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Newest first across public DOJ and U.S. Attorney press releases.
Thursday 23 March 2023
Columbus man faces 25-year prison sentence after conviction of crimes related to violent armed robberyRead the Press Release
COLUMBUS, Ohio – A U.S. District Court jury has convicted Kevin Daniels, 45, of Columbus, of crimes he committed during the armed robbery of a mobile phone store in November 2021. Because of prior criminal convictions, Daniels faces at least 25 years in prison.
According to trial testimony and evidence, Daniels entered a mobile phone store on North High Street in Columbus about 7:30 p.m. on Nov. 26, 2021. He brandished a semi-automatic handgun in front of the two clerks, held them at gunpoint, and demanded they give him the phones in the safe and any cash they had in the store. After the clerks handed Daniels two bags of phones and cash, he sprayed them with chemical mace, temporarily blinding them. Daniels fled out the store’s back door and drove away.
The store clerks cleared their vision enough to call 911. Columbus Police identified the suspect’s car and arrested Daniels on the east side after a high-speed chase along neighborhood streets.
A federal grand jury indicted Daniels in December 2021, charging him with interfering with interstate commerce by robbery (the Hobbs Act), use of a firearm in a crime of violence, and possession of a firearm by a prohibited person.
Daniels has a prior federal firearms conviction in Columbus which means he faces a sentence of at least 25 years in prison. Daniels will be sentenced after the court conducts a pre-sentencing investigation.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); and Columbus Police Chief Elaine Bryant announced the verdict reached at the conclusion of a trial before U.S. District Judge Michael Watson on March 21. Assistant United States Attorneys S. Courter Shimeall and Nicole Pakiz are representing the United States in this case.
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Columbia Man Sentenced to More than 9 Years in Federal Prison for Possession of a FirearmRead the Press Release
COLUMBIA, SOUTH CAROLINA —Ernest Weldon, 37, of Columbia, was sentenced to 110 months in federal prison for possession of a firearm by a person convicted of a felony.
Evidence presented to the Court showed that on June 21, 2021, an officer with the City of Columbia Police Department (CPD) attempted to conduct a traffic stop on a car driven by Ernest Weldon. Instead of stopping for the officer, Weldon opened the door to the car and ran without putting the car in park, causing it to roll until it stopped in nearby grass. During his flight, Weldon dropped a firearm, which law enforcement recovered. CPD officers detained Weldon after a brief chase and took him into custody. Before this incident, Weldon had convictions for attempted armed robbery, possession with the intent to distribute marijuana, and multiple convictions for assault and criminal domestic violence.
United States District Judge Joseph F. Anderson, Jr. sentenced Weldon to 110 months in prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
The case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the City of Columbia Police Department. Assistant U.S. Attorney Lamar J. Fyall is prosecuting the case.
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Coindawg Founder Arrested for Laundering Proceeds of Fraudulently Obtained Small Business Administration LoansRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Ivan J. Arvelo, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced today the arrest of CHARLES RILEY CONSTANT, a/k/a “Chuck Constant,” for charges in connection with a scheme to steal and launder over $1 million in fraudulently obtained loans from the Small Business Administration (“SBA”), including the use of fraud proceeds to purchase cryptocurrency ATMs. CONSTANT was arrested yesterday morning and is being presented today before a U.S. Magistrate Judge in the Eastern District of Texas. In connection with CONSTANT’s arrest, law enforcement agents seized, among other things, 18 cryptocurrency ATMs in Texas and Oklahoma that CONSTANT purchased with fraud proceeds to start a cryptocurrency ATM business named “Coindawg LLC,” as well as Coindawg’s website.
U.S. Attorney Damian Williams said: “As alleged, Charles Constant helped to launder over $1 million of proceeds from loans that his co-conspirators fraudulently obtained from the SBA. He converted the bulk of the crime proceeds into Bitcoin for his co-conspirators and used a portion of the rest to start his own lucrative cryptocurrency ATM business. Thanks to this Office’s teamwork with the HSI, Constant is now facing serious criminal charges for his alleged crimes. We will continue to hold accountable people who steal funds intended for small businesses that struggled as a result of the COVID-19 pandemic.”
HSI Special Agent in Charge Ivan J. Arvelo said: “As alleged, Charles Constant specifically exploited the Small Business Administration’s Economic Injury Disaster Loan program put in place to help our small businesses weather the COVID-19 pandemic, for the purpose of expanding his criminal money laundering enterprise. Constant is accused of defrauding the federal government and robbing U.S. taxpayers with his illicit money-laundering scheme. HSI New York will continue to exhaust every resource at our disposal to ensure criminals like this will be held accountable for their actions.”
According to the allegations in the Complaint, which was unsealed today in Manhattan federal court:[1]
CHARLES RILEY CONSTANT, a/k/a “Chuck Constant,” knowingly assisted others involved in a scheme to fraudulently obtain over $1 million in loans from the SBA, which CONSTANT and his co-conspirators laundered through Bitcoin transactions. The perpetrators of the fraud against the SBA used false identities and non-existent companies to obtain seven Economic Injury Disaster Loans from the SBA — funds that were intended to help small businesses financially harmed by the COVID-19 pandemic. The loan proceeds were transferred directly from the SBA to a bank account held by C2 LLC, an entity that CONSTANT owned and registered with the U.S. Treasury Department as a money services business. CONSTANT then used approximately $700,000 of the crime proceeds — a portion of which he routed through a second bank account held by C2 LLC — to purchase Bitcoin from a cryptocurrency exchange headquartered in New York City. CONSTANT directed the New York-based exchange to distribute the Bitcoin to his co-conspirators.
CONSTANT then stole the remaining $300,000 of fraud proceeds. CONSTANT transferred $53,000 of the $300,000 to a third bank account held by C2 LLC and an additional $98,300 to an account in CONSTANT’s name at a cryptocurrency exchange headquartered in California. Beginning in the fall of 2020, CONSTANT used a portion of these fraud proceeds to purchase, among other things, seven cryptocurrency ATMs (“Crypto ATMs”), cryptocurrency, and promotional services to start a cryptocurrency ATM business named “Coindawg LLC.” CONSTANT used revenue generated by the seven Crypto ATMs to acquire additional Crypto ATMs and more cryptocurrency to expand Coindawg’s operations. To date, Coindawg has exchanged over $3,000,000 worth of cryptocurrency and charged 15% in transaction fees. Below is a photograph of one of the Coindawg Crypto ATMs seized by law enforcement in connection with CONSTANT’s arrest:
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CONSTANT, 54, of Allen, Texas, is charged with one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison; one count of theft of public money, which carries a maximum sentence of 10 years in prison; and one count of interstate receipt of stolen money, which carries a maximum sentence of 10 years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the investigative work of the HSI. Mr. Williams also thanked the HSI Field Office in Dallas, Texas, for their assistance in the investigation of this case.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Sarah Lai, Olga I. Zverovich, and Andrew K. Chan are in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendant is 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 herein should be treated as an allegation.
Charlotte Men with Prior Criminal Histories Are Sentenced to Prison for Unlawful Possession of A Stolen FirearmRead the Press Release
CHARLOTTE, N.C. – Dominique Malik Daniels, 23, of Charlotte, was sentenced today to 48 months in prison followed by two years of supervised release for unlawful possession of a stolen firearm, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings, of the Charlotte-Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement.
"Stolen firearms pose a significant threat to the safety of our community, particularly when they end up in the hands of prohibited persons," said U.S. Attorney King. "Working with our law enforcement counterparts at the federal, state, and local level, we will continue to join forces to protect our communities and remove illegal firearms from our streets."
"Recovering stolen firearms from prohibited individuals is a critical step toward improving public safety," said Special Agent in Charge Mims. "ATF and our law enforcement partners are committed to locating those offenders who threaten our communities and recovering the firearms used to commit their crimes."
According to documents filed in this case and court proceedings, on December 31, 2020, CMPD officers were dispatched to a 7-Eleven on North Graham Street in Charlotte, after a store clerk alerted law enforcement that two individuals, one of whom was later identified as Daniels, were loitering in the parking lot. Officers responding to the service call interviewed the store clerk who told CMPD officers that he believed Daniels was armed. The officers approached Daniels and recovered from his jacket a 9 mm handgun and a Glock magazine. Over the course of the investigation, law enforcement determined that the firearm had been stolen out of Randolph County in North Carolina. Court records show that Daniels was previously convicted of multiple state offenses and he is prohibited from possessing a firearm. Court records show that Daniels was previously convicted of multiple state offenses and he is prohibited from possessing a firearm. On December 9, 2021, Daniels pleaded guilty to possession of a firearm by a convicted felon.
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In an unrelated case, on Wednesday, March 22, 2023, U.S. District Judge Max O. Cogburn Jr. sentenced Dejawn Jermaine King, 26, of Charlotte, to 37 months in prison followed by two years of supervised release for illegally possessing a stolen firearm. According to court documents filed in this case, on January 6, 2022, CMPD officers were dispatched to Statesville Road and Sunset Road, where they encountered King passed out at the wheel. After waking up, King began to reach into the vehicle’s center console. Officers were able to remove King from the vehicle and observed a firearm on the driver’s seat. During the investigation, law enforcement determined the firearm had been reported stolen out of Stokes County in North Carolina. King has a prior state conviction and he is prohibited from possessing a firearm. King pleaded guilty on June 22, 2022, to possession of a firearm by a felon.
Daniels and King are in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement U.S. Attorney King thanked the ATF and CMPD for their investigation of both cases.
Assistant U.S. Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte was in charge of both prosecutions.
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In July 2022, the U.S. Attorney’s Office for the Western District of North Carolina launched Think Again, an informational campaign to educate the public on how to prevent illegal firearms from getting into the wrong hands. The U.S. Attorney’s Office partnered with the ATF in this initiative, in a joint effort to reduce gun-induced violence and to increase reporting of illegal firearms. The campaign encourages the public to submit an anonymous tip about illegal firearms and other criminal activity to the ATF by calling 1-888-ATF-TIPS (1-888-283-8477), via text at 63975, or online at WWW.ATF.GOV/ATF-TIPS.
For additional information about our Think Again initiative, please visit our website. You can view our Think Again Public Service Announcements here.
Camden Man Pleads Guilty to Conspiracy to Commit Bank FraudRead the Press Release
Jackson, Miss. – A Camden man pleaded guilty to conspiracy to commit bank fraud, announced U.S. Attorney Darren J. LaMarca of the Southern District of Mississippi.
According to court documents and statements made in court, Arthur Jerome Eldridge, Jr., 25, conspired with others to print counterfeit U.S. Treasury Checks, deposit them at area banks, and withdraw funds from those accounts.
Eldridge is scheduled to be sentenced on June 26, 2023. He faces a maximum penalty of 30 years in prison and a $1,000,000 fine. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by the Mississippi Attorney General’s Office through its partnership with the United States Secret Service’s Cyber Fraud Task Force
Assistant U.S. Attorney Kimberly T. Purdie is prosecuting the case.
California man admits armed fentanyl trafficking in Great Falls areaRead the Press Release
GREAT FALLS — A California man suspected of armed fentanyl trafficking in the Great Falls area admitted to charges today, U.S. Attorney Jesse Laslovich said.
Casey Louis Ream, 37, pleaded guilty to possession with intent to distribute fentanyl and to prohibited person in possession of a firearm. Ream faces a maximum of 20 years in prison, a $1 million fine and at least three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Aug. 17. Ream was detained pending further proceedings.
In court documents, the government alleged that in October 2022, Russell Country Drug Task Force agents in Great Falls were investigating Ream for armed fentanyl trafficking. Ream was arrested in his vehicle and had several fentanyl pills on his person and more pills were visible in the area where he had been sitting. Officers served a search warrant on the vehicle and located a bundle of more than $6,000 in cash and a lock box that contained several thousand fentanyl pills and multiple rounds of ammunition. In a search of a house where Ream had been staying, officers found an AK-style rifle with a high-capacity magazine that had been reported stolen out of Washington state and three 9mm pistols. In later interviews, Ream admitted to owning the firearms seized from the house and that he was felon. Ream further admitted he had brought large quantities of fentanyl pills to sell. Ream has several felony convictions and is prohibited from possessing firearms.
Assistant U.S. Attorney Ethan R. Plaut is prosecuting the case, which was investigated by the Russell Country Drug Task Force, Bureau of Alcohol, Tobacco, Firearms and Explosives, Great Falls Police Department, Cascade County Sheriff’s Office and Homeland Security Investigations.
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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CEO of Paycheck Protection Program Lender MBE Capital Pleads Guilty in Connection with Fraudulent Loan and Lender ApplicationsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that RAFAEL MARTINEZ, the CEO of MBE Capital Partners, LLC, pled guilty to conspiring to commit wire fraud in connection with loan and lender applications submitted through the Paycheck Protection Program (the “PPP”) administered by the U.S. Small Business Administration (the “SBA”). MARTINEZ pled guilty before United States District Judge Lewis J. Liman, to whom his case is assigned.
U.S. Attorney Damian Williams said: “In the depths of the COVID-19 pandemic, Martinez lied to get money that was supposed to help people. His abuse of the system during a terrible time has now been brought to light. Martinez took advantage of his employees, a tax preparer, and the public at large — all to fund a lavish lifestyle of cars, jets, and fancy homes. Let me be clear, this Office will not tolerate such conduct and will continue to bring to justice those who put their greed above the law.”
According to the allegations in the Complaint, court filings, and statements made during plea proceedings:
MARTINEZ used false representations and documents to fraudulently obtain the approval of the SBA for his company, MBE Capital Partners, LLC (“MBE”), to be a non-bank lender through the PPP. He engaged in this criminal conduct to fraudulently secure hundreds of millions of dollars in capital for PPP loans and, ultimately, to collect more than approximately $71 million in lender fees. In addition, MARTINEZ engaged in a scheme to obtain a PPP loan for MBE in the amount of approximately $283,764 through false statements regarding the number of employees of MBE and the wages paid to MBE employees and using the forged signature of MBE’s tax preparer.
At all relevant times, MARTINEZ has been the CEO and primary owner of MBE, a New York limited liability company formed in or about March 2015. Republic Group, LLC, a/k/a Republic Group Parts, LLC (“Republic Group”), which is owned and controlled by MARTINEZ, serves as the holding company for MBE and conducts business as MBE. According to MBE’s website, “For over 20 years, MBE Capital Partners has been a leading provider of financing solutions for small and diverse businesses . . . In 2019, we financed over $1.7 billion in public and private debt and we funded over 35,000 PPP loans worth $800M.”
On or about April 5, 2020, MARTINEZ applied to a financial institution for a government-guaranteed loan for Republic Group, through the SBA’s PPP. In connection with the loan application, MARTINEZ represented that MBE had as many as 15 employees and an average monthly payroll of approximately $119,390 in 2019. In fact, however, from in or about April 2018 through in or about April 2020, MBE had at most four employees who had a total average monthly payroll of no more $25,000. In order to support the false representations made by MARTINEZ in the loan application about the number of employees at and the wages paid by MBE, MARTINEZ submitted fraudulent and doctored tax records that contained the forged signature of a tax preparer located in Manhattan, New York (the “Tax Preparer”). Based on the false documentation provided by MARTINEZ, MBE was approved for a PPP loan in the amount of approximately $283,764, which was disbursed to a bank account controlled by MARTINEZ. A majority of the loan proceeds do not appear to have been used for payroll for employees of MBE or other business expenses.
On or about April 9, 2020, within five days of applying for the PPP loan referenced above, MARTINEZ submitted an application to the SBA for MBE to become a non-bank PPP lender. As part of the PPP lender application process, MARTINEZ represented that MBE had originated and serviced over $3.8 billion in business loans or other commercial financial receivables for the three-year period from in or about 2017 through in or about 2019 and submitted fraudulent financial statements that purported to be audited by the Tax Preparer’s firm for the years 2018 and 2019. Based on the false information provided by MARTINEZ to the SBA, MBE was approved as a non-bank lender for PPP loans.
On or about April 27, 2020, MARTINEZ submitted various documents, including the same fraudulent audited financial statements for 2019 provided to the SBA, to a life insurance company (the “Company”) as part of a proposed partnership to fund PPP loans for minority and women-owned small businesses. On or about May 13, 2020, the Company provided MBE with $100 million to fund PPP loans, which MBE in turn used as collateral to borrow additional capital of approximately $832 million through the Payment Protection Program Liquidity Facility (“PPPLF”) with the Federal Reserve.
As a result of the above fraudulent misrepresentations, MARTINEZ, through his company MBE, became an approved PPP lender and issued approximately $823 million in PPP loans to approximately 36,600 businesses. These loans earned MARTINEZ a total of approximately $71.3 million in fees. MARTINEZ spent the proceeds from his criminal conduct on, among other things, the purchase of a villa in the Dominican Republic for over $10 million, a $3.5 million mansion located in Franklin Lakes, New Jersey, a chartered jet service, and several luxury vehicles, including a 2018 Porsche 911 Turbo, a 2017 Ferrari 488 Spider, a 2017 Bentley Continental GT, a BMW 750, and a 1962 Mercedes Benz 190.
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MARTINEZ, 57, of Franklin Lakes, New Jersey, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of five years in prison.
The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
As part of his plea agreement, MARTINEZ agreed to pay restitution in the amount of $71,711,893.07 and to forfeit $44,546,712.94, including more than $15 million previously seized by law enforcement, properties in New Jersey and the Dominican Republic, and five luxury vehicles.
Mr. Williams praised the outstanding investigative work of the Internal Revenue Service, Criminal Investigation; U.S. Small Business Administration, Office of Inspector General; and the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection, Eastern Region.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Micah Fergenson, Katherine Reilly, and Steven Kochevar are in charge of the prosecution.
Buffalo Man Convicted by A Federal Jury for His Role in Murder of Three People in Front of Child Sentenced to Three Consecutive Life SentencesRead the Press Release
BUFFALO, N.Y. – U.S. Attorney Trini E. Ross announced today that Deandre Wilson, 51, of Buffalo, NY, who was convicted by a federal jury of multiple charges for his role in a narcotics conspiracy which resulted in a triple homicide, was sentenced to serve three consecutive life sentences plus 30 years by Chief U.S. District Judge Elizabeth A. Wolford. Following the six-week jury trial, Wilson was convicted of:
- narcotics conspiracy
- Hobbs Act robbery
- murder while engaged in a narcotics conspiracy
- discharge of a firearm in furtherance of a crime of violence and drug trafficking crimes
- two counts of discharge of a firearm causing death in furtherance of a crime of violence and drug trafficking crimes
- conspiracy to obstruct justice
- two counts of obstruction of justice
- conspiracy to use fire to commit a felony
- two counts of use of fire to commit a felony
- conspiracy to damage and destroy a vehicle used in interstate commerce by fire
- damaging and destroying a vehicle used in interstate commerce by fire
- possession with intent to distribute marijuana
Assistant U.S. Attorneys Michael J. Adler, Maeve E. Huggins, and Joseph M. Tripi, who handled the prosecution of the case, stated that in 2019, Deandre Wilson joined a longstanding narcotics conspiracy with co-defendants Jariel Cobb, James Reed, and others. Wilson, who had only recently been released to New York State parole after serving a lengthy prison term for Murder in the 2nd Degree, entered the conspiracy to obtain kilograms of cocaine and other controlled substances for distribution. In furtherance of the narcotics conspiracy, on September 15, 2019, Cobb arranged a purchase of a kilogram of cocaine from Miguel Anthony Valentin-Colon and Dhamyl Roman-Audiffred, who served as Cobb’s sources of supply. Valentin-Colon, along with his wife. Nicole Marie Merced-Plaud, their minor son, and Roman-Audiffred, arrived in their vehicle, a white minivan, at a residence on Roebling Avenue, as directed by Cobb. Roman-Audiffred exited the van and entered the residence’s kitchen, at which time Wilson hit her in the head with a blunt object and she fell to the floor. Wilson then went outside and shot and killed both Valentin-Colon and Merced Plaud, in the presence of their minor son, who was seated in a child’s car seat. Wilson then drove the minivan and hid it behind a building on Scajaquada Street near Kilhoffer Street in Buffalo.
A short time later, Cobb and Reed moved the body of Dhamyl Roman-Audiffred from the kitchen into the residence’s basement, where Cobb dismembered her body. Cobb placed the body parts into multiple trash bags and placed them into the trunk of his vehicle, and then drove to a residence on Box Avenue, removed the trash bags, and placed them into a burning fire in a fire pit area in the backyard. Wilson later joined his co-conspirators on Box to assist in the destruction of evidence.
During the early morning hours of September 16, 2019, Wilson and Cobb retrieved the minivan from Scajaquada Street, with the bodies of Miguel Valentin-Colon and Nicole Marie Merced-Plaud still inside, as well as their minor son. Wilson and Cobb drove the minivan to a non-residential area on Tonawanda Street and doused the vehicle and the bodies with gasoline, lighting the vehicle and bodies on fire. They took the minor child and left him on a stranger’s porch on Potomac Avenue in Buffalo.
Jariel Cobb and James Reed were previously convicted and also face a maximum of life when sentenced.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia; the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia; the Erie County Sheriff’s Office, under the direction of Sheriff John Garcia; the Erie County Central Police Services Forensic Laboratory, under the direction of Commissioner James Jancewicz.
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Broward County Man Sentenced to 108 Months’ Imprisonment for Ponzi Scheme & COVID-19 FraudRead the Press Release
MIAMI – A federal district judge in Ft. Lauderdale has sentenced David J. Varrone, 56, of Weston, Florida, to 108 months’ imprisonment for his role in organizing an elaborate credit and investment Ponzi scheme through his company, The Credit Engineers, Inc.
In addition, Judge Raag Singhal ordered Varrone to pay over $3,5 million in restitution and entered a forfeiture judgment on Varrone’s Weston home and a bank account containing COVID-19 relief funds that Varrone had fraudulently obtained.
Varrone previously pled guilty to conspiracy to commit wire fraud. From 2018 through 2021, Varrone and his company offered individuals with good credit a short-term investment program tied to a purported hedge fund that guaranteed investment returns and fully repaid investments in 36 months or less. To obtain funds, Varrone helped victims apply for the high interest, short term loans and the victims “leased” the proceeds to The Credit Engineers and Varrone.
In fact, there was no hedge fund and the victims’ funds were never invested as promised. Instead, the proceeds were used to enrich Varrone and to repay earlier victims. The scheme funneled over $6.4 million of misappropriated victims’ funds into Varrone’s accounts.
Additionally, Varrone fraudulently applied for and received approximately $650,000 in CARES Act, Economic Injury Disaster Relief Loans from the U.S. Small Business Administration. The loans were intended to keep small businesses afloat and retain employees during the COVID-19 pandemic period.
David J. Varrone’s wife, Sherry D. Varrone, also pled guilty to her role in the conspiracy in case number 22-cr-60196. She is scheduled for sentencing on April 3, in Ft. Lauderdale before U.S. District Judge William P. Dimitrouleas.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Commissioner Russell C. Weigel III of the Florida Office of Financial Regulation (OFR), Bureau of Financial Investigations (BFI), Miami Region, made the announcement.
OFR-BFI Miami investigated the case, with assistance from the Small Business Administration, Office of Inspector General (SBA-OIG) and the U.S. Secret Service (USSS), Miami Field Office. Assistant U.S. Attorney Trevor Jones prosecuted the case. Assistant U.S. Attorney Emily Stone is handling asset forfeiture.
In March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Among other sources of relief, the CARES Act authorized and provided funding to the SBA to provide Economic Injury Disaster Loans (“EIDLs”) to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred. EIDL applications were submitted directly to the SBA via the SBA’s on-line application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. For more information on the department’s response to the pandemic, please click here.
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.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 22-cr-60197.
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Brooklyn Man, Who Was Fugitive for 8 Years, Sentenced to 60 Months in Prison for His Role in Heroin ConspiracyRead the Press Release
COLUMBIA, SOUTH CAROLINA —Dockim Deeshawn McKnight, 34, of Brooklyn, New York, was sentenced to 5 years in prison after earlier pleading guilty in federal court to conspiracy to possess with intent to distribute and to distribute 100 grams or more of heroin.
McKnight was one of 10 defendants charged in April 2014, following a series of court-authorized, DEA-monitored wiretaps over several telephones in the Columbia area. Six of the 10 defendants were arrested in April 2014, while 4 remained fugitives, including McKnight. Two fugitives were arrested in 2017 in Texas. McKnight remained a fugitive until his May 2022 arrest by the United States Marshals Service in Brooklyn, New York. The remaining fugitive was arrested in September 2022 in Concord, North Carolina, is currently awaiting trial, and is innocent until and unless proven guilty.
The 2013 investigation revealed that a group of individuals in the Columbia area were obtaining heroin from various sources outside of South Carolina and then distributing it in the Midlands. Evidence indicated that the suppliers were initially getting the heroin in packages from India. Several packages destined for Columbia and containing heroin were intercepted by law enforcement during the investigation. Evidence further showed that the co-defendants later traveled to New York to obtain heroin and transported it back to Columbia, where it was distributed. In June 2013, New York authorities seized 155 grams of heroin from McKnight and his girlfriend/co-defendant Jessany Lyons while they were preparing to board a bus back to South Carolina.
Eight of McKnight’s co-defendants earlier pleaded guilty to their role in the drug conspiracy here in South Carolina and were sentenced as follows:
- Eric Shawn Bradley of Columbia was sentenced to 210 months in prison with 8 years of court-ordered supervision;
- Michael Glover of Columbia was sentenced to 324 months in prison with 8 years of court-ordered supervision;
- Jihad Salahadeen Pollard of Columbia was sentenced to 121 months in prison with 4 years of court-ordered supervision;
- Kenneth Crawford, Jr. of Washington, D.C., and formerly of Columbia was sentenced to 120 months in prison with 8 years of court-ordered supervision;
- Charles Raheem Bradley of Columbia was sentenced to 57 months in prison with 6 years of court-ordered supervision;
- Anthony Troy Glover of Columbia was sentenced to 120 months in prison with 8 years of court-ordered supervision;
- Larry Grover Bookman of Columbia was sentenced to 70 months in prison with 6 years of court-ordered supervision; and
- Jessany Lyons of Far Rockaway, New York, was sentenced to 37 months in prison with 3 years of court-ordered supervision.
The New York heroin suppliers were charged and convicted by the United States Attorney’s Office in the Eastern District of New York for their role in the drug conspiracy.
Senior United States District Judge Joseph F. Anderson, Jr. sentenced McKnight to 60 months in prison, to be followed by a 4-year term of court-ordered supervision. There is no parole in the federal system.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The case was investigated by the Drug Enforcement Administration’s (DEA) High Intensity Drug Task Force, which was comprised of agents and officers from the DEA, Homeland Security Investigations (HSI), Federal Bureau of Investigation (FBI), United States Secret Service (USSS), Columbia Police Department, Richland County Sheriff’s Department, South Carolina Law Enforcement Division (SLED), Lexington County Sheriff’s Department, Kershaw County Sheriff’s Office, Orangeburg County Sheriff’s Office, and the Fifth Circuit Solicitor’s Office. The United States Marshals Service and the Carolinas Regional Fugitive Task Force-Charlotte Office assisted in locating the 4 fugitives. Assistant United States Attorney Stacey D. Haynes is prosecuting the case.
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Bay Area Resident Convicted of Production of Child Pornography and Sex Trafficking of A MinorRead the Press Release
SAN FRANCISCO – Kenneth Orlando Sparks was convicted of production of child pornography and sex trafficking of a minor by a federal jury, announced United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation (FBI) Special Agent in Charge Robert K. Tripp. The verdicts followed a week-long jury trial before the Hon. Vince Chhabria, United States District Judge.
The jury found that Sparks, 36, of Oakland, Calif., produced child pornography by recording multiple videos of himself having sex with a minor victim in July 2019. The jury also found that Sparks engaged in sex trafficking of a minor for his actions enticing, recruiting, and transporting the minor victim to Oakland and San Francisco to engage in commercial sex work on “the Blade” (a generic term used to describe both cities’ commercial sex strips).
Evidence at trial highlighted Sparks’ text messages and social media communications with the minor victim and others, in which Sparks arranged to transport the minor to and from the Blade and offered her advice and instruction while she was working on the Blade. Evidence at trial also demonstrated that Sparks provided the minor accommodation in the Bay Area (including at the location where the child pornography was filmed) in furtherance of her engaging in commercial sex. Trial evidence also demonstrated Sparks had been warned about the minor’s age and nevertheless transported her to the Bay Area for commercial sex on three occasions after receiving the warning.
The investigation began after Sparks and the minor victim were stopped by San Francisco Police Department officers in July 2019. During the traffic stop, SFPD officers learned the passenger in the car was a minor and observed evidence of her involvement in commercial sex work.
A federal grand jury indicted Sparks on September 29, 2021, charging him with one count each of production of child pornography, in violation of 18 U.S.C. § 2251(a); sex trafficking of a minor, in violation of 18 U.S.C. § 1591(a)(1), (b)(2), (c); coercion and enticement of a minor, in violation of 18 U.S.C. § 2422(b); and receipt of child pornography, in violation of 18 U.S.C. § 2252(a)(2). The government dismissed the receipt of pornography charge before trial and the jury acquitted Sparks of the enticement charge.
Sparks faces a maximum statutory sentence of 30 years in prison and a minimum of 15 years in prison, a lifetime term of supervised release, a $250,000 fine, plus restitution and a special assessment for the production of child pornography conviction. Sparks faces life in prison, a minimum of 10 years in prison, a lifetime term of supervised release, a $250,000 fine, as well as restitution and a special assessment for the sex trafficking of a minor conviction. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Judge Chhabria has not yet scheduled Sparks’s sentencing hearing. He remains free on bond, pending further hearings.Assistant U.S. Attorneys Ilham Hosseini and Alethea Sargent are prosecuting the case with the assistance of Veronica Hernandez and Megan Pagaduan. The prosecution is the result of an investigation by the FBI and San Francisco Police Department.
Baker Woman Sentenced to Federal Prison for Aiding and Assisting in the Preparation and Presentation of False and Fraudulent Tax ReturnsRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that Chief Judge Shelly D. Dick sentenced Bridget Rogers White, age 48, of Baker, Louisiana, to 24 months in federal prison following her convictions for aiding and assisting in the preparation and presentation of false and fraudulent tax returns. The Court further sentenced White to serve one year of supervised release following her term of imprisonment and ordered her to pay restitution in the amount of $149,933.
According to admissions made as part of her guilty plea, White operated an income tax preparation business, sometimes referred to as “Bridget Stop & Go Tax Services” or “Bridgett’s Tax Service” out of her Baker residence. Through her business, White prepared tax returns in exchange for money, but did not identify herself as the paid preparer on the returns. From January 2015 through at least June 2018, White prepared and submitted to the IRS numerous false and fraudulent U.S. Individual Income Tax Returns, known as Forms 1040, on behalf of herself and other taxpayer-clients. In the Forms 1040 and attachments thereto, among other false items, she routinely included a false Schedule C, reporting a profit or loss from a fictitious business, and a false Form 8863, reporting fictitious education expenses in order to claim an education credit referred to as the American Opportunity Credit. On certain returns, White included additional false items, such as fraudulent itemized deductions, on a Schedule A, or false dependents. For each of her taxpayer-clients, the general effect of such false information was to reduce the client’s tax liability and artificially inflate or increase the amount of the tax refund claimed by the client.
During this investigation, the IRS identified 31 false Forms 1040, which White willfully prepared and submitted on behalf of 13 individual taxpayer-clients for Tax Years 2014 through 2017. Through those 31 false and fraudulent returns alone, White’s conduct caused an actual loss of $149,993. For purposes of sentencing, White further admitted that the total tax loss attributable to her fraudulent conduct was more than $550,000.
U.S. Attorney Gathe stated, “Fraudulent tax preparers cheat the government and honest taxpayers and will be dealt with accordingly. I want to thank my prosecutors and the Internal Revenue Service Criminal Investigators for their hard work on this case. “
“Assisting taxpayers prepare accurate tax returns is the entrusted responsibility of tax practitioners,” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “White failed to live up to that responsibility by preparing false returns for herself and others. Today’s sentencing sends a message that IRS Criminal Investigation will continue investigating and recommending prosecution of return preparers who knowingly commit tax fraud.”
This matter was investigated by the Internal Revenue Service Criminal Investigation Division and was prosecuted by Assistant United States Attorney Caroline Gardner.
- Arizona man pleads guilty to attempted murder of a federal task force officer
Wednesday 22 March 2023
Wolf Point man admits role in kidnapping, assault of girl on Fort Peck Indian ReservationRead the Press Release
GREAT FALLS — A Wolf Point man accused in the kidnapping and assault of a girl by a group of individuals on the Fort Peck Indian Reservation in 2021 today admitted to his role in the abduction, U.S. Attorney Jesse Laslovich said.
Cheri Cruz Granbois, 21, pleaded guilty to kidnapping of an individual under 18. Granbois faces a mandatory minimum 20 years to life in prison, a $250,000 fine and five years to a lifetime of supervised release
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other sentencing factors. Sentencing was set for Aug. 10. Granbois was detained pending further proceedings.
The government alleged that on Sept. 15, 2021, a group of individuals lured a 15-year-old girl, identified as Jane Doe, out of her house in Wolf Point and kidnapped her. Granbois offered to pay co-defendant Kaylee Jackson to lure the victim from her house so she could be assaulted. As a result, Jane Doe was lured out of her house, and the situation escalated. Some of the individuals in the group assaulted the victim in her front yard. When eyewitnesses yelled that they were going to call the police, some of individuals kidnapped Jane Doe, forcing her into a vehicle and driving to a vacant field where the assault continued. Granbois grabbed the victim and beat her in the vehicle.
Granbois is the last of six defendants indicted in the case to plead guilty. Co-defendants Dylan Troy Jackson, Kaylee Jade Jackson, Patti Jo Annunciata Mail, Lavanchie Patricia Goodbird and Elmarie Amelia Weeks have pleaded guilty to charges and are pending sentencing.
Assistant U.S. Attorneys Wendy A. Johnson and Ryan G. Weldon are prosecuting the case, which was investigated by the FBI, Fort Peck Law Enforcement, Roosevelt County Sheriff’s Office and Wolf Point Police Department.
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Unlicensed Gun and Marijuana Dealer Sentenced to 64 Months for Illegal Handling of over 50 Firearms, Among Other ChargesRead the Press Release
Salt Lake City, Utah – A Roosevelt man was sentenced Monday to over five years imprisonment after pleading guilty to illegally purchasing and reselling firearms without a license, and multiple other drug related offenses stemming back to 2021.
According to court documents, Phillip Mahe Taufa, 41, engaged in the business of illegally dealing firearms between February 2021 through November 2021 in the District of Utah. In his plea statement, Taufa admitted he purchased over 50 firearms from federally licensed firearm dealers and individual sellers. He resold several of the firearms to individuals in California and Nevada, typically charging double the price. Taufa never possessed the required license to deal firearms. Taufa also made false statements to federally licensed firearm dealers in connection with the acquisition of the firearms. Additionally, on November 9, 2021, agents serving a search warrant at Taufa’s residence recovered 43 firearms, ammunition, over 10 pounds of marijuana, and THC cartridges. Taufa admitted he intended to distribute portions of the marijuana to others and told agents he smoked marijuana multiple times each day. He admitted to purchasing the marijuana from the dark web and received it via the U.S. mail.
The court sentenced Taufa to 64 months in a federal prison followed by a term of supervised release of three years and ordered Taufa to pay a special assessment of $600.
“As a result of the outstanding work and dedication of our law enforcement partners, the U.S. Attorney’s Office successfully prosecuted a case where guns and drugs were being unlawfully acquired and resold,” said U.S. Attorney Trina A. Higgins for the District of Utah. "These activities adversely impact communities, both in our district and in neighboring districts.”
The case was investigated jointly by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the United States Postal Inspection Service (USPIS), with assistance from the Roosevelt Police Department.Assistant U.S. Attorney, Victoria K. McFarland of the District of Utah prosecuted the case.
This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
United States and Commonwealth of Massachusetts Announce Settlement with City of Holyoke to Reduce Sewage in Connecticut RiverRead the Press Release
The Justice Department, the U.S. Environmental Protection Agency (EPA) and the Commonwealth of Massachusetts have entered into a consent decree with the City of Holyoke, Massachusetts, to resolve the Clean Water Act and Massachusetts state law. The proposed consent decree calls for Holyoke to take further remedial action to reduce ongoing sewage discharges into the Connecticut River from the city’s sewer collection and stormwater systems.
As detailed in the consent decree, Holyoke discharges pollutants from combined sewer overflow (CSO) into the Connecticut River in violation of its federal and state wastewater discharge permits. A combined sewer system collects rainwater runoff, domestic sewage and industrial wastewater into one pipe. Under normal conditions, it transports all of the wastewater to a sewage treatment plant for treatment before discharging to a waterbody. However, during periods of heavy rain, the wastewater volume can exceed the carrying capacity of the sewer system or the treatment facility, resulting in the discharge of untreated wastewater to the Connecticut River. CSO discharges contain raw sewage and are a major water pollution concern.
In full cooperation with federal and state environmental agencies, the city has taken steps in recent years to address these unlawful discharges, including finalizing a long-term overflow control plan, separating sewers and eliminating overflows in the Jackson Street area. The consent decree will require the city to undertake further sewer separation work that will eliminate or reduce additional CSO discharges, as well as requiring a $50,000 penalty for past permit violations resulting in illegal discharges to the Connecticut River.
The city will also conduct sampling of its storm sewer discharges, work to remove illicit connections and take other actions to reduce pollution from stormwater runoff. The total cost to comply with the proposed consent decree is estimated at approximately $27 million.
“Today’s settlement will significantly reduce pollution in the Connecticut River and improve water quality for the Holyoke community,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The Justice Department will continue pursuing environmental justice in communities burdened by pollution in rivers and streams to support the health and safety of all communities.”
“Fiercely protecting our environment is a civil and human rights issue and ensuring that every community has clean water is a vital part of that work. This consent decree better protects the residents of Holyoke and every single community that lives along and enjoys the Connecticut River,” said U.S. Attorney Rachael S. Rollins for the District of Massachusetts. “We will continue to require with the full force of the federal government that every community is healthy and safe.”
“Under the terms of today’s settlement, the City of Holyoke will take additional steps to reduce the amount of untreated sewage discharged during heavy rain events,” said Acting Assistant Administrator Larry Starfield of the EPA’s Office of Enforcement and Compliance Assurance. “The result of this work will be cleaner, safer water for communities that make use of the Connecticut River.”
Holyoke owns and operates a sewer collection system that services approximately 70% of the city, two-thirds of which carries both sewage and stormwater.
This settlement is part of EPA’s continuing efforts to keep raw sewage and contaminated stormwater out of our nation’s waters. Raw sewage overflows and inadequately controlled stormwater discharges from municipal sewer systems introduce a variety of harmful pollutants, including disease causing organisms, metals and nutrients that threaten our communities’ water quality and can contribute to disease outbreaks, beach and shellfish bed closings, flooding, stream scouring, fishing advisories and basement backups of sewage.
The proposed consent decree is subject to a 30-day public comment period and approval by the federal court. Once it is published in the Federal Register, a copy of the consent decree will be available on the Justice Department website at www.justice.gov/enrd/consent-decrees.
U.S. Attorney Thompson, Law Enforcement Officials to Announce Largest Methamphetamine Seizure in West Virginia HistoryRead the Press Release
CHARLESTON, W.Va. – United States Attorney Will Thompson and law enforcement officials will announce a major drug trafficking investigation on Wednesday, March 22, 2023, at 3 p.m. that had resulted in the largest seizure of methamphetamine in West Virginia history.
WHAT: Announcement of major drug trafficking investigation
WHEN: Wednesday, March 22, 2023, at 3 p.m.
WHERE: Robert C. Byrd Unites States Courthouse, 300 Virginia Street East, Charleston.
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.
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Two Co-Conspirators Indicted for Role in Prolific, Global Human Smuggling ConspiracyRead the Press Release
Note: View the indictment here.
Extensive coordination and cooperation efforts between U.S. and Mexican law enforcement authorities culminated in the International Criminal Police Organization (INTERPOL) Mexico and the Fuerza Estatal de Seguridad Ciudadana (FESC) executing the arrests of a human smuggler, along with a co-conspirator, alleged to have operated on the U.S.-Mexico border for several years.
Ofelia Hernandez-Salas, 60, and co-conspirator Raul Saucedo-Huipio, 48, were arrested in Mexico at the request of the United States pursuant to charges previously filed in the District of Arizona and unsealed last week. Hernandez-Salas and Saucedo-Huipio allegedly conspired with other smugglers to facilitate the travel of large numbers of migrants from and through Bangladesh, Yemen, Pakistan, Eritrea, India, the United Arab Emirates, Uzbekistan, Russia, Egypt, Brazil, Peru, Ecuador, Colombia, Costa Rica, Nicaragua, Honduras, El Salvador, Guatemala, Mexico, and ultimately, into the United States. Hernandez-Salas and Saucedo-Huipio allegedly charged the migrants as much as tens of thousands of dollars to make the illegal and perilous journey. In addition to the large-scale smuggling of migrants to the United States, Hernandez-Salas and Saucedo-Huipio often allegedly robbed the migrants of their personal belongings while armed with weapons such as guns and knives.
“The indictment and arrests of human smugglers send a stark message that the Department of Justice will not rest until all those who feed on the desperation of others are brought to justice,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “By dismantling an organization that has operated with impunity for so many years, we have taken yet another stride toward making the global community a safer place. It is thanks to our tremendous partnerships with countries like Mexico that we are able to draw a line in the sand and make it crystal clear that people will no longer be treated like commodities and their lives will no longer be put at risk in the name of profit.”
“Once again we see that international cooperation is far more important to a border strategy than physical barriers,” said U.S. Attorney Gary Restaino for the District of Arizona. “These defendants allegedly conspired to flout America’s immigration laws, and to victimize the very migrants they were purporting to help. Our friends and neighbors in Mexican law enforcement have been integral to our efforts to bring this smuggling ring to justice.”
The indictments against Hernandez-Salas and Saucedo-Huipio and their subsequent arrests were coordinated under Joint Task Force Alpha (JTFA). JTFA was created by Attorney General Merrick B. Garland in June 2021, in partnership with Homeland Security Secretary Alejandro N. Mayorkas, to strengthen the department’s overall efforts to combat these crimes based on the rise in prolific and dangerous smuggling emanating from Central America and impacting our border communities. JTFA’s goal is to disrupt and dismantle those human smuggling and trafficking networks operating in El Salvador, Guatemala, Honduras, and Mexico, with a focus on networks that endanger, abuse, or exploit migrants, present national security risks, or engage in other types of transnational organized crime.
“This administration has led an unprecedented anti-human smuggling campaign that leverages the full weight of the U.S. government, and it is showing results,” said Deputy Secretary John K. Tien of the Department of Homeland Security. “These indictments build on tremendous collaboration across the federal government, which includes JTFA, and the investments we continue to make in strengthening our relationships with partners in the region and throughout the hemisphere. We are unwavering in our commitment to continuing to hold transnational criminal networks accountable, and to bring them to justice.”
“Combatting human smuggling is one of our top law enforcement priorities, and a critical component of national security,” said Deputy Director and Senior Official Performing the Duties of the Director Tae D. Johnson of the U.S. Immigration and Customs Enforcement (ICE). “Homeland Security Investigations special agents are committed to holding transnational criminal organizations accountable for perpetrating this horrific crime. We will continue to employ our full range of law enforcement techniques and authorities against human smugglers – let today’s announcement serve as a reminder that we will expose you, dismantle your networks, and see that you face justice.”
“U.S. Customs and Border Protection (CBP), along with our partners, will continue to use every authority at our disposal to curtail these threats and prevent harm,” said Acting Commissioner Troy Miller of the CBP. “Our ongoing joint enforcement efforts to attack and dismantle these dangerous global criminal networks will keep our borders strong and local streets and communities safe.”
Since its creation, JTFA has successfully increased coordination and collaboration between the Justice Department, DHS, and other interagency law enforcement participants, and with foreign law enforcement partners, including El Salvador, Guatemala, Honduras, and Mexico; targeted those organizations who have the most impact on the United States; and coordinated significant smuggling indictments and extradition efforts in U.S. Attorneys’ offices across the country. JTFA is comprised of detailees from southwest border U.S. Attorneys’ offices, including the Southern District of Texas, the Western District of Texas, the District of New Mexico, the District of Arizona, and the Southern District of California, and dedicated support for the program is also provided by numerous components of the Justice Department’s Criminal Division that are part of JTFA – led by the Human Rights and Special Prosecutions Section (HRSP) and supported by the Office of Prosecutorial Development, Assistance, and Training (OPDAT), the Narcotic and Dangerous Drug Section (NDDS), the Money Laundering and Asset Recovery Section (MLARS), the Office of Enforcement Operations (OEO), the Justice Department’s Office of International Affairs (OIA), and the Organized Crime and Gang Section (OCGS). JTFA is made possible by substantial law enforcement investment from DHS, FBI, DEA, and other partners.
The investigation is also supported by the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence, and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
HSI Yuma is investigating the case with assistance from the U.S. Border Patrol (USBP), CBP, U.S. Immigration and Custom’s Enforcement and Removal Operations (ICE-ERO), FBI, and U.S. Marshals Service (USMS), working in concert with HSI Tijuana, INTERPOL, and the HSI Human Smuggling Unit in Washington, D.C. HSI also received substantial assistance from CBP’s National Targeting Center/Counter Network Division and the Office of Foreign Assets Control. The Department of Justice thanks Mexican law enforcement, who were instrumental in arresting Hernandez-Salas, including substantial assistance provided by FESC.
JTFA Co-Director James Hepburn and Trial Attorney Patrick Jasperse of HRSP and Assistant U.S. Attorney Lisa Jennis for the District of Arizona are prosecuting the case, with significant assistance provided by the Justice Department’s Office of International Affairs.
The charges contained in an indictment are merely allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Twice-Convicted Embezzler Is Sentenced to Prison for Executing Back-To-Back Fraud SchemesRead the Press Release
CHARLOTTE, N.C. – A Belmont, N.C. woman, with two prior federal embezzlement convictions, was sentenced to 57 months in prison today for executing back-to-back fraud schemes, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Lisa Buza Hill, a/k/a Lisa Rollins-Hill, 43, will also have to serve three years under court supervision after she is released from prison.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI) in North Carolina, and Chief Johnny Jennings, of the Charlotte-Mecklenburg Police Department (CMPD), join U.S. Attorney King in making today’s announcement.
According to court documents and court proceedings, in October 2012, Hill (at the time Rollins-Hill), was convicted of federal wire fraud for stealing more than $800,000 from her then-employer, a motorcycle company headquartered in Kings Mountain, N.C. At the time, Hill was ordered to serve a five-month probationary term followed by three years of supervised release and to pay $807,506.39 in restitution to the victim company.
In July 2020, the U.S. Attorney’s Office filed new charges against Hill, for embezzling funds from a Charlotte-based company where Hill worked as a Controller. According to court documents filed in this case, from September 2019 to February 2020, and while still paying restitution for the 2012 embezzlement scheme, Hill misused her access to her employer’s financial system, including her authority to issue company checks, and defrauded the company by fraudulently issuing herself approximately 15 company checks totaling over $22,000. During this time, Hill also made false statements to the U.S. Attorney’s Office’s attempts to collect court-ordered restitution owed by Hill in connection with her 2012 conviction.
In June 2021, while Hill’s criminal charges for the fraudulent check scheme were still pending, a federal bill of information was also filed against Hill, charging her with embezzling more than $550,000 from her latest employer, a development company located in Rock Hill, S.C., identified in court documents as R.W. According to court documents, from May 2020 to January 2021, Hill was employed by R.W. as the Chief Financial Officer (CFO). In that position, Hill had access to the company’s bank accounts, and her duties included the ability to make payments on behalf of the company. As court documents show, Hill misused her position and access to the company’s financial records to make unauthorized payments to herself, including to make transfers from R.W.’s accounts to pay for Hill’s personal expenses. In total, Hill transferred more than $550,000 in unauthorized funds from R.W. for her personal benefit. As Hill previously admitted in court, she used the embezzled funds to make payments for a BMW vehicle, to pay for a trip to Disney World, to make mortgage payments and to settle misuse of funds allegations from previous employers.
According to court filings and statements made during the sentencing hearing, some of the funds embezzled from R.W. were also used to make settlement payments to two additional prior employers.
In announcing today’s sentence, U.S. District Judge Max O. Cogburn Jr. emphasized the defendant’s “brazenness in continuing to steal from people while still on bond,” and noted the importance of “specific deterrence.”
Hill is in federal custody. She will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
The FBI and CMPD investigated Hill. Assistant U.S. Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte prosecuted the cases.
Trio Indicted and Arrested in Fentanyl Distribution Conspiracy Spanning from California to D.C.Read the Press Release
WASHINGTON – Federal law enforcement arrested one member of the conspiracy last month, and two remaining members of the conspiracy, this morning, for a fentanyl distribution conspiracy responsible for bringing thousands of fake blue Oxycodone (M30) pills, containing fentanyl, from California to D.C., announced U.S. Attorney Matthew M. Graves, and DEA Special Agent in Charge Jarod Forget, of the Washington Division, and Chief Robert J. Contee, III, of the Metropolitan Police Department.
Hector David Valdez, 25, of Los Angeles, California, Charles Jeffrey Taylor, 19, of Washington D.C., and Craig Eastman, 19, of Washington D.C., are charged in an indictment with conspiracy to distribute 400 grams or more of a mixture and substance containing fentanyl. Valdez was arrested in Los Angeles, California, on March 13, 2023 and was ordered detained by the Central District of California pending his transfer to the District of Columbia. Eastman and Taylor were arrested on March 22, 2023, and made their initial appearance in the District of Columbia this afternoon. They will have a detention hearing before United States Magistrate Judge Robin M. Meriweather on March 28, 2023.
According to the indictment, from on or about January 2021 to February 24, 2023, Valdez, Taylor, and Eastman conspired together to distribute 400 grams or more of a mixture and substance containing fentanyl. The indictment further charges Eastman with three additional counts of possession with intent to distribute fentanyl, including one count of possession with intent to distribute fentanyl within 1,000 feet of a protected location (a school and a public housing apartment).
Valdez was arrested on February 24, 2023, in the Central District of California. During a search of his residence, law enforcement recovered over 4.4 kilograms of blue M30 pills and a half-kilogram brick of powder, which tested positive for fentanyl. Valdez was ordered detained pending trial and is currently being transferred to the District of Columbia for prosecution. This morning, law enforcement arrested Taylor and Eastman inside Taylor’s residence and seized seven firearms while executing a search warrant.
The conspiracy charge carries a mandatory minimum sentence of 10 years in prison up to life; the possession with intent to distribute charge carries a statutory maximum sentence of 20 years in prison; and the possession within 1,000 feet of a protected location carries a mandatory minimum sentence of one year up to 40 years in prison. The sentencing will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The investigation of this case had the sponsorship and support of the federal Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF specializes in the investigation and prosecution of drug trafficking and money laundering organizations and related criminal enterprises.
The prosecutions followed a joint investigation by the DEA Washington Division in partnership with the Metropolitan Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Washington Field Division, and the U.S. Postal Inspection Service, with additional support from the DEA Los Angeles and Riverside Field Offices. It is being prosecuted by Assistant U.S. Attorneys David Henek, Andy Wang, and Matthew Kinskey of the Violence Reduction and Trafficking Offenses (VRTO) Section.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Three Individuals Sentenced in Darknet Narcotics Trafficking Conspiracy Involving Distribution of Pills Pressed with FentanylRead the Press Release
WASHINGTON – The last of three defendants was sentenced Friday in the U.S. District Court for the District of Columbia for illegal sales of opioids on various Darknet markets. The Honorable John D. Bates sentenced Alex Ogando to 12 years. Olatunji Dawodu and Luis Spencer were previously sentenced to 12 years and 12 ½ years, respectively. All three defendants were convicted of conspiracy to distribute 400 grams or more of a mixture and substance containing fentanyl.
The Darknet operations pumped kilograms of fentanyl pills into communities across the nation over the course of four years, using Darknet markets including AlphaBay, Dream, Wall Street, and Empire to reach a broad customer base. The defendants also used encrypted messaging services to communicate with and sell pills directly to customers. In exchange for cryptocurrency, the defendants sold fentanyl pills that were shipped via the U.S. Postal Service to buyers in the District of Columbia and all 50 states. The conspiracies relied on sophisticated technology to distribute and profit from a staggering quantity of pills pressed with fentanyl.
The case was prosecuted by former Assistant U.S. Attorney Laura Crane and Assistant U.S. Attorney Connor Mullin. The investigation was conducted by the FBI’s Hi-Tech Opioid Task Force, which is composed of FBI agents, analysts, and task force partners, including special agents and officers of the Food and Drug Administration’s Office of Criminal Investigations, DEA, U.S. Postal Inspection Service, and detectives from local assisting police agencies. Additional assistance was provided by the United States Attorney’s Offices for the District of Rhode Island and the Southern District of Florida, the FBI’s Miami and Boston Field Offices, and the IRS-CI Cyber Crimes Unit.
Therapist’s ex-wife convicted of defrauding Medicaid and stealing patient informationRead the Press Release
HOUSTON – A 47-year-old Katy resident has admitted to defrauding Medicaid of more than $600,000, announced U.S. Attorney Alamdar S. Hamdani.
Kay Le Farmer is the former office manager for her ex-husband - a therapist and Medicaid provider in the Houston area. Following their separation, Farmer admitted to using her ex-husband’s provider number to submit fraudulent claims to Medicaid, unbeknownst to him, for counseling services that were never provided.
In 2017, Farmer admitted to using her employment at a pediatrician’s office to obtain patient information. She then submitted more fraudulent claims to Medicaid under her ex-husband’s provider number.
In total, from 2013 until 2018, Farmer submitted, or caused the submission of, approximately $617,983.86 in claims for psychotherapy services that were not provided. Farmer admitted she was paid approximately $432,924.69 on those claims.
U.S. District Judge George C. Hanks accepted the plea and will impose sentencing June 20. At that hearing, Farmer faces up to 10 years in federal prison and a possible $250,000 fine.
Farmer was permitted to remain on bond pending sentencing.
The Texas Attorney General’s Medicaid Fraud Control Unit and the Department of Health and Human Services - Office of Inspector General conducted the investigation. Special Assistant U.S. Attorney Kathryn Olson is prosecuting the case.
Tampa Woman Sentenced to More Than Eight Years in Federal Prison for Fraud OffensesRead the Press Release
Tampa, FL – U.S. District Judge William F. Jung has sentenced Kemi Lim-Tom (38, Tampa) to eight years and four months in federal prison for bank fraud, tax fraud, credit card fraud, and aggravated identity theft. Lim-Tom was ordered to pay $345,943.49 in restitution. She had pleaded guilty on July 26, 2022.
According to court documents, in February 2018, pursuant to a search warrant, officers from the Tampa Police Department found Lim-Tom and her coconspirator, Sonya Seago, in possession of more than 1,500 individuals’ stolen personal identifying information. Subsequent investigation revealed that Lim-Tom used these identities to commit bank fraud, tax fraud, and credit card fraud.
According to court documents and evidence presented at the sentencing hearing, between 2012 and February 2018, Lim-Tom orchestrated a scheme to defraud financial institutions by manufacturing counterfeit checks with fraudulent company names and bank account numbers belonging to victim businesses and then cashing these checks for profit. Lim-Tom recruited and paid others to receive some of these checks and provide her with the proceeds. The face value of the fraudulent checks involved in the scheme was more than $600,000.
Between March 2013 and July 2014, Lim-Tom committed tax fraud by using stolen identities to obtain tax refunds from the Internal Revenue Service. Lim-Tom obtained four fraudulent tax refunds totaling more than $27,000 and attempted to obtain an additional 56 refunds totaling more than $300,000.
Between January 2015 and February 2018, Lim-Tom and Seago used stolen personal identifying information to obtain fraudulent credit cards, which they used to make more than $215,000 in purchases.
On February 15, 2023, Sonya Seago (50, Tampa) was sentenced to 32 months in federal prison for her role in the fraud offenses.
“Greed is a strong motivator for illegal activity and these sentencings demonstrate our commitment to hold criminals accountable for their corrupt behavior,” said IRS-CI Acting Special Agent in Charge Ronald A. Loecker. “These individuals demonstrated a blatant disregard for the United States tax system and caused immeasurable damage to innocent victims. IRS Criminal Investigation, along with our partners at the United States Secret Service, the Tampa Police Department, and the U.S. Attorney’s Office, remains committed to the pursuit of identity theft and other related crimes.”
This case was investigated by IRS-Criminal Investigation, the United States Secret Service, and the Tampa Police Department. It was prosecuted by Assistant United States Attorneys Jennifer L. Peresie and John Cannizzaro.
St. Petersburg Man Pleads Guilty to Possessing Ammunition as A Convicted FelonRead the Press Release
Tampa, FL - United States Attorney Roger B. Handberg announces that Dartis Cobb (35, St. Petersburg) has pleaded guilty to possession of ammunition by a convicted felon. Cobb faces up to 15 years in federal prison. He has agreed to forfeit the ammunition traceable to the offense. A sentencing date has not yet been set.
According to court documents, on August 13, 2022, Cobb was pulled over during a traffic stop. During a search of Cobb’s vehicle, a firearm and ammunition were located. As a previously convicted felon, Cobb is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Federal Bureau of Investigation and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Samantha Newman. The forfeiture is being handled by Assistant United States Attorney Suzanne Nebesky.
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.
St. Louis Man Admits Robbing Escort at GunpointRead the Press Release
ST. LOUIS – A man from St. Louis, Missouri on Wednesday admitted robbing and assaulting an escort at gunpoint in 2021.
Antwan R. Johnson, 24, pleaded guilty in front of U.S. District Judge John A. Ross to an armed robbery charge and a charge of possessing and brandishing a firearm in furtherance of a crime of violence.
Johnson admitted using Megapersonals.com to arrange a meeting with an escort in the 4200 block of Cote Brilliante Avenue in St. Louis on August 17, 2021. While in the escort’s car, Johnson pulled a gun from his waistband and robbed her of her purse, which contained two cell phones and cash. He then struck her in the head with the gun, threatened her life and fired two shots at her vehicle as it drove away, striking the vehicle once, his plea agreement says.
Johnson is scheduled to be sentenced June 27. He faces a mandatory minimum of seven years in prison for the gun charge, consecutive to the robbery charge, which carries a possible penalty of up to 20 years in prison. Both sides have agreed to recommend a 10-year sentence.
The case was investigated by the St. Louis Metropolitan Police Department. Assistant U.S. Attorney Jennifer Szczucinski is prosecuting the case.
Sioux City Woman Who Walked Away from Halfway House Sentenced to 15 Months in Federal PrisonRead the Press Release
A woman who escaped from custody was sentenced March 16, 2023, to more than one year in federal prison.
Sarah Renee Pray, age 32, from Sioux City, received the prison term after a December 15, 2022, guilty plea to one count of escape from custody.
At the guilty plea, Pray admitted that on August 31, 2022, she escaped from custody from the Dismas Charities Residential Reentry Center (RRC) in Sioux City. Pray was confined to Dismas pursuant to a conviction for conspiracy to distribute a controlled substance out of the United States District Court for South Dakota.
On August 31, 2022, at approximately 9:00 p.m., Dismas staff conducted a routine head count and were not able to locate Pray. Staff determined Pray did not have permission to be out of the facility and checked with her emergency contacts, local jails, and hospitals with negative results. Pray’s whereabouts were unknown until she turned herself in to authorities on October 4, 2022, at the Union County Jail in Elk Point, South Dakota.
Pray was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Pray was sentenced to 15 months’ imprisonment. She must also serve a 2-year term of supervised release after the prison term. There is no parole in the federal system.
Pray is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Kevin C. Fletcher and investigated by United States Marshal’s Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-4082.
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Seven Indicted for Role in Prison-Based Phone Scam and Paying Bribes to Corrections Officers at the William E. Donaldson Correctional FacilityRead the Press Release
BIRMINGHAM, Ala. – A federal indictment unsealed yesterday charges seven individuals for their participation in a prison-based telephone scam and conspiring to smuggle cell phones, controlled substances, and other contraband to inmates at the William E. Donaldson Correctional Facility (Donaldson) in Bessemer, Alabama, announced U.S. Attorney Prim F. Escalona and U.S. Secret Service Special Agent in Charge Patrick Davis.
A seventeen-count indictment filed in U.S. District Court charges Keith Devon Perry, aka “Keep Paper,” 30, of Anniston, Kierro Deandrew Nelson, aka “10K,” 32, of Montgomery, Shedrick Romon Johnson, aka, “Cett,” 43, of Montgomery, Deangelo Lamon Russell, aka “Dee,” 31, of Anniston, Desmond Arterrio Nelson, aka “Dez,” 35, of Montgomery, and Aleshia Nelson,” aka “Leshia,” 30, of Montgomery, with conspiracy to commit an offense against the United States, using a facility in interstate commerce in furtherance of an unlawful activity, and conspiracy to distribute a controlled substance. Perry, Kierro Nelson, Johnson, and Brantley Glen Wheatley, aka “Queen B,” 29, of Tuscaloosa, are charged with conspiracy to commit wire fraud. Perry, Johnson, and Wheatley are charged with wire fraud. Perry and Wheatley are charged with aggravated identity theft. Perry, Kierro Nelson, Johnson, Wheatley, and Russell are charged with conspiracy to commit money laundering.
The defendants include current and former inmates at Donaldson, as well as family members of two inmates. The charges stem from a larger investigation into fraud and corruption at Donaldson that has to date resulted in nine additional individuals being charged. Those individuals include Wilson Brian Clemons, Ricardo Poole, Sr., Kortney Jovan Simon, Otis Lee Bowers, Terry Ray Bradshaw, Rennita Renee Perry, Kiara Reshell Anderson, Ricardo Poole, Jr., and Rhonda Thompson Poole.
According to the indictment, between July 2021 and February 2022, the defendants used contraband cell phones, social engineering techniques, and spoofing technology to trick retailers into transferring them funds under fraudulent pretenses. The proceeds of these telephone scams were then used to, among other things, finance the purchase of controlled substances and to pay bribes to corrections officers at Donaldson.
The charges of conspiracy to commit an offense against the United States and use of a facility in interstate commerce in furtherance of illegal activity both carry a maximum sentence of five years in prison The charges of conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and conspiracy to distribute and possess with the intent to distribute a controlled substance each carry a maximum penalty of 20 years in prison. Aggravated identity theft carries a mandatory sentence of two years in prison.
The U.S. Secret Service Cyber Fraud Task Force investigated the case. Assistant U.S. Attorneys Edward J. Canter and John M. Hundscheid are prosecuting the case. The Alabama Department of Corrections Law Enforcement Services Division, the Drug Enforcement Administration, and the Federal Bureau of Investigation have assisted in the investigation.
An indictment contains only charges. The defendants are presumed innocent unless and until they are proven guilty.
Schuylkill County Man Charged with Drug Trafficking and Firearm OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that William Quintana, age 50, of Pottsville, Pennsylvania, was indicted by a federal grand jury for drug trafficking and firearm offenses.
According to United States Attorney Gerard M. Karam, the indictment charges Quintana with possessing with the intent to distribute quantities of methamphetamine and marijuana and possessing two pistols in furtherance of trafficking methamphetamine. The indictment further charges Quintana with possessing three firearms, including an assault rifle while knowing that he had previously been convicted of a felony.
The matter was investigated by the Federal Bureau of Investigations (FBI), the Pottsville Police Department, and the Schuylkill County District Attorney’s Office. Assistant United States Attorney James M. Buchanan is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The maximum penalty under federal law for these offenses is life 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 are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Readout of Assistant Attorney General Kristen Clarke’s Trip to LouisianaRead the Press Release
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division traveled to Louisiana as part of the division's civil rights tour to engage with stakeholders in underserved communities and reaffirm the department’s commitment to protecting the civil rights of all Americans.
On Monday, Assistant Attorney General Clarke along with U.S. Attorney Brandon Brown for the Western District of Louisiana met with approximately 20 community stakeholders in Tallulah, Louisiana. Tallulah is in Madison Parish, which has one of the highest poverty rates in the state. The meeting focused on a range of civil rights issues, including equitable education, voting rights and reentry efforts. The community leaders expressed their gratitude for the Justice Department’s willingness to engage with rural communities.
That afternoon, she traveled west to Grambling, Louisiana, to visit Grambling State University where she met with President Richard Gallot Jr. and participated in a fireside chat for students to hear their civil rights concerns, to discuss their paths as attorneys and to encourage the students to consider careers in civil rights.
For her last stop, Assistant Attorney General Clarke traveled to Shreveport, Louisiana. On Tuesday, she met with U.S. Attorney Brown’s “Focusing on the Future” Community Advisory Group to hear about racial justice issues in Shreveport, including, education, prison conditions and criminal civil rights prosecutions.
Later that afternoon, she met with the staff for the U.S. Attorney for the Western District of Louisiana and thanked them for their dedicated service and commitment to protecting civil rights.
In the coming weeks, Assistant Attorney General Clarke will continue meeting with stakeholders in underserved communities with the next stop in Memphis, Tennessee, in early April.
Assistant Attorney General Kristen Clarke (seated left center) with U.S. Attorney Brandon Brown (seated right center) with Civil Rights Division and Western District of Louisiana staff (seated) and Tallulah-Madison Parish community stakeholders (standing). Assistant Attorney General Clarke (center) with U.S. Attorney Brown (left) and Grambling State University President Gallot on campus. Assistant Attorney General Clarke and U.S. Attorney Brown took questions from students during their fireside chat discussion. Assistant Attorney General Clarke (center left) and U.S. Attorney Brown (center) with members of his “Focusing on the Future” Community Advisory Group. Assistant Attorney General Clarke and U.S. Attorney Brown with Western District of Louisiana staff in the Shreveport office and Shreveport Chief of Police Wayne Smith and Deputy Chief Antoine White.Rapid City Man Indicted for Illegal Possession of FirearmRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Rapid City, South Dakota, man for Possession of a Firearm and Ammunition by a Prohibited Person.
Takoda Walker Ghostbear, age 24, was indicted in February of 2023. He appeared before U.S. Magistrate Judge Daneta L. Wollmann on March 17, 2023, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 15 years in custody and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Ghostbear, a previously convicted felon who is prohibited from possessing firearms and ammunition, knowingly being in possession of a Glock pistol and ammunition in Rockerville in November of 2022.
The charge is merely an accusation and Ghostbear is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Rapid City Police Department. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Ghostbear was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Pottsville Man Sentenced to 78 Months in Prison for CyberstalkingRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Aaron Vandaley, age 45, of Pottsville, Pennsylvania, was sentenced on March 21, 2023, to 78 months’ imprisonment by United States District Court Judge Robert D. Mariani for cyberstalking.
According to United States Attorney Gerard M. Karam, Vandaley, with the intent to harass and intimidate other persons, engaged in a course of conduct using electronic communication systems and services of interstate commerce to cause substantial emotional distress to six victims. All six victims were former romantic partners of Vandaley or relatives and friends of his former romantic partners.
During the course of the conduct, Vandaley repeatedly made false anonymous allegations to law enforcement agencies throughout the country. He falsely accused the victims of committing heinous crimes including murder-for-hire, narcotics trafficking, human trafficking, and sexual offenses. Vandaley also sent anonymous electronic messages to the victims threatening to kidnap and murder the minor child of one of the victims. Vandaley also threatened to mail parts of that minor child back to the victim. Vandaley committed these crimes while one of the victims had a protection from abuse order against him.
Vandaley has eight previous convictions for indirect criminal contempt for failing to obey court orders of protection. During his detention in Lackawanna County Jail pending his sentencing, Vandaley continued to attempt to contact at least one of his victims by making over 100 phone calls to the victim from jail. As part of the sentence, Vandaley is not to have any further contact with any of the victims in the case.
The matter was investigated by the Federal Bureau of Investigation (FBI), the U.S. Army Criminal Investigation Division (CID), Fort Stewart, Georgia, and the Pottsville Police Department. Assistant United States Attorney James Buchanan prosecuted the case.
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Postal Worker Accused of Stealing MailRead the Press Release
WICHITA, KAN. – A federal grand jury in Wichita returned an indictment charging a Kansas woman with stealing gift cards from the mail as an employee of United States Postal Service.
According to court documents, Paula Kendall, 39, of Haysville was indicted on three counts of theft of mail by postal employee for allegedly stealing mail between November and December 2022.
The U.S. Postal Service – Office of the Inspector General is investigating the case.
Assistant U.S. Attorney Molly Gordon is prosecuting the case.
OTHER INDICTMENTS
Clifton Ray Weatherspoon, 30, and Antonio Dawayne Knight, 24, both of Wichita were indicted on one count of possession of fentanyl with intent to distribute. Weatherspoon was also indicted on one count of possession of a firearm in furtherance of a drug trafficking crime. The Federal Bureau of Investigation (FBI) is investigating the case. Assistant U.S. Attorneys Deb Barnett and Ola Odeyemi 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.
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Ponca City Man Sentenced to Serve 15 Years in Federal Prison for Sexual Abuse of a Minor in Indian CountryRead the Press Release
OKLAHOMA CITY – Yesterday, JALEN WOLFELKINS HARRIS, 29, of Ponca City, Oklahoma, was sentenced to serve 15 years in federal prison for sexual abuse of a minor in Indian country, announced United States Attorney Robert J. Troester.
On January 18, 2022, a federal grand jury returned a one-count Indictment against Harris for sexual abuse. The Indictment alleged Harris knowingly engaged in a sexual act with a victim who was physically incapable of declining participation in that sexual act. On February 16, 2022, a Superseding Information charged Harris with one count of sexual abuse of a minor in Indian country. On March 2, 2022, Harris pleaded guilty to the Superseding Information.
At a sentencing hearing yesterday, U.S. District Judge Bernard M. Jones sentenced Harris to serve 180 months in federal prison. In support of his sentence, Judge Jones cited, among other things, the serious nature of the offense and the fact that the victim was under Mr. Harris’s care. Judge Jones also ordered that upon release from prison, Harris must serve five years of supervised release. Additionally, upon his release from prison, Harris will be required to register as a sex offender. Harris has been in federal custody since December 30, 2021.
This case was the result of an investigation by the FBI Oklahoma City Field Office, the Bureau of Indian Affairs, White Eagle Police Department, and the Ponca Tribe. Assistant U.S. Attorney D.H. Dilbeck prosecuted this case.
Reference is made to court filings for further information.
Pittsburgh Man Admits Stealing FBI Agent’s Unmarked Vehicle near the Schenley Park OvalRead the Press Release
PITTSBURGH, PA – A former resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of theft of government property, Acting United States Attorney Troy Rivetti announced today.
Lashawn Norwood, 57, of the City’s Middle Hill neighborhood, pleaded guilty to theft of government property before Chief United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that on Sept. 28, 2021, an unmarked 2021 Ford Explorer owned by the Federal Bureau of Investigations and containing firearms assigned to a special agent, was stolen as it was parked near the Schenley Park Oval. The vehicle was recovered a short time later in the Hill District section of the City of Pittsburgh, where it was discovered that one of the special agent’s service weapons had been stolen from the vehicle. The recovered Ford Explorer was forensically processed by the FBI. Analysis of processed DNA evidence recovered from the Ford Explorer revealed that Norwood’s DNA was detected on both the driver’s side exterior door handle and the steering wheel. During an interview with the FBI, Norwood denied stealing the vehicle and denied ever being inside of the vehicle.
The stolen FBI service weapon was ultimately recovered by the Pittsburgh Bureau of Police on Nov. 12, 2021, after it was discovered in a post office box by a mail carrier in the Allegheny West section of the City of Pittsburgh.
Chief Judge Hornak has not yet scheduled a sentencing date. The law provides for a maximum total sentence 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history,
if any, of the defendant. Norwood remains detained pending sentencing.
Assistant United States Attorney Michael R. Ball is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the City of Pittsburgh Bureau of Police conducted the investigation leading to the Indictment in this case.
Philadelphia Man Sentenced to 5 Years for Possessing Crack CocaineRead the Press Release
PITTSBURGH, PA- A resident of Philadelphia, PA, has been sentenced in federal court to a term of imprisonment of 60 months on his conviction for violating federal narcotics laws, Acting United States Attorney Troy Rivetti announced today.
United States District Judge Robert J. Colville imposed the sentence on Zion Elam-Sturgis, 24.
According to information presented to the Court, Elam-Sturgis conspired to possess with intent to distribute and distribute 28 grams or more of a mixture and substance containing a detectible amount of cocaine base and possessed with intent to distribute 28 grams or more of a mixture and substance containing a detectible amount of cocaine base, in Butler, Pennsylvania.
Assistant United States Attorneys Craig W. Haller and Yvonne M. Saadi prosecuted this case on behalf of the government.
Acting United States Attorney Rivetti commended the Pennsylvania State Police, the Federal Bureau of Investigation, and the Butler County District Attorney’s Drug Task Force for the investigation leading to the successful prosecution of Elam-Sturgis.
Pensacola Man Sentenced to More Than 12 Years in Prison for CarjackingRead the Press Release
MOBILE, AL – A Pensacola, Florida man was sentenced to 150 months in prison for a carjacking in Baldwin County.
According to court documents, Billy Joe Burns, 34, was arrested by deputies with the Baldwin County Sheriff’s Office on July 12, 2022, after he carjacked a woman in Miflin, Alabama, and led deputies on a high-speed chase that ended in Gulf Shores. Deputies initially encountered Burns as he fled from the scene of an alleged assault at a gas station in Foley. In the course of fleeing from that scene, Burns wrecked the car that he was driving in the front yard of a house on County Road 83. Burns got out of the wrecked car, jumped a fence, and fled into nearby woods toward County Road 20 in Miflin.
As a nearby resident rounded the corner on County Road 20 in a 2015 Dodge Grand Caravan, Burns emerged from the woods and carjacked her. Armed with a broken piece of cinder block, Burns threatened the victim, reached into her open window, unlocked the door, and pulled her from the van. He then took off in the stolen van on County Road 20. Deputies pursued Burns in the stolen van for several miles down the Foley Beach Express. Burns eventually wrecked the van into a bystander truck on County Road 8 in Gulf Shores. The truck was occupied by a couple and their two-year-old child. Both the stolen van and the truck were totaled. Burns attempted to flee into a nearby field but deputies caught up to him and took him into custody.
Senior United States District Judge William H. Steele ordered Burns to serve 150 months’ imprisonment and a three-year term of supervised release upon his release from prison, during which time he will undergo drug testing and treatment, will receive mental health evaluation and treatment, and will be subject to credit restrictions. The court did not impose a fine, but Judge Steele ordered Burns to pay $25,018.41 in victim restitution and $100 in special assessments.
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
The Federal Bureau of Investigation and the Baldwin County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Justin Roller prosecuted the case on behalf of the United States.
Pensacola Insurance Company Owner Sentenced to 168 Months in Prison for Wire Fraud and Money Laundering OffensesRead the Press Release
PENSACOLA, FLORIDA – John Thomas, 52, of Pensacola was sentenced to 168 months in federal prison for wire fraud and money laundering charges related to selling fraudulent insurance policies. In addition to his prison sentence, he was ordered to pay $8,340,153.34 in restitution. Jason R. Coody, United States Attorney for the Northern District of Florida announced the sentence.
“This sentence should serve as a significant deterrent to those who would defraud our citizens, in this case depriving them of critical insurance coverage, simply to unlawfully enrich themselves,” said U.S. Attorney Coody. “Our law enforcement partners are to be commended for their tireless dedication during this investigation and prosecution. Through their collective efforts, the defendant has been held accountable and justice has been obtained for his victims.”
Between September 2013 and February 2021, Thomas operated an insurance business known as Thomas Insurance, LLC. and defrauded customers over $4.8 million in insurance premium payments through a type of insurance fraud known as premium diversion. Thomas executed this scheme by collecting insurance premiums from customers and keeping the funds for personal use instead of producing insurance policies. To conceal his acts, Thomas gave the customers fraudulent documents referencing insurance policies that did not exist.
“Today’s sentencing should serve as a warning to anyone who uses illegal means and criminal behavior to take advantage of others,” said Sherri E. Onks, Special Agent in Charge of the FBI Jacksonville Division. “The victims in this case suffered significant loss and pain as a result of this deception, never knowing they were without insurance coverage until disaster struck. The FBI and our law enforcement partners will continue to work on behalf of innocent victims and investigate and pursue those who selfishly commit fraud for personal gain at the expense of others.”
Florida CFO Jimmy Patronus said, “Insurance fraud is a serious crime that causes rates to go up for every hard-working family and business owner in Florida.” “Unfortunately, there are bad actors who think they can use fraud schemes like this to line their own pockets. I hope this case serves as a warning that if you commit fraud in Florida, you will be caught and held accountable. Thank you to the U.S. Department of Justice, the FBI, the U.S. Attorney’s Office and my dedicated insurance fraud detectives for helping put an end to this costly fraud scheme.”
This case resulted from a joint investigation by the Federal Bureau of Investigations and the Florida Department of Financial Services, Division of Investigative & Forensic Services, Bureau of Insurance Fraud. The case was prosecuted by Assistant United States Attorney Jeffrey M. Tharp.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Orleans Parish Man Pleads Guilty to Violations of the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS – THEODORE TARDIE, age 53, pled guilty on March 21, 2023, before United States District Court Judge Jay C. Zainey to a one-count superseding bill of information charging him with conspiracy to distribute and possess with the intent to distribute five hundred (500) grams or more of methamphetamine in violation of 21 U.S.C. §§ 841(a)(1), (b)(1)(A), and 846, announced U.S. Attorney Duane A. Evans.
According to court documents, TARDIE conspired with others to distribute a quantity of methamphetamine within the Eastern District of Louisiana and elsewhere on or about January 22, 2020 and continuing to on or about July 29, 2020.
TARDIE is scheduled to be sentenced on June 20, 2023. TARDIE faces a mandatory minimum term of imprisonment of ten (10) years up to life, a fine of up to $10,000,000, at least 5 years of supervised release, and a $100 mandatory special assessment fee.
This case was investigated by the Drug Enforcement Administration, Louisiana State Police, Jefferson Parish Sheriff’s Office, Gretna Major Crimes Task Force, and the Kenner Police Department. The prosecution is being handled by Assistant United States Attorney Lynn E. Schiffman of the Narcotics Unit.
Oklahoma City Man Charged with Attempted Enticement and Coercion of a Minor to Engage in Sexual ActivityRead the Press Release
OKLAHOMA CITY — Today, STEVEN NEEL HARRY, 61, of Oklahoma City was arrested on a charge of attempted coercion and enticement of a minor to engage in sexual activity, announced United States Attorney Robert J. Troester.
A criminal complaint filed today charges Harry with one count of attempt to persuade, induce, entice and coerce an individual who had not reached the age of 18 to engage in sexual activity. An affidavit filed in support of the criminal complaint indicates that Harry started communicating with an undercover law enforcement officer in September 2022. During those conversations, Harry discussed meeting an individual at a hotel in Oklahoma City to engage in sexual activity with a person whom Harry believed was a 12-year-old girl. FBI agents arrested Harry after he arrived at the metro hotel this morning.
This afternoon, Harry had his initial appearance on the complaint in federal court in Oklahoma City. Harry is detained in federal custody pending further proceedings in the case.
If found guilty of attempted coercion and enticement of a minor, the defendant faces no less than 10 years and up to life in federal prison, a fine of $250,000, and a special assessment of $55,100. The defendant would also be required to serve a term of supervised release of at least five years and up to life.
This case is the result of an investigation by the FBI Oklahoma City Field Office. Assistant U.S. Attorneys Allison Christian and Brandon Hale are prosecuting the case.
This case is part of Project Safe Childhood (PSC), a nationwide initiative by the Department of Justice (DOJ) to combat child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the DOJ Child Exploitation and Obscenity Section, PSC 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 PSC, please visit www.justice.gov/psc.
The public is reminded that these charges are merely allegations, and that the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to public records for more information. The criminal complaint filed in this case is attached.
Ocean County Man Admits Online Enticement of Minor, Distribution and Possession of Child PornographyRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, man today admitted possessing and distributing images of child sexual abuse and inducing a minor to send him sexually explicit images and engage in sexually explicit conduct over an online messaging service, U.S. Attorney Philip R. Sellinger announced.
Kevin Van Pelt, 33, of Lakehurst, New Jersey, pleaded guilty before U.S. District Judge Georgette Castner to an information charging him with one count each of online enticement of a minor to engage in criminal sexual conduct, distribution of child pornography, and possession of prepubescent child pornography.
According to documents filed in this case and statements made in court:
From August 2018 to October 2018, Van Pelt used multiple online messaging services to communicate with a minor victim, including repeatedly requesting that the minor send him sexually explicit images. Van Pelt also distributed images and videos of child sexual abuse over several online social media applications between December 2017 and March 2019. Van Pelt possessed images and videos of prepubescent child sexual abuse on his cellular phone when he was arrested by local authorities on May 1, 2019.
The charge of online enticement carries a mandatory minimum sentence of 10 years in prison, a maximum potential penalty of life in prison, and a $250,000 fine. The charge of distribution of child pornography carries a mandatory minimum sentence of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine. The charge of possession of prepubescent child pornography carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for July 20, 2023.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; and members of the Gloucester County Prosecutor’s Office, under the direction of Acting Prosecutor Christine Hoffman, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Ian D. Brater of the U.S. Attorney’s Office Criminal Division in Trenton.
vanpelt.information.pdfNigerian National Indicted for Wire and Copyright Fraud SchemeRead the Press Release
NEWARK, N.J. – A Nigerian man was charged today for his role in a fraud scheme that targeted a New Jersey-based audiobook and podcast service, U.S. Attorney Philip R. Sellinger announced.
Anyanwu Benjamin Chizitere, 30, of Enugu, Nigeria, is charged by indictment with one count of conspiracy to commit wire fraud, six counts of wire fraud, and three counts of copyright fraud.
According to the indictment:
Between February 2018 and April 2022, Chizitere conspired with others to defraud a New Jersey company and others. He posed as the rights holder for more than 800 books and contracted with more than 600 voice actors to produce audiobooks of the written works. Chizitere misrepresented that he was legally entitled to make the audiobooks available for production and distribution because he was either the author of the books or a person to whom the author of the books transferred production and distribution rights. Chizitere created hundreds of accounts through a service provided by the victim company and, using the accounts, published the infringing audiobooks on the company’s platforms, including its website and mobile application.
Chizitere and others were paid more than $250,000 in royalties based on downloads of the infringing audiobooks. The voice actors who produced the audiobooks at Chizitere’s direction were never compensated and suffered hundreds of thousands of dollars in aggregate losses.
Chizitere also directed others to purchase the infringing audiobooks using promotional codes provided to Chizitere upon opening accounts with the victim company. Chizitere directed others to leave positive reviews of the infringing audiobooks on the company’s platform to increase the likelihood that others would download the content, resulting in greater royalty payments to Chizitere.
The counts of conspiracy to commit wire fraud and wire fraud each carry a maximum potential punishment of 20 years in prison and a fine of $250,000, or twice the gross loss or gain caused by the offense, whichever is greatest. The counts of copyright fraud each carry a maximum penalty of up to one year in prison and a fine of $100,000.
U.S. Attorney Sellinger credited special agents of the FBI under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Anthony P. Torntore, Chief of the U.S. Attorney’s Office’s Cybercrime Unit.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
achizitere.indictment.pdfNew York Alleged Fraudster Arrested and Charged for a $47,000 Bank Scheme Involving Six Utah Bank Locations and VictimsRead the Press Release
Salt Lake City, Utah – A federal grand jury in Utah returned an indictment charging a New York man with bank fraud and aggravated identity fraud throughout the District of Utah.
According to court documents, Clemente Castracucco, 61, of the Bronx, New York, planned and executed a scheme to defraud Bank of Utah, First Utah Bank, First Community Bank, and Zions Bank of at least of $47,000 between November 9, 2022, and December 16, 2022. The purpose of the scheme was to defraud financial institutions by depositing counterfeit checks into accounts at the victims’ banks, then proceed to fraudulently withdraw funds from the bank accounts using account information and identification that was not Castracucco’s. On one occasion, according to the complaint and law enforcement affidavit, Castracucco entered a First Utah Bank branch in Salt Lake City and deposited a $4,500 fraudulent check, which was drawn on the account of two individuals and made payable to a Utah business. Castracucco then withdrew $7,500 from the First Utah Bank account and presented a fraudulent United States passport card purporting to be a signer on the business account and forged the signature on the check. The signer, a Utah resident, was unaware of the transaction and did not authorize it. Castracucco was arrested by the Saratoga Police Department after officers responded to a call at a Zions Bank branch to report a male attempting to cash a check not made out him. He later self-identified as Castracucco.
Castracucco is charged with six counts of bank fraud and six counts of aggravated identity fraud. The defendant is scheduled for his initial court appearance on the indictment March 23, 2023, at 1:30 p.m. in courtroom 8.4 before a U.S. Magistrate Judge at the Orrin G. Hatch United States District Courthouse in Salt Lake City, Utah.
U.S. Attorney Trina A. Higgins for the District of Utah made the announcement.
The case is being investigated jointly by the United States Department of State Diplomatic Security Service (DSS) and numerous local police departments.
Assistant U.S. Attorney, Jamie Z. Thomas, of the District of Utah prosecuted the case.
New Hampshire Man Sentenced for Possessing Fentanyl Intended for DistributionRead the Press Release
BOSTON – A Manchester, N.H., man was sentenced in federal court in Boston for possessing fentanyl with intent to distribute.
Michael Warner, 30, was sentenced by U.S. District Court Judge Indira Talwani to 77 months in prison and four years of supervised release. On Dec. 19, 2022, Warner pleaded guilty to one count of possession with intent to distribute 40 grams or more of fentanyl.
In August 2020, Warner was observed leaving a known drug source location in Lawrence. Once on the highway, law enforcement stopped Warner, who admitted to buying 70 grams of fentanyl, an amount consistent with narcotics distribution. Additionally, Warner committed this offense while on parole following a state robbery conviction.
United States Attorney Rachael S. Rollins and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Assistant U.S. Attorney Philip C. Cheng of Rollins’ Organized Crime & Gang Unit prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and 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.
Mission Man Sentenced for ArsonRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Mission, South Dakota, man convicted of Arson. The sentencing took place on March 13, 2023.
Tommy Vargas, a/k/a Tommy Lee Spotted Eagle, age 33, was sentenced to two years in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund and $74,633.15 restitution.
Vargas was indicted for Arson and Burglary by a federal grand jury in July of 2022. He pleaded guilty on December 8, 2022.
In the early morning hours of February 27, 2022, Vargas entered the Sinte Gleska University maintenance building without permission. Vargas freely moved within the building for approximately one hour, entering various rooms in the building. Vargas collected numerous items and removed them from the building. Vargas also found a gas can in the building and poured gas on the floor of building before disconnecting the surveillance system. Vargas then ignited the gas and exited the building. First responders were able to suppress the fire within 20 minutes, but the fire still caused damage to the building.
This case was investigated by Rosebud Sioux Tribe Law Enforcement Services and the South Dakota Fire Marshal. Assistant U.S. Attorney Abby Roesler prosecuted the case.
Vargas was immediately remanded to the custody of the U.S. Marshals Service.
Meridian Man Sentenced to over Six Years in Prison for Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – A Meridian, Mississippi man was sentenced to 77 months in prison for possession of a firearm by a convicted felon, announced U.S. Attorney Darren J. LaMarca of the Southern District of Mississippi and Special Agent in Charge Kurt H. Thielhorn of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
According to court documents, Billy Ray Craven, 55, was found in possession of a firearm in his vehicle by officers of the Lauderdale County Sheriff’s Office on August 6, 2019 during a traffic stop. Craven was stopped in connection with a narcotics investigation.
Craven was indicted by a federal grand jury on June 23, 2020 and he pled guilty on August 10, 2022 to possession of a firearm by a convicted felon.
The Lauderdale County Sheriff’s Office and the ATF are investigating the case.
Assistant U.S. Attorney Charles W. Kirkham prosecuted the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Medical Doctor and Treatment Facility Ordered to Pay Civil Penalties for Alleged Violations of the Opioid Addiction Recovery Fraud Prevention Act and Federal Trade Commission ActRead the Press Release
The Department of Justice, together with the Federal Trade Commission (FTC), today announced that the government will collect $100,000 in civil penalties from Defendants Dalal Akoury MD, PLLC, AWAREmed Wholistic Urgent Care, PLLC, and medical provider Dalal Akoury as part of a settlement to resolve alleged violations of the Opioid Addiction Recovery Fraud Prevention Act of 2018 and the FTC Act in connection with the advertising of treatment services of AWAREmed Health and Wellness Resource Center (AWAREmed).
In a complaint filed in the U.S. District Court for the Eastern District of Tennessee, the government alleged that, beginning since at least 2018 and continuing until at least June 16, 2022, the defendants made misleading and unsubstantiated advertising claims about the effectiveness of AWAREmed’s treatments for various illnesses, including substance use disorder, cancer, Parkinson’s Disease, and Alzheimer’s Disease. Among other things, the defendants allegedly claimed that virtually every patient at any stage of illness improved after visiting AWAREmed’s clinic, including through the remission of illnesses considered by most to be incurable. The complaint alleged these advertising claims were misleading and unlawful because they were not supported by competent and reliable scientific evidence.
“The Justice Department is committed to halting deceptive health marketing claims directed at consumers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “Misleading advertisements touting unproven medical treatments prevent consumers from making informed decisions about their health and wellness.”
“The opioid crisis claims lives and destroys communities all across the United States but especially in rural areas,” said Director Samuel Levine of the FTC’s Bureau of Consumer Protection. “Doctors peddling phony promises should know that the FTC will use its strengthened authority from Congress to stop them from exploiting Americans struggling with addiction.”
In addition to civil penalties, the stipulated order entered by the court today prohibits the defendants from making similar advertising claims in the future. It also requires the defendants to notify affected consumers and to submit compliance reports to the FTC for over a decade.
This matter is being handled by Trial Attorneys Zachary L. Cowan and Amy P. Kaplan from the Civil Division’s Consumer Protection Branch, as well as Assistant U.S. Attorneys Ben D. Cunningham and Alexa Ortiz Hadley for the Eastern District of Tennessee. James Prunty, Shira Modell, and Elizabeth Sanger represent the FTC.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit its website at https://www.FTC.gov.
McLaughlin Man Acquitted of Assault ChargesRead the Press Release
ABERDEEN - United States Attorney Alison J. Ramsdell announced that a McLaughlin, South Dakota, man was acquitted of Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury as a result of a federal jury trial in Aberdeen, South Dakota, on March 21, 2023.
Raymond Earl Otter Robe, age 47, was indicted by a federal grand jury in August of 2022.
The charges related to the alleged stabbing of two individuals in McLaughlin.
The investigation was conducted by the Bureau of Indian Affairs, and the U.S. Attorney's Office prosecuted the case.
Maui Physician Charged with Unlawful Distribution of Hydrocodone and Other Controlled SubstancesRead the Press Release
HONOLULU – Chris A. Boulange, 74, a medical doctor and resident of Wailuku, Maui, was arrested yesterday pursuant to a criminal complaint with four counts of unlawful distribution of controlled substances, including hydrocodone, alprazolam (also known as Xanax), and diazepam (also known as Valium). Boulange made his initial appearance today before Magistrate Judge Wes Reber Porter.
According to the affidavit in support of the criminal complaint, in June 2022, an undercover agent of the Drug Enforcement Administration (“DEA”) sought an appointment with Boulange, posing as a new patient seeking a prescription of opioids. Between July 2022 and November 2022, the undercover agent met with Boulange four times, each time occurring at a restaurant or bar rather than a medical office.
After each of the meetings, Boulange issued prescriptions for the undercover agent to hydrocodone. One of prescriptions also included alprazolam and another included diazepam. The complaint states that each of the prescriptions was issued outside the usual course of professional practice and without a legitimate medical purpose.
Hydrocodone is a moderately potent, orally available opioid that, in combination with acetaminophen, is widely used for treatment of acute or chronic pain. Alprazolam and diazepam belong to a class of medications called benzodiazepines, which are used primarily for sedation. All three medications, both individually and in combination with each other, are in high demand by illicit drug users.
“Licensed physicians have the ability to provide potentially dangerous addictive drugs that are otherwise illegal to possess,” said United States Attorney Clare E. Connors. “Criminally abusing the privilege to prescribe such drugs may result in criminal prosecution.”
“Trusted medical professionals who abuse their medical license to unlawfully distribute opioids ultimately contribute to the deadly opioid epidemic affecting our communities,” said DEA Honolulu District Office Assistant Special Agent in Charge Victor Vazquez. “Whether a street drug dealer or a physician, we will hold any individual accountable who peddle addictive drugs and threaten the safety of American people.”
The charges filed on March 2, 2023, consist of four counts of unlawful distribution of controlled substances, each of which carries a maximum statutory penalty of 20 years and a fine of not more than $1,000,000.
The charges and information contained in the federal complaint are merely accusations, and the defendant is presumed innocent unless and until indicted and proven guilty beyond a reasonable doubt.
This case is being investigated by the Drug Enforcement Administration in partnership with the Hawaii State Sheriff’s Division, Honolulu Police Department, and Maui Police Department. It is being prosecuted by Assistant U.S. Attorney Michael F. Albanese.
Massachusetts Man Sentenced to over 12 Years Imprisonment for Fentanyl Distribution ConspiracyRead the Press Release
CONCORD – Mikael Canario-Batista, 47, of Lawrence, Massachusetts, was sentenced to 151 months in federal prison for conspiring to distribute fentanyl, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, Canario-Batista was part of a drug-distribution conspiracy operating in Lawrence, Massachusetts that distributed fentanyl into New Hampshire. The defendant provided a stash house for fentanyl imported from an international source of supply and assisted in distributing the fentanyl to other larger distributors. The defendant was intercepted on a court authorized wiretap arranging drug purchases from a co-conspirator who was importing the drugs. The interceptions and other evidence resulted in the execution of a search warrant at the defendant’s residence which resulted in the seizure of over 7 kilograms of fentanyl.
“This is another example of the many people needed to make an international drug conspiracy function” said U.S. Attorney Young. “The defendant operated a critical way station as the dangerous fentanyl traveled from its international source to the New Hampshire streets. We will continue to investigate and prosecute those involved at every level of moving this dangerous drug.”
“DEA is committed to investigating and dismantling Drug Trafficking Organizations and individuals like Mr. Batista who are responsible for distributing lethal drugs like fentanyl to the citizens of New Hampshire,” said DEA Special Agent in Charge Brian D. Boyle. “Today’s substantial sentence not only holds Mr. Batista accountable for his crimes but serves as a warning to those traffickers who are fueling the opioid epidemic with deadly drugs in order to profit and destroy people’s lives. DEA’s top priority is combatting the opioid epidemic by working with our local, county, state and federal partners to bring to justice anyone who distributes this poison.”
“Canario-Batista played an important role in the supply chain that brings deadly opiates like fentanyl into our communities. International drug trafficking is an incredibly complex problem that can only be addressed through collaboration and we are proud to join our partners with the Drug Enforcement Administration as we work together for results like today’s sentence,” said Michael Krol, Acting Special Agent in Charge for Homeland Security Investigations in New England.
This matter was investigated by the Drug Enforcement Administration and Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorneys Seth Aframe, John Kennedy and Heather Cherniske.
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Martinsburg residents charged in gun trafficking conspiracyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Two West Virginia residents have been charged with the illegal purchase of firearms that were later used in violent crimes.
Nakita Ann Lake, age 33, and Gerald Anthony Tonsil, 31, both of Martinsburg, were indicted today on multiple federal gun charges, to include a conspiracy to transfer firearms to prohibited persons. According to court documents, the defendants visited firearms dealers in Berkeley County where Tonsil provided Lake with cash to purchase guns. Tonsil is prohibited from purchasing and owning firearms because of a prior felony and thus engaged the help of Lake. The investigation revealed that Tonsil sold some of the firearms, two of which were recovered in shooting incidents in New York.
“Gun traffickers endanger the lives of people in West Virginia and throughout the country,” said United States Attorney William Ihlenfeld. “My office will continue to pursue those who profit from putting guns in the hands of those who use them for violence.”
Lake is charged with a total of four counts and Tonsil faces seven counts. If convicted, each faces up to five years in prison for the conspiracy count and up to 10 years on each remaining count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Bureau of Alcohol, Tobacco, Firearms & Explosives investigated the case.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government.
An indictment is merely an allegation, and each defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.