 in restitution. Demola is serving a life sentence after being convicted in 2005 of the first-degree murder of her mother.
Judge Walter ordered Demola to serve her federal prison sentence consecutive to her state prison sentence. She will be eligible for parole from state prison in July 2026.
Demola pleaded guilty on March 7 to one count of conspiracy to commit bank fraud and wire fraud, three counts of bank fraud, and one count of aggravated identity theft.
From June 2020 until April 2021, Demola and other co-conspirators acquired the personal identifiable information (PII), such as the names, dates of birth, and Social Security numbers, of individuals – including identity theft victims – who were not eligible for UI benefits, including pandemic benefits, because they were employed, retired, or incarcerated.
Members of the conspiracy then used the information to make fraudulent online applications for UI benefits from the California Employment Development Department (EDD). Once the applications were approved, members of the conspiracy received EDD-funded debit cards that allowed them to withdraw money from ATMs across Southern California.
The total loss incurred by this conspiracy was $1,546,933.
“[Demola] led and organized a scheme in which she and her coconspirators pocketed hundreds of thousands of dollars allocated for residents of California who were unemployed on account of the COVID19 pandemic,” prosecutors argued in a sentencing memorandum. “[Demola] made a cost-benefit analysis and decided that the money and influence, including among fellow inmates, that she stood to gain was worth the additional penalties she faced if she were caught.”
Prosecutors secured a total of 13 guilty pleas in this case.
The investigation into this scheme was conducted by the Los Angeles El Camino Real Financial Crimes Task Force, a multi-agency task force led by Homeland Security Investigations that includes federal and state investigators who are focused on financial crimes in Southern California. The California Employment Development Department, the California Department of Corrections and Rehabilitation, the United States Department of Labor Office of Inspector General, the Inglewood Police Department, and the United States Marshals Service participated in this investigation.
Assistant United States Attorneys Nisha Chandran of the Cyber and Intellectual Property Crimes Section and David C. Lachman of the Terrorism and Export Crimes Section prosecuted this case.
Co-Director of Think Tank Indicted for Acting as Unregistered Foreign Agent, Trafficking in Arms, Violating U.S. Sanctions Against Iran, and Making False Statements to Federal AgentsRead the Press Release
A dual U.S.-Israeli citizen who serves as the co-director of a Maryland-based think tank was indicted today for allegedly engaging in multiple international criminal schemes.
According to court documents, Gal Luft, 57, is charged in an eight-count indictment with offenses related to willfully failing to register under the Foreign Agents Registration Act (FARA), arms trafficking, Iranian sanctions violations and making false statements to federal agents. Luft was arrested on Feb. 17 in the Republic of Cyprus based on the charges in the indictment. Luft subsequently fled after being released on bail while extradition proceedings were pending and remains a fugitive.
According to the allegations contained in the indictment, for years, Luft conspired with others in an effort to act within the United States to advance the interests of the People’s Republic of China (China) as agents of China-based principals, without registering as foreign agents as required under U.S. law. As part of this scheme, while serving as the co-director of a Maryland-based nonprofit think tank, Luft agreed to covertly recruit and pay, on behalf of principals based in China, a former high-ranking U.S. government official (Individual-1), including in 2016 while the former official was an adviser to the then-President-elect, to publicly support certain policies with respect to China without Luft or Individual-1 filing a registration statement as an agent of a foreign principal with the Attorney General of the United States, in violation of FARA.
Among other things, in the weeks before the 2016 U.S. presidential election, Luft and a co-conspirator (CC-1), who is a Chinese national and worked for a Chinese nongovernmental organization affiliated with a Chinese energy company, created a written “dialogue” between CC-1 and Individual-1, in which Luft wrote Individual-1’s responses and included information that was favorable to China. The dialogue was then published in a Chinese newspaper online and sent to, among others, individuals in the United States, including a journalist and professors at multiple U.S. universities. When Luft was writing the dialogue, CC-1 told Luft that “[i]n these articles, we do not want to spill all the beans yet, just enough to let ‘people’ know he [i.e., Individual-1] is in the corridor of power to be. Just broad stroke policy consideration that leaves plenty of room for interpretation and imagination to be filled in later.” After the purported “conversations” were published, Luft told CC-1 that certain information, favorable to China, had been “tucked between the lines.” Shortly after the 2016 election, Luft and CC-1 also discussed possible roles Individual-1 might have in the incoming U.S. administration, and discussed Individual-1 taking a “silent trip” to China. Luft responded that “[w]e are debating about his role in the new admin. There are all kinds of considerations . . .We should talk ftf [i.e., face-to-face] as there can be a supremely unique opportunity for china.”
Second, Luft conspired with others and attempted to broker illicit arms transactions with, among others, certain Chinese individuals and entities. In his role as a broker or middleman, Luft worked to find both buyers and sellers of certain weapons and other materials, without a license to do so as required under U.S. law, in violation of the Arms Export Control Act. Among other things, Luft worked to broker a deal for Chinese companies to sell certain weapons to Libya, including anti-tank launchers, grenade launchers and mortar rounds (which Luft and his associates referred to in coded language as “toys”). Luft also worked to broker deals for certain weapons to be sold to the United Arab Emirates, including arial bombs and rockets. Luft further worked to broker deals for certain weapons to be sold by a Chinese company to Kenya, including unmanned aerial vehicles (UAVs) – and specifically “strike” UAVs, which Luft acknowledged “[t]he US doesn’t want to sell[, . . .] hence the opportunity.” Luft also discussed brokering a deal for weapons to Qatar, and told CC-1 that Israel was “not a good fit” as the middleman for the deal because it had the “[s]ame problem the [] Q [i.e., Qataris] have w uncle [i.e., the United States]. Need a third party. . . . I will activate.” In his role as a broker for illicit arms deals, Luft worked on a commission basis, and traveled to meetings and received and passed on documentation needed to secure the deals. During a voluntary interview with U.S. law enforcement in which he was asked questions about his involvement in arms trafficking, Luft made multiple false statements, including that he had just been checking prices for a friend and had not sought to engage in or profit from arms deals.
Third, Luft conspired with others and attempted to broker deals for Iranian oil – which he directed an associate to refer to as “Brazilian” oil in an effort to conceal the activity and evade sanctions – in violation of U.S. sanctions against Iran and the International Emergency Economic Powers Act (IEEPA). In his role as a broker or middleman, Luft solicited buyers and passed on pricing and other information. One offer letter for Iranian oil that Luft received noted that the “origin” of the oil was “Iranian / It can be presented as UAE origin without Iranian papers.” He also assisted in setting up meetings between Iranian representatives and a Chinese energy company for the purpose of discussing oil deals. During a voluntary interview with U.S. law enforcement in which he was asked about his role brokering deals in Iranian oil, Luft made multiple false statements, including that he had tried to prevent oil deals with Iran and had not been present during meetings with the Chinese energy company and Iranians.
Luft is charged with the following offenses, which carry the maximum prison terms listed below. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Count
Charge
Maximum Prison Term
One
Conspiracy to violate the Foreign Agents Registration Act
Five years
Two
Conspiracy to violate the Arms Export Control Act
Five years
Three
Violation of the Arms Export Control Act (relating to Libya)
20 years
Four
Violation of the Arms Export Control Act (relating to the United Arab Emirates)
20 years
Five
Violation of the Arms Export Control Act (relating to Kenya)
20 years
Six
Making false statements
Five years
Seven
Conspiracy to violate the International Emergency Economic Powers Act
20 years
Eight
Making false statements
Five years
The FBI New York Field Office and FBI’s Counterintelligence Division are investigating the case, with valuable assistance provided by the IRS-Criminal Investigation (IRS-CI) and the Justice Department’s Office of International Affairs.
Assistant U.S. Attorneys Daniel C. Richenthal and Catherine Ghosh for the Southern District of New York and Trial Attorney Scott Claffee of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
If you have any information about Luft’s whereabouts, please contact your local FBI office or the nearest American Embassy or Consulate. Tips can be reported anonymously and can also be reported online at tips.fbi.gov.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Chicago Street Gang Leaders Convicted on Federal Racketeering ChargesRead the Press Release
CHICAGO — A federal jury has convicted three leaders of a Chicago street gang on federal racketeering charges for participating in a criminal organization that murdered rivals and violently protected its perceived territory on the city’s South Side.
Convicted of racketeering conspiracy were ROMEO BLACKMAN, 27, TERRANCE SMITH, 27, and JOLICIOUS TURMAN, 31, all of Chicago. Blackman and Smith were also convicted of multiple counts of violence in aid of racketeering. The jury returned its verdicts Wednesday after a seven-week trial in U.S. District Court in Chicago. Blackman and Smith each face mandatory sentences of life in federal prison, while Turman faces a maximum sentence of 20 years. U.S. District Judge John Robert Blakey has not yet set sentencing dates.
A fourth defendant, NATHANIEL MCELROY, of Chicago, pleaded guilty to a racketeering conspiracy charge prior to trial. McElroy is awaiting sentencing.
The defendants were indicted in 2018 after a joint federal and state investigation of a Chicago street gang faction known as the Goonie Boss/Goonie Gang. The defendants and other Goonie members stole firearms to arm themselves, violently prevented witnesses from cooperating with law enforcement, and publicly boasted about gang activities on social media. The jury found that members of the gang were liable for six murders while terrorizing the Englewood neighborhood on Chicago’s South Side, specifically:
- Blackman and Smith were liable for the murder of Stanley Bobo, 18, on Oct. 23, 2014, in the 1400 block of West 72nd Street.
- Blackman and Smith were liable for the murder of Krystal Jackson, 25, on Nov. 19, 2014, in the 6800 block of South Loomis Boulevard.
- Blackman was liable for the murder of Andre Donner, 26, on Dec. 13, 2015, in the 7200 block of South May Street.
- Blackman was liable for the murder of Davon Horace, 19, on Jan. 25, 2016, in the 7200 block of South May Street.
- Blackman was liable for the murder of Gerald Sias, 38, on May 26, 2016, inside a barber shop in the 1100 block of West 63rd Street.
- Turman was liable for the murder of Kenneth Whittaker, 34, on July 1, 2016, near an elementary school in the 7400 block of South Morgan Street.
The jury also found that Smith was liable for two attempted murders.
The convictions were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, and Fred Waller, Interim Superintendent of the Chicago Police Department. The government was represented by Assistant U.S. Attorneys Albert Berry III, Maureen McCurry, and Paige Nutini.
“Combating violent street gangs is a top priority in our office,” said Acting U.S. Attorney Pasqual. “We will use all lawful tools and resources at our disposal to dismantle those street gangs and disrupt the cycle of violence in Chicago and the surrounding areas.”
"Every Chicagoan deserves a safe place to live, and these convictions make it clear that serious crimes lead to serious consequences,” said FBI SAC Wheeler.
The investigation of the Goonie gang spanned several years and resulted in other charges against Blackman, McElroy, and numerous other alleged Goonie members or associates for various offenses, including:
- Blackman was charged along with RASHAD ANCHANDO, of Chicago, and KEITH GULLENS, of Streator, Ill., with stealing firearms from a licensed dealer in a smash-and-grab burglary. Anchando pleaded guilty and was sentenced to five years in federal prison, while Gullens pleaded guilty and was sentenced to four and a half years. Blackman pleaded not guilty and is awaiting trial.
- McElroy and four others were indicted on federal firearms violations for scheming to “straw purchase” handguns in Michigan and re-sell them in Chicago. All five defendants pleaded guilty. One defendant is awaiting sentence, while the four others were sentenced to federal prison terms ranging from 16 months to seven years.
- CHRISTIAN SIVELS, of Chicago, is charged in state court with first-degree murder in the killing of David Easley on May 21, 2016. Easley, 26, was shot and killed while walking in the 7000 block of South Carpenter Street in Chicago. Sivels pleaded not guilty and is awaiting trial in Cook County Criminal Court.
- TREVANTE REED, of Chicago, is charged in state court with first-degree murder in the killing of Gerald Sias on May 26, 2016. Sias was shot and killed while waiting inside a barbershop in the 1100 block of West 63rd Street in Chicago. Reed pleaded not guilty and is awaiting trial in Cook County Criminal Court.
- JAVION BUSH, of Chicago, pleaded guilty to being an accessory to the carjacking of an off-duty police officer on Oct. 18, 2018. Bush was sentenced to 15 months in prison. Upon his release from prison, Bush was charged with, and subsequently pleaded guilty to obstruction of justice by retaliating against a witness. Bush is currently awaiting sentencing in the obstruction case.
- Convicted felon JAVONTE N. STOKES, of Chicago, pleaded guilty in federal court to a charge of illegal firearm possession. Stokes was sentenced to six months in prison.
Cheyenne Man Sentenced to 140 Months for Drug and Firearm OffensesRead the Press Release
Grady Lynn Peoples, age 50, of Cheyenne, Wyoming, was sentenced on July 6, 2023, to 140 months in prison for possession with intent to distribute methamphetamine and fentanyl, and being an unlawful user of a controlled substance in possession of a firearm. Chief U.S. District Court Judge Scott W. Skavdahl imposed the sentence, which also includes four years of supervised release, community restitution in the amount of $300, and a $200 special assessment.
According to court records, in July of 2022, law enforcement saw Peoples traveling to multiple locations where drug activity was known, and saw individuals known to be involved in drug activity coming and going from Peoples’ residence. The Cheyenne DEA Task Force and the Laramie County Sheriff’s Office served a search warrant for Peoples’ residence in Cheyenne. During the search, agents and detectives found and seized approximately 710 grams of methamphetamine, 132.5 grams of fentanyl pills, a Smith and Wesson 9mm handgun, and $8,000 in cash. When interviewed, Peoples admitted that the drugs, gun, and cash found in his residence belonged to him.
This crime was investigated by the Cheyenne DEA Task Force, Laramie County Sheriff’s Office, and the Wyoming Division of Criminal Investigation. The case was prosecuted by Assistant United States Attorney T.J. Forwood.
Case No. 22-cr-00107-SWS
Carter County Resident Pleads Guilty to Multiple Counts of Distributing MethamphetamineRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Justin Earl Wilson, age 37, of Ardmore, Oklahoma, pleaded guilty plea to five counts of Distribution of Methamphetamine.
The Indictment alleged that in late 2021 and early 2022 Wilson distributed methamphetamine on five separate occasions from two houses located in Ardmore, Oklahoma.
The charges arose from an investigation by the Carter County Sheriff’s Office, the Oklahoma Bureau of Narcotics, and the Drug Enforcement Administration.
The Honorable Gerald L. Jackson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Wilson will remain in the custody of the U.S. Marshal pending sentencing.
Assistant United States Attorney Richard Lorenz represented the United States.
Cape Coral Man Sentenced to 14 Years in Prison for Attempting to Entice A Minor to Engage in Sexual ActivityRead the Press Release
Tampa, Florida – U.S. District Judge Virginia Covington has sentenced William Douglas Collinsworth (54, Cape Coral) to 14 years in federal prison for attempted enticement of a minor to engage in sexual activity. The court also ordered Collinsworth to serve a lifetime of supervised release, register as a sex offender, and forfeit his cellphone which was used in the commission of the offense. Collinsworth had pleaded guilty on March 8, 2023.
According to court documents, Collinsworth spoke with an undercover agent believing he was going to meet a purported 10-year-old to engage in sexual activity. Collinsworth engaged the undercover agent in conversation for approximately two months, discussing various sex acts, before traveling to meet the purported minor, where he was arrested by agents. Collinsworth came prepared to engage in sex acts with the purported 10-year-old, bringing a unicorn backpack, penis pump, lubrication, and condoms.
This case was investigated by the FBI, the Tampa Police Department, and the Pasco Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Ilyssa Spergel.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Boston Man Sentenced to Prison for Illegally Transporting FirearmsRead the Press Release
BOSTON – A Boston man was sentenced today in federal court in Boston for illegally transporting firearms from Alabama into Massachusetts.
Jarmori Brown, 21, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to 18 months in prison and three years of supervised release. In March 2023, Brown pleaded guilty to one count of illegal transportation or receipt in state of residency of firearm purchased or acquired outside of state of residency, and one count of conspiracy to illegally transport firearms.
In July 2022, Brown was charged along with co-defendants Brandon Moore, Jahquel Pringle and Kobe Smith. Brown has been in state custody on unrelated state charges since being charged federally. Pringle and Smith are currently in federal custody pending their trials. Moore’s case was transferred to his home district of the Middle District of Alabama, where he has since pleaded guilty.
Brown, and allegedly Pringle, Smith and Moore, conspired to obtain at least 24 firearms from Alabama, where Moore lived, and then transport them to Boston. In August 2020, Brown traveled from Boston to Alabama on a commercial bus to pick up the firearms, allegedly from Moore, and then transported the firearms, concealed within luggage, back to Boston on the commercial bus. According to court documents, at least seven firearms obtained in this manner have been recovered by law enforcement from the streets of Boston and surrounding communities.
Acting United States Attorney Joshua S. Levy and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division made the announcement today. Assistant U.S. Attorney Elianna J. Nuzum of Levy’s Major Crimes Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
8 July 2023
2 Central Ohio men arrested in robbery incident that resulted in shooting of Columbus police officerRead the Press Release
COLUMBUS, Ohio – Two Central Ohio men have been arrested and charged federally for their alleged roles in robberies that resulted in the July 6 shooting of a Columbus police officer.
Aden Abdullahi Jama, 20, of Reynoldsburg, was arrested this afternoon at Chicago O’Hare International Airport by United States Marshals and HSI agents. Jama had purchased a flight leaving at 12:35pm for the country of Turkey.
Fazsal M. Darod, 23, of Columbus, was arrested in the early morning hours of July 7 outside his residence in Columbus by the United States Marshals’ Southern Ohio Fugitive Apprehension Strike Team.
Both men are charged with aiding and abetting a bank robbery and aiding and abetting the use of a firearm during a crime of violence.
According to affidavits filed in support of criminal complaints, on July 6 at approximately 2:13pm, Jama, Darod and a third suspect allegedly stole a black Porsche SUV from Byer Imports Car Lot on North Hamilton Road in Columbus.
The defendants then allegedly participated in a robbery at approximately 4pm at the Fifth Third Bank on Hilliard Rome Road in Hilliard. An armed suspect stole thousands of dollars before fleeing in a black Porsche SUV.
A few minutes later, Columbus police officers encountered the stolen vehicle and suspects on Interstate 70 East near West Mound Street. During the encounter, a Columbus police officer was struck by gunfire and seriously wounded. One of the suspects was also shot and died at the scene.
Jama and Darod allegedly fled from the scene on foot and avoided immediate apprehension.
Officers recovered two firearms from the scene: a Glock handgun with an extended magazine and a semiautomatic handgun.
Aiding and abetting a bank robbery is a federal crime punishable by up to 20 years in prison. Aiding and abetting the use of a firearm during a crime of violence carries a potential penalty of at least five years and up to life in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; Columbus Police Chief Elaine Bryant; the United States Marshals in Columbus and Chicago; ICE and HSI Chicago; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; the Whitehall, Minerva Parka and Upper Arlington police departments; and Franklin County Sheriff Dallas Baldwin announced the charges. Assistant United States Attorney Noah R. Litton is representing the United States in this case.
A criminal complaint merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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7 July 2023
Woman who laundered more than $1 million in drug proceeds for Mexican cartel sentenced to 3+ years in prisonRead the Press Release
Seattle – A 36- year-old resident of Mexico was sentenced today in U.S. District Court in Seattle to 44 months in prison for her role in laundering millions of dollars in drug proceeds for drug traffickers, announced Acting U.S. Attorney Tessa M. Gorman. In March 2023, Sonia L. Mezquita Vega pleaded guilty to conspiracy to commit money laundering and a dozen counts of specific substantive counts of money laundering. At today’s sentencing hearing, U.S. District Judge Ricardo S. Martinez acknowledged that Mezquita Vega was not making the millions she was depositing, however, “The only reason the drug business survives is the money that comes with it,” Judge Martinez said.
“Drug dealing is a business that traffics in pain, sorrow, and heartbreak for the families who watch their loved one succumb to addiction,” said Acting U.S. Attorney Gorman. “Those who transmit the illegal drug proceeds to the drug cartels are a critical cog keeping the poisons of fentanyl, meth, heroin, and cocaine flowing to our communities. Such conduct deserves a significant sanction.”
Mezquita Vega was one of seventeen defendants indicted in August 2020 for a money laundering scheme that sent as much as $2.6 million to a drug trafficking organization in Mexico. Mezquita Vega has been in custody since she was arrested in the Tucson, Arizona area on February 3, 2022.
According to records filed in the case, Mezquita Vega initially worked as a “funnel account holder,” someone who opened a bank account where drug proceeds could be deposited and later transferred to or withdrawn by the drug traffickers. Later, Mezquita Vega became a “money mule,” traveling the country and picking up drug proceeds to deposit into her funnel account or others. Finally, Mezquita Vega supervised others in the money laundering scheme, traveling with them to collect drug proceeds and directing how the funds should be deposited.
During seven months in 2014, $352,030 was deposited in the funnel account opened by Mezquita Vega. At the same time, an additional $236,540 was funneled through an account apparently opened by Mezquita Vega’s mother. Between October 2014 and April 2016, Mezquita Vega became a money mule/depositor and was responsible for depositing $830,906 in drug proceeds.
In asking for the five-year sentence, Assistant United States Attorney Vince Lombardi wrote to the court, “Drug dealing is a business. If people could not make money – often lots of money – they would not sell drugs. Money is the vitally necessary fuel for the drug epidemic. And money laundering, of the type perpetrated by (this organization), is the pipeline that fuel flows through.”
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF .
The case was investigated by Homeland Security Investigation and the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorney Vincent T. Lombardi.
Waldorf Man Sentenced to over Three Years in Federal Prison for Impersonating a Deputy U.S. Marshal and for Being a Felon in Possession of a FirearmRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang today sentenced Antione William Tuckson, age 38, of Waldorf, Maryland, to 37 months in federal prison, followed by three years of supervised release, for false impersonation of an officer and employee of the United States and for being a felon in possession of a firearm.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; U.S. Marshal Johnny Hughes; Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service - Washington Division; and Chief Malik Aziz of the Prince George’s County Police Department.
As detailed in the plea agreement, beginning in at least December 2018, Tuckson undertook a scheme to impersonate a Deputy United States Marshal (“DUSM”). On December 27, 2018, Tuckson used a vehicle with emergency lights to interfere in a robbery in Charles County, Maryland, identifying himself to investigators from the Charles County Sheriff’s Office as a United States Marshal during the incident. In December 2020, Tuckson registered the trademark “USMS Special Services,” with the State of Maryland and registered multiple vehicles in that name, using forged Maryland Motor Vehicle Administration records to make it appear that the vehicles were registered as emergency vehicles in Maryland. The vehicles were equipped with red and blue flashing lights as if they were law enforcement vehicles.
According to the plea agreement, in early 2022, Tuckson impersonated a DUSM to secure employment as an armed security guard at a restaurant in District Heights, Maryland. Tuckson identified himself as a United States Marshal to the part-owner of the restaurant to get the job. On March 6, 2022, Tuckson showed up for work at the restaurant wearing a vest marked “POLICE,” a tactical belt with a 9mm semi-automatic pistol and multiple ammunition clips, and brought a dog which was also outfitted in police K-9-style gear. Tuckson also possessed a fake Department of Justice (“DOJ”) identification card, a United States Marshals Service (“USMS”) law enforcement badge, handcuffs, and a taser.
That evening, two women at the restaurant got into a dispute over their bill and Tuckson intervened, identifying himself to the patrons as a United States Marshal. Tuckson followed the women after they ran from the restaurant. Tuckson then falsely held himself out as a DUSM to Prince George’s County Police Department (“PGPD”) officers whom he encountered at a park while pursuing the two women. After returning to the restaurant Tuckson encountered additional PGPD officers who had reported to the scene. When questioned by the officers, Tuckson continued to identify himself as a DUSM and displayed his fake badge. Tuckson told the officers that the USMS could verify his employment and officers asked him to put them in touch with a supervisor that would confirm his employment. Tuckson called an individual who claimed to be a supervisor of Tuckson at a security company and then called a co-conspirator, who also claimed to be a DUSM and Tuckson’s supervisor. Both falsely told officers that Tuckson was a DUSM.
After further investigation revealed that Tuckson was not a DUSM, he was arrested and officers recovered the 9mm semi-automatic pistol that was loaded with 11 rounds of ammunition. Tuckson knew that he had a previous felony conviction and was prohibited from possessing a firearm or ammunition.
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.
United States Attorney Erek L. Barron commended the U.S. Marshals Service, the U.S. Postal Inspection Service, and the Prince George’s County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Timothy F. Hagan, and Special Assistant U.S. Attorney Peter L. Cooch, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach.
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Wagner Man Sentenced for Abusive Sexual ContactRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Wagner, South Dakota, man convicted of Abusive Sexual Contact. The sentencing took place on July 6, 2023.
Zander Zephier, age 22, was sentenced to 21 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Zephier was indicted by a federal grand jury in May of 2022. He pleaded guilty on April 26, 2023.
The conviction stemmed from an incident on January 1, 2021, when Zephier knowingly engaged in, and attempted to engage in, sexual contact with a child who had not attained the age of 16. Zephier will also need to register as a sex offender.
This case was investigated by the Yankton Sioux Tribal Law Enforcement and the FBI. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Zephier was immediately remanded to the custody of the U.S. Marshals Service.
U.S. Attorney Totten Announces Federal Charges in the Kidnapping of 2-Year-Old Wynter Cole-SmithRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Rashad Maleek Trice, 26, has been charged by criminal complaint with Kidnapping a Minor and Kidnapping Resulting in Death. These allegations relate to the kidnapping and death of 2-year-old Wynter Cole-Smith. If convicted of the Kidnapping Resulting in Death charge, the statutory mandatory minimum is life in prison. This offense is also death penalty eligible. If convicted of Kidnapping a Minor, the statutory mandatory minimum is 20 years in prison with a maximum possible sentence of life in prison.
“The allegations in this case are heart-wrenching,” said U.S. Attorney for the Western District of Michigan Mark Totten. "My thoughts are very much with Wynter’s family, as we were all praying for her safe return home. I would like to thank the Federal Bureau of Investigation, Lansing Police Department, Michigan State Police, and the countless law enforcement agencies who worked relentlessly to find Wynter. I would also like to thank U.S. Attorney Dawn Ison of the Eastern District of Michigan and her office for all their hard work in this investigation. The media and the public played a critical role in sharing accurate information and submitting tips as well. I commend everyone in law enforcement and the community for working together to pursue justice in this case.”
As alleged in the attached complaint, on July 2, 2023, a woman reported to the Lansing Police Department that she had been attacked by Trice and ultimately fled her apartment to escape him. When police responded to her apartment, Trice and the woman’s daughter, Cole-Smith, were no longer present. A white Chevrolet Impala had also allegedly been stolen. On July 3, police attempted to stop the white Chevrolet Impala in St. Clair Shores and the driver attempted to flee. Police apprehended the driver, Trice, but Cole-Smith was not in the car. Cell site information showed the approximate path Trice’s phone had recently taken, which prompted law enforcement to start conducting searches for Cole-Smith in specific areas. On July 5, 2023, law enforcement found Cole-Smith’s body in Detroit.
“Please continue to keep Wynter Cole-Smith’s family in your thoughts in the days and weeks to come,” said Devin Kowalski, Acting Special Agent in Charge of the FBI’s Detroit Field Office. “I am proud of our brave FBI agents, analysts, and professional staff who answered the call to render aid to Wynter and her family. I would like to extend appreciation to them, along with Lansing Police Department Chief Ellery Sosebee and his entire department, and our vast network of law enforcement partners across the state and country who have been working relentlessly around-the-clock over the past week.”
“It is so difficult to imagine the final moments of little Wynter’s life,” stated U.S. Attorney for the Eastern District of Michigan Dawn N. Ison. “I commend Assistant United States Attorney Christopher Rawsthorne of my office, FBI, Detroit Police, and all the other law enforcement partners who worked tirelessly for days to find Wynter in Detroit and return her home. My heart breaks for her family, and all of us mourn with them.”
“Our top priority is to get justice for Wynter and her family,” said Lansing Police Department Chief Ellery Sosebee. “The men and women of the Lansing Police Department applaud U.S. Attorneys Mark Totten and Dawn Ison, their teams, the FBI, and all of our law enforcement partners for their efforts to pursue justice in this case.”
This case was investigated by the FBI and Lansing Police Department, along with the U.S. Customs and Border Protection Air and Marine Operations, U.S. Customs and Border Protection, U.S. Border Patrol, U.S. Secret Service, Federal Air Marshal Service, Internal Revenue Service, U.S. Department of Labor, U.S. Attorney’s Office for the Eastern District of Michigan, Michigan State Police, Michigan State University Department of Police and Public Safety, Michigan Department of Corrections, Ingham County Sheriff’s Office, Ingham County Prosecutor’s Office, Eaton County Sheriff's Office, Oakland County Sheriff’s Office, Macomb County Sheriff's Office, Detroit Police Department, Detroit Public Schools Community District Department of Public Safety, Eastpointe Police Department, St. Clair Shores Police Department, Bloomfield Hills Police Department, Dearborn Police Department, Sterling Heights Police Department, West Bloomfield Police Department, Bloomfield Police Department, Southfield Police Department, Northville Township Police Department, and Clinton Township Police Department.
The charges in a complaint are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
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U.S. Attorney Matthew Graves Welcomed Hundreds of Youth to 13th Annual “Breaking the Silence on Youth Violence” Anti-Violence SummitRead the Press Release
WASHINGTON - U.S. Attorney Matthew Graves of the U.S. Attorney’s Office for the District of Columbia, the Metropolitan Police Department of Washington, D.C. (MPD), and numerous community-based organizations welcomed more than 200 youth at the 13th Annual “Breaking the Silence on Youth Violence” Anti-Violence Youth Summit, held on July 7 at MPD’s First District Police Station and streamed virtually.
The event focused on a variety of subjects, including gun violence prevention; drug and alcohol abuse prevention; mental health awareness; self-respect; diversity, understanding, and respect of the differences of others as a means of promoting allyship and reducing bullying and violence. A moment of silence was held to remember young victims lost by homicide in 2022. The summit comprised dynamic speakers, entertainment, information, and resources. U.S. Attorney Graves presented the United States Attorney’s Office’s Youth Citizenship Awards to seven youth participants. There was also a “Healing through Creativity” Poetry Contest, the winner of which read their poem at the summit.
Since the U.S. Attorney’s Office hosted its first Youth Summit in 2011, thousands have participated in this program. The event is a part of the Department of Justice’s Project Safe Neighborhood Program, a nationwide effort to reduce violent crime.
This year’s partners included the East of the River Family Strengthening Collaborative, the Marion Barry Summer Youth Program, the D.C. Department of Parks and Recreation, the T.R.I.G.G.E.R. Project, the D.C. Prevention Centers, the Office of Juvenile Justice and Delinquency and Prevention of the U.S. Department of Justice, and the Metropolitan Police Department.
U.S. Army Financial Counselor Charged with Defrauding Gold Star FamiliesRead the Press Release
A Monmouth County, New Jersey, financial counselor with the U.S. Army and major in the U.S. Army Reserves who allegedly defrauded two dozen Gold Star families has been indicted.
Caz Craffy, aka Carz Craffey, 41, of Colts Neck, New Jersey, is charged by indictment with six counts of wire fraud and one count each of securities fraud, making false statements in a loan application, committing acts furthering a personal financial interest, and making false statements to a federal agency. Craffy is expected to make his initial appearance today before U.S. Magistrate Judge Tonianne J. Bongiovanni at the Trenton Federal Courthouse.
“Stealing from Gold Star families whose loved ones made the ultimate sacrifice in service to our nation is a shameful crime,” said Attorney General Merrick B. Garland. “As alleged in the indictment, the defendant in this case used his position as an Army financial counselor to defraud Gold Star families, steal their money, and enrich himself. Predatory conduct that targets the families of fallen American service members will be met with the full force of the Justice Department.”
“The families of our fallen service members have laid the dearest sacrifice on the altar of freedom,” said U.S. Attorney Phillip R. Sellinger for the District of New Jersey. “These Gold Star families deserve our utmost respect and compassion, as well as some small measure of financial security from a grateful nation. They must be off-limits for fraudsters. But, as the indictment alleges, this defendant took advantage of his role as an Army financial counselor to prey upon these families, using lies and deception to steer their investments in a way that would make him money. There is no room for those who seek to rip off families of fallen servicemembers to make a buck. We will use every means at our disposal to ensure that those who defraud military families are held accountable.”
“Those who prey on the family members of fallen soldiers, will be sought out and held accountable,” said Special Agent in Charge Joel Kirch of the Department of the Army Criminal Investigation Division, Northeast Field Office. “The hard work, long hours, and dedication of our partners within the Task Force, from the U.S. Attorney’s Office, Defense Criminal Investigative Service, FBI, Homeland Security Investigations, and our own investigative analyst, resulted in this investigation’s swift resolution.”
“The families of service members who lost their lives while serving their country deserve to be treated with compassion, dignity and respect by individuals entrusted to assist them in obtaining survivor benefits,” said Principal Deputy Director James R. Ives of the Defense Criminal Investigative Service (DCIS), the law enforcement arm of the DoD Office of Inspector General. “Today’s announcement reflects DCIS and our law enforcement partners’ steadfast commitment to holding accountable those who use their official positions to take advantage of grieving military families.”
“Gold Star families are given a title no one would choose because it means they’ve paid the ultimate sacrifice for this country,” said Special in Charge James E. Dennehy of the Newark FBI. “The soldier, sailor, marine or airman they loved died during a time of conflict – defending this nation. They are given money and assistance to help ease the burden that comes with losing their loved one, however no amount of money can replace what they’ve lost. We allege Craffy took advantage of his position and defrauded families already going through a tremendous amount of suffering.”
“Craffy disgraced the position he was entrusted in to care for our nation’s military families when he allegedly took advantage of them during a vulnerable time of grief,” said Special Agent in Charge Ricky J. Patel Homeland Security Investigations Newark. “No family, especially our Gold Star families, should have to face further heartache after a loved one’s death by having their financial security ripped out from under them by fraudsters.”
According to documents filed in this case and statements made in court:
When a member of the Armed Services dies during active duty, his or her surviving beneficiary, now a member of a Gold Star family, is entitled to a $100,000 death gratuity and the soldier’s life insurance of up to $400,000. These payments are disbursed to the beneficiary in a matter of weeks or months following the servicemember’s death. To assist the beneficiaries in this time of need, the military provides a number of services to the servicemember’s family, including the assistance of a financial counselor.
From November 2017 to January 2023, Craffy was a civilian employee of the U.S. Army, working as a financial counselor with the Casualty Assistance Office. He was also a major in the U.S. Army Reserves, where he has been enlisted since 2003. Craffy was responsible for providing general financial education to the surviving beneficiaries. He was prohibited from offering any personal opinions regarding the surviving beneficiary’s benefits decisions. Craffy was not permitted to participate personally in any government matter in which he had an outside financial interest. However, without telling the Army, Craffy simultaneously maintained outside employment with two separate financial investment firms.
Craffy used his position as an Army financial counselor to identify and target Gold Star families and other military families. He encouraged the Gold Star families to invest their survivor benefits in investment accounts that he managed in his outside, private employment. Based upon Craffy’s false representations and omissions, the vast majority of the Gold Star families mistakenly believed that Craffy’s management of their money was done on behalf of and with the Army’s authorization.
From May 2018 to November 2022, Craffy obtained more than $9.9 million from Gold Star families to invest in accounts managed by Craffy in his private capacity. Once in control of this money, Craffy repeatedly executed trades, often without the family’s authorization. These unauthorized trades earned Craffy high commissions. During the timeframe of the alleged scheme, the Gold Star family accounts had lost more than $3.4 million, while Craffy personally earned more than $1.4 million in commissions, drawn from the family accounts.
The wire fraud and securities fraud charges are each punishable by a maximum of 20 years in prison. The charge of submitting a false statement on a loan application is punishable by a maximum of two years in prison. The charges of acts affecting a personal interest and false statements to a federal agent are each punishable by five years in prison. All counts but the securities fraud count are also punishable by a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest. The securities fraud count is punishable by a maximum fine of either $5 million or twice the gain or loss from the offense, whichever is greatest.
The U.S. Securities and Exchange Commission (SEC) also filed a civil complaint against Craffy today based on the same and additional conduct. Craffy has been permanently prohibited from association with any member of the Financial Industry Regulatory Authority Inc. (FINRA).
U.S. Attorney Sellinger credited special agents of the Department of the Army Criminal Investigation Division, under the direction of Special Agent in Charge Kirch; special agents of DCIS, under the direction of Principal Deputy Director Ives; special agents of the FBI, under the direction of Special Agent in Charge Dennehy; and special agents of Homeland Security Investigations Newark, under the direction of Special Agent in Charge Patel with the investigation leading to the indictment. He also expressed appreciation for the Securities and Exchange Commission, under the direction of Gurbir S. Grewal, Director, Division of Enforcement, and FINRA, under the direction of Acting Head of Enforcement Christopher J. Kelly.
The government is represented by Assistant U.S. Attorneys Martha K. Nye of the Criminal Division in Trenton, and Carolyn Silane of the Criminal Division in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Craffy IndictmentU.S. Army Financial Counselor Charged with Defrauding Gold Star FamiliesRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, financial counselor with the United States Army and major in the U.S. Army Reserves who allegedly defrauded two dozen Gold Star families has been indicted, U.S. Attorney Philip R. Sellinger announced today.
Caz Craffy, a/k/a “Carz Craffey,” 41, of Colts Neck, New Jersey, is charged by indictment with six counts of wire fraud and one count each of securities fraud, making false statements in a loan application, committing acts furthering a personal financial interest, and making false statements to a federal agency. Craffy is expected to make his initial appearance today before U.S. Magistrate Judge Tonianne J. Bongiovanni at the Trenton Federal Courthouse.
“Stealing from Gold Star families whose loved ones made the ultimate sacrifice in service to our nation is a shameful crime,” said Attorney General Merrick B. Garland. “As alleged in the indictment, the defendant in this case used his position as an Army financial counselor to defraud Gold Star families, steal their money, and enrich himself. Predatory conduct that targets the families of fallen American service members will be met with the full force of the Justice Department.”
“The families of our fallen service members have laid the dearest sacrifice on the altar of freedom,” U.S. Attorney Sellinger said. “These Gold Star families deserve our utmost respect and compassion, as well as some small measure of financial security from a grateful nation. They must be off-limits for fraudsters. But, as the indictment alleges, this defendant took advantage of his role as an Army financial counselor to prey upon these families, using lies and deception to steer their investments in a way that would make him money. There is no room for those who seek to rip off families of fallen servicemembers to make a buck. We will use every means at our disposal to ensure that those who defraud military families are held accountable.”
“Those who prey on the family members of fallen soldiers, will be sought out and held accountable,” said Special Agent in Charge Joel Kirch, Department of the Army Criminal Investigation Division, Northeast Field Office. “The hard work, long hours, and dedication of our partners within the Task Force, from the United States Attorney’s Office, Defense Criminal Investigative Service, FBI, Homeland Security Investigations, and our own investigative analyst, resulted in this investigation’s swift resolution.”
“The families of service members who lost their lives while serving their country deserve to be treated with compassion, dignity and respect by individuals entrusted to assist them in obtaining survivor benefits,” said James R. Ives, Principal Deputy Director of the Defense Criminal Investigative Service, the law enforcement arm of the DoD Office of Inspector General. “Today’s announcement reflects DCIS and our law enforcement partners’ steadfast commitment to holding accountable those who use their official positions to take advantage of grieving military families.”
"Gold Star families are given a title no one would choose because it means they’ve paid the ultimate sacrifice for this country,” said Special in Charge James E. Dennehy of the Newark FBI. The soldier, sailor, marine or airman they loved died during a time of conflict – defending this nation. They are given money and assistance to help ease the burden that comes with losing their loved one, however no amount of money can replace what they’ve lost. We allege Craffy took advantage of his position and defrauded families already going through a tremendous amount of suffering.”
“Craffy disgraced the position he was entrusted in to care for our nation’s military families when he allegedly took advantage of them during a vulnerable time of grief,” said Homeland Security Investigations Newark Special Agent in Charge Ricky J. Patel. “No family, especially our Gold Star families, should have to face further heartache after a loved one’s death by having their financial security ripped out from under them by fraudsters.”
According to documents filed in this case and statements made in court:
When a member of the Armed Services dies during active duty, his or her surviving beneficiary, now a member of a Gold Star family, is entitled to a $100,000 death gratuity and the soldier’s life insurance of up to $400,000. These payments are disbursed to the beneficiary in a matter of weeks or months following the servicemember’s death. To assist the beneficiaries in this time of need, the military provides a number of services to the servicemember’s family, including the assistance of a financial counselor.
From November 2017 to January 2023, Craffy was a civilian employee of the U.S. Army, working as a financial counselor with the Casualty Assistance Office. He was also a major in the U.S. Army Reserves, where he has been enlisted since 2003. Craffy was responsible for providing general financial education to the surviving beneficiaries. He was prohibited from offering any personal opinions regarding the surviving beneficiary’s benefits decisions. Craffy was not permitted to participate personally in any government matter in which he had an outside financial interest. However, without telling the Army, Craffy simultaneously maintained outside employment with two separate financial investment firms.
Craffy used his position as an Army financial counselor to identify and target Gold Star families and other military families. He encouraged the Gold Star families to invest their survivor benefits in investment accounts that he managed in his outside, private employment. Based upon Craffy’s false representations and omissions, the vast majority of the Gold Star families mistakenly believed that Craffy’s management of their money was done on behalf of and with the Army’s authorization.
From May 2018 to November 2022, Craffy obtained more than $9.9 million from Gold Star families to invest in accounts managed by Craffy in his private capacity. Once in control of this money, Craffy repeatedly executed trades, often without the family’s authorization. These unauthorized trades earned Craffy high commissions. During the timeframe of the alleged scheme, the Gold Star family accounts had lost more than $3.4 million, while Craffy personally earned more than $1.4 million in commissions, drawn from the family accounts.
The wire fraud and securities fraud charges are each punishable by a maximum of 20 years in prison. The charge of submitting a false statement on a loan application is punishable by a maximum of two years in prison. The charges of acts affecting a personal interest and false statements to a federal agent are each punishable by five years in prison. All counts but the securities fraud count are also punishable by a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest. The securities fraud count is punishable by a maximum fine of either $5 million or twice the gain or loss from the offense, whichever is greatest.
The U.S. Securities and Exchange Commission (SEC) also filed a civil complaint against Craffy today based on the same and additional conduct. Craffy has been permanently prohibited from association with any member of the Financial Industry Regulatory Authority Inc. (FINRA).
U.S. Attorney Sellinger credited special agents of the Department of the Army Criminal Investigation Division, under the direction of Special Agent in Charge Kirch; special agents of DCIS, under the direction of Principal Deputy Director Ives; special agents of the FBI, under the direction of Special Agent in Charge Dennehy; and special agents of Homeland Security Investigations Newark, under the direction of Special Agent in Charge Patel with the investigation leading to the indictment. He also expressed appreciation for the Securities and Exchange Commission, under the direction of Gurbir S. Grewal, Director, Division of Enforcement, and FINRA, under the direction of Acting Head of Enforcement Christopher J. Kelly.
The government is represented by Assistant U.S. Attorneys Martha K. Nye of the Criminal Division in Trenton, and Carolyn Silane of the Criminal Division in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
craffy.indictment.pdf usa_sellinger_remarks.pdfTwo Las Vegas Men Indicted in Conspiracy to Distribute Methamphetamine Through JuvenileRead the Press Release
LAS VEGAS – Two Las Vegas residents made their initial appearance in federal court yesterday for allegedly orchestrating a conspiracy from about January 3, 2021 to at least June 2, 2022 to distribute large quantities of methamphetamine in Las Vegas and across state lines. As part of the conspiracy, Daniel Saldana, 36, and Mario Estrada, 21, are believed to have used a juvenile to distribute narcotics while Saldana was incarcerated on other charges.
Saldana, also known as “Chapo,” and Estrada have each been charged with one count of conspiracy to distribute a controlled substance and two counts of distribution of a controlled substance. Estrada has also been charged with two additional counts of distribution of a controlled substance. Saldana and Estrada were arraigned on July 6, 2023, and July 7, 2023, respectively. United States Magistrate Judge Nancy J. Koppe scheduled a jury trial before United States District Judge Cristina D. Silva on September 11, 2023.
If convicted, Saldana and Estrada each face a statutory maximum penalty of a lifetime period of incarceration, and a mandatory minimum of ten years.
The Department of Justice is committed to the prosecution of drug trafficking organizations that exploit juveniles to further the trafficking of narcotics. Methamphetamine is a highly addictive drug with potent central nervous system stimulant properties. Methamphetamine is a Schedule II stimulant under the Controlled Substances Act, which means that it has a high potential for abuse. For more information about Methamphetamine, read the Drug Enforcement Administration (DEA) Drug Fact Sheet at: https://www.dea.gov/sites/default/files/2020-06/Methamphetamine-2020_0.pdf.
United States Attorney Jason M. Frierson for the District of Nevada and Assistant Special Agent in Charge Kevin Adams for the DEA Las Vegas District Office made the announcement.
This case was investigated by the DEA Las Vegas District Office, the Las Vegas Metropolitan Police Department, and the North Dakota Attorney General’s Bureau of Criminal Investigation. The United States Attorney’s Office is prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Two Former Eastern Kentucky Correctional Officers Plead Guilty for Their Roles in Assault of Restrained Inmate and Subsequent Cover-UpRead the Press Release
Two former Eastern Kentucky Correctional Complex (EKCC) officers pleaded guilty for their roles in the assault of a restrained inmate.
According to court documents, Randall T. Dennis, 28, pleaded guilty to one count of deprivation of the inmate’s civil rights and Nathan M. Cantrell, 32, pleaded guilty to four counts of obstruction of justice for attempting to cover up what happened. In their plea agreements, the defendants admitted that on July 24, 2018, EKCC correctional officers assaulted a nonviolent inmate who was lying face-down, wearing handcuffs and leg shackles, and isolated in a prison shower cell. Dennis admitted that he participated in the assault by repeatedly striking the inmate while he was restrained and unresisting. Cantrell, who stood outside of the shower while the assault occurred, admitted that he falsified records by omitting the assault from his occurrence report, and that he later lied to the supervisor assigned to investigate the incident as well as a Kentucky State Police (KSP) detective and a Kentucky Internal Investigations Branch (IIB) investigator.
Four other former officers have pleaded guilty in related cases. On April 10, former EKCC officer James Benish pleaded guilty to one count of deprivation of civil rights based on his failure to intervene to protect the inmate, and former EKCC supervisor Randy Nickell pleaded guilty to three counts of obstruction based on his efforts to cover up the same assault. On Aug. 29, 2022, former EKCC officer Jeffery Havens pleaded guilty to one count of deprivation of civil rights based on his assault of the inmate. On July 11, 2022, former EKCC officer Derek Mays pleaded guilty to four counts of obstruction of justice based on his efforts to cover up the assault.
Dennis and Cantrell are scheduled to be sentenced on Dec. 11. Dennis faces a maximum sentence of up to 10 years in prison. Cantrell faces a maximum of 20 years in prison for each charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division; U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office; and Colonel Phillip Burnett Jr. Commissioner of the KSP made the announcement.
The FBI, the KSP and the Kentucky Justice and Public Safety Cabinet conducted the investigation.
Assistant U.S. Attorney Zach Dembo and Mary Melton for the Eastern District of Kentucky and Trial Attorney Thomas Johnson of the Civil Rights Division’s Criminal Section are prosecuting the case.
Truesdale Man Sentenced for Carjacking in SpringfieldRead the Press Release
SPRINGFIELD, Mo. – A Truesdale, Mo., man has been sentenced in federal court for stealing a woman’s car at knifepoint in Springfield, Mo.
Michael Brian Free, 50, was sentenced by U.S. District Judge Brian C. Wimes on Thursday, July 6, to seven years in federal prison without parole.
On Feb. 9, 2023, Free pleaded guilty to one count of taking a motor vehicle by force, violence, and intimidation, with the intent to cause death and serious bodily harm.
Free admitted that he pointed a knife at a woman who was getting gas at a Springfield convenience store on April 30, 2022. After she had paid for her gas and stepped back out to her 2011 Chevy Impala next to the fuel pumps, Free approached her, pulled out a knife and demanded her car keys. Free threatened to stab her in the neck if she didn’t give him the keys to her car. She gave him the keys then fled into the store and called the police.
Video footage from the store captured Free making a purchase inside the store. Investigators were able to use the store’s financial records to help identify Free.
Free was driving the stolen vehicle when he was arrested in the Des Moines, Iowa, area in May 2022.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Springfield, Mo., Police Department and the FBI.
Tracy Resident Charged with Computer Attack on Discovery Bay Water Treatment FacilityRead the Press Release
OAKLAND – A federal grand jury has indicted Rambler Gallo, charging him with intentionally causing damage to a protected computer after he allegedly accessed the computer network for the Discovery Bay Water Treatment Facility, located in the Town of Discovery Bay, Calif., and intentionally uninstalled the main operational and monitoring system for the water treatment plant and then turned off the servers running those systems causing a threat to public health and safety, announced United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp.
According to the indictment, filed June 27, 2023, and unsealed earlier today, prior to the attack on the Discovery Bay Water Treatment facility, Gallo, 53, of Tracy, Calif., was a full-time employee of a private Massachusetts-based company identified in the indictment as Company A. Company A contracted with Discovery Bay to operate the town’s wastewater treatment facility; the facility provides treatment for the water and wastewater systems for the town’s 15,000 residents. During his employment with Company A, from July of 2016 until December of 2020, Gallo was the company’s “Instrumentation and Control Tech,” with responsibility for maintaining the instrumentation and the computer systems used to control the electromechanical processes of the facility in Discovery Bay.
The indictment alleges that while Gallo was employed with Company A, he installed software on his own personal computer and on Company A’s private internal network that allowed him to gain remote access to Discovery Bay’s Water Treatment facility computer network. Then, in January of 2021, after Gallo had resigned from Company A, he allegedly accessed the facility’s computer system remotely and transmitted a command to uninstall software that was the main hub of the facility’s computer network and that protected the entire water treatment system, including water pressure, filtration, and chemical levels.
The indictment charges Gallo with one count of transmitting a program, information, code, and command to cause damage to a protected computer, in violation of 18 U.S.C. §§ 1030(a)(5)(A) and (c)(4)(B)(i).If convicted, Gallo faces a maximum statutory penalty of 10 years in prison and a fine of $250,000. In addition, as part of any sentence, the court may order an additional term of supervised release, additional assessments, and restitution, if appropriate. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing imposition of a sentence, 18 U.S.C. § 3553.
The charges contained in an indictment are mere allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law.
Gallo made his initial federal court appearance this morning before U.S. Magistrate Judge Kandis A. Westmore. Gallo’s next appearance is scheduled for July 20, 2023 before Judge Westmore for further hearing on release conditions.
Assistant United States Attorney Cynthia Frey is prosecuting this case with assistance from Kathy Tat and Kevin Costello. The case is being investigated by the FBI.
Three Arrested for Drug Distribution at Rutland MotelRead the Press Release
Burlington, Vermont – The Office of the United States Attorney for the District of Vermont announced that Bradley Saldi, 43, Tina-Marie Mound, 61, and Brittany Fields, 31, have been charged with the distribution of cocaine base and fentanyl by criminal complaint. All three were arrested Thursday morning, July 6, 2023, in Rutland, Vermont during the execution of federal search warrants at the Highlander Motel. All three were living at the Highlander Motel at the time of their arrest and are scheduled to appear this afternoon before United States Magistrate Judge Kevin J. Doyle.
According to court records, law enforcement conducted numerous controlled purchases from multiple people at the Highlander Motel between December 2022 and June 2023. Saldi is alleged to have distributed cocaine base on May 15, May 16, June 12, and June 14, 2023, and fentanyl on May 15, 2023. Mound is alleged to have distributed fentanyl on December 7 and December 9, 2022, and on February 17, 2023. Fields is alleged to have distributed fentanyl on January 31, 2023, and cocaine base on June 14, 2023. All of these controlled purchases occurred on the premises of the Highlander Motel.
The United States Attorney’s Office emphasizes that a criminal complaint contains allegations only, and that Saldi, Mound, and Fields remain presumed innocent until and unless they are convicted of a crime. Each defendant faces a maximum sentence of 20 years of imprisonment if convicted. The actual sentence would be determined with reference to Federal Sentencing Guidelines.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of the Vermont State Police’s Narcotics Investigation Unit, the Federal Bureau of Investigation, the Rutland City Police Department, and Homeland Security Investigations. He also thanked the Vermont State Police’s Field Force and Tactical Services Unit for vital assistance.
The prosecutors are Assistant United States Attorneys Jason Turner and Jonathan Ophardt. Saldi, Mound, and Fields have not yet been appointed counsel.
Texas Man Sentenced to 90 Consecutive Life Sentences for Mass Shooting in El PasoRead the Press Release
EL PASO, Texas – A Texas man was sentenced in a federal court in El Paso today to 90 consecutive life sentences in prison for killing 23 people and injuring 22 more in a mass shooting at an El Paso Walmart, Aug. 3, 2019.
According to court documents, Patrick Wood Crusius, 24, was convicted on a guilty plea to a 90-count superseding indictment with 45 counts of violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act, and 45 counts of using a firearm during and in relation to crimes of violence. Crusius admitted that his crimes were directed at Hispanics because of their perceived race and national origin and were motivated by his desire to initiate a race war.
Over a period of months, the defendant meticulously planned and carefully prepared to commit his crimes, detailing the plan and its purpose in a manifesto he crafted and posted on the internet moments before initiating the attack on the victims and the El Paso community.
After receiving statements from some of the victims, their family members and loved ones, the court imposed 90 consecutive life sentences. Under federal law, a sentence of life imprisonment is without the possibility of parole and ends only upon the prisoner’s death. Accordingly, this sentence ensures Crusius will spend the rest of his natural life in prison.
Crusius was sentenced to one life sentence for each count in the superseding indictment for hate crime acts that resulted in the deaths of Andre Anchondo; Jordan Anchondo; Arturo Benavides; Jorge Calvillo Garcia; Guillermo Garcia; Leonardo Campos; Angelina Englisbee; Maria Flores; Raul Flores; Adolfo Cerros Hernandez; Alexander Hoffmann; David Johnson; Luis Alfonso Juarez; Maria Legarreta Rothe; Maribel Loya Hernandez; Ivan Filiberto Manzano; Gloria Irma Marquez; Elsa Mendoza Marquez; Margie Reckard; Sara Regalado Monreal; Javier Amir Rodriguez; Teresa Sanchez; and Juan Velasquez.
Crusius was also sentenced for 22 counts of hate crime acts that caused bodily injury and involved attempts to kill the 22 people injured in the shooting.
In addition to the hate crimes, Crusius was sentenced for 45 firearms violations, 23 counts of using a firearm in a federal crime of violence resulting in death, and 22 counts of using a firearm in a federal crime of violence.
“This defendant drove hundreds of miles from his home in Allen, Texas to El Paso, traveling through the night with an assault rifle and ammunition, to undertake a planned attack against Hispanics in this binational community, contending he was defending his country from the ‘cultural and ethnic replacement’ brought on by what he called the ‘Hispanic invasion of Texas,’” said First Assistant U.S. Attorney Margaret Leachman for the Western District of Texas. “Once in El Paso, he systematically targeted and killed 23 innocent people, injured 22 more, and forever changed the lives of so many others who witnessed this horrific event, leaving a haunting scar on the El Paso/Ciudad Juarez community and beyond. While this sentence cannot possibly replace the lives lost or undo the harm done to the survivors or those otherwise impacted by this horrific event, it is our hope this sentence of 90 consecutive life terms brings some finality and peace to those effected, with the knowledge that this ensures this defendant will spend the rest of his life in prison. The U.S. Attorney’s Office for the Western District of Texas will continue to aggressively prosecute those who commit violence because of bias or hate, seeking justice in the names of the victims and their loved ones.”
“Although today’s federal sentencing cannot bring back the loved ones lost or the innocence shattered on August 3rd, 2019, it is a step closer towards obtaining justice for the victims, survivors, and our El Paso community,” said Special Agent in Charge Jeffery R. Downey of the FBI El Paso Field Office. “Our hearts are with the victims, their families, and our community as El Paso continues to move forward and heal from these horrendous acts that targeted El Paso’s proud multi-cultural community. We stand together in unity with our partners at El Paso Police Department, Texas Department of Public Safety, and the many other agencies who worked so hard to get closure for the victims. The FBI will continue to seek justice for all those whose civil rights and safety are threatened by hate.”
“Sadly, August 3, 2019, is a date that is etched in the history of El Paso, Texas,” said Special Agent in Charge Jeffrey C. Boshek, II for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Dallas Field Division. “This date and horrendous act will forever be ingrained in the memories of the entire community of El Paso. Today’s sentencing is the reason we at ATF chose to protect and serve the public. The collaboration between local, state, and federal partners was key in our continuing effort to combat violent crime and maintain public safety. Although no sentence will ease the pain of this tremendous loss, this sentencing proves that senseless crimes like this will be prosecuted to the fullest extent possible.”
“Today signifies a pivotal moment for those wounded and the families tormented by the August 3rd assailant,” said Interim Chief of Police Peter Pacillas for the El Paso Police Department. “May this sentence offer them a glimmer of solace and commence their journey towards healing. Let the names of those we lost and those forever marked by this tragedy be eternally etched in our community's heart and memory."
The FBI investigated the case, in partnership with the El Paso Police Department; ATF; the Texas Department of Public Safety; the El Paso County Sheriff’s Office; the El Paso County Office of the Medical Examiner; the Allen Police Department; and the Dallas Police Department. Additionally, the United States Border Patrol, the State Department, and the Department of Homeland Security provided significant support in responding to this shooting and throughout the investigation and prosecution of this case. The U.S. Attorney’s Office is very grateful to these agencies and commends their hard work and tremendous dedication to this matter.
The U.S. Attorney’s Office and these law enforcement agencies offer our deepest condolences and sympathies to the victims and all those impacted by these horrific crimes. We are grateful for their assistance in and their patience with these lengthy federal criminal proceedings.
This defendant will now be returned to state custody to face the pending state criminal charges.
Assistant U.S. Attorneys Ian Hanna, Gregory McDonald and Patricia Acosta for the Western District of Texas El Paso Division prosecuted the case along with trial attorneys Kyle Boynton of the Civil Rights Division’s Criminal Section and Michael Warbel of the Criminal Division’s Capital Case Section.
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Texas Man Sentenced to 90 Consecutive Life Sentences for 2019 Mass Shooting at Walmart in El Paso, Texas, Killing 23 People and Injuring 22 OthersRead the Press Release
A Texas man was sentenced to 90 consecutive life sentences in prison for carrying out a mass shooting at the Cielo Vista Walmart in El Paso, Texas, on Aug. 3, 2019, killing 23 people and injuring 22 more.
On Feb. 8, Patrick Wood Crusius, 24, pleaded guilty to a 90-count indictment with 45 counts of violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act and 45 counts of using a firearm during and in relation to crimes of violence. The defendant was sentenced to one life sentence for each count in the indictment, including for hate crime acts that resulted in the deaths of Andre Anchondo, Jordan Anchondo, Arturo Benavides, Jorge Calvillo Garcia, Guillermo Garcia, Leonardo Campos, Angelina Englisbee, Maria Flores, Raul Flores, Adolfo Cerros Hernandez, Alexander Hoffmann, David Johnson, Luis Alfonso Juarez, Maria Legarreta Rothe, Maribel Loya Hernandez, Ivan Filiberto Manzano, Gloria Irma Marquez, Elsa Mendoza Marquez, Margie Reckard, Sara Regalado Monreal, Javier Amir Rodriguez, Teresa Sanchez, and Juan Velasquez.
Crusius was also sentenced for 22 counts of hate crime acts that caused bodily injury and involved attempts to kill 22 people injured in the shooting. In addition to the hate crimes, Crusius was sentenced for 45 firearms violations, including 23 counts of using a firearm in a federal crime of violence resulting in death, and 22 counts of using a firearm in a federal crime of violence.
“No one in this country should have to live in fear of hate-fueled violence – that they will be targeted because of what they look like or where they are from,” said Attorney General Merrick B. Garland. “The 90 consecutive life sentences announced today guarantee that Patrick Crusius will spend the rest of his life in prison for his deadly, racist rampage in El Paso. We are grateful to the victims and their family members who have spent the last three days bravely sharing the devastation and pain they endured because of Crusius’s horrendous crimes. The Justice Department’s commitment to combating hate crimes is unwavering.”
“We are hopeful today's sentence brings a sense of justice, but the memories of the victims and our support for their families and the survivors doesn't end here,” said FBI Director Christopher Wray. “FBI employees are members of the communities we serve, and in El Paso, we will continue to help our neighbors and friends heal for as long as it takes. When anyone in our communities is threatened with violence or hate, the FBI will work with them side by side to fight for justice and we will hold the perpetrators accountable.”
“We hope this sentence will bring some small measure of justice to those impacted by this massacre of innocent people targeted for no other reason than their Hispanic identity and national origin,” said Assistant Attorney General Kristen Clarke of the Justice Department's Civil Rights Division. “This hate crime, that extinguished the lives of 23 innocent people, stands as one of the most horrific acts of white nationalist-driven violence in modern times. We lift up the legacies of those who lost their lives and those who survived this tragedy and will ensure that they are never forgotten. Make no mistake, white nationalist hate crimes have no place in our country today and we must bring every tool at our disposal to confront this threat.”
“This defendant systematically targeted and killed 23 innocent people, injured 22 more, and forever changed the lives of so many others who witnessed this horrific event, leaving a haunting scar on the El Paso/Ciudad Juarez community and beyond,” said First Assistant U.S. Attorney Margaret Leachman for the Western District of Texas. “While today’s sentence cannot possibly replace the lives lost or undo the harm done to the survivors and those otherwise impacted by this horrific event, it is our hope this sentence of 90 consecutive life terms brings some finality and peace to those effected. The U.S. Attorney’s Office for the Western District of Texas will continue to aggressively prosecute those who commit violence because of bias or hate, seeking justice in the names of the victims and their loved ones.”
According to court documents, Crusius previously admitted that he killed and wounded people at the Walmart because of the actual and perceived national origin of the people he expected to be at the Walmart. He further admitted that he intended to kill everyone he shot.
Crusius also admitted he wrote a manifesto, titled “An Inconvenient Truth,” and uploaded it to the internet minutes before he commenced his attack. In it, he characterized himself as a white nationalist, motivated to kill Hispanics because they were immigrating to the United States. Crusius admitted to selecting El Paso, a border city, as his target to dissuade Mexican and other Hispanic immigrants from coming to the United States.
The FBI investigated the case, in partnership with the El Paso Police Department; the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); the Texas Department of Public Safety; the El Paso County Sheriff’s Office; the El Paso County Office of the Medical Examiner; the Allen Police Department; and the Dallas Police Department.
Assistant U.S. Attorneys Ian Hanna, Gregory McDonald, and Patricia Acosta for the Western District of Texas’ El Paso Division and Trial Attorneys Kyle Boynton of the Civil Rights Division’s Criminal Section and Michael Warbel of the Criminal Division’s Capital Case Section prosecuted the case.
For more information about the department’s efforts to combat and prevent hate crimes, visit www.justice.gov/hatecrimes.
Terrebonne Man Pleads Guilty to Trafficking Fentanyl and Firearm ViolationRead the Press Release
NEW ORLEANS, LA – JOSHUA PICOU, age 30, of Houma, Louisiana, pleaded guilty on July 6, 2023 to violations of the Federal Gun Control Act and Federal Controlled Substances Act, announced United States Attorney Duane A. Evans. Specifically, he pleaded guilty to distributing a substance containing fentanyl and cocaine and possessing fentanyl, cocaine base (“crack”), and cocaine with the intent to distribute, all in violation of Title 21 United States Code, Sections 841(a)(1), 841(b)(1)(B), and 841(b)(1)(C). He further pleaded guilty to possession of a firearm by a convicted felon in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
According to court documents, PICOU distributed a substance containing fentanyl and cocaine on May 27, June 2, and June 22, 2021. Later, on June 24, 2021, he possessed forty (40) grams or more of fentanyl, twenty-eight (28) grams or more of cocaine base, and a quantity of cocaine, with the intent to distribute those substances. On that same date, he possessed two firearms, a Glock Model 17 handgun and a Springfield Armory XDM-9. PICOU possessed those firearms while prohibited due to his prior criminal convictions. These convictions include a felony possession with intent to distribute a controlled substance in Louisiana and a misdemeanor crime of domestic violence in Louisiana.
At sentencing, for distribution of fentanyl and cocaine as well as or possession with intent to distribute cocaine charges, PICOU faces a maximum of twenty (20) years imprisonment, up to a $1,000,000.00 fine, and at least three (3) years of supervised release, as to each charged count. For possession with intent to distribute fentanyl or cocaine base, he faces a minimum of five (5) years and a maximum of forty (40) years imprisonment, up to a $5,000,000.00 fine, and at least four (4) years of supervised release. For possession of a firearm by a person convicted of a felony offense, he faces a maximum of ten (10) years imprisonment, a fine of up to $250,000, and up to three (3) years of supervised release. As to each charged count in the indictment , he also faces payment a $100.00 mandatory special assessment fee.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney Evans praised the work of the Homeland Securities Investigations and the Terrebonne Parish Sherriff’s Office in investigating this matter. The case is being prosecuted by Assistant U.S. Attorney David Haller of the Violent Crime Unit.
Tacoma man sentenced to three years in prison for defrauding union retirement plansRead the Press Release
Seattle – A 52-year-old resident of Tacoma who worked as a Third Party Administrator for union health and welfare and pension plans was sentenced today in U.S. District Court in Seattle to three years in prison for wire fraud and aggravated identity theft for stealing more than $200,000 from a union member’s account and other plans, announced Acting U.S. Attorney Tessa M. Gorman. Erik A. Read was indicted in April 2022 and pleaded guilty in March 2023. At the sentencing hearing, U.S. District Judge Ricardo S. Martinez said, Read “had a position of trust that he utilized to steal money…. This was not a onetime event…. he put together an elaborate scheme to steal money.”
“Mr. Read used his specialized knowledge to steal the money a commercial painter had paid into his pension plan, hoping his theft would go undetected,” said Acting U.S. Attorney Gorman. “Read’s conduct was a highly detailed scheme involving forged records, fake IDs, and lies to colleagues. It didn’t just harm the victim financially, it also created great stress when the worker saw his pension vanish.”
According to records filed in the case, Read worked as a third party administrator for three different union plans from which he improperly diverted funds: the Western Washington Painter Defined Contribution Pension Plan, the International Brotherhood of Electrical Workers Local 191 Health and Welfare Plan, as well as the Washington State Plumbing and Pipefitting Industry Plan.
Court records detail how he stole from the account of one of the members of the painters’ union – a person who was listed as a “missing participant,” meaning he was no longer actively participating in the plan. Between April 2018 and May 2019, Read falsified records, forged signatures, and doctored a driver’s license to make it appear that the victim wanted his funds withdrawn from the fund to pay for medical treatment for a terminal illness. Read claimed to his coworkers that he was going to deliver the checks by hand to the victim and his family. In fact, Read deposited the checks into his own bank account. Even as he was earning $150,000 a year, he was improperly taking funds from the pension plans that he worked on. Read has agreed to pay $294,251 to the victim pension plans or their insurers.
In asking for a four-year prison term, prosecutor Brian Wynne wrote to the court, “While the financial impacts of Read’s crimes were great, the non-financial impacts on both individuals Read worked for and on behalf of are unquantifiable. The impacts include the stress on (one victim) upon learning his retirement had been stolen and his efforts to recoup it. The impacts also include the stress experienced by Read’s colleagues who unwittingly helped Read carry out the fraud and the stress and managerial impacts on the trusts whose plans Read administered.”
The case was investigated by the U.S. Department of Labor. The case was prosecuted by Assistant United States Attorneys Sok Tea Jiang, Brian J. Wynne, and Jehiel I. Baer.
Springfield Man Sentenced to 17 Years for Drug-Trafficking ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man was sentenced in federal court today for leading a drug-trafficking conspiracy.
Herman G. Mercado, 40, was sentenced by U.S. District Judge Brian C. Wimes to 17 years and six months in federal prison without parole.
On Jan. 24, 2023, Mercado pleaded guilty to conspiracy to distribute cocaine, marijuana, and methamphetamine.
According to court documents, Mercado was the leader of a drug-trafficking conspiracy responsible for the distribution of 3.99 kilograms of cocaine, 61.57 kilograms of methamphetamine, and 2,440 kilograms of marijuana from April 19, 2017, to Oct. 2, 2019. Mercado admitted that he sold cocaine, methamphetamine, and ecstasy to a law enforcement confidential informant on several occasions.
In October 2019, law enforcement officers executed a search warrant at the residence of Mercado’s daughter in Springfield. Officers seized 5.382 kilograms of methamphetamine that belonged to Mercado.
Mercado was convicted in the Middle District of Pennsylvania for possession with the intent to distribute cocaine, for which he received a 10-year prison sentence followed by five years of supervised release. During his period of supervised release, Mercado engaged in the drug distribution activity in this case.
Mercado is the fourth defendant sentenced in this case. Daniel T. Sutton, 25, of Springfield, was sentenced to 11 years in federal prison without parole. Carmine Guzmanperalta, 34, address unknown, was sentenced to 10 years in federal prison without parole. William O. Evans, 54, of Springfield, was sentenced to 100 months in federal prison without parole. Co-defendants Alex Santiago-Negron, Jr., 28, address unknown, and Colleen A. Mahon, 28, of Springfield, have pleaded guilty and await sentencing.
This case is being prosecuted by Assistant U.S. Attorney Randall D. Eggert. It was investigated by the Springfield, Mo., Police Department, IRS-Criminal Investigation, the Missouri State Highway Patrol, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Organized Crime and Drug Enforcement Task Force
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Southern California Edison, Tree Service and Telecommunications Companies Pay $22 Million to Settle Claims from the 2016 Rey FireRead the Press Release
LOS ANGELES – Southern California Edison (SCE); Utility Tree Service LLC (UTS); and Frontier Communications Holdings LLC have paid the United States $22 million to resolve claims on behalf of the U.S. Forest Service to recoup costs and damages associated with a 2016 wildfire in the Los Padres National Forest, the Justice Department announced today.
The Rey Fire ignited on August 18, 2016, when a tree fell onto powerlines and communication lines owned, respectively, by SCE and Frontier. In 2019, the United States filed a lawsuit on behalf of the Forest Service against SCE and Frontier — as well as UTS, which was SCE’s vegetation management contractor — to recover costs for the extensive damages that the Rey Fire caused.
The United States alleged that the impact of the tree on Frontier’s and SCE’s lines caused a malfunction of SCE’s power equipment farther down the power lines and caused an energized power line to fall to the ground. The energized power line ignited adjacent dry vegetation. The Rey Fire burned more than 32,000 acres, including 19,000 acres of National Forest System lands in Santa Barbara County.
“This settlement will compensate the public for the expense of fighting the Rey Fire and restoring these federal lands that are enjoyed by all Americans,” First Assistant United States Attorney Joseph T. McNally said. “The U.S. Attorney’s Office will continue to aggressively pursue recovery against those who cause damages to our precious national resources.”
SCE, UTS, and Frontier agreed to pay the settlement without admitting wrongdoing or fault.
This case was handled by Assistant United States Attorneys Matthew Barragan and Margaret Chen of the Complex and Defensive Litigation Section.
Six Defendants Indicted for Meth Conspiracy, Illegal FirearmsRead the Press Release
SPRINGFIELD, Mo. – Six southern Missouri residents have been indicted by a federal grand jury for their roles in a conspiracy to distribute methamphetamine as well as illegally possessing firearms.
Robert Jason Smith, 47, Terry M. Schenks, 53, Randy L. Johns, 45, and Jill M. Matthews, 45, all of Ozark, Mo.; Michael R. Goodwin, 41, of Springfield; and Evelyn J. Dame, 48, of Lebanon, Mo., were charged in a 19-count indictment returned under seal by a federal grand jury in Springfield on June 28, 2023. That indictment was unsealed and made public on Wednesday, July 5, upon the arrests and initial court appearances of the defendants.
The federal indictment alleges that all six defendants participated in a conspiracy to distribute methamphetamine in Christian and Greene counties from Dec. 16, 2020, to June 2, 2022.
In addition to the drug-trafficking conspiracy, Goodwin is charged with two counts of possessing 500 grams or more of methamphetamine with the intent to distribute, three counts of possessing 50 grams or more of methamphetamine with the intent to distribute, one count of possessing fentanyl with the intent to distribute, one count of possessing a firearm in furtherance of a drug-trafficking crime, and three counts of being a felon in possession of a firearm. Goodwin allegedly possessed a Glock 9mm semi-automatic pistol on June 30, 2021, a SARS Arms 9mm semi-automatic pistol on Sept. 2, 2021, and a North American Arms .22 magnum revolver on Dec. 13, 2021.
Schenks also is charged with one count of possessing 50 grams or more of methamphetamine to distribute, one count of distributing methamphetamine, and one count of being a felon in possession of firearms. Schenks allegedly possessed a Spike’s Tactical .223-caliber/5.56mm semi-automatic rifle, a DPMS .223-caliber/5.56mm semi-automatic rifle, two Maverick 12-gauge shotguns, a SCCY 9mm semi-automatic pistol, and a Bersa .380-caliber semi-automatic pistol on June 2, 2022.
Smith also is charged with one count of distributing methamphetamine, one count of possessing 50 grams or more of methamphetamine with the intent to distribute, and one count of being a felon in possession of ammunition.
Dame is also charged in one count of possessing 500 grams or more of methamphetamine with the intent to distribute.
Johns and Matthews also are charged together in one count of possessing 50 grams or more of methamphetamine with the intent to distribute.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jessica R. Eatmon. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Christian County, Mo., Sheriff’s Department, the Springfield, Mo., Police Department, the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Greene County, Mo., Sheriff’s Department.
Organized Crime and Drug Enforcement Task Force
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Sentencian a 90 cadenas perpetuas consecutivas al hombre de Texas responsable del tiroteo masivo de 2019 en el Walmart de El Paso, Texas, que dejó 23 muertos y 22 heridosRead the Press Release
Un hombre de Texas fue sentenciado a 90 cadenas perpetuas consecutivas por llevar a cabo un tiroteo masivo en el Walmart de Cielo Vista en El Paso, Texas, el 3 de agosto de 2019, donde mató a 23 personas e hirió a otras 22.
El 8 de febrero, Patrick Wood Crusius (24) se declaró culpable de los 90 cargos de la acusación, que incluían 45 cargos por violar la Ley para la Prevención de Delitos de Odio Matthew Shepard y James Byrd Jr., y 45 cargos por usar un arma de fuego durante y en relación con delitos de violencia. El acusado fue sentenciado a una cadena perpetua por cada cargo en la acusación, inclusive por los actos de delito de odio que ocasionaron la muerte de Andre Anchondo, Jordan Anchondo, Arturo Benavides, Jorge Calvillo Garcia, Guillermo Garcia, Leonardo Campos, Angelina Englisbee, Maria Flores, Raul Flores, Adolfo Cerros Hernandez, Alexander Hoffmann, David Johnson, Luis Alfonso Juarez, Maria Legarreta Rothe, Maribel Loya Hernandez, Ivan Filiberto Manzano, Gloria Irma Marquez, Elsa Mendoza Marquez, Margie Reckard, Sara Regalado Monreal, Javier Amir Rodriguez, Teresa Sanchez y Juan Velasquez.
Crusius también fue sentenciado por 22 cargos de actos de delito de odio que ocasionaron lesiones personales e implicaron tentativa de asesinar a otras 22 personas en el tiroteo. Además de los delitos de odio, Crusius fue sentenciado por 45 violaciones relacionadas con el uso de armas de fuego, entre las que se incluyen 23 cargos por usar un arma de fuego en un delito federal de violencia con resultado mortal y 22 cargos por usar un arma de fuego en un delito federal de violencia.
“Nadie en este país debería vivir con miedo a sufrir violencia alimentada por el odio, pensando que pueden ser atacados por la forma en que se ven o por el lugar del que provienen”, afirmó el fiscal general Merrick B. Garland. “Las 90 cadenas perpetuas consecutivas anunciadas hoy garantizan que Patrick Crusius pasará el resto de su vida en prisión por su masacre racista en El Paso. Les agradecemos a las víctimas y a sus familiares que han pasados los últimos tres días compartiendo con mucha valentía la desolación y el dolor que han atravesado debido a los atroces delitos cometidos por Crusius. El compromiso asumido por el Departamento de Justicia para combatir los delitos de odio es inquebrantable”.
“Esperamos que la sentencia de hoy traiga un sentido de justicia, pero las memorias de las víctimas y nuestro apoyo a las familias y los sobrevivientes no acaban aquí”, afirmó el director del FBI Christopher Wray. “Los empleados del FBI son miembros de las comunidades para las que trabajamos y, en El Paso, seguiremos ayudando a nuestros vecinos y amigos a sanar estas heridas durante el tiempo que sea necesario. Cuando cualquier miembro de nuestra comunidad sea amenazado con violencia u odio, el FBI trabajará a su lado para luchar por la justicia y responsabilizar a los culpables”.
“Esperamos que esta sentencia traiga algo de justicia a aquellos afectados por esta masacre de personas inocentes atacadas por ningún otro motivo más que su identidad y nacionalidad hispanas”, dijo la fiscal general adjunta Kristen Clarke de la División de Derechos Civiles del Departamento de Justicia. “Este delito de odio, que acabó con la vida de 23 personas inocentes, se destaca como uno de los actos más espantosos de violencia fundada en el nacionalismo blanco que se ha registrado en los tiempos modernos. Honraremos el legado de aquellos que perdieron la vida y aquellos que sobrevivieron a esta tragedia, y nos aseguraremos de que nunca sean olvidados. No se equivoquen: los delitos de odio de los nacionalistas blancos no tienen lugar en nuestro país actualmente y debemos usar todas las herramientas que estén a nuestro alcance para hacer frente a esta amenaza”.
“Este acusado atacó sistemáticamente y asesinó a 23 personas inocentes, hirió a otras 22 y cambió para siempre la vida de muchas otras personas que presenciaron este hecho espantoso, dejando una cicatriz imborrable en la comunidad de El Paso/Ciudad Juarez y los alrededores”, dijo la primera fiscal federal adjunta del Distrito Occidental de Texas Margaret Leachman. “Si bien la sentencia de hoy no puede devolver las vidas perdidas ni reparar el daño causado a los sobrevivientes y aquellos afectados de otras formas por este espantoso hecho, esperamos que esta sentencia de 90 cadenas perpetuas consecutivas traiga algo de paz a los afectados y les permita cerrar una etapa. La Oficina del Fiscal Federal para el Distrito Occidental de Texas continuará procesando enérgicamente a todos aquellos que cometan violencia motivada por prejuicios u odio, para buscar justicia en nombre de las víctimas y sus seres queridos”.
Según los documentos judiciales, Crusius había admitido que asesinó e hirió a las personas en el Walmart debido a la nacionalidad real y percibida de las personas que esperaba encontrar en el Walmart. Además, admitió que su intención era asesinar a todas las personas a las que les disparó.
Crusius también admitió que escribió un manifiesto llamado “Una verdad incómoda” y lo subió a internet unos minutos antes de comenzar el ataque. En él, se describía a sí mismo como un nacionalista blanco, motivado a matar hispanos porque inmigraban a Estados Unidos. Crusius admitió que había seleccionado El Paso, una ciudad fronteriza, como su objetivo para disuadir a los mexicanos y otros inmigrantes hispanos de venir a los Estados Unidos.
El FBI investigó el caso, junto con el Departamento de Policía de El Paso; la Agencia de Alcohol, Tabaco, Armas de Fuego y Explosivos (ATF); el Departamento de Seguridad Pública de Texas; la Oficina del Alguacil del Condado de El Paso; la Oficina del Médico Forense del Condado de El Paso; el Departamento de Policía de Allen; y el Departamento de Policía de Dallas.
El caso fue procesado por los fiscales federales adjuntos Ian Hanna, Gregory McDonald y Patricia Acosta para la División de El Paso del Distrito Occidental de Texas, y los abogados litigantes Kyle Boynton de la Sección Penal de la División de Derechos Civiles y Michael Warbel de la Sección de Casos Capitales de la División Penal.
Para obtener más información sobre los esfuerzos del Departamento para combatir y prevenir los delitos de odio, visite www.justice.gov/hatecrimes.
Actualizado el 7 de julio de 2023.
Rochester Man Going to Prison on Carjacking and Gun ChargesRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Devin C. Johnson, Jr., 32, of Rochester, NY, who was convicted of carjacking and discharge of a firearm in relation to a crime of violence, was sentenced to serve 174 months by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Cassie Kocher, who handled the case, stated that on April 14, 2022, Johnson approached a taxicab driver (Victim) at a gas station on Dewey Avenue and asked for a ride to Lake Avenue and Flower City Park. During the ride, Johnson pressed a handgun against the Victim’s stomach and demanded his cell phone and car keys. The Victim drove back to the gas station and got out of the taxicab with his car keys after a brief struggle inside the vehicle. Johnson grabbed the Victim, threw him to the ground, and forcibly took the car keys from him, striking him twice in the head with the butt end of the handgun. Johnson also pointed the gun at Victim 1 and discharged one round, striking the ground next to the Victim. Johnson then took off in the Victim’s vehicle. A Monroe County Sheriff Sergeant attempted to conduct a traffic stop on the stolen vehicle near Salmon Creek Road in Spencerport, NY. Johnson got out of the vehicle and fled but was taken into custody after a short foot pursuit and turned over to Rochester Police officers. A 9mm pistol, which was reported stolen in South Carolina, was found nearby where Johnson fled.
The case was brought by the U.S. Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The sentencing is the result of an investigation by the Rochester Police Department, under the direction of Police Chief David Smith, the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia.
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Rochester Man Going to Prison for Selling FentanylRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Robert Colon, 31, of Rochester, NY, who was convicted of possession with intent to distribute fentanyl, was sentenced to serve 24 months in prison by U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Cassie M. Kocher, who handled the case, stated that between January 2022, and March 9, 2022, Colon sold quantities of cocaine, fentanyl, and/or para-fluorofentanyl to an undercover law enforcement officer on different occasions, which resulted in an arrest warrant being issued on March 23, 2022. Colon was taken into custody on May 30, 2022. At that time, he possessed approximately 189 baggies containing fentanyl, approximately 16 baggies of cocaine, and $1,748 in cash, which represented drug proceeds.
The sentencing is the result of an investigation by the Rochester Police Department, under the direction of Chief David Smith, the Greater Rochester Area Narcotics Enforcement Team, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino.
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Owner of Chester Unlicensed Group Home Sentenced for Medicaid and VRS FraudRead the Press Release
RICHMOND, Va. – A Chester woman was sentenced today to 51 months in prison for conspiracy to commit health care fraud, health care fraud, and wire fraud, all stemming from her operation of a Richmond metro-area health care services company.
According to court documents, between 2014 and 2021, Sharon Johnson, 58, owned and operated “Sharon Y. Johnson & Associates” (SYJA). Johnson’s company purportedly provided Medicaid-reimbursed services that included both Service Facilitator services—supervising a Medicaid recipient’s personal care plan and provider—and personal care services—home health care aid services designed to allow a recipient to remain at home, rather than entering a nursing home or group home. Johnson signed up numerous of her Service Facilitator clients, often without their awareness or informed consent, to receive personal care services from her company. Johnson utilized her personal residence in Chester—a single-story, three-bedroom, 1,326-square foot structure—as an unlicensed group home, housing up to a half-dozen Medicaid recipients, in addition to Johnson and another SYJA employee, at any given time.
Between 2014 and 2021, Johnson fraudulently billed Medicaid for personal care services purportedly provided to at least 14 of her patients, knowingly submitting timesheets to Medicaid that falsely claimed that certain SYJA aides had provided services, when, in fact, those purported SYJA employees had not provided home health care services to the patients in question. To execute this fraud scheme, Johnson and her co-conspirators created online patient portal accounts in the names of her patients, and thereafter assumed those patients’ identities when “approving” and routing billing requests for SYJA home health care services that had not, in fact, been provided.
Separately, Johnson also executed a scheme to defraud the Virginia Retirement System (VRS) of pension payments paid by the VRS to one of Johnson’s unlicensed group home residents. To obtain control over her patient’s financial affairs, Johnson submitted fraudulent documents to the VRS including a “Medical Power of Attorney” form, and, after her patient’s death, changed the direct deposit location of her now-deceased patient’s VRS pension payments to Johnson’s own bank account. VRS thereafter paid at least 8 monthly pension payments into Johnson’s bank account before belatedly confirming the patient’s death. Johnson, knowing she was not entitled to those VRS funds, spent those payments for her own purposes.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Stanley M. Meador, Special Agent in Charge of the FBI Richmond Field Office, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck.
Assistant U.S. Attorneys Thomas A. Garnett and Shea Gibbons prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:22-cr-16.
Orange County Businessman Pleads Guilty to Tax Evasion for Failing to Report Nearly $9 Million of His Company’s IncomeRead the Press Release
SANTA ANA, California – The owner of a Newport Beach-based artificial turf company pleaded guilty today to a federal criminal charge for failing to report nearly $9 million in income his business earned and for attempting to evade the payment of more than $946,000 in federal income taxes.
Craig Steven Voyton, 56, of San Pedro, pleaded guilty to one count of tax evasion.
Voyton owns and operates Smart Grass LLC, which installs artificial turf for residential and commercial customers in Orange and Los Angeles counties.
According to his plea agreement, from 2016 to 2020, Smart Grass generated more than $1.5 million in gross income per year from its business operations, and – not wanting to pay taxes that income – Voyton attempted to conceal that income from the IRS.
To do so, Voyton emailed customers federal tax forms listing false identification information, so if and when the customers reported to the IRS the payments they had made to him and his company, those payments would not tie for tax purposes directly to Voyton or Smart Grass.
On three occasions in 2020, Voyton emailed to customers in Los Angeles and Beverly Hills an IRS Form W-9 with false information and a signature in a fictitious identity. Voyton admitted in his plea agreement to sending similar fraudulent IRS Forms W-9 during the tax years 2016, 2017, 2018 and 2019. Voyton further admitted to providing a false IRS Form W-9 to a school in Irvine in August 2016.
While attempting to evade the payment of taxes during this time, Voyton made more than $63,000 in transfers to the Coinbase cryptocurrency exchange from a Smart Grass bank account. Voyton also used more than $500,000 in company funds to make real estate purchases in Nevada and Mexico.
In total, Voyton failed to report approximately $8,926,333 in income, which prevented the IRS from assessing the total sum of approximately $946,479 in federal income taxes for the tax years 2016 through 2020.
Voyton has agreed that before sentencing, he will pay the IRS all the back taxes he owes, plus interest, as well as paying an additional 75% fraud penalty.
United States District Judge John W. Holcomb scheduled a September 8 sentencing hearing, at which time Voyton will face a statutory maximum sentence of five years in federal prison.
IRS Criminal Investigation investigated this matter.
Assistant United States Attorney Charles E. Pell of the Santa Ana Branch Office is prosecuting this case.
Omaha Woman and Oakland Couple Sentenced for Government Loan Program FraudRead the Press Release
Acting United States Attorney Susan T. Lehr announced that Jazmyne L. McMiller, 36, of Omaha, Nebraska, was sentenced on July 6, 2023, by United States District Judge Brian C. Buescher to twelve months and one day of imprisonment for Conspiracy to Commit Wire Fraud. After McMiller’s release from prison, she will begin a three-year term of supervised release. There is no parole in the federal system. McMiller was also ordered to pay restitution of $267,040.20.
McMiller was the third defendant to be convicted and sentenced in connection with this case. On February 8, 2023, Sharon M. Thompson, 62, of Oakland, Nebraska, was sentenced by Judge Buescher to four years of probation for Conspiracy to Commit Wire Fraud. Sharon Thompson was also ordered to pay restitution of $355,020.30.
On May 31, 2023, Todd A. Thompson, 57, of Oakland, Nebraska, was sentenced by Judge Buescher to 41 months’ imprisonment for Conspiracy to Commit Wire Fraud. He will serve two years of supervised release. Todd Thompson was also ordered to pay restitution of $1,193,957.10.
During 2020 and 2021, all three defendants submitted applications for Paycheck Protection Program (“PPP”) and Economic Injury Disaster Loan (“EIDL”) program loans. The PPP and EIDL loan programs were created or expanded by the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, which was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic.
The applications submitted or caused to be submitted by all three defendants misrepresented how much the applicant businesses had paid employees in past compensation and how much revenue each had received, resulting in significantly inflated loan amounts under the PPP and EIDL programs. The PPP applications were supported by false documents that Todd Thompson helped prepare, including false tax forms that each defendant signed.
In total, McMiller submitted or caused to be submitted fraudulent applications seeking loans in the amount of approximately $404,324 and obtained $254,324. The fraudulent applications Sharon Thompson signed sought loans totaling approximately $469,886, and she obtained $344,786. The fraudulent applications Todd Thompson signed sought loans totaling approximately $1,368,892.00, and he obtained $552,892.00. In total, the three defendants submitted fraudulent applications seeking loans totaling $2,243,102.00 and obtained $1,152,002.00.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
This case was investigated by the Federal Bureau of Investigation.
Omaha Man Sentenced to 12 Months and 1 Day for Theft of Government PropertyRead the Press Release
Acting United States Attorney Susan T. Lehr announced that Jeffrey Bowlin, 55, of Omaha, Nebraska was sentenced on July 6, 2023, in federal court in Omaha for theft of government property. The Honorable Brian C. Buescher sentenced Bowlin to 12 months and one day in prison. There is no parole in the federal system. After his release from prison, Bowlin will begin a three-year term of supervised release. Bowlin was also ordered to pay $855.37 in restitution.
On multiple occasions in April and May 2022, Bowlin, who had been placed on leave from his position as Manager of Distribution Operations for the United States Postal Service, donned a mask, hood, and gloves and entered the Papillion, Nebraska, Post Office at night and rifled through packages, mail, and postal employee work areas to locate and take cash, controlled substances, and other items of value. At least 40 victims were able to be identified by the United States Postal Service.
This case was investigated by the United States Postal Service Office of Inspector General.
Omaha Man Sentenced for Methamphetamine ConspiracyRead the Press Release
Acting United States Attorney Susan T. Lehr announced that David Gonzalez-Jimenez, 24, of Omaha, Nebraska, was sentenced on July 5, 2023, by Chief United States District Judge Robert F. Rossiter, Jr. to 78 months’ imprisonment to be followed by four years of supervised release. There is no parole in the federal system. Gonzalez-Jimenez pled guilty in March 2023 to Conspiracy to Distribute Methamphetamine.
In 2022, Gonzalez-Jimenez delivered approximately one pound of methamphetamine to a cooperating individual. Officers later recovered approximately $14,425 cash and an additional approximately one pound of methamphetamine from Gonzalez-Jimenez’s residence and vehicle. The cash was forfeited.
This case was investigated by the Omaha Police Department.
Omaha Man Sentenced for Distributing MethamphetamineRead the Press Release
Acting United States Attorney Susan T. Lehr announced that Jeramie D. Watts, 35, of Omaha, Nebraska, was sentenced on July 6, 2023, in federal court in Omaha for distributing methamphetamine. United States District Judge Brian C. Buescher sentenced Watts to 12 months plus 1 day imprisonment. There is no parole in the federal system. After his release from prison, Watts will begin a 3-year term of supervised release.
On April 20, 2018, an undercover Bureau of Alcohol, Tobacco, Firearms and Explosives agent purchased 11 grams of methamphetamine from Watts for $500 in the parking lot of a West Omaha business. Watts entered the passenger side of the agent’s vehicle and produced the methamphetamine before leaving the area. A forensic lab confirmed the methamphetamine as weighing 11.7 grams with a purity of 95%.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Omaha Man Sentenced for Distributing MethamphetamineRead the Press Release
Acting United States Attorney Susan T. Lehr announced that Eduardo Ordaz, 25, of Omaha, Nebraska, was sentenced on July 6, 2023, in federal court in Omaha for distributing 5 grams or more of actual methamphetamine. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Ordaz to 60 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a 2-year term of supervised release.
On September 28, 2021, law enforcement utilized a cooperating witness (CW) to make a controlled buy of methamphetamine from Ordaz. The controlled buy took place in the CW's vehicle in the area of 23rd and Elm Streets in Omaha. The CW purchased 46 grams of methamphetamine with a purity of 95%, as confirmed by a forensic laboratory analysis.
This case was investigated by the Omaha Police Department.
Norfolk, Nebraska Man Sentenced in Methamphetamine ConspiracyRead the Press Release
Acting United States Attorney Susan T. Lehr announced that Roberto Nava, 49, of Norfolk, Nebraska, was sentenced on July 6, 2023, in federal court in Omaha, Nebraska, for possession with intent to distribute methamphetamine. United States District Judge Brian C. Buescher sentenced Nava to 120 months’ imprisonment. There is no parole in the federal system. After his release from prison, Nava will begin a five-year term of supervised release. He will also forfeit $42,000 in drug proceeds to the United States.
In August 2021, Drug Enforcement Administration agents became aware that a person by the name of Roberto Nava was distributing pound quantities of methamphetamine in the Norfolk area. Utilizing a confidential source, agents made arrangements to purchase methamphetamine on two occasions. On each buy, Nava arrived and delivered methamphetamine. On August 24, 2021, Nava delivered one pound of methamphetamine and on September 23, 2021, he delivered two pounds of methamphetamine
Following the controlled buy on September 23, 2021, agents then executed a search warrant on Nava’s residence. As a result, agents recovered an additional half pound of methamphetamine and $42,000 in drug proceeds. A forensic laboratory analysis confirmed the methamphetamine as 95% pure.
This case was investigated by the Drug Enforcement Administration.
New York Man Sentenced to 17 and a Half Years in Prison for Sexual Exploitation of Children and Distribution of Child PornographyRead the Press Release
WASHINGTON – Vincent Galarza, 32, of Glendale, New York, was sentenced today to 17 and a half years – or 210 months – in prison for his involvement and participation in the world’s formerly largest darknet child pornography website, Welcome To Video.
Galarza pleaded guilty on Jan. 17, 2023, to sexual exploitation of children and conspiracy to distribute child pornography.
Galarza is one of eight prolific users of the website Welcome to Video, charged in the District of Columbia for their participation in a massive darknet advertisement and distribution of child pornography. Welcome To Video operated as a hidden service on the Tor network until March 2018, when it was seized by law enforcement authorities. As of October 2019, when the Department initially announced its indictment of Welcome to Video site administrator Jong Woo Son (a South Korean national, subsequently convicted in South Korea), an additional 337 site users worldwide had been arrested and charged.
Additional defendants charged and convicted in the District of Columbia include Nicholas Stengel, 47, of Washington, D.C.; Charles Wunderlich, 36, of Hot Springs, California; Ernest Wagner, 72, of Federal Way, Washington; Darryl Miller, 36, of Shawnee, Kansas; Jason DeJournett, 47, of Seal Beach, California; Brian LaPrath, 36, of San Diego, California; and Michael Ezeagbor, 24, of Pflugerville, Texas.
According to court documents, users of the website created registered accounts with usernames and a password. Only after the user registered an account could the user browse previews of videos available for download and post text to the website. To download videos from the site, users needed “points,” which were allocated to users by the website. A registered user could earn points from the website in several ways, including uploading videos depicting child pornography, referring new users to the website, and paying for a “VIP” account with Bitcoin.
Court documents show that certain persons joined the conspiracy to distribute child pornography by uploading videos. Those co-conspirators who uploaded videos of child pornography for “points” also earned additional “points” each time a customer of the site downloaded that particular video. Court documents state that the co-conspirators had a shared goal as part of the conspiracy – increasing the number of unique videos on the website to drive additional traffic to it, which in turn led to greater downloads and more points for the co-conspirators.
The following is a summary of the conduct of each defendant charged in the District of Columbia.
Vincent Galarza
Between approximately May 31, 2017, and February 9, 2018, Galarza downloaded at least 174 videos from the website and uploaded approximately 560 videos, all of which depicted child pornography. A subsequent forensic search of Galarza’s electronic devices revealed that he was in possession of an additional 500 images and 102 videos of child pornography, the majority of which depicted sexually explicit conduct of pre-pubescent children.
During the search of the electronic devices, court documents say that authorities identified two minor victims that had been secretly recorded by Galarza. Galarza captured at least 20 videos of one of the minor victims that he then edited and clipped to produce over 966 still-shot images that focused on the same minor’s genitalia and pubic area.
Investigators also determined that Galarza had used images produced of one of the minor victims in an attempt to extort the victim into sending him additional images.
Nicholas Stengel
Stengel was sentenced to 180 months in prison and a lifetime of supervised release after he pleaded guilty to receipt of child pornography and laundering of monetary instruments. Stengel had a previous conviction for possession of child pornography. Stengel had amassed an extensive collection of child pornography from the website, with over 6,000 videos and 600,000 images.
Charles Wunderlich
Wunderlich was sentenced to 87 months in prison and 15 years of supervised release on June 28, 2022, after he pleaded guilty to one count of conspiracy to distribute child pornography. Wunderlich uploaded 13 videos and downloaded four videos of child pornography from the website.
Ernest Wagner
Wagner was sentenced to 60 months in prison and a lifetime of supervised release on June 4, 2021, after he pleaded guilty to one count of conspiracy to distribute child pornography. Wagner uploaded 84 videos and downloaded 40 videos depicting child pornography from the website. A forensic review of his electronic devices identified an additional 92 images and 22 videos depicting child pornography in his possession.
Darryl Miller
Miller was sentenced to 60 months in prison and five years of supervised release in the District of Kansas on Sept. 22, 2020, after he pleaded guilty to access with intent to view child pornography. Miller downloaded approximately 20 gigabytes of data from the website and had approximately 57 child pornography images on his devices.
Jason DeJournett
DeJournett was sentenced to 33 months in prison and a lifetime of supervised release on July 30, 2021, after he pleaded guilty to access with intent to view child pornography. DeJournett downloaded 113 videos of child pornography from the website.
Brian LaPrath
LaPrath was sentenced to 18 months in prison on June 19, 2019, after he pleaded guilty to laundering monetary instruments. LaPrath exchanged funds to obtain Bitcoin and used that Bitcoin to download child pornography from the website
Michael Ezeagbor
Ezeagbor was sentenced to time served and five years of supervised release on June 25, 2021, in the Western District of Texas after he pleaded guilty to one count of conspiracy to distribute child pornography. Ezeagbor uploaded ten videos and downloaded 42 videos depicting child pornography from the website. A subsequent forensic review of his electronic devices identified an additional 190 images and 14 videos depicting child pornography in his possession.
Additional investigations into those affiliated with Welcome To Video remain ongoing.
These cases were investigated by IRS Criminal Investigation (IRS-CI) and U.S. Immigration and Customs Enforcement (ICE)’s Homeland Security Investigations (HSI). The Korean National Police of the Republic of Korea, the National Crime Agency (NCA) of the United Kingdom and the German Federal Criminal Police (the Bundeskriminalamt), provided assistance and coordinated with their parallel investigations. The Department of Justice’s Office of International Affairs of the Criminal Division provided significant assistance.
These cases were prosecuted by Assistant U.S. Attorney (AUSA) Lindsay Suttenberg, former AUSA Zia M. Faruqui, and former AUSA Youli Lee, Paralegal Specialists Brian Rickers and Diane Brashears, Legal Assistant Jessica McCormick, and Records Examiner Chad Byron of the U.S. Attorney’s Office for the District of Columbia and Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section.
Additional assistance has been provided by Deputy Chief Keith Becker and Trial Attorney James E. Burke IV of the Criminal Division’s Child Exploitation and Obscenity Section, and former U.S. Attorney’s Office Paralegal Specialists Toni Anne Donato and Ty Eaton.
New York Man Indicted for Human SmugglingRead the Press Release
CONCORD – A Brooklyn, New York man was indicted in connection with smuggling unauthorized immigrants across the Canadian border, U.S. Attorney Jane E. Young announces.
Abraham Hernandez, 27, was indicted on three counts of bringing in and harboring certain aliens. Hernandez will appear in federal court in Concord at a later date.
According to the charging documents, on June 13, 2023, the Royal Canadian Mounted Police advised the U.S. Border Patrol that individuals with backpacks were walking southbound from Canada toward Halls Stream Road in Pittsburg, New Hampshire. Hernandez was later stopped by law enforcement in Pittsburg, New Hampshire while transporting nine unauthorized immigrants in a white Honda SUV.
The charge of bringing in and harboring certain aliens provides for a sentence of up to five years in prison, up to 3 years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Border Patrol led the investigation. Assistant U.S. Attorney Geoffrey Ward is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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New Orleans Man Pleads Guilty to Federal Firearms OffenseRead the Press Release
NEW ORLEANS, LOUISIANA – On July 6, 2023, TERRANCE RICHARDS, age 38, of New Orleans, pleaded guilty to possessing ammunition while being a convicted felon, announced U.S. Attorney Duane A. Evans.
According to court documents, on August 22, 2020, New Orleans Police Department (NOPD) officers were sent to the intersection of General Ogden and Olive Streets in New Orleans following a report of shots being fired. Through further investigation, NOPD and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) identified RICHARDS as one of the shooters. RICHARDS’s prior felony convictions for attempted distribution of cocaine (2010), possession of cocaine (2010), felon in possession of a firearm (2011), and distribution of cocaine (2012), prohibits his possession of a firearm.
RICHARDS faces a maximum term of imprisonment of ten (10) years, a fine of up to $250,000.00, and up to three (3) years of supervised release following any term of imprisonment. He also faces payment of a $100 mandatory special assessment fee. RICHARDS will be sentenced on October 26, 2023.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department. This case is being prosecuted by Assistant U.S. Attorney Mike Trummel of the Violent Crime Unit.
New Orleans Man Pleads Guilty for Distribution of Methamphetamine and Maintaining a Drug PremisesRead the Press Release
NEW ORLEANS, LOUISIANA – On July 7, 2023, RYAN NEGROTTO, age 43 of New Orleans, pled guilty in federal court to all counts with which he was charged in a superseding indictment, announced U.S. Attorney Duane A. Evans.
Count 1 charged NEGROTTO with conspiracy to distribute methamphetamine, in violation of 21 U.S.C §§ 841(a)(1), 841(b)(1)(A), and 846.
Count 2 charged NEGROTTO with distribution and possession with the intent to distribute methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(B), and 18 U.S.C § 2. Count 3 charged NEGROTTO with distribution and possession with the intent to distribute methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(A), and 18 U.S.C § 2. Count 4 charged NEGROTTO with distribution of methamphetamine, in violation of 21 U.S.C §§ 841(a)(1), 841(b)(1)(A), and 18 U.S.C § 2.
Count 5 and Count 7 charged NEGROTTO with possession of a firearm in furtherance of a drug trafficking crime, in violation of 18 U.S.C § 924(c)(1)(A)(i).
Count 6 charged NEGROTTO with possession with the intent to distribute methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(B).
Finally, Count 8 charged NEGROTTO with using or maintaining a drug premises in violation of 21 U.S.C § 856(a)(1) and 18 U.S.C § 2.
As to Counts 1, 3, 4, and 6, NEGROTTO faces a minimum imprisonment term of 10 years up to a maximum term of life, a fine of up to $10 million, and at least 5 years of supervised release.
As to Count 2, NEGROTTO faces a minimum imprisonment term of 5 years, up to a maximum of 40 years, a fine of up to $5 million, and at least 4 years of supervised release.
As to Counts 5 and 7, NEGROTTO faces a minimum, term of imprisonment of 5 years, up to a maximum term of life, a fine up to $250,000, and up to 5 years of supervised release.
Finally, as to Count 8, NEGROTTO faces a maximum term of imprisonment of 20 years, a fine up to $500,000, and up to 3 years of supervised release.
As to each charged count, NEGROTTO faces payment of a mandatory special assessment fee of $100.00.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the New Orleans Police Department, and the Louisiana State Police. Assistant United States Attorney Mike Trummel of the Violent Crime Unit is handling the prosecution.
Nebraska Man Sentenced for Being a Felon in Possession of a FirearmRead the Press Release
Acting United States Attorney Susan T. Lehr announced that Luis Lazo-Escobar, 32, of Nebraska, was sentenced on July 6, 2023, in federal court in Omaha, Nebraska, for being a felon in possession of a firearm and ammunition. United States District Judge Brian C. Buescher sentenced Lazo-Escobar to 60 months’ imprisonment and the forfeiture of $12,100.00 in U.S. currency. There is no parole in the federal system. After his release from prison, he will begin a 3-year term of supervised release.
On November 20, 2020, the Buffalo County Sheriff’s Office conducted a traffic stop on a 2012 Honda Civic with Luis Lazo-Escobar as the driver. In March 2021, Lexington Police conducted an interview with a subject who knew there was a gun and possibly methamphetamine inside of this vehicle. Law enforcement obtained a search warrant for the vehicle, which had been impounded and remained in police custody, and located the following contraband: a 9mm Taurus handgun, 150 rounds of ammunition, and $12,100 in United States currency. Lazo-Escobar is a convicted felon stemming from a possession of a controlled substance conviction in 2017.
This case was investigated by the Kearney Police Department.
National Grid Agrees to Pay $5.38 Million for Natural Resource DamagesRead the Press Release
National Grid has agreed to pay $5.38 million to federal and state natural resource trustees to resolve claims for natural resource damages from releases of hazardous chemicals connected to the former Gloucester Gas Light Company located in Gloucester, Massachusetts.
Between 1854 and 1952, the former Gloucester Gas Light Company operated a manufactured gas plant along the Gloucester waterfront. The plant used industrial processes to produce manufactured gas from coal and oil. Manufactured gas plants, which were common before the development of natural gas pipelines, often yielded by-products such as tars, sludges, and oils. Production at the gas plant ended in the early 1950s, and ownership changed to the North Shore Gas Company, a predecessor of the current owner, National Grid. Hazardous chemicals released by the former manufactured gas plant contaminated soils and groundwater, as well as sediment in the adjacent Gloucester Harbor. Those contaminants resulted in injuries to natural resources in Gloucester Harbor.
“This settlement will provide funding for federal and state agencies to undertake critical habitat restoration work in the coastal areas in the vicinity of the former impacted by Gloucester Gas Light Company’s plant,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division.
“Coastal wetlands provide vital habitat for many species of fish and wildlife as well as protect neighboring communities from storm surges and rising sea levels from climate change,” said Acting Regional Director Kyla Hastie of the Fish and Wildlife Service Northeast Region. “The settlement will allow the trustees to fund restoration projects in Coastal Massachusetts to make communities safer and improve wildlife habitat for impacted species.”
“This settlement is an important step toward addressing years of pollution in Gloucester Harbor that injured the community's natural resources,” said Director for Habitat Conservation for Fisheries Carrie Selberg Robinson of the National Oceanic and Atmospheric Administration (NOAA). “We look forward to working with the other trustees to restore habitat that will support Gloucester well into the future.”
“Gloucester Harbor provides vital maritime, recreational, and ecological services to the public. This settlement will ensure that the public is compensated for the natural resource injuries that resulted from the decades-long release of hazardous substances into the Harbor,” said Massachusetts Attorney General Andrea Joy Campbell. “We thank our state and federal partners for working with us to achieve this important outcome.”
“This settlement will meaningfully address decades of environmental harm and restore wetlands and other aquatic resources. The Commonwealth and its trustee partners will ensure that stakeholders and officials in Gloucester will be active participants in the process to utilize these funds for restorative environmental projects,” said Secretary Rebecca Tepper of the Massachusetts Executive Office of Energy and Environmental Affairs. “We appreciate the work of the Department of Justice and Attorney General Campbell in bringing about this resolution for the Gloucester Harbor.”
Under the Comprehensive Environmental Response, Compensation, and Liability Act, parties that have disposed of hazardous substances at a site are liable for damages, injury to, destruction of, or loss of natural resources. The natural resource trustees for the site are the U.S. Department of the Interior, through the U.S. Fish and Wildlife Service, the NOAA, and the Secretary of the Massachusetts Executive Office of Energy and Environmental Affairs. Massachusetts state law affords the Commonwealth a similar right to recover damages for injuries to natural resources. The trustees determined that the hazardous substances released from the former Gloucester Gas Light Company’s manufactured gas plant contaminated waters and sediments in Gloucester Harbor, resulting in injury to these natural resources that serve as habitats for fish and wildlife species. National Grid is remediating those contaminants under Massachusetts state law.
In settlement of the trustees’ natural resource damages claims, National Grid has agreed to pay $80,000 to reimburse federal and state trustees for damage assessment costs and $5.3 million to compensate the public for natural resource injuries to Gloucester Harbor, which the trustees, working with the public, will use to implement one or more natural resource restoration projects. The defendant previously paid about $475,000 to reimburse federal and state trustees for prior damage assessment costs incurred at the site.
The Justice Department is seeking public comments on the settlement for a period of 30 days from publication of a notice of the settlement, which will appear in the Federal Register. View a copy of the settlement here. For more information about the Former Gloucester Gas Light Company case, see www.darrp.noaa.gov/hazardous-waste/former-gloucester-gas-light-company.
Muskogee Resident Pleads Guilty to Possession of Child PornographyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Troy Richard Jenkins, age 32, of Muskogee, Oklahoma, entered a guilty plea to one count of possession of child pornography, punishable by up to 20 years in prison.
During the plea hearing held June 27, 2023, Jenkins admitted to knowingly possessing and accessing with the intent to view more than 600 visual depictions involving the sexual exploitation of minors. Some of the pornographic images depicted children under the age of 12. Jenkins also admitted to distributing child pornography to others.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the tab “Resources.”
The charges arose from an investigation by Homeland Security Investigations.
The Honorable Gerald L. Jackson, United States Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. At the conclusion of the plea hearing, Jenkins was remanded to the custody of the U.S. Marshal pending sentencing.
Assistant United States Attorney Anthony C. Marek represented the United States.
Mexican National Sentenced to More than Seven Years for Conspiring to Distribute Drugs and Being in the Country IllegallyRead the Press Release
Acting United States Attorney Susan T. Lehr announced that Servando Urias, 48, of Mexico, was sentenced on July 6, 2023, to 90 months’ imprisonment by Senior United States District Judge John M. Gerrard, after conviction by a jury in March 2023 of Conspiracy to Distribute Cocaine and Heroin. Urias had previously pleaded guilty to being in the country illegally. He was also ordered to serve a four-year term of supervised release as there is no parole in the federal system.
The evidence presented at trial revealed that on August 28, 2019, a codefendant driving a Dodge pickup was stopped by the Lancaster County Sheriff’s Office after committing traffic infractions while driving on Interstate 80 in Lancaster County, Nebraska. Simultaneously, a black Jeep occupied by two other codefendants and Urias was stopped by another Lancaster County Deputy as the Jeep was believed to be travelling with the Dodge pickup.
During the course of the traffic stops, deputies became suspicious that parties in both vehicles were involved in criminal activity. Deputies received permission to search both vehicles and discovered three kilos of cocaine and one kilo of heroin in the rear seat of the Dodge pickup. All were arrested after it was confirmed that the three individuals in the Jeep were in fact traveling with the Dodge pickup containing the drugs.
The three codefendants had previously pleaded guilty to the Conspiracy charge and testified at trial about their and Urias’s involvement in the transportation of the drugs. Two of the three have been sentenced, one to 9 months’ imprisonment, the other to 28 months’ imprisonment. Another codefendant is pending sentencing.
This case was the result of an investigation by the Lancaster County Sheriff’s Office and the Department of Homeland Security Investigations.
McAlester Resident Sentenced for Sexual Abuse in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Dustin Dewayne Bristow, age 37, of McAlester, Oklahoma, was sentenced to 240 months in prison for sexual abuse of a minor.
On February 14, 2022, Bristow pleaded guilty in federal district court to one count of Sexual Abuse in Indian Country. At the plea hearing, Bristow admitted to sexually abusing a child under the age of 16 between 2007 and 2008. The crime occurred in Pittsburg Country, within the boundaries of the Choctaw Nation Reservation and the Eastern District of Oklahoma.
The Honorable Jodi W. Dishman, U.S. District Judge in the United States District Court for the Western District of Oklahoma, sitting by appointment, presided over the hearings in Muskogee. Bristow will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Edith A. Singer represented the United States.
Man Sentenced to 46 Months for Using Stolen Identities of UCSD Students to Commit Bank Fraud and Pandemic-related Unemployment FraudRead the Press Release
Nehemiah Joel Weaver—who used the stolen identities of UCSD undergraduate students to commit bank and Covid-related frauds and then threatened someone he believed was working to expose his crimes—was sentenced in federal court to 46 months in prison and ordered to pay $225,392 in restitution to victims.
Weaver pleaded guilty in September 2022 to bank fraud, mail fraud, wire fraud and aggravated identity theft charges. He admitted to using the identities of at least 15 people, a group that included UCSD students, his former supervisor, and a former girlfriend. Weaver’s co-defendant, Mia Nikole Bell, admitted to stealing the student identities in her capacity as a UCSD employee and to providing them to Weaver. She was sentenced in December 2022 to four months in custody and was ordered to pay $16,480 in restitution.
Weaver further admitted in his plea agreement that he initially used some of the identities to open accounts and take out loans in the victims’ names at a credit union. Months later, he used the identities to obtain over $200,000 in Covid-related unemployment benefit payments from California and Arizona.
When Weaver learned of law enforcement’s investigation into his fraud, he sent threatening text messages to a perceived cooperating witness—including one in which he claimed to have “[p]aid good money” to have them killed.
Weaver also sent these text messages to the supposed cooperating witness: “NO MERCY!” “How long do you think you will be safe for? You are just a sitting duck[.]” “Lol so dead you don’t even know it yet[.]” “Can’t wait to see the look on your face. Paid good money to see it.”
In imposing the sentence, U.S. District Judge Gonzalo P. Curiel noted Weaver was on probation for felony identity theft convictions when he committed these new crimes. The judge noted the harm, anger, and fear that identity theft causes victims and observed that Weaver defrauded government agencies that exist to help people. Judge Curiel ordered the forfeiture of cash and the luxury vehicle that investigators seized from Weaver.
“Mr. Weaver used stolen identities to defraud critical state agencies that sought to help Americans during the early stages of the COVID-19 pandemic,” said United States Attorney Randy S. Grossman. “This office will continue to work with our federal, state, and local agency partners in the investigation of such crimes and the pursuit of justice for victims.”
Grossman thanked the prosecution team, the United States Secret Service and the San Diego Police Department for their excellent work on this case.
“Today’s sentencing is an example of our dedication and commitment to protecting the American financial system and targeting those who, by fraudulent means, seek to exploit and profit from government assistance programs,” said Special Agent in Charge Jason Reynolds, San Diego Field Office, U.S. Secret Service. “We, along with our law enforcement partners, are committed to pursuing justice and holding criminals accountable for their actions.”
As part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020, Congress provided new unemployment benefits for those affected by the COVID-19 Pandemic who would not otherwise qualify for unemployment insurance. The EDD administers unemployment insurance benefits in California, and DES does the same in Arizona.
If you think you are a victim of COVID-19 fraud, immediately report it the FBI (visit ic3.gov, tips.fbi.gov, or call 1-800-CALL-FBI or the San Diego FBI at 858-320-1800. In addition, the public is urged to report suspected fraud schemes related to COVID-19 by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or by e-mailing the NCDF at [email protected].
DEFENDANTS Case Number 21-CR-2722-GPC
Nehemiah Joel Weaver Age: 37 San Diego, CA
Mia Nikole Bell Age: 32 Houston, TX
SUMMARY OF CHARGES
Bank Fraud – Title 18, U.S.C., Section 1344(1)
Maximum penalty: Thirty years in prison; $1 million fine or twice the pecuniary gain/loss
Mail Fraud – Title 18, U.S.C., Section 1341
Maximum penalty: Twenty years in prison; $250,000 fine or twice the pecuniary gain/loss
Wire Fraud – Title 18, U.S.C., Section 1343
Maximum penalty: Twenty years in prison; $250,000 fine or twice the pecuniary gain/loss
Aggravated Identity Theft – Title 18, U.S.C., Section 1028A
Mandatory minimum two years in prison
AGENCIES
United States Secret Service
San Diego Police Department
Man on Parole After Murder Conviction Sentenced to Prison for Identity Theft and Making False Statements During the Purchase of a FirearmRead the Press Release
PORTLAND, Ore.—A felon who fled his parole on a murder conviction and moved to Oregon was sentenced to federal prison today for using stolen identities to apply for multiple Oregon driver’s licenses and making false statements while attempting to purchase multiple firearms.
Johnny Lee Allen, 45, was sentenced to 51 months in federal prison and three years’ supervised release.
According to court documents, in 1999, Allen was convicted of second-degree murder in Douglas County, Nebraska and sentenced to 35-50 years in prison. Shortly after he was released from Nebraska state custody in April 2019, he cut off his electronic monitoring bracelet and fled the state. Four months later, he used a stolen identity to obtain a Wyoming identification card. In late August 2019, he showed up at a DMV office in Gresham, Oregon and applied for and obtained an Oregon identification card using the same stolen identity. Two months later, in October 2019, Allen used the stolen identity a third time to apply for an Oregon driver’s license.
During the same time period, Allen used fraudulently-obtained identity documents for multiple firearm transactions. On November 1, 2019, he attempted to purchase a semi-automatic rifle, but cancelled the transaction when the background check was delayed. The next day, a woman Allen was dating purchased a .40 caliber pistol. Over the next nine months, Allen loaned the pistol to three different pawn shops in exchange for cash. In November 2020, Allen attempted to purchase a second firearm, but again cancelled the transaction rather than wait for a background check to be completed.
In July 2022, Allen used his brother’s identity to apply for a second Oregon driver’s license. His second attempt at an Oregon license failed when he used the same address he had used to obtain the first and his photo was flagged for potential fraud in the state’s DMV system.
On July 29, 2022, Allen was charged by criminal complaint with Social Security fraud and aggravated identity theft. On December 20, 2022, he was arrested in Oregon City, Oregon. During his arrest, law enforcement located and seized four different fraudulent pieces of identification on Allen’s person. All were obtained using the personal information of Allen’s first identity theft victim.
On March 22, 2023, Allen pleaded guilty to a two-count criminal information charging him with aggravated identity theft and making a false statement during the purchase of a firearm.
This case was investigated by the Social Security Administration Office of Inspector General (SSA-OIG) with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). It was prosecuted by Rachel Sowray, Special Assistant U.S. Attorney for the District of Oregon.
Loma Linda Woman Sentenced to over 5 Years in Prison for Commodities Scheme that Defrauded Victims Out of over $2.6 MillionRead the Press Release
LOS ANGELES – A San Bernardino County woman was sentenced today to 63 months in federal prison for her involvement in an investment fraud scheme that caused more than $2.6 million in losses to more than two dozen victims.
Sharief Deona McDowell, 58, of Loma Linda, was sentenced by United States District Judge André Birotte Jr., who also ordered her to pay $2,446,093 in restitution.
McDowell pleaded guilty in December 2022 to one count of wire fraud.
From October 2018 to March 2022, McDowell defrauded at least 28 investors by falsely representing that she would invest their money in commodity futures and options contracts. As part of the scheme, McDowell started a purported investment company called Presidential Investments Inc. LLC. McDowell operated and controlled this company and directed others to open bank accounts in the name of Presidential Investments.
In fact, McDowell did not trade with the investors’ money and instead misappropriated the funds for her personal use. McDowell also provided investors with fabricated trade confirmations and account statements to falsely indicate that their investments were generating returns.
For example, from October 2020 to January 2021, McDowell caused one victim to wire $250,000 from the victim’s bank account to a McDowell-controlled account after McDowell led the victim to believe she would invest the victim’s money through Presidential Investments.
In addition, McDowell used money provided by new investors to repay earlier investors – a tactic often used to conceal and prolong Ponzi and other investment fraud schemes.
In total, McDowell admitted in her plea agreement to causing losses to victims of approximately $2,678,768. The victims included people inside the United States as well as in Canada and Poland.
McDowell committed this fraud in violation of a prior judicial order as the result of a 2011 lawsuit filed against her and 20/20 Trading Company, a precious metals trading business that employed her as a saleswoman, by the Commodities Futures Trading Commission.
“From the very formation of her company, Presidential Investments, [McDowell] intended to use it to commit fraud, after having been prohibited by a court order from doing precisely that,” prosecutors argued in a sentencing memorandum. “Aware of the injunction, [McDowell] took steps to conceal her conduct by registering the business and opening bank accounts in the names of other people.”
The FBI investigated this matter.
Assistant United States Attorney Cory L. Burleson of the Riverside Branch Office and Trial Attorney Lauren Archer of the Justice Department Criminal Division’s Fraud Section prosecuted this case