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24 May 2023
Two Men Sentenced in Multimillion Dollar Fraud SchemeRead the Press Release
RICHMOND, Va. –A Pennsylvania man and a Georgia man were each sentenced yesterday to 46 months in prison for participating in a fraud scheme causing millions of dollars in loss to victims.
According to court documents and testimony at hearings, from approximately September 2016 to March 2021, Carl Anthony McNeill, 59, of Mechanicsburg, Pennsylvania, and Richard Thornhill Crock, 75, of Mableton, Georgia, along with other co-conspirators, ran an advance fee scheme targeting individuals, small businesses, churches, and other entities that could not obtain conventional lines of credit though banks. The co-conspirators promised these victims that, using their relationships with major investment banks, the co-conspirators could obtain lines of credit for the victims. The scheme required that the victims advance a deposit consisting of 10-15% of the line of credit sought, representing that the deposit would be held in escrow and returned if they did not obtain the line of credit. In fact, the co-conspirators did not have any relationships with the investment banks mentioned in their dealings with the victims, and did not safeguard the victims' funds in escrow.
The fraudulently obtained funds from victims were misapplied to pay co-conspirators; cover the payroll and operating expenses of C&D Corporate Services, the company McNeill used to commit the fraud; and pay frustrated victims seeking the return of deposited money. Crock also falsely represented to victims that their advanced funds would be insured via policies issued through a Georgia-based insurance company. These policies were also fraudulent, as the insurance company did not have sufficient assets on hand to compensate victims under such policies.
McNeill was ordered to pay over $5.8 million in restitution and Crock was ordered to pay over $2.4 million in restitution to victims.
Co-defendants Jayson Ryman Colavalla and Ksyntoilious Miller are scheduled for sentencing on June 20 and July 11, respectively. They each face maximum sentences of 20 years in prison for their role in the conspiracy. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by Senior U.S. District Judge John A. Gibney, Jr.
Assistant U.S. Attorneys Michael C. Moore and Avi Panth prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:21-cr-132.
Two Convicted for Roles in Drug Trafficking Organization with Ties to Mexican CartelRead the Press Release
BOSTON – Two men were convicted today by a federal jury in Boston for operating a large-scale international fentanyl trafficking and money laundering conspiracy.
Fermin Castillo, 43, of Boston, and Andre Heraux Martinez, 24, of the Dominican Republic, were convicted following a seven-day jury trial of conspiracy to distribute over 400 grams of fentanyl and conspiracy to commit money laundering. U.S. Senior District Court Judge William G. Young scheduled sentencing for Sept. 12, 2023. Castillo and Heraux were indicted on April 15, 2021.
In July 2020, law enforcement began an investigation into a drug trafficking and money laundering organization distributing large quantities of fentanyl and laundering drug proceeds. Intercepted communications identified Fermin Castillo as the leader of the organization who coordinated fentanyl shipments from Sinaloa, Mexico to Massachusetts and the laundering of hundreds of thousands of dollars. As part of the conspiracy, Heraux maintained a drug stash apartment located in Hyde Park, which was used to store and process kilograms of fentanyl and delivered a total of over $500,000 in drug proceeds to undercover officers posing as money launderers.
In August 2020, Castillo coordinated the delivery of $200,000 to a separate New York-based money laundering organization, as well as the delivery of $100,000 to an undercover officer in December 2020. In January 2021, Castillo coordinated the delivery of $150,000 which was ultimately seized from Heraux as he attempted to deliver the money on behalf of Castillo. Additionally, in February 2021, 197 grams of fentanyl was seized from Heraux as he attempted to deliver the drugs to a customer of the organization.
In total, over 10 kilograms of fentanyl and heroin were seized from Heraux’s stash apartment along with additional fentanyl from other members of the drug trafficking and money laundering organization.
The charge of conspiracy to distribute over 400 grams of fentanyl provides for a mandatory minimum sentence of 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. The charge of conspiracy to commit money laundering provides for a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $500,000, or twice the value of the funds laundered, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and John E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement today. Assistant U.S. Attorneys Leah B. Foley and Stephen W. Hassink of Levy’s Narcotics & Money Laundering Unit are prosecuting the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Two Accused of Stealing Mail from St. Louis County Collection BoxesRead the Press Release
ST. LOUIS – Two men appeared in U.S. District Court in St. Louis Wednesday to answer an indictment accusing them of stealing mail from collection boxes in St. Louis County, Missouri and using those checks to commit bank fraud.
Dareon Graham, 22, of Ferguson, and Tyrell Hardin, 20, of Hanley Hills, pleaded not guilty Wednesday. Hardin is facing one conspiracy count and eight counts of mail theft. Graham was indicted on one conspiracy count, 13 counts of bank fraud, four counts of possession of stolen mail and four counts of aggravated identity theft.
The April 26 indictment says Graham used a stolen key to open mail collection boxes and steal mail and paid money to Hardin to do the same. The pair would then open the mail and remove personal and business checks, the indictment says.
Graham then recruited others to provide their banking information so he could alter the checks and deposit them into the accounts, the indictment says. Each check was written for thousands of dollars. Graham would then withdraw cash at ATMs before the banks realized the checks were fraudulent, the indictment says.
The conspiracy, mail theft and stolen mail charges carry a penalty of up to five years in prison, a $250,000 fine or both. The bank fraud charges are punishable by up to 30 years in prison, a $1 million fine or both. Each aggravated identity theft charge carries a two-year prison term, consecutive to any other charge.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The U.S. Postal Inspection Service investigated the case. Assistant U.S. Attorney Jonathan Clow is prosecuting the case.
Three Members of Cape Cod Heroin Trafficking Ring Sentenced to Prison for Violent Kidnapping and Drug OffensesRead the Press Release
BOSTON – Three men have been sentenced to decades in prison for their roles in a Cape Cod drug trafficking organization (DTO) that distributed heroin throughout the Cape Cod and Pawtucket, R.I., regions, committed a violent kidnapping recorded on video and worked together to shoot at a Hyannis man over a drug debt.
Edwin Otero, 33, of Hyannis, was sentenced on May 18, 2023 by Judge Allison D. Burroughs to 38 years in prison. On May 16, 2023, Justin Joseph, 35, of Pawtucket, R.I., was sentenced by Judge Burroughs to 30 years in prison; and Anthony Basilici, 39, of Pawtucket, was sentenced to 22 and a half years in prison.
On Jan. 26, 2023, after a week-long trial, Basilici was convicted by a federal jury of conspiracy to distribute and possession with intent to distribute 100 grams or more of heroin; possession and discharge of a firearm in connection with a drug trafficking crime; kidnapping conspiracy; witness intimidation; and witness retaliation conspiracy. On Jan. 18, 2023, the day jury selection began, Otero and Joseph pleaded guilty to conspiracy to distribute and possession with intent to distribute 100 grams or more of heroin; possession and discharge of a firearm in connection with a drug trafficking crime; kidnapping conspiracy; and witness retaliation conspiracy.
In 2018, an investigation began into a Cape Cod-wide DTO led by Edwin Otero. The investigation revealed that Otero, Joseph, Basilici and their other co-defendants distributed large quantities of heroin throughout Cape Cod, including in Hyannis, Mashpee, Centerville, Osterville and in Pawtucket, R.I.
In April 2019, Otero, Joseph, and Basilici lured a victim from Massachusetts to Rhode Island where they kidnapped and held him, stripped him naked, assaulted him with a hammer and threatened to rape him. Otero, Joseph, Basilici and other co-conspirators threatened physical injury to the victim to retaliate against him because they believed he was cooperating with law enforcement. Basilici recorded the assault and kidnapping on a cell phone which Otero and Basilici used to further intimidate other witnesses after the kidnapping. In May 2019, Otero, Joseph and Basilici armed themselves with guns and worked together to shoot at a Hyannis man over a drug debt owed to Otero.
Otero, Joseph and Basilici were initially charged along with eight others in May 2019 on the drug conspiracy charges. In connection with those arrests, heroin, packaging materials, scales, a finger press as well as three firearms and ammunition including a 9 millimeter assault-style weapon were seized from Otero’s grandmother’s residence. In March 2020, Otero, Joseph, Basilici and two others – Cameron Cartier and Albert Lee – were indicted in connection with the violent kidnapping and related charges.
In addition to the sentencings discussed above, a fourth defendant, Tony Johnson, 39, of Hyannis, was sentenced on May 18, 2023 to 75 months in prison after he pleaded guilty to conspiring with Otero and others to distribute heroin. All 13 defendants charged in this indictment have now been sentenced.
Acting United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Barnstable Police Chief Matthew K. Sonnabend; and Barnstable County Sheriff Donna D. Buckley made the announcement today. Assistant U.S. Attorneys Christopher Pohl and Lauren Graber of Levy’s Criminal Division prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Three Federal Correctional Institution, Schuylkill Inmates Charged with Possession of Contraband in PrisonRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that three federal inmates were indicted separately on May 23, 2023, by a federal grand jury for possessing contraband in prison.
According to U.S. Attorney Gerard M. Karam, the following three FCI Schuylkill, Minersville, Pennsylvania, inmates were charged with possession of a dangerous prison-made weapon, commonly known as a “shank:”
- Tyrik Brown, age 28, originally from Washington D.C.;
- Thadusse Hartridge, age 22, originally from Washington D.C.;
- Daquon Brooks, age 28, originally from Washington D.C.
The investigations were conducted by the Federal Bureau of Investigation and the Bureau of Prisons Special Investigative Service. Assistant United States Attorney Robert J. O’Hara is prosecuting the cases.
The maximum penalty under federal law is five years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Three Additional Defendants in North Carolina Plead Guilty to National COVID-19 Fraud SchemeRead the Press Release
RALEIGH, N.C. – Isaac Lamont Dawson, 44; Jackson Kyalo Ndoyo, 29; and Dontrell Rayshar Barnes, 32, each plead guilty today to conspiracy to commit wire fraud for fraudulently obtaining Paycheck Protection Act (“PPP”) COVID-19 loans. The defendants sought relief on behalf of various companies they owned including companies listed as purportedly being engaged in catering, music production, and construction. They all face up to 20 years in prison.
"At a time when most Americans were looking to help their neighbors, these defendants decided to steal from them by scamming a taxpayer funded program designed to help mom and pop businesses from going under,” said U.S. Attorney Michael Easley. “My office is continuing to investigate and prosecute the bad actors who conspired to use this lifeline to line their own pockets."
According to the charged criminal information, the defendant conspired with Edward Whitaker, Schunda Coleman, and others to obtain a fraudulent PPP loan. Whitaker and Coleman pled guilty on January 19, 2023 for their role in operating a nation-wide scheme to help people across the country commit millions of dollars of PPP fraud.
According to charging documents and information summarized in court, Whitaker and Coleman created fraudulent supporting documents and applications for the PPP loans which they provided to the defendants in exchange for 25% of the total loan proceeds. The fraudulent applications falsified the number of employees and gross wages being paid prior to the COVID pandemic, in order to help qualify for the PPP loans. Following the disbursement of the PPP loans, Whitaker instructed each defendant as to how to make it appear that the PPP loans were being paid out to employees, when in reality the money was transferred back to the defendants. The fraudulent payroll records were then submitted to the Small Business Administration (SBA) to obtain 100% loan forgiveness.
Late last year, Quentin Jackson pled guilty in the same conspiracy which included the recruitment of numerous individuals in the Eastern District of North Carolina to use Whitaker and Coleman to obtain fraudulent PPP funds.
“The Paycheck Protection Program was designed to help small businesses facing financial difficulties during the COVID-19 pandemic,” said Donald “Trey” Eakins, Internal Revenue Service (IRS) Criminal Investigation Special Agent in Charge in the Charlotte Field Office. “Through our partnership with the U.S. Attorney’s Office and our federal law enforcement partners, IRS Criminal Investigation Special Agents will continue to aggressively pursue individuals who try to exploit federal relief programs for their personal gain.”
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was designed to provide emergency financial assistance to the millions of Americans who were economically suffering from the COVID-19 pandemic. The CARES Act and additional appropriations authorized up to $649 billion in forgivable loans to small businesses through the Paycheck Protection Program (PPP). Financial institutions issued the PPP loans, which were guaranteed by the SBA.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after United States Magistrate Judge Robert T. Numbers II accepted the pleas. Sentencings will occur before United States District Judge James C. Dever III later this year. Internal Revenue Service (IRS) Criminal Investigation is leading the investigation, and Assistant U.S. Attorney David G. Beraka is prosecuting the cases.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER.
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Tax Preparer and Client Charged with $13 Million Paycheck Protection Program Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a complaint charging SANDEEP GROVER and SHIKHA SEHGAL with major fraud against the U.S. and conspiracy to commit wire fraud and bank fraud for their participation in a scheme to submit more than 100 applications containing false representations to seven financial institutions and fraudulently obtain over $13 million in government-backed Paycheck Protection Program (“PPP”) loans designed to provide relief to small businesses during the COVID-19 pandemic. GROVER is also charged with aggravated identity theft for using an employee’s personally identifiable information without authorization to submit a loan application. GROVER and SEHGAL will be presented today before U.S. Magistrate Judge Gabriel W. Gorenstein.
U.S. Attorney Damian Williams said: “Sandeep Grover allegedly used his tax preparation business to steal millions of dollars from a program created by Congress to assist struggling small businesses during the pandemic. To pull off his scheme, Grover allegedly recruited co-conspirators like Shikha Sehgal, who opened bank accounts for shell companies and lied to banks about those companies’ loan eligibility. This Office will continue to prosecute those who used the pandemic as an opportunity to defraud American taxpayers.”
FBI Assistant Director-in-Charge Michael J. Driscoll said: “The defendants allegedly devised a scheme to exploit the Paycheck Protection Program for millions of dollars for personal use rather than qualifying expenses. Fraudulent schemes like these defraud not only a program intended to help small businesses weather a global pandemic but also the United States' taxpayers. The FBI will continue to ensure that anyone taking advantage of government backed programs are held responsible in the criminal justice system.”
As alleged in the Complaint[[1]]:
SANDEEP GROVER is the owner of Excellent Business Services Inc. (“EBS”), a tax preparation business based in Seaford, New York. From at least April 2020 through at least June 2021, GROVER submitted more than 100 PPP applications containing false representations to at least seven financial institutions, on behalf of dozens of his own companies as well as putative client companies on whose behalf GROVER created false IRS filings. The applications certified to the United States Small Business Administration (“SBA”) that the companies each had multiple employees and spent tens of thousands of dollars in monthly payroll, but in fact the companies did not report wages to the Social Security Administration during the relevant time period. Bank records also show that instead of using the PPP loan proceeds for allowable expenses, such as payroll costs, mortgage interest, rent, and utilities, GROVER moved millions of dollars in PPP loan proceeds between his many accounts and used those proceeds to purchase property, pay off personal loans, and pay expenses for other companies under his control. GROVER used a variety of methods to increase the number of fraudulent loan applications he was able to submit. Among other things, he recruited SHIKHA SEHGAL and others to open bank accounts for companies that did no business, create fake invoices and other supporting documentation, and submit fraudulent applications for numerous PPP loans. GROVER also misused the personally identifiable information of one of his employees to obtain a loan.
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GROVER, 54, of Massapequa, New York, and SEHGAL, 43, of Deer Park, New York, were each charged with one count of major fraud against the United States, which carries a maximum sentence of ten years in prison, and one count of conspiracy to commit wire fraud and bank fraud, which carries a maximum sentence of 30 years in prison. GROVER is also charged with one count of aggravated identity theft, which carries a mandatory sentence of two years in prison.
The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Williams praised the investigative work of the FBI and thanked the U.S. Small Business Administration’s Office of Inspector General and the New York Field Office of the Internal Revenue Service, Criminal Investigation, for their assistance.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Jane Yumi Chong is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Tahlequah Residents Sentenced for Role in Cherokee County RobberyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Kody Fields, age 24, Fvs-Chvtv Amos Lawhead, age 30, and Jimmy Dale Brown, age 31, all Tahlequah residents, were sentenced for their roles in a 2021 Cherokee County robbery. Lawhead and Fields were both sentenced to 120 months in prison. Brown was sentenced to 46 months in prison.
The charges arose from investigations by the Cherokee County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On July 24, 2021, Fields, Lawhead, and Brown robbed a victim at gunpoint, firing multiple rounds, and demanding the victim’s cash, phone, firearm, and vehicle.
On February 9, 2022, Brown pleaded guilty to one count of Robbery, and Lawhead pleaded guilty to one count of Use, Carry, Brandish and Discharge of a Firearm During and in Relation to a Crime of Violence.
On February 22, 2022, Fields pleaded guilty to one count of Use, Carry, Brandish and Discharge of a Firearm During and in Relation to a Crime of Violence.
“Using firearms to commit crimes will not be tolerated in the Eastern District of Oklahoma,” said United States Attorney Christopher J. Wilson. “Under federal law, using, carrying, brandishing, and/or discharging a firearm during the commission of a violent crime subjects offenders to mandatory minimum prison sentences, and the U.S. Attorney’s Office will not hesitate to pursue these charges when the facts warrant.”
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted these cases because the defendants are members of a federally recognized Indian tribe and the crimes occurred in Cherokee County, within the boundaries of the Cherokee Nation Reservation and the Eastern District of Oklahoma.
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearings in Muskogee. Fields, Lawhead, and Brown will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve non-paroleable sentences of incarceration.
Assistant United States Attorney Ryan Bondura represented the United States at sentencing.
Summerville Man Sentenced to 8 years for Possession of Child PornographyRead the Press Release
CHARLESTON, SOUTH CAROLINA — Justin Michael Beauvais, 39, of Summerville, was sentenced to 8 years in federal prison for possession of child pornography.
Evidence presented to the Court showed that in October 2020, Beauvais was a subcontractor working at the Naval Information Warfare Center (NIWC) at McMurdo Station in Antarctica but was on leave in South Carolina. While on leave, he accepted a new job and contacted his coworkers at McMurdo station to request that they mail his personal hard drive to his home in Summerville, South Carolina. On October 8, 2020, Beauvais emailed his coworkers and requested they reformat his hard drive and mail it to him. On October 13, 2020, a coworker located the hard drive and viewed it to download movies. At that time, the coworker located a video that depicted a nude prepubescent girl. The coworkers reported the incident, and superiors confirmed that there was child pornography on the hard drive.
On October 28, 2020, Beauvais waived his Miranda rights and was interviewed by Naval Criminal Investigative Service (NCIS) agents. Beauvais initially denied having child pornography on the hard drive. Thereafter, Beauvais consented to a polygraph examination and consented to all his electronics being seized from his residence. Beauvais admitted to possessing child pornography on the hard drive that was in Antarctica. Beauvais stated he copied child pornography from his personal device in South Carolina to the hard drive and then took the hard drive with him to Antarctica.
Agents obtained consent to search Beauvais’ residence and seized numerous electronic devices following the search, including hard drives, laptops, and cell phones. A review of the devices revealed thousands of images depicting child pornography, including images depicting pre-pubescent minors and toddlers.
United States District Judge Bruce Howe Hendricks sentenced Beauvais to 97 months in federal prison, to be followed by a lifetime term of court-ordered supervision. There is no parole in the federal system. Judge Hendricks also ordered Beauvais to pay $51,500 in restitution to the victims.
The case was investigated by the Naval Criminal Investigative Service (NCIS). Assistant U.S. Attorneys Dean H. Secor and Emily E. Limehouse prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
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Suburban Chicago Man Guilty of Possessing Child PornographyRead the Press Release
CHICAGO — A suburban Chicago man admitted in federal court that he illegally possessed more than 3,000 videos and images depicting children engaged in sexually explicit conduct.
MIGUEL ASCENCIOS, also known as “Allison Wou,” 55, of Burr Ridge, Ill., pleaded guilty Tuesday to a federal charge of receipt of child pornography. The conviction is punishable by a mandatory minimum sentence of five years in federal prison and a maximum of up to 20 years. U.S. District Judge Robert W. Gettleman set sentencing for Aug. 22, 2023.
Ascencios admitted in a plea agreement that in 2017 and 2018 he used social media and a file-sharing service to receive and share computer files depicting child pornography. Among the thousands of files he possessed were videos depicting the sexual exploitation of toddlers, the plea agreement states.
Two ten-year-old children depicted in the images and videos have been identified as known child victims by the National Center for Missing and Exploited Children. The Court at sentencing will determine the amount of restitution owed to victims.
The guilty plea was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Ruth M. Mendonça, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service. Substantial assistance was provided by the Los Angeles County Sheriff’s Department, the U.S. Attorney’s Office for the Central District of California, the Los Angeles Division of the U.S. Postal Inspection Service, and the U.S. Marshals Service. The government is represented by Special Assistant U.S. Attorney Malgorzata Tracz Kozaka.
If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by logging on to www.missingkids.com or by calling 1-800-843-5678. The service is available 24 hours a day, seven days a week.
Stamford Man Charged with Child Exploitation OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations (HSI), New England, and Stamford Police Chief Timothy Shaw today announced that SERVIO BARROS-TERREROS, 56, of Stamford has been charged by federal criminal complaint with child exploitation offenses.
As alleged in court documents, in December 2022, a minor female victim reported that, when she was nine and 10 years old, Barros-Terreros had sexually assaulted her multiple times. The victim reported that Barros-Terreros took sexually explicit pictures of her, and threatened to publish the pictures and show them to the victim’s mother if the victim told anyone. Barros-Terreros also instructed the victim to undress during video calls he initiated with the victim, during which he also engaged in sexually explicit conduct.
On January 12, 2023, Stamford Police arrested Barros-Terreros on state sexual assault and risk of injury offenses, and seized Barros-Terreros’ iPhone. It is alleged that analysis of the iPhone revealed sexually explicit images of the minor victim, and images of Barros-Terreros engaging in sexually explicit conduct with the minor victim.
Barros-Terreros has been detained since his arrest. He made his initial appearance yesterday in Bridgeport federal court.
The complaint charges Barros-Terreros with sexual exploitation of children, an offense that carries a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 30 years, and with possession of child pornography, an offense that carries a maximum term of imprisonment of 20 years.
U.S. Attorney Avery stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by Homeland Security Investigations (HSI) and the Stamford Police Department. The case is being prosecuted by Assistant U.S. Attorney Daniel E. Cummings with the assistance of the Office of the State’s Attorney for the Judicial District of Stamford-Norwalk.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
St. Louis County Felon Accused of Possessing Nearly 1 Kilogram of FentanylRead the Press Release
ST. LOUIS – A convicted felon from Wellston, Missouri has been federally indicted and accused of possessing nearly one kilogram of fentanyl and 700 grams of crack cocaine.
Devion X. Gordon, 28, was charged by complaint May 9 and indicted by a grand jury May 17. He now faces charges of possession with intent to distribute fentanyl, possession with intent to distribute cocaine base, possession of a firearm in furtherance of a drug-trafficking crime and being a felon in possession of a firearm.
Charging and court documents say that an investigation by the FBI and the St. Louis Metropolitan Police Department resulted in a court-approved search of Gordon’s home on May 9. Investigators found a loaded Glock pistol, drug paraphernalia, about 965 grams of fentanyl, about 700 grams of cocaine base and approximately $18,000 in cash.
The fentanyl charge is punishable by a mandatory minimum sentence of 10 years in prison, and the cocaine base and possession of a firearm in furtherance of a drug crime charges each carry a five-year mandatory minimum.Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The FBI and the St. Louis Metropolitan Police Department investigated the case. Assistant U.S. Attorney Christian Goeke is prosecuting the case.
St. Clair County Man Facing Federal Charge for Pipe Bomb PossessionRead the Press Release
EAST ST. LOUIS, Ill. – On Monday, Jim F. Lanier, 49, of Marissa, Illinois, was arraigned on an indictment in federal court charging the unlawful possession of a destructive device. Lanier was ordered detained pending trial.
In a previously filed complaint, the Federal Bureau of Investigation alleged that Lanier admitted to making a homemade pipe bomb that he intended to use to blow up his wife’s vehicle, and further admitted to lighting and throwing the device at people who confronted him inside a trailer park in Marissa, Illinois on April 29, 2023. The device did not detonate, according to the complaint. The complaint further alleged that a second suspicious device was found stored among Lanier’s belongings.
The unlawful possession of an unregistered destructive device is punishable by up to 10 years’ imprisonment.
“Destructive devices can be exceptionally dangerous to life and limb. All suspected cases of the unlawful possession of homemade explosive or incendiary devices must be investigated thoroughly and treated as serious threats,” said U.S. Attorney Rachelle Aud Crowe.“A potentially hazardous situation that could have endangered the lives of innocent people was averted thanks to successful collaboration with our local, state and federal partners,” said Springfield Field Office Special Agent in Charge David Nanz. “FBI Springfield would like to thank the Scott Air Force Base Explosive Ordnance Disposal Unit, the Secretary of State Police Bomb Squad, and the Marissa Police Department. This multi-agency investigation demonstrates the joint commitment of our law enforcement partners to prioritize the safety of our communities.”
Complaints and indictments are merely formal charges against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The Federal Bureau of Investigation is leading the investigation with the assistance of the Marissa Police Department, the Illinois Secretary of State Police Hazardous Devices Unit, and Scott Air Force Base Explosive Ordnance Disposal. Assistant U.S. Attorneys Kevin Burke and Liam Coonan are prosecuting the case.Springfield Man Pleads Guilty to Stealing from Bank ATMs and Jewelry StoresRead the Press Release
BOSTON – A Springfield man pleaded guilty in federal court in Boston today in connection with the theft from federal bank ATMs in December 2022 and the burglaries of two New Hampshire jewelry stores in January 2023.
Alex Oyola, a/k/a “Dirty,” 37, pleaded guilty to conspiracy transport stolen property in interstate commerce, two counts of interstate transportation of stolen property, conspiracy steal from a federally insured bank and theft from a federally insured bank. U.S. District Court Judge Patti Saris scheduled a further hearing for Oct. 19, 2023.
Oyola and six other men were arrested on April 12, 2023, and charged with offenses related to the theft, transportation and sale of stolen property during 2022 and 2023. The other six men were charged in connection with the theft of catalytic converters from over 470 vehicles in 2022 and 2023. Oyola is the second defendant to plead guilty in the case. On May 17, 2023, Jose Torres – the alleged reseller of stolen catalytic converters that were stolen by the conspirators – pleaded guilty to his role in the conspiracy and is scheduled to be sentenced on Sept. 6, 2023.
According to charging documents, it is alleged that Oyola conspired with two of his co-defendants to steal from ATMs of federally insured banks in Massachusetts on three separate occasions in December 2022. It is alleged that this conspiracy involved the use of stolen trucks that they would use to rip the ATMs from the ground and gain access to the vault containing stolen cash. Oyola is also alleged to have stolen a trailer in December 2022 and committed burglaries of two New Hampshire jewelry stores on Jan. 12, 2023 with two other co-defendants. The combined total value of the jewelry stolen during the burglaries was determined to be over $140,000, with each store facing more than $10,000 in costs to repair the resulting damage caused during the burglary.
The charge of conspiracy to transport stolen property in interstate commerce provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of interstate transportation of stolen property provides for a sentence of up to 10 years, up to three years of supervised release and a fine of up to $250,000. The charge of conspiracy to commit bank theft provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of bank theft provides for a sentence of up to 10 years, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; John E. Mawn, Interim Colonel of the Massachusetts State Police; and Kevin Gallagher, Director of Operations for the National Insurance Crime Bureau, Northeast Region made the announcement today. Valuable assistance was also provided by the United States Attorney’s Offices for the District of Connecticut, the Northern District of Oklahoma and the Eastern District of California; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms & Explosives; and the New England State Police Information Network (NESPIN). Assistant U.S. Attorney Philip A. Mallard of Levy’s Organized Crime & Gang Unit is prosecuting the case.
Over 70 local police departments in Massachusetts, New Hampshire and Connecticut contributed to this investigation through the submission of their investigations of catalytic converter thefts in their jurisdiction. The Massachusetts Police Departments contributing to the investigation were Abington, Acton, Andover, Auburn, Bedford, Bellingham, Beverly, Billerica, Burlington, Bridgewater, Canton, Carver, Chelmsford, Concord, Cranston, East Hampton, Easton, Fitchburg, Framingham, Franklin, Gardner, Hampton, Hanover, Haverhill, Hingham, Holliston, Holyoke, Hudson, Ipswich, Lawrence, Leominster, Lynn, Malden, Mansfield, Medford, Marlborough, Methuen, Middleton, Milford, Millbury, Needham, Newton, Northborough, Norwell, Norwood, Peabody, Pembroke, Plymouth, Randolph, Rockland, Sharon, Shrewsbury, Springfield, Sterling, Sturbridge, Sudbury, Tyngsborough, Walpole, Waltham, Watertown, West Bridgewater, Weymouth, Wilmington, Woburn, and Worcester. The New Hampshire Police Departments contributing to the investigation were Bow, Concord, Derry, Hooksett, Hudson, Londonderry, Manchester, Salem, Windham. The Connecticut Police Departments contributing to the investigation were South Windsor and Windsor.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Spokane Woman Sentenced to a Year in Federal for Failing to File Federal Income Tax ReturnsRead the Press Release
Spokane, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced that Rhonda Sue Ackerman, age 54 of Spokane, Washington, was sentenced after having pleaded guilty to two counts of willfully failing to file her 2015 and 2016 federal income tax returns. Senior United States District Judge Rosanna Malouf Peterson sentenced Ackerman to a 12-month term of imprisonment, to be followed by a one-year term of court supervision after she is released from federal prison. Senior Judge Peterson ordered Ackerman’s federal prison term to run consecutive to the to the twelve-month prison term imposed by the Spokane County Superior Court on January 4, 2023, following her first-degree theft conviction in State of Washington v. Rhonda Sue Ackerman (Case No. 21110632-32) for stealing $1,378,541 in public funds between 2007 and 2016, while she worked at Spokane County Department of Risk Management (“SCDRM”). Senior Judge Peterson also ordered Ackerman to pay the IRS $96,363 in restitution.
According to court documents, Ackerman abused her position as a liability claims technician at SCDRM. Between 2014 and 2016, she embezzled $440,315.25 and failed to file federal income tax returns reporting her income. Ackerman used her access to risk management software to enrich herself by creating bogus “vendor” and vendor IDs” for nominees (fake third-party claimants). Shen then created and submitted bogus claims vouchers to Spokane County, delivering the bogus vouchers to the auditor’s office for payment, picking up the vouchers and contacting the nominees to cash the checks for her at local banks. As part of the scheme, Ackerman would pay each nominee between $100 and $600 for cashing the checks and keeping the remaining funds for her own personal use and benefit. While Ackerman deposited some of the ill-gotten proceeds into her bank account, a large portion of the cash Ackerman received was spent gambling. At one local casino, Ackerman withdrew approximately $117,000.
“Ackerman willfully disregarded the tax laws and embezzled county funds for her own personal gain. Our tax system depends on the voluntary compliance of honest taxpayers. People who intentionally fail to file tax returns are subject to prosecution. The sentence imposed in this case sends a strong message: A term of imprisonment is a reality for willfully failing to file federal income tax returns,” said U.S. Attorney Waldref.
“Gamblers often tell themselves, ‘It’s only a problem if I’m losing.’ Today’s sentence is confirmation that Ms. Ackerman has indeed lost,” said Special Agent in Charge Adam Jobes, IRS Criminal Investigation (IRS:CI), Seattle Field Office. “Ms. Ackerman embezzled hard-earned taxpayer funds and gambled It away. Not satisfied with that, she chose to deliberately disregard tax laws in order to try to evade paying her fair share. This is not acceptable, and IRS:CI will continue to investigate and bring these criminals to justice.”
This case was investigated by the Internal Revenue Service, Criminal Investigation, with the assistance of the Spokane Police Department. This case is being prosecuted by George J.C. Jacobs, III, Assistant United States Attorney for the Eastern District of Washington.
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South Carolina Return Preparer Pleads Guilty to Tax FraudRead the Press Release
COLUMBIA, SOUTH CAROLINA — A Columbia, South Carolina, return preparer and regional manager of multiple tax preparation business locations pleaded guilty today to conspiracy to defraud the United States by preparing and filing false tax returns.
According to court documents and statements made in court, Georgina Gonzalez, formerly of Miami, Florida, worked as a tax return preparer since at least 2013. For the 2016 and 2017 tax filing seasons, Gonzalez temporarily relocated from Florida to South Carolina to prepare tax returns and manage multiple locations of a tax preparation business located in Columbia, South Carolina. At these offices, Gonzalez conspired with others to inflate client refunds by preparing returns that falsely claimed, among other things, business losses, household help income, and American Opportunity and education tax credits. Gonzalez and her co-conspirators charged clients up to $999 for preparing each return. In total, Gonzalez caused a tax loss to the IRS of more than $420,000.
Gonzalez is scheduled to be sentenced at a later date and faces a maximum sentence of five years in prison, as well as a period of supervised release, restitution, and other monetary penalties. U.S. District Judge Mary Geiger Lewis will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Adair F. Boroughs for the District of South Carolina made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Ashley Stein, Francesca Bartolomey, and Jessica Kraft of the Justice Department’s Tax Division and Assistant U.S. Attorney Winston Holliday of the District of South Carolina are prosecuting the case.
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San Diego Restaurant Owners Charged with COVID-Relief Fraud and Money LaunderingRead the Press Release
A federal grand jury in San Diego returned an indictment on May 19 charging a California man and woman with conspiracy to commit wire fraud, wire fraud, and money laundering.
According to the indictment, Leronce Suel and Ravae Smith owned Rockstar Dough LLC and Chicken Feed LLC, both of which operated a series of restaurants in the San Diego area. From March 2020 to June 2022 Suel and Smith allegedly conspired to underreport over $1.7 million in gross receipts on Rockstar Dough LLC’s 2020 corporate tax return (From 1120S) filed with the IRS in order to qualify for the COVID-related Paycheck Protection Program and Restaurant Revitalization Funding loans. Suel and Smith also allegedly made materially false certifications on loan applications regarding the use of the money. The indictment charges that Suel and Smith made substantial cash withdrawals from their business bank accounts to launder the fraudulently obtained funds. As part of the conspiracy, Suel and Smith allegedly concealed more than $2.4 million in cash at their residence.
Suel and Smith made their initial court appearance yesterday before U.S. Magistrate Judge William V. Gallo of the U.S. District Court for the Southern District of California. If convicted, they face a maximum penalty of 30 years in prison for wire fraud and conspiracy to commit wire fraud and 10 years in prison for money laundering. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Randy S. Grossman for the Southern District of California made the announcement.
“During an unprecedented public health emergency, the United States provided these loan programs to deliver economic relief to Americans,” said U.S. Attorney Randy Grossman for the Southern District of California. “This office will investigate and prosecute those who exploited the global pandemic to unjustly enrich themselves. We encourage anyone with information regarding individuals who have engaged in COVID-relief fraud to come forward.” Grossman thanked the prosecution team and the investigative agency for their excellent work on this case.
“The CARES act was passed to aid those in need and provide much needed relief during the Covid-19 pandemic. Unfortunately, there are individuals and organizations who took advantage and targeted these programs to steal funds,” said Special Agent in Charge Tyler Hatcher of the Los Angeles Field Office. “Submitting false returns in support of a fraudulent loan application is a crime. IRS-CI is committed to aggressively investigating these crimes and bringing those to justice who stole funds and targeted relief programs during the pandemic.”
The IRS-Criminal Investigation are investigating the case.
Trial Attorney Julia Rugg of the Justice Department’s Tax Division and Assistant U.S. Attorney Christopher Beeler of the Southern District of California are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Sacramento, California Man Sentenced for Marijuana ConspiracyRead the Press Release
United States Attorney Steven Russell announced that Julio Ayala, 33, of Sacramento, California, was sentenced today in federal court in Omaha, Nebraska, for conspiring to distribute marijuana. United States District Judge Brian C. Buescher sentenced Ayala to 18 months of imprisonment. There is no parole in the federal system. After his release from prison, Ayala will begin a two-year term of supervised release.
Ayala was part of a marijuana conspiracy which existed between October of 2018 and December of 2020. As part of the conspiracy, individuals shipped marijuana from California to Omaha. Ayala was involved in the distribution of the marijuana in Omaha. On December 18, 2020, agents executed a search warrant at co-conspirator Marques Eiland’s residence and located approximately 22.5 pounds of marijuana. Ayala, Eiland, and co-conspirators Aarion Jenkins and Shawn Thomas were all present. Each of the conspirators have pleaded guilty. On May 3, 2023, Jenkins was sentenced to 40 months of imprisonment. This was in addition to 11 months he already served on related state and federal cases. On May 3, 2023, Eiland was sentenced to 31 months of imprisonment. Thomas is pending sentencing.
This case was investigated by the Federal Bureau of Investigation, the Omaha Police Department, the Bellevue Police Department, and the Sacramento California County Sheriff’s Department.
Rowlett Man Who Stalked, Murdered Ex-Girlfriend Sentenced to 43 Years in PrisonRead the Press Release
A Rowlett man who cyberstalked his ex-girlfriend and shot and stabbed her to death in the midst of a bitter custody dispute was sentenced today to 43 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Andrew Charles Beard, 36, was charged in October 2020. He pleaded guilty to cyberstalking using a dangerous weapon resulting in death and discharging a firearm during a crime of violence in June 2022 and was sentenced on Wednesday by U.S. District Judge Jane J. Boyle.
“This case is a sobering reminder of the brutal violence some women endure at the hands of their intimate partners. The victim in this case fought valiantly until the end. We hope today’s sentence brings a measure of peace to her family,” said U.S. Attorney Leigha Simonton.
In plea papers, Mr. Beard admitted that he cyberstalked and murdered his ex-girlfriend, 24-year-old Alyssa Ann Burkett, in a parking lot in Carrollton on Oct. 2, 2020, in an attempt to gain custody of their young daughter. He admitted that he placed a GPS tracking device on Ms. Burkett’s car, entered a black SUV he had purchased for the occasion, followed her to the apartment complex where she worked, and donned a disguise. He then exited his vehicle with a shotgun and shot Ms. Burkett in the head as she sat behind the wheel of her car. Believing that he had fatally shot her, Mr. Beard ran back to the SUV to drive away.
However, Ms. Burkett—severely injured and bloodied from the shotgun blast—staggered out of her car and attempted to enter a nearby building for help. Realizing that his ex-girlfriend was still alive, Mr. Beard exited the SUV, ran up to her, grabbed her from behind, and stabbed her 13 times through the upper body with a sharp object. She died in the parking lot as he raced away from the scene.
Ms. Burkett’s mother and coworkers told responding officers that Ms. Burkett feared Mr. Beard, believed he was tracking her, and worried he would kill her. Her boyfriend told police that Mr. Beard had seemed “overly obsessed” with Ms. Burkett and their child.
Three hours later, officers stopped Mr. Beard as he drove away from his residence in a white pickup truck. They seized three phones from Mr. Beard, including a prepaid burner phone. On one phone, they found an internet search for “what is the best way to remove gunpowder residue from hands.”
Officers also searched his vehicle, where they found a pair of men’s hiking boots cut into pieces and soaking in bleach, and they searched his residence, where they found a battery that matched the GPS trackers affixed to Ms. Burkett’s vehicle. They also found a written script Mr. Beard had used to phone in a false drug tip against Ms. Burkett a month earlier.
In plea papers, Mr. Beard admitted that he called in the fake tip on September 2, 2020, after planting drugs and a gun in her car. Identifying himself as “Frank Marrow,” he claimed Ms. Burkett was selling drugs out of the trunk of her car and advised police to check the spare tire well. Officers searched the tire well and found illegal drugs and a pistol with an obliterated serial number. Ms. Burkett vehemently denied selling drugs and stated that she believed Mr. Beard had planted the evidence in her vehicle.
The day after the murder, officers found the black SUV Mr. Beard had driven to and from the murder scene abandoned in a residential neighborhood near Mr. Beard’s home. Dried blood recovered from the vehicle contained DNA that matched Ms. Burkett. A fake beard recovered from the vehicle contained DNA that matched Mr. Beard.
The Carrollton Police Department, the Federal Bureau of Investigation’s Dallas Field Office, and the Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Office conducted the investigation. Assistant U.S. Attorneys Gary Tromblay, Camille Sparks, and Andrew Briggs are prosecuting the case.
Reality Show Cast Member Pleads Guilty to 15 Felonies, Admits Multiple FraudsRead the Press Release
ST. LOUIS – A reality show cast member and St. Louis, Missouri area radio personality on Wednesday pleaded guilty to 15 federal felonies and admitted committing tax fraud, bank fraud, insurance fraud and three separate pandemic fraud schemes.
Brittish “Cierrah” Williams, 33, pleaded guilty in front of U.S. District Judge Henry E. Autrey to five counts of misuse of a Social Security number, four counts of bank fraud, three counts of making false statements to the IRS and three counts of wire fraud.
“British Williams has admitted an unusually large number of frauds that victimized taxpayers, banks, credit card companies, individuals and programs that were intended to help struggling businesses and employees during the COVID-19 pandemic,” said U.S. Attorney Sayler A. Fleming.” This is a first step towards justice for those victims. We will also be seeking repayment of all of her ill-gotten gains.”
Williams admitted under-reporting her income on tax returns for 2017-2019 and falsely claiming a niece and nephew as dependents, thereby avoiding $29,366 in tax owed.
Williams fraudulently used Social Security numbers not assigned to her to open accounts with credit card companies and banks, which resulted in losses of $28,537 to those creditors when she failed to pay them back.
Williams also used those Social Security numbers to open bank accounts, then deposited thousands of dollars’ worth of checks taken from other peoples’ accounts without their knowledge and withdrew the money, causing another $23,850 in losses.
In addition, included in Williams’ guilty plea as relevant conduct are three pandemic frauds and one insurance fraud. Williams admitted submitting nine applications for Economic Injury Disaster Loans, intended to help struggling business, four applications for the Paycheck Protection Program, which was intended to save jobs, and one application to a rent relief program in California.
Williams’ disaster loan applications contained false information about business income and payroll, as well as her criminal history. She used the $144,400 in loans that resulted from two of the applications to fund her personal lifestyle, her plea agreement says.
Williams also received $52,647 in PPP loans.
On Jan. 3, 2022, Williams applied for the California COVID-19 Rent Relief program, falsely claiming that she was a California resident with a total annual household income of $50,000 and that she couldn’t pay her rent due to a “Reduction in hours of work” due to the pandemic, her plea agreement says. She had stopped paying rent in July of 2021. She received $27,801.
Williams’ $3,803 rent was more than reimbursed by a $4,000 payment from the network that produces “Basketball Wives LA,” and her work hours and pay were not reduced by the pandemic, Williams admitted in her plea.
Williams also submitted fake medical bills to at least one insurance company, resulting in $139,479.92 paid to her, co-conspirators or both.
Finally, Williams has not filed annual tax returns since her indictment in October of 2021, and listed herself as “exempt” on a form with her current employer resulting in no taxes being withheld from her $90,000 salary, her plea says.
The total known actual and intended losses from all the frauds and schemes, including the relevant conduct, is $446,082, her plea says.
Williams is scheduled to be sentenced August 23. The charges of misusing a Social Security number and making false statements each carry a potential penalty of up to five years in prison and a $250,000 fine. The bank fraud charges carry penalties of up to 30 years in prison, a $1 million fine or both. The wire fraud charges carry a penalty of up to 20 years in prison and a $1 million fine.
This case was investigated by the Internal Revenue Service, the Social Security Administration and the FBI. Special Assistant United States Attorney Diane Klocke is handling the case for the Eastern District of Missouri.
Raeford Man Charged with Illegal Possession of FirearmsRead the Press Release
GREENSBORO, NC – Sandra J. Hairston, United States Attorney for the Middle District of North Carolina, announced today that AARON DEON GOODE, JR. of Raeford, age 25, has been charged in federal court with two counts of being a felon in possession of a firearm.
The Indictment alleges that GOODE, having been previously convicted of a felony, did possess firearms, in violation Title 18 United Sates Code Sections 922(g)(1) and 924(a)(2). The charges stem from two separate incidents in August 2019 and October 2021 in Hoke County. If convicted, the defendant faces a maximum term of 10 years of imprisonment, a term of supervised release of not more than 3 years, a fine not to exceed $250,000, and a mandatory special assessment of $100. Forfeiture allegations included in the Indictment also require GOODE to forfeit both firearms. An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty.
“Recovering firearms from the hands of prohibited individuals is a critical step in fighting violent crime,” said ATF Special Agent in Charge Bennie Mims. “The illegal possession of firearms is a serious threat to the community, and recovering these firearms helps make our streets safer.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Hoke County Sheriff’s Office, and the Raeford Police Department. The case is being prosecuted by Special Assistant United States Attorney Mary Ann Courtney.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Prolific mail thief who allegedly stole postal vehicles and postal keys arrested on federal chargesRead the Press Release
Seattle – The suspect in a series of mail vehicle and mail key thefts was arrested today on a federal complaint charging him with theft of mail and possession of stolen mail, announced U.S. Attorney Nick Brown. Johny Mixayboua, 27, is accused of a string of mail theft incidents involving stolen postal vehicles, stolen postal keys, mail theft, and associated crimes such as identity theft. Mixayboua will appear in U.S. District Court in Seattle at 2:00 today.
According to the criminal complaint, on December 28, 2022, a U.S. Postal Service vehicle was stolen from the 6300 block of South Bangor Street in Seattle. In the vehicle was a postal key that is used to access the cluster mailbox units in the 98178 zip code. The key allows the postal worker to open the back of the cluster box to deliver mail to multiple households. Since the theft of the vehicle and postal key, there have been numerous reports of cluster boxes in zip code 98178 being opened and mail stolen.
Working with neighbors, the Postal Inspection Service was able to get door camera footage showing the person accessing the postal boxes. Neighbors reported credit cards being stolen and attempts being made to use them. Inspectors were able to review images from when the credit card attempts occurred and ultimately identified Mixayboua as the person stealing the mail and attempting to use the stolen credit cards.
Additionally, local law enforcement determined that vehicles used in a number of the mail theft incidents were reported stolen.
On January 17, 2023, two more Postal Service vehicles were stolen. One in the 3000 block of Beach Drive SW and a second one in the 3600 block of 57th SW. Both are in zip code 98116. Using doorbell camera footage from the block
where one of the vehicles were recovered, investigators allegedly saw Mixayboua removing mail and parcels from the stolen postal vehicle and putting them in another vehicle. Again, law enforcement traced credit cards stolen from the mail and obtained surveillance footage that appears to show Mixayboua attempting to make purchases with the credit cards.
On January 30, 2023, a fourth postal vehicle was stolen – this time from the 2000 block of S. Columbian Way in Seattle. On March 28, 2023, a fifth postal vehicle was stolen from the 5700 block of S. 129th Ave. One of the people associated with the theft matches a description of Mixayboua.
In late January and February, the mail theft incidents continued -- this time in the Snoqualmie, Washington area. The cluster boxes were opened with either a counterfeit or authentic postal key. Again, credit cards were stolen, and one was linked to images of Mixayboua making purchases at Target.
Throughout April, mail thefts continued from as far north as Lake Forest Park and as far south as southeast Seattle.
The postal service halted deliveries in zip code 98118 for about a week while investigators worked to track down and arrest Mixayboua.
The U.S. Postal Inspection Service (USPIS) has worked diligently to get Mixayboua and his coconspirators into custody.
The case is being prosecuted by Assistant United States Attorney Elyne Vaught.
Penobscot Man Faces up to 40 Years, $5M fine for Fentanyl TraffickingRead the Press Release
BANGOR, Maine: A Penobscot man pleaded guilty today in U.S. District Court in Bangor to possessing fentanyl with the intent to distribute.
According to court records, in October 2021, Christopher Beaucage, 38, along with a co-conspirator, were stopped by a Bucksport police officer. After a search of the vehicle revealed approximately 60 grams of fentanyl, Beaucage admitted the fentanyl belonged to him and was arrested on outstanding warrants. While he was incarcerated, monitored and recorded phone calls revealed that Beaucage and others engaged in drug trafficking activities. Details discussed included traveling out of state to meet with a source, the prices of the narcotics and customers in Maine.
Beaucage faces up to 40 years in prison and a $5 million fine. He will be sentenced after the completion of a presentence investigative report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Drug Enforcement Administration, Maine Drug Enforcement Agency and Bucksport Police Department investigated the case.
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Pennsylvania Man Sentenced for Assaulting Officers During Jan. 6 Capitol BreachRead the Press Release
WASHINGTON – A Pennsylvania man was sentenced today in the District of Columbia for assaulting law enforcement officers and other charges for his actions on Jan. 6, 2021. His actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the presidential election.
Robert Morss, (29), of Glenshaw, Pennsylvania, was sentenced to 66 months in prison for assaulting, resisting, or impeding officers with a dangerous weapon, obstruction of an official proceeding, and robbery. Morss was convicted on August 23, 2022, following a stipulated trial before U.S. District Court Judge Trevor N. McFadden, who also ordered 24 months of supervised release and restitution of $2000.
Morss was charged along with 8 other co-defendants. Six of the codefendants, including Morss, have now been sentenced for their roles in the riot, while three codefendants are scheduled for trial later in 2023.
According to court documents, on Jan. 6, 2021, all of the codefendants illegally entered the Capitol grounds. They joined in the violence that occurred in the tunnel area of the Capitol’s Lower West Terrace. From approximately 2:40 p.m., law enforcement officers maintained a line at the second set of glass doors inside the tunnel leading from the inaugural platform to the entrance to the Capitol. These officers fought a group of rioters – including the defendants - inside the tunnel, protecting the doors, until approximately 3:19 p.m. when they cleared them from the tunnel. Clashes continued throughout the afternoon.
Morss joined the crowd gathering on the West Front of the Capitol grounds at approximately 2 p.m. He was wearing a vest with body armor plates and had a black knife sheath and scissors. Morss moved to the front of the line of rioters squaring off with law enforcement officers. He then attempted to steal a police-issued baton from an officer with the Metropolitan Police Department (MPD). He also removed a bike rack fence from the immediate control of an MPD sergeant, leaving no barrier between the police officers and rioters. He yelled out to several officers, “Take a look around. We are going to take our Capitol back.”
Morss then joined a line of rioters that pushed officers back and followed them up to the Lower West Terrace. At approximately 3:03 p.m., he participated in a heave-ho motion in which the rioters rocked against the police line. He wrested a riot shield from an MPD detective and passed it back in the tunnel, towards other rioters. He and others then created a wall of shields that they used to continue with the heave-ho efforts. Morss later joined several other rioters in climbing through a broken window. Morss entered an office within the Capitol, took a chair, and passed it out of the broken window to the rioters outside.
Morss was arrested on June 11, 2021.
This case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section. Valuable assistance was provided by the U.S. Attorney’s Offices for the Western District of Pennsylvania, the Eastern District of Texas, and the Eastern District of Virginia.
The cases were investigated by the FBI’s Washington, Pittsburgh, and Dallas Field Offices. Morss was identified as #147 on the FBI Washington Field Office’s seeking information photos. Valuable assistance was provided by the FBI’s Richmond Field Office, the Metropolitan Police Department and the U.S. Capitol Police.
In the 28 months since Jan. 6, 2021, more than 1,000 individuals have been arrested in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 320 individuals charged with assaulting or impeding law enforcement. The investigation remains ongoing.
Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.
Par Funding Principals Charged with Securities Fraud, Extortion, Tax Crimes, Perjury, and ObstructionRead the Press Release
PHILADELPHIA – An indictment was unsealed today charging Complete Business Solutions Group, Inc., doing business as Par Funding, and four of its principals with various crimes, including securities fraud, extortionate collection of credit, tax crimes, perjury, obstruction of justice, witness retaliation, and witness tampering, announced United States Attorney Jacqueline C. Romero. These principals are Joseph LaForte, 52: Lisa McElhone, 43; Joseph Cole Barleta (“Joe Cole”), 39; and James LaForte, 46.
According to the indictment, from at least 2016 through July 2020, co-conspirators Joseph LaForte, Joe Cole, James LaForte, and others participated in a conspiracy to commit wire fraud and securities fraud in connection with funds that were raised from investors in Par Funding and its affiliates. Par Funding and these affiliates provided funding to businesses through short-term financing transactions, referred to as merchant cash advances (“MCAs”). To fund these MCAs, the defendants raised over $500 million from investors.
It is alleged that as part of their fundraising efforts, these defendants and their conspirators caused false and misleading information to be conveyed to investors regarding various issues, including:
- Joseph LaForte’s true name, his role at Par Funding, and his criminal history;
- Par Funding’s underwriting process;
- the diversity of the company’s MCA portfolio;
- Par Funding’s default rate;
- Par Funding’s financial success and profitability;
- the company’s insurance; and
- the defendants’ self-dealing.
For instance, the indictment alleges that although Joseph LaForte operated Par Funding and referred to it as his business, he concealed this ownership and control by using his wife, Lisa McElhone, as his nominee. Joseph LaForte also used several aliases, such as “Joe Mack,” while working at the company. It is alleged that Joseph LaForte, Joe Cole, James LaForte, and their conspirators engaged in this deception to conceal Joseph LaForte’s true role as the person operating the company and his significant criminal history from investors.
The indictment also alleges that Joseph LaForte and James LaForte conspired with an individual named Renato “Gino” Gioe to participate in the extortionate collection of credit. It is alleged that during the course of Par Funding’s operations, these individuals made hostile, threatening, and intimidating communications to Par Funding’s customers in person and over the telephone in order to collect on delinquent MCAs. For example, the indictment alleges that Joseph LaForte threatened to “blow up” a delinquent customer’s home in May 2019 and asked another delinquent customer in August 2019 whether the customer had heard of “cement shoes.” In addition, the indictment alleges that in May 2018, James LaForte told one customer that he was a “soldier for the family” who had torched people’s cars and kicked people’s teeth in.
Furthermore, the indictment alleges that Joseph LaForte and Lisa McElhone committed a variety of tax crimes. For instance, it is alleged that the married couple defrauded the Commonwealth of Pennsylvania out of approximately $1.2 million of state taxes by falsely claiming to be residents of Florida, even though they worked, lived, and spent more than 300 days per year in Pennsylvania. Furthermore, the indictment alleges that Joseph LaForte and Lisa McElhone worked together to evade the payment of half a million dollars of employment taxes that had been imposed on Joseph LaForte in connection with companies that he had operated in the mid-2000s. In addition, it is alleged that Joseph LaForte committed tax crimes by failing to report millions of dollars in cash kickbacks that he personally received from a Par Funding customer, and by regularly paying cash wages to Par Funding employees but not withholding taxes from these wages or reporting them to the IRS.
It is further alleged that Joseph LaForte and Joe Cole each committed perjury twice during depositions in federal lawsuits against Par Funding, making misrepresentations regarding various matters. For instance, the indictment alleges that Joseph LaForte lied under oath about his knowledge of his wife’s role at Par Funding, Joe Cole’s role at the company, and the company’s default rate. The indictment alleges that Joe Cole lied under oath about who was on Par Funding’s credit committee (which Joseph LaForte ran) and who ran Par Funding.
Finally, the indictment alleges that Joseph LaForte and James LaForte engaged in obstruction of justice, witness tampering, and retaliation. Specifically, it is alleged that in late February 2023, on the streets of Center City Philadelphia, James LaForte, with the assistance of and in coordination with Joseph LaForte, physically assaulted counsel for the Receiver for Par Funding in a lawsuit brought by the U.S. Securities and Exchange Commission in the Southern District of Florida. Moreover, in connection with the same lawsuit, the indictment alleges that Joseph LaForte threatened to cause serious bodily injury to another individual in November 2022. Lastly, it is alleged that James LaForte made threats of violence to multiple parties in early 2023 in an effort to interfere with the SEC lawsuit, a federal grand jury investigation, and an anticipated federal prosecution, as well as to retaliate against these parties.
If convicted of all counts charged against them, the defendants face the following maximum possible sentences of imprisonment: Joseph LaForte – 796 years; McElhone – 70 years; Cole– 415 years; and James LaForte – 615 years. The defendants also face full restitution, a fine, and a period of supervised release and/or probation.
The case was investigated by the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigations, the Federal Deposit Insurance Corporation-Office of Inspector General, and Pennsylvania State Police and is being prosecuted by Assistant United States Attorneys Patrick J. Murray, Matthew Newcomer, and Alexandra Lastowski. The SEC in Florida investigated and litigated the civil securities fraud charges which formed the basis of a portion of the criminal prosecution.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Owners of San Diego Restaurants Charged with COVID-Relief Fraud and Money LaunderingRead the Press Release
NEWS RELEASE SUMMARY — May 23, 2023
SAN DIEGO—A federal grand jury has returned an indictment charging San Diego restaurant owners with fraud and money laundering in connection with an alleged scheme to falsify applications for pandemic relief funds.
According to the indictment, Leronce Suel and Ravae Smith owned Rockstar Dough LLC and Chicken Feed LLC, both of which operated a series of restaurants in the San Diego area. From March 2020 to June 2022, Suel and Smith allegedly conspired to underreport over $1.7 million in gross receipts on Rockstar Dough LLC’s 2020 corporate tax return (Form 1120S) filed with the IRS in order to qualify for the COVID-related Paycheck Protection Program and Restaurant Revitalization Funding loans.
Suel and Smith also allegedly made materially false certifications on loan applications regarding the use of the money. The indictment charges that Suel and Smith made substantial cash withdrawals from their business bank accounts to launder the fraudulently obtained funds. As part of the conspiracy, Suel and Smith allegedly concealed more than $2.4 million in cash at their residence.
Suel and Smith made their initial court appearance today before U.S. Magistrate Judge William V. Gallo.
“During an unprecedented public health emergency, the United States provided these loan programs to deliver economic relief to Americans,” said U.S. Attorney Randy Grossman. “This office will investigate and prosecute those who exploited the global pandemic to unjustly enrich themselves.” Grossman thanked the prosecution team and the IRS for their excellent work on this case.
“The CARES Act was passed to aid those in need and provide much needed relief during the Covid-19 pandemic,” said Special Agent in Charge Tyler Hatcher of the Los Angeles Field Office. “Unfortunately, there are individuals and organizations who took advantage and targeted these programs to steal funds. Submitting false returns in support of a fraudulent loan application is a crime. IRS-CI is committed to aggressively investigating these crimes and bringing those to justice who stole funds and targeted relief programs during the pandemic.”
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020 and is designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
Anyone with general information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The case is being prosecuted by Assistant U. S. Attorney Christopher Beeler and Trial Attorney Julia M. Rugg from the Department of Justice’s Tax Division.
DEFENDANT Case Number 23-CR-0965-RBM
Leronce Suel San Diego Age: 46
RaVae Smith San Diego Age: 45
SUMMARY OF CHARGES
Conspiracy to Commit Wire Fraud—Title 18, U.S.C., Section 1349
Maximum penalty: Thirty years in prison, $1 million fine; forfeiture and restitution
Wire Fraud—Title 18, U.S.C., Section 1343
Maximum penalty: Thirty years in prison, $1 million fine; forfeiture and restitution
Money Laundering—Title 18, U.S.C. Section 1957
Maximum penalty: Ten years in prison, $1 million fine; forfeiture and restitution
AGENCY
IRS Criminal Investigation
*The charges and allegations contained in an indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Owner of Two California Construction Firms Sentenced to Prison for Employment Tax CrimesRead the Press Release
A California man was sentenced yesterday to 12 months in prison for willfully failing to account for and pay over employment taxes.
According to court documents and statements made in court, Larry Kudsk of Berkeley, California, operated two construction businesses, Kudsk Construction, Inc., and M. Gutierrez, Inc. These companies served as general contractors or subcontractors, including on some government projects. For both companies, Kudsk was responsible for filing quarterly employment tax returns and collecting and paying over to the IRS payroll taxes withheld from employees’ wages. Kudsk, however, did not timely file employment tax returns or pay over withholdings to the IRS for 2014 and the last three quarters of 2015 for M. Gutierrez, Inc., and for all four quarters of 2016 for Kudsk Construction, Inc. In total, Kudsk caused a tax loss to the IRS exceeding $250,000.
In addition to the term of imprisonment, U.S. District Judge Jeffrey S. White ordered Kudsk to serve three years of supervised release and to pay approximately $244,973 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 Ismail J. Ramsey for the Northern District of California made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorneys Julia M. Rugg and Charles A. O’Reilly of the Tax Division and Assistant U.S. Attorney Katherine Lloyd-Lovett of the Northern District of California prosecuted the case.
Orlando Man Arrested for Possessing A Firearm as A Convicted FelonRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces the arrest of Eddie Lee Parks, III (24, Orlando) on a one-count indictment charging him with possession of a firearm by a convicted felon. If convicted, he is faces a maximum of 15 years in federal prison.
According to the indictment, on April 10, 2023, Parks was in possession of a handgun. He had previously been convicted of three felonies, including two counts of aggravated assault with a deadly weapon (2019) and possession of a controlled substance (2019). As a convicted felon, Parks is prohibited from possessing firearms or ammunition under federal law.
An indictment is merely an allegation that a defendant has committed a federal criminal offense. Every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the Leesburg Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Hannah Nowalk.
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.
One Detroit Partnership Announces a Unified Summer Enforcement, Prevention, and Reentry Strategy Targeting Designated High Crime Areas in DetroitRead the Press Release
DETROIT – Today, United States Attorney Dawn N. Ison, along with Detroit Mayor Mike Duggan, Wayne County Prosecuting Attorney Kym Worthy, and Detroit Police Chief James E. White, announced a targeted strategy aimed at reducing gun violence in Detroit’s neighborhoods with the highest incidence of violent crime – Detroit’s 8th and 9th Precincts. The strategy has three components—enforcement, prevention, and reentry—and is a part of the One Detroit partnership announced last month. One Detroit is a coalition of community and law enforcement partners working together to develop and execute the best strategies to reduce violent crime.
Joining in the announcement were Special Agent in Charge James A. Tarasca, Federal Bureau of Investigation, Detroit Division, Special Agent in Charge James Dier, Bureau of Alcohol, Tobacco, Firearms and Explosives, Special Agent in Charge Orville Greene, Drug Enforcement Administration, Detroit Division, Beverly Smith, Assistant Deputy Director, Operations Office, Michigan Department of Corrections, Bishop Edgar Vann, II, Second Ebenezer Church, Alvin Stokes, President, Citywide Citizens Police Community Relations and Kenyatta Stephens, CEO Black Family Development.
As temperatures rise, so too does violent crime. With summer approaching, the One Detroit Partnership has launched an effort to strategically focus resources on the most dangerous neighborhoods of the city. These neighborhoods in the 8th and 9th Precincts are among the highest in the city in fatal and non-fatal shootings, robberies, and carjackings in 2023.
One part of the effort is an enforcement strategy designed to prosecute the most violent individuals and crimes in federal court when that is possible. Under the strategy, violent felons arrested for illegally possessing firearms and those arrested with fully automatic firearms and firearms with obliterated serial numbers in select areas of Detroit’s 8th and 9th Precincts will be subject to immediate federal prosecution. In addition, any individual who commits an armed carjacking or robbery of a business in the targeted areas will be prosecuted federally. Finally, any individual with a meaningful connection to the targeted areas, who commits this type of crime elsewhere in the city, will be prosecuted federally. The “hot spot” strategy for federal enforcement will begin on Memorial Day and will last until Labor Day in September.
The One Detroit partnership is also engaged in preventing crime in the targeted areas. In an effort to deter violence and illegal gun possession, last week, letters were sent to 200 individuals on probation, parole, or supervised release in the targeted areas, warning them of the enforcement strategy. But the letter—which was signed by the entire executive team of One Detroit—did more than warn. The letter asked the recipient to be a part of the solution and to help make their neighborhood a safer place. And it invited the recipient to participate in a Peacenic in their neighborhood. Peacenics are community events where residents can come for fun, engage with law enforcement, and obtain resources to improve the quality of their lives. This year’s Peacenics will take place on Saturday, July 8, at O’Hair Park, and Saturday, July 15, at Heilmann Park from 3 PM to 7 PM. The events will feature vendors offering a variety of resources, including job training, literacy programs, mental health and medical screenings, utility assistance, educational and vocational opportunities, tutorial, career development programs, and more. Several law enforcement agencies will also be present to engage with the community and recruit to fill vacancies in their organizations.
Finally, the One Detroit partners also intend to invite returning citizens who live in the “hot spot” areas to meet with service providers to help them directly address any barriers that are preventing them from fully reintegrating in society.
As part of our unified strategy, and to spread the word about the One Detroit partnership, billboards will be strategically placed in areas of the 8th and 9th Precincts which encourage residents to join the partnership by taking a pledge to put down the guns and be an agent of change in their community. The pledge can be found by going to the U.S. Attorney’s Office web page at www.justice.gov/usao-edmi/one-detroit-peace-pledge. The web page will be a resource residents can go to learn of upcoming events related to One Detroit.
“Our summer enforcement strategy will target the most dangerous areas of Detroit,” said U.S. Attorney Ison. “We will federally prosecute carjackings, robberies, and gun crimes in these areas. At the same time, we will reach out and engage with the community to prevent crime from occurring in the first place. We will not stop until the people of Detroit and those who visit Detroit feel safe to go about their business on its streets.”
“We know that the summer months bring a lot of great activities to our city, but also can bring a higher rate of violent crime,” said Mayor Duggan. To help make sure we all have a safe summer, DPD will be focusing on the 8th and 9th precinct where we typically see the largest spike in gun related crime. I'm grateful for the leadership and support of our US Attorney Dawn Ison and Chief White, as well as our many local, state, and federal law enforcement and community partners.”
“We know that violent crime usually increases in the warm weather months. One Detroit will do everything possible to combat this problem, but we can’t do it alone. To do better we all collectively have to be better,” said Wayne County Prosecutor Kym Worthy.
“The Detroit Police Department and One Detroit partners will strategically deploy our resources to these neighborhoods most impacted by violent crime in order for residents to have a safer summer,” said Chief James E. White. “Together, we will work to continue fighting violent crime to secure a better quality of life for our residents, visitors, and officers.”
Omaha Man Sentenced to 45 Years in Prison for Sex Trafficking a MinorRead the Press Release
United States Attorney Steven Russell announced that Dalonte Foard, 25, of Omaha, Nebraska, was sentenced today in federal court in Omaha for conspiracy to sex traffic a minor and sex trafficking of a minor. United States District Judge Brian C. Buescher sentenced Foard to 540 months’ imprisonment. There is no parole in the federal prison system. After his release from prison, Foard will be on supervised release for life and will be required to register as a sex offender.
In January, Foard was found guilty after a four-day jury trial. The evidence at trial showed that in September 2020 two Omaha foster children went missing from their foster home. Foard had picked up the two girls, aged 16 and 17, and driven them to a hotel where co-defendant Thomas Holbert posted online advertisements promoting the minors for commercial sex acts. The following morning, Foard sexually assaulted one of the minors to “break her in” and then posted a new online commercial sex advertisement for her. A man responding to Foard’s ad came to the hotel and Foard waited on the stairs in the hallway while the man paid $60 to engage in a sex act with the victim. After the man left, Foard took $50 of the $60 paid to the victim.
A spokesperson for the Omaha Police Department (OPD) said that OPD is pleased to see such a strong sentence for sex trafficking. OPD and its federal partners will continue to work together to pursue traffickers and bring them to justice.
“It is our hope that today’s sentencing will send a strong message to all of those who want to line their pockets through the sexual exploitation of children,” said acting Special Agent in Charge of Homeland Security Investigations (HSI) in Kansas City Shawn Gibson. “These individuals and their associated criminal organizations have been put on notice. We, alongside our partners at the Omaha Police Department, are doing everything possible to disrupt and dismantle the greedy criminal networks you’ve established, and will continue protect the children in our community from harm.”
“Swift prosecution and lengthy prison terms for persons engaged in sex trafficking is a high priority of law enforcement and the United States Attorney’s Office,” Russell said. “The successful prosecution in this case is a direct result of the excellent collaboration between federal, state, and local law enforcement determined to protect the citizens of Nebraska. The United States Attorney’s Office applauds the efforts of Homeland Security Investigations, the Omaha Police Department, and the Nebraska Attorney General’s Office in bringing this group to justice.”
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.
This case was investigated by Homeland Security Investigations, the Omaha Police Department, and the Nebraska Attorney General’s Office.
Northern Kentucky Man Sentenced to 420 Months for Armed Methamphetamine and Cocaine Trafficking and Illegal Firearm PossessionRead the Press Release
COVINGTON, Ky. – An Alabama man, residing in Ludlow, Ky., Terrill Goods, 45, was sentenced to 420 months in federal prison on Wednesday, by U.S. District Judge David Bunning, for his role in a conspiracy to distribute methamphetamine and cocaine, as well as for possession of a firearm by a convicted felon and possession of a firearm in furtherance of drug trafficking.
In December 2022, a federal jury in Covington found Goods guilty of all charges against him, following a five-day trial. Goods’ co-defendant, Deon Coulter, 38, of Northern Kentucky had previously pled guilty, and was sentenced to 248 months in federal prison, for the same conspiracy, as well as for possession of fentanyl with the intent to distribute and possession of a firearm in furtherance of drug trafficking.
According to evidence presented at trial, between October 2021 and January 2022, Goods and Coulter conspired to distribute large quantities of methamphetamine, as well as cocaine, in the Eastern District of Kentucky. Law enforcement made multiple controlled buys of methamphetamine, as well as one controlled buy of cocaine, from Goods and Coulter. They also seized approximately 2000 pills containing fentanyl and multiple firearms during execution of search warrants on Goods’ and Coulter’s respective residences.
Under federal law, Goods and Coulter must serve 85 percent of their respective prison sentences. Upon their release from prison, they will each be under the supervision of the U.S. Probation Office for 10 years.
Carlton S. Shier IV, United States Attorney for the Eastern District of Kentucky; Orville O. Greene, Special Agent in Charge, DEA Detroit Field Division, and Director Scott Hardcorn, Northern Kentucky Drug Strike Force, jointly announced the sentences.
The investigation was conducted by the DEA and the Northern Kentucky Drug Strike Force. The United States was represented by Assistant U.S. Attorneys Andrew A. Spievack and Elaine K. Leonhard.
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New York Woman Charged with Making Threatening Calls to Denver-Area LGBTQ BusinessesRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Sharon Robinson, age 40, of New York, has been arrested and charged by indictment with making multiple threatening calls to LGBTQ businesses in Denver and Glendale.
According to allegations in the indictment, the defendant called at least four businesses catering to the LGBTQ community just a few weeks after the tragic shooting at Club Q in Colorado Springs. The defendant made various threatening comments in each of the calls, including threats to “shoot your bar up” and “you’re gonna be shot up like Club Q.” The threats also included anti-LGBTQ slurs. The Grand Jury made a special finding that the defendant intentionally selected her victims because of their actual and perceived sexual orientation. The United States Sentencing Guidelines recommend higher sentences for such crimes.
The defendant was scheduled to make her initial appearance in Brooklyn, New York, on May 24, 2023.
This case is being investigated by the Federal Bureau of Investigation, the Denver Police Department, and the Glendale Police Department. Assistant United States Attorney Bryan Fields is handling the prosecution.
The charges in the indictment are allegations and the Defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
CASE NUMBER: 23-cr-274New York Man Sentenced to 2 Years for Firearm ChargeRead the Press Release
BANGOR, Maine: A New York man was sentenced today in U.S. District Court in Bangor for being a felon in possession of a firearm.
U.S. District Judge Lance E. Walker sentenced Camby Wilson, 22, to 24 months in prison followed by three years of supervised release.
According to court records, in March 2022, an officer with the Augusta Police Department stopped a vehicle in which Wilson was a passenger. Wilson provided officers with a false name and date of birth, and officers asked him to step out of the vehicle. When an officer asked him if he had any weapons on him, he ran away from the officers. They chased him on foot and were able to apprehend him after a brief pursuit. Officers found a loaded .380 caliber pistol in his jacket pocket. A 2019 conviction in New York precluded him from possessing a firearm.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Augusta Police Department investigated the case.
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New Orleans Man Sentenced for Federal Carjacking and Firearm ChargesRead the Press Release
NEW ORLEANS, LOUISIANA – MARIO COUSAN, age 25, a resident of New Orleans, Louisiana, was sentenced on May 18, 2023, to 147 months imprisonment by Chief U.S. District Judge Nannette Jolivette Brown, after pleading guilty to carjacking and brandishing a firearm during and in relation to a crime of violence, announced U.S. Attorney Duane A. Evans.
According to court documents, on January 10, 2022, COUSAN, armed with a Glock, nine millimeter pistol, carjacked a victim as they exited the Dollar Tree on Morrison Road in New Orleans. As to the carjacking charge, the Court sentenced COUSAN to a sixty-three (63) month term of imprisonment and ordered him to pay restitution in the amount of $11,200.00. For brandishing a firearm during and in relation to a crime of violence, the Court sentenced COUSAN to an eighty-four (84) month term of imprisonment, to be served consecutively. Additionally, COUSAN will serve a three (3) year term of supervised release and pay a $200 mandatory special assessment fee.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, and Firearms and the New Orleans Police Department. Assistant United States Attorney Greg Kennedy of the Violent Crimes Unit handled the prosecution.
New Jersey Prison Corrections Officer Sentenced for Civil Rights Violation After Facilitating Assaults on InmatesRead the Press Release
A corrections officer at Bayside State Prison in Leesburg, New Jersey, was sentenced to 30 months in prison followed by three years of supervised release and required to pay a $10,000 fine for agreeing with others to physically assault inmates for actual, perceived and fabricated violations of the prison’s rules and customs in a manner that resulted in injury to the inmates.
John Makos, 42, of Millville, New Jersey, previously pleaded guilty before U.S. District Judge Karen M. Williams to conspiring with others to deprive inmates of their right not to be subjected to cruel and unusual punishment.
“This jail official was complicit in a series of violent assaults on inmates, turning a blind eye as the assaults were carried out as punishment for alleged violations of prison rules,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This sentencing demonstrates that correctional officers who abuse their authority and violate the civil rights of inmates under their custody and control will be held accountable for their actions. The Justice Department is committed to protecting the civil rights of all people, including those held inside our jails and prisons.”
“Corrections officers are responsible for protecting the civil rights of the people in their custody,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “Incarcerated persons may have broken the law, but equal treatment is one of our country’s founding principles, and civil rights do not cease to exist at a prison’s gates. This defendant allowed incarcerated persons under his care to be brutalized and abused his authority as a law enforcement officer. Today’s sentence is another reminder that civil rights violations by law enforcement officials will not be tolerated.”
“The defendant sentenced today misused his position of power and permitted the brutal assault of inmates in his custody,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI remains dedicated to uncovering any violation of civil rights and pursuing justice for victims in these cases.”
According to court documents and statements made in court, from at least April 2019 through December 2019, while working as a corrections officer, Makos and others at Bayside State Prison agreed to physically assault certain victim-inmates for actual, perceived, and fabricated violations of the prison’s rules and customs. The assaults caused physical injury and pain to the victim-inmates. These assaults took place while the victim-inmates were under Makos’ supervision and in areas of the prison’s kitchen that were out of sight of institutional surveillance cameras. For example, on Dec. 7, 2019, Makos watched and did not attempt to intervene when multiple inmates pinned a victim-inmate to the floor and, while the inmates restrained the victim-inmate, punched the victim-inmate approximately 25 times. Makos did not report this assault to his supervisors or medical personnel, despite knowing he was required to do so.
Assistant Attorney General Clarke, U.S. Attorney Sellinger and FBI Assistant Director Quesada made the announcement.
The FBI Newark Field Office investigated the case, with assistance from the New Jersey Department of Corrections.
Assistant U.S. Attorneys Ari B. Fontecchio and Sara Merin of the Special Prosecutions Division for the District of New Jersey and Trial Attorney Shan Patel formerly of the Civil Rights Division’s Criminal Section are prosecuting the case.
New Jersey Man Sentenced for Conspiring with Someone Posing as DEA Agent to Defraud Victim of GoldRead the Press Release
BOSTON – A New Jersey man was sentenced today in federal court in Springfield for his role in a conspiracy which resulted in a Massachusetts victim converting her bank account funds into gold, because she was tricked into believing that her accounts had been compromised by purported drug traffickers.
Gaurang Contractor, 38, a citizen of India living in Jersey City, N.J., was sentenced by U.S. District Court Judge Mark G. Mastroianni to one year and one day in prison. Contractor will be subject to deportation proceedings upon completion of his sentence. On March 27, 2023, Contractor pleaded guilty to one count of conspiracy to commit wire fraud.
A man posing as an agent for the U.S. Drug Enforcement Administration (DEA) who referred to himself as “Oscar White,” contacted a victim in early August 2022 and told the victim that her bank accounts had been “compromised” by drug dealers. “Oscar White” directed the victim to convert her life savings to gold. “Oscar White” provided the victim with the name of a jewelry store in Hadley, Mass. where the victim could purchase gold. “Oscar White” then directed the victim to leave the gold in her unlocked vehicle and promised to send a “court officer” to pick up the gold for safekeeping by the DEA. The victim became suspicious and contacted law enforcement.
On Aug. 8, 2022, Contractor, unaware that the victim had contacted law enforcement, drove from New Jersey to Hadley, Mass, and conducted surveillance at the jewelry store. Unbeknownst to Contractor, a law enforcement officer, posing as the victim, entered the jewelry store and completed a sham transaction for two buckets worth of gold. Contractor followed the victim’s vehicle containing fake gold to a nearby parking lot. Upon arriving at the meeting location in the parking lot, Contractor removed the two buckets he believed to contain gold from the victim’s vehicle and placed them in his own car. He was subsequently arrested.
Acting United States Attorney Joshua S. Levy; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Northwestern District Attorney David E. Sullivan; and Hadley Police Chief Michael A. Mason made the announcement today. Assistant U.S. Attorneys Danial Bennett and Kaitlin Brown of Levy’s Worcester Branch Office prosecuted the case.
New Bedford Man Pleads Guilty to Drug DistributionRead the Press Release
BOSTON – A New Bedford man pleaded guilty on May 22, 2023 to fentanyl distribution charges.
Hector Diaz, 45, pleaded guilty to two counts of distributing and possessing with intent to distribute fentanyl. Chief U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for Aug. 7, 2023. Diaz was indicted in March 2022 and was arrested in June 2022.
On two occasions between December 2020 and January 2021, Diaz distributed and possessed with intent to distribute fentanyl in New Bedford.
The charge of possession with intent to distribute fentanyl provides for a sentence of up to 20 years in prison, three years and up to a lifetime of supervised release and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement. Assistant U.S. Attorneys Timothy E. Moran and Sarah Hoefle of Levy’s Organized Crime & Gang Unit are prosecuting the case.
Murdaugh Co-Conspirator Cory Fleming to Plead Guilty to Federal Conspiracy ChargeRead the Press Release
CHARLESTON, SOUTH CAROLINA — Cory H. Fleming, 54, of Beaufort, is scheduled to plead guilty in federal court tomorrow, Thursday, May 25, to conspiracy to commit wire fraud.
Fleming is scheduled to plead guilty to an information alleging that from in or around March 2018 until at least October 2020, Fleming conspired with former personal injury attorney Richard Alexander “Alex” Murdaugh to defraud the estate of Murdaugh’s former housekeeper and to obtain money and property from the estate by means of materially false and fraudulent pretenses.
In February 2018, Murdaugh’s housekeeper passed away after a fall at Murdaugh’s home. Murdaugh recommended that the housekeeper’s estate hire Fleming—then a personal injury and criminal defense attorney in Beaufort—to represent them and file a claim against Murdaugh to collect from his homeowner’s insurance policies. Murdaugh’s insurance companies settled the estate’s claim for $505,000 and $3,800,000.
The information alleges that, as part of the scheme, Murdaugh and Fleming conspired to siphon settlement funds, disguised as “prosecution expenses,” for their own personal enrichment. The information further alleges that Fleming directed the drafting of checks from the settlement funds held in his trust account to his personal bank account, fraudulently claiming that the funds were to pay for “expenses” related to the estate’s claim against Murdaugh. The information alleges Fleming knew the funds belonged to the estate, and the payments were not for legitimate legal expenses.
The hearing is scheduled for 2:00 p.m. at the J. Waties Waring Judicial Center, 83 Meeting Street, Charleston, South Carolina, in Courtroom 1, before The Honorable Richard M. Gergel.
Fleming faces a maximum penalty of up to five years in prison and a fine of up to $250,000.
The case was investigated by the Federal Bureau of Investigation and the South Carolina Law Enforcement Division. Assistant U.S. Attorneys Emily Limehouse, Kathleen Stoughton, and Winston Holliday are prosecuting the case.
The case against Fleming is No. 9:22-cr-394 (D.S.C.). The case against Murdaugh is No. 9:23-cr-396 (D.S.C.).
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Mexican Citizen Sentenced to Prison for Assaulting a Border Patrol Agent and Illegally Entering the United StatesRead the Press Release
SYRACUSE, NEW YORK – Nectar Alfonso-Ramirez, age 28, a citizen of Mexico, was sentenced today to 12 months in prison for unlawfully entering the United States and assaulting and resisting a federal agent, announced United States Attorney Carla B. Freedman and Chief Patrol Agent Robert N. Garcia, United States Border Patrol, Swanton Sector.
As part of his prior guilty plea, Alfonso-Ramirez admitted that, on October 4, 2022, he entered the United States on foot from Canada at a location not authorized for the entrance of immigrants. Border Patrol Agents encountered Alfonso-Ramirez and ordered him to halt. Alfonso-Ramirez admitted that he initially stopped, but then fled into the nearby woods, causing a foot pursuit. While a border patrol agent attempted to place him under arrest, Alfonso-Ramirez tried to escape, yelling at the agent, thrashing his body, swinging his arms, and kicking his legs.
United States District Judge David N. Hurd did not order a term of supervised release, because Alfonso-Ramirez will likely be deported to Mexico upon his release from prison.
The United States Border Patrol investigated the case, and it was prosecuted by Assistant U.S. Attorney Jessica N. Carbone.
Memphis Man Sentenced for Armed Robbery of Postal CarriersRead the Press Release
Memphis, TN – Sidney Poitier Pilcher, Jr., a/k/a Slimey Sidd, 21, has been sentenced to over nine years in federal prison for aiding and abetting in the robbery of postal carriers while brandishing a firearm. Kevin G. Ritz, United States Attorney for the Western District of Tennessee, announced the sentence today.
According to United States Attorney Ritz and information presented in court, the United States
Postal Inspection Service (USPIS) began investigating complaints of stolen or missing mail from collection boxes in the Memphis area. During the investigation, officers seized stolen mail, black ripped jeans, and a lime-green reflective vest from locations frequented by Pilcher. The clothing matched the description of the masked suspect during the postal robbery committed on September 26, 2022. Pilcher pled guilty on February 16, 2023.United States Senior District Judge Jon P. McCalla, sentenced Pilcher to 114 months in federal prison to be followed by five years of supervised release. There is no parole in the federal system.
This case was investigated by the USPIS and the Memphis Police Department.
United States Attorney Kevin Ritz thanked Assistant United States Attorney Reid Manning, who prosecuted this case, as well as law enforcement partners who investigated the case.
Massachusetts Eye and Ear Agrees to Pay over $5.7 Million to Resolve False Claims Act AllegationsRead the Press Release
BOSTON – Massachusetts Eye and Ear Infirmary, Massachusetts Eye and Ear Associates, Inc., and the Foundation of the Massachusetts Eye and Ear Infirmary, Inc. (collectively “Massachusetts Eye and Ear”) have agreed to pay over $5.7 million to resolve allegations that seven of their physician compensation plans, involving 44 doctors, violated federal law.
The government alleges that Massachusetts Eye and Ear compensated 44 physicians in a manner that violated the Physician Self-Referral Law (sometimes referred to as the Stark Law). Mass General Brigham, which has owned and operated Massachusetts Eye and Ear since April 2018, disclosed this issue to the government in connection with the government’s investigation into related allegations. The Stark Law prohibits physicians from referring patients to receive “designated health services” payable by Medicare from entities, like hospitals, with which the physician has a financial relationship, unless the arrangement falls into the exceptions provided for by law. It also prohibits the entity from billing Medicare for those services. The law is intended to ensure that physicians’ medical judgments are not compromised by improper financial inducements.
“Stark Act violations drive up the overall costs of the health care system due to fraud and abuse,” said Acting United States Attorney Joshua Levy. “We will continue to vigorously investigate False Claims Act violations arising out of improper financial relationships between hospitals and physicians. We applaud Massachusetts Eye and Ear for its cooperation with the Department’s investigation. This settlement agreement demonstrates the advantages that actors can enjoy when they disclose non compliance, and we encourage others in the health care industry to come forward when they suspect wrongdoing.”
“This settlement is a warning to other health care entities that seek to boost their profits by entering into improper financial arrangements with referring physicians,” said Phillip M. Coyne, Special Agent in Charge of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “Working with our law enforcement partners, we will continue to investigate such deals to prevent financial arrangements that could undermine impartial medical judgement, drive up health care costs, and corrode the public’s trust in the health care system.”
“We all rely on our health care providers to make treatment decisions based on clinical needs, not financial ones arising out of improper relationships between physicians and hospitals,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Today’s settlement with Massachusetts Eye and Ear demonstrates the FBI’s ongoing commitment to ensure that publicly funded health care programs to which we all contribute and on which we all depend are not abused.”
All seven physician compensation models at issue began before Mass General Brigham acquired Massachusetts Eye and Ear. One physician compensation model ended before Mass General Brigham took control of Massachusetts Eye and Ear. Mass General Brigham voluntarily terminated the remaining six physician compensation models on Oct. 1, 2019.
The government’s investigation was prompted by False Claims Act allegations brought in a lawsuit filed by a whistleblower under the qui tam provisions of the False Claims Act. Under those provisions, a private party can file an action on behalf of the government and share in any recovery. In connection with today’s settlement, the whistleblower will receive 17% of the recovery.
Acting U.S. Attorney Levy; HHS-OIG SAC Coyne; FBI SAC Bonavolonta; and Christopher Algieri, Special Agent in Charge of the U.S. Department of Veterans Affairs Office of Inspector General, Northeast Field Office made the announcement today. Assistant U.S. Attorneys Steven Sharobem and Charles B. Weinograd of Levy’s Affirmative Civil Enforcement Unit handled the matter.Mason County Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Rowdy Lee Randolph, 39, of Leon, was sentenced today to five years in prison, to be followed by two years of supervised release, for possession with intent to distribute marijuana.
According to court documents and statements made in court, on August 4, 2020, law enforcement officers searched Randolph’s property in Leon and seized six marijuana plants from his yard and approximately 1.5 pounds of marijuana from his residence. Randolph admitted to growing marijuana on his property and selling it for money.
United States Attorney Will Thompson made the announcement and commended the investigative work of the West Virginia State Police and the Violent Crime and Drug Task Force West.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie S. Taylor prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:20-cr-150.
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Man Sentenced to over Seven Years in Prison for Trafficking Heroin and Fentanyl from Dominican RepublicRead the Press Release
BOSTON – A Dominican man has been sentenced in federal court in Boston for conspiring to traffic multiple kilograms of heroin and fentanyl from the Dominican Republic to states on the East Coast.
Kelvin Regalado, 42, was sentenced on May 10, 2023 by U.S. District Court Judge Nathaniel M. Gorton to 87 months in prison and three years of supervised release. On Jan. 6, 2023, Regalado pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin, 400 grams or more of fentanyl, and 100 grams or more of carfentanil; one count of distribution and possession with intent to distribute ketamine; and one count of distribution of and possession with intent to distribute 400 grams or more of fentanyl.
Regalado was indicted in December 2020, along with co-defendant Marcos Cabrera, while he was residing in the Dominican Republic. Regalado was extradited to the United States in May 2022 after being taken into custody by Dominican authorities.
From August 2019 through March 2020, in the Dominican Republic, Regalado conspired with Cabrera to deliver nearly three kilograms of heroin and carfentanil to cooperating witnesses in New York, Rhode Island and Massachusetts. Additionally, Regalado arranged to have one kilogram of fentanyl and one kilogram of ketamine sent to the cooperating witnesses through the mail in Massachusetts.
In January 2022, Cabrera was sentenced to 87 months in prison after previously pleading guilty to his role in the conspiracy.
Acting United States Attorney Joshua S. Levy and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Stephen W. Hassink of Levy’s Narcotics & Money Laundering Unit is prosecuted the case. The Justice Department’s Office of International Affairs provided substantial assistance.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Maine Man Sentenced to Prison for Defrauding ClientsRead the Press Release
ALBANY, NEW YORK - Sean O’Hare, age 55, of South Portland, Maine, was sentenced today to a year and a day in prison in connection with a scheme to defraud his tax preparation clients. United States Attorney Carla B. Freedman and Ketty Larco-Ward, Inspector in Charge of the Boston Division of the United States Postal Inspection Service (USPIS), made the announcement.
In previously pleading guilty, O’Hare, a former tax preparer and accountant, admitted that he defrauded his clients who trusted him to prepare their tax filings and remit their tax payments. From March 2011 through September 2016, O’Hare filed quarterly sales and use tax returns with the New York State Department of Taxation and Finance that understated the amount of sales and use tax owed by three companies. O’Hare collected the full amount of taxes owed from the companies and stole the difference between the amount of tax remitted to the State of New York and the amount he received from each company. O’Hare admitted to fraudulently obtaining $131,758 from the scheme.
Senior United States District Judge Lawrence E. Kahn also ordered O’Hare to serve a 2-year term of supervised release following his release from prison, and ordered full restitution, which O’Hare paid today.
The USPIS, with assistance from the New York State Department of Taxation and Finance, investigated this case, and Assistant U.S. Attorney Alexander P. Wentworth-Ping prosecuted this case.
Macy Man Sentenced for Firearm and Drug Trafficking CrimesRead the Press Release
United States Attorney Steven Russell announced that Terrence Sherman, 37, of Macy, Nebraska, was sentenced today in federal court in Omaha, Nebraska, for conspiracy to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. United States District Judge Brian C. Buescher sentenced Sherman to 180 months of imprisonment. There is no parole in the federal system. After his release from prison, Sherman will begin a five-year term of supervised release.
On August 20, 2021, officers stopped a vehicle in Macy containing four people, including Sherman and co-defendant Collin Parker. Officers located approximately 123 grams of methamphetamine, scales, baggies, and a 12-gauge shotgun. Sherman and Parker had conspired to distribute methamphetamine and they possessed the shotgun in furtherance of that conspiracy. Parker previously pleaded guilty and on April 5, 2023, was sentenced to 110 months in prison.
This case was investigated by the Omaha Nation Law Enforcement Services, the Thurston County Sheriff’s Office, and the Federal Bureau of Investigation.
Local Entrepreneur Sentenced to Federal Prison for Covid-Relief FraudRead the Press Release
PORTLAND, Ore.—A Portland entrepreneur was sentenced to federal prison today for fraudulently applying for and obtaining loans intended to help small businesses during the Covid-19 pandemic.
Peter Peacock Blood, 59, was sentenced to 12 months in federal prison and 5 years’ supervised release. He was also ordered to forfeit more than $600,000 to the United States and to pay more than $590,000 in restitution to the U.S. Small Business Administration (SBA) and Chase Bank.
On March 25, 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide emergency financial assistance to American employers suffering the economic effects of the Covid-19 pandemic and resulting shutdowns. According to court documents, in early April 2020, less than two weeks after the CARES Act was passed, Blood began submitting fraudulent applications for Covid-relief benefits on behalf of his two solar energy companies, Cycle Power Partners, LLC and Cycle Holdings, LLC.
Previously, Blood filed tax returns in 2019 and 2020 on behalf of Cycle Power Partners claiming the company had two or fewer employees, including Blood himself, and paid less than $9,600 in quarterly wages and other compensation. No quarterly tax returns were filed for Cycle Holdings during the same time period. Despite this, in two separate Paycheck Protection Program loan applications he submitted in April 2020, Blood claimed his companies had 10 employees and an average monthly payroll exceeding $116,000.
The first application resulted in a loan of more than $332,000 and the second, a loan of more than $290,000. Blood spent more than half of the funds received on a custom, military-style truck he outfitted into a camper and another $14,000 on home improvements.
On July 8, 2021, a federal grand jury in Portland returned an indictment charging Blood with two counts of loan fraud and, on December 16, 2022, he pleaded guilty to both counts.
This case was investigated by the SBA Office of Inspector General, U.S. Treasury Inspector General for Tax Administration (TIGTA), and the FBI. It was prosecuted by Ryan W. Bounds and Meredith D.M. Bateman, Assistant U.S. Attorneys for the District of Oregon.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Life in Federal Prison for Pope County Drug Trafficker Associated with White Supremacist GangRead the Press Release
LITTLE ROCK— Marcus Millsap, 55, of Little Rock, was sentenced to life in federal prison for conspiracy to violate racketeering laws, attempted murder in aid of racketeering, and conspiracy to distribute methamphetamine. Millsap was sentenced earlier today by United States District Judge Brian S. Miller.
Millsap was indicted in September 2019 for his involvement in a white supremacist prison gang known as the “New Aryan Empire,” or NAE. NAE’s slogan is “to the dirt,” referring to the fact that members must remain in the organization until they die. Millsap was charged with, and ultimately convicted of, conspiracy to violate racketeering influenced corrupt organization laws, or RICO, attempted murder in aid of racketeering, and drug conspiracy. Evidence at trial established that Millsap and others used the NAE as a corrupt organization to conduct racketeering activities, including drug distribution, solicitations of murder, and attempted murder.
At trial, the prosecution presented evidence that in May 2014, Millsap sold methamphetamine to an individual named Bruce Hurley, who was working as a confidential informant. Once Hurley completed the controlled purchase of methamphetamine and reported back to law enforcement, a traffic stop located more methamphetamine in Millsap’s vehicle. Millsap was convicted in the methamphetamine case, and while on an appeal bond, Millsap solicited members and associates of NAE to kill Hurley for his work in cooperating with law enforcement against Millsap. In January 2016, other NAE members attempted to murder Hurley. That attempt failed, and NAE members and associates continued attempting to arrange Hurley’s death. This conduct resulted in Millsap’s conviction for attempted murder in aid of racketeering.
“The United States will not tolerate the vile and outrageous crimes committed by members and associates of the New Aryan Empire or any other white supremacist group,” said Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas. “If you are a member or associate of this or any other violent criminal organization, know that the United States will stop at nothing to dismantle and disrupt those who pose a threat to our communities and the future of our children, and the United States will seek significant prison sentences.”
In addition to the life sentence, Millsap was ordered to pay a $200,000 fine and was sentenced to 10 years of supervised release should he ever be released from prison. The investigation was conducted by the Bureau of Alcohol, Tobacco, and Firearms; the Drug Enforcement Administration; the Federal Bureau of Investigation; the Pope County Sheriff’s Office; the Russellville Police Department; the U.S. Marshals Service; the U.S. Postal Inspection Service; the Arkansas State Police; 5th Judicial Drug Task Force; the Conway Police Department, and the Arkansas Army National Guard’s Counterdrug Unit. The case was prosecuted by Assistant United States Attorneys Liza Brown and Stephanie Mazzanti.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Lame Deer man sentenced to nine years in prison for sexually abusing girl on Northern Cheyenne Indian ReservationRead the Press Release
BILLINGS — A Lame Deer man who admitted to sexually abusing a child in 2015 on the Northern Cheyenne Indian Reservation was sentenced today to nine years in prison, to be followed by 10 years of supervised release, U.S. Attorney Jesse Laslovich said.
Jordan Joseph Backer, 27, pleaded guilty in February to abusive sexual contact.
U.S. District Judge Dana L. Christensen presided.
The government alleged that in 2021, law enforcement received a Cybertip from Facebook that indicated an account associated with Backer had an image of suspected sexual abuse of a child, resembling Jane Doe. Law enforcement responded to Backer’s residence but were unable to make any determinations about the child’s identity or what had happened. In September 2022, Jane Doe disclosed that Backer had sexually abused her in 2015, when she was approximately six years old and visiting family on the reservation. When interviewed, Backer admitted to sexually abusing Jane Doe.
Assistant U.S. Attorney Zeno B. Baucus prosecuted the case. The FBI and Northern Cheyenne Investigative Services conducted the investigation.
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Lakeland Woman Sentenced for Student Loan FraudRead the Press Release
Memphis, TN – Kelli L. Pollard, 56, of Lakeland, has been sentenced to federal prison for obtaining federally insured student loan funds. Kevin G. Ritz, United States Attorney for the Western
District of Tennessee, announced the sentence today.According to United States Attorney Ritz and information presented in court, between 2017 and 2021, Pollard made false statements and submitted false and forged documents to the University of Memphis to qualify for $94,299 in student loans.
United States District Judge Thomas L. Parker sentenced Pollard to one year and one day in federal prison to be followed by three years of supervised release. She was also ordered to pay restitution to the United States Department of Education. There is no parole in the federal system.
The case was investigated by the United States Department of Education Office of Inspector General.
United States Attorney Kevin Ritz thanked former Assistant United States Attorney Murre Foster and
Assistant United States Attorney Carroll L. André III, who prosecuted this case, as well as law enforcement partners who investigated the case.Justice Department Observes National Missing Children’s DayRead the Press Release
As part of the 40th annual commemoration of National Missing Children’s Day, the Justice Department today honored nine individuals in Washington, D.C. for their extraordinary efforts to recover and help missing children and to hold those who commit child sexual abuse and crimes against children legally responsible for their actions.
“Whether a child has been abducted, or has just wandered away, the terror felt by a parent when their child has disappeared is overwhelming,” said Attorney General Merrick B. Garland. “I have great respect for the brave, resourceful, and dedicated professionals who work every day to protect children from harm, reunite missing children with their families, and provide support in the aftermath of a traumatic event. There is no cause more worthy of honor. The Department of Justice is proud to stand with them.”
The Office of Justice Programs’ Office of Juvenile Justice and Delinquency Prevention leads the nation in observing Missing Children’s Day, which was first proclaimed by President Ronald Reagan in 1983 in memory of six-year-old Etan Patz, who was abducted while walking to his bus stop in Manhattan on May 25, 1979. National Missing Children’s Day honors his memory and those children who are still missing. Etan’s killer was convicted in February 2017, but the case remains active because his body was never found.
“It is difficult to even imagine all of the emotions — panic, fear, heartbreak — when a child goes missing,” said Associate Attorney General Vanita Gupta. “The Justice Department commemorates National Missing Children’s Day not only to remember the solemn impact that missing children have on parents and caregivers, families and communities, but also to honor the individuals, organizations, and agencies that have made extraordinary efforts to find and rescue missing and exploited children.”
“On this day, we remember that some 460,000 children go missing from the United States every year – and we take this opportunity to remind ourselves of both the scope of the challenge before us and the depth of our collective commitment to the safety and welfare of America’s youth,” said Assistant Attorney General Amy L. Solomon of the Justice Department’s Office of Justice Programs. “The incredible people we honor today – and so many dedicated professionals across the country – deserve our deep appreciation and gratitude for all they do to protect children and our communities.”
This year’s recipients are honored with the following awards:
Attorney General’s Special Commendation: This commendation recognizes the extraordinary efforts of an Internet Crimes Against Children (ICAC) task force, an affiliate agency or an individual assigned to an ICAC task force or affiliate agency for making a significant investigative or program contribution to the ICAC task force program.
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Recipients: The following members from the North Texas ICAC task force – Lieutenant Cyrus Zafrani, Task Force Commander; Sergeant Kellie Renfro, Deputy Task Force Commander; Detective Tony Godwin; Detective Chris Meehan; Texas Ranger Bruce Sherman; Detective Jeffrey Rich; and Community Outreach Officer Anthony Newsom – all received the Attorney General’s Special Commendation for their actions in processing more than 22,000 tips from the National Center for Missing & Exploited Children’s CyberTipline, resulting in more than 500 arrests and the rescue of more than 50 children between Nov. 1, 2021, and Oct. 31, 2022.
Missing Children’s Law Enforcement Award: This award recognizes the extraordinary efforts of law enforcement officers who have made a significant investigative or program contribution to the safety of children.
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Recipient: Detective Agnes Watson from the Rialto Police Department in Rialto, California, received the Missing Children’s Law Enforcement Award for her actions in investigating a 23-year-old man who had abducted and assaulted a 17-year-old girl with the intention of taking her to Puerto Rico and trafficking her.
Missing Children’s Child Protection Award: This award recognizes the extraordinary efforts of child protective service agency personnel, law enforcement officers, or other professionals who have made a significant investigative or program contribution to protecting children from abuse or victimization.
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Recipient: Detective Mike Myerson from the Palatine, Illinois, Police Department received the Missing Children’s Child Protection Award for investigating the disappearance of a 14-year-old who was in contact with an adult male who wanted to engage in sexual acts with the teen. Myerson apprehended the suspect and charged him with traveling to meet a minor, which is a felony.
The Department also named Ayoub Alsaidi, a 5th grader from P.S. 251 in Brooklyn, New York, the winner of the 2023 National Missing Children’s Day poster contest. The contest creates an opportunity for schools, law enforcement and child advocates to discuss the issue of child safety with youth and their parents.
“Through their resourcefulness, their exceptional savvy and, most of all, their tenacious commitment to the health and safety of our nation’s young people, these award recipients have saved and protected hundreds of children from abduction, exploitation and further harm,” said Administrator Liz Ryan of the Office of Juvenile Justice and Delinquency Prevention. “We are honored to recognize them for their extraordinary efforts to secure a bright future for our youngest generation.”
Attorney General Merrick B. Garland honoring nine individuals in for their extraordinary efforts to recover and help missing children and to hold those who commit child sexual abuse and crimes against children legally responsible for their actions. Associate Attorney General Vanita Gupta delivers remarks at National Missing Children's Day.-