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27 June 2023
Idaho Business Owner Sentenced to Probation for Criminal Clean Air Act Violation Involving Asbestos ContaminationRead the Press Release
Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Alexander Borys Mischenko, age 76, of Priest River, Idaho, was sentenced to three years of probation and a fine of $12,060 for criminal violation of the Clean Air Act in connection with asbestos contamination at a site in Spokane in 2018. Senior District Judge Rosanna Malouf Peterson announced the sentence.
According to the plea agreement and other information disclosed during court proceedings, in October 2017, Mischenko and his company, Buck Creek Sales, signed a contract to dismantle a legacy industrial building located on Magnesium Road in North Spokane and known as “Building 5.” Mischenko’s contract included funding to commission an asbestos survey to determine whether and to what extent Building 5 contained asbestos.
Asbestos is a naturally-occurring mineral that, due to its insulating and fire-resistant properties, was a commonly-used material in buildings constructed prior to 1980, such as Building 5. Because inhalation of asbestos fibers has been linked to various dangerous lung conditions, including mesothelioma, asbestosis, and lung cancer, asbestos-containing material is regulated by the Environmental Protection Agency (EPA) and, in Spokane County, by the Spokane Regional Clean Air Agency (SRCAA).
According to court documents and information discussed in court, in late 2017, a certified asbestos inspector did perform an asbestos survey of Building 5. The survey showed significant quantities of asbestos-containing material in Building 5, including approximately 2,600 linear feet of asbestos-containing material known as thermal systems insulation (TSI). The survey noted that the asbestos-containing TSI was “friable” (that is, easily crumbled with hand pressure), and, therefore, “will require removal by a licensed asbestos contractor prior to any renovation or demolition activity that would directly impact these materials.” Mischenko was provided a copy of the survey report on or about December 4, 2017.
Subsequent to receiving the survey results, Mischenko, who was not a licensed asbestos contractor, and at least one employee, cut the asbestos-containing TSI off of the pipe and disposed of the pipe. Mischenko then placed the asbestos-containing TSI into 14 unsealed sacks and one open-top wooden crate, and moved the sacks and the crate to a nearby building, where they remained until they were found by inspectors from SRCAA and, later, EPA. Mischenko did not notify SRCAA or EPA prior to engaging in the work, which, due to the work methods employed by Mischenko, released significant quantities of asbestos fibers into the air as well as scattered on the floor of Building 5.
In September 2022, U.S. Attorney Waldref, who previously served as Trial Attorney with DOJ’s Environment and Natural Resources Division and an environmental law professor at Gonzaga University’s School of Law, was selected to lead the Environmental Justice & Environmental Issues Subcommittee for the Attorney General’s Advisory Committee. As the subcommittee chair, U.S. Attorney Waldref plays a key role in leading and coordinating DOJ’s criminal and civil environmental enforcement efforts.
“Environmental Justice is a critical public health priority,” said U.S. Attorney Waldref. “When businesses or individuals cut corners to save money, and fail to take seriously the public health risk posed by dangerous contaminants like asbestos, the entire community is harmed, but the harm falls disproportionately on marginalized and disadvantaged members of our community who are more likely to be affected and less likely to have access to health care and other services.”
“The defendant was responsible for the safe – and legal – removal of material containing asbestos,” said Acting Special Agent in Charge Benjamin Carr of EPA’s criminal enforcement program in Washington. “The defendant has been sentenced for doing just the opposite and put workers and the general public at risk.”
Senior District Judge Peterson sentenced Mischenko to 3 years of federal probation, during which time he will be supervised by the court and is prohibited from engaging in, performing, or supervising any asbestos-related work as well as other salvage work. Judge Peterson also imposed a $12,060 fine to ensure that Mischenko did not financially profit from his misconduct.
“I commend the exceptional work by SRCAA in uncovering this dangerous situation and quickly working to protect our community, as well as the stellar investigative work by EPA’s Criminal Investigation Division,” continued U.S. Attorney Waldref. “We will continue to work with our state and federal law enforcement partners to protect public health and our precious natural resources.”
This case was investigated by EPA’s Criminal Investigation Division. Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene and Special Assistant United States Attorney Gwendolyn Russell prosecuted this case on behalf of the United States.
Case No. 2:20-CR-00175-RMP
Huntington Man Pleads Guilty to Federal Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – TJ Jazz Cremeans, 21, of Huntington, pleaded guilty today to theft of firearms from a federal firearms licensee.
According to court documents and statements made in court, on July 15, 2022, Cremeans and Brennon Michael Adkins, 22, broke into Tri-State Pawn and Jewelry in Huntington to steal various electronics from the store’s inventory. Cremeans admitted that he stole three firearms during the breaking and entering: a DPMS model AR-15 5.56mm rifle, a Savage Arms model 111 .30-06-caliber rifle, and a Stoeger model M3000 12-gauge shotgun.
Cremeans is scheduled to be sentenced on October 10, 2023, and faces a maximum penalty of 10 years in prison, up to three years of supervised release, and a $250,000 fine.
Adkins pleaded guilty to possession of a stolen firearm on May 1, 2023, and admitted that he possessed the Stoeger model M3000 12-gauge shotgun following the breaking and entering. Adkins is scheduled to be sentenced on August 14, 2023.
Nigel Jamille Coats, 19, of Huntington, pleaded guilty to possession of a stolen firearm on June 20, 2023, and admitted that he possessed the DPMS, model AR-15 5.56mm rifle shortly after the breaking and entering and theft was completed. Coats is scheduled to be sentenced on September 25, 2023.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Huntington Police Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Troy D. Adams 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-202.
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Houstonian imprisoned for distributing kilos of meth for Gulf CartelRead the Press Release
HOUSTON – A 61-year-old U.S. citizen has been ordered to federal prison following his conviction for conspiracy to distribute kilos of crystal meth, announced U.S. Attorney Alamdar S. Hamdani.
Carlos Rodriguez-Gayton pleaded guilty Nov. 8, 2022.
Today, U.S. District Judge David Hittner sentenced Rodriguez-Gayton to a total of 168 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the defense asked for a lower sentence based, in part, on their position he held a minor role in the conspiracy. However, the court noted that working in concert with a cartel to conduct four drug deals of a kilogram or more is not minor.
Rodriguez-Gayton’s arrest and ultimate conviction stems from an investigation into individuals affiliated with the Gulf Cartel operating in Houston.
From October 2020 through January 2021, Rodriguez-Gayton sold approximately three kilos of crystal meth over the course of multiple transactions that occurred in Houston. The investigation further revealed that on Jan. 21, 2021, another individual purchased an additional two kilos of crystal meth from Rodriguez-Gayton.
Law enforcement was able to take all drugs into their possession before they could hit the streets of Houston.
Rodriguez-Gayton has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration, FBI, Houston Police Department, Harris County Precinct 5 Constable’s Office and the Harris County Sheriff’s Office conducted this investigation as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative. Assistant U.S. Attorney Shelley J. Sullivan prosecuted the case.
These such cooperative matters provide 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 specific mission of the DEA Strike Force is to identify and prosecute all members of narcotics trafficking organizations. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Harrisburg Man and Woman Charged with Conspiring to Steal Cell Phone ShipmentsRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Parmod Kumar, age 40, and Reecha Saini, age 36, both of Harrisburg, Pennsylvania, were charged yesterday in an information with conspiring to steal interstate shipments of cell phones.
According to United States Attorney Gerard M. Karam, the information alleges that from 2018 to 2021, Kumar and Saini enlisted at least one employee at a UPS facility in Harrisburg to steal packages that they believed contained smartphones. Kumar and Saini then paid the employee for the phones and arranged for their sale at a convenience store in Harrisburg. The conspiracy involved the theft of phones with a total value of over $142,000.
The case was investigated by Homeland Security Investigations and the Swatara Township Police Department. Assistant U.S. Attorney Carlo D. Marchioli is prosecuting the case.
The maximum penalty under federal law for this offense is 5 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Harlem man admits assault crime for drive-by shooting of residence on Fort Belknap Indian reservationRead the Press Release
GREAT FALLS — A Harlem man accused of shooting an occupied house in Fort Belknap Agency on the Fort Belknap Indian Reservation admitted to an assault crime today, U.S. Attorney Jesse Laslovich said.
Tyree Daniel Doney, 21, pleaded guilty to assault with a dangerous weapon. Doney 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 Oct. 15. Doney was released pending further proceedings.
In court documents, the government alleged that on Jan. 19, a man, identified as John Doe, was inside his residence with his family, including two children. John Doe heard multiple gunshots, and one bullet lodged inside his residence. John Doe feared that he or his family would be harmed from the drive-by shooting. Law enforcement learned that Doney was in the area at the time of the shooting, and Doney ultimately admitted to firing the gunshots into John Doe’s home. Doney did so, in part, because Doney was upset about a physical fight he had with John Doe four months prior. Officers recovered 9mm casings outside John Doe’s residence, 9mm casings inside Doney’s vehicle and the 9mm firearm inside Doney’s residence.
Assistant U.S. Attorney Ryan G. Weldon is prosecuting the case. The FBI conducted the investigation.
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Grass Valley Man Sentenced to 10 Years in Prison for a Fentanyl Trafficking Conspiracy and other Narcotics OffensesRead the Press Release
SACRAMENTO, Calif. — Nathaniel Opondo Hubbert, 42, of Grass Valley, was sentenced today to 10 years in prison for conspiring to possess and distribute fentanyl, possession with intent to distribute fentanyl, and possession with intent to distribute heroin and methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in June 2020, Hubbert conspired with Steven Lawrence Robinson, 36, of Granite Bay, and others, to possess and distribute fentanyl in Placer County. A search of Robinson’s residence on June 2, 2020, resulted in the discovery of over 40 grams of fentanyl involved in this conspiracy. On June 24, 2020, a probation search of two hotel rooms Hubbert had rented, and a subsequent booking search of his person, resulted in the discovery of methamphetamine, heroin, and additional fentanyl. Robinson and Hubbert were connected to at least one overdose of a victim who had to be given medical treatment after using drugs purchased from Hubbert.
On March 26, 2021, Robinson was sentenced to five years in prison for his role in the fentanyl trafficking conspiracy.
This case was the product of an investigation by the Drug Enforcement Administration, the Lincoln Police Department, the Placer County District Attorney’s Office, the Placer County Sheriff’s Office, and the Roseville Police Department. Assistant U.S. Attorney Adrian T. Kinsella prosecuted the case.
Gloucester City Business Owner Sentenced to 30 Months in Prison for Payroll Tax Fraud and Pandemic Loan FraudRead the Press Release
CAMDEN, N.J. – The owner of a business in Gloucester City, New Jersey, was sentenced today to 30 months in prison for failing to pay over payroll taxes to the IRS, failing to file personal income tax returns, and fraudulently obtaining a Paycheck Protection Program (PPP) loan, U.S. Attorney Philip R. Sellinger announced.
John Degan, 69, of Philadelphia, Pennsylvania, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of failing to collect, account for, and pay over payroll taxes, one count of failure to file income tax returns with the IRS, and one count of bank fraud. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Degan was the owner and operator of Companion Services Group Inc., a building maintenance and restoration service company in Gloucester City. Companion provided architectural maintenance and restoration services, which includes restroom maintenance, glass restoration, and graffiti removal.
Degan admitted that for tax years 2016 through 2020, he willfully failed to file payroll tax returns and failed to pay over $600,629 in withheld employment taxes on behalf of his employees. Degan attempted to conceal from the IRS over $4.4 million in wages that he paid to himself and his employees by not filing and submitting Forms W-2 or Form W-3 to the Social Security Administration (SSA).
Degan admitted that he received a yearly salary that ranged from $140,000 to $170,000 from Companion, willfully failed to file his federal income tax returns for tax years 2016 through 2020, and has not filed a tax return since 2003. He also failed to file the corporate tax returns for Companion, a business that generated more than $1.4 million in gross receipts yearly.
Degan also submitted a fraudulent application to a lender to obtain a PPP loan. In April 2020, Degan submitted a PPP application for Companion in which he falsely represented to the lender that Companion had employees and payroll expenses. In further support of his application, Degan submitted various IRS Forms to establish that he was paying compensation to his employees. Those forms were never actually submitted to the IRS; instead, they were false forms that were only created and used for the purpose of securing the loan.
Based on Degan’s misrepresentations, the lender approved the PPP loan and disbursed $193,407 in federal COVID-19 emergency relief funds.
In addition to the prison term, Judge Kugler sentenced Degan to three years of supervised release. Restitution will be determined at a later date.
U.S. Attorney Sellinger credited special agents of the IRS – Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins in Newark, with the investigation leading to today’s sentencing.
The government is represented by Jason M. Richardson, Attorney in Charge of the U.S. Attorney’s Office in Camden.
Gardena Woman Sentenced to 2 Years in Federal Prison for Throwing Molotov Cocktail Inside Torrance Bank BranchRead the Press Release
LOS ANGELES – A South Bay woman was sentenced today to 24 months in federal prison for throwing a Molotov cocktail inside a bank in Torrance after having a dispute with the branch manager.
Teranee Millet, 35, of Gardena, was sentenced by United States District Judge Stanley Blumenfeld Jr.
Millet pleaded guilty on March 21 to unlawful possession of a firearm and destructive device.
On September 20, 2021, Millet entered a Bank of America branch in Torrance. She spoke to the bank manager and demanded to be helped by another teller because she believed she had been waiting in line for too long.
When the bank manager informed her that no other tellers were available and she would have to continue waiting, Millet used profane language and then yelled, “I’m going to blow this bitch up!” In response, the bank manager called 911 and informed law enforcement of Millet’s comments.
A few minutes later, Millet returned to the bank branch and threw a Molotov cocktail into the bank, causing a fire in the middle of the bank. A bank customer successfully extinguished the fire. On her way out of the bank’s parking lot and before law enforcement arrived, she threatened another customer and threw a glass bottle at the customer’s truck, causing minor damage to the vehicle. Police responded within a few minutes, secured the scene and recovered the item that Millet threw on the floor.
Law enforcement used bank surveillance photos to help identify Millet.
Millet was arrested in Georgia in December 2021, after she led law enforcement on a chase in a stolen U-Haul van that ended with the van crashing, according to court documents. Inside the van, law enforcement recovered a gym bag containing four packs of glass bottles with tissue paper inserted inside the bottles, a can of lighter fluid and a five-gallon can of gasoline, according to court documents. Millet sustained injuries in the crash and later received medical treatment. She has been in custody since that time.
The FBI, the Torrance Police Department, and the Torrance Fire Department investigated this matter.
Assistant United States Attorney Kellye Ng of the Violent and Organized Crime Section prosecuted this case.
Four More Arrested as Tractor-Trailer Smuggling Investigation ProgressesRead the Press Release
SAN ANTONIO – Four Mexican nationals were arrested Monday in San Antonio, Houston and Marshall, Texas, for their alleged connection to the 2022 tractor-trailer smuggling incident, which resulted in the death of 53 and injury of 11 undocumented noncitizens.
A superseding indictment returned by a San Antonio Grand Jury on June 7, alleges that Riley Covarrubias-Ponce aka Rrili aka Rilay, 30; Felipe Orduna-Torres aka Cholo aka Chuequito/Chuekito aka Negro, 28; Luis Alberto Rivera-Leal aka Cowboy, 37; and Armando Gonzales-Ortega aka El Don aka Don Gon, 53, participated in a human smuggling organization (HSO) which illegally brought adults and children from Guatemala, Honduras and Mexico into the United States between December 2021 and June 2022. The superseding indictment alleges that the smugglers worked in concert to transport and facilitate the transportation of the migrants, sharing routes, guides, stash houses, trucks, trailers, and transporters in order to consolidate costs, minimize risks, and maximize profit. The HSO maintained a variety of tractors and trailers for their smuggling operations, some of which were stored at a private parking lot in San Antonio.
The indictment alleges that in the days leading up to June 27, 2022, Covarrubias-Ponce, Orduna-Torres, and others exchanged the names of undocumented noncitizens who would be smuggled in an upcoming tractor-trailer load. The four new defendants charged in the superseding indictment allegedly orchestrated the retrieval of an empty tractor-trailer and its corresponding hand-off to the driver on June 27. The driver, Homero Zamorano, Jr. of Elkhart, Texas, was previously charged in a July 2022 indictment along with Christian Martinez, of Palestine, Texas. Orduna-Torres allegedly provided the Laredo address at which Zamorano loaded the migrants into the tractor trailer. The indictment also alleges that Gonzalez-Ortega traveled to Laredo to meet the tractor-trailer, where at least 66 undocumented individuals, including eight children and one pregnant woman, were loaded for smuggling. According to the superseding indictment, Martinez, Covarrubias-Ponce, Orduna-Torres, Rivera-Leal, and Gonzales-Ortega then coordinated, facilitated, passed messages, and made each other aware of the tractor-trailer’s progress.
The superseding indictment alleges that some of the defendants were aware that the trailer’s air-conditioning unit was malfunctioning and would not blow any cool air to the migrants inside. When members of the organization met the tractor-trailer at the end of its approximately three-hour journey to San Antonio, they opened the doors to find 48 of the migrants were either already dead or had died on site, including the pregnant woman. 16 of the undocumented individuals were transported to hospitals—five of whom died.
Each defendant is charged with one count of conspiracy to transport illegal aliens resulting in death; one count of conspiracy to transport of illegal aliens resulting in serious bodily injury and placing lives in jeopardy; one count of transportation of illegal aliens resulting in death; and one count of transportation of illegal aliens resulting in serious bodily injury and placing lives in jeopardy. If convicted, they each face a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
“Human smugglers prey on migrants’ hope for a better life – but their only priority is profit,” said Attorney General Merrick B. Garland. “Tragically, 53 people who had been loaded into a tractor-trailer in Texas and endured hours of unimaginable cruelty lost their lives because of this heartless scheme. Human smugglers who put peoples’ lives at risk for profit and break our laws cannot hide for long: We will find you and bring you to justice.”
“One year ago today, an unthinkable crime perpetrated by human smugglers at our southern border caused the death of 53 human beings,” said Deputy Attorney General Lisa O. Monaco. “But today’s arrests demonstrate that those who seek to profit from desperation will be brought to justice. Working with international partners, the Department of Justice is striking back at international organized crime and sending a clear message that there is no safe haven for trafficking in firearms, deadly narcotics, or human beings.”
“The allegations in the indictment are horrifying,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “Dozens of desperate, vulnerable men, women and children put their trust in smugglers who abandoned them in a locked trailer to perish in the merciless south Texas summer. Thanks to our law enforcement partners at the local, state, and federal levels—with Homeland Security Investigations San Antonio Division leading the investigation—we are one step closer to delivering justice for those migrants and their families.”
“This horrific tragedy underscores the callous disregard criminal smuggling organizations have for human life, including the lives of children,” said Assistant Attorney General Kenneth A. Polite, Jr. for the Justice Department’s Criminal Division. “These indictments and arrests are another step forward in obtaining justice and accountability for these senseless deaths. Joint Task Force Alpha will remain steadfast in its efforts to thwart these deadly schemes driven by greed at the expense of safety and security.”
“These additional arrests are a result of the hard work and determination displayed by our agents and prosecutors in their efforts to identify those who were responsible for deadliest human smuggling event in U.S. history,” said Special Agent in Charge Craig Larrabee for the Homeland Security Investigations San Antonio Division. “HSI will continue investigating all leads to ensure that justice will be served for the deceased, the injured, and their families. We will remain committed to leveraging our broad range of authorities to dismantle all transnational criminal organizations engaged in human smuggling around the globe.”
HSI is investigating the case with the assistance of the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives, and has received tremendous support from Customs and Border Protection; Border Patrol; Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations; the San Antonio Police Department; the Bexar County Sheriff’s Office; the San Antonio Fire Department; the Marshall Police Department; and the Palestine Police Department.
Assistant U.S. Attorneys Eric Fuchs, Sarah Spears and Amanda Brown are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
These charges resulted from the coordinated efforts of Joint Task Force Alpha (JTFA). The U.S. Attorney’s Office for the Western District of Texas is part of the JTFA, which was established by Attorney General Merrick B. Garland in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security (DHS), to enhance U.S. enforcement efforts against the most prolific and dangerous human smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador, and Honduras. The Task Force focuses on disrupting and dismantling smuggling and trafficking networks that abuse, exploit, or endanger migrants, pose national security threats, and are involved in organized crime. JTFA consists of federal prosecutors and attorneys from U.S. Attorneys’ Offices along the Southwest Border (District of Arizona, Southern District of California, Southern District of Texas, and Western District of Texas), from the Criminal Division and the Civil Rights Division, along with law enforcement agents and analysts from DHS’s Immigration and Customs Enforcement, and Customs and Border Protection’s U.S. Border Patrol, the FBI and the Drug Enforcement Administration.
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Four Arrested for Tractor-Trailer Smuggling Incident that Resulted in 53 DeathsRead the Press Release
Four Mexican nationals were arrested yesterday in San Antonio, Houston, and Marshall, Texas, for their alleged roles in a tractor-trailer smuggling incident that resulted in 53 deceased and 11 injured undocumented individuals one year ago today.
“Human smugglers prey on migrants’ hope for a better life – but their only priority is profit,” said Attorney General Merrick B. Garland. “Tragically, 53 people who had been loaded into a tractor-trailer in Texas and endured hours of unimaginable cruelty lost their lives because of this heartless scheme. Human smugglers who put people’s lives at risk for profit and break our laws cannot hide for long: We will find you and bring you to justice.”
“Today’s announcement is another important step in our unprecedented effort against smugglers,” said Secretary of Homeland Security Alejandro N. Mayorkas. “These indictments are the direct result of a whole of government effort to prevent these horrific crimes and is the largest campaign of its kind in U.S. history. Human smugglers will do anything to turn a profit, and the Department of Homeland Security (DHS) will continue to do everything possible to stop them. I am grateful for the leadership of our Homeland Security Investigation (HSI) team and U.S. Customs and Border Protection for seeking justice for the 53 lives lost last year.”
These charges resulted from the coordinated efforts of Joint Task Force Alpha (JTFA), which Attorney General Garland established in June 2021 in partnership with Secretary Mayorkas, to strengthen the departments’ overall efforts to combat these crimes based on the rise in prolific and dangerous smuggling emanating from Central America and impacting our border communities. JTFA enhances U.S. enforcement efforts against the most prolific and dangerous human smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador, and Honduras.
According to court documents, between December 2021 and June 2022, Riley Covarrubias-Ponce, aka Rrili, aka Rilay, 30; Felipe Orduna-Torres, aka Cholo, aka Chuequito/Chuekito, aka Negro, 28; Luis Alberto Rivera-Leal, aka Cowboy, 37; and Armando Gonzales-Ortega, aka El Don, aka Don Gon, 53, are alleged to have participated in a human smuggling organization which illegally brought adults and children from Guatemala, Honduras, and Mexico into the United States. The alleged smugglers worked in concert to transport the migrants by sharing routes, guides, stash houses, trucks, trailers, and transporters to consolidate costs, minimize risks, and maximize profit. The organization maintained a variety of tractors and trailers for their smuggling operations, some of which were stored at a private parking lot in San Antonio.
“One year ago today, an unthinkable crime perpetrated by human smugglers at our southern border caused the death of 53 human beings,” said Deputy Attorney General Lisa O. Monaco. “But today’s arrests demonstrate that those who seek to profit from desperation will be brought to justice. Working with international partners, the Department of Justice is striking back at international organized crime and sending a clear message that there is no safe haven for trafficking in firearms, deadly narcotics, or human beings.”
“This horrific tragedy underscores the callous disregard criminal smuggling organizations have for human life, including the lives of children,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “These indictments and arrests are another step forward in obtaining justice and accountability for these senseless deaths. Joint Task Force Alpha will remain steadfast in its efforts to thwart these deadly schemes driven by greed at the expense of safety and security.”
The indictment alleges that in the days leading up to June 27, 2022, Covarrubias-Ponce, Orduna-Torres, and others exchanged the names of undocumented individuals who would be smuggled in a tractor-trailer. The four new defendants charged in the superseding indictment allegedly orchestrated the retrieval of an empty tractor-trailer and its corresponding hand-off to the driver on June 27. The driver, Homero Zamorano Jr. of Elkhart, Texas, was previously charged in a July 2022 indictment along with Christian Martinez, of Palestine, Texas. Orduna-Torres allegedly provided the Laredo, Texas, address at which Zamorano loaded the migrants onto the tractor trailer. The indictment also alleges that Gonzalez-Ortega traveled to Laredo to meet the tractor-trailer, where at least 66 undocumented individuals, including eight children and one pregnant woman, were loaded into the back to be smuggled. Martinez, Covarrubias-Ponce, Orduna-Torres, Rivera-Leal, and Gonzales-Ortega then allegedly coordinated, facilitated, passed messages, and kept each other updated on the tractor-trailer’s progress.
“The allegations in the indictment are horrifying,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “Dozens of desperate, vulnerable men, women, and children put their trust in smugglers who abandoned them in a locked trailer to perish in the merciless south Texas summer. Thanks to our law enforcement partners at the local, state, and federal levels – with the Homeland Security Investigations San Antonio Division leading the investigation – we are one step closer to delivering justice for those migrants and their families.”
Some of the defendants charged were allegedly aware that the trailer’s air-conditioning unit was malfunctioning and would not blow any cool air to the migrants inside. When members of the organization met the tractor-trailer at the end of its nearly three-hour journey to San Antonio, they opened the doors to find 48 of the migrants, including the pregnant woman, were already dead. Sixteen of the undocumented individuals were transported to hospitals, and five of them died there.
“One year ago today, HSI responded to a mass casualty human smuggling event that occurred in San Antonio, which resulted in the death of 53 undocumented noncitizens from Mexico, Guatemala, and Honduras,” said Senior Official Performing the Duties of Deputy Director PJ Lechleitner of Immigration and Customs Enforcement (ICE). “The indictments announced today emphasize that we will work tirelessly to bring to justice those who are responsible for this horrible tragedy. HSI continues investigative efforts with Joint Task Force Alpha and international partners to dismantle smuggling networks that demonstrate no regard for human life.”
Each defendant is charged with one count each of conspiracy to transport illegal aliens resulting in death, conspiracy to transport illegal aliens resulting in serious bodily injury and placing lives in jeopardy, transportation of illegal aliens resulting in death, and transportation of illegal aliens resulting in serious bodily injury and placing lives in jeopardy. If convicted on the top counts, they each face a maximum penalty of life in prison.
HSI is investigating the case with valuable assistance from Customs and Border Protection, Border Patrol, ICE Enforcement and Removal Operations, FBI, ATF, San Antonio Police Department, Bexar County Sheriff’s Office, San Antonio Fire Department, Marshall Police Department, and Palestine Police Department.
Assistant U.S. Attorneys Eric Fuchs, Sarah Spears, and Amanda Brown for the Western District of Texas are prosecuting the case.
Since its creation, JTFA has successfully increased coordination and collaboration between the Justice Department, DHS, and other interagency law enforcement participants, and with foreign law enforcement partners, including in El Salvador, Guatemala, Honduras, and Mexico; targeted those organizations that have the most significant impact on the United States; and coordinated significant smuggling indictments and extradition efforts in U.S. Attorneys’ Offices across the country. JTFA is comprised of prosecutors from southwest border U.S. Attorneys’ Offices, including the Southern District of Texas, the Western District of Texas, the District of New Mexico, the District of Arizona, and the Southern District of California. Dedicated support for the task force is also provided by numerous components of the Justice Department’s Criminal Division that are part of JTFA – led by the Human Rights and Special Prosecutions Section (HRSP) and supported by the Office of Prosecutorial Development, Assistance, and Training (OPDAT), the Narcotic and Dangerous Drug Section (NDDS), the Money Laundering and Asset Recovery Section (MLARS), the Office of Enforcement Operations (OEO), the Justice Department’s Office of International Affairs (OIA), and the Organized Crime and Gang Section (OCGS). JTFA is made possible by substantial law enforcement investment from the DHS, FBI, DEA, and other partners.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former officer convicted of smuggling cocaineRead the Press Release
McALLEN, Texas – A federal jury has returned guilty verdicts against a 51-year-old Raymondville resident for trafficking drugs, announced U.S. Attorney Alamdar S. Hamdani.
The jury deliberated for two hours before convicting Juan Posas Jr. of trafficking cocaine and conspiracy to do so.
Posas is a former Customs and Border Protection (CBP) officer. At trial, the jury heard that on June 6, 2022, Posas traveled from Raymondville to a Home Depot in Weslaco where he met with Alexis Soria-Soria, 25, a Mexican national illegally residing in the United States. Soria then transferred a box containing approximately 20 kilograms of cocaine into Posas’ truck.
At trial, the jury heard recordings of phone conversations in which Posas helped plan the drug smuggling attempt.
However, the defense attempted to convince the jury that Soria approached him in the parking lot and simply asked if he wanted free fruits, then placed a box of fruits in his car. He said he never checked the box to see what was inside. The jury did not believe his claims and found him guilty as charged.
U.S. District Judge Micaela Alvarez presided over the trial and set sentencing for Sept. 14. At that time, Posas faces a mandatory minimum of 10 years and up to life imprisonment and a possible $10 million maximum fine.
Previously released on bond, Posas was taken into custody following the conviction today where he will remain pending that hearing.
Homeland Security Investigations conducted the investigation with the assistance of the Drug Enforcement Administration and the Hidalgo County Sheriff’s Office. Assistant U.S. Attorneys Jongwoo Chung and Jose A. Garcia prosecuted the case.
Former Hamilton man sentenced on felony for lying to receive more than $70,000 in Social Security Administration benefitsRead the Press Release
MISSOULA — A former Hamilton man who admitted to making false statements to receive more than $70,000 in disability payments from the Social Security Administration was sentenced today, U.S. Attorney Jesse Laslovich said.
Aaron Lee Grossman, 51, of Washington, Utah, and formerly of Hamilton, pleaded guilty in February to false statements to a government agency.
U.S. District Judge Donald W. Molloy presided. The court sentenced Grossman to three years of probation, with three months to be spent on electronic location monitoring, imposed a $20,000 fine, ordered $71,456 restitution to the Social Security Administration and required Grossman to perform 150 hours of community service.
In court documents, the government alleged that in 2011, Grossman applied for Social Security Disability Insurance (SSDI) payments from the Social Security Administration. The agency approved Grossman’s application and advised him of his legal obligation to notify it if he experienced a change in his ability to work, returned to work or if his medical condition improved. In February 2020, the Social Security Administration learned Grossman had started a new business and not reported it as required. Additionally, the agency learned that Grossman received $36,210 from Lynch Insulation in 2019 for work he performed through Grossman Consulting, LLC. The agency then directed Grossman to update a Work Activity Report. Grossman did so but did not report making any money from Lynch Insulation. Had he reported the income, Grossman would have been ineligible for SSDI benefits. When confronted, Grossman lied to agents and claimed his wife earned those wages. However, records from Lynch Insulation indicted that Grossman, in fact, completed the work. In an interview in 2021, Grossman admitted he concealed his income from Lynch Insulation so he could maintain his government benefits. Grossman also underreported the value of his work for another company, owned by his father, from 2019 to 2021. Grossman’s father disclosed that Grossman’s hourly wage was set so low so he could maintain his disability payments.
Assistant U.S. Attorney Karla E. Painter prosecuted the case. The Social Security Administration Office of Inspector General conducted the investigation.
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Florida Man Sentenced to 10 years in Federal Prison for Possession with Intent to Distribute 40 Kilograms of CocaineRead the Press Release
Gulfport, Miss. – A Florida man was sentenced to 120 months in federal prison for possession with intent to distribute cocaine, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Brad L. Byerley of the Drug Enforcement Administration.
Vicente Valerio, 32, of West Palm Beach, Florida, was sentenced today in U.S. District Court in Gulfport.
According to court records, On October 11, 2022, a DEA Task Force Officer (TFO) conducted a traffic stop on a Chevrolet Silverado on Interstate 10 in Gulfport, Mississippi. The driver of the vehicle and sole occupant was identified as Vicente Valerio. Officers searched Valerio’s vehicle and found three bags containing forty bricks of cocaine. Each brick weighed a kilogram of cocaine.
Valerio was indicted on November 1, 2022, and plead guilty on March 24, 2023.
The case was investigated by the Drug Enforcement Administration with the support of the Gulfport Police Department.
The case was prosecuted by Assistant U.S. Attorney Erica Rose.
Federal Agreement Requires Nationwide Service Improvements at CVS MinuteClinics for Patients Who Are Deaf or Hard of HearingRead the Press Release
PROVIDENCE –MinuteClinic, LLC (“MinuteClinic”), a retail health care provider operating inside CVS pharmacy locations nationwide, has entered into a settlement agreement with the United States, requiring it to change its policies and procedures to provide effective communication to individuals who are deaf and hard of hearing at all of its over 11,000 locations, announced Zachary A. Cunha, United States Attorney for the District of Rhode Island.
This agreement follows an investigation begun after the Rhode Island U.S. Attorney’s Office received a complaint from a deaf individual who alleged that MinuteClinic failed to provide her with requested American Sign Language (ASL) interpretation for her medical appointments at a MinuteClinic. The investigation revealed that MinuteClinic had, in fact, failed to provide her with requested ASL interpretation, and that as a result, she was not able to effectively communicate with MinuteClinic health personnel during her medical appointments.
Additionally, the investigation revealed that, while CVS MinuteClinic’s website directed hearing-impaired patients to contact a patient support line to obtain an ASL interpreter for visits to a MinuteClinic, on at least six other occasions, when individuals called that number to request an ASL interpreter for upcoming medical appointments, the MinuteClinic representatives who answered the phone did not assist them with scheduling an interpreter.
“Interactions with health care providers as we make crucial decisions about treatment and care are among the most personal interactions we have in life,” said U.S. Attorney Cunha. “And the most basic part of that interaction is being able to communicate effectively with your health care provider. Providers have an obligation under the Americans with Disabilities Act to eliminate obstacles to access for those with disabilities, and I am pleased that, with today’s agreement, MinuteClinic is taking appropriate steps to ensure that those barriers are eliminated for users of CVS stores across the country.”
Under the settlement agreement, MinuteClinic will revise its policies and procedures for requesting, providing and tracking requests for qualified interpreters at all of its MinuteClinic locations, train staff on those policies, and post notices at its locations and website, informing patients of the means and methods by which to request auxiliary aids and services, free of charge. MinuteClinic will also pay $5,000 to the complainant.
The matter was litigated by Assistant U.S. Attorney Amy R. Romero.
The Department of Justice has a number of publications available to assist entities in complying with the ADA. For more information on the ADA and to access these publications, visit www.ada.gov or call the Justice Department’s toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD). Any member of the public who wishes to file a complaint alleging that a place of public accommodation or public entity in Rhode Island is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at (401) 709-5000 or by email at [email protected].
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cvs_minuteclinic_ada_agreement.pdfFather and Son Guilty in $21 Million Medicare Fraud SchemeRead the Press Release
NEWS RELEASE SUMMARY – June 15, 2023
SAN DIEGO - El Cajon resident and businessowner Anthony Duane Bell, Sr., pleaded guilty in federal court today, admitting that he fraudulently received more than $21 million in Medicare payments. His son and namesake, Anthony Duane Bell, Jr., admitted making false statements to the FBI to conceal the fraudulent scheme.
As part of his guilty plea, Bell, Sr. agreed to pay $21,725,604.56 in restitution to Medicare and forfeit $806,375.12 and a multi-million-dollar luxury house in El Cajon.
According to court records, the Bells created companies known as Universal Medical Solutions 1 and Universal Medical Solutions 2, with locations in Santee and San Diego. The companies supplied durable medical equipment like knee, ankle, wrist, shoulder, and back braces. The Bells obtained customers for their companies by paying thousands of dollars in kickbacks to “marketing” companies. To obtain the prescriptions, the marketing companies paid doctors for the medically unnecessary prescriptions for braces. The Bells sought to conceal their fraudulent kickback scheme by entering into sham “marketing” agreements and other contracts. In truth, the Bells were paying a set fee per brace to purchase the patients. The Bells would then send the braces to the Medicare beneficiaries and bill Medicare for the medically unnecessary braces. The Bells paid significantly less for the braces than they billed Medicare.
When Bell Jr. was interviewed by the FBI, he falsely stated that he had never heard of PA Healthcare Pharmaceuticals, a provider of durable medical equipment and his former employer.
“Fraudulent conduct that exploits the Medicare system erodes public support for this important program and squanders taxpayer resources,” said U.S. Attorney Randy Grossman. “I am grateful to our prosecution team and agency partners for their efforts to bring these crimes to justice.”
“Medicare is an essential government program that is supposed to assist some of our most vulnerable citizens with getting the healthcare they need. It should not be used as a ‘get rich’ scheme by scammers,” said FBI San Diego Acting Special Agent in Charge, Thomas Ryan. “People who exploit government programs to attempt to mask their malicious acts will continue to be investigated and held accountable by the FBI and our law enforcement partners.”
The Bells are scheduled to be sentenced on January 8, 2024, at 9 a.m., before U.S. District Judge William Q. Hayes.
The investigation was conducted by the Federal Bureau of Investigation, Department of Health and Human Services, and United States Marshal’s Service. The case is being prosecuted by Assistant U.S. Attorneys Valerie H. Chu and Christopher M. Alexander of the Southern District of California.
DEFENDANTS Criminal Case No. 20CR2887-WQH
Anthony Duane Bell Sr. Age: 54 El Cajon, California
Anthony Duane Bell Jr. Age: 33 Los Angeles, California
SUMMARY OF CHARGES
Health Care Fraud, a felony, in violation of Title 18, United States Code, Section 1347
Maximum Penalty: Ten years in custody; $250,000 fine
False Statement, a felony, in violation of Title 18, United States Code, Section 1001
Maximum Penalty: Five years in custody; $250,000 fine
INVESTIGATING AGENCIES
Federal Bureau of Investigation
Department of Health and Human Services, Office of Inspector General
United States Marshal’s Service
Drug Dealer Sentenced to 8 Years in Federal Prison for Role in Fentanyl Death of Yamhill County TeenRead the Press Release
PORTLAND, Ore.—An Oregon man was sentenced to federal prison Tuesday for distributing counterfeit pills containing fentanyl that caused the fatal overdose of a Yamhill County teen.
Dylan Wilson, 26, of Lafayette, Oregon, was sentenced to 96 months in federal prison and three years’ supervised release.
According to court documents, on July 21, 2021, Yamhill County Sheriff’s Office deputies responded to the fatal overdose of a 15-year-old in Dayton, Oregon. A search of the victim’s cell phone and an interview with one of the victim’s minor friends revealed that the victim had recently purchased what they thought were Oxycodone pills from Wilson. The victim was not aware that the counterfeit pills, labeled with “M30,” contained fentanyl. A toxicology report later confirmed the victim died of a fentanyl overdose.
The next day, on July 22, 2021, Yamhill County deputies and FBI special agents surveilled Wilson’s residence in Lafayette and arrested him without incident. Wilson confessed to knowing the victim was a minor before selling the counterfeit pills. A search of Wilson’s cell phone revealed evidence of his fentanyl supplier. Investigators identified the supplier as Scott Keeling, 23, of McMinnville, Oregon, and arrested Keeling the same day.
On December 7, 2021, a federal grand jury in Portland returned a three-count indictment charging Wilson and Keeling with conspiring with one another and others to possess with intent to distribute fentanyl and possessing with intent to distribute fentanyl.
On February 21, 2023, Keeling pleaded guilty to possessing with intent to distribute fentanyl. Two months later, on April 5, 2023, Wilson pleaded guilty to the same charge. On May 30, 2023, Keeling was sentenced to 96 months in federal prison and three years’ supervised release.
This case was investigated by the Yamhill County Sheriff’s Office and the FBI. It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
District of Columbia Woman Found Guilty in Scheme to Steal Money from Non-Profit She Was Entrusted to RunRead the Press Release
WASHINGTON – Rowena Joyce Scott, 70, of the District of Columbia, was convicted today of wire fraud, credit card fraud, filing false tax returns, and failing to file tax returns, in connection with a scheme to steal and embezzle money from the non-profit corporation she was entrusted to run for the benefit of some of the District’s economically disadvantaged residents.
The verdict was announced by U.S. Attorney Matthew M. Graves, Acting Special Agent in Charge Kareem Carter, of the Internal Revenue Service Criminal Investigation Washington D.C. Office and Chief John Fowler of the DC Office of Tax and Revenue Criminal Investigation Division. A sentencing hearing is scheduled for October 18, 2023.
The offense of wire fraud carries a statutory maximum of 20 years in prison. The offense of filing a false income tax return carries a statutory maximum of 3 years in prison. The offense of credit card fraud carries a statutory maximum of 10 years. The offense of willful failure to file tax returns carries a statutory maximum of one year. All the offenses also carry financial penalties.
According to evidence presented in court, from approximately January 2010 through May 2014, Scott served as the president of the board of directors and manager of Park Southern Neighborhood Corporation (“PSNC”), a non-profit, non-member corporation that owned and operated the Park Southern apartment complex in Southeast Washington, D.C. Instead of serving PSNC’s charitable mission – of providing adequate, safe, affordable housing for the District’s underhoused and underprivileged residents – Scott engaged in a scheme through which she embezzled at least $125,000 from the organization’s coffers and used nearly $30,000 in additional funds to make purely personal, unauthorized purchases from third-party vendors. All the while, Scott collected $260,000 in “salary” (about $60,000 per year), lived in the building rent-free, and used the property’s common rooms, free of charge, to operate her own ministry. Scott failed to report all of the income she received from PSNC – legitimate or otherwise – for tax purposes. Meanwhile, under her watch, the PSNC failed to finish renovations for Americans-with- Disabilities-Act compliant units and failed to make loan payments to the District.
This case was investigated by IRS-CID, the DC Office of Tax and Revenue. Assistant U.S. Attorney Kate Rakoczy, and former Assistant U.S. Attorney Peter Lallas. It was prosecuted by Assistant U.S. Attorneys Brian Kelly and Diane Lucas, and Paralegal Specialist Sona Chaturvedi.
District of Columbia Man Sentenced to 70 Months in Prison for Conspiracy to Distribute Narcotics and Use FirearmsRead the Press Release
WASHINGTON – Trevon Fairfax, 28, of Rockville, Maryland, was sentenced today to 70 months in federal prison for his role in an ongoing conspiracy to distribute narcotics and a related conspiracy to possess firearms in furtherance of drug trafficking.
The announcement was made by U.S. Attorney Matthew M. Graves, Acting Special Agent in Charge Sarah Linden, of the FBI Washington Field Office’s Criminal and Cyber Division, Special Agent in Charge Craig B. Kailimai, of the Bureau of Alcohol, Tobacco, Firearms, and Explosives Washington Division, and Interim Chief Ashan Benedict, of the Metropolitan Police Department.
Fairfax is one of more than a dozen individuals arrested as part of a joint FBI/ATF investigation which resulted in the seizure of more than 34 pounds of marijuana, 16 firearms, and more than $270,000 in cash.
Fairfax, who utilized the street nickname “Trizz,” pleaded guilty on October 21, 2022 in the U.S. District Court for the District of Columbia, to one count of conspiracy to distribute more than 100 kilograms of marijuana, as well as oxycodone and codeine, and one count of unlawful possession of a firearm by a convicted felon. As part of his plea agreement, Fairfax admitted to participating in a separate conspiracy to use, carry, and possess firearms, and further admitted to discharging a firearm in defense of the co-conspirators’ drug dealing territory. Fairfax was sentenced by the Honorable Amy Berman Jackson. Following completion of his prison term, Fairfax will be placed on four years of supervised release.
According to the government’s evidence, beginning in approximately June 2018, and continuing through April 2021, Fairfax and his co-conspirators maintained drug dealing territory on Trenton Place SE in the Congress Heights neighborhood of Washington, D.C. – a territory they defended by carrying, and discharging, firearms at perceived rivals. As part of his role in the conspiracy, Fairfax distributed marijuana in bulk quantities and served as an armed defender of the co-conspirators’ drug dealing territory. Fairfax admitted that, on April 12, 2020, he fired a 9mm handgun at an SUV driving through the co-conspirators’ territory while another co-conspirator also fired at that vehicle. The driver of that vehicle sustained a gunshot wound and crashed his vehicle, but was able to escape on foot. Fairfax was arrested on April 22, 2021, and has been detained ever since.
In announcing the sentence, U.S. Attorney Graves, Acting Special Agent in Charge Linden, Special Agent in Charge Kailimai, and Interim Chief Benedict commended the work of those who investigated the case from the FBI, ATF, and MPD. They also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney James B. Nelson who investigated and prosecuted the case.
District of Columbia Man Sentenced to 60 Months in Prison for Distribution of Marijuana and OxycodoneRead the Press Release
WASHINGTON – Kiyon Boyd, 23, of Washington, D.C., was sentenced today to 60 months in federal prison for his role in an ongoing conspiracy to distribute narcotics in Washington, D.C. and elsewhere
The announcement was made by U.S. Attorney Matthew M. Graves, Acting Special Agent in Charge Sarah Linden, of the FBI Washington Field Office’s Criminal and Cyber Division, and Interim Chief Ashan Benedict, of the Metropolitan Police Department.
Boyd, who utilized the street nickname “Workey,” pleaded guilty on April 7, 2023, in the U.S. District Court for the District of Columbia, to one count of conspiracy to marijuana and oxycodone, and two counts of possession with the intent to distribute marijuana. As part of his plea agreement, Boyd admitted that he distributed, or conspired to distribute, between 80 and 100 kilograms of marijuana. Boyd also admitted that firearms were used or possessed as part of the drug dealing conspiracy. Boyd was sentenced by the Honorable Beryl A. Howell. Following completion of his prison term, Boyd will be placed on three years of supervised release.
In announcing the sentence, U.S. Attorney Graves, Acting Special Agent in Charge Linden, and Interim Chief Benedict commended the work of those who investigated the case from the FBI, ATF, and MPD. They also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney James B. Nelson who investigated and prosecuted the case.
District of Columbia Man Sentenced to 60 Months in Prison for Unlawful Possession of a FirearmRead the Press Release
WASHINGTON – Jimmy Martez Ellis, 30, of Washington, D.C., was sentenced on June 26, 2023, to 60 months in federal prison for the unlawful possession of firearms and ammunition.
The announcement was made by U.S. Attorney Matthew M. Graves, Acting Special Agent in Charge Sarah Linden, of the FBI Washington Field Office Criminal and Cyber Division, and Special Agent in Charge Craig B. Kailimai, of the Bureau of Alcohol, Tobacco, Firearms, and Explosives Washington Division.
Ellis, who utilized the street nicknames “Big Oso” and “Jim Bob” pleaded guilty on March 8, 2023, in the U.S. District Court for the District of Columbia, to one count of unlawful possession of a firearm and ammunition by a convicted felon. As part of his plea agreement, Ellis admitted that he was arrested on April 19, 2020, in possession of a loaded .40 caliber handgun and that he was arrested again on August 6, 2021, in possession of a loaded .38 caliber handgun. Ellis admitted that, as a convicted felon, he was not legally permitted to possess either handgun, and further admitted that he possessed the firearms in connection to another felony crime – namely the distribution and possession with the intent to distribute controlled substances.
Ellis was sentenced by the Honorable Tanya S. Chutkan. Following completion of his prison term, Ellis will be placed on three years of supervised release.
In announcing the sentence, U.S. Attorney Graves, Acting Special Agent in Charge Linden, and Special Agent in Charge Kailimai, commended the work of those who investigated the case from the FBI and ATF. They also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney James B. Nelson who investigated and prosecuted the case.
Cuatro detenidos por el incidente de tráfico de personas en un tráiler que resultó en 53 muertesRead the Press Release
Cuatro ciudadanos mexicanos fueron detenidos ayer en San Antonio, Houston y Marshall, Texas, por su presunta participación en un incidente de tráfico de personas en un tráiler que resultó en 53 personas indocumentadas fallecidas y 11 lesionadas hoy hace un año.
“Los traficantes de personas se aprovechan de la esperanza de los migrantes de una vida mejor, pero su única prioridad es obtener ganancias”, señaló el fiscal general Merrick B. Garland. “Trágicamente, 53 personas que habían sido hacinadas en un tráiler en Texas y soportaron horas de inimaginable crueldad, perdieron la vida debido a este plan despiadado. Los traficantes de personas que ponen en riesgo la vida de las personas para obtener ganancias e infringen nuestras leyes no podrán esconderse por mucho tiempo: Los encontraremos y los llevaremos ante la justicia”.
“El anuncio de hoy es otro paso importante en nuestro esfuerzo sin precedentes contra los traficantes”, expresó el secretario de Seguridad Nacional, Alejandro N. Mayorkas. “Estas acusaciones formales son el resultado directo de todo un esfuerzo del gobierno para prevenir estos horribles crímenes y es la campaña más grande de este tipo en la historia de los Estados Unidos. Los traficantes de personas harán cualquier cosa para obtener ganancias, y el Departamento de Seguridad Nacional (DHS) continuará haciendo todo lo posible para detenerlos. Estoy agradecido por el liderazgo de nuestro equipo de Investigación de Seguridad Nacional (HSI) y la Oficina de Aduanas y Protección Fronteriza de los EE. UU., por buscar justicia para las 53 vidas perdidas el año pasado”.
Estos cargos fueron el resultado de los esfuerzos coordinados de la Fuerza de Tarea Conjunta Alfa (JTFA), que el fiscal general Garland estableció en junio de 2021 en colaboración con el secretario Mayorkas, para fortalecer los esfuerzos generales de los departamentos para combatir estos delitos en función del aumento del tráfico prolífico y peligroso que proviene de Centroamérica y afecta a nuestras comunidades fronterizas. JTFA mejora los esfuerzos de las autoridades del orden público de los EE. UU., contra los grupos de tráfico y trata de personas más prolíficos y peligrosos que operan en México, Guatemala, El Salvador y Honduras.
Según documentos judiciales, entre diciembre de 2021 y junio de 2022, Riley Covarrubias-Ponce, también conocido como Rrili, también conocido como Rilay, 30 años; Felipe Orduña-Torres, también conocido como Cholo, también conocido como Chuequito/Chuekito, también conocido como Negro, 28 años; Luis Alberto Rivera-Leal, también conocido como Cowboy, 37 años; y Armando Gonzáles-Ortega, también conocido como El Don, también conocido como Don Gon, 53 años, están acusados de participar en una organización de tráfico de personas que traía ilegalmente adultos y niños de Guatemala, Honduras y México a los Estados Unidos. Los presuntos traficantes trabajaron en conjunto para transportar a los migrantes compartiendo rutas, guías, escondites, camiones, remolques y transportadores para consolidar costos, minimizar riesgos y maximizar ganancias. La organización mantuvo una variedad de tractores y remolques para sus operaciones de contrabando, algunos de los cuales estaban guardados en un estacionamiento privado en San Antonio.
“Hoy hace un año, un delito impensable perpetrado por traficantes de personas en nuestra frontera sur causó la muerte de 53 seres humanos”, señaló la fiscal general adjunta Lisa O. Mónaco. “Pero las detenciones de hoy demuestran que aquellos que buscan sacar provecho de la desesperación serán llevados ante la justicia. Al trabajar con colaboradores internacionales, el Departamento de Justicia responde a la delincuencia organizada internacional y envía un mensaje claro de que no existe un refugio seguro para el tráfico de armas de fuego, narcóticos letales o seres humanos”.
“Esta horrible tragedia pone de relieve el cruel desprecio que las organizaciones criminales de traficantes tienen por la vida humana, incluidas las vidas de los niños”, expresó el fiscal general adjunto Kenneth A. Polite, Jr. de la División Penal del Departamento de Justicia. “Estas acusaciones formales y detenciones son otro paso adelante para obtener justicia y rendición de cuentas por estas muertes sin sentido. La Fuerza de Tarea Conjunta Alfa se mantendrá firme en sus esfuerzos para frustrar estos planes mortales impulsados por la codicia a expensas de la seguridad y la protección”.
La acusación formal alega que en los días previos al 27 de junio de 2022, Covarrubias-Ponce, Orduña-Torres y otros intercambiaron los nombres de personas indocumentadas que serían traficadas en un tráiler. Los cuatro nuevos acusados imputados en la acusación formal supuestamente orquestaron la obtención de un tráiler vacío y su correspondiente entrega al conductor el 27 de junio. El conductor, Homero Zamorano Jr. de Elkhart, Texas, fue imputado previamente en una acusación formal de julio de 2022 junto con Christian Martínez, de Palestina, Texas. Orduña-Torres supuestamente proporcionó la dirección de Laredo, Texas, en la que Zamorano cargó a los migrantes en el tráiler. La acusación formal también alega que González-Ortega viajó a Laredo para localizar el tráiler, donde al menos 66 personas indocumentadas, incluidos ocho niños y una mujer embarazada, fueron subidos en la parte trasera para traficarlas. Martínez, Covarrubias-Ponce, Orduña-Torres, Rivera-Leal y Gonzáles-Ortega supuestamente coordinaron, facilitaron, pasaron mensajes y se mantuvieron informados sobre el avance del tráiler.
“Las alegaciones en la acusación formal son espantosas”, dijo el fiscal federal Jaime Esparza para el Distrito Oeste de Texas. “Docenas de hombres, mujeres y niños desesperados y vulnerables confiaron en los traficantes, quienes los abandonaron en un tráiler cerrado para luego perecer en el despiadado verano del sur de Texas. Gracias a nuestros colaboradores de las fuerzas del orden público a nivel local, estatal y federal, con la División de Investigaciones de Seguridad Nacional de San Antonio a la cabeza de la investigación, estamos un paso más cerca de hacer justicia para esos migrantes y sus familias”.
Algunos de los acusados supuestamente sabían que la unidad de aire acondicionado del tráiler no funcionaba bien y que no salía aire fresco para los migrantes que estaban dentro. Cuando los miembros de la organización se encontraron con el tráiler al final de su viaje de casi tres horas a San Antonio, abrieron las puertas y encontraron que 48 de los migrantes, incluida la mujer embarazada, estaban muertos. Dieciséis de los indocumentados fueron transportados a hospitales y cinco de ellos murieron allí.
“Hoy hace un año, HSI respondió a una situación de tráfico masivo de personas con víctimas que ocurrió en San Antonio, terminó en la muerte de 53 no ciudadanos indocumentados de México, Guatemala y Honduras”, comentó el alto funcionario que desempeñaba las funciones del subdirector PJ Lechleitner de Inmigración y Control de Aduanas (ICE). “Las acusaciones formales anunciadas hoy enfatizan que trabajaremos incansablemente para llevar ante la justicia a los responsables de esta horrible tragedia. HSI continúa los esfuerzos de investigación con la Fuerza de Tarea Conjunta Alfa y los colaboradores internacionales para desmantelar las redes de traficantes que no demuestran aprecio por la vida humana”.
Cada acusado está imputado de un cargo de asociación delictuosa para transportar extranjeros ilegales con resultado de muerte, asociación delictuosa para transportar extranjeros ilegales con resultado de lesiones corporales graves y poner vidas en peligro, transporte de extranjeros ilegales con resultado de muerte y transporte de extranjeros ilegales con resultado de lesiones graves corporales y poner vidas en peligro. Si son condenados por los cargos principales, cada uno enfrenta una pena máxima de cadena perpetua.
HSI está investigando el caso con la valiosa asistencia de Aduanas y Protección Fronteriza, Patrulla Fronteriza, Operaciones de Detención y Deportación de ICE, FBI, ATF, Departamento de Policía de San Antonio, Oficina del Alguacil del Condado de Bexar, Departamento de Bomberos de San Antonio, Departamento de Policía de Marshall y Departamento de Policía de Palestina.
Los fiscales federales adjuntos Eric Fuchs, Sarah Spears y Amanda Brown para el Distrito Oeste de Texas están procesando el caso.
Desde su creación, JTFA ha aumentado con éxito la coordinación y la colaboración entre el Departamento de Justicia, el DHS y otros participantes interinstitucionales del orden público, y con colaboradores extranjeros del orden público, incluido en El Salvador, Guatemala, Honduras y México; se ha dirigido contra aquellas organizaciones que tienen el impacto más significativo en los Estados Unidos; y coordinando importantes acusaciones formales de tráfico y esfuerzos de extradición en las fiscalías federales de los Estados Unidos en todo el país. JTFA está compuesto por fiscales de las fiscalías federales de los EE. UU. en la frontera suroeste, incluido el Distrito Sur de Texas, el Distrito Oeste de Texas, el Distrito de Nuevo México, el Distrito de Arizona y el Distrito Sur de California. Numerosos componentes de la División Penal del Departamento de Justicia que forman parte de JTFA también brindan apoyo dedicado para el grupo de tarea, dirigido por la Sección de Derechos Humanos y Procesamientos Especiales (HRSP) y apoyado por la Oficina de Desarrollo Procesal, Asistencia y Capacitación (OPDAT), la Sección de Estupefacientes y Drogas Peligrosas (NDDS), la Sección de Blanqueo de Capitales y Recuperación de Activos (MLARS), la Oficina de Operaciones del Orden Público (OEO), la Oficina de Asuntos Internacionales (OIA) del Departamento de Justicia y la Sección de Delincuencia Organizada y Pandillas (OCGS). JTFA es posible gracias a una inversión sustancial en las fuerzas del orden público por parte del DHS, el FBI, la DEA y otros colaboradores.
Una acusación formal es simplemente un alegato. Todos los acusados se presumen inocentes hasta que se pruebe su culpabilidad más allá de toda duda razonable en un tribunal de justicia.
Columbia Man Sentenced to over 7 Years in Federal Prison for Drug Trafficking and Firearm ChargesRead the Press Release
COLUMBIA, SOUTH CAROLINA — Leon Johnny King, 38, of Columbia, was sentenced to 90 months in federal prison after pleading guilty to possession with intent to distribute heroin and crack cocaine, being a felon in possession of a firearm, and possession of a firearm in connection with a drug trafficking crime.
Evidence presented to the Court showed that in June 2019, Richland County Sheriff’s Department (RCSD) narcotics investigators began investigating King for drug trafficking activity in the Columbia area. Investigators made a series of controlled buys of heroin from King, which led to investigators executing a search warrant at King’s apartment in July 2019. Investigators found a loaded .380 pistol and a quantity of heroin in a bag in King’s bedroom. After his arrest, investigators found a quantity of crack cocaine and more heroin on his person. Federal law prohibits King from possessing firearms or ammunition based on convictions for trafficking cocaine and autobreaking.
United States District Judge Sherri A. Lydon sentenced King to 90 months in prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Richland County Sheriff’s Department Narcotics Unit. Assistant U.S. Attorney Christopher D. Taylor is prosecuting the case.
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Columbia Man Sentenced to over 6 Years in Federal Prison for Drug Trafficking and Firearm ChargesRead the Press Release
COLUMBIA, SOUTH CAROLINA — Kendell Deion Pollock, 28, of Columbia, was sentenced to 78 months in federal prison after pleading guilty to possession with intent to distribute marijuana and possession of a firearm in connection with a drug trafficking crime.
Evidence presented to the Court showed that on November 12, 2020, Columbia Police Department (CPD) officers were dispatched to investigate a robbery call in the Marlboro St. area of Columbia. Officers saw Pollock and another man riding in a car thought to be involved in the robbery, and they stopped the car. They searched the car due to a strong odor of marijuana coming from the car.
Officers found a 9mm pistol with a fully loaded 30-round ammunition magazine attached, nearly a quarter of a pound of marijuana, and other drug paraphernalia in the car. Pollock admitted to possessing the marijuana and pistol. Pollock had previous convictions for burglary and drug possession.
United States District Judge Mary Geiger Lewis sentenced Pollock to 78 months in prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Columbia Police Department. Assistant U.S. Attorney Christopher D. Taylor is prosecuting the case.
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Cherokee County Man Convicted of Sex Trafficking Teens in Tyler AreaRead the Press Release
TYLER, Texas - A Jacksonville, Texas man has been convicted of federal sex trafficking violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Desnique Deshawn Herndon, 27, was convicted of six counts of sex trafficking of children and one count of conspiracy to commit sex trafficking of children. Herndon was found guilty of all counts by a jury following a five-day trial before U.S. District Judge J. Campbell Barker.
According to information presented in court, beginning in 2019, Herndon engaged in trafficking multiple teenage girls for commercial sex acts. Herndon recruited the girls by social media, deceived them by promising riches, and placed them in hotels in the Tyler area. He then posted advertisements on sex trafficking websites showing explicit photos of the girls and offering commercial sex acts. Some of Herndon’s victims were as young as 13 years old. During trial, jurors heard testimony that Herndon used co-conspirators to continue to run his operation while he was in jail so that the victims could earn money to pay his bond.
Three of Herndon's co-conspirators previously pleaded guilty for their roles in the offenses. Malcolm Kadeem Roberts, 27, of Tyler, pleaded guilty on October 4, 2022, to conspiracy to commit sex trafficking of children. Roberts also faces pending aggravated sexual assault of a child charges in Smith County for his conduct in relation to one of the minor victims in this case. Patrick Lamont Cross, Jr, 27, of Palestine, Texas pleaded guilty on August 22, 2022, to conspiracy to commit sex trafficking of children. Tavarus D. Watkins, 27, of Jacksonville, Texas, pleaded guilty on August 9, 2022, to interstate transport of a minor for illegal sexual activity.
Under federal statutes, Herndon faces up to life in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing 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 U.S. Probation Office.
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 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 better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by Homeland Security Investigations’ Tyler Resident Agency, the FBI Tyler Resident Agency, Texas DPS Criminal Investigations Division, the Texas Attorney General’s Human Trafficking Unit, Tyler Police Department, Henderson County Sherriff’s Office, Cherokee County Sherriff’s Office, the Jacksonville Police Department, and the Texas Department of Public Safety Crime Lab. This case was prosecuted by Assistant U.S. Attorneys Ryan Locker and Alan Jackson, and Special Assistant U.S. Attorney Bryan Jiral.
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Camden County Man Sentenced to 78 Months in Prison for Hiring Hitman via InternetRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man was sentenced today to 78 months in prison for paying $20,000 in bitcoin to have a 14-year old child murdered, U.S. Attorney Philip R. Sellinger announced.
John Michael Musbach, 34, of Haddonfield, New Jersey, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an indictment charging him with one count of knowingly and intentionally using and causing another to use a facility of interstate and foreign commerce, that is the internet, with the intent that a murder be committed. Judge Rodriguez imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
In the summer of 2015, Musbach exchanged via the internet sexually explicit photographs and videos with the victim, a 13-year-old living in New York. The victim’s parents found out about the inappropriate contact and contacted the local police. Upon identifying Musbach, then a resident of Atlantic County, New Jersey, New York law enforcement officers reached out to the Atlantic County Prosecutor’s Office (ACPO). In March 2016, officers from the ACPO arrested Musbach on child pornography charges and executed a search warrant at his residence, then in Galloway, New Jersey.
Musbach decided to have the victim killed so that the victim could not testify against him in the pending criminal case. During the period from May 7, 2016, through May 20, 2016, Musbach repeatedly communicated with the administrator of a murder-for-hire website, which operated on the dark net, and which purported to offer contract killings or other acts of violence in return for payment in cryptocurrency, and arranged for a murder-for-hire. Musbach asked if a 14-year-old was too young to target, and upon hearing that the age was not a problem, paid approximately 40 bitcoin (approximately $20,000 at the time) for the hit. Musbach repeatedly messaged the website’s administrator following up on the hit and asking when it would occur. When pressed for an additional $5,000 to secure the hit, Musbach eventually sought to cancel and asked for a refund of his $20,000. The website’s administrator then revealed that the website was a scam and threatened to reveal Musbach’s information to law enforcement.
In addition to the prison term, Judge Rodriguez sentenced Musbach to three years of supervised release and fined him $30,000.
U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel in Newark and Special Agent in Charge Jamie Holt in St. Paul, Minnesota, with the investigation leading to today’s sentencing. He also thanked the Atlantic County Prosecutor’s Office for its assistance.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig in Camden.
California resident sentenced to 3+ years in prison for smuggling scheme using ride share companies to transport Indian Nationals crossing the northern border illegallyRead the Press Release
Seattle – A 49-year-old resident of Elk Grove, California, was sentenced today in U.S. District Court in Seattle to 45 months in prison for Conspiracy to Transport and Harbor Certain Aliens for Profit and Conspiracy to Commit Money Laundering, announced Acting U.S. Attorney Tessa M. Gorman. Rajinder Pal Singh, aka Jaspal Gill, pleaded guilty in February 2023, admitting that he took in more than $500,000 as a key member of a smuggling ring bringing hundreds of Indian Nationals across the border from Canada and then to locations in the mid-west and beyond. At the sentencing hearing, U.S. District Judge John C. Coughenour accepted the joint sentencing recommendation.
“Over a four-year period, Mr. Singh arranged for more than 800 people to be smuggled into the U.S. across the northern border and into Washington State,” said Acting U.S. Attorney Tessa M. Gorman. “This conduct was not just a security risk for our country, it also subjected those smuggled to security and safety risks during the often weeks-long smuggling route from India to the United States. Mr. Singh’s participation in this conspiracy preyed upon the Indian Nationals’ hopes for a better life in the United States, while saddling those smuggled with crushing debt of as much as $70,000.”
“Mr. Singh spent years illegally smuggling hundreds of Indian nationals into this country; all to make a quick profit,” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “Fortunately, through a committed HSI investigative team, complemented by U.S. Customs and Border Protection and the U.S. Attorney’s Office, that scheme has come to an end. Mr. Singh crushed the dreams of so many who quickly found themselves drowning in debt to their smuggler and unable to realize the life they sought in this country. Mr. Singh won’t need to order up any more Uber rides for the next three years.”
According to records filed in the case, as early as July 2018, Singh and his coconspirators used the ride share app Uber to transport people who had illegally crossed the border from Canada to the Seattle area. Those records detail how trips beginning near the border in the early hours of the morning, would be split between different rides. For example, one Uber trip would be from the border to Sea-Tac airport, and then minutes later the second Uber trip would be from a nearby airport hotel to an address in Lacey, Washington, owned by Singh’s spouse. All told, from mid-2018 to May 2022, Singh arranged more than 600 trips involving the transportation of Indian Nationals who had been illegally smuggled into the U.S.
Once the non-citizens had been smuggled into the U.S., Singh coordinated with other coconspirators who, using one-way vehicle rentals, would transport these individuals to their ultimate destinations outside Washington State.
Singh and his coconspirators used sophisticated means to launder the organization’s illicit proceeds. For example, on one instance, Singh and his coconspirators arranged for smuggling fees to be sent via Hawala from India to New York. Once the smuggling fee was received in cash from the New York Hawala, these funds were converted into a check, mailed to a coconspirator in Kentucky, and then were washed through multiple financial accounts. In the plea agreement, Singh admitted that the purpose of this money movement was to obscure the illicit nature of these funds, i.e., money laundering.
The smuggling scheme has been underway since at least 2018. It slowed during the pandemic when Canada was not admitting non-citizens. However as pandemic restrictions were lifted, the smuggling scheme became active again. In all, the investigation estimates that between July 2018, and April 2022, the 17 Uber accounts tied to this smuggling ring ran up more than $80,000 in charges.
In addition to the search of the home in Lacey, law enforcement searched two of Singh’s residences in California. During the search of one of his homes in Elk Grove, California, investigators found about $45,000 in cash as well as counterfeit identity documents. They also found copies of falsified documents that had been submitted to immigration judges in Washington during bond hearings for non-citizens who had been smuggled into the United States by Singh and his coconspirators, but who had been arrested by immigration authorities after illegally crossing the border.
Singh has agreed to forfeit cash and other personal property seized during the search of his residences, as well as a money judgement of $500,000 which represents proceeds he obtained from his criminal scheme.
Both sides agreed to recommend that Singh serve 45 months in prison. Singh is not legally present in the United States and will likely be deported following his prison term.
The investigation was led by Homeland Security Investigations (HSI) with assistance from U.S. Customs and Border Protection. Uber assisted with the investigation shortly before the arrest in this case.
The case was prosecuted by Assistant United States Attorney Joe Silvio.
Buffalo Man Arrested, Charged with Production of Child PornographyRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Mark Nash, 34, of Buffalo, NY, was arrested and charged by criminal complaint with production of child pornography. The charge carries a minimum penalty of 15 years in prison, and a maximum of 30 years.
Assistant U.S. Attorney Jonathan P. Cantil, who is handling the case, stated that on April 4, 2023, the Buffalo Police Department received a report that Nash had nude images of a minor victim on his phone and that he had allegedly sexually abused the girl. A search warrant executed on Nash’s phone recovered over 200 sexually explicit images of the minor victim.
Nash is currently on probation following a 2022 conviction in Erie County Court for Criminal Possession of a Weapon in the Second Degree.
Nash made an initial appearance this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy and is being held pending a detention hearing on June 29, 2023.
The complaint is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia and Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Bronx Man Sentenced to 20 Years in Prison for Enticement of Multiple Minors to Engage in Illegal Sexual ActivityRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that MICHAEL BARRETO was sentenced today by U.S. District Judge Katherine Polk Failla to 20 years in prison for repeatedly enticing minors to meet him for illegal sexual activity over the course of more than a decade and receipt of child pornography. BARRETO previously pled guilty to three counts of enticement and three counts of receipt of child pornography.
U.S. Attorney Damian Williams said: “Over the course of more than a decade, Michael Barreto repeatedly victimized minors in his community in the Bronx. Barreto tried and succeeded in luring minors to meet him for illegal sexual activity, often by lying to the victims about his own age. Today’s sentence shows that this abhorrent conduct will not be tolerated and will lead to a lengthy prison sentence. This Office is committed to prosecuting those who prey on children.”
According to court filings and statements made in court proceedings:
In 2008, BARRETO, age 19 or 20, had sex with one victim, age 14, and then told the victim to run away from home and lie about their relationship. In 2017, BARRETO, age 29, met a second victim, age 13, at a store in the Bronx, New York. BARRETO lied about his age and began an illegal sexual relationship with him. Two years after meeting, BARRETO surreptitiously recorded illegal sexual activity between himself and the victim. In 2018, BARRETO, age 30, exchanged sexual Facebook messages with a third victim, age 14, lied about his own age, and encouraged the victim to travel to BARRETO’s apartment in the Bronx. This victim in fact traveled to BARRETO’s apartment, where BARRETO engaged in illegal sexual activity with him. In 2018 and 2019, BARRETO exchanged sexual messages with three other victims, each age 14 or 15, lied about his age to each, and eventually received nude photographs constituting child pornography from the victims.
Apart from these victims, from approximately 2017 through 2019, BARRETO attempted to entice more than a dozen other minors using social media chat platforms. In these chats, BARRETO frequently lied about his own age, sent flirtatious and sexual messages, and expressed an interest in meeting with the minor victims in person to engage in sexual activity.
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In addition to the prison term, BARRETO, 34, of the Bronx, New York, was sentenced to 10 years of supervised release, ordered to pay $9,000 in restitution, and ordered to pay a $300 assessment pursuant to the Amy, Vicky, and Andy Child Pornography Victim Assistance Act.
Mr. Williams praised the outstanding work of New York City Police Department. He also thanked the U.S. Department of Homeland Security, Homeland Security Investigations, for its assistance.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Kedar S. Bhatia and Brandon D. Harper are in charge of the prosecution.
Bridgeport Felon Found with Loaded Ghost Gun While on Supervised Release Pleads GuiltyRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that TIMOTHY STATON, 28, of Bridgeport, pleaded guilty today before U.S. District Judge Omar A. Williams in Hartford to unlawful possession of ammunition by a felon, and to violating the conditions of his supervised release from a prior federal conviction.
According to court documents and statements made in court, in September 2018, Bridgeport Police officers arrested Staton after he discarded a 9mm handgun during a pursuit. Staton, who had previously been convicted in state court of narcotics, firearm, and racketeering offenses, subsequently pleaded guilty in federal court to unlawful possession of a firearm by a felon and, on June 3, 2019, was sentenced to 37 months of imprisonment and three years of supervised release. He was released from federal prison in May 2022.
On December 13, 2022, Bridgeport Police officers arrested Staton after they found him in possession of a loaded semi-automatic 9mm privately manufactured firearm (“ghost gun”).
At sentencing, which is not scheduled, Staton faces a maximum term of imprisonment of 15 years for the firearm offense, and an additional penalty for the violating the conditions of his supervised release. Staton has been detained since his arrest.
This matter has been investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorney Jocelyn Courtney Kaoutzanis through the Justice’s Department’s Project Safe Neighborhoods (PSN) program.
PSN, the centerpiece of the Department of Justice’s violent crime reduction efforts, is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Bolivar Sex Offender Indicted for Sexual Exploitation of a ChildRead the Press Release
KANSAS CITY, Mo. – A Bolivar, Mo., man was indicted by a federal grand jury today on charges related to the sexual exploitation of a child victim.
Merle G. Daniels, 44, was charged in a three-count indictment returned by a federal grand jury in Springfield. Daniels is a registered sex offender after having been previously convicted of statutory rape, two counts of statutory sodomy, and interference with custody in Greene County, Mo.
Today’s indictment alleges that Daniels used a victim under the age of 16 to produce child pornography from Nov. 9 to Dec. 9, 2022. Daniels is also charged with one count of being a registered sex offender and committing a felony offense involving a minor, and one count of transferring obscene material to the child victim.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Stephanie L. Wan. It was investigated by the Greene County, Mo., Sheriff’s Department, Homeland Security Investigations, the Polk County, Mo., Sheriff’s Department, the Springfield, Mo., Police Department, and the Southwest Missouri Cyber Crimes Task Force.
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."
Arizona Woman Pleads Guilty to Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – EMILY HUCKABEE, age 23, a resident of Yuma, Arizona, pled guilty on June 22, 2023 before United States District Judge Carl J. Barbier to a superseding bill of information charging her with conspiracy to distribute and possess with intent to distribute a quantity of methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 846, announced U.S. Attorney Duane A. Evans.
According to court documents, on June 28, 2022, a Louisiana State Police Trooper stopped a 2015 Ford F-150 driven by HUCKABEE and traveling on I-59 in Pearl River, Louisiana, for traffic violations. A narcotics detection canine sniffed the vehicle and detected a narcotics odor. HUCKABEE admitted to the Troopers that there was a large amount of controlled substances in a bag on the rear seat of the vehicle. Troopers searched the vehicle and discovered 10.58 kilograms of crystal methamphetamine wrapped in twenty-seven vacuum sealed packages.
HUCKABEE faces a maximum term of imprisonment of twenty (20) years, a fine of up to $1,000,000.00, a term of supervised release of at least three (3) years, and a mandatory special assessment fee of $100.00.
This case was investigated by the Drug Enforcement Administration and the Louisiana State Police. The prosecution was handled by Assistant United States Attorney André Jones of the Narcotics Unit.
All Hands on Deck CEO Convicted of Bank Fraud, Wire Fraud, Witness Tampering, and Other OffensesRead the Press Release
OAKLAND – Attila Colar, aka Dahood Sariff Bey, aka Sharieff Dahood Bey, aka Saharieff Pasha, aka Georgi Petrakov, was convicted of forty-four counts that included conspiracy, bank fraud, wire fraud, aggravated identity theft, false statements to a bank, destruction of property to prevent a search, possession of a firearm as a felon, making a false tax return, obstruction, and witness tampering, by a federal jury on June 23, 2023. The guilty verdicts followed a three-week jury trial before the Honorable Haywood S. Gilliam, Jr., U.S. District Judge.
Colar, 51, of Richmond, Calif., is the former Chief Executive Officer of All Hands on Deck in Richmond, Calif., a residential reentry home for probationers, parolees, homeless persons, and persons with mild mental illness. In finding him guilty of the sundry crimes, the jury concluded Colar carried out multiple schemes to defraud, including defrauding organizations that placed residents at his company’s transitional housing facilities and defrauding several lenders that were participating in the Paycheck Protection Program (PPP). The jury also found that Colar attempted to destroy evidence, obstructed the FBI’s and grand jury’s investigations into his crimes, and tampered with a witness by attempting to conceal a witness while law enforcement was taking steps to execute a material witness order.
“The evidence in this case demonstrates that during his various fraud schemes, Colar trafficked in multiple people’s identities.” U.S. Attorney Ismail J. Ramsey said. “He targeted some of the most marginalized and dispossessed persons in our community. Their badly needed cash went into the defendant’s pocket. In the end, the defendant manipulated the very people who came to him for help.”
“Colar attempted to defraud the Paycheck Protection Program of $34 million intended to help honest businesses in need during the pandemic,” said FBI Special Agent in Charge Robert Tripp. “Today's verdict should serve as a warning to fraudsters like Colar that the FBI and our government partners will continue to pursue those who have exploited government programs for personal gain and stolen from American taxpayers.”
“The brazen fraud scheme committed in this case simply for personal gain harmed legitimate businesses in need. This conviction sends a clear message that those who defraud the federal government of pandemic relief funds will be held accountable and brought to justice for their actions,” said Jon Ellwanger, Special Agent in Charge, Western Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau. “I commend our agents and their federal law enforcement partners for their hard work and persistence, which ultimately led to this conviction.”
“Providing false information to fraudulently gain access to pandemic relief funds is a theft of taxpayer funds,” said U.S. Small Business Administration (SBA) Office of Inspector General Western Region Acting Special Agent in Charge Keven Standley. “OIG will relentlessly pursue fraudsters and bring them to justice. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”
“Mr. Colar abused the tax system by submitting fraudulent federal employment tax returns and W-2s to further a scheme he devised and orchestrated that aimed at defrauding the U.S. government of funds designed to help businesses that were impacted by the pandemic under the CARES Act,” said IRS-Criminal Investigation Special Agent in Charge Darren Lian of the Oakland Field Office. “IRS-Criminal Investigation will continue to provide resources to help uncover and prosecute such egregious acts. I want to thank those on the trial team, including our federal law enforcement partners and U.S. Attorney’s Office for diligently working together to serve justice.”
“The Treasury Inspector General for Tax Administration aggressively pursues those who endeavor to defraud taxpayer-funded Coronavirus Aid, Relief, and Economic Security Act programs, which were established to provide assistance to American business owners during unprecedented times,” stated Inspector General J. Russell George. “I want to thank our law enforcement partners and the U.S. Attorney’s Office for their efforts to ensure individuals engaged in criminal activity are held to account.”
Evidence at trial showed that starting in late 2018, Colar engaged in a scheme to defraud, among others, GEO Reentry, which provided treatment and supervision programs for adult probationers, parolees, and pretrial defendants in residential, in-custody, and non-residential reentry centers for the California Department of Corrections and Rehabilitation (CDCR). Specifically, in or about 2019, Colar fraudulently induced GEO Reentry to refer parolees to All Hands on Deck using falsified fire inspection clearance reports, a false letter of recommendation, false security clearance documents, and false and misleading information about its staff.
Additional evidence demonstrated that in April and June of 2020, Colar engaged in a second scheme to defraud lenders participating in the PPP lending plan authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act was designed to provide emergency financial assistance to the millions of Americans who were suffering from the economic effects caused by the COVID-19 pandemic. Pursuant to the CARES Act, the SBA managed the PPP lending plan. Trial evidence established Colar submitted multiple loan applications on behalf of All Hands on Deck to lenders that were false and misleading. For example, the applications substantially overstated the number and payroll of All Hands on Deck employees—while Colar’s loan applications stated All Hands on Deck had approximately 73 to 81 employees, the business had, in fact, perhaps other than himself, no salaried employees.
Colar was also convicted of offenses related to the submission of multiple fraudulent loan applications in the name of other companies. The evidence demonstrated Colar hastily revived two dormant companies, and then submitted loan applications from the PPP lending plan for the bogus businesses. To carry out this scheme to defraud, Colar used, without legal authority, the names and identities of two persons living in his residential reentry facility. Colar falsely represented that the residents were “CEO”s of companies with hundreds of employees with million-dollar payrolls.
In all, the evidence at trial showed that Colar submitted a total of 16 fraudulent loan applications to the PPP lending plan seeking approximately $34,655,437 in PPP loans.
Colar also was convicted of obstruction and witness tampering relating to the investigations into his crimes. Colar has been found guilty of destroying documents during a search of his home, lying to the FBI about a firearm, falsifying records produced to the grand jury, interfering with the representation by counsel of a material witness by impersonating the witness’s Power of Attorney, coaching a witness to falsely state that the witness was the CEO of one of Colar’s bogus companies that submitted fraudulent loan applications, and concealing a witness in multiple hotels and other locations in the Bay Area to forestall or prevent the witness from providing testimony in the federal grand jury.
In sum, Colar was convicted of forty-four (44) federal criminal offenses for his conduct. The convictions include the following: one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349; one count to commit conspiracy to commit bank fraud and wire fraud, in violation of 18 U.S.C. § 1349; two counts of bank fraud, in violation of 18 U.S.C. § 1344; sixteen counts of wire fraud, in violation of 18 U.S.C. § 1343; eight counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A; two counts of false statement to a bank, in violation of 18 U.S.C. § 1014; one count of possession of a firearm by a felon, in violation of 18 U.S.C. § 922(g); one count of destruction of property to prevent a search or seizure, in violation of 18 U.S.C. § 2232(a); one count of obstruction of justice, in violation of 18 U.S.C. § 1512(c)(2); two counts of falsification of records in a federal investigation, in violation of 18 U.S.C. § 1519; six counts of making a false tax return, in violation of 26 U.S.C. § 7206; one count of conspiracy to tamper with a witness, in violation of 18 U.S.C. § 1512(k); one count of tampering with a witness, in violation of 18 U.S.C. § 1512(b)(1); and one count of tampering with a witness, in violation of 18 U.S.C. § 1512(b)(2).
Colar is currently being held without bail pending his sentencing. Judge Gilliam scheduled Colar’s sentencing hearing for September 6, 2023. Colar faces the following maximum statutory penalties:
Charge
Maximum Statutory Penalty (per count)
Conspiracy to commit wire fraud, in violation 18 U.S.C. § 1349
20 years’ imprisonment and a $250,000 fine
Conspiracy to commit brank fraud and wire fraud, in violation of 18 U.S.C. § 1349
30 years’ imprisonment and a $1,000,000 fine
Bank fraud, in violation of 18 U.S.C. § 1344
30 years’ imprisonment and a $1,000,000 fine
Wire fraud, in violation of 18 U.S.C. § 1343
20 years’ imprisonment and a $250,000 fine
Aggravated identity theft, in violation of 18 U.S.C. § 1028A
Mandatory 2 years’ imprisonment, consecutive to prison terms
False statement to a bank, in violation of 18 U.S.C. § 1014
20 years’ imprisonment and a $250,000 fine
Possession of a firearm by a felon, in violation of 18 U.S.C. § 922(g)
10 years’ imprisonment and a $250,000 fine
Destruction of property to prevent a search or seizure, in violation of 18 U.S.C. § 2232(a)
5 years’ imprisonment and a $250,000 fine
Obstruction of justice, in violation of 18 U.S.C. § 1512(c)(2)
20 years’ imprisonment and a $250,000 fine
Falsification of records in a federal investigation, in violation of 18 U.S.C. § 1519
20 years’ imprisonment and a $250,000 fine
Making a false tax return, in violation of 26 U.S.C. § 7206
3 years’ imprisonment and $100,000 fine
Conspiracy to tamper with a witness, in violation of 18 U.S.C. § 1512(k)
20 years’ imprisonment and a $250,000 fine
Witness tampering, in violation of 18 U.S.C. § 1512(b)(1) & (2)
20 years’ imprisonment and a $250,000 fine
However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Barbara J. Valliere, Adam A. Reeves, and Ross D. Mazer are prosecuting the case with the assistance of Paralegal Specialist Laurie Worthen and Legal Assistant Kathy Tat. The prosecution is the result of an investigation by the FBI, IRS-Criminal Investigation, Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau, Internal Revenue Service: Criminal Investigation, Treasury Inspector General for Tax Administration, and Office of Inspector General for the U.S. Small Business Administration.
Alabama Woman Charged with Tax EvasionRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Lisa England, age 51, of Attalla, Alabama, was charged in an indictment with two counts of tax evasion.
According to United States Attorney Gerard M. Karam, the indictment alleges that England failed to file tax returns and pay income tax for the years 2016 and 2017, while in the Eastern District of Pennsylvania. The indictment further alleges that England evaded paying taxes by obtaining payroll payments that were issued in the names of others and shredding paystubs that had been issued for those other individuals.
The case was investigated by the Internal Revenue Service, Criminal Investigation. Assistant U.S. Attorney Carlo D. Marchioli is prosecuting the case. The matter has been specially assigned to the United States Attorney’s Office for the Middle District of Pennsylvania for prosecution.
The maximum penalty under federal law for this offense is five years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Additional Tangipahoa Parish Men Sentenced in Jungle Life Mafia Street Gang ProsecutionRead the Press Release
NEW ORLEANS, LOUISIANA – MICHAEL ALEXANDER, SR. age 41, a Ponchatoula, Louisiana resident, was sentenced on June 15, 2023, to 180 months imprisonment, 5 years of supervised release, and a $400 mandatory special assessment fee by U.S. District Judge Jay C. Zainey, announced U.S. Attorney Duane A. Evans. ALEXANDER previously pled guilty to conspiracy to distribute 400 grams or more of fentanyl, 100 grams or more of heroin, and a quantity of cocaine, possession with intent to distribute fentanyl, heroin, and cocaine, possession of firearms in furtherance of drug trafficking crimes, and being a felon in possession of firearms.
According to court documents, Drug Enforcement Administration (“DEA”) agents began investigating the drug trafficking activities of the Jungle Life Mafia street gang in Tangipahoa Parish, Louisiana in 2019. On December 2, 2021, DEA agents executed a federal search warrant on ALEXANDER’s home in Ponchatoula. During the search, agents discovered approximately eleven ounces of heroin mixed with fentanyl and five illegal guns. Additionally, agents seized $289,224.70 in U.S. currency. The investigation spanned two years.
JOSHUA PRINE, age 42, a Tangipahoa Parish resident, was sentenced on June 13, 2023, to 20 months imprisonment, 5 years of supervised release, and a $100 mandatory special assessment fee. PRINE previously pled guilty to conspiracy to distribute 400 grams or more of fentanyl and 1 kilogram or more of heroin.
Pursuant to a traffic stop, PRINE was found to be in possession of four ounces of heroin mixed with fentanyl that he planned to deliver to a co-conspirator.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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.
This case was investigated by the federal Drug Enforcement Administration, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Hammond Police Department, Tangipahoa Parish Sheriff’s Office, Twenty-First Judicial District Attorney’s Office, Twenty-Second Judicial District Attorney’s Office, Jefferson Parish Sheriff’s Office, and the U.S. Marshals Service. The prosecution is being handled by Assistant United States Attorney J. Benjamin Myers of the Narcotics Unit.
Adam Snider to Serve as Public Affairs Specialist for Western District of OklahomaRead the Press Release
OKLAHOMA CITY – Today, United States Attorney Robert J. Troester announced the selection of Adam Snider to serve as the Public Affairs Specialist for the Western District of Oklahoma.
“Adam Snider is a seasoned communications professional with a demonstrated ability and passion to accurately keep the public informed,” said U.S. Attorney Troester. “We gladly welcome Snider to our team and know he will enhance our efforts to share the vital role our office plays in keeping Oklahomans safe.”
Snider is the first person to be selected for this newly created position. As the Public Affairs Specialist, he will work with local, state, tribal, and federal law enforcement to help inform the public on cases and matters of interest in the district. Snider will also engage with media outlets at all levels and spearhead community engagement initiatives and events.
Before Snider joined the U.S. Attorney’s Office, he spent more than a decade as a television reporter and anchor in Tennessee, Texas, and Oklahoma. He also served as a Public Information Manager with the State of Oklahoma.
Members of the media can reach Snider through his email, [email protected], or through the U.S. Attorney’s Office media phone line, (405) 553-8999.
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26 June 2023
“Wolf of Airbnb” Pleads Guilty in Connection with PPP and Real Estate Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that KONRAD BICHER pled guilty today to wire fraud in connection with his fraudulent operation of real estate companies, including by entering lease agreements for residential apartment units in Manhattan on false and fraudulent pretenses and by making false statements to obtain loans guaranteed by the United States government. BICHER pled guilty before U.S. Magistrate Judge Sarah L. Cave.
U.S. Attorney Damian Williams said: “Bicher proudly referred to himself as the ‘Wolf of Airbnb.’ But, as he admitted in court today, his businesses were premised on fraud. Bicher entered into lease agreements on false pretenses and made false statements to obtain loans guaranteed by the United States government. Bicher lined his own pockets by abusing government programs and tenant protections intended to benefit those in crisis during the COVID-19 pandemic. Thanks to the hard work of the FBI and this Office, he is being held accountable for his conduct.”
According to the allegations in the Complaint, Indictment, other court documents, and statements made in Court:
Beginning in at least February 2019, BICHER, and/or individuals working in concert with BICHER, began renting apartment units (the “Units”) in Manhattan. The Units were leased pursuant to lease agreements which required that the lessee make monthly rental payments and also included clauses that prohibited the lessee from renting the Units to third parties on a short-term basis and/or included clauses that prohibited the lessee from subletting the Units to third parties without written consent of the owner. Despite the requirement to make monthly rental payments, BICHER failed to make payments as required by the lease agreements. For many of the Units, BICHER also refused to vacate the Units after the expiration of the lease agreements. During the period of time that BICHER failed to make required rental payments, including the period of time after a lease agreement expired and the premises had not been vacated, BICHER derived income by renting the Units on a short-term basis, including by posting the Units for rent on various online marketplaces, such as Airbnb, Inc. (“Airbnb”).
Between in or about July 2019 and in or about April 2022, BICHER and his associates failed to make more than $1,000,000 in payments pursuant to the Lease Agreements or, for the period of time after the expiration of the Lease Agreements, based on the estimated fair market value for the Units. During this period, BICHER caused the Units to be listed for short-term rent on Airbnb and at least one other online marketplace for short-term rentals, resulting in at least $1,170,000 in rental income to BICHER and his associates.
Throughout the course of this scheme, the lessors of the Units made numerous efforts to recover rental payments from BICHER and/or to stop BICHER from continuing to rent the Units on a short-term basis, including by initiating civil litigation against BICHER. BICHER relied on legal protections intended to benefit tenants, including tenant protections adopted in connection with the COVID-19 pandemic, in order to oppose the lawsuits. Despite relying on tenant protections for New Yorkers in need, BICHER continued to generate revenue by renting certain Units on a short-term basis.
In addition, between at least in or about April 2021 until in or about July 2021, BICHER obtained government-guaranteed loans through a loan program of the United States Small Business Administration designed to provide relief to small businesses during the COVID-19 pandemic, namely the Paycheck Protection Program (“PPP”). In furtherance of this scheme, BICHER submitted at least four applications for PPP loans on behalf of at least three entities and obtained over $565,000 in loan proceeds. These PPP applications contained fraudulent documents and false information. For example, in connection with the PPP applications, BICHER submitted tax documents which were purportedly filed with the Internal Revenue Service (“IRS”). These documents were falsified in that the entities seeking PPP loans had not actually filed the purported tax returns with the IRS, and BICHER has not otherwise reported the purported income to the IRS.
During the course of the scheme, BICHER referred to himself as the “Wolf of Airbnb” and explained to media outlets that this nickname referred to the fact that he was “hungry and ruthless enough to get on top of the financial ladder” and had the “ferocity…of a wolf, because wolves are territorial, vicious, and show no mercy when provoked.”
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BICHER, 31, of Hialeah, Florida, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison. BICHER also agreed to forfeit $1,740,407.12 and to make restitution to victims in the amount of $1,985,251.
The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Matthew Weinberg is in charge of the prosecution.
Yankton Man Sentenced for Production of Child PornographyRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Yankton, South Dakota, man convicted of Production of Child Pornography. The sentencing took place on June 23, 2023.
Jason Sejnoha, age 44, was sentenced to 15 ½ years in federal prison, followed by five years of supervised release, a special assessment to the Federal Crime Victims Fund in the amount of $5,100, and restitution in the amount of $439.06.
Sejnoha was indicted by a federal grand jury in October of 2021. He pleaded guilty on March 20, 2023.
The conviction stemmed from incidents between May 6, 2021, and May 31, 2021, when Sejnoha intentionally hid a camera in a home to create video recordings. The camera was disguised to be part of an electrical outlet and was placed in the bathroom of a home in Yankton. Sejnoha used the hidden camera to create video recordings of unclothed minors.
This case was investigated by Homeland Security Investigations, the South Dakota Division of Criminal Investigation, and the Yankton Police Department. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Sejnoha was immediately remanded to the custody of the U.S. Marshals Service.
Winchester Man and Former Medical Device Sales Rep Arrested for Defrauding Boston Hospital and Lying to Federal AuthoritiesRead the Press Release
BOSTON – A former DePuy Synthes sales representative and team lead was arrested today for allegedly defrauding a Boston area hospital and lied to federal authorities investigating his interference with the hospital’s sterilization processes.
Matthew Capobianco, 45, of Winchester, Mass., was indicted on eight counts of wire fraud and one count of making material false statements. Capobianco was arrested today and, following an initial appearance and arraignment in federal court in Boston this afternoon, was released on conditions.
According to the indictment, from January 2016 through June 2017, Capobianco defrauded a Boston area hospital out of hundreds of thousands of dollars’ worth of spine products that he falsely represented were used in spine surgeries he covered. As a sales representative at DePuy, Capobianco was present in operating rooms at the hospital during spine surgeries dressed in scrubs and a surgical mask. In that role, Capobianco was responsible for tracking the type and quantity of DePuy products used in the spine surgeries on usage forms that he submitted to the hospital’s billing department, among other things. It is alleged that Capobianco’s compensation was tied to the volume of products that surgeons at the hospital and elsewhere used in their surgeries. To boost his sales numbers, increase his compensation, and attain higher rankings within DePuy’s sales organization, Capobianco falsely represented on usage forms that more—and more expensive—DePuy products were used during the spine surgeries than were actually used. Capobianco’s alleged fraudulent overbilling caused the hospital to pay DePuy for products that were not used in spine surgeries and caused DePuy, in turn, to pay Capobianco commissions that he was not entitled to.
It is further alleged that, in late 2016, Capobianco instructed a subordinate DePuy sales representative to bring certain DePuy spinal implants into an operating room at the hospital for a surgery, without those implants first being sterilized. As Capobianco and his sales colleagues understood, using unsterile implants in a spine surgery could lead to serious infection or death. It is alleged that on May 30, 2017, after this 2016 incident, , Capobianco himself brought DePuy spinal implants that were not in compliance with the hospital’s sterilization policies to an operating room at the Boston area hospital. Concerned about the dangers posed by unsterile implants, hospital employees confiscated the spinal implants to ensure they were not used in a scheduled surgery that day, and Capobianco was banned from the hospital that afternoon. During a subsequent interview with federal agents that day about the sterilization incident and his interference with the hospital’s sterilization processes in the months leading up to it, Capobianco allegedly made false statements, including about his actions earlier that day.
The charges of wire fraud provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of false statements provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Christopher Algieri, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office; Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Fernando McMillan, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office; and Robert Coviello Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, Office of Investigations made the announcement today. Patrick M. Callahan, Deputy Chief of Levy’s Health Care Fraud Unit and Assistant U.S. Attorney William B. Brady of Levy’s Health Care Fraud Unit are prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Weakley County Woman Sentenced to Eight Years in Federal Prison for Distributing MethamphetamineRead the Press Release
Jackson, TN – United States District Judge S. Thomas Anderson sentenced a Weakley County woman to 96 months in federal prison and three years of supervised release following her guilty plea to possession of methamphetamine with the intent to distribute. Kevin Ritz, United States Attorney for the Western District of Tennessee, announced the sentence today.
“Methamphetamine trafficked in and through West Tennessee is approaching dangerous levels of purity, and continues to destroy individuals, families, and communities,” said U.S. Attorney Kevin Ritz. “Drug dealers who profit from the pain, addiction, violence, and death caused by these dangerous substances deserve proper punishment. This defendant had a very brief criminal history, but the sheer volume of the drugs that she sold commanded the strong response reflected in the sentence imposed by the Court."
There is no parole in the federal system.
According to information presented in court, law enforcement officers became aware in July 2021 that Amy Marie Mitchell, 34, of Dresden, TN and her co-defendant, Robert Warren Gearin, were distributing crystal methamphetamine – any form of the drug that is 80 percent or higher in purity – in and around Weakley County. Investigators worked with a confidential informant on July 15, 2021 to purchase approximately 13 grams of crystal methamphetamine from someone who had obtained the drugs from Mitchell and Gearin’s home in Dresden.
On October 21, 2021, officers executed a search warrant at the defendants’ residence and seized close to 400 grams of methamphetamine, plastic baggies, three sets of digital scales, a Taurus TX .22 caliber pistol with matching ammunition, and a police scanner. The Drug Enforcement Administration laboratory later confirmed that the methamphetamine seized from the defendants’ home weighed 393.27 grams and was 97 percent pure. Officers learned through witnesses and additional investigation that over a four-month period Mitchell and Gearin sold approximately four pounds of methamphetamine in the Weakley County area.
On March 6, 2023, Mitchell pled guilty to possessing methamphetamine with the intent to distribute, in violation of 21 U.S.C. § 841(a)(1). Gearin entered a guilty plea to similar charges and is awaiting sentencing.
The Weakley Co. Sheriff’s Department, Tennessee Bureau of Investigation, 27th Judicial District Drug Task Force, and the Drug Enforcement Administration investigated this case.
United States Attorney Kevin Ritz thanked Assistant United States Attorney Josh Morrow who prosecuted this case on behalf of the government, as well as the law enforcement partners.
Wayne County Sex Offender Pleads Guilty to Child Pornography CrimeRead the Press Release
HUNTINGTON, W.Va. – David Lee Pinson, 41, of Ceredo, pleaded guilty today to possession of prepubescent child pornography.
According to court documents and statements made in court, Pinson admitted to uploading several images and videos of child pornography to his Google Photos account on May 28, 2022, in Ceredo. One of the videos depicts a prepubescent boy and girl engaging in sexual intercourse and sexually explicit conduct.
Pinson further admitted to possessing six images and 332 videos of child pornography on a memory card on August 16, 2022, and to viewing the images using his cell phone. Pinson also admitted that 44 of the images and videos depict known child victims, and that some of the images depict infants and toddlers.
Pinson is scheduled to be sentenced on October 2, 2023, and faces a maximum penalty of 20 years in prison, at least five years and up to a lifetime of supervised release, and a $250,000 fine. Pinson is a registered sex offender as a result of his conviction for possession of child erotica in Wayne County Circuit Court on August 20, 2020.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Department of Homeland Security-Homeland Security Investigations (HSI).
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Julie M. White is prosecuting the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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-173.
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Watervliet Woman Sentenced for Wire FraudRead the Press Release
ALBANY, NEW YORK – Ouida Cordell, age 47, of Watervliet, New York, was sentenced today to two years of probation for her submission of a fraudulent Economic Injury Disaster Loan (EIDL) application to the United States Small Business Administration (SBA).
United States Attorney Carla B. Freedman; Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Matthew Miraglia, Special Agent in Charge of the FBI’s Buffalo Field Office, made the announcement.
As part of her previously entered guilty plea, Cordell admitted that on July 13, 2020, she submitted an online application to the SBA for an EIDL on behalf of her company, Bashment Entertainment LLC (Bashment), that falsely overstated Bashment’s annual revenues. As a result of the fraud, Cordell and her company Bashment received an EIDL loan in the amount of $149,500 for which she and the company were not entitled. EIDLs were low-interest, government-backed loans meant for businesses struggling with the financial effects of the coronavirus pandemic.
United States District Judge Glenn T. Suddaby also sentenced Cordell to perform 100 hours of community service, and to pay restitution in the amount of $149,400.
The FBI, with assistance from the New York State Department of Taxation and Finance, Office of Internal Affairs, and the U.S. Treasury Inspector General for Tax Administration, investigated this case. Assistant U.S. Attorney Rick Belliss prosecuted this case.
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.
Watervliet Man Pleads Guilty to Drug and Firearm CrimesRead the Press Release
ALBANY, NEW YORK – Ronnie Robinson, age 29, of Watervliet, New York, pled guilty today to possessing a firearm as a felon, possessing and intending to distribute marijuana, and to possessing a firearm in furtherance of a drug trafficking crime.
United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
Robinson admitted that on November 30, 2021, he possessed approximately 268 grams of marijuana that he intended to distribute and that he possessed a firearm in order to protect the marijuana, drug proceeds, and his marijuana trafficking business. Robinson had been previously convicted of three felonies and was on supervised release for a 2015 conviction for unlawfully possessing a firearm as a felon when he was caught with the marijuana and the firearm in this case.
Sentencing is scheduled for October 26, 2023, before United States District Judge Glenn T. Suddaby. Robinson faces a minimum sentence of 5 years and a maximum sentence of life in prison, a fine of up to $250,000, and a post-imprisonment term of supervised release of at least 2 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the FBI, New York State Police, and the United States Probation Office. Assistant U.S. Attorneys Dustin C. Segovia and Cyrus P.W. Rieck are prosecuting the case.
Washington, D.C. Man Sentenced for Assault with a Dangerous Weapon in Road Rage ConfrontationRead the Press Release
Defendant Pointed Firearm at Mother and Daughter
WASHINGTON – Jacobi Williams, 36, of Washington, D.C., was sentenced today to 72 months in prison and 36 months of supervised release for felony assault, announced U.S. Attorney Matthew M. Graves and Interim Chief Ashan Benedict, of the Metropolitan Police Department (MPD). Williams was found guilty by a jury on December 9, 2022, of two counts of assault with a dangerous weapon (firearm) following a two-week trial in D.C. Superior Court.
On April 26, 2018, Williams began honking his horn at a mother and daughter sitting in the vehicle ahead of him in traffic at the intersection of 4th and I Street NW. Mr. Williams tried to drive around them but was unable to do so. He reversed his vehicle and threatened the mother and daughter at gunpoint before driving away when the traffic cleared. Williams was identified from surveillance footage in the immediate moments before and after the assault.
Mr. Williams is awaiting trial on an unrelated 2021 homicide offense, which is set for trial in September 2023. Mr. Williams is facing another homicide offense in Charles County, Maryland.
In announcing the verdict, U.S. Attorney Graves and Interim Chief Benedict commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the work of Assistant U.S. Attorneys Omeed Assefi and Anna Forgie, who tried the case.
Virginia-area man who groomed a child online and sexually assaulted her after moving to Wisconsin receives 20 years in federal prison.Read the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on June 23, 2023, Senior United States District Judge William C. Griesbach sentenced Stanley J. Seifert III (age: 45) to a total sentence of 20 years’ imprisonment, followed by 20 years’ supervised release, and a lifetime sex-offender registration after Seifert pled guilty to child enticement and receiving child pornography, in violation of Title 18, United States Code, Sections 2252A and 2422.
According to court records, when Seifert was living in Virginia, he met a then-15-year-old from Wisconsin in an online game platform. Unknown to the child’s parents, Seifert groomed her for months, including sexually explicit chats and live videos of child pornography. Seifert moved to Green Bay in July 2022 to be closer to the victim. Soon thereafter, Seifert bought the victim a phone and began surreptitiously picking her up for sexual encounters in a secluded wooded area. The child’s mother first learned of Seifert’s existence and conduct when she went into the child’s room and interrupted a live video where Seifert was directing the child to perform sexually explicit acts. Officers were immediately contacted and began investigating. They found and arrested Seifert in Michigan, where he was working for his Wisconsin-based employer, a job he recently obtained to move closer to the victim.
Seifert was extradited to Wisconsin by the Kewaunee County District Attorney’s Office, and Seifert remained in continuous custody as state and federal prosecutors worked collaboratively toward the outcome.
In sentencing Seifert, Judge Griesbach emphasized that Seifert targeted, groomed, and sexually assaulted the child, with an obviously devastating impact and loss of her childhood, and potentially residual impact going forward into adulthood. The judge said that Seifert’s conduct called for strong punishment and the need to protect the public from him, as well as the broader deterrent message for others contemplating similar conduct.
United States Attorney Haanstad said, “The United States Department of Justice has made the protection of our nation’s children a top priority through Project Safe Childhood and other efforts. Prosecutions like this one promote that critically important goal.” He added: “Anyone involved in the enticement of children, including anyone who travels for the purpose of meeting with a child for sexual purposes, will be investigated thoroughly and prosecuted to the full extent of the law.”
Kewaunee County District Attorney Andrew P. Naze stated “I applaud the hard work of all the local law enforcement agencies that worked to bring Mr. Seifert to justice, especially the Kewaunee County Sheriff’s office and Inv. Vandermoss for their diligent investigation and apprehension of Mr. Seifert. AUSA Funnell and the FBI should be applauded for their work in securing a just sentence for Mr. Seifert as well.”
The investigation was spearheaded by the Kewaunee County Sheriff’s Department, with critical assistance from the Brown County Sheriff’s Department’s Internet Crimes Against Children Task Force, the Michigan State Police ICAC, and the Federal Bureau of Investigation in Green Bay. It was prosecuted by Assistant United States Attorney Timothy W. Funnell.
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 U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Victorville Woman Sentenced to 2½ Years in Federal Prison for Using Inmates’ Info to Illegally Obtain over $500,000 in COVID Jobless AidRead the Press Release
LOS ANGELES – A San Bernardino County woman was sentenced today to 30 months in federal prison for fraudulently obtaining more than $500,000 in pandemic-related unemployment insurance (UI) benefits by using the names of inmates locked up the California state prison system.
Cynthia Ann Hernandez, 33, a.k.a. “Cynthia Roberts,” of Victorville, was sentenced by United States District Judge Mark C. Scarsi, who also ordered her to pay $515,138 in restitution.
Hernandez pleaded guilty on January 23 to one count of mail fraud and one count of access device fraud.
During the summer of 2020, Hernandez filed with the California Employment Development Department (EDD) fraudulent applications for UI benefits in the names of persons incarcerated in the California state prison system and who were ineligible to receive jobless benefits. EDD manages California’s unemployment insurance benefit program.
Hernandez falsely stated on the UI benefits applications that the named claimants were individuals whose employment had been negatively affected by the COVID-19 pandemic and were eligible for pandemic unemployment assistance under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Congress passed the CARES Act in March 2020, in part, to help individuals whose employment and finances were adversely affected by the pandemic.
The applications also falsely stated that the named claimants were eligible for the UI benefits and that they resided and worked in Los Angeles and Orange counties. EDD then authorized Bank of America to issue debit cards in the claimants’ names that were mailed to Hernandez’s mailing address.
In total, Hernandez caused at least 29 fraudulent applications to be filed with EDD.
“[Hernandez] orchestrated a sophisticated scheme that deprived the state of over [$500,000] meant to provide relief for vulnerable taxpayers who were unable to work due to the COVID-19 pandemic,” prosecutors wrote in a sentencing memorandum. “She did so by applying for UI benefits for people who were plainly ineligible and did so for her own financial gain.”
This matter was investigated by the United States Department of Labor, Office of Inspector General; the California Employment Development Department, Investigation Division; Homeland Security Investigations; the California Department of Corrections and Rehabilitation; the United States Department of Homeland Security, Office of Inspector General; the United States Postal Inspection Service; and United States Customs and Border Protection’s Special Response Team.
Assistant United States Attorney Haoxiaohan Cai of the General Crimes Section prosecuted this case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Union Financial Recording Secretary Sentenced for False Entry in a Union RecordRead the Press Release
NEW ORLEANS, LOUISIANA – WILBERT BARNES, a resident of Angie, Louisiana, was sentenced on June 22, 2023 to 2 years of probation, 100 hours of community service, and a $25 mandatory special assessment fee, announced United States Attorney Duane A. Evans. Pursuant to the Mandatory Victim Restitution Act, United States District Judge Barry Ashe further imposed restitution of $12,500, which BARNES has already paid. BARNES previously pled guilty to making a false entry in a union record, having misappropriated $12,500 of funds from United Steelworkers Local 1362.
According to court records, BARNES held the position of Recording Secretary of United Steelworkers Local 1362. BARNES confessed to the local sheriff’s office that he took $12,500 of Local 1352’s funds via two unauthorized checks in June 2021. Upon further investigation, it was determined that BARNES had misappropriated at least $25,000 of Local 1362’s funds since 2017. In 2017, BARNES negotiated a Local 1362 check worth $9,000. In May of 2021, BARNES negotiated a check for $4,000 with a memo entry falsely stating that the check was for “school books, t-shirts.” In June of 2021, BARNES forged a check for $7,500 and made a cash withdrawal from the union’s account in the amount of $5,000. BARNES confessed that he used this money to pay his gambling debts.
U.S. Attorney Evans praised the work of the U.S. Department of Labor in investigating this matter. Assistant U. S. Attorney Rachal Cassagne of the Narcotics Unit is in charge of the prosecution.
U.S. Attorney’s Office Announces Results of Recent Efforts to Crack Down on Gun Violence Throughout IdahoRead the Press Release
BOISE – U.S. Attorney Josh Hurwit announced today that, in the past week, eight individuals pleaded guilty or were sentenced in federal district court for firearms offenses and related drug trafficking offenses. These Idaho investigations are all part of the U.S. Attorney’s Office’s Project Safe Neighborhoods initiative, which is a key component of the Department of Justice violent crime reduction strategy.
The following defendants were sentenced within the past week:
- Jeffery Donald Manchester, 36, of Auburn, Washington, was sentenced to 57 months in federal prison for unlawful possession of a firearm, to be followed by three years of supervised release. Manchester sold a confidential informant an unlawfully‑possessed AK47 style rifle. Manchester possessed the firearm he sold to the confidential informant knowing that he had previously been convicted of several crimes punishable by a term of imprisonment exceeding one year. Those convictions included the manufacturing/delivery of a controlled substance in King County, Washington, drug trafficking in heroin and unlawful possession of a firearm in Ada County, Idaho, and conspiracy to distribute oxycodone and heroin in the Idaho.
- Anthony Erasmo Madrid, Sr., 45, of Nampa, was sentenced to 27 months in federal prison, for unlawful possession of a firearm, to be followed by three years of supervised release. Madrid sold a Remington 6mm rifle to a confidential informant for $500. Madrid was prohibited from possessing firearms due to a 2019 conviction for burglary. Madrid had previously been convicted of battery on two occasions, domestic battery on two occasions, forgery on two occasions, burglary on two occasions, violation of a no contact order, identity theft, possession of methamphetamine, and grand theft. At the time Madrid unlawfully possessed the firearm, he was under a criminal justice sentence in four separate cases.
- Gary Carl Partee, 39, who was squatting on public land outside of Mountain Home, was sentenced to 24 months in federal prison for unlawful possession of a firearm, to be followed by three years of supervised release. On August 4, 2022, Bureau of Land Management served a search warrant on a motorhome that had been illegally parked on public land for several months. At this time, Partee was living in a makeshift tent next to the motorhome, which was broken down. Law enforcement observed a rifle in a parked vehicle that Partee admitted to possessing. Partee also possessed a rattlesnake, which he kept in a box next to the motorhome, that he was ordered to release. Partee was prohibited from possessing firearms due to a 2017 conviction for delivery of a controlled substance. Partee had also previously been convicted of possession of a controlled substance, and possession of a controlled substance with intent to deliver. In 2016, he was charged with possessing prohibited wild animals for possessing a rattlesnake.
- Spencer Gibson, 32, of Nampa, was sentenced to 18 months in federal prison for dealing firearms without a license, to be followed by two years of supervised release. According to court records, between January 2020 and April 21, 2022, Gibson purchased and resold approximately 22 firearms with the principal objective of livelihood and profit. Gibson also sold an AR style rifle to an undercover agent with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Gibson is not a licensed firearms dealer and admitted knowing that his conduct was unlawful. One of the firearms sold by Gibson was transported out of state and used by another person to shoot and kill a police officer.
- Travis Johnson, 50, of Idaho Falls, was sentenced to four months of home detention, to be followed by three years of probation, and a $55,000.00 fine, for dealing firearms without a license. According to court records, between November 21, 2020, to June 7, 2021, Johnson sold approximately 15 firearms to another individual. Approximately five of those firearms were ordered by that individual and Johnson thereafter purchased and resold them to this customer. Johnson is not a licensed firearms dealer and admitted knowing that his conduct was unlawful. One of the firearms sold by Johnson was recovered in Los Angeles, California, 53 days after purchase, and seized as part of an investigation of criminal activity.
- Thomas Downs, 37, of Blythe, California, was sentenced to 136 months in federal prison for possession with intent to distribute methamphetamine, to be followed by five years of supervised release. According to court records, in April 2022, the Idaho State Police stopped Downs on the interstate for a traffic violation. During the traffic stop, troopers located four pounds of methamphetamine and a firearm in the vehicle. Law enforcement obtained a search warrant for Downs’s cell phone, which revealed additional evidence of drug trafficking, messages about acquiring firearms, and pictures of firearms. Downs has a criminal history that includes domestic violence and making threats.
In addition, the following defendants pleaded guilty in the past week:
- Shane Michael Bohn, 35, of Lewiston, Idaho, pleaded guilty to unlawful possession of firearms. Bohn was initially charged in November of 2022 after officers found multiple firearms at his residence. He was on probation at the time and had previously been convicted of aggravated assault. Bohn was prohibited from possessing firearms because of his prior conviction.
- Matthew Durham, 24, of Lewiston, Idaho, also pleaded guilty to unlawful possession of firearms. In December of 2022, Durham was in possession of a shotgun that was ultimately located and seized by officers. At the time Durham possessed the firearm, he had previously been convicted of possession of controlled substances, was on parole, and had an active civil protection order pending.
Bohn and Durham are now scheduled to be sentenced in October of 2023, and each faces a maximum penalty of 15 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
“Reducing violent crime is a top priority for my Office,” said U.S. Attorney Hurwit. “Our law enforcement partners and prosecutors are very effective at identifying and removing from our streets those individuals who pose the greatest risk of violence in our communities. And I am grateful to our state and local partners who support our efforts and help us to better understand the particular issues in their communities. It’s all about maintaining our quality way of life throughout Idaho.”
“In almost every case highlighted here the individual knew that they were not supposed to possess firearms,” said ATF Seattle Special Agent in Charge Jonathan T. McPherson. “Further, some of these individuals were dealing in firearms illegally, and in one case it led to the murder of a police officer. We will never stop investigating those who are illegally possessing or illegally selling firearms.”
Project Safe Neighborhoods is an evidence-based program which has proven to be effective at reducing violent crime by engaging a broad spectrum of participants in identifying the most pressing violent crime problems in communities and developing comprehensive solutions that reduce crime. As part of this strategy, Project Safe Neighborhoods focuses on strategic enforcement of the most violent offenders and prevention and intervention efforts through community engagement and problem-solving partnerships. In 2021, the Department of Justice launched a violent crime reduction strategy strengthening Project Safe Neighborhoods 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.
In addition to the Project Safe Neighborhoods initiative, U.S. Attorney Hurwit has continued to strengthen programs sponsored by state and local partnerships.
- In Southwestern Idaho, the Treasure Valley Partnership and the State of Idaho hired a Special Assistant U.S. Attorney (SAUSA) to address gang crimes. This position, which was created in 2007, has been instrumental in combatting violent crime. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit www.treasurevalleypartners.org.
- In Southeastern Idaho, a similar SAUSA position was created in 2016 by the Eastern Idaho Partnership (EIP) and the State of Idaho. The EIP is a coalition of local city and county officials in eastern Idaho.
- In North Idaho, the Nez Perce County Prosecuting Attorney’s Office has designated one of its Deputy Prosecuting Attorney’s as a SAUSA to work with the U.S. Attorney’s Office, including on the Bohm and Durham cases announced today
These SAUSA programs allow law enforcement to leverage the federal criminal justice system to prosecute, convict, and sentence violent, armed criminals, and drug traffickers. These criminals often receive significant penalties in federal prison that are served outside of Idaho, saving the State of Idaho millions of dollars as measured by what it would cost to prosecute and house these offenders through the state system.
The cases described above were investigated by various law enforcement agencies including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Federal Bureau of Investigation (FBI), Bureau of Land Management (BLM), as well as other federal, state, and local partners.
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U.S. Attorney Steven A. Russell Announces RetirementRead the Press Release
After 37 years of service, United States Attorney for the District of Nebraska Steven A. Russell announced today that he intends to retire on June 30, 2023.
An alumnus of the University of Nebraska College of Law (Class of 1982), Russell joined the United States Attorney’s Office in 1985, briefly serving in Omaha before moving to Lincoln in January 1986. Russell handled a wide variety of civil and criminal matters, including civil litigation, white collar fraud, tax crimes, drug trafficking, civil rights violations and crimes involving the sexual exploitation of children. During his time in the office, Russell has served at various times as Branch Manager for the Lincoln U.S Attorney’s Office, Senior Litigation Counsel, Appellate Coordinator and First Assistant United States Attorney. On June 1, 2022, Russell was appointed as Acting United States Attorney and later appointed by the United States District Court to serve as Interim United States Attorney, a position he has held since. The United States District Court will appoint Russell’s successor to take over as Interim United States Attorney following the end of his service until such time as a presidentially appointed, Senate-confirmed U.S. Attorney is named.
Russell said, “It is an honor to have served the citizens of Nebraska in the United States Attorney’s Office for the past nearly 38 years. It is a privilege to have worked with many talented law enforcement agents who are dedicated public servants truly desiring to make their communities safer every day. I am humbled to have been employed with so many excellent attorneys and support staff during my tenure here. I was incredibly fortunate to have practiced before the finest judges in the country, whose intelligence, temperament, and commitment to the rule of law made each of them the living embodiment of what a great judge should be. There can be no greater source of professional pride than saying to the Court or a jury that ‘my name is Steve Russell, and I am an Attorney representing the United States of America.’ It has been a joy and pleasure to have worked in the United States Attorney’s Office.”
Two sentenced to a combined 23 years for bank robberies in West Virginia, Virginia, and PennsylvaniaRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Virginia couple was sentenced today for bank robberies that spanned three states.
William Birdsall, 51, of Boones Mill, Virginia, was sentenced today to 20 years in prison after pleading guilty to bank robbery. Jaqueline Elizabeth Havens, 56, also of Boones Mill, was sentenced to 36 months in prison for disposing of the money that was stolen.
U.S. District Judge Gina M. Groh heard testimony today that Birdsall carried out a series of bank robberies in West Virginia, Virginia, and Pennsylvania over an eight-month span, stealing more than $162,000. The targeted banks in West Virginia were the Bank of Romney, in Augusta; Summit Community Bank, in Rupert; and M&T Bank in Fort Ashby. Following the robberies, Havens assisted Birdsall with hiding the money and spending the proceeds on three vehicles, Havens’ mortgage, and a down payment on land. Birdsall previously served a 15-year sentence for robbing six banks in Pennsylvania, West Virginia, and Nevada in 2004 and 2005.
Birdsall must pay $162,475 in restitution, and Havens is jointly responsible for $129,300 of that amount. The judge ordered Birdsall and Havens to forfeit the three purchased vehicles, a firearm, and cash.
The Federal Bureau of Investigation, Pittsburgh Division; the West Virginia State Police; the Mineral County Sheriff’s Office; the Augusta County, Virginia, Sheriff’s Office; and the Pennsylvania State Police investigated. Assistant U.S. Attorney Kimberley Crockett prosecuted the case on behalf of the government.
Troy Man Sentenced to 20 Months for Unlawfully Possessing a Short-Barreled RifleRead the Press Release
ALBANY, NEW YORK – Curtis D. Black, Jr., age 32, of Troy, New York, was sentenced today to 20 months in prison for possessing an unregistered short-barreled rifle.
United States Attorney Carla B. Freedman; John B. DeVito, Special Agent in Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and Troy Police Chief Daniel DeWolf made the announcement.
As part of his previously entered guilty plea, Black, Jr. admitted to possessing an unregistered PA-15 Multi-Caliber Palmetto State Armory rifle. The rifle, which had a barrel length of less than 16 inches, was not registered to the defendant in the National Firearms Registration and Transfer Record, as required.
United States District Judge Glenn T. Suddaby also sentenced Black, Jr. to a 3-year term of supervised release, to begin after his imprisonment.
ATF and Troy Police investigated the case. Assistant U.S. Attorney Allen J. Vickey and Joshua Rosenthal prosecuted the case.