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6 July 2023
Two Additional Defendants in North Carolina Plead Guilty to National COVID-19 Fraud SchemeRead the Press Release
RALEIGH, N.C. – Lenille Mitia Woodard, 36; and Irene Nicole Edwards, 35, each pleaded guilty today to conspiracy to commit wire fraud for fraudulently obtaining a Paycheck Protection Act (“PPP”) COVID-19 loans. The defendants sought relief on behalf of companies they owned purportedly being engaged in event promotion and a beauty salon. They all face up to 20 years in prison. Fifteen defendants, including Woodard and Edwards, have pled guilty in this scheme in the Eastern District of North Carolina.
“These defendants, along with their co-conspirators, chose to steal from a taxpayer funded program designed to help small businesses stay afloat in the face of a global and devastating pandemic,” said U.S. Attorney Michael Easley. “My office is continuing to investigate and prosecute those who used this lifeline to line their own pockets.”
According to the charged criminal information, the defendant conspired with Edward Whitaker, Schunda Coleman, and others to obtain a fraudulent PPP loan. Whitaker and Coleman pled guilty on January 19, 2023 for their role in operating a nation-wide scheme to help people across the country commit millions of dollars of PPP fraud.
According to charging documents and information summarized in court, Whitaker and Coleman created fraudulent supporting documents and applications for the PPP loans which they provided to the defendants in exchange for 25% of the total loan proceeds. The fraudulent applications falsified the number of employees and gross wages being paid prior to the COVID pandemic, in order to help qualify for the PPP loans. Following the disbursement of the PPP loans, Whitaker instructed each defendant as to how to make it appear that the PPP loans were being paid out to employees, when in reality the money was transferred back to the defendants. The fraudulent payroll records were then submitted to the Small Business Administration (SBA) to obtain 100% loan forgiveness.
Late last year, Quentin Jackson pled guilty in the same conspiracy which included the recruitment of numerous individuals in the Eastern District of North Carolina to use Whitaker and Coleman to obtain fraudulent PPP funds.
“The Paycheck Protection Program was designed to help small businesses facing financial difficulties during the COVID-19 pandemic,” said Donald “Trey” Eakins, Internal Revenue Service (IRS) Criminal Investigation Special Agent in Charge in the Charlotte Field Office. “Through our partnership with the U.S. Attorney’s Office and our federal law enforcement partners, IRS Criminal Investigation Special Agents will continue to aggressively pursue individuals who try to exploit federal relief programs for their personal gain.”
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was designed to provide emergency financial assistance to the millions of Americans who were economically suffering from the COVID-19 pandemic. The CARES Act and additional appropriations authorized up to $649 billion in forgivable loans to small businesses through the Paycheck Protection Program (PPP). Financial institutions issued the PPP loans, which were guaranteed by the SBA.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after United States Magistrate Judge Robert T. Numbers II accepted the pleas. Sentencings will occur before United States District Judge James C. Dever III later this year. Internal Revenue Service (IRS) Criminal Investigation is leading the investigation, and Assistant U.S. Attorney David G. Beraka is prosecuting the cases.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER.
Three East Orange Gang Members Sentenced to Prison for Gang-Related MurdersRead the Press Release
NEWARK, N.J. – Three members and associates of a drug trafficking enterprise who were also members of a neighborhood street gang in Essex County, New Jersey, were sentenced today to prison for their respective roles in multiple gang-related murders, including the murder of a federal informant, U.S. Attorney Philip R. Sellinger announced today.
Thomas Zimmerman, 28, was sentenced to 37 years in prison, Tyquan Daniels, 27, was sentenced to 35 years in prison, and Ali Hill, 30, was sentenced to 25 years in prison. All of the defendants were also sentenced to five years of supervised release. All of the defendants are East Orange residents, and all were sentenced by U.S. District Judge John Michael Vazquez in Newark federal court.
According to documents filed in this case and statements made in court:
In February, 2018, the leader of a Newark, New Jersey-based drug trafficking enterprise operating in East Orange, Newark, New York City, Maryland and California, among other states, found out that one of his conspirators in the drug enterprise was cooperating with federal law enforcement by providing information against the drug enterprise. The gang leader ordered members of the Brick City Brims Bloods (“BCB”) in East Orange, of which all three defendants were active members, to kill the informant. On February 3, 2018, outside the informant’s residence in Bloomfield, New Jersey, Zimmerman and other gang members shot and killed an innocent bystander, believing the bystander was the informant. Hill conspired with Zimmerman and later Daniels in the plot to kill the informant.
Realizing they killed the wrong person, the defendants planned another attempt to murder the informant. On March 12, 2018, in Bloomfield, Zimmerman and other BCB members approached the informant and fired multiple shots at him at close range, killing him.
Daniels aided the murder conspiracy by helping to hide the murder weapon after the fact. Daniels was also sentenced for the separate murder of a rival gang member committed in furtherance of the activities of the BCB, specifically to protect the BCB’s drug territory. Daniels shot and killed the rival gang member in Orange, New Jersey on May 13, 2018.
Hill was sentenced after pleading guilty to racketeering conspiracy for his role in the planning of the murder of the informant in March 2018.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of special agent in charge James E. Dennehy in Newark; the Newark Police Department, under the direction of Public Safety Director Fritz G. Fragé; the Essex County Prosecutors Office; the Union County Prosecutor’s Office, East Orange PD; Montclair PD, and the Maryland Department of Public Safety and Correctional Services, Intelligence and Investigative Division, under the direction of Secretary Robert Green with the investigation leading to sentencings.
The government is represented by Senior Trial Counsel Robert Frazer of the U.S. Attorney’s Office Organized Crime/Gang Unit in Newark.
Theft of Federal Government Funds Results in Federal Prison Sentence for Oakdale WomanRead the Press Release
ALEXANDRIA, La. – Bobbie J. Blake Hampton, 62, of Oakdale, Louisiana, was sentenced today for theft of government funds, announced United States Attorney Brandon B. Brown. United States District Judge Dee D. Drell sentenced Hampton to 8 months in prison, followed by 3 years of supervised release, for theft of government money. Hampton was also ordered to pay restitution in the amount of $65,259.
Hampton’s brother W.R.C., who was an SSID program participant, died on September 20, 2013. The SSA later determined in 2020 that those SSID funds were still being distributed to a bank account in the name of W.R.C. An investigation by the SSA revealed that following his death, Hampton fraudulently converted all of the funds received from SSA into the bank account of W.R.C. from October 2013 through November 2020 for her own personal use. Hampton used these funds at local businesses in the Alexandria area when she knew that she was not entitled to receive those funds.
In addition, a United States Treasury COVID Economic Impact Relief Payment of $1,200 was deposited into the account of W.R.C. and was also fraudulently converted by Hampton for her own personal use. Hampton pleaded guilty to three counts of theft of government money on February 28, 2023.
This case was investigated by the Social Security Administration, Office of Inspector General, and prosecuted by Assistant U.S. Attorney LaDonte A. Murphy.
If you would like to report any type of Social Security Administration fraud, you can do so by accessing their website at: https://oig.ssa.gov/report or call 1-800-269-0271.
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Somerset County Man Charged with Drug Distribution Resulting in DeathRead the Press Release
NEWARK, N.J. – A Somerset County man appeared in federal court yesterday on charges including drug distribution that resulted in a death, U.S. Attorney Philip Sellinger announced today.
Thomas Kane Miller, 38, of Somerset, New Jersey, is charged by federal complaint with one count of possession with the intent to distribute fentanyl and heroin and one count of distribution of fentanyl and heroin that resulted in a death. Miller had an initial appearance before the Honorable Jessica S. Allen, United States Magistrate Judge, in Newark federal court and was detained.
According to documents filed in this case:
In October 2022, Miller distributed a mixture of fentanyl and heroin to an individual who died as a result of using the substance. Law enforcement located the deceased victim at a residence in Plainfield, New Jersey. Inside the victim’s residence were two wax folds containing fentanyl and heroin bearing a unique stamp, which law enforcement linked to Miller. Shortly before the victim’s death, the victim and Miller were communicating about arranging to meet.
Miller is also charged with possession with intent to distribute fentanyl and heroin arising from an incident ten days prior where he was found in possession of multiple wax folds of heroin and fentanyl bearing the same unique stamp.
The count of drug distribution resulting in death carries a maximum potential penalty of life imprisonment, a mandatory minimum penalty of 20 years’ imprisonment, and a fine of $1 million. The count of possession with intent to distribute fentanyl and heroin carries a maximum punishment of 20 years in prison and a fine of $1 million.
U.S. Attorney Sellinger credited special agents of the New York DEA Strike Force, under the direction of Special Agent in Charge Frank A. Tarentino, III, and members of the Somerset County Prosecutor’s Office, under the direction of Prosecutor John P. McDonald, and members of the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Yolanda Ciccone, with the investigation, leading to the charges.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The arrest was the result of an investigation by the New York Strike Force, a crime-fighting unit comprising federal, state and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force and the New York/New Jersey High Intensity Drug Trafficking Area.
The government is represented by Assistant U.S. Attorney Jenny Chung of the Office’s OCDETF/Narcotics Unit, in Newark.
The charges and allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
miller.complaint.pdfShipping company fined $1.5M for oil record book offenseRead the Press Release
HOUSTON – Clipper Shipping A.S. has been convicted of violating the Act to Prevent Pollution from Ships.
Clipper admitted that oily bilge water was discharged from the Motor Tanker Clipper Saturn. As part of the plea, they acknowledged the discharges were omitted from the Oil Record Book.
Immediately after the plea today, U.S. District Judge Alfred Bennett ordered the company to pay a $1.5 million fine.
On Sept. 27 and Oct. 1, 2021, the Clipper Saturn was anchored near Lome, Togo. The chief engineer at the time directed oily bilge water to be transferred into the vessel’s gray water tank and then discharged directly overboard under the cover of darkness. In order to accomplish the discharge, a section of piping had to be removed and a hose installed onto the eductor system. This arrangement was used to discharge the gray water tank directly overboard. Personnel then re-installed and repainted the piping in the area in order to make it appear that none had been removed. Authorities learned about the discharges during an inspection of the vessel in Houston Oct. 28, 2021.
“Not only did this ship pollute the water, but they tried to cover it up,” said U.S. Attorney Alamdar S. Hamdani of the Southern District of Texas (SDTX). “To put it simply, Clipper Saturn wanted to get rid of dirty oily water from their ship. Instead of filtering out the hazardous elements, as required, they decided to cut costs and just release the whole contaminated mess into the sea. Unfortunately for them, they got caught when they docked in Houston. The fine imposed today tells them that there is a bigger cost to endangering our citizens and the environment in which they live, and that the Southern District of Texas will seek to hold those who harm oceans and waterways accountable.”
“We take seriously the crimes of illegally discharging oily bilge water at sea and falsifying records to obstruct the United States’ ability to investigate those discharges,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The U.S. Coast Guard must be able to rely on truthful records on board ships, and the Department of Justice will continue to ensure polluters are held fully accountable.”
“The Coast Guard is committed to protecting our oceans and waterways from those who deliberately jeopardize the well-being and safety of the environment and the public,” said Coast Guard Capt. Keith Donohue, commander, Sector Houston-Galveston. “The intentional pollution of U.S. waters is a serious violation that we simply will not tolerate. We will continue to work with the Department of Justice and our federal, state and local partners to hold accountable those who choose to endanger our natural resources.”
As part of the plea agreement, Clipper Shipping A.S. will implement an enhanced environmental compliance plan (ECP) on nine vessels. The ECP requires independent auditing and monitoring of the vessels as well as additional conditions to enhance the pollution prevention systems.
This U.S. Coast Guard – Houston Sector and U.S. Coast Guard Investigative Service conducted the investigation.
Assistant U.S. Attorney Steven Schammel from the SDTX and Senior Trial Attorney Kenneth E. Nelson of the Environmental Crimes Section of the Department of Justice prosecuted the case.
Shipping Company Fined $1.5 Million for Oil Record Book OffenseRead the Press Release
Clipper Shipping A.S. was convicted of violating the Act to Prevent Pollution from Ships and sentenced to pay a fine of $1.5 million. Clipper admitted that oily bilge water was discharged from the Motor Tanker (M/T) Clipper Saturn and the discharges were omitted from the Oil Record Book.
On Sept. 27 and Oct. 1, 2021, while the M/T Clipper Saturn was anchored near Lome, Togo, the then-Chief Engineer directed that oily bilge water be transferred into the vessel’s gray water tank and then discharged directly overboard under the cover of darkness. In order to accomplish the discharge, the then-Chief Engineer ordered that a section of piping be removed and a hose installed onto the eductor system. This arrangement was used to discharge the gray water tank directly overboard. Personnel then re-installed and repainted the piping in the area in order to appear that none had been removed. During a Coast Guard inspection of the vessel in Houston, Texas, on Oct. 28, 2021, authorities learned about the discharges.
“We take seriously the crimes of illegally discharging oily bilge water at sea and falsifying records to obstruct the United States’ ability to investigate those discharges,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The U.S. Coast Guard must be able to rely on truthful records on board ships and the Department of Justice will continue to ensure polluters are held fully accountable.”
“Not only did this ship pollute waterways, but they tried to cover it up,” said U.S. Attorney Alamdar S. Hamdani of the Southern District of Texas (SDTX). “To put it simply, Clipper Saturn wanted to get rid of dirty oily water from their ship. Instead of filtering out the hazardous elements, as required, they decided to cut costs and just release the whole contaminated mess into the sea. Unfortunately for them, they got caught when they docked in Houston. The fine imposed today tells them that there is a bigger cost to endangering our citizens and the environment in which they live, and that the SDTX will seek to hold those who harm oceans and waterways accountable.”
“The Coast Guard is committed to protecting our oceans and waterways from those who deliberately jeopardize the well-being and safety of the environment and the public,” said Coast Guard Capt. Keith Donohue, Commander, Sector Houston-Galveston. “The intentional pollution of U.S. waters is a serious violation that we simply will not tolerate. We will continue to work with the Department of Justice and our federal, state, and local partners to hold accountable those who choose to endanger our natural resources.”
As part of the plea agreement, Clipper Shipping A.S. will implement an enhanced Environmental Compliance Plan (ECP) on nine vessels. The ECP requires independent auditing and monitoring of the vessels as well as imposing requirements to enhance the pollution prevention systems on the vessels.
This case was investigated by the U.S. Coast Guard Sector Houston-Galveston, and the U.S. Coast Guard Investigative Service.
Assistant U.S. Attorney Steven Schammal for the Southern District of Texas and Senior Trial Attorney Kenneth E. Nelson of the Environment and Natural Resources Division’s Environmental Crimes Section are prosecuting the case.
Rochester Man Sentenced to 9 Years in Federal Prison for Conspiring to Distribute Fentanyl and MethamphetamineRead the Press Release
CONCORD – A Rochester man was sentenced today for his role in a conspiracy to distribute fentanyl and methamphetamine in New Hampshire, U.S. Attorney Jane E. Young announces.
Bradford Sargent, 42, was sentenced by U.S. District Court Judge Joseph N. Laplante to 108 months in prison and 3 years of supervised release. On March 28, 2023, Sargent pleaded guilty to conspiracy to distribute controlled substances. Sargent’s co-defendant, Jennelle Brown, was sentenced to 5 years in federal prison on May 12, 2023.
“The defendant and his co-defendant were significant fentanyl and methamphetamine dealers in the Seacoast,” said U.S. Attorney Jane E. Young. “Law enforcement in the Granite State will continue their concerted efforts to disrupt conspiracies to distribute vast quantities of these dangerous drugs.”
“Today’s sentence holds Bradford Sargent accountable for trafficking significant amounts of deadly fentanyl and methamphetamine in New Hampshire, and perpetuating the destructive cycle of drug addiction,” said Christopher DiMenna, Acting Special Agent in Charge of the FBI Boston Division. “The FBI will continue to work with our law enforcement partners to identify and disrupt other large-scale drug traffickers like him who are intent on flooding our communities with their poison.”
Sargent, and his co-defendant Jennelle Brown, sold drugs multiple times from their hotel room in Portsmouth. When law enforcement searched their room, they uncovered large quantities of money, drugs, and drug ledgers. Searches of two vehicles, storage units, and safety deposit boxes uncovered more currency and drugs. In total, law enforcement seized over $130,000, approximately 1.3 kilograms of fentanyl, 650 grams of methamphetamine, and cocaine.
The Federal Bureau of Investigation and the Rockingham County Sheriff’s Office led the investigation. Valuable assistance was provided by the Drug Enforcement Administration and Strafford County Sheriff’s Office. Assistant U.S. Attorneys Alexander S. Chen and Jarad E. Hodes prosecuted the case.
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Rensselaer Man Sentenced for Unemployment Insurance FraudRead the Press Release
ALBANY, NEW YORK – Taquan Parker, age 26, of Rensselaer, New York, was sentenced today to 13 months in prison for engaging in a fraudulent scheme to obtain more than $60,000 in unemployment insurance benefits under the names of two other people, including benefits funded by the federal government in response to the COVID-19 pandemic.
The announcement was made by United States Attorney Carla B. Freedman; Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); New York State Inspector General Lucy Lang; Jonathan Mellone, Special Agent in Charge, Northeast Region, United States Department of Labor, Office of Inspector General (USDOL-OIG); and Ketty Larco-Ward, Inspector in Charge of the Boston Division of the United States Postal Inspection Service (USPIS).
As part of his previously entered guilty plea to conspiracy and mail fraud charges, Parker admitted that he provided Kahleke Taylor, a/k/a “Flex,” with the personal identifying information of two other people, which Taylor used to file false claims online with the New York State Department of Labor (NYSDOL). Parker further admitted that as a result of the fraudulent applications submitted by Taylor, the NYSDOL paid out $60,132 in unemployment insurance benefits.
United States District Judge Mae A. D’Agostino also imposed a 3-year term of supervised release, to begin after Parker is released from prison, and ordered him to pay $60,132 in restitution to the State of New York.
This case was investigated by HSI, the New York State Inspector General’s Office, USDOL-OIG, and USPIS, with assistance from the NYSDOL Office of Special Investigations and the Schenectady County Department of Social Services. Assistant U.S. Attorneys Joshua R. Rosenthal and Joseph S. Hartunian prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, 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.
Raeford Woman Pleads Guilty to Defrauding Insurance Company of More Than $4.5 MillionRead the Press Release
GREENSBORO, NC – Sandra J. Hairston, United States Attorney for the Middle District of North Carolina (MDNC), announced today that KRIS WILLIAMS-FALCON, of Raeford, pleaded guilty to defrauding a victim insurance company out of over $4.5 million.
According to publicly filed court documents, WILLIAMS-FALCON was a Certified Alcohol and Drug Counselor (CADC) in North Carolina. In April 2021, WILLIAMS-FALCON’s CADC license was revoked by the licensing board, and she did not hold any other licenses to provide treatment or counseling. Between April 2021 and January 2023, WILLIAMS-FALCON submitted millions of dollars in claims to the victim insurance company for services that she either did not provide or was not licensed to provide. Among other fraudulent claims, WILLIAMS-FALCON submitted claims for services that she alleged to have provided to herself and family members.
As a result of WILLIAMS-FALCON’s claim submissions, the victim company approved and paid out approximately $4.7 million in reimbursements of which WILLIAMS-FALCON received $4,532,119.
During the course of this investigation, law enforcement traced proceeds of the scheme and seized a 2022 Dodge Charger, a 2022 Land Rover Range Rover Evoque, and a total of approximately $492,000 from bank accounts controlled by the defendant. Administrative forfeiture is pending as to these items. In addition, civil forfeiture is pending against two parcels of real property in Mecklenburg County purchased with a total of approximately $1.5 million in proceeds from the scheme. WILLIAMS-FALCON has not opposed any of the forfeiture actions.
Sentencing is scheduled to take place on November 14, 2023, at 2:30 p.m. in Winston-Salem, North Carolina, courtroom number 2, before United States District Court Judge Thomas D. Schroeder. At sentencing, WILLIAMS-FALCON faces a maximum sentence of ten years in prison, a period of supervised release of up to three years, and monetary penalties.
The case is being investigated by the Federal Bureau of Investigation and the North Carolina Department of Insurance and prosecuted by Assistant United States Attorney Ashley Waid.
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Prohibited Person Indicted in Connection with Firearm Recovered During a Homicide Investigation in FranklinRead the Press Release
CONCORD – Justin Gebo was indicted in connection with his possession of firearm as a prohibited person, U.S. Attorney Jane E. Young announces.
Gebo, 28, was charged with three counts of being a prohibited person in possession of a firearm, including (1) being in possession of a firearm while under indictment; (2) being a felon in possession of a firearm; and (3) being a user of illegal drugs in possession of a firearm.
According to the charging documents, on or about January 1, 2023, Gebo was in receipt of a Ceska Zrojovka (“CZ”) model Scorpion EVO 3, S2, 9x19mm short-barreled rifle, with an attached armbrace, while he was under felony indictment for a crime punishable by imprisonment for a term exceeding one year. That firearm was later recovered during a homicide investigation on June 3, 2023 in Franklin, New Hampshire. In addition, on or about February 3, 2023, Gebo was in possession of a 17 Design and Manufacturing, model 17DM-15, multicaliber rifle, after he had been convicted of a crime punishable by imprisonment for a term exceeding one year and while he was an unlawful user of any controlled substance.
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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Owner and Operator of Residence Inn by Marriott Baton Rouge Towne Center Cedar Lodge Agrees to Civil Settlement Under Title III of the Americans with Disabilities ActRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that the United States has finalized a settlement agreement with IM Baton Rouge OPCO, LLC, owner and manager of the Residence Inn by Marriott Baton Rouge Towne Center Cedar Lodge (the “Marriott Towne Center”), to resolve civil claims under Title III of the Americans with Disabilities Act (ADA).
As specified in the settlement agreement, the United States alleges that Marriott Towne Center failed to maintain its facilities in accordance with applicable standards for accessible design, which are meant to ensure that public accommodations are readily accessible to and usable by individuals with disabilities, including individuals who use wheelchairs, to the maximum extent feasible. Marriott Towne Center has agreed to make specified remedial modifications to its parking, exterior routes, public restrooms, and designated accessible guest rooms, and to provide certifications to the United States of its remedial efforts.
The United States initiated its investigation of Marriott Towne Center in response to a complaint from an individual alleging the lack of accessibility in their designated accessible guest room at Marriott Towne Center, including their inability to move around their hotel room in their wheelchair, to access the restroom without moving the bed, and to bathe because their room lacked a roll-in-shower.
U.S. Attorney Gathe stated, “All Americans have the right to safe, accessible public accommodations. My office will not retreat from defending the mandates of equity and individual dignity secured by our country’s civil rights laws, including the ADA. I appreciate Marriott Towne Center’s cooperation during our investigation and their willingness to promptly correct the issues we’ve identified.”
Individuals with concerns about possible violations of the nation’s civil rights laws are encouraged to contact the U.S. Attorney’s Office at [email protected] or to submit a report to the U.S. Department of Justice’s Civil Rights Division at https://civilrights.justice.gov.
This matter was investigated by Assistant United States Attorney Katherine K. Green, who also serves as the Civil Rights Coordinator for the Civil Division of the U.S. Attorney’s Office.
Operation Smoke & Mirrors Update: Charleston Man Sentenced to Prison for Methamphetamine ConspiracyRead the Press Release
CHARLESTON, W.Va. – Larry Wayne Legg, 56, of Charleston, was sentenced today to five years in prison, to be followed by three years of supervised release, for conspiracy to distribute methamphetamine. Legg admitted to his role in a drug trafficking organization (DTO) that operated in the Charleston area.
According to court documents and statements made in court, Legg admitted to obtaining quantities of methamphetamine from co-defendant Justin Allen Bowen over several months prior to December 5, 2022. Legg further admitted to selling the methamphetamine with co-defendant Kimberly Dawn Legg out of their Lotus Drive residence in Charleston. Larry Wayne Legg would typically weigh the methamphetamine for individual sales and Kimberly Dawn Legg would handle the money. The two shared a cell phone to arrange obtaining additional quantities of methamphetamine from Bowen.
On December 5, 2022, law enforcement officers searched the Lotus Drive residence and found approximately 1 pound of methamphetamine. Larry Wayne Legg admitted to receiving the methamphetamine from Bowen and further admitted that he intended to sell the methamphetamine with Kimberly Dawn Legg.
Bowen pleaded guilty to conspiracy to distribute 50 grams or more of methamphetamine on February 23, 2023. Kimberly Dawn Legg pleaded guilty to conspiracy to distribute methamphetamine. They are among 30 individuals indicted as a result of Operation Smoke and Mirrors, a major drug trafficking investigation that has yielded the largest methamphetamine seizure in West Virginia history. Law enforcement has seized of well over 200 pounds of methamphetamine as well as 28 pounds of cocaine, 20 pounds of fentanyl, 18 firearms and $747,000 in cash.
More than a dozen of the defendants have pleaded guilty. Indictments against the other defendants are pending. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the U.S. Postal Inspection Service, the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the West Virginia National Guard Counter Drug program, the Kanawha County Sheriff’s Office, the Charleston Police Department, the Putnam County Sheriff’s Office and the Raleigh County Sheriff's Office. MDENT is composed of the Charleston Police Department, the Kanawha County Sheriff’s Office, the Putnam County Sheriff’s Office, the Nitro Police Department, the St. Albans Police Department and the South Charleston Police Department.
Chief United States District Judge Thomas E. Johnston imposed the sentence. Assistant United States Attorney Jeremy B. Wolfe prosecuted the case.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). The program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, transnational criminal organizations and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-4.
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Ohio Man Pleads Guilty to Fentanyl CrimeRead the Press Release
HUNTINGTON, W.Va. – Jermaine Lee Smith, 34, of Columbus, Ohio, pleaded guilty today to aiding and abetting the distribution of fentanyl.
According to court documents and statements made in court, on April 29, 2022, Smith and Benjamin Jack Reed, 42, of Huntington, sold approximately 27 grams of fentanyl to a confidential informant in a Huntington parking lot.
Smith is scheduled to be sentenced on October 10, 2023, and faces a maximum penalty of 20 years in prison, three years of supervised release, and a $250,000 fine.
Reed pleaded guilty on February 13, 2023, to aiding and abetting the distribution of fentanyl. Reed is scheduled to be sentenced on July 10, 2023.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA) and the Cabell County Sheriff’s Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Stephanie S. Taylor is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-211.
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Ocala Men Plead Guilty to Robbing Postal CarriersRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces that Jacoby Jules Colon (20, Ocala) and Darius Rodney Capers (19, Ocala) have pleaded guilty in connection with their robbery spree of postal carriers in Florida.
Colon pleaded guilty to conspiracy to rob postal carriers, armed postal robbery, and brandishing a firearm in furtherance of a crime of violence. He faces a maximum penalty of 5 years in federal prison for the conspiracy offense, up to 25 years’ imprisonment for the robbery offenses and a minimum mandatory consecutive sentence of 7 years, and up to life in prison for the firearm offense. His sentencing hearing is scheduled for September 20, 2023.
Capers pleaded guilty to conspiracy to rob postal carriers and attempted robbery of a postal carrier. Capers faces a maximum penalty of 15 years in federal prison. His sentencing hearing is scheduled for July 18, 2023.
According to their plea agreements, Colon and Capers robbed three postal carriers. In addition, Capers attempted to rob a fourth postal carrier. On September 14, 2022, Colon and Capers robbed a postal carrier in Ft. Lauderdale and stole his arrow key, which is a master key used to open U.S. mail receptacles. Then, on October 4 and October 6, 2022, the pair robbed two postal carriers in Orlando, stealing their arrow keys. During the October 6 robbery, Colon brandished a firearm and threatened the carrier. During all three robberies, Capers was the lookout and getaway driver.
Colon approaching the victim postal carrier on October 4, 2022.
Capers speeding away from the scene with Colon immediately after the robbery on October 4, 2022.
On October 25, 2022, Capers attempted to rob a fourth postal carrier in Tampa but abandoned his effort when the carrier resisted.
U.S. Postal Inspectors witnessed Capers and Colon using one of the stolen arrow keys to access a mail collection box in the parking lot of the Azalea Park Post Office. The pair admitted to stealing mail to further engage in check fraud.
U.S. Postal Inspectors executed search warrants at a hotel in Orlando where Capers had been staying and at the homes of Colon and Capers in Ocala. They recovered several pieces of stolen mail, fraudulent checks, ski masks, and several firearms. They also located a photo sent by Colon to Capers which depicted one of the stolen arrow keys worn by Colon.
This case was investigated by the United States Postal Inspection Service and the Orange County Sheriff’s Office, with assistance from the Hillsborough County Sheriff’s Office, the Ocala Police Department, the Marion County Sheriff’s Office, and the Broward County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Michael P. Felicetta.
New Mexico Man Indicted for Threatening Federal JudgeRead the Press Release
SPRINGFIELD, Mo. – An Albuquerque, New Mexico, man has been indicted by a federal grand jury for threatening to murder a federal judge.
Ryan M. Summers, 44, was charged in an indictment returned under seal by a federal grand jury in Springfield on Tuesday, June 27. That indictment was unsealed and made public today following his arrest and initial court appearance in New Mexico.
The federal indictment alleges that on March 13, 2023, Summers threatened to murder and assault a United States judge, with the intent to impede, intimidate, and interfere with the performance of the judge’s official duties, and to retaliate against the judge on account of the performance of his official duties.
The charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge 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 Casey Clark. It was investigated by the U.S. Marshal’s Service.
Missouri Woman Admits Fraudulently Applying for $168,000 Pandemic LoanRead the Press Release
CAPE GIRARDEAU – A woman pleaded guilty to federal charges Thursday and admitted fraudulently applying for a $167,999 Payroll Protection Program loan during the coronavirus pandemic for a Poplar Bluff, Missouri business that she did not run or own.
Maxine Michelle Burns, 44, of Willow Springs in Howell County, Missouri, pleaded guilty in U.S. District Court in Cape Girardeau to bank fraud and making false statements to a financial institution.
Burns admitted applying for a PPP loan from the Small Business Administration on Jan. 20, 2021 using the name of the owner of a residential treatment facility in Poplar Bluff without authorization, as well as the owner’s signature stamp. The loan was granted, and Burns admitted using the money to buy vehicles for herself and pay for vacations.
On Sept. 16, 2021, Burns then applied to the SBA for forgiveness of the PPP loan, falsely claiming that the money had been used for payroll and other permissible purposes. Her application was granted and the loan was forgiven.
At her sentencing, set for September 28, Burns faces up to 30 years in prison, a $1 million fine or both. She will also be ordered to repay the money and has already agreed to do so.
This case was investigated by the U.S. Secret Service. Assistant U.S. Attorney Timothy Willis is prosecuting the case.
Minocqua Man Who Tried to Conceal Replica "Dukes of Hazard" Car from Bankruptcy Trustee Convicted of Bankruptcy FraudRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Bruce Polczynski, 57, Minocqua, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to three years of probation and a $1,000 fine for bankruptcy fraud. Polczynski pled guilty to this charge on March 31, 2023.
In pleading guilty, Polczynski admitted that he lied to the U.S. Bankruptcy Trustee about assets so they would not be used to pay creditors, specifically, Polczynski lied to conceal a 1969 Dodge Charger replica of the General Lee vehicle from the Dukes of Hazard television show and a 1979 Pontiac Firebird Trans Am.
U.S. Attorney O’Shea noted that Polczynski’s deception was quickly discovered, and the vehicles were sold to pay creditors. According to O’Shea, “Polczynski’s story, where he was quickly stripped of the assets he tried to hide, suffered the embarrassment of federal prosecution, and received a felony conviction, is a compelling cautionary tale for anyone considering bankruptcy fraud.”
In imposing sentence, Judge Peterson noted that the bankruptcy system—like many government institutions—”depends critically on the honesty” of those who engage with it. According to Judge Peterson, while three years of probation was the “just sentence” given Polczynski’s health and financial circumstances, a prison term may be required in other bankruptcy fraud cases to “amplify” the general deterrence message.
The charge against Polczynski was the result of an investigation conducted by the Office of the United States Trustee and the Federal Bureau of Investigation. U.S. Attorney Timothy M. O’Shea prosecuted this case.
Minneapolis Tax Preparer Sentenced to Prison for Tax CrimesRead the Press Release
MINNEAPOLIS– A Minneapolis tax preparer has been sentenced to 12 months and one day in prison followed by one year of supervised release, announced United States Attorney Andrew M. Luger.
According to court documents, Sue Yang, 48, of Circle Pines, operated a tax preparation business in Minneapolis. Yang participated in the IRS’s e-file program, a specialized program the IRS offers to qualified tax preparers, and was assigned a unique “Electronic Filing Identification Number” (known as an “EFIN”). In 2010, the IRS conducted a periodic suitability review of Yang and found that he failed to file a 2009 personal income tax return and that he owed substantial federal income taxes from tax years 2005 through 2008. The IRS notified Yang repeatedly that his failure to resolve his tax obligations would result in sanctions, including suspension of his EFIN or his expulsion from the IRS e-file program. In August 2012 Yang was suspended from the IRS e-file program and was no longer authorized to electronically file tax returns.
From August 2012 through April 2022, despite his suspension from the e-file program, Yang operated surreptitiously as an e-filing tax preparer. Yang disguised his unauthorized participation in the e-file program by enlisting others to obtain unique EFINs, which Yang then used to file thousands of tax returns electronically on behalf of his customers. These tax returns were electronically transmitted to the IRS purporting to have been prepared by other individuals. From 2012 through 2020, Yang impeded the IRS’s suitability review and circumvented his e-file suspension by electronically filing more than 26,000 tax returns using misappropriated EFINs.
From 2018 through 2021, Yang received approximately $765,000 in compensation from working as a tax preparer but, in order to further obscure his unauthorized conduct, he did not report any income related to his tax preparation business. Yang’s tax crimes resulted in a combined federal tax loss of approximately $214,297, an amount which Yang is ordered to pay in restitution.
Yang pleaded guilty on November 29, 2022, to one count of filing a false federal income tax return and one count of corruptly impeding and obstructing the administration of the internal revenue laws. Yang was sentenced today before Judge Eric C. Tostrud.
This case was jointly investigated by IRS – Criminal Investigations and the Treasury Inspector General for Tax Administration (TIGTA).
This case was prosecuted by Assistant U.S. Attorney Matthew S. Ebert.
Mexican Man Sentenced to Prison for Illegally Reentering the United States After Being DeportedRead the Press Release
A man who illegally returned to the United States after being deported was sentenced today to two years in federal prison.
Francisco Buenrostro-Ruiz, age 49, a citizen of Mexico illegally present in the United States and residing in Waterloo, Iowa, received the prison term after a March 9, 2023, guilty plea to one count of illegal reentry into the United States after having been deported.
At the guilty plea, Buenrostro-Ruiz admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Buenrostro-Ruiz was previously deported to Mexico in January 2012. On July 20, 2022, immigration officials learned Buenrostro-Ruiz had illegally returned to the United States and found Buenrostro-Ruiz at the Black Hawk County Jail following his arrest on state charges. Buenrostro-Ruiz was previously convicted on October 31, 2005, in State of Iowa v. Fransisco Buenrostro, in the Iowa District Court for Black Hawk County, No. FECR128735, for Possession of Methamphetamine with Intent to Deliver, an aggravated felony.
Buenrostro-Ruiz was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Buenrostro-Ruiz was sentenced to 24 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Buenrostro-Ruiz is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-2010.
Follow us on Twitter @USAO_NDIA.
Maitland Man Indicted for Distributing, Receiving, and Possessing Child Sexual Abuse Images and Videos over the InternetRead the Press Release
Orlando, FL - United States Attorney Roger B. Handberg announces the return of an indictment charging Tremaine Lincoln Farara (37, Maitland) with two counts of distributing child sexual abuse images and videos over the internet, two counts of receiving child sexual abuse images and videos over the internet, and one count of possessing child sexual abuse images and videos that involved a young child and a child who had not attained 12 years of age. If convicted, Farara faces a minimum mandatory sentence of 5 years, and up to 20 years, in federal prison for each count of distributing and receiving of child sexual abuse images and videos, and up to 20 years’ imprisonment for the possession count.
According to court documents, Farara, used a chat application to download images and videos depicting children being sexually abused and distributed them over the internet. Farara also distributed some of these materials to an undercover FBI agent.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Terry B. Livanos.
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 United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to 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.
Los Lunas Man Sentenced to 9 Years in Prison for Firearms and Drug OffensesRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Russell Wheeler was sentenced to 110 months in prison followed by 3 years of supervised release. Wheeler, 51, of Los Lunas, New Mexico, pled guilty to two counts of being a felon in possession of a firearm and ammunition and one count of attempt to manufacture methamphetamine on May 26, 2022.
According to court records, on May 22, 2021, following an argument, Wheeler shot a man in the head, at close range, with a revolver before fleeing the scene on foot. The victim was taken to an urgent care clinic and later to the University of New Mexico Hospital for treatment. He survived his injuries and Wheeler was identified as the shooter by a witness. Wheeler was convicted of possession of a controlled substance in 2005 and aggravated fleeing from law enforcement in 2007, both felonies. As a previously convicted felon, Wheeler cannot legally possess firearms or ammunition.
Following the incident, the FBI sought and executed a search warrant on Wheeler’s home. Inside, the FBI recovered two firearms - a 12-gauge shotgun and a black semi-automatic pistol -and ammunition and discovered an active methamphetamine lab in the bathroom of the residence. Wheeler admitted that he was in the process of cooking methamphetamine when agents knocked on his door and he had flushed much of what he was making down the toilet.
The FBI Violent Crime Task Force investigated this case with assistance from the Valencia County Sheriff’s Office and New Mexico State Police. Assistant United States Attorney Jaymie L. Roybal is prosecuting the case.
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Justice Department Finds State of South Carolina Unnecessarily Segregates Adults with Mental Illness in Adult Care HomesRead the Press Release
The Justice Department announced today that it has concluded an investigation into whether the State of South Carolina subjects adults with mental illness to unnecessary institutionalization and serious risk of institutionalization in adult care homes, in violation of Title II of the Americans with Disabilities Act (ADA).
The Justice Department determined that there is reasonable cause to believe South Carolina violates the ADA by failing to provide sufficient community-based services to prevent unnecessary institutionalization of adults with mental illness. Instead, the state subsidizes their stay in adult care homes where people have little contact with people without disabilities, often leaving the homes only for medical appointments and group visits to grocery and convenience stores. Critical services that would allow adults with mental illness to live instead in their own homes and communities are not sufficiently available across the state.
“People with disabilities should not be isolated in institutions for years on end when they can and want to live in their own homes,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division will safeguard the rights of people with disabilities to ensure that they are able to participate fully in community life.”
“A sacred promise of the ADA includes giving people a meaningful choice for where they wish to live, including in their own private home,” said U.S. Attorney Adair F. Boroughs for the District of South Carolina. “I hope that the violations identified by the Justice Department can be remedied so that these South Carolinians will be able to leave the shadow of institutional living and instead live in and contribute to their communities.”
The Department’s investigation found South Carolina lacks needed community-based mental health services such as assertive community treatment, supported employment, permanent supportive housing, intensive case management, and peer support. These services are provided in certain parts of the state but are not sufficiently available to afford opportunities to avoid or move out of adult care homes and live in the community. As a result, thousands of adults with mental illness are segregated in adult care homes for years.
The Department’s investigation involved extensive review and analysis of documents; interviews of staff and people living in adult care homes, South Carolina state employees, and stakeholders; and visits to adult care homes statewide. Individuals with information relevant to this matter can contact the Department by emailing [email protected].
Additional information about the Civil Rights Division of the Justice Department is available on its website at Civil Rights Division | Rights Of Persons With Disabilities (justice.gov) and www.ada.gov.
South Carolina ADA Findings Report Letter to SC Regarding FindingsHuntington Man Pleads Guilty to Federal Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – Kenneth Dale Walker, 34, of Huntington, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on September 22, 2020, a law enforcement officer conducted a traffic stop of a vehicle driven by Walker in Guyandotte. Walker was wearing an empty holster on his hip. Walker told the officer there was a firearm under his seat. The officer recovered a Taurus, G2cm 9mm pistol under the seat. Walker admitted to possessing the firearm.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Walker knew he was prohibited from possessing a firearm because of his prior felony conviction for unlawful wounding in Cabell County Circuit Court on September 3, 2010.
Walker is scheduled to be sentenced on October 10, 2023, and faces a maximum penalty of 10 years in prison, three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the West Virginia State Police.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Stephanie Taylor is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-113.
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Grovespring Man Sentenced to 20 Years for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A Grovespring, Mo., man was sentenced in federal court today for receiving and distributing child pornography.
James Michael Justice, 55, was sentenced by U.S. District Judge Brian C. Wimes to 20 years in federal prison without parole. The court also sentenced Justice to 15 years of supervised release following incarceration.
On Nov. 21, 2022, Justice pleaded guilty to one count of receiving and distributing child pornography.
Justice was arrested on Feb. 15, 2022, when troopers with the Missouri State Highway Patrol executed a search warrant at his residence. Troopers seized three cell phones and two laptop computers. Investigators conducted a forensic examination and found images and videos of child pornography on Justice’s cell phone.
Justice also faces felony state charges for child molestation and sexual conduct involving a child under 15.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Missouri State Highway Patrol and the Wright County, Mo., Sheriff’s Department.
Project Safe Childhood
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.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former St. Charles County Youth Hockey Coach Arrested on Federal Child Sex ChargesRead the Press Release
ST. LOUIS – A former youth hockey coach was arrested Thursday on federal charges that include accusations that he produced child pornography involving two juveniles and possessed child pornography of multiple other currently unidentified juveniles.
James R. Lambert , 41, of Lake St. Louis, was indicted June 28 on two counts of production of child pornography, one count of receiving child pornography and one count of transporting minors across state lines to engage in criminal sexual activity.
He pleaded not guilty to the charges Thursday in U.S. District Court in St. Louis.
The indictment accuses Lambert of inducing two minors into engaging in sexually explicit conduct and then filming it. It also says Lambert took a minor across state lines with the intent to engage in sexual activity and that he received child pornography online.
Lambert is also facing charges in St. Charles County Circuit Court of statutory sodomy and child molestation and charges of statutory sodomy and sexual exploitation of a child in St. Louis County Circuit Court. He was in jail on those charges at the time of his arrest on the federal case.
Anyone with information regarding possible additional victims is asked to contact the Lake St. Louis Police Department by calling 636-625-8018 or emailing [email protected].
This case was investigated by Homeland Security Investigations, the Lake St. Louis Police Department, the St. Charles County Cybercrime Task Force and the Maryland Heights Police Department. Assistant U.S. Attorney Jillian Anderson is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Portland Area Non-Profit Director Sentenced to Federal Prison for Stealing Covid Relief FundsRead the Press Release
PORTLAND, Ore.—A former Portland area non-profit director was sentenced to federal prison today for stealing more than $321,000 in federal funds intended to help small businesses during the COVID-19 pandemic.
Theodore Johnson, 62, a Portland resident, was sentenced to 15 months in federal prison and three years’ supervised release. He was also ordered to pay approximately $321,000 in restitution to two banks, the U.S. Small Business Administration and the Oregon Department of Administrative Services.
According to court documents, in February 2017, Johnson incorporated and began serving as the director of operations for Ten Penny International Housing Foundation, an Oregon-based non-profit organization. After Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020 to provide emergency financial assistance to American employers, Johnson saw an opportunity to fraudulently obtain government funds on Ten Penny’s behalf.
In early March 2021, Johnson submitted his first of three Paycheck Protection Program (PPP) applications, falsely claiming Ten Penny employed 16 people and had an average monthly payroll of more than $57,000. To support his application, Johnson submitted fraudulent tax documents and created an electronic counterfeit IRS stamp to make it appear as though his forms had been received by the IRS. Based on these false claims, Northeast Bank issued a PPP loan worth more than $143,000 to Ten Penny.
Two months later, in May 2021, Johnson submitted two more fraudulent PPP loan applications. In these applications, he again falsely claimed Ten Penny employed 16 people and had an average monthly payroll of at least $50,000. Johnson further falsely claimed to have used the entirety of his first PPP loan for eligible expenses. As a result, Central Willamette Credit Union issued Johnson a second PPP loan worth more than $130,000.
In addition to his three fraudulent PPP loan applications, Johnson submitted a fraudulent Oregon Cares Fund application on behalf of Ten Penny and received an additional $34,975.
On October 31, 2022, Johnson was charged by criminal information with one count of bank fraud and two months later, on December 29, 2022, pleaded guilty to the single charge.
This case was investigated by the SBA Office of Inspector General and U.S. Treasury Inspector General for Tax Administration (TIGTA). It was prosecuted by Meredith D.M. Bateman, Assistant U.S. Attorney for the District of Oregon.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’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.
Former Partner of Investment Management Firm Arrested for $1.6 Million Investment Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York and Christie M. Curtis, the Acting Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”) announced the unsealing of a two-count Indictment charging JOSHUA HENNER with wire fraud and aggravated identity theft. As alleged in the Indictment, HENNER, through false statements and representations, convinced victims to loan him at least $1.6 million for the purpose of investing in a start-up, while, in reality, misappropriating those funds for his own purposes. HENNER was arrested this morning and will be presented in Manhattan federal court later today before U.S. Magistrate Judge Jennifer E. Willis.
U.S. Attorney Damian Williams said: “As alleged, Joshua Henner defrauded his victims of over $1.6 million and used those funds to line his own pockets. Investment fraud schemes are all too common. Thanks to our partnership with the Federal Bureau of Investigation, Henner will now be held accountable for his conduct.”
FBI Acting Assistant Director in Charge Christie M. Curtis said: “The defendant is alleged to have to conducted an investment fraud scheme, based on misrepresentations and falsehoods, in order to misappropriate more than $1.6 million in investor funds. Investment fraud schemes cause harm to victims directly involved, but also weaken the public's faith in the financial marketplace. Investigating and holding the individuals responsible for complex financial schemes accountable remains a top focus for the FBI.”
As alleged in the Indictment[1]:
From at least in or about May 2022 through at least in or about December 2022, HENNER ran a scheme that defrauded victims out of at least $1.6 million. HENNER solicited and obtained funds from victims based on representations that he had been an angel investor in a start-up (the “Company”) and that he needed funds to purchase additional shares in the Company to maintain his investment position.
To induce victims to give him funds, HENNER routinely made materially false oral and written statements, including lies about his previous investment in the Company and his ownership interest in the Company. Without their knowledge or authorization, HENNER misappropriated his victims’ funds by, among other things, transferring the funds to himself and other individuals.
During and in relation to the scheme, HENNER used, without authorization, the name and email address of a lawyer purportedly involved in the investments to communicate via email with his victims and foster the illusion that he was using the funds that his victims lent him for their intended purposes.
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HENNER, 35, of New York, New York, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison, and one count of aggravated identity theft, which carries a mandatory two-year consecutive sentence. The minimum and maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by a judge.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Brandon C. Thompson is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Henner Indictment
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein, constitute only allegations, and every fact described herein should be treated as an allegation.
Former Ohkay Owingeh Police Department Officer Charged with Obstruction of JusticeRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Justin Aquino made an initial appearance in federal court on an indictment charging him with obstruction of justice and making false statements. Aquino, 28, of Ohkay Owingeh, will remain on conditions of release pending trial.
According to the indictment, on Feb. 26, 2020, Aquino allegedly used his position as an officer with the Ohkay Owingeh Police Department to impede a federal grand jury investigation by disclosing information about an ongoing investigation being conducted by Homeland Security Investigations and the Drug Enforcement Administration to an individual outside of the investigation. Then, on May 24, 2022, while working for the Pojoaque Police Department, Aquino was confronted by special agents from the FBI and Aquino falsely stated that he had not disclosed information to anyone outside of the investigation
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Aquino faces a maximum sentence of 25 years in prison.
This case was investigated by the Santa Fe office of the Federal Bureau Investigation with assistance from Homeland Security Investigations, the Drug Enforcement Administration, the Bureau of Indian Affairs and the Region III Drug Enforcement Task Force. Assistant United States Attorney Peter J. Eicker is prosecuting the case.
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Former Nurse Sentenced to Federal Prison for Tampering with a Consumer ProductRead the Press Release
MIAMI – Catherine Shannon Dunton, 55, has been sentenced to 48 months in prison, followed by three years of supervised release, for stealing fentanyl from sterile vials intended for patients for personal use and then replacing the fentanyl with saline solution to avoid detection.
From February 28 to April 18, 2022, Dunton, a Florida licensed Registered Nurse (RN), worked at an outpatient surgical center in Jensen Beach, Martin County, Fla. as a circulating nurse. While working at the center, Dunton took vials of fentanyl, a narcotic painkiller in liquid form, and self-administered it by injection. To avoid detection, she replaced the fentanyl from nearly 450 vials with saline solution, and then returned the adulterated vials to the center for use during outpatient surgical procedures.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Justin C. Fielder of the U.S. Food and Drug Administration, Office of Criminal Investigations (FDA-OCI), Miami Field Office, made the announcement.
FDA-OCI Miami investigated the case, with assistance from U.S. Postal Inspection Service (USPIS), Miami Division. Assistant U.S. Attorney Diana M. Acosta prosecuted it.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 22-cr-14073.
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Former Bank VP Pleads Guilty to Embezzling $550,000Read the Press Release
JEFFERSON CITY, Mo. – A former bank vice president pleaded guilty in federal court today to embezzling at least $550,000 from the People’s Bank of Moniteau County.
Angela Flippin, 51, of Jamestown, Mo., waived her right to a grand jury and pleaded guilty before U.S. Magistrate Judge Willie J. Epps, Jr. to a federal information that charges her with one count of embezzlement by a bank employee and one count of filing a false federal tax return.
Flippin was the vice president and chief operating officer at the People’s Bank of Moniteau County, which has locations in Jamestown and California, Mo. She was also the board secretary for many years and held that position when she was terminated.
By pleading guilty today, Flippin admitted that she embezzled at least $550,000 from 2010 to Jan. 30, 2017. The government believes she embezzled $645,638 and will present evidence for that amount at the sentencing hearing.
In January 2017, the Missouri Division of Finance discovered improper transactions involving Flippin. From 2010 through 2017, three areas of improper activity were identified; improper disbursements; improper expense reimbursements; and improper insurance premiums. Through their analysis, auditors determined Flippin received more than $550,000 in improper comp time disbursements and more than $8,000 in improper expense reimbursements.
Flippin personally held three separate bank accounts. Analysis of these bank accounts by federal investigators found Flippin made payroll deposits in the amount of $105,750. In addition to Flippin’s payroll deposits there were other deposits which totaled $892,782. Analysis of expenditures from Flippin’s bank accounts found $338,569 in PayPal online shopping transactions and other general debit card transactions.
Flippin also admitted that she failed to report the amounts that she embezzled from People’s Bank of Moniteau County on her 2014, 2015, and 2016 federal income tax returns. During those three years, she embezzled a total of $372,745, resulting in a total tax loss to the federal government of $96,434.
Under federal statutes, Flippin is subject to a sentence of up to 33 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the FBI, IRS-Criminal Investigation, and the Federal Deposit Insurance Corporation.
Foreign National Sentenced to Almost Four Years in Federal Prison for $1.5 Million Fraud SchemeRead the Press Release
Baltimore, Maryland – U.S. District Judge Stephanie A. Gallagher sentenced Nigerian citizen, Akolade Ojo, age 31, of Owings Mills, Maryland, yesterday to 46 months in federal prison, followed by three years of supervised release, for conspiracy to commit wire fraud. Judge Gallagher also ordered Ojo to pay $1,320,186.19 in restitution. The charges stemmed from fraud schemes in which Ojo communicated with his co-conspirators about the receipt of money from victims into bank accounts controlled by the conspirators and instructed conspirators about withdrawals, transfers, and purchases of cashier’s checks using the fraudulently obtained funds.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James C. Harris of Homeland Security Investigations (“HSI”) Baltimore; Special Agent in Charge Karen L. Brown Cleveland of the U.S. Department of State, Diplomatic Security Service (“DSS”), Washington Field Office; Acting Special Agent in Charge Troy W. Springer, of the National Capital Region of the U.S. Department of Labor’s Office of Inspector General (“DOL-OIG”); and Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service – Washington Division.
According to Ojo’s plea agreement and other court documents, from August 2018 to November 2020, Ojo and his co-conspirators, some of whom were located outside the United States, defrauded multiple businesses, individuals, and financial institutions. As part of the fraud schemes, Ojo’s co-conspirators obtained fake passports and other identification documents, in multiple aliases, created and used limited liability companies to further hide their identities, and opened bank accounts in the names on the identification documents or the limited liability companies. Other conspirators made false representations to companies and individuals to induce them to fraudulently send money to the bank accounts controlled by the conspirators. These false representations included hacking into email accounts to impersonate individuals and redirect legitimate payments for services and products; deceiving victims about how to pay a vendor’s legitimate invoice through look-alike email addresses; and romance frauds.
Ojo and other co-conspirators used an encrypted messaging app to communicate the timing of financial transactions, including directing members of the conspiracy regarding the deposit, withdrawal, transfer, and conversion of fraudulently obtained funds. Ojo admitted that he was involved in numerous financial transactions in which money was directed to aliases that were being used by his co-conspirators and that he personally benefitted from the money obtained by the fraud. Ojo knew that the fraud schemes involved more than 15 business and individual victims with losses of at least $1.5 million.
Ojo is the final defendant charged in the conspiracy to be sentenced. In May 2022, co-defendant Idowu Raji, age 40, of Baltimore County, Maryland, was sentenced to 94 months in federal prison for this and a related case. Hameed Adesokan, age 35, of New Jersey, and Damilola Lawal, a/k/a DML, D Baba, and Dami, age 32, of Windsor Mill, Maryland, were each sentenced to 46 months in federal prison, for their roles in the fraud scheme. Adewumi Abioye, age 35, of Randallstown, Maryland; and Lukman Salam, age 37, of Bear, Delaware were sentenced to 27 months and 30 months in federal prison, respectively. Olatunde Vincent, age 35, of Pikesville, Maryland was sentenced to 50 months in prison for a related case.
United States Attorney Erek L. Barron commended HSI, the DSS, the DOL-OIG, and the U.S. Postal Inspection Service for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Harry M. Gruber, who prosecuted the case and Paralegal Joanna B.N. Huber, who assisted on the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/report-fraud.
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Fentanyl Distributer Tied to 13-Year-Old’s Overdose Death Pleads GuiltyRead the Press Release
A drug distributor who was selling fentanyl-laced counterfeit M30 pills to a Carrollton middle schooler shortly before her fatal overdose pleaded guilty today to a federal drug crime, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Rafael Soliz, Jr., 23, was indicted in March. He pleaded guilty Thursday to conspiracy to possess with intent to distribute fentanyl before U.S. Magistrate Judge Renee Harris Toliver.
“My heart aches for the victim in this case – a promising young girl who’d barely entered her teens. The defendant not only sold her fentanyl but also taught her how to ingest it. In essence, he encouraged a mere child to snort a terrifyingly potent, highly addictive drug – and then urged her to cover for him with law enforcement,” said U.S. Attorney Leigha Simonton. “The Northern District of Texas is pulling out all the stops to rid the streets of dealers and keep fentanyl out of the hands of our kids. Our community cannot endure much more of this.”
“Anyone selling fentanyl to children will find themselves becoming a top priority for the Drug Enforcement Administration,” said DEA Special Agent in Charge Eduardo A. Chávez. “The DEA will continue to focus our resources on stopping this deadly threat from reaching and causing more harm to our next generation.”
“We will never stop fighting to protect our community from this dangerous drug. I’m proud of the men and women of the Carrollton Police Department, who are working tirelessly to rid the community of this poison. Our thoughts and prayers are with the family,” said Carrollton Police Chief Roberto Arredondo.
According to plea papers, Mr. Soliz admitted he sold fentanyl to both street-level dealers and directly to users, including children.
Mr. Soliz used an Instagram account to communicate with both adult and minor customers interested in purchasing counterfeit M30 pills containing fentanyl. On Nov. 30, Mr. Soliz responded via Instagram messenger to a 13-year-old girl who asked him if she could buy “percs.” Soliz agreed and delivered the pills to her residence. He then advised her how to snort them.
A few days later, upon discovering that the child, a student at Dewitt Perry Middle School, was just 13, he expressed dismay at her age but agreed to continue selling to her if she would “keep it on the down low” and deny he was her dealer if she ever got caught. On December 9, 2022, he advised her to “delete our chat” and instead use Instagram Vanish Mode.
Two days later, the child was found dead in her Carrollton bedroom. An autopsy revealed she’d died from a toxic combination of fentanyl and cough medicine.
In his plea papers, Mr. Soliz stipulated that he personally distributed approximately 1,500 fentanyl pills to adults and juveniles, including the 13 year-old victim. He stated he dealt hundreds of pills directly to Luis Eduardo Navarrete, one of the first traffickers charged in the wake of the Carrollton juvenile fentanyl overdoses.
Mr. Soliz is the fifth defendant charged in the wake of the Carrollton / Flower Mound juvenile overdose investigation to enter a guilty plea. Jason Xavier Villanueva, Magaly Cano, Donovan Jude Andrews and Stephen Paul Brinson pleaded guilty earlier this year; three other defendants, including Mr. Navarrete, have been charged but not yet convicted. (All are presumed innocent until proven guilty in a court of law.)
Mr. Soliz now faces up to 40 years in federal prison. Under the terms of his plea agreement, he may be called upon to testify in court.
The Drug Enforcement Administration’s Dallas Field Division and the Carrollton Police Department conducted the investigation with the assistance of the Carrollton - Farmer’s Branch Independent School District. Assistant U.S. Attorneys Rick Calvert and Phelesa Guy are prosecuting the case.
Note: Illicitly produced, fentanyl-laced pills often look similar to legitimate prescription pills like Oxycontin or Percocet, but can pose significantly more danger. On the street, these pills are often referred to as “M30s” (a reference to the markings on some of the pills), “blues,” “perks,” “yerks,” “china girls,” or “TNT.” DEA research shows that six out of ten pills laced with fentanyl contain a potentially lethal dose. One pill can kill. For resources, visit https://www.dea.gov/onepill.
Felon admits to possessing loaded firearm and drugsRead the Press Release
HOUSTON – A 28-year old Houston resident has pleaded guilty to illegally possessing two firearms while a felon and possession with intent to distribute cocaine, announced U.S. Attorney Alamdar S. Hamdani.
On Jan. 21, 2022, authorities found Sydney Rachal’s motor vehicle stopped in the middle of the road. They soon took him into custody for driving while intoxicated and for an outstanding felony warrant.
Upon his arrest, a search of his person revealed two plastic bags weighing approximately 68 grams that contained cocaine as well as $22,905 in cash. A subsequent search of his vehicle also resulted in the discovery of magazines and two firearms, one of which - a Glock Model 26 pistol - was loaded.
During the hearing, the court heard that Rachal also possessed several other illegal substances, such as marijuana, alprazolam and other pills along with the material to distribute them.
The investigation revealed Rachal had been previously convicted of aggravated robbery. As such, he is prohibited from possession firearms or ammunition per federal law.
U.S. District Judge Hittner accepted the plea and set sentencing for Oct. 5. At that time, Rachal faces up to 10 years and a possible $250,000 maximum fine for the firearms charge, while the drug trafficking conviction carries a potential 20-year prison term with a potential fine of $1 million.
He has been and will remain in custody pending that hearing.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorneys Rodolfo Ramirez is prosecuting the case.
Dubuque Brother and Sister Responsible for Selling Hundreds of Pounds of Methamphetamine Plead Guilty to Conspiring to Distribute MethamphetamineRead the Press Release
A brother and sister who conspired to distribute methamphetamine within 1,000 feet of a protected location pled guilty today in federal court in Cedar Rapids.
Jacob Patrick Demaio, age 42, and Codi Lyn Demaio, age 35, both from Dubuque, Iowa, were each convicted of one count of conspiring to distribute at least 500 grams of a mixture or substance containing a detectable amount of methamphetamine, and at least 50 grams of actual (pure) methamphetamine, within 1,000 feet of a protected location.
Evidence at a prior hearing showed that Jacob Demaio sold hundreds of pounds of methamphetamine to multiple people between 2019 and 2022. He arranged for drug transactions to occur at stash houses located in Dubuque within 1,000 feet of schools and playgrounds. Drug customers dropped off hundreds of thousands of dollars at those stash houses; that money was intended for Jacob Demaio.
At a prior hearing, evidence showed that Codi Demaio also sold pounds of methamphetamine to several people in Dubuque between 2019 and 2022. On two occasions when her brother was incarcerated, she took over his drug operation and sold tens of pounds of methamphetamine. She was once instructed to go to California with $25,000 to buy drugs, though she instead traveled to Las Vegas and lost all of the money.
At plea hearings, Jacob and Codi Demaio admitted that they conspired to distribute at least 500 grams of a mixture or substance containing a detectable amount of methamphetamine, and at least 50 grams or more of actual (pure) methamphetamine, within 1,000 feet of a protected location.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Jacob and Codi Demaio remain in custody of the United States Marshal pending sentencing.
For conspiring to distribute methamphetamine within 1,000 feet of a protected location, both Jacob and Codi Demaio face a mandatory minimum sentence of 10 years’ imprisonment and the following maximum penalties: not more than life imprisonment without the possibility of parole; a fine of not more than $20,000,000; a mandatory special assessment of $100; and a term of supervised release of at least 10 years and up to life.
The case is being prosecuted by Special Assistant United States Attorney Devra Hake. It was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Dubuque Drug Task Force, Dubuque County Sheriff’s Office, Dubuque Police Department, Quad City Metropolitan Enforcement Group, Federal Bureau of Investigation, Drug Enforcement Administration, United States Postal Inspection Service, and the Iowa Division of Criminal Investigation Criminalistics Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-1039.
Follow us on Twitter @USAO_NDIA.
Drug Traffickers from Lafayette Area Sentenced for Possession of HeroinRead the Press Release
LAFAYETTE, La. – United States Attorney Brandon B. Brown announced that Lensly Johnnie, 38, of Lafayette, Louisiana, was sentenced today by United States District Judge Robert R. Summerhays on drug charges. Johnnie was sentenced to 88 months (7 years, 4 months) in prison, followed by 3 years of supervised release.
On July 31, 2019, officers with the Lafayette Police Department attempted to conduct a traffic stop of a vehicle operated by Johnnie’s co-defendant, Ernest Taylor. Johnnie was a front seat passenger in the vehicle. When officers attempted to stop the vehicle, Johnnie and Taylor fled the scene and their vehicle was later found unoccupied and parked at a nearby residence in Lafayette. An officer saw Johnnie and another male walking down the street near the location of the abandoned vehicle. Johnnie was stopped and found to have over $3,900 on his person and had a strong odor of marijuana.
Meanwhile, law enforcement officers had a K9 officer arrive at the location where the abandoned vehicle was left and conducted an open-air sniff and a probable cause search was conducted. Inside the vehicle officers found what was thought to be approximately 332 grams of cocaine and approximately 16 grams of heroin hidden inside the door panel. The seized narcotics were sent to the crime lab for testing, and it was determined the narcotics seized were not cocaine, but in fact heroin, with a total of 329.3 grams seized. Johnnie pleaded guilty on March 28, 2023, to possession with intent to distribute heroin.
Ernest Taylor, the co-defendant in this case, was sentenced on April 25, 2023, to 60 months in prison, followed by 5 years of supervised release, for his role in the offense.
The case was investigated by the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives and Lafayette Police Department and prosecuted by Assistant U.S. Attorney Daniel J. McCoy.
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Dion Oliver Sentenced to Life in Federal Prison Following Convictions for the Shooting of a Wilmington 6-Year-Old Boy and the Death of a Newark WomanRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that Dion Oliver, age 43, was sentenced today to life imprisonment without the possibility of parole after he was convicted of Stalking, Kidnapping Resulting in Death, and Conspiracy following a 7-day federal trial that concluded on November 16, 2022. U.S. District Judge Joshua D. Wolson pronounced the sentence.
According to evidence and witness testimony, the Defendant worked with at least five coconspirators - Ryan Bacon, Donte Sykes, Teres Tinnin, Maurice Cooper, and Michael Pritchett - to search for a man, listed in the Indictment as M.S., in an attempt to kill him. On June 6, 2017, in furtherance of their continuing pursuit of M.S., Oliver and his confederates kidnapped M.S.’s girlfriend, Keyonna Perkins, and used her to find M.S. Ms. Perkins was held at gunpoint by Oliver. She was then forced into the trunk of a car. After locating M.S., Oliver and his coconspirators fired multiple shots at M.S., but failed to hit him. Following that shooting, Ms. Perkins was forced into the trunk of a second car and driven by co-conspirators to Elkton, Maryland where she was murdered.
Oliver continued his pursuit of M.S. after the first failed shooting. He located M.S. at Probation & Parole Offices in New Castle. Oliver, working with Pritchett, waited for M.S. to leave Probation & Parole. They followed M.S. into Wilmington until M.S. got out of his car. Pritchett then drove alongside M.S., while Oliver reached out the front passenger window of Pritchett’s truck and fired multiple shots at M.S. The gunfire missed M.S., but one of the bullets ripped through a passing SUV and struck a six-year-old boy in the head, causing the child severe and permanent injuries.
“I don’t think I can overstate how horrific this offense is” Judge Wolson commented as he handed down Oliver’s sentence. Oliver’s crime was “selfish, ignorant, and the consequences were devastating,” he continued. “There is no mercy for this type of conduct.”
In discussing Oliver’s mandatory life sentence, U.S. Attorney Weiss stated, “Oliver and his co-defendants’ heinous conduct caused the death of Keyonna Perkins, and severely and permanently injured an innocent then-six-year-old boy. The lives of the victims’ families and their respective communities have been forever changed, and as a result, the Defendant will be spending the rest of his life in federal prison. My office will continue its work with federal, state, and local law enforcement to aggressively investigate and prosecute the violent crime that plagues our communities.”
“The FBI is committed to removing dangerous criminals like Dion Oliver from our communities,” said Special Agent in Charge Thomas J. Sobocinski of the FBI's Baltimore field office. “Because of Oliver’s callous and despicable actions, an innocent woman was murdered, and a child’s life will never be the same. The FBI, along with our law enforcement partners, will continue working every day to make our neighborhoods safer from those seeking to commit violence and bring harm to our citizens.”
This case was investigated by FBI’s Delaware Violent Crime and Safe Streets Taskforce, with assistance from the Wilmington Police Department, New Castle County Police Department, Delaware State Police, and the Elkton Police Department. Assistant U.S. Attorneys Jesse S. Wenger and Eli H. Klein prosecuted the case along with former Assistant U.S. Attorney Christopher L. de Barrena-Sarobe.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 1:18-cr-75.
Crow Agency woman accused in large-scale, drug trafficking probe admits to distributing methRead the Press Release
BILLINGS — A Crow Agency woman charged in large-scale, multi-state drug trafficking investigation centered on the Crow Indian Reservation admitted today to distributing methamphetamine, U.S. Attorney Jesse Laslovich said.
Keilee Shamrae Diaz, 34, pleaded guilty to distribution of meth. Diaz faces a mandatory minimum of five years to 40 years in prison, a $5 million fine and at least four years of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. A sentencing date will be set before U.S. District Judge Susan P. Watters. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Diaz was detained pending further proceedings.
In court documents, the government alleged that federal law enforcement, in a collaborative effort with local and tribal law enforcement, investigated a large-scale, multi-state narcotics trafficking operation centered on multiple properties on the Crow Indian Reservation. The properties, including one known as Spear Siding, were a source of supply of meth for both the Crow and Northern Cheyenne Indian Reservations. Law enforcement arrested Diaz and others during a take down in April.
The government further alleged that in September 2022, law enforcement conducted a controlled purchase of meth from Diaz and others. A controlled source communicated with Diaz through Facebook and arranged to buy an ounce of meth. The source met Diaz and co-defendant 1 in Hardin, and the group drove to the Spear Siding property. After a phone conversation at Spear Siding with co-defendant 2, a Spear resident, the group went back to Hardin. In Hardin, the group met up with co-defendant 2. Following this meeting, the source purchased the meth for $710 directly from co-defendant 1, who was with Diaz.
Assistant U.S. Attorneys are prosecuting the case. The Bureau of Indian Affairs, Drug Enforcement Administration and FBI conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results
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Court Orders Maryland Pharmacy to Pay $120,000 Penalty in Case Alleging Unlawful Opioid DistributionRead the Press Release
A federal court enjoined a Cumberland, Maryland, pharmacy and its owner and pharmacist from dispensing controlled substances, including opioids, without taking specific steps to help ensure the drugs will not be abused or diverted, and ordered them to pay a $120,000 civil penalty.
The court’s order, entered pursuant to a consent decree of permanent injunction, resolves a complaint filed by the United States on June 16 alleging that Beckman’s Greene Street Pharmacy and its owner and pharmacist-in-charge, John A. Beckman, filled hundreds of prescriptions in violation of the Controlled Substances Act (CSA). The complaint alleges that the defendants ignored obvious “red flags” of drug abuse, drug diversion, and drug-seeking behavior. For example, according to the complaint, the defendants repeatedly filled prescriptions for dangerously large doses and high-risk combinations of controlled substances known to be sought by drug abusers and which significantly increase the risk of overdose. The complaint alleges that the defendants frequently filled prescriptions for an opioid known as buprenorphine in a form that did not include the abuse-deterrent component with which it is ordinary prescribed. The complaint further alleges that the defendants often dispensed controlled substances to patients who lived long distances from the pharmacy or who paid in cash despite the availability of insurance. According to the complaint, at least 10 patients died within 10 days of having controlled substance prescriptions filled at Beckman’s Greene Street Pharmacy.
“Pharmacies and pharmacists have an obligation to prevent the illegal dispensing of controlled substances,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will work with its law enforcement partners to hold responsible those who dispense potentially dangerous prescription drugs in violation of the law.”
“Those who fill and dispense controlled substances prescriptions, including for opioids, without fulfilling their responsibilities, fan the flames of the ongoing opioid epidemic,” said U.S. Attorney Erek L. Barron for the District of Maryland. “The U.S. Attorney’s Office for the District of Maryland will use all tools at its disposal — criminal and civil — to hold responsible those who violate the CSA.”
“The devastating effects of opioid overdoses and poisonings have affected many lives in our local communities,” said Special Agent in Charge Jarod Forget of the DEA Washington Division. “Health care providers have a great responsibility as it relates to dispensing medications to meet the health needs of our citizens. This includes being vigilant for any signs of controlled substance diversion or misuse. Our team is committed to protecting the safety and health of all Americans, which includes ensuring that all licensed professionals comply with the law and report dangerous behaviors.”
Beckman and Beckman’s Greene Street Pharmacy agreed to be bound by the consent decree. The injunction entered by U.S. District Judge Lydia Kay Griggsby for the District of Maryland prohibits the defendants from filling certain “red flag” prescriptions and requires the defendants to fill other prescriptions only with documentation justifying those prescriptions.
DEA Special Agent Thomas W. Adams of the Washington Division’s Hagerstown Resident Office investigated the case along with the Washington Division’s Baltimore Diversion Group. Senior Litigation Counsel Donald R. Lorenzen of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Alan C. Lazerow for the District of Maryland handled the case.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch.
The claims made in the complaint are merely allegations that the United States would need to prove if the case proceeded to trial.
Consent Decree Approved Among the United States and Cumberland, Maryland Based Pharmacy and Pharmacist Alleged to Have Illegally Dispensed Controlled SubstancesRead the Press Release
Baltimore, Maryland - U.S. District Judge Lydia K. Griggsby approved the United States’ consent decree with John A. Beckman, a Cumberland, Maryland based pharmacist, and Beckman’s Greene Street Pharmacy, Inc. (“Beckman’s Pharmacy”), resolving the United States’ civil allegations that Beckman and Beckman’s Pharmacy violated the Controlled Substances Act (“CSA”) in illegally dispensing controlled substances.
The consent decree was announced by United States Attorney for the District of Maryland Erek L. Barron; Principal Deputy Assistant Attorney General Brian M. Boynton, of the Justice Department’s Civil Division; and Special Agent in Charge Jarod A. Forget of the Drug Enforcement Administration – Washington Field Division.
“Irresponsible pharmacies and pharmacists fan the flames of the ongoing opioid epidemic,” said U.S. Attorney Erek L. Barron. “Our office intends to use all tools at our disposal—criminal and civil—to hold accountable those at every step in the supply chain who violate the CSA.”
“Pharmacies and pharmacists have an obligation to help stop the illegal distribution of controlled substances,” Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will work with its law enforcement partners to hold responsible those who dispense potentially dangerous prescription drugs in violation of the law.”
“The devastating effects of opioid overdoses and poisonings have affected many lives in our local communities,” said Special Agent in Charge Jarod Forget for the DEA Washington Division. “Healthcare providers have a great responsibility as it relates to dispensing medications to meet the health needs of our citizens. This includes being vigilant for any signs of controlled substance diversion or misuse. Our team is committed to protecting the safety and health of all Americans, which includes ensuring that all licensed professionals comply with the law and report dangerous behaviors.”
The Government alleges that at least since 2017, Beckman and Beckman’s Pharmacy knowingly filled fraudulent prescriptions for controlled substances, ignoring red flags that should have acted as warning signs that the prescriptions were not legitimate. More specifically, the Government alleges that, since at least 2017, Beckman and Beckman’s Pharmacy would often dispense dangerous combinations of controlled substances which are known to be pursued by drug abusers, but which seriously increase the risk of respiratory distress, overdose, and death, and did so without noting any reasonable explanation for these dangerous combinations. These combinations included the extremely dangerous “holy trinity,” which combines an opioid, a benzodiazepine, and carisoprodol. Additionally, Beckman and Beckman’s Pharmacy often dispensed a combination of an opioid and buprenorphine, a drug which is generally used to treat opioid dependence and regularly filled prescriptions for controlled substances that were paid for with cash even though the patient had insurance available to pay for the patient’s prescriptions.
The Centers for Disease Control and Prevention generally recommends that individuals should avoid daily dosages of opioids over 90 morphine milligram equivalents (MME), but Beckman and Beckman’s Pharmacy routinely dispensed prescriptions to patients causing their MME levels to be many times that amount—and upwards of 1000 daily MME. The Government alleges that Beckman and Beckman’s Pharmacy dispensed opioids to more than ten patients who subsequently died within ten days of the date of the prescription for those opioids.
Under the consent decree, Beckman and Beckman’s Pharmacy agree to pay a $120,000 civil monetary penalty and are required to identify certain red flags—including when a patient has traveled a long distance to the pharmacy, and when a patient is receiving an opioid and a benzodiazepine. Before filling prescriptions bearing those and other red flags, the consent decree requires Beckman and Beckman’s Pharmacy to document in detail any indications of abuse or diversion and the steps they took to ensure that the prescription was valid and was issued for a legitimate medical purpose, and that the prescription would not be abused or diverted for illegitimate purposes. Additionally, under the consent decree, Beckman and Beckman’s Pharmacy are prohibited from filling certain prescriptions, including when a patient presents prescriptions that, if filled, would cause the patient to take more than 90 daily MME; a combination of an opioid, a benzodiazepine, and carisoprodol; most prescriptions for buprenorphine without naloxone; any controlled substance paid for with cash even though the patient has insurance available to pay for the patient’s prescriptions; and any prescription for a controlled substance if the patient is an employee of Beckman’s Pharmacy.
Under the consent decree, if the DEA determines that Beckman or Beckman’s Pharmacy have violated any provision of the consent decree or if Beckman or Beckman’s Pharmacy do not implement the corrective action the DEA orders, the DEA can order Beckman and Beckman’s Pharmacy to cease ordering or dispensing controlled substances immediately.
The consent decree is not an admission of liability by Beckman or Beckman’s Pharmacy, nor a concession by the United States that its claims are not well founded.
The Court’s approval of this consent decree—the fourth such consent decree in the District of Maryland in the past two years—should again remind pharmacists and pharmacies of their corresponding responsibility to confirm the legitimacy of the prescriptions that they fill and that the Department of Justice intends to use all tools at its disposal—both criminal and civil—to combat the controlled substances epidemic which continues to plague our country, including here in Maryland.
U.S. Attorney Erek L. Barron and Principal Deputy Assistant Attorney General Brian M. Boynton commended the DEA Baltimore Division’s Office of Diversion Control and Tactical Diversion Squad for its work in the investigation. Mr. Barron and Mr. Boynton thanked Assistant United States Attorney Alan C. Lazerow and Donald R. Lorenzen, Senior Litigation Counsel with the Department of Justice’s Consumer Protection Branch, who handled the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to report fraud, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud.
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Colorado Businessman Sentenced to Prison for Employment Tax EvasionRead the Press Release
A Colorado man was sentenced today to 15 months in prison for evading the payment of more than $700,000 in employment taxes he owed to the IRS.
According to court documents and statements made in court, Frank Stevens of Bow Mar, Colorado, co-owned restaurants and an oil production business, which had employees from whose paychecks he withheld income and Social Security and Medicare taxes. Starting in approximately 2002 and continuing for many years, Stevens did not pay over the withheld payroll taxes to the IRS or file the required quarterly employment tax returns for his businesses. After failing to collect from the businesses, the IRS assessed the tax against Stevens personally. To prevent the IRS from collecting through bank levies the taxes he owed, Stevens kept the balances of his personal and business bank accounts low, often leaving them with only $0.01. Stevens transferred, or directed employees to transfer, just enough funds to cover expenses and then moved any remaining money to a bank account not subject to IRS levy. In total, Stevens caused a tax loss of approximately $737,128.
In addition to the term of imprisonment, U.S. District Judge Daniel D. Domenico ordered Stevens to serve three years of supervised release and to pay a $10,000 fine and $1,096,138.14 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorneys Peter Anthony and Julia Rugg of the Tax Division prosecuted the case.
Busby man sentenced to prison for strangling womanRead the Press Release
BILLINGS — A Busby man who admitted to strangling a woman while in a vehicle on the Northern Cheyenne Indian Reservation was sentenced today to 22 months in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
Tysawn Dantae Pine, 25, pleaded guilty in February to an indictment charging him with strangulation.
U.S. District Judge Susan P. Watters presided.
The government alleged in court documents that Pine and the victim, identified as Jane Doe, had been in a dating relationship. On April 9, 2022, Pine went to Jane Doe’s house at approximately 5:30 a.m. and demanded she open the door. Jane Doe refused and told Pine to leave because he was drunk. Pine then forced his way into the house and demanded she give him a ride to his grandmother’s house. Scared of Pine’s threats, Jane Doe drove him to his grandmother’s house and parked. The two argued inside the vehicle, and Pine began assaulting and strangling Jane Doe. Later that day, Jane Doe was examined for injuries at the hospital.
The U.S. Attorney’s Office prosecuted the case. The FBI and Bureau of Indian Affairs conducted the investigation.
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Browning man admits shooting, wounding man on Blackfeet Indian ReservationRead the Press Release
GREAT FALLS — A Browning man accused of shooting and wounding a man at a residence on the Blackfeet Indian Reservation admitted to an assault crime today, U.S. Attorney Jesse Laslovich said.
Lane Dale Spotted Eagle, 27, pleaded guilty to assault resulting in serious bodily injury. Spotted Eagle faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Nov. 30. Spotted Eagle was ordered to inpatient treatment pending sentencing.
The government alleged in court documents that in the afternoon of July 12, 2022, Spotted Eagle, armed with a 9mm pistol, entered a bedroom in a Browning house and shot the victim, identified as John Doe. Spotted Eagle is a schizophrenic and was experiencing paranoia at the time of the assault. Law enforcement detained Spotted Eagle shortly after the assault in a vehicle in the driveway. Spotted Eagle was covered in blood and armed with an AR-15 rifle.
Assistant U.S. Attorney Kalah A. Paisley is prosecuting the case. The FBI and Blackfeet Law Enforcement conducted the investigation.
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Brooklyn Man Convicted of Strongarm Extortion SchemeRead the Press Release
TRENTON, N.J. – A Brooklyn man was convicted of conspiring with others in a week-long strongarm extortion scheme in 2019, U.S. Attorney Philip R. Sellinger announced.
Endrit Kllogjeri, 29, was convicted on June 27, 2023, of conspiracy to commit Hobbs Act extortion and attempt to commit Hobbs Act extortion following a one-week trial before U.S. District Judge Zahid N. Quraishi in Trenton federal court. On June 13, 2023, co-defendant Francis Garzon pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to his role in the scheme.
According to court documents and evidence presented at trial:
From Dec. 1, 2019, through Dec. 9, 2019, Kllogjeri and Garzon conspired and attempted to extort a resident of Monmouth County, New Jersey, and the resident’s son, who lived in Brooklyn, New York. The victim was threatened with physical harm if the victim did not recover a bag containing property allegedly valued at $100,000 from the victim’s son. Kllogjeri and Garzon further demanded an additional payment of $100,000 as “interest” for the son’s possession of the bag. In connection with issuing threats against the victim, including threats to the victim’s family members, Garzon additionally brandished a revolver, pointing the weapon at the victim and cocking the revolver’s hammer. Over the ensuing week, Kllogjeri and Garzon communicated regularly with the victim telephone, continuing to threaten victim. Kllogjeri and Garzon were arrested together in a vehicle on Dec. 9, 2019 in Brooklyn. Moments before the arrest, Garzon had attempted to send the victim a text message confirming the victim’s plan to pay the demand.
Kllogjeri faces a maximum potential penalty of 20 years on each count of conspiracy to commit Hobbs Act extortion and attempted Hobbs Act extortion. Each count also carries a potential $250,000 fine.
U.S. Attorney Sellinger credited special agents with the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the conviction. He also thanked the Marlboro Township Police Department, under the direction of Chief Peter Pezzullo; and the New York City Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Eric A. Boden, Attorney-in-Charge of the Trenton Office, and Assistant U.S. Attorney Ian D. Brater of the Trenton Office.
Angelina County Man Sentenced for Trafficking Methamphetamine in East TexasRead the Press Release
TYLER, Texas – The final defendant has been sentenced in an East Texas drug trafficking operation in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Darrell Lynell Horace, Jr., 29, pleaded guilty to possession with intent to distribute methamphetamine and was sentenced to 63 months in federal prison today by U.S. District Judge Jeremy D. Kernodle.
According to information presented in Court, Horace and four others admitted to selling methamphetamine in Cherokee County, Texas. Horace also admitted to possessing a firearm as well as methamphetamine. One of Horace's co-defendants, Pablo Antonio Sandoval, 24, of Bakersfield, California, admitted to transporting large quantities of methamphetamine from California-based suppliers to Jacksonville. Upon delivery, the methamphetamine was repackaged and sold by Hunter Chase Davlin, 27, of Jacksonville, Sissy Gail Parks, 39, of Bullard, and Joshua Ryan Starkey, 30, of Jacksonville.
Davlin was sentenced to 108 months in prison on February 22, 2023; Parks was sentenced to 70 months in prison on December 14, 2022; Starkey was sentenced to 130 months in prison on November 4, 2022; and Sandoval was sentenced to 170 months in prison on April 18, 2023.
This case was investigated by Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Cherokee County Sheriff's Department, and the Jacksonville Police Department and prosecuted by Assistant U.S. Attorney Lucas Machicek.
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American headed back to prison after trying to export 5,680 rounds of ammunitionRead the Press Release
LAREDO, Texas – A 32-year-old U.S. citizen has been ordered to federal prison for attempting to smuggle thousands of rounds of ammunition to Mexico, announced U.S. Attorney Alamdar S. Hamdani.
Jesus Alberto Olivares pleaded guilty May 2 to attempting to export 5,680 rounds of pistol ammunition.
U.S. District Judge Marina Garcia Marmolejo has now ordered Olivares to serve 75 months in federal prison less than one year after he served a sentence for a drug distribution conspiracy.
While imposing the sentence, Judge Garcia Marmolejo noted there was likely only one purpose for this ammunition: to be delivered into the hands of cartel members in Mexico for their use, including killing people.
“This sentence sends a clear message: the Justice Department will be relentless in bringing to justice those responsible for smuggling illegal firearms and ammunition across our southern border,” said Deputy Attorney General Lisa O. Monaco. “We will continue to take aggressive action to combat the gun violence that endangers law enforcement and devastates communities in both Mexico and the United States.”
“The Mexican drug cartels are a threat to the residents and communities of the Southern District of Texas, in part because of their access to illicit firearms and ammunition,” said Hamdani. “Olivares’ decision to hide almost 6,000 rounds of ammunition in the panels of a truck as he attempted to cross a bridge into Mexico will send him to a federal prison for over six years and is a cautionary tale for anyone else who feels compelled to follow in his footsteps.”
On Feb. 27, Olivares drove his black PT Cruiser to the Lincoln Juarez International Bridge on his way home to Nuevo Laredo, Tamaulipas, Mexico. Authorities noted one of the vehicle’s doors seemed unusually heavy and rattled slightly as if something was hidden in them.
A subsequent search of all four of the Cruiser’s door panels yielded a total of 5,680 live rounds of pistol ammunition in assorted calibers - 3,600 rounds of .40 caliber S&W, 900 rounds of .380 caliber, 900 rounds of .45 caliber, 100 rounds of 9-millimeter and 180 rounds of .38 SPL +P ammunition.
Olivares admitted he had agreed to smuggle the ammunition into Mexico and had just received the ammunition a few hours prior. He personally hid the ammunition throughout the vehicle’s door and rear panels.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility.
Homeland Security Investigations (HSI) assigned to the HSI-Laredo Border Enforcement Task Force, working in coordination with the Laredo Police Department’s Texas Anti-Gang Task Force (TAG) conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Homero Ramirez prosecuted this case.
This case is being prosecuted as part of the joint federal, state and local Project Safe Neighborhoods (PSN) Program. In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old, evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
5 July 2023
Young man sent to prison for over 30 years for crime spreeRead the Press Release
HOUSTON – A 22-year-old Houston man has been ordered to federal prison for robbery and brandishing a firearm during a one-man crime spree that lasted approximately 12 hours, announced U.S. Attorney Alamdar S. Hamdani.
Jose Luis Perez Jr. pleaded guilty Jan. 19 to four counts each of interference with commerce by robbery and brandishing a firearm during and in relation to a crime of violence.
Today, Judge Alfred H. Bennett sentenced Perez to 36 months in prison for the robberies. He also received an additional 336 months for the firearms charges which must be served consecutively. The total 372-month prison term will be immediately followed by five years of supervised release. At the hearing, the court heard Perez is also alleged to have committed several robberies of individuals during the crime spree.
“This young man has thrown his most of his life away,” said Hamdani. “At 22 now, he will likely be an old man before his release from federal prison. Crime does not pay. Jose Luis Perez terrorized the Houston area for 12 long hours, robbing convenient stores and a gas station at gun point. Thanks to brave victims who relayed concise and expeditious information, law enforcement was able to stop his reign of terror before it became even worse.”
The charges stem from numerous commercial aggravated robberies that began on March 2, 2021, at approximately 11:15 p.m. and ended the following day before 1 p.m. During that 12-hour spree, Perez robbed at gunpoint a Circle K in Friendswood, a Cindie’s Number One in Fantasy and Fun adult novelty shop in Webster, the same Circle K in Friendswood for a second time and a Chevron gas station in Friendswood.
During the robberies, Perez would enter the commercial businesses armed with a rifle, point it at the store clerks and demand money from the registers. He would then leave in his vehicle which was a dark color Chevrolet. The clerks were able to give authorities a description of the vehicle along with a license plate number.
Law enforcement was on alert located him driving the described vehicle after he committed the Chevron robbery. A pursuit ensued. It eventually ended, at which time Perez exited the vehicle with the assault rifle. Authorities took him into custody without incident.
At the time of his plea, Perez admitted he robbed the commercial businesses with the assault rifle.
Perez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Friendswood Police Department conducted the investigation with the assistance of the Houston Police Department and Task Force officers with the FBI. Assistant U.S. Attorney Jill Stotts prosecuted the case.
Young adult guilty of producing child pornographyRead the Press Release
LAREDO, Texas – A 21-year-old Laredo resident has admitted he recorded sexual material and posted it on social media, announced U.S. Attorney Alamdar S. Hamdani.
On June 5, 2022, Victor Antonio Puente rented a motel room in Laredo. There, he engaged in sexual activity with a 15-year-old female victim. He used his personal cell phone to record and photograph sexually explicit conduct between him and the minor and then uploaded the content via social media.
A forensic analysis of Puente’s cell phone revealed videos of him engaging in intercourse with the victim. Other videos showed him fondling her while both are naked or were of her naked body while she slept.
The minor victim’s family was able to discover Puente’s location from a third-party and contacted law enforcement.
Puente denied that the minor victim was in the room. However, they located her and took her to a local hospital for observation and treatment.
U.S. District Judge Marina Garcia Marmolejo will impose sentencing Sept. 28. At that time, Puente faces a minimum of 15 and up to 30 years in federal prison.
He has been and will remain in custody pending that hearing.
The FBI conducted the investigation with the assistance of the Laredo Police Department. Assistant U.S. Attorneys (AUSAs) Homero Ramirez and Michael P. Makens and former AUSA April Ayers-Perez prosecuted the case.
It was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
U.S. Attorney Elected to Serve as Co-Chair of the Criminal Justice Coordinating Council for D.C.Read the Press Release
WASHINGTON – U.S. Attorney Matthew M. Graves was elected to serve a two-year term as Co-Chair of the Criminal Justice Coordinating Council for the District of Columbia, beginning in July 2023. The CJCC, chaired by the District’s Mayor, is an independent District agency focused on enhancing public safety and the fair administration of justice in the District of Columbia. Mr. Graves was elected to this position by fellow members of the CJCC, which include the Mayor, members of the D.C. Council, the Chief Judge of D.C. Superior Court, the Chief of the Metropolitan Police Department, the Attorney General of the District of Columbia, and other federal and District justice system agency leaders.
“I am deeply humbled and honored that a council of the stakeholders responsible for keeping our community safe—our elected officials, the Metropolitan Police Department, and other federal and local justice leaders—has elected me to help steer the important work of the CJCC,” said U.S. Attorney Graves. “The safety of our community is our highest priority, and successful coordination among the officials and agencies responsible for protecting our community is critical to our mission.”
For more on the history of the CJCC, visit: https://cjcc.dc.gov/page/history-cjcc
Two New Orleans Men Sentenced in Connection with Jung Hotel ShootingRead the Press Release
NEW ORLEANS, LOUISIANA – DARIUS DANNEL, age 28, and TERRELL MOORE, age 25, both of New Orleans, were sentenced on June 28, 2023 by United States District Judge Ivan L.R. Lemelle, announced U.S. Attorney Duane A. Evans. DANNEL received a total sentence of 360 months imprisonment, while MOORE received a total sentence of 330 months imprisonment. In addition, both defendants received five years of supervised release following their term of imprisonment, along with a $400 mandatory special assessment fee.
According to court documents, DANNEL and MOORE previously pled guilty to attempted Hobbs Act Robbery, conspiracy to possess with the intent to distribute quantities of marijuana, using, carrying, and discharging a firearm during and in relation to a drug trafficking crime, and conspiracy to possess firearms in furtherance of a drug trafficking crime.
This prosecution stems from a December 28, 2020 shootout that occurred at the Jung Hotel in New Orleans. DANNEL and MOORE, along with four other co-defendants, entered the Jung Hotel in an attempt to rob drug dealers (hotel occupants) of significant amounts of marijuana. During the attempted robbery, a shootout ensued with over 80 shots fired and three people wounded. These events were documented by video footage from Jung Hotel security cameras. Three of the marijuana distributors involved in the shootout, Clarence Santiago, Brian Jacob, and Malik Fernandez, pled guilty to similar crimes before United States District Court Judge Greg G. Guidry. On March 7, 2023, Judge Guidry sentenced Santiago to a 30-year term of imprisonment. Defendants Everson, Batiste, Ross, Howard, and Fernandez are scheduled to be sentenced on July 12, 2023 and Brian Jacob will be sentenced on October 31, 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 and was prosecuted by Assistant United States Attorneys Maurice Landrieu of the Narcotics Unit and Elizabeth Privitera, Chief of the Violent Crimes Unit.
Theft of Social Security Funds Result in Federal Prison Sentence for Eunice ManRead the Press Release
LAKE CHARLES, La. – A Eunice, Louisiana man has been sentenced in the Western District of Louisiana for theft of funds from the Social Security Administration, announced United States Attorney Brandon B. Brown.
Scotty Paul Fournerat, 50, was sentenced by United States District Judge James D. Cain, Jr. to two 37-month terms of imprisonment to run concurrently, followed by two 3-year terms of supervised release which will also run concurrently. In addition, Fournerat was ordered to pay restitution to the SSA in the amount of $49,792.
The Social Security Administration (SSA) reported that M.V., a Title XVI Supplemental Security Income Disability (SSID) program participant and the aunt of Fournerat, failed to appear for a redetermination hearing in October 2017. The SSA subsequently suspended payments to M.V. due to her failure to cooperate with the redetermination. Through their investigation, the SSA learned that M.V. had died on January 2, 2012, some five years earlier, but they were not made aware of her death. SSA determined that two days following M.V.’s death an unidentified individual changed the bank account associated with her account so that the payments would route to Comerica Bank and the payments could be accessible by debit card.
Fournerat admitted to using the debit cards to access the SSID funds for his own personal use by making purchases and ATM withdrawals at various locations in St. Landry and Evangeline Parishes. He admitted that he had not applied for the program funds and that he knew the funds were for the sole use of M.V. while she was alive, but yet he willingly and knowingly used the funds for his own personal benefit. Fournerat pleaded guilty to two counts of theft of government money on March 22, 2023.
This case was investigated by the Social Security Administration, Office of Inspector General, and prosecuted by Assistant U.S. Attorney Danny Siefker.
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