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Thursday 27 April 2023
Three Individuals Charged with Unlawfully Possessing U.S. Postal Service Key and Possession of Stolen MailRead the Press Release
BIRMINGHAM, Ala. – A federal grand jury yesterday indicted three individuals with possession of stolen mail and the unlawful possession of postal service keys, announced U.S. Attorney Prim F. Escalona and U.S. Postal Inspection Service Inspector-in-Charge Scott D. Fix, Houston Division.
A nine-count indictment filed in U.S. District Court charges Derrell Allen Matthews, 25, of Birmingham and Keaundria Janae Gresham, 30, of Pleasant Grove, with conspiracy. Matthews was also charged with paying a bribe to a public official, possession of U.S. Postal Service Keys, stolen or reproduced, and possession of stolen mail. Gresham was also charged with public official accepting a bribe and possession of U.S. Postal Keys, stolen or reproduced. Steven Cornelius Hudson, Jr, 34, of Bessemer, was charged with possession of stolen mail.
According to the indictment, Gresham was employed by the United States Postal Service (USPS) as a letter carrier and was assigned to a U.S. Post Office in Birmingham. Between July 2022 and November 2022, Gresham used her position to provide unauthorized access to a USPS Arrow Keys to Matthews in exchange for money. In October 2022, Matthews was found in possession of a postal service key and stolen mail. In April 2023, Matthews, along with co-defendant Hudson, Jr., was found in possession of a postal service key and stolen mail.
If you like to report United States Postal Service mail theft or other crimes committed through or towards the United States Postal Service, please contact the United States Postal Inspection Service at 1-877-876-2455 or https://www.uspis.gov/report.
The maximum penalty for conspiracy is five years in prison. The maximum penalty for unlawful possession of a postal service key is 10 years in prison. The maximum penalty for paying a bribe to a public official and a public official accepting a bribe is 15 years in prison. The maximum penalty for possession of stolen mail is five years in prison.
U.S. Postal Inspection Service investigated the case. Assistant U.S. Attorney Daniel McBrayer is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Texas Tax Preparer Sentenced for False ReturnsRead the Press Release
A Texas woman was sentenced today to 27 months in prison for willfully assisting clients in the preparation and filing of false tax returns with the IRS.
According to court documents, between 2014 and 2017, Adela Cruz operated a business in Uvalde County preparing tax returns. To inflate her clients’ refunds, Cruz claimed on those returns false education credits, dependents, and business profits or losses. Cruz did not sign these false returns as the preparer, but rather concealed her involvement by using fictitious taxpayer emails. Cruz also claimed false education credits on her own tax returns for 2015 and 2016.
In addition to the term of imprisonment, U.S. District Judge David Counts ordered Cruz to serve one year of supervised release and to pay a $1,500 fine and $129,239 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jaime E. Esparza for the Western District of Texas made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorneys Robert A. Kemins and Nicholas J. Schilling, Jr., of the Justice Department’s Tax Division are prosecuted the case.
Tesoro to Pay $27.5 Million for Violating Previous Court Order Requiring it to Reduce Air Pollution at Its Martinez, Calif. RefineryRead the Press Release
The Department of Justice and the Environmental Protection Agency (EPA) today announced that Tesoro Refining and Marketing Company will pay a $27.5 million penalty for violating a 2016 consent decree ordering the company to reduce air pollution at its petroleum refinery in Martinez, California. In particular, according to today’s settlement, Tesoro failed to limit air emissions of nitrogen oxides (NOX), a pollutant that contributes to smog.
The settlement requires Tesoro to adhere to strict pollution controls at the facility. The facility is currently undergoing conversion into a renewable fuels plant, which will use renewable sources such as vegetable oils to produce fuels instead of crude oil. The settlement also sets up a framework for additional pollutant reductions, including significant climate co-benefits. Specifically, the settlement requires Tesoro to forego hundreds of annual emission credits that it could otherwise sell to area sources who could then increase their emissions.
“Today, we are holding Tesoro accountable for its failure to implement court-ordered pollution controls,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “This settlement requires Tesoro to forfeit substantially more air emission credits than the excess emissions associated with its violations, resulting in cleaner air for those who live and work in the San Francisco area.”
“Tesoro did not meet the consent decree pollution limit because it did not install adequate pollution controls,” said Acting Assistant Administrator Larry Starfield for EPA’s Office of Enforcement and Compliance Assurance. “As this settlement shows, EPA will seek substantial penalties when companies delay installing appropriate pollution controls to meet environmental obligations.”
In May 2020, Tesoro suspended operations at the Martinez refinery and then announced its plan to convert the refinery to a renewable fuels plant. Today’s agreement includes requirements to limit air pollution from the future renewable fuels plant. The agreement does not prohibit Tesoro from resuming petroleum refining, but if it does so, Tesoro must install specific air pollution control technology, at an expected cost of $125 million, to ensure stringent NOX emission limits are met.
“Tesoro failed to meet its requirement to reduce air pollution at the Martinez refinery, and EPA is now taking firm action to hold Tesoro accountable,” said Regional Administrator Martha Guzman of the EPA Pacific Southwest. “This settlement ensures that Tesoro complies with stringent air pollution limits, to protect neighboring communities regardless of fuel type.”
To mitigate pollution resulting from its violation of the 2016 consent decree, Tesoro agreed to surrender most of its existing NOX emission trading credits. Tesoro also agreed to forego almost all trading credits from the shutdown of petroleum refining equipment should it convert to a renewable fuels plant. A company can receive emission credits by shutting down equipment and then apply such credits to offset emissions from new projects or trade such credits to other companies for their use. By requiring Tesoro to surrender existing credits and forego petroleum-related shutdown credits if it converts to a renewable fuels plant, the settlement prevents Tesoro and other local sources from using these credits. As a result, the settlement filed today will limit emissions in the San Francisco Bay area.
Specifically, if Tesoro resumes petroleum refining, the settlement requirements will reduce annual air emissions by about 261 metric tons of NOX. If Tesoro converts the facility to a renewable fuels plant, the settlement will result in annual air emissions reductions of about 440 tons of NOX, 327 tons of sulfur dioxide, 697 tons of carbon monoxide, 69 tons of volatile organic compounds, 301 tons of fine particulate matter and the equivalent of 1,342,025 tons of carbon dioxide.
The terms of a 2016 federal consent decree, which resolved Clean Air Act violations at the Martinez refinery and five other refineries nationwide, established emission limits for multiple pollutants including NOX. The settlement announced today, which will modify the 2016 settlement, includes new requirements that apply whether Tesoro chooses to reopen the Martinez facility as a petroleum refinery or a renewable fuels plant.
There will be a 30-day public comment period on the modification to the 2016 settlement. Information on how to comment on the modification will be available in the Federal Register and at www.justice.gov/enrd/consent-decrees.
For more information on the 2016 federal consent decree and today’s agreement, go to 2023 Tesoro Martinez Clean Air Act Settlement Information Sheet | US EPA.
Summerset Man Sentenced for Child Pornography and Assault on a Federal OfficerRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Jeffrey L. Viken has sentenced a Summerset, South Dakota, man convicted of Receipt of Child Pornography and Assault on a Federal Officer. The sentencings took place on April 21, 2023.
As to the charge of Receipt of Child Pornography, Caleb Wayne Cook, 24, was sentenced to five years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
For the Assault on a Federal Officer, Cook was sentenced to 18 months in federal prison, to be served consecutively to the other five-year sentence, followed by three years of supervised release, and ordered to pay another $100 special assessment to the Federal Crime Victims Fund.
Cook was indicted for Receipt of Child Pornography and Possession of Child Pornography by a federal grand jury in March of 2022. He was indicted for Assault on a Federal Officer in May of 2022. He pleaded guilty on January 18, 2023.
Between September 2016 and December 2021, Cook used the Internet to download images of child pornography and videos depicting child pornography into his Dropbox account and other devices. This conduct was brought to the attention of law enforcement through a Cybertip sent by Dropbox to the National Center for Missing and Exploited Children. When the Dakota Territory Fugitive Taskforce executed the arrest warrant on Cook at his workplace, Deputy U.S. Marshals attempted to place Cook into custody. Cook pulled a handgun out of his waistband, racked the slide, and barricaded himself in a restroom. The Rapid City Special Response Team and their negotiators were called in and were able to talk Cook out of the restroom. Cook was placed under arrest for the child pornography charges and an additional charge for the assault on the Deputy U.S. Marshals.
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.
This case was investigated by the South Dakota Division of Criminal Investigation Internet Crimes Against Children Task Force, Pennington County Sheriff’s Office, Rapid City Police Department, and the U.S. Marshals Service. Assistant U.S. Attorney Heather Knox Sazama prosecuted the case.
Cook was immediately remanded to the custody of the U.S. Marshals Service.
Suburban Chicago High School Coach Charged with Possession of Child PornographyRead the Press Release
CHICAGO — A suburban Chicago high school track and field coach has been charged with possessing child pornography.
Per the complaint, beginning in the summer of 2022 and continuing until September of 2022, GLEN CLIFFORD MESSMER, 46, of Darien, an assistant track coach at High School A, interacted with at least two minors, Minor A and Minor B, in another State via the social media platforms Snapchat and Telegram. Messmer convinced the two minors to produce child sexual abuse material, in at least one instance providing specific instructions as to how to produce the material he wanted. The complaint alleges that Messmer paid Minor A and Minor B for the child sexual abuse material via CashApp.
On April 25, 2023 law enforcement executed a search warrant at Messmer’s home and identified multiple image and video files that contained child pornography on a computer in the residence. Messmer was arrested and had an initial appearance before United States Magistrate Judge Jeffrey Cummings on April 26, 2023. Messmer is currently detained in federal custody pending a detention hearing before Judge Cummings.
The charge was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; and Sean Fitzgerald, Special Agent-in-Charge of the Chicago Office of Homeland Security Investigations. The government is represented by Assistant U.S. Attorney Adam Rosenbloom.
The public is reminded that a complaint contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The charges are punishable by a maximum of 10 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by logging on to www.missingkids.com or by calling 1-800-843-5678. The service is available 24 hours a day, seven days a week.
Stratford Doctor Sentenced to 4 Years in Federal Prison for Health Care Fraud and Illegal Kickback OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that ANANTHAKUMAR THILLAINATHAN, MD, 45, of Stratford, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 48 months of imprisonment, followed by three years of supervised release, for health care fraud and illegal kickback offenses.
According to court documents and statements made in court, Thillainathan is a medical doctor and the owner and president of MDCareNow LLC, a medical practice with offices in Stratford and Milford. MDCareNow has been a participating provider enrolled as both an internal medicine group and as a behavioral health clinician group in the Connecticut Medicaid program. Between approximately June 2019 and May 2022, Thillainathan submitted or caused to be submitted to Connecticut Medicaid approximately $839,724 in fraudulent claims for psychotherapy services that he knew patients did not receive from his employees. Thillainathan knew that the billed psychotherapy Current Procedural Terminology (CPT) codes, which identify the nature and complexity of the services provided, were not supported by medical records provided by his employees, and that the services were not provided. The investigation revealed that Thillainathan submitted fraudulent claims to Medicaid for reimbursement that falsely represented his employees had rendered 60-minute psychotherapy sessions when, in fact, his employees only had very brief conversations with patients, had only left a voicemail for patients, or had no contact with patients at all.
In addition, in violation of his Connecticut Medical Assistance Program (CTMAP) provider agreement, Thillainathan paid a third-party “patient recruiting” company for each Connecticut Medicaid patient the company recruited and provided with transportation to MDCareNow for medical services. Thillainathan paid the patient recruiting company approximately $100 per patient for an initial visit to MDCareNow and approximately $40 per patient for any subsequent visit. Between approximately November 2019 and May 2021, Thillainathan paid the patient recruiting company for the recruitment of approximately 1,018 Connecticut Medicaid patients, and Connecticut Medicaid reimbursed MDCareNow a total of approximately $1,071,328 for services provided to these patients.
Judge Underhill ordered Thillainathan to pay $1,674,880 in restitution, with $500,000 due within 60 days.
On November 3, 2022, Thillainathan pleaded guilty to one count of health care fraud and one count of kickbacks involving federal health care programs.
While he was released on bond and awaiting sentencing, Thillainathan surrendered his Connecticut Controlled Substance Certificate of Registration. Despite no longer holding a valid controlled substance license, Thillainathan wrote at least 34 prescriptions for controlled substances, including 14 prescriptions for oxycodone. Thillainathan’s bond was revoked, and he has been detained since January 13, 2023.
Thillainathan, a citizen of Sri Lanka and a lawful permanent resident of the U.S., faces immigration proceedings when he completes his prison term.
This investigation was conducted by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG), the Medicaid Fraud Control Unit of the Connecticut Chief State’s Attorney’s Office, the Connecticut Attorney General’s Office and the Connecticut Department of Social Services. The case was prosecuted by Assistant U.S. Attorneys Heather L. Cherry and Elena L. Coronado.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
Sioux City Woman Sentenced to Federal Prison for Lying on Firearm Purchase FormRead the Press Release
Christen Williams, 35, from Sioux City, Iowa, was sentenced today to 10 months in federal prison for making false statements during the purchase of a firearm. Williams received the prison term after a December 5, 2022, guilty plea.
Evidence at the hearing established that between August 23 and 24, 2021, Williams purchased three firearms from Fleet Farm in Sioux City. Williams falsely indicated on the purchase forms that she was the intended recipient when she was purchasing the firearms on the behalf of another. These firearms were later recovered at three separate crime scenes over the next 46 days, one of which was a drive-by shooting.
Williams was sentenced in federal court in Sioux City, Iowa, by United States District Court Chief Judge Leonard T. Strand to 10 months’ imprisonment. She must also serve a 1-year term of supervised released following the prison term. There is no parole in the federal system.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was prosecuted by Assistant United States Attorney Kraig R. Hamit and was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4079. Follow us on Twitter @USAO_NDIA.
Sioux City Man Pleads Guilty to Illegal Possession of FirearmsRead the Press Release
Felipe Martin, 26, from Sioux City, Iowa, pled guilty on April 27, 2023, to being a prohibited person in possession of firearms.
Evidence at the plea hearing showed that on August 29, 2022, law enforcement conducted a traffic stop in Lemars, Iowa, of a vehicle that defendant was driving and noted the odor of marijuana coming from inside the vehicle. During a search of the vehicle, a Glock 9mm Luger, a .45 ACP pistol, ammunition, and a marijuana roach were found. Law enforcement later executed a search warrant at defendant’s residence and recovered drug paraphernalia, baggies, cocaine, and marijuana. Defendant further admitted he was an unlawful user of marijuana and cocaine, which by federal law prohibits a person from possessing any firearm or ammunition.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Martin was allowed to remain on release pending sentencing. He faces a possible maximum sentence of 15 years’ imprisonment, a $250,000 fine, and not more than three years of supervised release following any imprisonment.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case is being prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by the Plymouth County Sheriff’s Office, Le Mars Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4078. Follow us on Twitter @USAO_NDIA.
Silicon Valley Start-Up Founder Pleads Guilty to Securities Fraud for Overstating Revenue to InvestorsRead the Press Release
SAN FRANCISCO – Manish Lachwani pleaded guilty in federal court in San Francisco today to wire fraud and securities fraud charges in connection with his scheme to dupe potential investors into supporting the technology start-up he founded and led, announced United States Attorney Ismail J. Ramsey and FBI Special Agent in Charge Robert K. Tripp. The guilty pleas were accepted by U.S. District Judge Charles R. Breyer.
Lachwani, 47, of Los Altos, Calif., founded Silicon Valley-based HeadSpin, a company that provided clients with software tools and access to devices to test mobile applications. Lachwani founded the company in 2015 and served as its Chief Executive Officer until May 2020. Between April 2017 and April 2020, HeadSpin raised more than $100 million from investors over multiple rounds of fundraising, leading to a valuation of approximately $1.1 billion. According to his plea agreement, Lachwani admitted that he disseminated false and overstated revenue metrics to potential investors to lure investments into his company.
The plea agreement provides several details of the fraud. Lachwani acknowledged that while HeadSpin was raising money, he provided to prospective investors information about the company’s business, customers, revenue, and finances. Further, because HeadSpin was a software-as-a-service company, Lachwani knew that annual recurring revenue, known as “ARR,” was significant to investors and their decisions whether to invest in HeadSpin. According to the plea agreement, Lachwani admitted that he provided prospective investors with inflated ARR numbers and overstated revenue numbers. With respect to these metrics, Lachwani included amounts from potential customers that had not agreed to pay subscription fees to HeadSpin, amounts that were more than real customers had agreed to pay, and amounts from customers that had stopped using and paying for HeadSpin’s services. Lachwani maintained and controlled an ARR spreadsheet that contained this false information and which he shared with potential investors. In 2018, in connection with a round of fundraising, Lachwani sent a slide deck to investors that stated HeadSpin’s ARR was more than $33 million as of the second quarter of 2018, though Lachwani knew the company’s ARR was far less. In 2019, during another round of fundraising, Lachwani again provided information to investors that overstated ARR, this time stating that HeadSpin’s ARR was $54 million when, in fact, it was far less.
Similarly, with respect to revenues, Lachwani sent invoices to HeadSpin’s accountant that Lachwani knew were altered to show amounts not actually invoiced to clients. HeadSpin investors received financial statements that were impacted by the altered invoices.
On August 4, 2022, a federal grand jury handed down a superseding indictment that charged Lachwani with 11 counts of wire fraud in violation of 18 U.S.C. § 1343, one count of money laundering in violation of 18 U.S.C. § 1957, and four counts of securities fraud in violation of 15 U.S.C. § 78j(b) and 78ff and 17 C.F.R. § 240.10b-5. Pursuant to the plea agreement, Lachwani pleaded guilty to two counts of wire fraud and one count of securities fraud. If Lachwani complies with the plea agreement, the remaining counts will be dismissed at sentencing.
Lachwani is currently released on bond.
U.S. District Judge Breyer scheduled Lachwani’s sentencing hearing for September 27, 2023, at 10:00 a.m. The maximum statutory penalty for each count of wire fraud is 20 years in prison and a fine of $250,000. The maximum statutory penalty for securities fraud is 20 years in prison and a fine of $5 million, plus restitution if appropriate. In addition, as part of the sentence Lachwani may be ordered to pay additional fines and to serve an additional term of supervised release after any prison sentence. 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.
The case is being prosecuted by the Corporate and Securities Fraud Section of the U.S. Attorney’s Office for the Northern District of California. Assistant U.S. Attorneys Lloyd Farnham, Noah Stern, and Ross Weingarten are prosecuting the case with the assistance of Elizabeth Kim and Pat Mahoney. The prosecution is the result of an investigation by the FBI. The U.S. Attorney’s Office and the FBI thank the San Francisco Regional Office of the Securities and Exchange Commission (SEC). An SEC civil enforcement action is currently pending against Lachwani in the Northern District of California.
Shiprock Woman Charged with Involuntary Manslaughter and AssaultRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Courtney Frank was arraigned on an indictment charging her with involuntary manslaughter and assault resulting in serious bodily injury. Frank, 19, of Shiprock, and an enrolled member of Navajo Nation, will remain on conditions of release pending trial, which has not been scheduled.
According to the indictment, on Sept. 28, 2022, Frank operated a motor vehicle without due caution and circumspection and with a wanton and reckless disregard for human life when she knew and should have known that her conduct imperiled the lives of others. Frank, who was driving drunk, crashed her car head-on into a car driven by a mother and son, killing the mother and injuring the son.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Frank faces up to 10 years in prison.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Nation Police Department and the New Mexico State Police. Assistant United States Attorney Zachary C. Jones is prosecuting the case.
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Savage Life Gang Members Sentenced to Racketeering ChargesRead the Press Release
DAVENPORT, IA – Two Davenport men were sentenced on Tuesday, April 25, 2023, in relation to a racketeering prosecution. Austin Zachary Ruiz, 28, was sentenced to 202 months in federal prison for assault with a dangerous weapon in aid of racketeering and use and carry a firearm during and in relation to a crime of violence. Olajuwan Hakeem Culbreath, 27, was sentenced to 152 months in federal prison for aiding and abetting the same charges.
In 2016 and 2017, as members of Savage Life Boys (SLB), a Davenport-based street gang, Ruiz and Culbreath were involved in multiple shootings. In December 2016, Ruiz and other SLB members robbed and physically assaulted another male, including pistol-whipping him, at a dice game at an apartment in Davenport. The male escaped from the apartment, but Ruiz chased him, firing numerous rounds at the vehicle in which he fled. The male sustained wounds from the assault and the driver of the vehicle sustained a gunshot wound.
In January 2017, Ruiz, Culbreath, and co-defendant Dimetri Smith were at the NorthPark Mall when they saw a rival gang member. Culbreath, Ruiz, and Smith went to their car, where they had firearms. Culbreath drove to the mall entrance where they expected the rival gang member to exit. When they saw the rival gang member, Ruiz and Smith chased him through the mall parking lot, shooting at him.
In February 2017, Culbreath and co-defendants Smith, Darion Gardner, Najawaun Quinn, and other SLB members started an altercation at a concert at the Hotel Davenport due to perceived disrespect for their gang. During the altercation, Gardner shot and killed one male and injured another. To create a diversion and escape from the hotel, Culbreath fired one round, which did not strike anyone.
In April 2017, Ruiz and Smith were at Centennial Park in Davenport when they saw a male who recently robbed another SLB member’s dice game. Ruiz, armed with a firearm, got out of their vehicle to confront the male. The men struggled over the firearm, which discharged, striking the male in the foot. Smith then joined the altercation, choking the male to unconsciousness to assist them in their flight.
Ruiz and Culbreath committed these acts with the intent to maintain or increase position in the gang.
Following their prison terms, both Ruiz and Culbreath must each serve five years of supervised release. There is no parole in the federal system.
Co-defendants Quinn and Smith are scheduled to be sentenced on August 8, 2023, after a federal jury convicted them of racketeering-related charges following a 7-day trial in February 2023.
In December 2022, Gardner was sentenced to 450 months in prison.
“The hard work and dedication of our officers, investigators, and federal prosecutors delivered justice for those impacted by these violent crimes,” said Davenport Police Assistant Chief Major Jamie Brown. “These cases demonstrate the collaboration and commitment to keeping our community safe.”
United States Attorney Richard D. Westphal the Southern District of Iowa made the announcement. The Davenport Police Department investigated the case.
Savage Life Boys Gang Member Sentenced to Federal Prison for Firearms ChargeRead the Press Release
DAVENPORT, IA – A Davenport man was sentenced on Monday, April 24, 2023, to 60 months in federal prison for being a felon in possession of firearms.
In December 2021, law enforcement identified Milton Lee Howard, Jr., 21, after conducting surveillance at a residence in Davenport. Howard had an active arrest warrant for escape. Howard, a Savage Life Boys gang member, and four additional Savage Life Boys members left that residence in a vehicle, which law enforcement followed to a gas station. Law enforcement blocked the vehicle in, detained the occupants, searched the vehicle, and arrested Howard. Four firearms, an extended magazine, marijuana, and four cell phones were located inside the vehicle. A forensic examination was performed on the seized phones, as well as on the vehicle occupants’ social media accounts. The examination revealed photographs and videos of Howard and other gang members displaying firearms, including two firearms seized from the vehicle. At the time of his arrest, Howard knew he was prohibited from possessing firearms due to his status as a felon.
Following his prison term, Howard must also serve a three-year term of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Davenport Police Department investigated the case.
Rio Rancho Man Charged with Possession of Destructive DevicesRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Francisco B. Burrola, Special Agent in Charge of Homeland Security Investigations El Paso, announced today that Peter Ryan Lynch was charged with receipt or possession of a destructive device. Lynch, 46, of Rio Rancho, appeared in federal court today for a detention hearing and will remain on conditions of release pending trial, which has not been scheduled.
According to a criminal complaint, on April 20, 2023, agents from Homeland Security Investigations (HSI) executed a warrant authorizing the search of the residence of Lynch for receiving firearms silencers mailed from China. While clearing the residence, HSI agents located four “pipe bombs,” materials for building pipe bombs, a shotgun, corresponding ammunition, a ballistics vest and several inert grenades.
Inert grenades are often sold as collectors’ items with a hole drilled into the end and the internal components removed. At least one of the grenades recovered at the residence appeared ready to load with a propellant. At the time the warrant was executed, agents determined that one of the pipe bombs was functional and capable of detonation. The other three pipe bombs consisted of two smaller PVC pipes with end caps, and one larger metal pipe fitted with end caps and a fuse.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Lynch faces up to 10 years in prison.
Homeland Security Investigations investigated this case with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives and New Mexico State Police. Assistant United States Attorney Jon K. Stanford is prosecuting the case.
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Rio Rancho Man Charged with Possession of Destructive DevicesRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Francisco B. Burrola, Special Agent in Charge of Homeland Security Investigations El Paso, announced today that Peter Ryan Lynch was charged with receipt or possession of a destructive device. Lynch, 46, of Rio Rancho, appeared in federal court for a detention hearing and will remain on conditions of release pending trial, which has not been scheduled.
According to a criminal complaint, on April 20, 2023, agents from Homeland Security Investigations (HSI) executed a warrant authorizing the search of the residence of Lynch for receiving firearms silencers mailed from China. While clearing the residence, HSI agents located four “pipe bombs,” materials for building pipe bombs, a shotgun, corresponding ammunition, a ballistics vest and several inert grenades.
Inert grenades are often sold as collectors’ items with a hole drilled into the end and the internal components removed. At least one of the grenades recovered at the residence appeared ready to load with a propellant. At the time the warrant was executed, agents determined that one of the pipe bombs was functional and capable of detonation. The other three pipe bombs consisted of two smaller PVC pipes with end caps, and one larger metal pipe fitted with end caps and a fuse.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Lynch faces up to 10 years in prison.
Homeland Security Investigations investigated this case with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives and New Mexico State Police. Assistant United States Attorney Jon K. Stanford is prosecuting the case.
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Rensselaer County Officials Indicted for Civil Rights ConspiracyRead the Press Release
ALBANY, NEW YORK – Richard W. Crist, age 55, of Nassau, New York; James R. Gordon, age 42, of North Greenbush, New York; and Leslie A. Wallace, age 35, of Troy, New York, were arrested and arraigned today on an indictment charging them with conspiring to violate the rights of Rensselaer County voters in connection with elections held in 2021.
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.
Crist is the Director of Operations for Rensselaer County, Gordon is the Director of the Bureau for Central Services of Rensselaer County, and Wallace works for the Rensselaer County Executive’s Office.
The indictment (copy attached) alleges that during local elections held in 2021, Crist, Gordon and Wallace conspired to use their official positions, and actual and apparent authority over Rensselaer County employees, to obtain absentee ballots in voters’ names through fraud and intimidation; these voters did not intend to request absentee ballots, nor did they seek voting assistance from Crist, Gordon or Wallace.
Crist, Gordon and Wallace then conspired to cast false and illegal votes in these voters’ names in primary and general elections held in Rensselaer County in 2021. Their conduct violated the constitutional rights of Rensselaer County voters to have their votes counted equally as compared to votes cast by other voters, and made it more likely that the defendants’ preferred candidates would win the elections.
Gordon is also charged with one count of witness tampering, and Wallace is also charged with one count of making false statements.
The charges in the indictment are merely accusations. Each defendant is presumed innocent unless and until proven guilty.
Crist, Gordon and Wallace were each arraigned today before Chief United States Magistrate Judge Andrew T. Baxter, and ordered released with conditions pending a trial before United States District Judge Mae A. D’Agostino.
If convicted of conspiracy to violate constitutional rights, each defendant faces up to 10 years in prison. If convicted of witness tampering, Gordon faces up to 20 years in prison. If convicted of making false statements, Wallace faces up to 5 years in prison. A defendant’s sentence is imposed by a judge based on the statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The FBI is investigating this case, and Assistant U.S. Attorneys Michael Barnett and Steven D. Clymer are prosecuting this case.
Real Estate Investor Convicted of Defrauding Government Rental Assistance and Medicaid ProgramsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today’s conviction in federal court of PAUL FISHBEIN of multiple counts of fraud and aggravated identity theft. FISHBEIN stole hundreds of thousands of dollars from rental assistance programs administered by New York City’s Human Resources Administration (“HRA”) and New York City’s Housing Preservation & Development (“HPD,” and with HRA, the “Agencies”) by renting out properties throughout the City that he falsely claimed to own and by collecting made-up broker fees. FISHBEIN was also convicted of Medicaid fraud. The jury convicted FISHBEIN today following a nearly two-week trial before U.S. District Judge Paul A. Crotty.
U.S. Attorney Damian Williams said: “New York City assists millions of low-income and vulnerable New Yorkers through different types of programs, including rental assistance programs and Medicaid. These programs were designed to help New Yorkers in need. But, as a jury has now found, for years, Fishbein abused those programs to enrich himself. To do that, he told lie after lie after lie. He stole money, including federal funds, from the City’s rental assistance programs by lying about being the landlord of homes he didn’t actually own. He stole the identity of a real estate broker to get the City to pay him made-up broker fees. And he stole Medicaid benefits by lying to the City about how much money he made. Today, a unanimous jury has held Fishbein accountable for his yearslong fraudulent schemes.”
According to the Indictment, documents previously filed in the case, and the evidence introduced at trial:
From in or about 2013 through May 4, 2021, FISHBEIN rented out properties in New York City to low-income New Yorkers through the Agencies’ rental assistance programs, collecting rent payments from the Agencies as the purported owner of the properties. In fact, FISHBEIN was never the owner of those properties and lied to the Agencies to collect the rent payments. In addition, FISHBEIN lied to HRA that he used the services of a real estate broker to rent out certain properties in order to collect broker fee payments from HRA, also through its rental assistance program. FISHBEIN used an actual real estate broker’s license and name without her authority to collect these made-up broker fees from the City. In-need New Yorkers were placed in these properties, which FISHBEIN, because he was not actually the owner of the properties, failed to maintain. In one instance, the ceiling completely collapsed while a tenant and her family were living in a property FISHBEIN claimed to own. Through these two schemes, FISHBEIN fraudulently obtained hundreds of thousands of dollars from HRA and HPD, including more than $90,000 in federal funds.
FISHBEIN was also convicted of healthcare fraud because, from 2014 through May 4, 2021, he lied to New York City’s Medicaid program about how much money he made in order to collect Medicaid benefits. Medicaid is meant for low-income New Yorkers. FISHBEIN, each year, told the City that he made only $150 a week, or $7,200 a year, when in reality, he was raking in hundreds of thousands of dollars each year from his rental assistance and broker fee schemes described above. By lying about his income and assets, the defendant received at least approximately $49,524.80 in Medicaid benefits to which he was not entitled.
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FISHBEIN, 49, of Queens, New York, was convicted of one count of wire fraud, one count of mail fraud, one count of theft of government funds, one count of aggravated identity theft, and one count of healthcare fraud. The wire fraud and mail fraud charges each carry a maximum sentence of 20 years in prison; the theft of government funds and healthcare fraud charges each carry a maximum sentence of 10 years in prison; and the aggravated identity theft charge carries a mandatory two-year sentence, which must run consecutive to any other prison term imposed.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge. FISHBEIN is scheduled to be sentenced by Judge Crotty on July 31, 2023.
Mr. Williams praised the outstanding investigative work of the New York City Department of Investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Sarah L. Kushner, Christy Slavik, and Jared Lenow are in charge of the prosecution and were assisted at trial by Paralegal Specialist Joseph Magliocco.
Readout of Attorney General Merrick B. Garland’s Visit to the United States Attorney’s Office for the District of MaineRead the Press Release
PORTLAND, Maine: U.S. Attorney Darcie N. McElwee today hosted Attorney General Merrick B. Garland at the U.S. Attorney’s Office in Portland. The Attorney General met with the staff of U.S. Attorney’s Office as well as representatives from federal, state and local law enforcement.
After separate sessions with federal agents and state/local law enforcement officials from throughout Maine to hear their needs and concerns, the Attorney General met with the full staff of the U.S. Attorney’s Office. He praised the cooperation between the Office, federal, state and local law enforcement, saying that the way to solve problems is through communication and integration of law enforcement.
The Attorney General also discussed the Department’s priorities and thanked the staff for their commitment to public service, reiterating that protecting communities and upholding the rule of law is at the core of what U.S. Attorney’s offices do.
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Readout of Assistant Attorney General Kristen Clarke’s Trip to Little Rock and Pine Bluff, ArkansasRead the Press Release
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division traveled to Little Rock and Pine Bluff, Arkansas, on April 24 and 25 to continue the Civil Rights Division’s tour to engage with stakeholders in underserved communities and reaffirm the department’s commitment to protecting the civil rights of all Americans. U.S. Attorney Jonathan Ross for the Eastern District of Arkansas joined her for the meetings and events on both days.
On Monday, Assistant Attorney General Clarke visited the historic Little Rock Central High School, where she met with Principal Nancy Rousseau and students to discuss careers in civil rights and the Civil Rights Division’s efforts to enforce federal civil rights laws. This school year marks 65 years since the desegregation of the school. After her visit at the high school, she took a tour of the Little Rock Central High School National Historic Site.
In the afternoon, Assistant Attorney General Clarke participated in a fireside chat with President Roderick L. Smothers Sr., school leadership and students at Philander Smith College, an HBCU founded in 1877. She discussed her career as a civil rights attorney and the department’s efforts to address economic justice issues, including housing discrimination. She also encouraged the students to continue to use their voices to advance racial justice and racial equity.
After her visit to Philander, Assistant Attorney General Clarke met with the U.S. Attorney’s Office for the Eastern District of Arkansas. She thanked the office’s leadership and staff for their service and commitment to protecting civil rights.
She ended the day at the Willie Hinton Community Center for a community conversation with Little Rock Mayor Frank Scott Jr., Police Chief Heath Helton and local stakeholders to hear about local civil rights and racial equity concerns, including modern-day redlining, fair housing and issues impacting small businesses.
On Tuesday, Assistant Attorney General Clarke traveled to Pine Bluff to meet with Mayor Shirley Washington and Police Chief Denise Richardson. She reiterated the Justice Department’s commitment to work with local leaders to address civil rights and racial equity issues.
In the afternoon, she met with University of Arkansas at Pine Bluff Chancellor Laurence B. Alexander and participated in a fireside chat with students as the school marked its 150th anniversary. She encouraged the students to pursue careers in government and public service, and discussed the division’s broad civil rights enforcement efforts, including work to address law enforcement misconduct, and ongoing work to protect voting rights in Arkansas.
Assistant Attorney General Clarke ended her trip by joining Mayor Washington at a community listening session with dozens of local leaders, faith leaders and long-time residents, where she discussed the department’s broad efforts to combat hate crimes, ensure educational opportunity and address modern-day redlining.
In the upcoming weeks, Assistant Attorney General Clarke will travel to Mississippi and South Carolina to continue meeting with stakeholders in underserved communities.
Assistant Attorney General Clarke with U.S. Attorney Ross speaking to a teacher at Little Rock Central High School. Assistant Attorney General Clarke touring the Little Rock Central High School National Historic Site. Assistant Attorney General Clarke speaking at fireside chat at Philander Smith College. Assistant Attorney General Clarke speaking at fireside chat at University of Arkansas Pine Bluff. Assistant Attorney General Clarke, U.S. Jonathan Ross and Mayor Shirley Washington at community meeting in Pine Bluff. Assistant Attorney General Clarke, U.S. Jonathan Ross and staff from the U.S. Attorney’s Office for the Eastern District of Arkansas.Rapid City Man Sentenced to 10 Years in Prison for Receipt and Possession of Child PornographyRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Jeffrey L. Viken has sentenced a Rapid City, South Dakota, man convicted of Receipt of Child Pornography and Possession of Child Pornography. The sentencing took place on April 24, 2023.
Matthew Shawn Buchko, 40, was sentenced to two 10-year terms in federal prison, to run concurrently, followed by five years of supervised release, to run concurrently. Buchko was also ordered to pay a $200 special assessment to the Federal Crime Victims Fund and will be required to register as a sex offender under the Sex Offender Registration and Notification Act.
Buchko was indicted by a federal grand jury in February of 2021. He was found guilty at trial on January 20, 2023.
Buchko was federally indicted following a Cybertip from the National Center of Missing and Exploited Children in relation to an upload of child pornography using the application Discord. The Internet Crimes Against Children Taskforce executed a search warrant on Buchko’s home and located multiple devices. A forensic examination of those devices found hundreds of images and videos of child pornography, as well as images and videos of child erotica and computer-generated child pornography.
This case was investigated by the Internet Crimes Against Children Taskforce, South Dakota Division of Criminal Investigation, Homeland Security Investigations, Pennington County Sheriff’s Office, and the Rapid City Police Department. Assistant U.S. Attorneys Sarah B. Collins and Heather Sazama prosecuted the case.
Buchko was immediately remanded to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for Possession of a Firearm by a Prohibited PersonRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Jeffrey L. Viken has sentenced a Rapid City, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person. The sentencing took place on April 24, 2023.
Kyle Mackay, 33, was sentenced to four years in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Kyle Mackay was indicted for Possession of a Firearm by a Prohibited Person by a federal grand jury in May of 2021. He pleaded guilty on January 20, 2023.
On January 28, 2021, law enforcement had contact with Mackay after he was reported as an unwanted subject at the gas station on East Highway 44 in Rapid City. Once he was identified, law enforcement discovered Mackay had an active arrest warrant. When he was searched, Mackay had a firearm on his person, as well as approximately a half ounce of methamphetamine. A check of the firearm showed it had been reported as stolen. Because of a previous felony conviction, Mackay is prohibited from being in possession of firearms.
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 Bureau of Alcohol, Tobacco, Firearms and Explosives, Rapid City Police Department, Dakota Territory Fugitive Task Force, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Mackay was immediately remanded to the custody of the U.S. Marshals Service.
RGV carjacker sent to prisonRead the Press Release
McALLEN, Texas – A 35-year-old McAllen resident has been ordered to federal prison following his conviction for robbery of a motor vehicle with intent to cause serious harm or death, announced U.S. Attorney Alamdar S. Hamdani.
Fidel Garza Jr. pleaded guilty Feb. 15.
Today, U.S. District Judge Micaela Alvarez handed Garza a 85-month term of imprisonment to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence regarding Garza’s criminal history, including prior felony convictions for discharging a firearm in 2016 and being a felon in possession of a firearm in 2021.
On Nov. 25, 2021, Garza was on the 1200 block of 28th street riding in the passenger seat of a truck which pulled in front of an SUV and stopped. A 67-year-old man was driving that vehicle. Garza exited the passenger side of the truck and approached the SUV. He then pointed a handgun at the driver and demanded he and his three minor passengers get out of the vehicle. Fearing for their lives, they complied. Garza then entered the SUV and fled the scene.
Law enforcement tracked him to a rural location in Edinburg. They arrested him in December 2021, at which time he admitted his role in the robbery.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The McAllen Police Department and Texas Department of Criminal Justice conducted the investigation with the assistance of the FBI and the Edinburg Police Department as part of the Rio Grande Valley Safe Streets Task Force. Assistant U.S. Attorneys Anthony J. Evans and James Sturgis prosecuted the case.
RGV carjacker sent to prisonRead the Press Release
McALLEN, Texas – A 35-year-old McAllen resident has been ordered to federal prison following his conviction for robbery of a motor vehicle with intent to cause serious harm or death, announced U.S. Attorney Alamdar S. Hamdani.
Fidel Garza Jr. pleaded guilty Feb. 15.
Today, U.S. District Judge Micaela Alvarez handed Garza a 85-month term of imprisonment to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence regarding Garza’s criminal history, including prior felony convictions for discharging a firearm in 2016 and being a felon in possession of a firearm in 2021.
On Nov. 25, 2021, Garza was on the 1200 block of 28th street riding in the passenger seat of a truck which pulled in front of an SUV and stopped. A 67-year-old man was driving that vehicle. Garza exited the passenger side of the truck and approached the SUV. He then pointed a handgun at the driver and demanded he and his three minor passengers get out of the vehicle. Fearing for their lives, they complied. Garza then entered the SUV and fled the scene.
Law enforcement tracked him to a rural location in Edinburg. They arrested him in December 2021, at which time he admitted his role in the robbery.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The McAllen Police Department and Texas Department of Criminal Justice conducted the investigation with the assistance of the FBI and the Edinburg Police Department as part of the Rio Grande Valley Safe Streets Task Force. Assistant U.S. Attorneys Anthony J. Evans and James Sturgis prosecuted the case.
Pine Ridge Man Sentenced for Conspiracy to Distribute a Controlled SubstanceRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Pine Ridge, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance. The sentencing took place on April 24, 2023.
Isaac Mathews, 41, was sentenced to five years in federal prison, followed by four years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Isaac Mathews was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury in October of 2022. He pleaded guilty on January 25, 2023.
On May 10, 2022, law enforcement had contact with Mathews and recovered a firearm, along with a distributable amount of methamphetamine. Between 50 grams and 200 grams of methamphetamine were distributed during the course of the conspiracy.
This case was investigated by the Badlands Safe Trails Drug Enforcement Task Force, which is comprised of agents from the FBI, South Dakota Division of Criminal Investigation, Bureau of Indian Affairs Division of Drug Enforcement, Martin Police Department, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Mathews was immediately remanded to the custody of the U.S. Marshals Service.
Peoria Man Sentenced to 200 Months in Prison for Trafficking in MethamphetamineRead the Press Release
PEORIA, Ill. – A Peoria, Illinois, man, Demetrice L. Sharp, 39, of the 1500 block of West Candletree Drive, was sentenced on April 26, 2023, to 200 months in prison for each of four counts related to trafficking methamphetamine: one count of conspiracy to distribute 50 grams or more of methamphetamine, two counts of distribution of 50 grams or more of methamphetamine, and one count of possession with intent to distribute 450 grams or more of methamphetamine. The sentences will be served concurrently and will be followed by an eight-year term of supervised release.
At the sentencing hearing before U.S. District Judge James E. Shadid, the United States presented evidence that Sharp and Lashonda Patterson conspired to distribute methamphetamine during the spring of 2022. As a part of the conspiracy, they sold methamphetamine on two occasions in April 2022. For the first sale, Sharp provided 55.85 grams of methamphetamine. For the second, Patterson provided 112.7 grams of methamphetamine. Both deliveries were 100% pure methamphetamine.
In June 2022, Federal Bureau of Investigation agents obtained a search warrant for the apartment that Sharp and Patterson shared. When agents searched the apartment, they found a bag containing 298.6 grams of methamphetamine in the master bathroom. The substance was 97% pure methamphetamine. The distribution from the sales and search warrant totaled 467.15 grams of methamphetamine.
A complaint was issued that same month, and Sharp and Patterson were arrested on federal warrants. They were indicted later in June, and Sharp pleaded guilty in October 2022. He has remained in the custody of the U.S. Marshals Service since his arrest. Patterson also pleaded guilty to conspiracy to distribute and to possess with intent to distribute 50 grams or more of methamphetamine, and she will be sentenced at a later date.
The statutory penalties for each of the four counts are 10 years to life imprisonment, followed by five-year to life term of supervised release.
The Federal Bureau of Investigation, Springfield Field Office, and Western Illinois Transnational Organized Crime Task Force investigated the case, with assistance from the Peoria Police Department, Monmouth Police Department, Knox County Sheriff’s Office, Galesburg Police Department, East Moline Police Department, Illinois State Police, and U.S. Department of Justice Drug Enforcement Administration. Assistant U.S. Attorney Keith Hollingshead-Cook represented the United States in the prosecution.
Omaha Woman Sentenced to 168 Months for Conspiring to Distribute Methamphetamine within 1,000 Feet of a City ParkRead the Press Release
United States Attorney Steven Russell announced that Gianetta Lynn Middleton, 51, of Omaha, Nebraska, was sentenced in federal court in Omaha on April 25, 2023, for Conspiracy to Distribute and Possess with Intent to Distribute Methamphetamine within 1,000 feet of a Protected Location. United States District Brian C. Buescher sentenced Middleton to 168 months’ imprisonment. She was also ordered to serve 10 years of supervised release after her release from prison. There is no parole in the federal system.
Between September 1, 2021, and November 23, 2021, Middleton and others conspired to distribute 168 grams of methamphetamine from her apartment in Fremont, Nebraska. During this time period, Middleton sold methamphetamine multiple times from her apartment, which is located across the street from a city park.
This case was investigated by the Fremont Police Department and the Drug Enforcement Administration.
Omaha Man Sentenced to 293 Months for Role in Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Steven Russell announced that Gilberto Aguilar-Beltran, 46, of Omaha, Nebraska, was sentenced today for conspiring to distribute and possess with intent to distribute methamphetamine, and of possession with intent to distribute methamphetamine. A federal jury found Aguilar-Beltran guilty of both counts of the Superseding Indictment on January 27, 2023. United States District Judge Brian C. Buescher sentenced Aguilar-Beltran to imprisonment for a term of 293 months as to each count, to be served concurrently. There is no parole in the federal system. After his release from prison, he will begin a 5-year term of supervised release. Aguilar-Beltran may later face removal (deportation) from the United States to Mexico by immigration authorities.
On May 12, 2021, Omaha Police observed Aguilar-Beltran, driving a Jeep Grand Cherokee, meet up with two people driving a black SUV at a Taco Bell on South 42nd Street. A male from the black SUV got into Aguilar-Beltran’s Jeep and they briefly drove around before returning to the Taco Bell. The male returned to the black SUV and departed at the same time as the Jeep. Omaha Police stopped the black SUV, and after completing a canine sniff of the exterior, they searched it. Officers recovered approximately one pound of meth and arrested the driver and passenger.
Following this apparent drug transaction, OPD detectives gathered additional evidence of Aguilar-Beltran’s involvement in methamphetamine distribution. Ultimately, on July 15, 2021, officers executed a search warrant at Aguilar-Beltran’s home, locating distribution quantities of methamphetamine, cash, a digital scale, and packaging materials consistent with drug trafficking.
Investigators further determined through deconfliction and cooperation with federal investigative agencies that Aguilar-Beltran’s activities in furtherance of drug trafficking extended beyond methamphetamine distribution. A cooperating witness testified at trial that Aguilar-Beltran collected thousands of dollars in proceeds from methamphetamine sales for the organization. Additional witnesses testified that Aguilar-Beltran allowed the detached garage at his residence to be used over a period of several years for the regular off-loading of dozens of pounds of methamphetamine from a “trap” car that had been driven repeatedly to Omaha from the southwest border. The methamphetamine from the trap car was intended for distribution in Nebraska.
This case was investigated by the Omaha Police Department, the Drug Enforcement Administration, Homeland Security Investigations, and the Federal Bureau of Investigation.
Omaha Man Sentenced for Sex Trafficking of a Minor by ForceRead the Press Release
United States Attorney Steven Russell announced that James Ferman Chatman, 43, of Omaha, Nebraska, was sentenced today in federal court in Omaha for sex trafficking of a minor by force. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Chatman to 324 months’ imprisonment. There is no parole in the federal prison system. After his release from prison, Chatman will serve 10 years of supervised release. Chatman was also ordered to pay $1,300 in restitution. Chatman will also be required to register as a sex offender.
Law enforcement began investigating in September 2021 after receiving information from FBI Innocence Lost that a missing 17-year-old female was actively being advertised online for commercial sex in Omaha. Investigators located and contacted the minor female who advised that she was being forced to engage in commercial sex sales by a person known to her as “James Cooper.” The minor stated that “James” kept all of the money received from sex buyers. The minor reported that she had been sexually assaulted by “James” and that “James” had been providing her with cocaine. Evidence uncovered by law enforcement showed James Ferman Chatman had created online commercial sex ads depicting the minor female in addition to ads depicting other females. After the minor was recovered, Chatman continued to post commercial sex ads in various states across the county. In November 2021, investigators learned that Chatman had returned to a hotel in Omaha. Investigators arrested Chatman at the hotel. Also staying in the hotel room was an adult female who advised that she was being sold for sex by Chatman and that Chatman used violence and threats of violence to keep her engaging in commercial sex sales.
In 2019, Chatman was convicted of Unlawful Sexual Acts with a 16–17 Year Old in Leon County, Florida. Chatman had not registered as a sex offender in Nebraska after leaving Florida.
"The FBI remains resolute in our commitment to protecting the most vulnerable members of our community and bringing child predators to justice. We value and recognize the critical work of our law enforcement partners. As with many crimes we investigate, we cannot do it without collaboration from the law enforcement community and the public," said Special Agent in Charge Eugene Kowel of the Omaha Field 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 Attorney’s 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.
Ohio Man Sentenced for Stealing over 712 Bitcoin Subjected to ForfeitureRead the Press Release
WASHINGTON – An Ohio man was sentenced today to 51 months in prison for stealing over 712 bitcoin that were the proceeds of the darknet bitcoin mixer Helix and subject to forfeiture in a then-pending criminal case.
The sentence was announced by U.S. Attorney Matthew M. Graves, Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, FBI Special Agent in Charge Wayne A. Jacobs of the Washington Field Office’s Criminal and Cyber Division, and IRS Special Agent in Charge Darrell J. Waldon of the IRS Criminal Investigation (IRS-CI).
In addition to the prison term, U.S. District Court Judge Beryl A. Howell ordered 36 months of supervised release and ordered a forfeiture money judgment of $4,881,532.40, and forfeiture of specific properties including cryptocurrencies that are now valued in excess of $20 million due to the increase in market prices.
According to court documents, Gary James Harmon, 31, of Cleveland, Ohio, perpetrated a scheme to steal cryptocurrency that was the subject of pending criminal forfeiture proceedings in the case of Larry Dean Harmon, Gary Harmon’s brother. In February 2020, Larry Harmon was arrested for his operation of Helix, a darknet-based cryptocurrency money laundering service, known as a “mixer” or “tumbler.” Helix laundered over 350,000 bitcoin – valued at over $300 million at the time of the transactions – on behalf of customers, with the largest volume coming from Darknet markets. Law enforcement seized various assets, including a cryptocurrency storage device containing Larry Harmon’s illegal proceeds generated through the operation of Helix, which were subject to forfeiture in the criminal case. However, law enforcement was initially unable to recover bitcoin stored on the device due to the device’s additional security features.
Knowing that the government was seeking to recover the bitcoin stored on the seized device for forfeiture in Larry Harmon’s criminal case, Gary Harmon used his brother’s credentials to recreate the bitcoin wallets stored on the device and covertly transfer more than 712 bitcoin, valued at approximately $4.8 million at the time, to his own wallets – stealing those funds and obstructing the pending criminal forfeiture proceeding. Gary Harmon further laundered the proceeds through two online bitcoin mixer services before using the laundered bitcoins to finance large purchases and other expenditures.
Gary Harmon agreed to the forfeiture of cryptocurrencies and other properties derived from the fraudulently taken proceeds, including more than 647.41 Bitcoin (BTC), 2.14 Ethereum (ETH), and 17,404,400.64 Dogecoin (DOGE). Due to the increase in market prices, the total value of these forfeitable properties exceeds $12 million.
In August 2021, Larry Harmon pleaded guilty to money laundering conspiracy in connection with his case.
The FBI and the IRS-CI District of Columbia Cyber Crime Unit investigated the case.
Assistant U.S. Attorney Christopher B. Brown for the District of Columbia and Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS), both now also members of the National Cryptocurrency Enforcement Team, prosecuted the case, with assistance from Paralegal Specialists Michon Tart, Angela De Falco, and Brian Rickers, and former Paralegal Specialist Chad Byron. Additional assistance was provided by Assistant U.S. Attorneys Segev Phillips and Daniel Riedl for the Northern District of Ohio and CCIPS Trial Attorney S. Riane Harper.
Nine Individuals Charged and Arrested on Various Firearms, Drug, and Fraud ChargesRead the Press Release
CHICAGO — Nine individuals have been charged in Chicago, including eight alleged members of the Black P Stone Nation (“BPSN”) street gang, eight Chicagoans, and one suburban resident. The nine defendants have been charged in federal court on an array of charges including possession of a weapon by a convicted felon, firearms trafficking, and trafficking, distribution, and conspiracy to distribute drugs, including fentanyl, heroin, fentanyl-laced heroin, cocaine, and crack cocaine.
- Steven Nash, also known as “Redd”, 56, is charged with firearms trafficking (counts 1 and 4), possession with intent to distribute a controlled substance, namely 40 grams or more of a mixture and substance containing a detectable amount of fentanyl (count 2), and possession with intent to distribute a controlled substance, namely 100 grams or more of a mixture and substance containing a detectable amount of heroin (count 3).
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Marcus Taylor, 38, of Hinsdale, is charged with distribution of a controlled substance, namely, 500 grams or more of a mixture and substance containing a detectable amount of cocaine.
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Josephus Turner, also known as “Jamo”, 35, is charged with distribution of a controlled substance, namely a mixture and substance containing heroin (count 1), distribution of a controlled substance, namely a mixture and substance containing cocaine base (counts 2 and 4), firearms trafficking (count 3), and conspiracy to distribute a controlled substance, namely 40 grams or more of mixtures and substances containing fentanyl (count 5).
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Calvin Bunting, also known as “White Boy”, 39, is charged with conspiracy to distribute a controlled substance, namely 40 grams or more of mixtures and substances containing fentanyl (count 5).
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Antonio Washington, also known as “Itch” and “Britney”, 45, is charged with distribution of crack cocaine.
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Fernando Ramirez, also known as “Enterprise”, 67, is charged with distribution of a controlled substance, namely, 500 grams or more of a mixture and substance containing a detectable amount of cocaine.
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Alix Aurel, 47, is charged with distribution of a controlled substance, namely, a mixture and substance containing a detectable amount of cocaine.
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Andre Howard Jr., also known as “Baby Stone”, 35, is charged with possession of a weapon as a convicted felon.
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Joshua Broughton, ”Twiggz”, 33, is charged with possession of a weapon as a convicted felon.
Defendants Turner, Bunting, Aurel, Howard, Nash, and Broughton are alleged to be members of the Rack City faction of BPSN, which controls territory in the vicinity of W. 93rd St. and S. Halsted St. on the South Side of Chicago. Washington and Taylor are alleged associates of the Rack City faction belonging to another faction of the PBSN. All men have been charged via complaint with the exception of Howard, who was been charged via indictment. During the course of the multi-year investigation, law enforcement seized approximately 62 firearms, approximately 6 kilograms of cocaine, approximately 500 grams of heroin/fentanyl, and approximately 250 grams of crack cocaine.
All nine defendants are in law enforcement custody. Arraignments will be scheduled in U.S. District Court in Chicago.
The charges are announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the Federal Bureau of Investigation; and Eric Carter, Interim Superintendent of the Chicago Police Department. Substantial assistance was provided by the Illinois State Police, the Cook County Sheriff’s Office Intelligence Unit, the Internal Revenue Service, and Rosemont Police Department. The government is represented by Assistant U.S. Attorneys Jimmy L. Arce and Patrick Mott.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The maximum terms of imprisonment for the charges range from 5 to 40 years in federal prison. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
New Orleans Woman Sentenced for Theft of More than $86,000 in Social Security FundsRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that DANIELLE COLEMAN, age 39, of New Orleans, Louisiana, was sentenced on April 27, 2023 after previously pleading guilty to Theft of Government Funds, in violation of Title 18, United States Code, Section 641.
According to court documents, COLEMAN’s grandmother was authorized to receive Social Security Administration (“SSA”) Title II – Retirement Survivor Insurance (RSI) benefits up until her death on September 8, 2009. An investigation by special agents with the SSA, Office of Inspector General and United States Department of Treasury, Inspector General for Tax Administration, revealed COLEMAN possessed her late grandmother’s ATM card and began withdrawing money from her account after her death. COLEMAN used her late grandmother’s ATM card to pay for her own personal expenses knowing she was not entitled to those Social Security benefits. COLEMAN failed to notify the SSA of her grandmother’s death and took approximately $86,280.00 in SSI benefits from her account. An additional $1,200.00 of COVID-19 stimulus funds were erroneously deposited into COLEMAN’s grandmother’s account, and COLEMAN also used these funds on personal expenses.
United States District Judge Carl J. Barbier sentenced COLEMAN to five (5) years of probation, restitution, and a mandatory $100 special assessment fee.
U.S. Attorney Evans praised the work of the Social Security Administration, Office of the Inspector General and the United States Department of Treasury, Inspector General for Tax Administration. The prosecution of this case is being handled by Assistant U.S. Attorneys Rachal Cassagne and Spiro Latsis.
New Orleans Man Sentenced for Federal Gun and Drug OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – JAMAL SMITH, age 34, a resident of New Orleans, was sentenced by U.S. District Judge Carl J. Barbier to 131 months incarceration for violations of the Federal Gun Control and Controlled Substances Acts. Judge Barbier ordered that SMITH be placed on supervised release for three (3) years following his release from imprisonment. SMITH was also ordered to pay a mandatory $100 special assessment fee for each count.
SMITH previously pled guilty pursuant to a plea agreement to Counts 1, 3, 5 and 6 of the indictment. Count 1 charged SMITH with possession with intent to distribute a quantity of marijuana, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(D), for which he received 60 months imprisonment. Counts 3 and 6 charged SMITH with being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1), for which he received 71 months imprisonment. The sentences for Counts 1, 5 and 6 are to run concurrently with each other. Count 5 charged SMITH with possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A), for which he received 60 months imprisonment. The sentence for Count 5 must run consecutively to the sentences for Counts 1, 3 and 6. Therefore, SMITH was sentenced to a total of 131 months imprisonment.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney Evans praised the work of New Orleans Police Department and the Federal Bureau of Investigation. The case was prosecuted by Elizabeth Privitera, Unit Chief and Assistant United States Attorneys Inga Petrovich and David Haller, all of the Violent Crime Unit.
New Orleans Man Pleads Guilty to Multiple Federal Firearm and Drug Trafficking ChargesRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that DEVONTE SMITH, age 22, of New Orleans, pled guilty to seven counts of an eight-count indictment, that charged him with multiple federal firearms and drug trafficking violations stemming from a March 30, 2022 shootout, on the corner of Orleans and Rocheblave Street that was captured on NOPD crime cameras, and the subsequent search of a Touro Street residence. Although no one was killed or injured in the shootout, several houses and automobiles sustained damage. The indictment charged SMITH as follows:
Count 1: Charge: Possession, brandishing, and discharging of a firearm in furtherance of a drug trafficking crime in violation of Title 18 USC 924(c)(1)(A); Statutory Sentence: 10 years to life. Any sentence imposed must be served consecutive to any other sentence; a fine of up to$250,000 and not more than 5 years of supervised release.
Count 2: Charge: Possession of a machinegun in furtherance of a drug trafficking crime in violation of Title 18 USC § 924(c)(1)(B)(ii); Statutory Sentence: 30 years to life. Any sentence imposed must be served consecutive to any other sentence; a fine of up to $250,000 and not more than 5 years of supervised release.
Count 3: Charge: Illegal Possession of a machinegun in violation of Title 18 USC § 922(o); Statutory Sentence: 0-10 years; a fine of up to $250,000 and not more than 3 years supervised release.
Count 4: Charge: Possession of a firearm by a felon in violation of Title 18 USC § 922(g); Statutory Sentence: 0-10 years; a fine of up to $250,000 and not more than 3 years supervised release.
Count 5: Charge: Conspiracy to distribute and to possess with the intent to distribute a quantity of a mixture or substance containing a detectible amount of marijuana, cocaine, and fentanyl, in violation of Title 21 USC §§841(a)(1) and 841(b)(1)(C) and (D); Statutory Sentence: cocaine/fentanyl: 0-20 years; not more than $1,000,000.00 in fines and at least 3 years of supervised release; Marijuana: 0-5 years; a fine of up to $250,000 and at least 2 years supervised release.
Count 6: Charge: Possession with the intent to distribute a quantity of mixture or substance containing a detectible amount of marijuana, in violation of Title 21 USC§§841(a)(1) and 841(b)(1)(D); Statutory Sentence: 0-5 years; a fine of $250,000, and at least 2 years supervised release.
Count 7: Charge: Maintaining a drug involved premises, in violation of Title 21 USC § 856; Statutory Sentence: 0-20 years; a fine of $250,000, and at 3 years of supervised release.
Count 8: Charge: Possession with the intent to distribute a quantity of mixture or substance containing a detectible amount of cocaine and fentanyl, in violation of Title 21 USC §§ 841(a)(1) and 841(b)(1)(C); Statutory Sentence: 0-20 years; a fine of $250,000, and at least 3 years of supervised release.
As to each count, SMITH faces payment of a mandatory $100 special assessment fee.
Today, SMITH pled guilty to Counts 1, 3, 4, 5, 6, 7, and 8 of the indictment and the Government agreed to dismiss Count 2.
As part of this guilty plea, the SMITH will be sentenced to not less than 20 years in prison and not more than life. He will face a fine of not more than $1,000,000.00 and be placed on supervised release for not more than five years. He will also have to pay a mandatory $700.00 special assessment fee
This matter is still under investigation by the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (A.T.F.) and the New Orleans Police Department.
The prosecution is being handled by Assistant United States Attorney Maurice E. Landrieu, Jr. of the Narcotics Unit.
Nebraska Man Sentenced for Escape from Federal Reentry CenterRead the Press Release
United States Attorney Steven Russell announced that Aaron Jason Burkholder, 46, of Nebraska, was sentenced today to 18 months for escape from a federal reentry center by Senior United States District Judge John M. Gerrard. Following his release from prison, Burkholder will serve three years on supervised release. There is no parole in the federal system.
In December of 2021, Burkholder was serving a prior federal sentence for possession with intent to distribute 50 grams or more of methamphetamine actual. He was transferred from the Federal Bureau of Prisons to a Residential Reentry Center (RRC) in Kearney, Nebraska, to finish serving the remainder of his sentence and was scheduled for release in November of 2022. However, on June 28, 2022, Burkholder escaped from the custody of the RRC by cutting off his GPS ankle monitor after being ordered to return to the RRC due to rules violations. Attempts by RRC staff to contact Burkholder were unsuccessful and he was placed on escape status. He was arrested on a federal warrant on October 18, 2022. Burkholder’s RRC placement on his previous federal sentence was revoked, and he is scheduled to complete his incarceration with the Bureau of Prisons on that sentence in April of 2024.
This case was investigated by the United States Marshals Service.
Muscatine Woman Sentenced to Federal Prison for Drug ChargesRead the Press Release
DAVENPORT, IA – A Muscatine woman was sentenced on April 26, 2023, to 192 months in prison following her guilty plea to charges of conspiracy to distribute 50 grams of methamphetamine and possession of five grams or more of methamphetamine.
According to court documents, law enforcement received information that Cristina Kaye Briones, 38, and her co-conspirators were obtaining large quantities of pure methamphetamine through the mail directly from California suppliers. Following her prison term, Briones was ordered to serve a five-year term of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the United States Postal Inspection Service and Drug Enforcement Administration.
Montgomery Man Sentenced to 20 Years in Federal Prison Following Gun and Drug ConvictionsRead the Press Release
Montgomery, Alabama – On April 27, 2023, Patrick Maurio Bass, 43, from Montgomery, Alabama, received a sentence of 240 months in prison after pleading guilty to federal gun and drug charges, announced United States Attorney Sandra J. Stewart. The federal judge also ordered that Bass serve four years of supervised release following his prison term. Federal inmates are not eligible for parole.
According to court records and statements made in open court, on August 14, 2020, the Montgomery Police Department (MPD) received information that Bass had a large quantity of illegal drugs in his possession. Later that day, MPD officers observed Bass at a Montgomery gas station, parked in a sport utility vehicle. The officers searched the vehicle. During the search, officers found significant amounts of cocaine and marijuana, along with a handgun. Bass is a convicted felon and was prohibited from possessing a firearm.
On June 6, 2022, a federal grand jury indicted Bass for being a felon in possession of a firearm, possessing a controlled substance with intent to distribute the controlled substance, and possessing a firearm in furtherance of a drug trafficking offense. Bass pleaded guilty to these charges on December 19, 2022.
MPD and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case, with assistance from the Montgomery County Sheriff’s Office. Assistant United States Attorney Joshua J. Wendell prosecuted the case.
Mission Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Mission, South Dakota, man convicted of Failure to Register as a Sex Offender. The sentencing took place on April 21, 2023.
Frank White Thunder, age 35, was sentenced to 20 months in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
White Thunder was indicted by a federal grand jury in September of 2022. He pleaded guilty on January 11, 2023.
White Thunder was convicted of Abusive Sexual Contact in 2008. As a result of this conviction, he is required to register as a sex offender and to update his registration within three business days of relocation or changing employment. In February of 2022, White Thunder was released from prison and began a period of supervised release. White Thunder initially registered and resided at an address in Mission, but he subsequently moved from his registered address and did not update his registration. His whereabouts were unknown until his arrest in Mission on August 13, 2022.
This case was investigated by the U.S. Marshals Service and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson 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.
White Thunder was immediately remanded to the custody of the U.S. Marshals Service.
Mishawaka Man Sentenced to 46 Months in PrisonRead the Press Release
SOUTH BEND – Erskine Jones, 31 years old, of Mishawaka, Indiana, was sentenced by United States District Court Chief Judge Jon E. DeGuilio after pleading guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Jones was sentenced to 46 months in prison followed by 2 years of supervised release.
According to documents in the case, in October 2022 Jones was on federal supervised release and state parole with active arrest warrants on both cases. When investigators found Jones, he had a loaded .380 semi-automatic firearm in his pocket. Jones’ prior convictions include two for robbery and one for felon in possession of a firearm. Any one of Jones’ prior felony convictions prohibit him from possessing the firearm.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the United States Marshals Service Fugitive Task Force and the St. Joseph County Police Department. This case was prosecuted by Assistant United States Attorney Molly E. Donnelly.
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.
Mexican Man Sentenced to Prison for Illegally Reentering the United States After Being Deported Four TimesRead the Press Release
A man who illegally returned to the United States after being deported four times was sentenced today to more than five years in federal prison.
Aron Vargas-Acosta, age 40, a citizen of Mexico illegally present in the United States and residing in Marshalltown, Iowa, received the prison term after a November 28, 2022, guilty plea to one count of illegal reentry into the United States after having been deported.
At the guilty plea, Vargas-Acosta admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Vargas-Acosta was previously deported in April 2003, January 2008, July 2010, and April 2016.
Vargas-Acosta was convicted of operating while intoxicated in Marshall County in April 2000, in Tama County in January 2001, and in Polk County in October 2001. In June 2002, he was convicted of operating while intoxicated in Marshall County and sentenced to five years’ imprisonment. In April 2003, Vargas-Acosta was deported to Mexico for the first time.
In September 2004, Vargas-Acosta was convicted of domestic assault. In December 2005, he was convicted of driving while barred, identity theft and possession of marijuana. In July 2006, he received his fifth conviction for operating while intoxicated and was sentenced to five years’ imprisonment. In January 2008, Vargas-Acosta was deported to Mexico for the second time.
In May 2008, Vargas-Acosta was arrested by immigration authorities in Texas. In October 2008, he was convicted in the Southern District of Texas of illegally reentering the United States and sentenced to 30 months’ imprisonment. In July 2010, Vargas-Acosta was deported to Mexico for the third time.
In November 2014, Vargas-Acosta was convicted in the Southern District of Iowa of illegally reentering the United States and sentenced to 21 months’ imprisonment. In April 2016, Vargas-Acosta was deported to Mexico for the fourth time.
On September 13, 2022, immigration officials learned Vargas-Acosta had illegally returned to the United States and found Vargas-Acosta at the Tama County Jail following his arrest and conviction for possession of a controlled substance and operating while intoxicated.
Vargas-Acosta was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Vargas-Acosta was sentenced to 63 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Vargas-Acosta is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-90.
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Metro East Drug Trafficking Leader Sentenced to 198 Months in PrisonRead the Press Release
EAST ST. LOUIS, Ill. – A U.S. District Court judge sentenced an East St. Louis man to 198 months after he pled guilty to several drug charges for his involvement in a national trafficking ring as the local, Metro East leader.
Jeffrey Taylor, 40, pled guilty to Conspiracy to Distribute Methamphetamine, Distribution of Cocaine, Distribution of Methamphetamine, Possession with Intent to Distribute Methamphetamine, Attempted Possession with Intent to Distribute Methamphetamine and Money Laundering. In addition to imprisonment, Taylor will serve 5 years of supervised release.
“The defendant was responsible for bringing significant quantities of illicit, destructive narcotics across state lines and into southern Illinois,” said U.S. Attorney Rachelle Aud Crowe. “This sentence demonstrates the severity of drug trafficking, and I applaud DEA’s efforts for bringing these offenders to justice.”
"This sentence concludes an investigation that perfectly represents DEA's mission," said Acting Assistant Special Agent in Charge Michael E. Rehg, head of Drug Enforcement Administration enforcement operations in southern Illinois. "We want the entire criminal drug organization, from the dealers to the highest level of distribution leadership, off our streets. Jeffrey Taylor and his entire network will not be putting his illegal products in our communities any longer."
“Drug traffickers are in business to make money. IRS CI special agents have an important role in following the money and disrupting a drug trafficking organization’s ability to operate,” said Special Agent in Charge Thomas F. Murdock, St. Louis Field Office. “This sentence is a victory for communities in southern Illinois and metropolitan St. Louis. We are proud to work alongside our law enforcement partners on this important mission.”
DEA investigated the drug trafficking ring from February 2017 to August 2018 in Madison and St. Clair counties, primarily in East St. Louis. The conspiracy involved at least 240 pounds of ice methamphetamine and 48 kilograms of cocaine.
According to court documents, Taylor ran operations in the drug organization, recruited members for illegal activities and provided direction. Sixteen co-defendants were also indicted in the conspiracy to various drug charges and have been sentenced from time served and supervised release up to 262 months in federal prison. During the investigation, the defendants resided in East St. Louis, Washington Park and Wood River in Illinois as well as California, Kansas, Mississippi, Tennessee and Texas.
Agents with the Drug Enforcement Administration led the investigation with contributions from the IRS, the Illinois State Police and the U.S. Postal Inspection Service. Assistant U.S. Attorney Amanda Fischer is prosecuting the case.
This case was part of an Organized Crime Drug Enforcement Task Forces operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Memphis Man Sentenced to over 21 Years in Federal Prison for Robbery and Attempted RobberyRead the Press Release
Memphis, TN – Rodercus Freeman, 42, was sentenced to over two decades in federal prison for bank robbery and attempted credit union robbery. Freeman was convicted of the charges following a five-day jury trial in August 2022. United States Attorney Kevin Ritz announced the sentence today.
According to United States Attorney Ritz and information presented in court, on August 18, 2018, Freeman robbed Independent Bank on Poplar Avenue in Memphis, using a simulated firearm. Two weeks later, Freeman attempted to rob Southern Security Federal Credit Union on Ridge Meadow Parkway.
United States District Judge John T. Fowlkes, Jr., sentenced Freeman to 240 months for the bank robbery and 22 months for the attempted credit union robbery, to run consecutive to one another for a total of 262 months. The court also sentenced the defendant to serve three years of supervised release. There is no parole in the federal system.
United States Attorney Ritz said: “These federal robbery crimes were very serious, and this defendant will justifiably serve a significant period of time in federal prison. Our office appreciates the hard work of the FBI and the MPD in bringing this defendant to justice.”
“The Memphis Police Department has a strong working relationship with United States Attorney Kevin Ritz’s office and the Safe Streets Task Force, as is evident in the recent arrest and charges against Mr. Rodercus Freeman. The Memphis Police Department is committed to continuing these collaborative investigations to create a safe place for all,” said Chief of Police Cerelyn J. Davis.
This case was investigated by the FBI’s Safe Streets Task Force and the Memphis Police Department.
United States Attorney Ritz thanked Assistant United States Attorneys Tony Arvin and Scott Smith, who prosecuted this case, as well as the law enforcement partners who investigated the case.
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For more information, please contact Public Information Officer Cherri Green at (901) 544-4231 or [email protected]. Follow @ WDTNNews on Twitter for office news and updates.
Mebane Man Pleads Guilty to Multi-Million Dollar Commercial Leasing Fraud SchemeRead the Press Release
RALEIGH, N.C. – A Mebane man pleaded guilty yesterday for his role in a $20 million dollar leasing fraud scheme. Dan Raymond, an owner and operator of multiple computer equipment and small business financial consulting companies had a role brokering fraudulent lease deals valued at more than $20 million dollars with 25 victim financers. Raymond pled guilty to conspiracy to commit mail fraud and wire fraud and faces up to 20 years in prison when sentenced later this year.
“Federal law enforcement specializes in unraveling complex financial frauds like this one, where a computer equipment supplier bilked financiers for millions in a scheme that lasted years,” said U.S. Attorney Michael Easley. “The Research Triangle is a hub for tech and innovation. We are ramping up white collar fraud enforcement to ensure fraudsters who take advantage of our booming tech sector are held accountable.”
According to court documents and information presented in court, from March 2016 to January 2022, while he was living in Cary, Raymond executed a scheme to defraud financing companies in connection with computer equipment lease deals. The targets of Raymond’s scheme were financing companies who offered small to medium-sized businesses (“customers”) financing and secured leases for computer servers and other computer equipment. Under these leasing programs, financers paid for and took title to the equipment and then in turn leased it to the customers for a fixed term. Financers entered into agreements with brokers who, for a fee, could bring potential equipment leasing opportunities to the financers for evaluation and approval. As a third-party independent financing source, financers did not manufacture or supply the computer equipment. Instead, the brokers, like Raymond, arranged for the purchase and delivery of the equipment to the customers, who then leased that equipment from the financers.
Raymond targeted financially-distressed small business customers throughout the country and offered them leases for computer equipment. Typically, the customers Raymond targeted were seeking a cash infusion for operating expenses and had no immediate needs for computer equipment. Nonetheless, Raymond enticed customers by offering lease deals that included large cash rebates and long-term payback options. Raymond falsely assured customers that this was a common and legitimate practice, and that they could always sell the computer equipment if they chose to. The cash rebates and payback options offered by Raymond were not known to or approved by the financers.
Raymond executed the lease agreements with the customers and then submitted the leases and invoices to a financer. If approved, the financer paid Raymond a lump sum payment which was intended to represent the cost of the computer equipment to be supplied by Raymond, plus a small fee to be retained by Raymond as profit. After the leases were signed and approved by the financer, Raymond instructed the customers to falsify documents representing that the computer equipment was delivered, installed and working properly at their business locations when, in fact, no equipment had been delivered or installed. These false declarations enabled Raymond to be paid by the financer. After Raymond obtained payment from the financers, he wired the cash rebates to the customers from his business checking account. Raymond sometimes did ship computer equipment to the customers. However, whereas the leases called for name brand computer servers and hardware valued between $30,000 - $100,000, Raymond sent generic computer parts valued at $50 - $3,500.
Raymond’s was affiliated with businesses, including Integrity IT Solutions, Inc. (“IITS”), Logos Consulting, LLC (“Logos”), Lendberry Corp. (“Lendberry”), US Server Supply (“USSS”), Online Concepts Inc. (“OC”), Referral Marketing Services (“RMS”), Sandriver Group, Inc. (“Sandriver”), Business Repair Consultants (“BRC”), and Buyback Funders, LLC (“Buyback”).
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after United States District Judge Terrence W. Boyle accepted the plea. The Federal Bureau of Investigation is investigating the case and Assistant U.S. Attorney Toby Lathan is prosecuting the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:23-CR-96-BO.
Maury County Corrections Officer Convicted of Obstruction of JusticeRead the Press Release
NASHVILLE – A Maury County, Tennessee corrections officer was convicted today by a federal jury of obstruction of justice, announced U.S. Attorney Henry C. Leventis.
James Justice, aka James Stewart Thomas, 32, of Columbia, Tenn., a corrections officer with the Maury County Sheriff’s Office, was indicted in May 2022 and charged with falsifying records relating to nonconsensual sexual contact that he had with a female inmate in his custody.
“Today’s verdict ensures that James Justice will be held accountable for his actions. As importantly, it ensures that he will no longer be entrusted to serve as a law enforcement officer,” said United States Attorney Henry C. Leventis. “I commend our trial team and partners at the FBI for an excellent job of investigating and presenting this case to the jury.”
Testimony and evidence produced at trial established that Justice wrote an official report in which he falsely claimed that he had reported to two Maury County Jail supervisors that an inmate had made sexual advances toward him while the inmate was in his custody at a hospital. The report also falsely claimed that those two Maury County Jail supervisors both advised him not to write a report about the alleged sexual advances by the inmate, and the report omitted that he had a sexual relationship with the inmate after her release from the custody of the Maury County Jail.
Justice faces up to 20 years in prison when he is sentenced on September 18, 2023. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Amanda Klopf of the Middle District of Tennessee and Trial Attorney Kyle Boynton of the Department’s Civil Rights Division prosecuted the case.
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Mason City Man Sentenced to Federal Prison for Possessing a Firearm as a FelonRead the Press Release
A Mason City, Iowa man who possessed a firearm as a felon was sentenced yesterday to the statutory maximum term of 10 years in federal prison.
Harley Davidson Llewellyn, age 44, from Mason City, Iowa, received the prison term after an October 26, 2022, guilty plea to possession of a firearm by a felon.
In a plea agreement, Llewellyn admitted to being convicted of domestic abuse assault impeding air/blood flow causing bodily injury. Llewellyn admitted to knowing he was prohibited from being in possession of a firearm.
The case began after Llewellyn threatened a co-worker with a firearm, which led to termination of his employment. Over the course of the next two months, Llewellyn went on a shooting spree in Mason City and fired shots from a 9 millimeter pistol into 4 houses in Mason City. First, on April 7, 2022, Llewellyn shot multiple times into a house that he incorrectly believed to be the home of a co-worker whom he had threatened. On April 25, 2022, he fired a shot into another home where he believed the co-worker lived and then on May 3, 2022, he fired a round into the home of his co-worker’s parents, where the co-worker previously resided. Also on May 3, 2022, Llewellyn shot into a sober living facility in Mason City.
Following this shooting spree, Mason City police served a search warrant at defendant’s residence in Mason City where they located two Hi-Point 9 millimeter handguns, one of which had been used in all four of the shootings.
Llewellyn was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Llewellyn was sentenced to 120 months’ imprisonment, the statutory maximum sentence for the crime. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Llewellyn is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jack Lammers and was investigated by the Mason City Police Department and the Butler County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-3026.
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Maryland Man Sentenced to Federal Prison for Threatening a Member of CongressRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett today sentenced Justin Kuchta, age 40, of Annapolis, Maryland, to four months in federal prison, followed by one year of supervised release, for threatening to murder a United States Member of Congress.
The sentence was announced by Erek L. Barron, United States Attorney for the District of Maryland; Chief J. Thomas Manger of the United States Capitol Police; and Superintendent of the Maryland State Police, Colonel Roland L. Butler, Jr.
According to his plea agreement, Kuchta made threats to murder a Member of the U.S. Congress. Specifically, a U.S. Member of Congress’ district office in Texas reported that on July 18, 2022, it received a threatening message via an event management website. The website was being used by an event planner to coordinate an event held in the State of Missouri, being attended by Member of Congress 1. The Subject line of that email read, in relevant part: “Rally in Missouri – Featured Guest [Member of Congress 1], [Individual 1], and [Individual 2].” The message stated, “Thank you for the address!!! I’m coming to murder all of you Satanist f*ckers!!! Especially the chuckle-f*ck Zodiak [sic] Killer [Member of Congress 1]!! That fat fake f*cker ass will be the first on the gallows!! SEE ALL OF YOU F*CKERS REALLY SOON!!! With my fresh militia and weapons!!! Thanks for the info f*ckers!!!” The Member of Congress’ Washington office reported that a similar message was sent on July 22, 2022, using the same event management website.
As detailed in the plea agreement, an investigation revealed that the IP address was registered to a private high-speed network operated by the State of Maryland. Network records revealed that the IP address originated from a Virtual Private Network and computer assigned to Kuchta. Kuchta was subsequently interviewed, after being advised of his rights, by Special Agents with the U.S. Capitol Police and investigators assigned to the Maryland State Police Computer Crimes Unit at his place of employment in Annapolis, Maryland. While Kuchta initially denied sending the email messages, he ultimately admitted that he sent the July 18, 2022, threatening message over the website.
United States Attorney Erek L. Barron commended the United States Capitol Police and the Maryland State Police for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney P. Michael Cunningham, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, and its efforts to protect national security, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/anti-terrorism.
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Maple Grove Man Pleads Guilty to Violent Carjacking at Blaine Grocery Store Parking LotRead the Press Release
MINNEAPOLIS – A Maple Grove man has pleaded guilty to an armed carjacking at a Blaine grocery store, announced U.S. Attorney Andrew M. Luger.
According to court documents, on September 24, 2022, Justin Michael Kittleson, 20, targeted two victims as they left the Cub Foods grocery store in Blaine and loaded groceries into their car. Kittleson approached one of the victims at the trunk of the car and pointed a gun at them. The second victim attempted to intervene, and a struggle ensued. The gun discharged, and the shot is believed to have grazed the second victim’s ear. Kittleson took control of the car and drove away. A 9MM shell casing was recovered at the scene by officers with the Blaine Police Department. After reviewing surveillance video footage and with the assistance from other members of the public, officers were able to identify and locate Kittleson. On September 29, 2022, law enforcement executed a search warrant at a residence associated with Kittleson and recovered two 9MM firearms (the same caliber as the casing found at the scene of the carjacking) and a hooded sweatshirt that matched the sweatshirt Kittleson was seen wearing in the surveillance footage.
Kittleson pleaded guilty yesterday in U.S. District Court before Senior Judge Ann D. Montgomery to one count of carjacking and one count of brandishing a firearm during and in relation to a crime of violence. Kittleson is scheduled to be sentenced on August 16, 2023.
This case is the result of an investigation conducted by the FBI and the Blaine Police Department.
Assistant U.S. Attorney Lindsey E. Middlecamp is prosecuting the case.
Man Sentenced for Unlawfully Possessing a Semiautomatic FirearmRead the Press Release
TUCSON, Ariz. – Esteban Gonzalez-Melendez, 26, of Mexico, was sentenced last week by United States District Judge Jennifer G. Zipps to 30 months in prison, followed by three years of supervised release. Gonzalez-Melendez also was ordered to pay a $100 special assessment. Gonzalez-Melendez pleaded guilty to Possession of Firearms and Ammunition knowing that he was an undocumented non-citizen illegally and unlawfully in the United States.
On September 9, 2022, Arizona Department of Public Safety (DPS) officers conducted a traffic stop on a vehicle in which Gonzalez-Melendez was a passenger. One of the officers observed the muzzle of a rifle on the passenger floorboard protruding from under a blanket covering Gonzalez-Melendez. A search of the vehicle revealed a semiautomatic AR-15 pistol with large capacity magazine capabilities, along with a 9mm pistol and .380 pistol where Gonzalez-Melendez was seated. The search further revealed a two-way radio, a 30-round AR-15 magazine, a 100-round AR-15 drum magazine, two .380 magazines, a 9mm magazine, 12 rounds of 9mm ammunition, 14 rounds of .380 ammunition, 92 rounds of 5.56x45 NATO ammunition, and a pair of handcuffs.
United States Border Patrol agents, who were called by DPS, determined that Gonzalez-Melendez was illegally present in the United States. Gonzalez-Melendez stated he knew it was illegal for him to possess a firearm and indicated he had purchased two of the weapons in Phoenix, and a friend gave him the third gun “to hold.”
Homeland Security Investigations and Customs and Border Protection’s United States Border Patrol conducted the investigation in this case. Assistant United States Attorney Brandon Bolling, United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: 22-cr-02127 -TUC-JGZ (EJM)
RELEASE NUMBER: 2023-063_Gonzalez-Melendez# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Man Sentenced for Stealing over 712 Bitcoin Subject to ForfeitureRead the Press Release
WASHINGTON – An Ohio man was sentenced today to four years and three months in prison for stealing over 712 bitcoin that were the proceeds of the darknet bitcoin mixer Helix and subject to forfeiture in a then-pending criminal case.
According to court documents, Gary James Harmon, 31, of Cleveland, perpetrated a scheme to steal cryptocurrency that was the subject of pending criminal forfeiture proceedings in the case of Larry Dean Harmon, Gary Harmon’s brother. In February 2020, Larry Harmon was arrested for his operation of Helix, a darknet-based cryptocurrency money laundering service, known as a “mixer” or “tumbler.” Helix laundered over 350,000 bitcoin – valued at over $300 million at the time of the transactions – on behalf of customers, with the largest volume coming from darknet markets. Law enforcement seized various assets, including a cryptocurrency storage device containing Larry
Harmon’s illegal proceeds generated through the operation of Helix, which were subject to forfeiture in the criminal case. However, law enforcement was initially unable to recover bitcoin stored on the device due to the device’s additional security features.Knowing that the government was seeking to recover the bitcoin stored on the seized device for forfeiture in Larry Harmon’s criminal case, Gary Harmon used his brother’s credentials to recreate the bitcoin wallets stored on the device and covertly transfer more than 712 bitcoin, valued at approximately $4.8 million at the time, to his own wallets – stealing those funds and obstructing the pending criminal forfeiture proceeding. Gary Harmon further laundered the proceeds through two online bitcoin mixer services before using the laundered bitcoins to finance large purchases and other expenditures.
Gary Harmon agreed to the forfeiture of cryptocurrencies and other properties derived from the fraudulently taken proceeds, including more than 647.41 Bitcoin (BTC), 2.14 Ethereum (ETH), and 17,404,400.64 Dogecoin (DOGE). Due to the increase in market prices, the total value of these forfeitable properties exceeds $20 million.
In August 2021, Larry Harmon pleaded guilty to money laundering conspiracy in connection with his case.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Matthew M. Graves for the District of Columbia, Assistant Director Bryan Vorndran of the FBI’s Cyber Division, Special Agent in Charge David Sundberg of the FBI Washington Field Office, and Acting Special Agent in Charge Kareem A. Carter of the IRS Criminal Investigation (IRS-CI) Washington, D.C. Field Office made the announcement.
The FBI and the IRS-CI District of Columbia Cyber Crime Unit investigated the case.
Assistant U.S. Attorney Christopher B. Brown for the District of Columbia and Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS), both now also members of the National Cryptocurrency Enforcement Team, prosecuted the case, with assistance from Paralegal Specialists Michon Tart, Angela De Falco, and Brian Rickers, and former Paralegal Specialist Chad Byron. Additional assistance was provided by Assistant U.S. Attorneys Segev Phillips and Daniel Riedl for the Northern District of Ohio and CCIPS Trial Attorney S. Riane Harper.
Man Sentenced for Stealing over 712 Bitcoin Subject to ForfeitureRead the Press Release
An Ohio man was sentenced today to four years and three months in prison for stealing over 712 bitcoin that were the proceeds of the darknet bitcoin mixer Helix and subject to forfeiture in a then-pending criminal case.
According to court documents, Gary James Harmon, 31, of Cleveland, perpetrated a scheme to steal cryptocurrency that was the subject of pending criminal forfeiture proceedings in the case of Larry Dean Harmon, Gary Harmon’s brother. In February 2020, Larry Harmon was arrested for his operation of Helix, a darknet-based cryptocurrency money laundering service, known as a “mixer” or “tumbler.” Helix laundered over 350,000 bitcoin – valued at over $300 million at the time of the transactions – on behalf of customers, with the largest volume coming from darknet markets. Law enforcement seized various assets, including a cryptocurrency storage device containing Larry Harmon’s illegal proceeds generated through the operation of Helix, which were subject to forfeiture in the criminal case. However, law enforcement was initially unable to recover bitcoin stored on the device due to the device’s additional security features.
Knowing that the government was seeking to recover the bitcoin stored on the seized device for forfeiture in Larry Harmon’s criminal case, Gary Harmon used his brother’s credentials to recreate the bitcoin wallets stored on the device and covertly transfer more than 712 bitcoin, valued at approximately $4.8 million at the time, to his own wallets – stealing those funds and obstructing the pending criminal forfeiture proceeding. Gary Harmon further laundered the proceeds through two online bitcoin mixer services before using the laundered bitcoins to finance large purchases and other expenditures.
Gary Harmon agreed to the forfeiture of cryptocurrencies and other properties derived from the fraudulently taken proceeds, including more than 647.41 Bitcoin (BTC), 2.14 Ethereum (ETH), and 17,404,400.64 Dogecoin (DOGE). Due to the increase in market prices, the total value of these forfeitable properties exceeds $20 million.
In August 2021, Larry Harmon pleaded guilty to money laundering conspiracy in connection with his case.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Matthew M. Graves for the District of Columbia, Assistant Director Bryan Vorndran of the FBI’s Cyber Division, Special Agent in Charge David Sundberg of the FBI Washington Field Office, and Acting Special Agent in Charge Kareem A. Carter of the IRS Criminal Investigation (IRS-CI) Washington, D.C. Field Office made the announcement.
The FBI and the IRS-CI District of Columbia Cyber Crime Unit investigated the case.
Assistant U.S. Attorney Christopher B. Brown for the District of Columbia and Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS), both now also members of the National Cryptocurrency Enforcement Team, prosecuted the case, with assistance from Paralegal Specialists Michon Tart, Angela De Falco, and Brian Rickers, and former Paralegal Specialist Chad Byron. Additional assistance was provided by Assistant U.S. Attorneys Segev Phillips and Daniel Riedl for the Northern District of Ohio and CCIPS Trial Attorney S. Riane Harper.
Man Indicted Following Seizure of More Than 150 Pounds of Fentanyl at Border Patrol CheckpointRead the Press Release
PHOENIX, Ariz. – Isidro Pantoja-Ramirez, 57, of Mexicali, Mexico, was indicted last week by a federal grand jury on one count of Possession with Intent to Distribute Fentanyl.
The United States alleges that, on March 24, 2023, Pantoja-Ramirez was stopped while in a vehicle at a Border Patrol checkpoint located between Yuma and Wellton, Arizona. United States Border Patrol agents conducted an inspection that revealed a total of 16 packages hidden within the vehicle’s tailgate and spare tire. The total weight of the packages was more than 150 pounds, and they contained a substance that field tested positive for the presence of fentanyl.
A conviction for Possession with Intent to Distribute Fentanyl carries a maximum penalty of 20 years in prison, a maximum fine of $1,000,000, and up to lifetime supervised release.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The Drug Enforcement Administration, Yuma Office, is conducting the investigation in this case. Assistant United States Attorney Joshua B. Tesoriero, District of Arizona, Yuma, is handling the prosecution.
CASE NUMBER: CR-23-00594-MTL
RELEASE NUMBER: 2023-064_Pantoja-Ramirez# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Logan County Woman Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Vada Leann White, 32, of Big Creek, pleaded guilty today to possession with intent to distribute methamphetamine.
According to court documents and statements made in court, on December 1, 2021, a law enforcement officer conducted a traffic stop of a vehicle in which White was a passenger in the Jeffrey area of Boone County. The officer searched the vehicle and found seven bags containing a total of approximately 139 grams of methamphetamine. The officer also found $3,436 on White’s person and in the vehicle. White told the officer that she possessed the methamphetamine and intended to sell it.
White is scheduled to be sentenced on August 10, 2023, and faces a maximum penalty of 20 years in prison, three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the West Virginia State Police.
United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorney Nowles Heinrich 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. 2:22-cr-142.
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