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Monday 20 March 2023
National Freight Carrier to Pay Civil Penalties and Implement Stormwater Compliance Measures for Clean Water Act NoncomplianceRead the Press Release
FORT SMITH – ABF Freight System Inc. (ABF), a freight carrier that operates more than 200 transportation facilities in 47 states and Puerto Rico, has resolved allegations that it violated requirements of the Clean Water Act (CWA) relating to industrial stormwater at locations across the country. Under the proposed settlement, ABF will enhance and implement its comprehensive, corporate-wide stormwater compliance program at all its transportation facilities except those located in the state of Washington, and will pay a civil penalty of $535,000, a portion of which will be directed to the Louisiana Department of Environmental Quality, the State of Maryland, and the State of Nevada who all joined this settlement.
The complaint in the case, filed contemporaneously with the proposed consent decree, alleges that ABF failed to comply with certain conditions of their CWA permits (e.g., spills that had not been cleaned up; failure to implement required spill prevention measures; failure to implement measures to minimize contamination of stormwater runoff; failure to conduct monitoring of stormwater discharges as required; and failure to provide all required training to ABF’s employees) at nine of its transportation facilities.
“Water quality affects every citizen equally, it’s importance simply cannot be overstated,” said U.S. Attorney Clay Fowlkes for the Western District of Arkansas. “This agreement ensures that ABF will take significant steps towards ensuring that water quality is not negatively affected by its operations. This settlement would not have been possible without the commitment and cooperation of all the federal, state, and local agencies involved along with ABF.”
“Companies must comply with Clean Water Act provisions to prevent waterways from being contaminated by industrial pollutants,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “This consent decree ensures that measures will be implemented at hundreds of transportation facilities across the nation to protect nearby waterways and the communities that live along them.”
“Through this settlement ABF will implement an enhanced, comprehensive stormwater management program at transportation facilities they operate across the country,” said acting Assistant Administrator Larry Starfield of EPA’s Office of Enforcement and Compliance Assurance. “This settlement exemplifies EPA’s commitment to working with companies like ABF who notify EPA of noncompliance and then work to improve compliance with the Clean Water Act to help ensure the protection of local water resources.”
In April 2015, ABF voluntarily disclosed to EPA that it failed to obtain industrial stormwater permit coverage at multiple facilities and had discovered additional areas of noncompliance with the CWA through the company’s own compliance audits which were conducted at nearly all its facilities during 2013 and 2014. Between October 2016 and April 2019, EPA, the Louisiana Department of Environmental Quality, the State of Maryland, and the State of Nevada conducted 15 inspections of ABF’s facilities and observed noncompliance with applicable stormwater laws at both CWA permitted facilities and No Exposure Certification (NEC) facilities.
To address the extent of ABF’s noncompliance, the proposed consent decree requires ABF to continue to implement and enhance its comprehensive, corporate-wide stormwater compliance program. This includes a memorialization of stormwater roles and responsibilities, comprehensive employee training with contractor awareness, implementation of standard operating procedures, stormwater pollution prevention plan management, and tracking facility-specific corrective actions. The settlement also requires ABF to conduct tiered management oversight inspections at its permitted and NEC facilities throughout the three-year implementation of this consent decree.
Stormwater runoff from industrial facilities can pick up pollutants like trash, chemicals, oils and sediment that can harm waters throughout the country. Pollutants in stormwater can cause changes in hydrology and water quality that result in habitat modification and loss, increased flooding, decreased aquatic biological diversity, and increased sedimentation and erosion. It is critical that all facilities requiring permit coverage appropriately apply for permit coverage and adhere to applicable stormwater regulations to ensure environmental impacts are effectively minimized.
The injunctive relief measures set forth in the proposed consent decree are designed to result in effective stormwater runoff management at ABF’s facilities, including those facilities that conduct vehicle maintenance and equipment cleaning.
The consent decree, lodged in the U.S. District Court for the Western District of Arkansas, is subject to a 30-day federal public comment period and approval by the federal court. The consent decree can be viewed at: www.justice.gov/enrd/consent-decrees.
National Freight Carrier to Pay Civil Penalties and Implement Stormwater Compliance Measures for Clean Water Act NoncomplianceRead the Press Release
ABF Freight System Inc. (ABF), a freight carrier that operates more than 200 transportation facilities in 47 states and Puerto Rico, has resolved allegations that it violated requirements of the Clean Water Act (CWA) relating to industrial stormwater at locations across the country. Under the proposed settlement, ABF will enhance and implement its comprehensive, corporate-wide stormwater compliance program at all its transportation facilities except those located in the state of Washington, and will pay a civil penalty of $535,000, a portion of which will be directed to the Louisiana Department of Environmental Quality, the State of Maryland, and the State of Nevada who all joined this settlement.
The complaint in the case, filed contemporaneously with the proposed consent decree, alleges that ABF failed to comply with certain conditions of their CWA permits (e.g., spills that had not been cleaned up; failure to implement required spill prevention measures; failure to implement measures to minimize contamination of stormwater runoff; failure to conduct monitoring of stormwater discharges as required; and failure to provide all required training to ABF’s employees) at nine of its transportation facilities.
“Companies must comply with Clean Water Act provisions to prevent waterways from being contaminated by industrial pollutants,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “This consent decree ensures that measures will be implemented at hundreds of transportation facilities across the nation to protect nearby waterways and the communities that live along them.”
“Through this settlement ABF will implement an enhanced, comprehensive stormwater management program at transportation facilities they operate across the country,” said acting Assistant Administrator Larry Starfield of EPA’s Office of Enforcement and Compliance Assurance. “This settlement exemplifies EPA’s commitment to working with companies like ABF who notify EPA of noncompliance and then work to improve compliance with the Clean Water Act to help ensure the protection of local water resources.”
“Water quality affects every citizen equally, it’s importance simply cannot be overstated,” said U.S. Attorney Clay Fowlkes for the Western District of Arkansas. “This agreement ensures that ABF will take significant steps towards ensuring that water quality is not negatively affected by its operations. This settlement would not have been possible without the commitment and cooperation of all the federal, state and local agencies involved along with ABF.”
In April 2015, ABF voluntarily disclosed to EPA that it failed to obtain industrial stormwater permit coverage at multiple facilities and had discovered additional areas of noncompliance with the CWA through the company’s own compliance audits which were conducted at nearly all its facilities during 2013 and 2014. Between October 2016 and April 2019, EPA, the Louisiana Department of Environmental Quality, the State of Maryland, and the State of Nevada conducted 15 inspections of ABF’s facilities and observed noncompliance with applicable stormwater laws at both CWA permitted facilities and No Exposure Certification (NEC) facilities.
To address the extent of ABF’s noncompliance, the proposed consent decree requires ABF to continue to implement and enhance its comprehensive, corporate-wide stormwater compliance program. This includes a memorialization of stormwater roles and responsibilities, comprehensive employee training with contractor awareness, implementation of standard operating procedures, stormwater pollution prevention plan management, and tracking facility-specific corrective actions. The settlement also requires ABF to conduct tiered management oversight inspections at its permitted and NEC facilities throughout the three-year implementation of this consent decree.
Stormwater runoff from industrial facilities can pick up pollutants like trash, chemicals, oils and sediment that can harm waters throughout the country. Pollutants in stormwater can cause changes in hydrology and water quality that result in habitat modification and loss, increased flooding, decreased aquatic biological diversity, and increased sedimentation and erosion. It is critical that all facilities requiring permit coverage appropriately apply for permit coverage and adhere to applicable stormwater regulations to ensure environmental impacts are effectively minimized.
The injunctive relief measures set forth in the proposed consent decree are designed to result in effective stormwater runoff management at ABF’s facilities, including those facilities that conduct vehicle maintenance and equipment cleaning.
The consent decree, lodged in the U.S. District Court for the Western District of Arkansas, is subject to a 30-day federal public comment period and approval by the federal court. The consent decree can be viewed at: www.justice.gov/enrd/consent-decrees.
Mission Man Convicted of Assaulting a Federal OfficerRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced that a jury has convicted Dylan Blue Bird, age 30, of Mission, South Dakota, of Assaulting, Resisting, and Impeding a Federal Officer following a two-day jury trial in federal district court in Pierre, South Dakota. The verdict was returned on March 16, 2023.
The charges carry a maximum penalty of 20 years in custody and/or a $250,000 fine, five years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Blue Bird was indicted by a federal grand jury in November of 2022.
On September 30, 2022, at approximately 11:30 PM, officers with the Rosebud Sioux Tribe Law Enforcement Services attempted a traffic stop on Blue Bird after observing traffic violations in Todd County. Blue Bird did not stop and led officers on a high-speed pursuit on Highway 18, reaching speeds in excess of 110 miles per hour. During the pursuit, Blue Bird drove in the opposing lane of travel towards an officer engaged in the pursuit, forcing the officer off the roadway. The pursuit came to an end after officers deployed spike strips, disabling Blue Bird’s vehicle.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Abby Roesler prosecuted the case.
A sentencing date has not been set. The defendant was remanded to the custody of the U.S. Marshals Service.
Micronesian Couple Sentenced for Withholding Passports to Coerce Labor of Two Men in Meat Processing PlantRead the Press Release
U.S. District Chief Judge Stephanie M. Rose sentenced defendants Nesly Mwarecheong, 46, and Bertino Weires, 51, U.S. residents and Federated States of Micronesia citizens, to 48 months in prison followed by three years of supervised release and nearly $70,000 in restitution to the victims for withholding passports to coerce labor of two men in a meat processing plant.
The defendants previously pleaded guilty in October 2022 to two counts of unlawful conduct with respect to documents in furtherance of trafficking or forced labor for recruiting two young men from Micronesia to come to the United States for the purpose of coercing their labor in a meat processing plant for the defendants’ financial gain.
According to court documents, the defendants convinced the two victims to leave their homes in Micronesia in December 2019 and travel to the United States by promising them they could work in the United States and send money back to their families. Once in the United States, the defendants confiscated the victims’ passports and obtained jobs for them at a meat processing plant in Ottumwa, Iowa. Each week, the defendants took the victims to cash their paychecks before seizing almost the entire amount and leaving the victims with a nominal amount each week. The defendants used various means to compel the victims’ labor and services, including confiscating the victims’ passports and social security cards, imposing debts on them, limiting and monitoring their communication with family, physically and socially isolating them and creating a system of total financial dependence on the defendants. In so doing, the defendants created a situation where the victims either had to continue complying with the defendants’ demands or risk being homeless and without a means of supporting themselves in a foreign country where they did not speak the language and had no means of returning home.
“These defendants used the promise of well-paid jobs to lure the victims to come to the United States in search of a better future for themselves and their families,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “These defendants then proceeded to callously exploit the victims, using their power over them to profit off their hard work. The Department of Justice remains committed to seeking justice for survivors of forced labor schemes, holding perpetrators accountable and stripping wrongdoers of their illegal profits.”
“Forced labor can happen anywhere in the United States, including Iowa. We will continue fighting for victims to ensure those who exploit the promise of working in the United States to coerce labor are held accountable,” said U.S. Attorney Richard D. Westphal for the Southern District of Iowa. “Thanks to the diligent work of law enforcement, these acts of coercion and compulsion were stopped.”
Investigator Jeremy Tosh of the Ottumwa Police Department investigated the case.
Assistant U.S. Attorneys Virginia Bruner and Ryan Leemkuil for the Southern District of Iowa and Trial Attorney Christina Randall-James of the Civil Rights Division’s Human Trafficking Prosecution Unit prosecuted the case.
Micronesian Couple Sentenced for Withholding Passports to Coerce Labor of Two Men in Meat Processing PlantRead the Press Release
U.S. District Chief Judge Stephanie M. Rose sentenced defendants Nesly Mwarecheong, 46, and Bertino Weires, 51, U.S. residents and Federated States of Micronesia citizens, to 48 months in prison followed by three years of supervised release and nearly $70,000 in restitution to the victims for withholding passports to coerce labor of two men in a meat processing plant.
The defendants previously pleaded guilty in October 2022 to two counts of unlawful conduct with respect to documents in furtherance of trafficking or forced labor for recruiting two young men from Micronesia to come to the United States for the purpose of coercing their labor in a meat processing plant for the defendants’ financial gain.
According to court documents, the defendants convinced the two victims to leave their homes in Micronesia in December 2019 and travel to the United States by promising them they could work in the United States and send money back to their families. Once in the United States, the defendants confiscated the victims’ passports and obtained jobs for them at a meat processing plant in Ottumwa, Iowa. Each week, the defendants took the victims to cash their paychecks before seizing almost the entire amount and leaving the victims with a nominal amount each week. The defendants used various means to compel the victims’ labor and services, including confiscating the victims’ passports and social security cards, imposing debts on them, limiting and monitoring their communication with family, physically and socially isolating them and creating a system of total financial dependence on the defendants. In so doing, the defendants created a situation where the victims either had to continue complying with the defendants’ demands or risk being homeless and without a means of supporting themselves in a foreign country where they did not speak the language and had no means of returning home.
“These defendants used the promise of well-paid jobs to lure the victims to come to the United States in search of a better future for themselves and their families,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “These defendants then proceeded to callously exploit the victims, using their power over them to profit off their hard work. The Department of Justice remains committed to seeking justice for survivors of forced labor schemes, holding perpetrators accountable and stripping wrongdoers of their illegal profits.”
“Forced labor can happen anywhere in the United States, including Iowa. We will continue fighting for victims to ensure those who exploit the promise of working in the United States to coerce labor are held accountable,” said U.S. Attorney Richard D. Westphal for the Southern District of Iowa. “Thanks to the diligent work of law enforcement, these acts of coercion and compulsion were stopped.”
Investigator Jeremy Tosh of the Ottumwa Police Department investigated the case.
Assistant U.S. Attorneys Virginia Bruner and Ryan Leemkuil for the Southern District of Iowa and Trial Attorney Christina Randall-James of the Civil Rights Division’s Human Trafficking Prosecution Unit prosecuted the case.
McKeesport Felon Gets 9 Years in Prison after Pleading Guilty to Illegally Possessing Firearms and AmmunitionRead the Press Release
PITTSBURGH, PA - A resident of McKeesport, Pennsylvania, pleaded guilty on Friday to a one-count Indictment and was sentenced to nine years in federal prison for violating federal firearms laws, Acting United States Attorney Troy Rivetti announced today.
The defendant, Urian Jones, 47, pled guilty to felony possession of a firearm and ammunition and violating his conditions of federal supervised release. United States District Judge William S. Stickman, IV, sentenced Jones to a total of nine years for Jones’ violation of federal law and his supervised release conditions. Judge Stickman also sentenced Jones’ to term of three years of supervised release following his term of incarceration and to pay a special assessment of $100.
Jones’ sentence stems from an incident on Nov. 7, 2019, whereby he was found in possession of firearms and ammunition after having already been convicted of multiple crimes punishable by a term of imprisonment exceeding one year. At this time, Jones was still serving his term of supervised release for a prior federal case.
Assistant United States Attorneys Nicole Ann Stockey and Nicole Vasquez Schmitt prosecuted this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Pennsylvania State Parole, DANET, and the McKeesport Police Department conducted the investigation leading to the Indictment in this 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.
Man Sentenced to More than 16 Years for Importing 80 Pounds of Counterfeit Pills Containing FentanylRead the Press Release
SAN DIEGO – Moises Moreno of Moreno Valley, California, was sentenced in federal court today to 200 months in prison for importing more than 36 kilograms of fentanyl from Mexico into the United States.
After a two-day jury trial in October 2022, a jury found that Moreno knowingly imported more than 80 pounds of counterfeit prescription pills containing fentanyl from Mexico into the United States. During the trial, the prosecution presented evidence that Moreno attempted to smuggle the pills into the United States inside a sophisticated compartment in the roof of his pickup truck. The compartment was created by welding sheet metal underneath the truck’s roof to create a false ceiling where the pills were hidden.
Prosecutors also presented evidence from Moreno’s cell phone and calls Moreno made to unidentified associates after his arrest. During his calls from jail, Moreno bragged about how he “played dumb” after his arrest and “acted like he thought they found weed in his car.” Moreno further boasted to another associate about the amount of drugs he was caught smuggling and sang that he “got keys [a slang term for kilograms] coming from overseas,” a line from a popular hip hop song discussing drug trafficking.
The jury also heard the story Moreno told investigators at the time of his arrest: that he spent the weekend preceding before being caught at the border with a female friend in Mexico. Moreno told investigators that this friend must have set him up to import drugs in the vehicle without his knowledge. At the conclusion of the trial, the jury rejected Moreno’s story and returned a guilty verdict.
“This sentence sends a clear message to any would-be drug courier that you will receive a significant sentence in this district for your role in importing dangerous narcotics like fentanyl,” said U.S. Attorney Randy Grossman.
Grossman thanked the prosecution team and Homeland Security Investigations for their hard work on this case.
“HSI will continue to direct its full range of investigative authorities toward those who smuggle deadly drugs across the border and into our communities,” said Chad Plantz, special agent in charge of HSI San Diego. “This significant sentence demonstrates the U.S. government’s resolve with holding all those who traffic in drugs accountable for their actions.”
DEFENDANT Case Number 22-CR1375-BAS
Moises Moreno Age: 38 Phoenix, AZ; Moreno Valley, CA
SUMMARY OF CHARGES
Importation of Fentanyl – Title 21, United States Code, Sections 851 and 952/960
Mandatory Minimum: Fifteen years in prison
Maximum penalties: Life in prison and $10 million fine
AGENCY
Homeland Security Investigations
U.S. Customs and Border Protection
Luzerne County Man Pleads Guilty to Fentanyl TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Dario George, age 32, of Nanticoke, Pennsylvania, pleaded guilty on March 16, 2023, before U.S. District Court Judge Malachy E. Mannion, to the charge of possession with intent to distribute more than forty grams of fentanyl.
According to United States Attorney Gerard M. Karam, George admitted to distributing between 280 grams and 400 grams of fentanyl in the Luzerne County area in 2021 and 2022. The charge stems from an investigation in which investigators made four purchases of fentanyl from George and then, on May 19, 2022, obtained a search warrant for George’s residence in Nanticoke. A search of that residence resulted in the seizure of approximately 30,000 individual bags of fentanyl and additional amounts of heroin and cocaine, $8098 in U.S. currency, and drug packaging materials.
The investigation was conducted by the Pennsylvania State Police, the Pennsylvania Office of Attorney General Bureau of Narcotics Investigation, and the FBI Safe Streets Task Force. Assistant United States Attorney Robert J. O’Hara 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.
Under federal law, George faces a mandatory minimum sentence of five years in prison, a maximum sentence of forty years in prison, a term of supervised release 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.
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Lower Brule Man Sentenced for Assault of an Intimate Partner by StrangulationRead 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 Lower Brule, South Dakota, man convicted of Assault of an Intimate Partner by Strangulation. The sentencing took place on March 13, 2023.
William Thigh a/k/a William Fire Cloud, age 38, was sentenced to 20 months in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Thigh was indicted for three counts of Assault With a Dangerous Weapon, and two counts of Assault of an Intimate Partner by Strangulation by a federal grand jury in February of 2022. He pleaded guilty on December 12, 2022.
Between the November 28, 2021, and November 30, 2021, at Lower Brule, Thigh assaulted his intimate partner by strangling her. Thigh placed his hands around the victim’s neck and applied pressure.
This case was investigated by the Bureau of Indian Affairs – Office of Justice Services, Lower Brule Agency. Assistant U.S. Attorney Troy Morley prosecuted the case.
Thigh was immediately remanded to the custody of the U.S. Marshals Service.
Local man convicted at trial sentenced to 7 years in prison for illegally possessing machine ‘ghost gun’Read the Press Release
CINCINNATI – Jesse Carter, 32, of Cincinnati, was sentenced in U.S. District Court today to 84 months in prison for illegally possessing a fully-automatic weapon and possessing a pistol and ammunition after previously being convicted of a felony.
A federal jury found Carter guilty following a trial in May 2022 before U.S. District Judge Douglas R. Cole.
According to court documents and trial testimony, in March 2020, Carter illegally possessed a pistol, a fully-automatic weapon and more than 400 rounds of ammunition.
The fully-automatic weapon was an AR-style “ghost gun” with no markings. Ghost guns are often assembled from kits, do not contain serial numbers, and are sold without background checks, making them difficult to trace. In April 2022, the Department of Justice announced a new rule modernizing the definition of firearms to make ghost gun kits subject to the same regulations as traditional firearms.
The Government presented at trial that Carter referred to the ghost gun as “the big one” in jail calls in which he described the location of the ghost gun, which had been concealed behind the sub-woofer in his car.
Carter was indicted by a federal grand jury in June 2020.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio and Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), announced the sentence imposed today by Judge Cole. Assistant United States Attorney Ebunoluwa Taiwo and Special Assistant United States Attorney Meagan W. Myers of the Cincinnati City Solicitor’s Office are representing the United States in this case.
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Leaders of North Carolina Drug-Trafficking Organization Convicted of Murder-for-Hire in NorfolkRead the Press Release
NORFOLK, Va. – A federal jury convicted four Greensboro men for their role in a murder-for-hire that resulted in the death of 59-year-old Norfolk resident, Lillian Bond, on April 19, 2016.
“This day has been a long time coming, especially for the family of Lillian Bond. This drug enterprise took the life of an innocent person, a woman well known to be kind and compassionate to her friends and family, and I hope that today’s verdict brings some measure of justice to her family,” said Jessica D. Aber, United States Attorney for the Eastern District of Virginia. “We are committed to continuing to work with our federal and state law enforcement partners to reduce the amount of drug-related violence in our communities.”
According to court records and evidence presented at trial, Jaquate Simpson, 38, and Landis Jackson, 38, were the leaders of a long-running criminal enterprise responsible for distributing hundreds of kilograms of cocaine into central North Carolina and the Hampton Roads region.
On April 13, 2016, a Norfolk-based drug dealer failed to pay over $81,000 for a multi-kilogram delivery of cocaine. Simpson and Jackson’s organization retaliated by hiring a Nine Trey gang member, Kalub Shipman, 35, to kill the next person to exit a house associated with where the Norfolk dealer had been known to frequent. Shipman initially traveled to Virginia within hours of being offered the murder-for-hire contract with a fellow gang member. They conducted surveillance on the residence and then returned to Greensboro.
Shipman then recruited Nelson Evans, 32, to assist in the murder-for-hire, offering him a portion of the $10,000 Shipman would receive upon completion. Shipman and Evans traveled to Virginia on April 18, 2016. The following morning, at approximately 11:30 a.m., Shipman and Evans entered the Ingleside neighborhood of Norfolk and shot Lillian Bond as she was taking out the trash on Trice Terrace. Ms. Bond had been an employee of the Children’s Hospital for King’s Daughters for approximately 20 years and was described as a pillar in her community.
"The suspects in this case had a complete disregard for anyone but themselves, and because of pure greed, took an innocent woman’s life to send a message. While the family of Lillian Bond can never be made whole because of these men’s senseless actions, today’s convictions can hopefully bring her family some semblance of justice and closure," said Brian Dugan, Special Agent in Charge of the FBI Norfolk Field Office. "This case is a stark reminder of how gun violence devastates our local communities. The FBI is committed to continuing to work with our local, state, and federal partners to disrupt this type of crime and dismantle organized criminal enterprises."
The jury found each defendant guilty of the following charges:
Name
Charges
Jaquate Simpson, a/k/a
“Quay,” “J,” “Stacks,” “Predator”Continuing criminal enterprise; murder while engaged in continuing criminal enterprise; narcotics conspiracy; murder while engaged in a drug-trafficking offense; distribution of cocaine; use of a firearm resulting in death; conspiracy to commit murder for hire; murder for hire
Landis Jackson, a/k/a “Juve,” “Juvie”
Continuing criminal enterprise; murder while engaged in continuing criminal enterprise; narcotics conspiracy; murder while engaged in a drug-trafficking offense; distribution of cocaine; use of a firearm resulting in death; conspiracy to commit murder for hire; murder for hire
Kalub Shipman, a/k/a “Kato,” “Baydo”
Murder while engaged in a drug-trafficking offense; use of a firearm resulting in death; conspiracy to commit murder for hire; murder for hire; felon in possession of a firearm
Nelson Evans
Use of a firearm resulting in death; conspiracy to commit murder for hire; murder for hire
All four men face mandatory life sentences when sentenced. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; and Mike Goldsmith, Interim Chief of Norfolk Police, made the announcement after Senior U.S. District Judge John A. Gibney accepted the verdict.
The case was investigated by the FBI Norfolk Field Office, Department of Homeland Security, DEA, United States Postal Inspection Service, the North Carolina State Bureau of Investigation, and the Police Departments of Norfolk, Greensboro, Thomasville, Winston-Salem, and the Chesapeake Bay Bridge Tunnel, the Sheriff’s Departments of Guilford and Davidson County, and the United States Marshals Service.
Assistant U.S. Attorneys Joe DePadilla, John F. Butler and Kristin G. Bird are prosecuting the case.
The case was investigated as part of four Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Burning Man, Operation Cash Cab, Operation Goodfellas and Operation Cardinal Sin. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-cr-90.
Leader of Multi-Kilogram Cocaine Conspiracy Sentenced to 15 Years in Federal PrisonRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. today sentenced James Mirabal (46, St. Cloud) to 15 years in federal prison for conspiracy to distribute cocaine. The court also ordered Mirabal to forfeit $124,598, traceable proceeds of the offense. Mirabal had pleaded guilty on December 27, 2022. Mirabal’s two conspirators, Johnathan Beharry and Vilnarie Figueroa Matos, previously pleaded guilty. Beharry was sentenced to 9 years in federal prison on February 14, 2023. Figueroa Matos is scheduled to be sentenced on April 17, 2023.
According to court documents, Mirabal conspired with numerous others to distribute kilograms of cocaine. During the investigation, Mirabal had discussed, among other things, a seizure of 50 kilograms of cocaine in April 2022, as he arranged for the delivery of 20 kilograms of cocaine to Beharry. The drugs were later seized during Beharry’s arrest on October 17, 2022. Mirabal routinely discarded cellphones and, when arrested on October 31, 2022, was found in possession of 24 cellphones and $124,598 in currency.
This case was investigated by the Drug Enforcement Administration, with assistance from Homeland Security Investigations (HSI), the U.S. Postal Inspection Service, the U.S. Secret Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Florida Highway Patrol, the Winter Garden Police Department, the Orange County Sheriff’s Office, the Kissimmee Police Department, the Winter Park Police Department, the Clermont Police Department, the Orlando Police Department, the Apopka Police Department, the Ocoee Police Department, the Osceola County Sheriff’s Office, and the Seminole County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Dana E. Hill.
Operation Titan Fall is a multi-agency Organize Crime Drug Enforcement Task Force (OCEDTF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Last individual admits role in nationwide fraud scheme targeting elderly victimsRead the Press Release
HOUSTON – A 25-year-old Indian citizen has pleaded guilty to conspiracy to commit mail fraud, announced U.S. Attorney Alamdar S. Hamdani.
Anirudha Kalkote admitted he participated in a fraud ring from 2019-2020 which operated out of various cities including Houston. The scheme targeted elderly victims throughout the United States and elsewhere.
The ring tricked and deceived victims using various ruses and instructed them to send money via wire through a money transmitter business such as Western Union or MoneyGram, by buying gift cards and providing to the fraudsters or by mailing cash to alias names via FedEx or UPS.
Part of the scheme involved fraudsters contacting victims by phone or via internet sites for computer technical support and directing victims to a particular phone number. Once victims contacted the fraudsters, they were told various stories such as they were communicating with an expert that needed remote access to their computer in order to provide technical support services. The fraudsters then gained access to victims’ personal data and bank and credit card information.
Victims typically paid a fee to conspirators for the fake technical support but were later told they were due a refund. Through paying for “technical support” or through the “refund” process, the ring gained access to the victim’s bank account(s) and credit cards and manipulated the accounts to make it appear the victim was paid too large a refund due to a typographical error. Victims were then instructed to reimburse the ring by various means.
Victims were sometimes re-victimized multiple times and threatened with bodily harm if they did not pay.
U.S. District Judge Kenneth Hoyt accepted the plea and set sentencing for June 26. At that time, he faces up to 20 years in federal prison and a possible $250,000 maximum fine.
Four others have already pleaded guilty in relation to the scheme and are awaiting sentencing April 20. MD Azad, 26, Sumit Kumar Singh, 25, Himanshu Kumar, 25, and MD Hasib, 27 are Indian nationals who illegally resided in Houston.
All five individuals remain in custody pending sentencing.
The FBI, U.S. Postal Inspection Service and IRS-Criminal Investigation conducted the investigation with assistance from Homeland Security Investigations, Fort Bend County Sheriff’s Office and other local law enforcement agencies throughout the United States including the Sheriff’s Office and Commonwealth’s Attorney’s Office of Augusta County, Virginia. Assistant U.S. Attorneys Belinda Beek and Quincy Ollison are prosecuting the case.
The case is brought as a part of the Elder Justice Initiative. Its goal is to support and coordinate the Department’s enforcement and programmatic efforts to combat elder abuse, neglect and financial fraud and scams that target our nation’s older adults.
In March 2020, the U.S. Department of Justice launched National Elder Fraud Hotline to help combat fraud against older Americans and provide services to victims. If you or someone you know is a victim of elder fraud, we encourage you to call the National Elder Fraud Hotline at 833–FRAUD–11 (833–372–8311).
The hotline is open Monday through Friday from 10 a.m. to 6 p.m. eastern time. Services are available for speakers of English, Spanish and other languages.
LaPlace Man Charged with Cares Act FraudRead the Press Release
NEW ORLEANS – ERNEST X. TAYLOR, JR., of LaPlace, LA, age 38, was indicted on March 17, 2023, by a federal grand jury for two counts of making false statements related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) announced U.S. Attorney Duane A. Evans.
On March 27, 2020, The CARES Act became effective and established several new temporary programs and provided for the expansion of others to address the COVID-19 pandemic. Among these programs, the Paycheck Protection Program (PPP) authorized forgivable loans backed by the U.S. Small Business Administration (SBA) to small businesses to retain workers and maintain payroll, make mortgage interest payments, lease payments, and utility payments. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
According to court documents, TAYLOR made false statements to an approved lender on or about March 2, 2021, for the purpose of fraudulently obtaining a PPP loan. TAYLOR falsely claimed in his PPP application that he had not been convicted of any felony involving “fraud, bribery, embezzlement, or a false statement in a loan application or an application for federal financial assistance” within the last 5 years. In truth, TAYLOR pleaded guilty in 2016, in the Eastern District of Virginia to conspiracy to commit federal student loan fraud and mail fraud in a scheme that involved stolen identities. Based upon these misrepresentations, TAYLOR received approximately $18,500 . TAYLOR then made the same false statements to an approved lender on or about April 21, 2021, when he applied for a second draw PPP loan. TAYLOR received approximately $18,5000 for the second loan.
TAYLOR faces a sentence of up to five years in prison, up to $250,000 in fines, and up to three years of supervised release for each false statements count. There is also a $100 mandatory special assessment fee per count due after conviction.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
For more information on the Department of Justice’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
U.S. Attorney Evans praised the work of the United States Secret Service in investigating this matter. Assistant U.S. Attorney Edward J. Rivera of the Financial Crimes Unit is in charge of the prosecution.
Kirkville Man Pleads Guilty to Money LaunderingRead the Press Release
SYRACUSE, NEW YORK – Michael Pupello, age 35, of Kirkville, New York, pled guilty to one count of engaging in illegal monetary transactions.
The announcement was made by United States Attorney Carla B. Freedman and Thomas Fattorusso, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI), New York Field Division.
Pupello admitted to distributing cocaine to customers from 2017 through October 2019 and depositing the cash proceeds from the sale of cocaine into a personal checking account and a business checking account that he maintained at JPMorgan Chase Bank. Pupello admitted to using CashApp, a mobile phone application that allows users to make cashless payments to other users, to receive payment from several of his cocaine customers. Pupello further admitted to transferring the proceeds he received via CashApp to both of his accounts at JPMorgan Chase and withdrawing $14,000 of drug proceeds from his business checking account.
Pupello will be sentenced on July 12, 2023, before the Hon. David N. Hurd in Utica, N.Y. The charge filed against Pupello carries a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of at least 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The case was investigated by the Internal Revenue Service, Criminal Investigation; New York State Attorney General’s Organized Crime Task Force, the Madison/Oneida County Sheriff Drug Task Force, and the New York State Police. Assistant U.S. Attorney Tamara Thomson is prosecuting the case.
Jury Convicts Lakewood Felon of Bank Robbery, Weapons ViolationsRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces a federal jury has found James David Trujillo Jr., age 25, of Lakewood, guilty of bank robbery, being a felon in possession of a firearm, and brandishing a weapon during a federal crime of violence.
According to facts presented at trial, on June 15, 2022, Trujillo was one of two men who robbed a Canvas Credit Union on West 5th Avenue in Lakewood. The men were armed with an AR-15 and shotgun. The codefendant, Darren Michael Connolly, was wearing a GPS bracelet at the time of the robbery. Both men were covered in masks and ran from the bank to a waiting getaway car. Connolly was arrested on June 16, 2022 and charged. Investigators were able to determine the identity of the second robber soon thereafter.
Judge Christine M. Arguello presided over the five-day trial. After five hours of deliberations, the jury returned a guilty verdict convicting Trujillo on all counts on March 17, 2023. Trujillo will be sentenced on July 17, 2023. Co-defendant Darren Michael Connolly pleaded guilty on February 28, 2023, to the same charges and will be sentenced on July 18, 2023.
"We cannot thank the jury and the FBI’s Rocky Mountain Safe Streets Task Force enough for their tireless commitment to upholding justice and holding bank robbers accountable,” said United States Attorney Cole Finegan. “We will not tolerate such brazen criminal conduct in our communities.”
“Bank robbery is not a victimless crime,” said Denver FBI Special Agent in Charge Mark Michalek. “The threat of violence in these incidents can have a traumatic and lasting impact on the employees and customers who live through them. FBI Denver and our Rocky Mountain Safe Streets Task Force will continue to work with our local partners and the U.S. Attorney’s Office to pursue federal prosecution and reduce violence in our communities.”
The Federal Bureau of Investigation’s (FBI) Rocky Mountain Safe Streets Task Force investigated this case. Assistant United States Attorney Brian Dunn and Special Assistant United States Attorney Kristin Coccaro handled the prosecution.
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.
CASE NUMBER: 21-cr-00213
Canvas Credit UnionIdaho’s U.S. Attorney Announces Federal Prison Sentences for Four Fentanyl DealersRead the Press Release
BOISE – U.S. Attorney Josh Hurwit announced the prison sentences in three separate cases involving the distribution of fentanyl last week.
“Fentanyl is a powerful synthetic opioid responsible for an exponential increase in overdose deaths here in Idaho,” said U.S. Attorney Hurwit. “Through close collaboration with our state, local, tribal, and federal law enforcement partners, we continue to hold accountable those who distribute this poison in our communities.”
1. Two Boise Residents Sentenced to Over 15 Years and 10 Years, Respectively, for Running a “One Stop Mobile Drug Shop.”
In one case, Misty Dawn Sykes, 46, and Keisha Dawn Murdoch, 28, both of Boise, were sentenced to 188 and 128 months in federal prison, respectively, for possessing over 1.3 kilos of methamphetamine, more than 1,300 fentanyl pills, an ounce of cocaine, 16 grams of heroin, 16 grams of Alpha-PHP (synthetic cathinone), and 12.6 grams of fluorfentanyl (a deadly fentanyl analogue) with intent to distribute it to another.
According to court records, Sykes and Murdoch were operating a one stop mobile drug shop in the Treasure Valley area. Murdoch told investigators that she and Sykes purchased anywhere from eight to ten pounds of methamphetamine and 2,000 to 4,000 fentanyl pills every two weeks for redistribution. She also indicated that they would purchase heroin and cocaine whenever available. In addition to the controlled substances seized from Sykes and Murdoch, law enforcement also seized a Smith and Wesson semi-automatic handgun with an obliterated serial number, and nearly $30,000 in cash.
Chief U.S. District Judge David C. Nye also ordered both Sykes and Murdoch to serve five years of supervised release following their prison sentences.
U.S. Attorney Hurwit commended the work of the Drug Enforcement Administration, Ada County Sheriff’s Office, and Garden City Police Department for this investigation.
2. Washington Man Sentenced to Over Eight Years for Firearms and Fentanyl Offenses.
In a separate case, Jordan Khan, 27, of Washington, was sentenced to 98 months in federal prison for unlawful possession of a firearm and possession with intent to distribute fentanyl.
According to court records, on January 27, 2022, United States Marshals were searching for a wanted fugitive believed to be at Khan’s residence. During the search, Khan was found in possession of a .40 caliber pistol and trafficking amounts of fentanyl. He was charged and released subject to pretrial conditions. Khan was prohibited from possessing firearms due to a 2018 conviction for a residential burglary. After a federal indictment was obtained, an arrest warrant was issued. On April 18, 2022, when the federal warrant was served, Khan was found with over 700 fentanyl pills.
Khan moved to the Treasure Valley in 2021, after being released from Washington state prison for unlawful possession of a firearm, possession of a controlled substance, and taking a vehicle without permission. He has an extensive criminal history, including convictions for unlawful possession of a firearm, burglary, and assault.
“The strong partnerships we have with our federal, state, and local partners ensure repeat offenders like Mr. Khan are held accountable for their crimes,” said Acting Special Agent in Charge Cheyvoryea Gibson of the Salt Lake City FBI. “We will continue to work together to prevent gun offenses in Idaho and prevent deadly drugs like fentanyl from causing more damage in our communities.”
Chief U.S. District Judge David C. Nye also ordered Khan to serve four years of supervised release following his prison sentence. Khan pleaded guilty to the federal charges in November 2022.
U.S. Attorney Hurwit credited the Treasure Valley Metro Violent Crimes Task Force and U.S. Marshals Service for their efforts in this case. The Task Force is comprised of federal, state, and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Ada County Sheriff’s Office; Boise Police Department; Caldwell Police Department; Canyon County Sheriff’s Office; Meridian Police Department; Nampa Police Department; and Idaho Department of Correction.
The Khan case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit www.treasurevalleypartners.org.
3. Arizona Man Sentenced to 12.5 Years for Distributing Fentanyl and Methamphetamine.
In a third case, Brian David Schroeder, 47, of Arizona, was sentenced to 150 months in federal prison for distributing large quantities of fentanyl and methamphetamine.
According to court records, on September 25, 2022, Schroeder, was stopped by sheriff deputies while driving on Highway 93 through Jerome, Idaho. After deputies observed a marijuana dispensary container in the car, a search was conducted. Inside the car, police found approximately 3.25 pounds of fentanyl, 3.15 pounds of methamphetamine, and a loaded 9mm handgun. Schroeder was traveling through Idaho with the intention of distributing the drugs in Washington.
Chief U.S. District Judge David C. Nye also sentenced Schroeder to five years of supervised release following his prison sentence. Schroeder pleaded guilty to the crime in December 2022.
U.S. Attorney Hurwit thanked the Jerome County Sheriff’s Office and Jerome County Prosecuting Attorney’s Office for their work which led to the charges in the Schroeder case.
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Huntington Man Sentenced to Prison for Fentanyl CrimeRead the Press Release
HUNTINGTON, W.Va. – Eddie Guy Jewell, 49, of Huntington, was sentenced today to five years in prison, to be followed by four years of supervised release, for possession with intent to distribute 40 grams or more of fentanyl.
According to court documents and statements made in court, on July 26, 2022, law enforcement officers executed a search warrant at Jewell’s Idlewood Drive residence in Huntington. Officers found approximately 73.73 grams of fentanyl, a Bushmaster, AR-15 5.56mm rifle, and a Smith & Wesson 9mm pistol. Jewell admitted to possessing the fentanyl, intending to distribute it in the Huntington area. Jewell further admitted that the search occurred after he sold methamphetamine and fentanyl to a confidential informant on multiple occasions.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Cabell County Sheriff’s Office.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Joseph F. Adams prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-155.
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Greenfield Township School Transportation Business Owner Pleads Guilty to Tax Evasion SchemeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on March 16, 2023, Brian Propst, age 51, of Greenfield Township, Pennsylvania, pleaded guilty before U.S. District Court Judge Robert D. Mariani to a charge of tax evasion.
According to United States Attorney Gerard M. Karam, Propst operates DKB Transportation, Inc., a bussing company that provides transportation for various school districts in Northeastern Pennsylvania. During 2016 through 2019, DKB Transportation, Inc. employed a number of individuals approximately one-half of which Propst paid “under the table,” with no employment tax monies either withheld or accounting for and paid over to the IRS.
Propst agreed to cooperate fully with the IRS, and to pay all taxes owed together with interest and penalties as determined by the court.
This case was investigated by the Scranton Office of the IRS Criminal Investigation. Assistant United States Attorney Todd K. Hinkley is prosecuting the case.
The combined maximum penalty under federal law for this offense is 5 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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Green Bay Man Sentenced to Federal Prison for Manufacturing and Trafficking 3D-Printed Ghost GunsRead the Press Release
United States Attorney Gregory J. Haanstad of the Eastern District of Wisconsin announced that on March 20, 2023, Senior United States District Judge William C. Griesbach sentenced Mitchell J. Guerrero (age: 30) to a total sentence of 46 months’ imprisonment and three years’ supervised release for manufacturing and trafficking 3D-printed firearms, commonly referred to as “ghost guns” because they lack serial numbers and thus are untraceable.
According to court records, in November 2021, investigators with the Brown County Drug Task Force searched Guerrero’s residence in Green Bay, Wisconsin, and located a 3D printing lab in his basement. Near the lab, investigators seized a fully functional 3D-printed plastic handgun, 3D-printed magazines and rounds, 3D-printed silencers, and a 3D-printed “sear” that could convert an AR-15 rifle into a fully automatic weapon. Investigators also located evidence that Guerrero was in the beginning stages of manufacturing a 3D-printed AR-15.
The 3D-printed plastic handgun was sent to the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Firearms Technology Criminal Branch for a technical examination, where it successfully fired. The firearm also was subjected to a Transportation Safety Administration (TSA) metal detector. During the test, the firearm successfully went through TSA screening without setting off the alarm. This is the first known fully operational plastic firearm seized by ATF that has successfully passed through a TSA metal detector.
Investigators also discovered evidence that Guerrero offered to sell ghost guns and traded one firearm for methamphetamine. At the sentencing hearing, Judge Griesbach discussed the dangerousness of trafficking untraceable firearms and noted that this type of crime will not be tolerated.
This matter was investigated by ATF and the Brown County Drug Task Force. It was prosecuted by Assistant United States Attorney Alexander E. Duros.
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Georgia Man Pleads Guilty in Scheme to Defraud Human Capital Management AgenciesRead the Press Release
PITTSBURGH, PA - A resident of Lawrenceville, Georgia, pleaded guilty in federal court to a charge of wire fraud, Acting United States Attorney Troy Rivetti announced today.
Walter Gaillard, age 43, pleaded guilty to one count before United States District Judge Marilyn J. Horan.
In connection with the guilty plea, the court was advised that Gaillard belonged to a conspiracy that targeted human capital management agencies located throughout the United States. In connection with the scheme, a member of the conspiracy registered businesses in Georgia and Minnesota. Afterwards, an online presence for the companies was created to include email addresses and websites. In reality, the companies were shells lacking employees, clients, or physical assets. The organizer of the conspiracy then entered into management agreements in which the management agencies agreed to handle the companies’ payroll and employee withholding in exchange for reimbursement of the advanced payroll and a service fee. Between 2017 and 2019, Gaillard and other members of the conspiracy submitted fake time sheets to the management agencies which wired money into bank accounts controlled by Gaillard and other conspirators. Under the terms of his plea agreement, Gaillard agreed that he was responsible for causing a loss of $150,000-$250,000 to the management agencies. The management agencies terminated the agreements after receiving no response for repeated claims for payment.
Judge Horan scheduled sentencing for July 12, 2023, at 11:00 am. The law provides for a total sentence of not more than 20 years in prison, a fine of not more than $250,000.00, a term of supervised release of not more than three years, or a combination thereof. 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.
Pending sentencing, the court released Gaillard on bond.
Assistant United States Attorney Michael Leo Ivory is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Gaillard.
Gang Member Sentenced for Kidnapping and Drug ConspiracyRead the Press Release
BOSTON – A North Andover man was sentenced today in federal court in Boston for conspiring to commit kidnapping and conspiracy to smuggle drugs into the Essex County Jail.
Steven Rios, 25, was sentenced by U.S. District Court Judge Indira Talwani to eight years in prison and three years of supervised release. In October 2022, Rios pleaded guilty to conspiracy to commit kidnapping and conspiracy to distribute Suboxone.
Rios was charged in November 2021 along with 12 others in connection with a large drug conspiracy centering around the Gangster Disciples in Lawrence, Haverhill and Methuen. The investigation, which began in August 2020, intercepted communications between Gangster Disciples’ leaders, members and drug suppliers pertaining to their alleged distribution of fentanyl, cocaine, methamphetamine and Suboxone in Massachusetts, Maine and southern New Hampshire as well as into the Essex County Jail. The investigation intercepted phone calls between Rios and other gang members, who conspired to kidnap and assault a marijuana supplier from Maine. The dispute originated from an alleged drug debt and suspicions that the drug supplier had stolen one of Rios’s breeding dogs. Following related search warrants, Rios was again intercepted in phone calls planning to smuggle Suboxone into the Essex County Jail when he was arrested. Jail officials were able to screen Rios, who had attempted to smuggle drugs into the jail by swallowing them. After several days at the hospital, jail officials seized Suboxone from Rios.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation; and John E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement. Valuable assistance was provided by the Essex County Sheriff’s Department. Assistant U.S. Attorney Philip C. Cheng of Rollins’ Organized Crime & Gang Unit prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case is also a 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 details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Fresno Woman Sentenced to 34 Months in Prison for Role in Two Fraud SchemesRead the Press Release
FRESNO, Calif. — Sarah Jo Sumpter, 30, of Fresno, was sentenced today to two years and 10 months in prison and ordered to pay $16,984 in restitution for mail fraud, bank fraud, and aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Sumpter stole mail from a number of locations in California and used the stolen mail to commit multiple identity theft related fraud schemes. One of these schemes involved Sumpter stealing a victim’s driver’s license and impersonating the victim in order to purchase a vehicle. Another scheme involved Sumpter depositing stolen checks into victim accounts and then withdrawing funds from the accounts without the victim’s consent.
This case was the product of an investigation by the U.S. Postal Inspection Service and the Madera County Police Department. Assistant U.S. Attorneys Alexandre Dempsey and Henry Z. Carbajal III prosecuted the case.
Former Missouri State Worker Admits Stealing $140,000 in Unemployment Insurance FundsRead the Press Release
ST. LOUIS – A former Missouri state employee on Monday admitted abusing her position to send $140,500 in unearned unemployment benefits to friends, relatives and others.
Vicky Hefner, 63, of Jefferson County, Missouri, was working for the Department of Labor and Industrial Relations, Division of Employment Security as a benefit program specialist at the time of the crimes, which occurred from July to December of 2020. As part of her guilty plea to one count of theft of public money, Hefner admitted logging into the accounts of approximately eight friends, relatives and associates to either make them eligible for unemployment benefits when they were not otherwise eligible or increase their benefits. She also backdated some claims to increase benefits and changed the status of some who were receiving pandemic-related unemployment assistance to regular unemployment assistance to fraudulently increase the benefits they received, the plea says.
Hefner had worked at the agency since 2009.
At her sentencing, scheduled for June 22, Hefner could face up to 10 years in prison, a $250,000 fine, or both. She will also be ordered to repay the money.
The case was investigated by the Office of Inspector General at both the Department of Homeland Security and the Department of Labor. Assistant U.S. Attorney Edward Dowd III is prosecuting the case.
Former Middle School Paraprofessional Sentenced to 20 Years in Prison for Child Sextortion SchemeRead the Press Release
MINNEAPOLIS – A Coon Rapids man has been sentenced to 240 months in prison followed by 12 years of supervised release for a sextortion scheme that targeted minors through social media and an online gaming forum, announced United States Attorney Andrew M. Luger.
According to court documents, Glen Robert Anderson, 24, previously worked as a middle school paraprofessional in special education. Anderson used multiple internet applications and social media accounts for email, file sharing, and chatting with minors, including Snapchat and Grindr. Anderson also owned and administered an online gaming forum. To participate in the forum, users were required to submit an application, which included the age of the user. As Anderson knew, many of the users were minors. Between April 1, 2016, through August 20, 2021, Anderson used his position as the forum administrator to groom minors to produce child pornography and engage in sexual activity with him, including by providing minors with in-game perks, privileges, and other gifts. For example, Anderson coerced a 13-year-old victim to engage in sexually explicit acts for the purpose of producing images and videos. Anderson later threatened to release those sexually explicit images if the victim did not respond to Anderson’s demands.
Anderson pleaded guilty on June 28, 2022, to two counts of production of child pornography, one count of enticement of a minor, and one count of interstate communications with intent to extort. He was sentenced on March 15, 2023, before Chief Judge Patrick J. Schiltz.
This case was the result of an investigation conducted by the FBI, the Anoka County Sheriff's Office, the Erie County (Ohio) Sheriff's Office, with assistance from the Minnesota Bureau of Criminal Apprehension and Waterloo Regional Police Service in Ontario, Canada.
Assistant U.S. Attorney Angela M. Munoz and former Assistant U.S. Attorney Miranda E. Dugi prosecuted the case.
Former Director of Operations for O.C. Pharmacy Sentenced to 9½ Years in Prison for Defrauding the U.S. Military’s Health Care PlanRead the Press Release
LOS ANGELES – A Florida man who once was the director of operations at a now-shuttered Irvine pharmacy was sentenced today to 114 months in federal prison for his role in a scheme in which kickbacks were paid for prescriptions for “compounded” medications – a scam that cost Tricare, the United States military’s health care plan, more than $3 million in losses.
Marcus Orlando Armstrong, 56, of Miami, was sentenced by United States District Judge Otis D. Wright II, who also ordered Armstrong to pay $3,070,091 in restitution.
Armstrong pleaded guilty in October 2022 to two counts of paying illegal kickbacks for health care referrals.
Armstrong was the director of operations for the now-defunct Irvine Wellness Pharmacy, which made compounded medications. Compounded drugs are tailor-made products doctors may prescribe when the Food and Drug Administration-approved alternative does not meet the health needs of a patient.
In mid-2014, Armstrong agreed to pay a physician, identified in court documents as “N.G.,” kickbacks in exchange for prescriptions bearing N.G.’s name and credentials. Armstrong intended that Irvine Wellness Pharmacy would fill the prescriptions and Tricare would pay to reimburse them. Armstrong further intended to receive a portion of the reimbursements and then, out of those funds, Armstrong intended to pay kickbacks to N.G.
In February 2015, Armstrong wrote two checks – one for $16,418 and the other for approximately $10,000 – to N.G. that were noted as being for “marketing.” In fact, the checks were illegal kickback payments to N.G. in exchange for prescriptions that were not medically necessary.
A co-defendant, Sandy Mai Trang Nguyen, 42, of Irvine, was found guilty by a jury in November 2022 of 21 counts of health care fraud and one count of obstruction of a federal audit. Nguyen was the pharmacist-in-charge at Irvine Wellness Pharmacy.
According to evidence presented at Nguyen’s trial, from late 2014 to May 2015, Nguyen and others under her supervision filled approximately 1,150 compounded prescriptions for pain, scarring and migraines that Tricare reimbursed for tens of thousands of dollars per prescription. Nearly all the prescriptions were sent to the pharmacy by so-called marketers who were paid kickbacks of nearly half of the Tricare reimbursements paid to the pharmacy.
The beneficiaries were solicited to provide their Tricare insurance information for medications they did not seek out or need, and most were never examined by a physician. The prescriptions were electronically sent from marketers or telemedicine businesses and submitted by the pharmacy for reimbursement even though Tricare rules excluded reimbursements for claims based on telemedicine visits and would not, in any event, have been authorized had Tricare known the prescriptions originated based upon the payment of kickbacks.
Nguyen’s sentencing hearing is scheduled for April 3.
Co-defendants Leslie Andre Ezidore, 53, of West Los Angeles, and Alexander Michael Semenik, 51, of Las Vegas, have pleaded guilty to felony charges in this case and await sentencing.
The Department of Defense Office of Inspector General; the Defense Criminal investigative Service; the FBI; the Amtrak Office of Inspector General; IRS Criminal Investigation; the United States Department of Labor – Employee Benefits Security Administration; the California Department of Insurance; and the Office of Personnel Management Office of Inspector General investigated this matter.
Assistant United States Attorneys Mark Aveis and Ali Moghaddas of the Major Frauds Section prosecuted this case.
Former Chicago Public Schools Employee Sentenced to 18 Months of ProbationRead the Press Release
CHICAGO — A federal judge has sentenced a former Chicago Public Schools employee to 18 months of probation after he pleaded guilty to one count of making false statements to the Federal Bureau of Investigation.
PEDRO SOTO, 48, of Chicago admitted in a plea agreement that he intentionally misled the FBI while the agency was conducting a criminal investigation into Soto’s interactions with a lobbyist and the lobbyist’s colleague regarding the awarding of a custodial services contract valued at approximately $1 billion. Soto was a member of a CPS evaluation committee tasked in 2016 with recommending to the Chicago Board of Education which company or companies CPS should hire to perform the services, and the lobbyist and the lobbyist’s colleague were assisting one of the companies bidding for the contract. Soto admitted in the plea agreement that he repeatedly provided non-public information to the lobbyist’s colleague concerning the award of the contract, and that he had done so, in part, because the lobbyist’s colleague had promised to extend various benefits to Soto. Soto further admitted that in 2019 he intentionally made false statements to the FBI when he denied having provided the lobbyist’s colleague with inside information about the awarding of the contract.
U.S. District Court Judge Sharon Johnson Coleman sentenced Soto 18 months of probation, along with a $3,000 fine and 100 hours of community service on March 16, 2023.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois and Robert W. Wheeler, Jr., Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The Chicago Board of Education Inspector General’s Office provided valuable assistance. The government is represented by Assistant U.S. Attorneys Amarjeet Bhachu and Michelle Kramer.
Former Bureau of Prisons Corrections Officer Sentenced to 10 Years in Federal Prison for Sexually Assaulting Inmate in Los Angeles JailRead the Press Release
LOS ANGELES – A former corrections officer with the Federal Bureau of Prisons (BOP) who sexually assaulted a woman in custody was sentenced today to 120 months in federal prison.
Jose Viera, 49, of Monterey Park, was sentenced by United States District Judge Otis D. Wright II, who ordered Viera immediately remanded into custody. Judge Wright also scheduled a June 20 restitution hearing in this case.
Viera pleaded guilty in May 2022 to one count of deprivation of rights under color of law.
Viera was a BOP corrections officer assigned to work at Metropolitan Detention Center-Los Angeles (MDC-LA), a federal prison which holds male and female pre-trial detainees and persons serving custodial sentences. In his role as corrections officer, Viera was required to uphold the Constitution and ensure the safety and security of persons housed at MDC-LA.
In December 2020, Viera was assigned to supervise incarcerated women who were quarantined due to COVID-19 exposure and infection. During the morning of December 20, 2020, Viera entered the cell of the victim, who was in COVID-19 isolation, as he had done on previous occasions to bring her breakfast. Instead, Viera laid down next to the victim in her bed, sandwiching her between his body and the wall. Then, he sexually assaulted her. Viera committed this assault despite knowing that the victim did not consent and that his actions violated her constitutional rights.
When the FBI and the Department of Justice’s Office of the Inspector General (DOJ-OIG) conducted a voluntary interview of Viera about the sexual assault allegations, Viera lied to federal agents about his misconduct.
“By breaching his duty of trust, Viera harmed not only the victim, but also the system of justice he was entrusted to serve,” said United States Attorney Martin Estrada. “My office will continue in its mission to ensure that no one is above the law, regardless of their position, and that victims receive justice.”
“A corrections officer’s job is to ensure the safety and security of those in custody,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Instead, the defendant’s actions did just the opposite, destroying this woman’s sense of peace and trust in law enforcement. We hope this sentence provides a measure of justice to the victim and a reminder to would-be offenders that the Justice Department is committed to ensuring that those who work in federal prisons and abuse their positions of authority by sexually assaulting people in their care will be held accountable.”
“Mr. Viera abdicated his duty and obligation to treat the prisoners in his care with dignity,” said Donald Alway, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “The FBI prioritizes cases involving abuse under the color of law and works with our partners to bring justice to those who deny others their Constitutionally protected rights.”
“Viera abused his power and sexually assaulted the inmate in her cell while she was extremely vulnerable in COVID-19 isolation,” said Special Agent in Charge Zachary Shroyer for the Justice Department’s Office of the Inspector General, Los Angeles Field Office. “Today’s sentencing shows that Correctional Officers that abuse inmates will be brought to justice.”
The FBI and DOJ-OIG investigated this matter.
Assistant United States Attorney Thomas F. Rybarczyk of the Public Corruption and Civil Rights Section, and Special Litigation Counsel Fara Gold and Trial Attorney Nikhil Ramnaney of the Criminal Section of the Justice Department’s Civil Rights Division prosecuted this case.
Former BOP Corrections Officer Sentenced to 10 Years in Prison for Sexually Assaulting a Woman in Federal Custody in Los AngelesRead the Press Release
A former corrections officer with the Federal Bureau of Prisons (BOP), was sentenced to 120 months and three years of supervised release today in federal court in the Central District of California for sexually assaulting a woman in custody.
Jose Viera, 49, was sentenced for one felony count of deprivation of rights under color of law for sexually assaulting a woman in custody in December 2020. He entered his guilty plea on May 24, 2022.
According to court documents, at the time of the assault, Viera was a BOP corrections officer assigned to work at Metropolitan Detention Center-Los Angeles (MDC-LA), a federal prison that holds male and female pre-trial detainees and persons serving custodial sentences. In his role as corrections officer, Viera was required to uphold the U.S. Constitution and ensure the safety and security of persons housed at MDC-LA. In March 2022, Viera was placed on administrative leave.
In December 2020, Viera was assigned to supervise incarcerated women who were quarantined due to COVID-19 exposure and infection. During the morning of Dec. 20, Viera entered the cell of the victim, who was in COVID-19 isolation, as he had done on previous occasions to bring her breakfast. On that morning, Viera laid down next to the victim in her bed, sandwiching her between his body and the wall. Then, he sexually assaulted the victim. Viera committed this assault despite knowing that his actions violated her constitutional rights. When the Department of Justice, Office of the Inspector General (DOJ-OIG), and the FBI conducted a voluntary interview with Viera about the sexual assault allegations, Viera lied to federal agents about his misconduct.
“Law enforcement officials must be held accountable when they abuse their authority and exploit their power to sexually assault the very people they are sworn to protect,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This defendant’s actions destroyed this woman’s sense of peace, caused incalculable pain, and shattered her trust in law enforcement. We hope this sentence stands as a reminder to would-be offenders that the Justice Department is committed to holding officials accountable when they sexually assault people held inside jails and prisons.”
“By breaching his duty of trust, Viera harmed not only the victim, but also the system of justice he was entrusted to serve,” said U.S. Attorney Martin Estrada for the Central District of California. “My office will continue in its mission to ensure that no one is above the law, regardless of their position, and that victims receive justice.”
“Viera abused his power and sexually assaulted the inmate in her cell while she was extremely vulnerable in COVID-19 isolation,” said Special Agent in Charge Zachary Shroyer for the DOJ-OIG, Los Angeles Field Office. “Today’s sentencing shows that Correctional Officers that abuse inmates will be brought to justice.”
“Law enforcement officers are charged with upholding civil rights. The defendant in this case completely abused his position of power,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI is dedicated to protecting the American people and pursuing justice on behalf of victims in cases like this.”
The DOJ-OIG Los Angeles Field Office and the FBI Los Angeles Field Office are investigating the case.
Assistant U.S. Attorney Thomas Rybarczyk for the Central District of California and Trial Attorney Nikhil Ramnaney and former Special Litigation Counsel Fara Gold of the Civil Rights Division’s Criminal Section are prosecuting the case.
Federal Judge Sentences Mint Hill Man to 30 Years in Prison for Sexual Exploitation of A MinorRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Robert J. Conrad Jr. sentenced Brandon Grunwald, 47, of Mint Hill, N.C., to 360 months in prison for sexual exploitation of a minor, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Upon release from custody, Grunwaldt will also be placed on supervised release for 20 years and will be required to register with the Sex Offender Registry Board in any state or jurisdiction where he works or resides.
Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Chief Joseph Hatley of the Mint Hill Police Department join U.S. Attorney King in making today’s announcement.
According to filed court documents, trial evidence, and today’s sentencing hearing, between February 16 and October 31, 2020, Grunwaldt secretly recorded a minor on five different occasions while the minor was undressing and showering. The Mint Hill Police Department initiated an investigation into Grunwaldt after the minor reported discovering a cell phone hidden in the bathroom recording the minor while using the shower. Over the course of the investigation, law enforcement seized Grunwaldt’s cell phones and other electronic devices. A forensic analysis of the devices by Homeland Security Investigations revealed that Grunwaldt created and possessed five videos that depicted the minor using the shower and undressing. Law enforcement also determined that Grunwaldt frequently visited a website with pornographic videos similar to those he made. On February 15, 2022, a federal jury convicted Grunwaldt of five counts of production of child pornography and one count of possession of child pornography.
In announcing today’s sentence, Judge Conrad said that Grunwaldt’ s offense involved some of the most vile and disturbing conduct he has seen.
Grunwaldt is currently in federal custody. He 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 commended HSI and the Mint Hill Police Department for their investigation of the case.
Assistant United States Attorney Stephanie Spaugh, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Federal Grand Jury Indicts Tennessee Man and Kentucky Woman for Sex Trafficking ConspiracyRead the Press Release
Louisville, KY – A federal grand jury in Louisville, Kentucky, returned an indictment on March 8, charging a Tennessee man with sex trafficking by force, fraud, or coercion. The indictment further charged that the defendant conspired with a Kentucky woman to commit that crime.
According to the indictment, between Aug. 8 and 11, 2022, Portier Q. Govan, 36, of Memphis, Tennessee, used force, threats of force and coercion to compel an adult woman to engage in commercial sex. The indictment also charges Govan and Brittany R. Howard, 24, of Bowling Green, Kentucky, with entering into an agreement to commit sex trafficking by force, fraud, and coercion.
Govan made his initial court appearance before a U.S. Magistrate Judge in the Western District of Kentucky on March 20, 2023. Howard is expected to make her initial appearance later this week. If convicted of sex trafficking, Govan faces a minimum sentence of 15 years in prison, up to life imprisonment. If convicted of conspiracy to commit sex trafficking, Govan and Howard face a maximum sentence of life imprisonment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Michael A. Bennett of the Western District of Kentucky, and Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office made the announcement.
The Bowling Green Police Department and the FBI Louisville Office investigated the case.
Assistant U.S. Attorney Amanda E. Gregory for the Western District of Kentucky and Trial Attorney Francisco Zornosa of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.
The FBI is asking anyone with information about Portier Govan or Brittany Howard to contact the FBI Bowling Green Resident Agency at (270) 781-4734. If you or someone you know is a victim of human trafficking, please call the National Human Trafficking Hotline at 1 (888) 373-7888.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Federal Grand Jury Indicts Tennessee Man and Kentucky Woman for Sex Trafficking ConspiracyRead the Press Release
A federal grand jury in Louisville, Kentucky, returned an indictment on March 8, charging a Tennessee man with sex trafficking by force, fraud or coercion. The indictment further charged that the defendant conspired with a Kentucky woman to commit that crime.
According to the indictment, between Aug. 8 and 11, 2022, Portier Q. Govan, 36, of Memphis, Tennessee, used force, threats of force and coercion to compel an adult woman to engage in commercial sex. The indictment also charges Govan and Brittany R. Howard, 24, of Bowling Green, Kentucky, with entering into an agreement to commit sex trafficking by force, fraud and coercion.
Govan made his initial court appearance before a U.S. Magistrate Judge in the Western District of Kentucky today. Howard is expected to make her initial appearance later this week. If convicted of sex trafficking, Govan faces a minimum sentence of 15 years in prison, up to life imprisonment. If convicted of conspiracy to commit sex trafficking, Govan and Howard face a maximum sentence of life imprisonment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. There is no parole in the federal system.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Michael A. Bennett for the Western District of Kentucky, and Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office made the announcement.
The Bowling Green Police Department and the FBI Louisville Field Office investigated the case.
Assistant U.S. Attorney Amanda E. Gregory for the Western District of Kentucky and Trial Attorney Francisco Zornosa of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.
The FBI is asking anyone with information about Portier Govan or Brittany Howard to contact the FBI Bowling Green Resident Agency at (270) 781-4734. If you or someone you know is a victim of human trafficking, please call the National Human Trafficking Hotline at 1 (888) 373-7888.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Fast Food Cook Sentenced to 90 Months in Prison for Possessing Firearm at WorkRead the Press Release
EAST ST. LOUIS, Ill. – A U.S. District Judge sentenced a man to 90 months in federal prison after he was found by police with a loaded weapon while working as a cook at the Collinsville Jack in the Box in April 2022.
Tony Ross, 27, pled guilty to one count of felon in possession of a firearm. In addition to the prison sentence, he received three years of supervised release, a $100 fine, and $100 in special assessments.
“In an effort to keep guns out of the hands of dangerous individuals, convicted felons forgo their right to lawfully possess a firearm,” said U.S. Attorney Rachelle Aud Crowe. “This offender had a lengthy criminal history related to gun violence, and I appreciate the diligent work by ATF agents and troopers with ISP to remove this defendant and his firearm from the Metro East.”
“At the core of ATF’s mission to protect the public, is holding accountable those who violate federal firearms laws,” said Butch Hansen, Special Agent in Charge of ATF’s Kansas City Field Division. “As this case demonstrates, we will continue to work with our law enforcement partners to ensure the safety of the communities we serve.”
“Getting repeat criminal offenders who threaten the safety of our communities off the streets is a top priority for the Illinois State Police Public Safety Enforcement Group,” said ISP Zone 6 Commander Mike Lewis. “Aggressive investigation and prosecution of criminals are vital to reducing violence in our neighborhoods.”
According to court documents, law enforcement personnel with the Illinois State Police Public Safety Enforcement Group entered Jack in the Box in April 2022 to question Ross about an unrelated investigation. When Ross saw police enter the restaurant, he tried to conceal his gun by removing it from his waistband and hiding it under the deep fryer.
At the time of this incident, Ross was on parole with the Missouri Department of Corrections for a felony conviction of 2nd Degree Robbery from 2018.
The investigation was conducted by ISP’s Public Safety Enforcement Group and ATF. Assistant U.S. Attorney Ali Burns prosecuted the case.
Ex-Federal Correction Officer Pleads Guilty to Taking Bribes in Exchange for Smuggling Contraband into the Metropolitan Detention Center in BrooklynRead the Press Release
Earlier today, in federal court in Brooklyn, former federal correction officer Jeremy Monk pleaded guilty to receiving bribes in exchange for providing contraband to prison inmates detained at the Metropolitan Detention Center (MDC) in Brooklyn. Today’s proceeding was held before United States Magistrate Judge James R. Cho. When sentenced, the defendant faces a maximum sentence of 15 years’ imprisonment.
Breon Peace, United States Attorney for the Eastern District of New York, announced the guilty plea.
“The defendant has admitted to violating his duty as a federal correction officer by taking bribes in exchange for smuggling contraband into the Metropolitan Detention Center, a serious betrayal of his fellow correction officers and staff, incarcerated individuals, and the trust placed in him by the government,” stated United States Attorney Peace. “This Office is focused on rooting out corruption that threatens the safety and security of our federal and local jails.”
Mr. Peace expressed his thanks to the Department of Justice, Office of Inspector General, and the Federal Bureau of Investigation, New York Field Office, for their investigative work on the case.
According to court documents and facts presented at the guilty plea proceeding, Monk worked as a correction officer at the MDC from May 2020 until he voluntarily resigned on April 18, 2022. On multiple occasions, Monk smuggled contraband into the MDC in exchange for bribes. For example, on December 5, 2020, MDC staff members conducted a search of the cell of an incarcerated individual (Inmate-1) because they suspected that Inmate-1 was in possession of marijuana due to an odor coming from his cell. Although no marijuana was found, MDC staff recovered a cellular telephone, which is contraband in a federal correctional facility. Financial records show that three days before MDC staff recovered the cellular telephone, the romantic partner of Inmate-1 attempted to make seven payments to Monk via Cash App in amounts ranging from $750 to $4,000. All seven transactions were blocked by Cash App. On April 15, 2022, three days before Monk resigned, MDC staff learned that Monk had agreed to accept $10,000 from inmates in exchange for his smuggling contraband into the MDC and leaving it in a staff restroom. That afternoon, Monk was observed entering the staff restroom consistent with the information MDC staff received. After Monk left the restroom, MDC staff found more than nine ounces of marijuana hidden on a shelf under floor buffing pads.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorney Philip Pilmar is in charge of the prosecution.
The Defendant:
JEREMY MONK
Age: 32
Brooklyn, New YorkE.D.N.Y. Docket No. 22-CR-442
Ewa Beach Couple Pleads Guilty to Tax FraudRead the Press Release
A Hawaii couple has pleaded guilty to conspiring to defraud the United States by obtaining a fraudulent tax refund and then thwarting IRS efforts to recoup it.
According to court documents, Michael and Brigida Chock of Ewa Beach conspired with a third individual to prepare a false 2014 amended individual income tax return (Form 1040X) and a false miscellaneous income form (Form 1099-MISC) purportedly issued by a mortgage lender to Michael Chock. The tax return falsely reported an inflated tax withholding amount based on the fraudulent Form 1099-MISC, resulting in a refund of $225,327. The defendants knowingly filed these false forms with the IRS in March 2016.
The Chocks took several steps to obstruct IRS efforts to recover the fraudulently obtained refund, including depositing the refund check into a bank account in the name of a trust they created to conceal the refund and by paying the coconspirator $73,500 for assistance in obtaining and concealing the refund. They also falsely claimed to the IRS that they had prepared the false tax return themselves.
Each faces a maximum penalty of five years in prison, a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Clare E. Connors for the District of Hawaii made the announcement.
IRS-Criminal Investigation, the Treasury Inspector General for Tax Administration (TIGTA), and the FBI are investigating the case.
Trial Attorneys Sarah Kiewlicz and Meredith Havekost of the Justice Department’s Tax Division and Assistant U.S. Attorney Gregg Paris Yates of the District of Hawaii are prosecuting the case.
Essex County Man Convicted for Gunpoint Robbery of East Orange Cell Phone StoreRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was convicted today for his role in a January 2021 gunpoint robbery of a cell phone store in East Orange, New Jersey, U.S. Attorney Philip R. Sellinger announced.
Kenneth Graham, 50, of Newark, was convicted of one count of Hobbs Act robbery and one count of using, carrying, and brandishing a firearm during and in relation to a crime of violence. Graham was convicted following a one-week trial before Senior U.S. District Court Judge William J. Martini in Newark federal court.
According to court documents and the evidence presented at trial:
On Jan. 18, 2021, Graham was in the cell phone store when he pulled out a gun and pointed it at a store employee. He ordered the employee to place several cell phones from the display case and cash from the register into a bag. Video surveillance footage near the store showed Graham enter a black Nissan Altima after the robbery and drive away. A witness confirmed that Graham was the person entering the Nissan Altima after robbing the store.
Historical cell phone records indicate that Graham’s cellular telephone was in East Orange near the store around the time of the robbery, and photographs on Graham’s cell phone showed Graham wearing a sweatshirt with a distinct logo. In the video surveillance footage from the robbery, Graham wore that same sweatshirt.
The Hobbs Act robbery charge carries a statutory maximum of 20 years in prison. The count of using, carrying, and brandishing a firearm during a crime of violence carries a maximum potential penalty of life in prison and in this case, a mandatory minimum sentence of 25 years in prison because Graham was previously convicted in 2007 in connection with three gunpoint bank robberies in New Jersey. The sentence on this charge must be consecutive to any other sentence imposed. Each count carries a potential $250,000 fine.
U.S. Attorney Sellinger credited special agents and task force officers of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and members of the East Orange Police Department, under the direction of Chief Phyllis Bindi, with the investigation leading to today’s conviction.
The government is represented by Assistant U.S. Attorneys Benjamin Levin and Jennifer S. Kozar of the Criminal Division in Newark.
Elizabethtown Woman Pleads Guilty to CARES Act Fraud in the Amount of $1,318,955Read the Press Release
Louisville, KY – Kelly Woods, 43, of Elizabethtown, Kentucky, pleaded guilty in federal court today to three counts of wire fraud related to a CARES Act financial assistance program.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Kathy Enstrom of the Federal Deposit Insurance Corporation Office of Inspector General, and Special Agent in Charge Jodi Cohen of the FBI Louisville Field Division made the announcement.
During the plea hearing, Woods admitted that between May 1, 2020, and March 31, 2021, she filed three fraudulent applications for Paycheck Protection Program (PPP) loans, resulting in the theft of $1,318,955. Woods utilized the entities Philips Healthcare LLC and LB Acquisitions LLC. Woods organized LB Acquisitions LLC after the onset of the Covid 19 pandemic. She then exaggerated the number of employees and payroll expenses of those entities in the fraudulent applications.
The Small Business Administration (SBA) PPP loans were designed to provide a direct incentive for small businesses who were in operation on February 15, 2020, to keep their workers on the payroll. PPP loan proceeds were required to be used by the business on certain permissible expenses. Interest and principal on PPP loans could be entirely forgiven if the business spent the loan proceeds on the allowable expenses within a designated period and used a certain percentage of the PPP loan proceeds on payroll expenses.
Woods is scheduled to be sentenced on June 22, 2023. Pursuant to the terms of the plea agreement, Woods will also forfeit certain real property and a vehicle. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FDIC Office of Inspector General and FBI are investigating the case.
Assistant U.S. Attorneys Nicole Elver and David Weser are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Eagle Butte Man Sentenced for LarcenyRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced an Eagle Butte, South Dakota, man convicted of Larceny. The sentencing took place on March 14, 2023.
True Clark, age 28, was sentenced to 13 months in federal prison, followed by three years of supervised release. Clark was ordered to pay restitution in the amount of $395, and a $100 special assessment to the Federal Crime Victims Fund.
Clark was indicted for Larceny by a federal grand jury in October of 2022. He pleaded guilty on December 19, 2022.
Late on September 3, 2022, or in the early morning hours of September 4, 2022, Clark stole a 2017 Buick Enclave valued in excess of $20,000 from a residence in Eagle Butte. The vehicle’s owner discovered the car missing on the morning of September 4, 2022. The vehicle was equipped with OnStar. The vehicle’s owner and law enforcement contacted OnStar and were able to pinpoint the vehicle’s location as being at a specific residence in Cherry Creek, South Dakota. OnStar disabled the vehicle, and law enforcement responded to Cherry Creek. Clark was still inside the vehicle when law enforcement arrived and took him into custody.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Clark was immediately remanded to the custody of the U.S. Marshals Service.
Drug User Sentenced for Illegally Possessing a FirearmRead the Press Release
Burlington, Vermont - The United States Attorney’s Office for the District of Vermont stated that Paul Lachapelle, Jr., 27, of Springfield, Vermont, was sentenced by United States District Judge Christina Reiss to time served followed by 3 years of supervised release for being a drug user in possession of a firearm. Lachapelle, Jr. previously pleaded guilty to the offense.
According to court records, Lachapelle Jr. was arrested on May 30, 2022, in Springfield, Vermont. That evening, Springfield Police responded to a possible burglary in progress at a residence. The report stated that the burglary suspect had a handgun holstered to his hip. Springfield Police encountered Lachapelle, Jr. and another person at the residence. After a brief conversation, law enforcement determined that Lachapelle, Jr. threw a handgun into a tall grassy area nearby. Springfield Police searched that area and recovered a .22 caliber revolver.
Police interviewed Lachapelle, Jr. who admitted, among other things, that he walked onto the property and onto the breezeway of the house. Lachapelle, Jr. claimed he knew the homeowner, and that the homeowner would have approved of Lachapelle, Jr.’s actions. Lachapelle, Jr. initially denied possessing a handgun while admitting that he had a knife, but after police confronted him with the homeowner’s reports of seeing the handgun on Lachapelle Jr.’s person via the residence’s surveillance video, Lachapelle, Jr. admitted to police that he threw the handgun into the tall grass near his vehicle. Additionally, the investigation demonstrated that Lachapelle, Jr. consumed controlled substances on a daily basis from September 2021 through May 30, 2022.
The case was investigated by the Springfield Police Department, Vermont State Police, the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Federal Bureau of Investigation. Lachapelle, Jr. was represented by Michael Straub, Esq. The prosecutors were Assistant United States Attorneys Joseph Perella and Zachary Stendig.
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. For more information about Project Safe Neighborhoods, please visit https://www.justice.gov/psn
District of Columbia Man Pleads Guilty to Bribing Correctional Officer to Smuggle Drugs into D.C. JailRead the Press Release
WASHINGTON – A District of Columbia man pleaded guilty today to bribing a public official to smuggle drugs into the D.C. jail. Keywaune McLeod, 28, of Washington D.C., pleaded guilty in United States District Court to one count of bribery. The plea was announced by U.S. Attorney Matthew M. Graves for the District of Columbia and Special Agent in Charge Wayne A. Jacobs of the FBI Washington Field Office. U.S. District Court Judge Dabney L. Friedrich scheduled a sentencing hearing for June 12, 2023.
According to court documents, as part of his plea, McLeod admitted that, in June of 2022, McLeod was contacted via jail telephone by an inmate being housed at D.C. Jail. Specifically, McLeod was recruited by the inmate to act as a conduit outside of D.C. jail to package narcotics and manage payments from the sale of those narcotics from inside the jail. As a part of this conspiracy, McLeod would package and provide drugs to a public official, a Correctional Officer working at the jail, who would smuggle them into the facility by concealing them on her body. Once inside the D.C. Jail, the Correctional Officer would transfer the drugs to the inmate who would then distribute the drugs for a profit. McLeod would accept and manage the proceeds from such distribution using CashApp and make bribe payments to the Correctional Officer for the drug smuggling.
Previously, in September and October 2022, McLeod was charged as part of a three-co-defendant complaint, later followed by an indictment. Specifically, D.C. Jail Correctional Officer Beverly Williams, 52, of Upper Marlboro, Maryland, and Andre Gregory, 31, an incarcerated inmate at the D.C. Jail’s CDF awaiting trial, along with McLeod, were charged with conspiracy, bribery, and smuggling. All charges as to Williams and Gregory remain pending. A complaint and an indictment are merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The bribery charge to which McLeod pleaded guilty carries a statutory maximum sentence of 15 years in prison, as well as potential financial penalties. The federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Washington Field Office is investigating the case.
This case is being prosecuted by Assistant U.S. Attorneys Gauri Gopal and Ahmed Baset with assistance from Paralegal Specialist Lisa Abbe, of the U.S. Attorney’s Office for the District of Columbia’s Fraud, Public Corruption, and Civil Rights Section.
Defendants Sentenced in a $217,200 Gift Card Conspiracy and Wire Fraud Scheme that Cheated Victims, Including the Elderly, Out of Thousands of DollarsRead the Press Release
Salt Lake City, Utah – Two foreign nationals, were sentenced today after pleading guilty to their participation in a wire fraud scheme, where victims were deceived into purchasing prepaid gift cards and providing that information to the defendants for their own personal gain.
Chaohui Chen, 46, was sentenced to 21 months imprisonment followed by 36 months supervised release and ordered to pay $217,200.00 in restitution. Wenyi Zheng, 46, was sentenced to 36 months imprisonment followed by 36 months supervised release and ordered to pay $217,200.00 in restitution.
According to court documents, in June 2019, Chen and Zheng were involved in a Walmart gift card conspiracy and wire fraud scheme within the District of Utah and elsewhere. The purpose of the scheme was to defraud individuals and obtain money and property for the personal gain of the defendants and others. According to the plea statement, a typical execution of the scheme involved unnamed third parties who would make false and fraudulent telephone calls, sometimes claiming to the victims they were part of the Social Security Administration. Using false pretenses, the callers would convince victims to purchase prepaid gift cards and provide to them the 16-digit gift card numbers and unique pins for the gift cards, in return for a cashier’s check in the amount of the gift card purchased. Once in control of the gift cards, Chen and Zheng would redeem the gift cards at various stores by purchasing household items and additional prepaid gift cards, which they would convert and use for their own personal gain, and neglect to return any of the money to the victims. Throughout the scheme, the defendants used or caused another to use interstate wire communications facilities for the purpose of carrying out the crime.
“The United States Attorney’s Office is committed to working with our law enforcement partners to investigate people who prey on vulnerable members of our community,” said United States Attorney Trina A. Higgins. “It is our job to pursue justice for victims, some of whom are elderly and trusted those who committed this crime.”
The case was investigated by the U.S. Department of Homeland Security Investigations (HSI).
Assistant U.S. Attorney, Ruth Hackford-Peer, of the District of Utah prosecuted the case.
Connecticut Man Sentenced to 27 Months’ Imprisonment for Illegally Possessing a FirearmRead the Press Release
Burlington, Vermont - The United States Attorney’s Office for the District of Vermont stated that Tan Prazeres, 43, of Danbury, Connecticut, was sentenced by United States District Judge William K. Sessions III to 27 months of imprisonment followed by 3 years of supervised release for being a felon in possession of a firearm. Prazeres had previously pled guilty to the offense.
According to court records, on February 10, 2022, Prazeres, a previously convicted felon, possessed a gun in Bennington, Vermont. That day, members of the Bennington Police Department responded to a report of suspected drug overdoses by a man and a woman inside of a car on Main Street. When an officer tapped on the driver’s side window, he saw a woman inside of the vehicle holding a glass pipe in her hand. The officer also saw a man seated in the passenger seat, later identified as Prazeres, struggling to remain conscious. Prazeres identified himself with a fake name and appeared to be under the influence of drugs. Prazeres later exited the car and was transported to a local hospital. The next day, investigators obtained a State of Vermont warrant to search the vehicle and found a Raven .25 caliber pistol in a men’s jacket that covered the center console of the vehicle. The responding officer’s body worn camera video footage showed Prazeres grabbing at the jacket that contained the firearm during Prazeres’ encounter with the police.
The case was investigated by the Bennington Police Department, Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Prazeres was represented by Assistant Federal Public Defender Steven Barth, Esq. The prosecutors were Assistant United States Attorneys Kimberly Ang and Zachary Stendig.
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. For more information about Project Safe Neighborhoods, please visit https://www.justice.gov/psn
Clackamas Man Sentenced to 14 Years in Federal Prison for Armed Robbery of Local PubRead the Press Release
PORTLAND, Ore.—A Clackamas, Oregon man was sentenced to federal prison today for robbing a local pub with a gun.
Dustin Lee Henderson, 42, was sentenced to 168 months in federal prison and five years’ supervised release.
According to court documents, on November 22, 2019, Henderson robbed the Lighthouse Pub, a public house and deli located on 82nd Avenue in Clackamas. In video surveillance of the robbery, Henderson was seen handing the pub clerk a bag, brandishing a firearm, and taking five cartons of cigarettes. The pub’s owner chased Henderson through the parking lot when Henderson discharged a single round from his firearm, prompting the owner to stop the chase. Law enforcement later recovered a .22 caliber cartridge case near the site of the shooting.
Law enforcement later observed Henderson in a nearby mobile home lot and arrested him. Investigators executed a state search warrant on a mobile home where Henderson resided and recovered the stolen cigarette cartons, clothes worn by Henderson during the robbery, and a .22 pistol. DNA analysis later linked Henderson to the seized firearm.
On March 17, 2022, Henderson was charged by superseding indictment with interfering with commerce with threats or violence, possessing a firearm in furtherance of a crime of violence, and illegally possessing a firearm as a convicted felon.
On April 27, 2022, after a three-day trial, Henderson was found guilty on all counts.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Clackamas County Sheriff’s Office with assistance from Oregon State Police. Assistant U.S. Attorneys Cassady Adams, Craig Gabriel, and Suzanne Miles prosecuted the case.
Cheektowaga Man Who Traveled to Rochester to Have Sex with A 13 Y/O Girl Pleads GuiltyRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Mohammed Uddin, 34, of Cheektowaga, NY, pleaded guilty to attempted receipt of child pornography before U.S. District Judge Frank P. Geraci, Jr. The charge carries a minimum penalty of five years prison, a maximum of 20 years, a lifetime term of supervised release, and a $250,000 fine.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that Uddin engaged in sexually explicit online and text communications with an undercover law enforcement officer, who he believed was a 13-year-old girl. Over a period of approximately three weeks, Uddin discussed engaging in sexual relations with the child, sent pornography to the child, talked about taking the child’s virginity, attempted to induce the child to produce and send him sexually explicit photos and videos, and formed a plan to meet the child at her Rochester home for sex. On August 18, 2022, Uddin traveled from Cheektowaga to an address in Rochester that he believed was the child’s residence and was immediately taken into custody, at which time investigators located Uddin’s cell phone and candy that he purchased as a gift for the child.
The plea is the result of an investigation by the Federal Bureau of Investigation, Child Exploitation Human Trafficking Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia.
Sentencing is scheduled for June 29, 2023, at 3:00 p.m. before Judge Geraci.
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Cascade woman admits charges in Great Falls College student loan fraudRead the Press Release
GREAT FALLS — A Cascade woman accused of illegally receiving approximately $126,000 in federal student aid through a scheme in which she enrolled others in courses at Great Falls College, Montana State University, admitted to charges today, U.S. Attorney Jesse Laslovich said.
Ricci Lea Castellanos, 34, pleaded guilty to conspiracy to commit wire fraud and to aggravated identity theft. Castellanos faces a maximum of 20 years in prison, a $250,000 fine and three years of supervised release on the conspiracy crime, and a mandatory minimum two years in prison, consecutive to any other sentence, a $250,000 fine and one year of supervised release on the aggravated identity theft crime.
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. 3. Castellanos was released pending further proceedings.
The government alleged in court document that between January 2016 and December 2019, Castellanos enrolled unwitting family members and others in online classes at Great Falls College, Montana State University. When doing so, Castellanos, and others, applied for and received federal student aid totaling approximately $126,219, none of which was allowed. In addition, Castellanos and others fraudulently used and submitted multiple American Indian Tuition Waivers. Castellanos and others created and used false tribal enrollment forms from Native American Tribes, all of which were designed to result in larger student living expense refunds. Castellanos and others then diverted the money. In addition, Castellanos and others used the identify of a person, Jane Doe 1, to apply for enrollment with Great Falls College in August 2017. When applying, Castellanos forged Jane Doe 1’s signature and received $2,378 in financial aid into her bank account, Castellanos then immediately withdrew the money in cash. Jane Doe 1 had reported her identity stolen to the Great Falls Police Department.
Assistant U.S. Attorneys Ryan G. Weldon and Benjamin D. Hargrove prosecuted the case, which was investigated by the U.S. Department of Education, Office of Inspector General.
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Browning man convicted of sexually abusing two girls sentenced to more than 18 years in prisonRead the Press Release
GREAT FALLS — A Browning man convicted of sexually abusing two girls approximately 20 years ago on the Blackfeet Indian Reservation was sentenced today to 18 years and nine months in prison, to be followed by 10 years of supervised release, U.S. Attorney Jesse Laslovich said.
A federal jury convicted Michael James Burke, 43, on Oct. 22, 2022 of two counts of aggravated sexual abuse of a child and of abusive sexual contact of a child following a two-day trial.
Chief U.S. District Judge Brian M. Morris presided.
The government alleged in court documents and at trial that Burke committed numerous sexual acts against victims Jane Doe 1 and Jane Doe 2 over an extended period of time in Browning. Burke sexually abused Jane Doe 1 between 2000 and 2003 and Jane Doe 2 between 1999 and 2002. Both victims were under the age of 12 at the time. Burke threatened the victims and told them both that no one would believe them. The victims ultimately disclosed the sexual abuse to officials in 2017.
The government said in its sentencing memo that the victims sustained significant emotional trauma and included a statement from Jane Doe 1 about how the sexual abuse has affected her life. In her statement, Jane Doe 1 said she grew up with depression, anxiety, PTSD and low self-esteem.
“For a good majority of my pre-teens I was afraid for my life and my family’s life because of the threats that were made. If I said anything or told anyone about what happened I was afraid of someone or myself getting severely injured, which is why it took me so long to get help,” Jane Doe 1 said in her statement. “I do my best to avoid anything that triggers all of the horrible memories, which is quite stressful. Having gone through all of this I’m very physically, emotionally, and mentally exhausted. …I’m still healing from all of this and know I will unfortunately be dealing with this for the rest of my life.”
The U.S. Attorney’s Office prosecuted the case, which was investigated by the FBI and Blackfeet Law Enforcement Services.
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Brother of former Gulf Cartel leader sent to prisonRead the Press Release
HOUSTON – A 39-year old South Texas man has been handed a significant sentence for his role in a cocaine distribution conspiracy, announced U.S. Attorney Alamdar S. Hamdani.
A federal jury deliberated for approximately four hours following an eight-day trial before returning a guilty verdict July 22, 2019, against Lee Roy Villareal, Rio Grande City, on conspiracy to distribute more than five kilograms of cocaine.
Today, U.S. District Judge Andrew S. Hanen imposed a 180-month-term of imprisonment be immediately followed by five years of supervised release. In handing down the sentence, the court found Villarreal ran a large-scale cocaine distribution network that spanned nearly five years. During that time, Villarreal and his associates distributed 150-450 kilograms of cocaine from Mexico and Panama to a large number of cocaine distributors based throughout the country to include cities in Texas, Georgia, Illinois and Indiana.
The judge found Villarreal was directly involved in the importation of cocaine.
Villarreal’s brother is Michael Villarreal aka Gringo Mike, a former Gulf Cartel plaza boss whom rival Gulf Cartel members killed in March 2013.
“Drug cartels like Gulf Cartel aka Cartel del Golfo (CDG) flood our communities with drugs that cause death and destruction, but high-ranking CDG leaders like Villarreal are not immune from stiff punishments,” said Hamdani. “This prosecution dealt a tough blow to the CDG’s operations. Villarreal brought poison to our communities, and collaborative efforts with our partners brought him to justice.”
At trial, the jury heard Villarreal was in charge of running drug trafficking operations on the U.S. side in South Texas on behalf of Gringo Mike and the Gulf Cartel.
Testimony revealed Villarreal was directly involved in the importation of cocaine from Mexico and Panama. He directed the activities of his workers who imported, stashed and transported cocaine to cities across the United States. Villarreal was also in charge of repatriating proceeds from the sale of cocaine back to Gringo Mike and Gulf Cartel members in Mexico. Villarreal used at least one stash house in Mission to store cocaine and drug proceeds.
Villarreal testified at trial and claimed he was never involved in drug trafficking, had no illegal association with his brother, Gringo Mike, and merely operated a legitimate auto mechanic business. The jury did not believe the defense claims and found him guilty of conspiracy to possess with intent to distribute more than five kilograms of cocaine.
To date, 12 other individuals have been convicted in relation to the conspiracy.
Lee Roy Villareal has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI led the Organized Crime Drug Enforcement Task Forces (OCDETF) investigation dubbed Operation La Hermandad, along with the Drug Enforcement Administration, Homeland Security Investigations, Border Patrol, Hidalgo County Sheriff’s Office, Starr County High Intensity Drug Task Force Area Task Force and the Mission Police Department. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Assistant U.S. Attorneys Anibal J. Alaniz and Casey N. MacDonald of the Southern District of Texas are prosecuting the case.
Bakersfield Resident Pleads Guilty to Drug Sales from Smoke ShopRead the Press Release
FRESNO, Calif. — Abraham Eduardo Navarro Mendez, 39, of Bakersfield, pleaded guilty today to possessing with intent to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in 2019, Navarro Mendez was suspected to be selling large quantities of methamphetamine from the Havana Smoke Shop in Bakersfield. On two occasions, law enforcement officers conducted two separate undercover drug transactions with Navarro Mendez, who delivered a total of 2.5 pounds of methamphetamine for $3,750.
This case is the product of an investigation by the Homeland Security Investigations and the Bakersfield Police Department. Assistant U.S. Attorney Karen Escobar is prosecuting the case.
Navarro Mendez is scheduled to be sentenced by U.S. District Judge Ana Isabel de Alba on July 17, 2023. Navarro Mendez faces a mandatory minimum statutory penalty of 10 years in prison, a maximum penalty of life in prison, and a fine up to $10 million. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Bakersfield Man Sentenced to 57 Months in Prison for Role in Fraudulent Transfer of Funds from a Victim’s Brokerage AccountRead the Press Release
FRESNO, Calif. — Ramon Armendariz Jr., 35, of Bakersfield, was sentenced today to four years and nine months in prison for wire fraud, bank fraud, and aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Armendariz unlawfully obtained personally identifiable information and bank account information of a victim, which he used to open a brokerage account in the victim’s name. Armendariz used the personal bank accounts to fund the brokerage account. Armendariz listed himself as an authorized check writer on the brokerage account in order to access the funds when the transfers to the brokerage account were completed. Armendariz’s scheme unraveled when the victim discovered the unauthorized transfers and notified the bank, resulting in a freeze of the funds in the brokerage account.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Alexandre Dempsey prosecuted the case.
Bakersfield Brothers Sentenced for Roles in Multiple Fraud SchemesRead the Press Release
FRESNO, Calif. — For their roles in a conspiracy to commit wire fraud, today, Charles Abieanga, 31, of Bakersfield, was sentenced to five years and five months in prison and his brother Simon Abieanga, 28, of Bakersfield, was sentenced to three years and five months in prison, U.S. Attorney Phillip A. Talbert announced. Charles Abieanga was ordered to pay $505,695 in restitution, and Simon Abieanga was ordered to pay $326,832 in restitution.
According to court documents, Charles Abieanga was sentenced to one count of conspiracy to commit wire fraud and one count of aggravated identity theft for his role in three different fraud schemes. The first scheme involved submitting false claims to the California Employment Development Department and obtaining benefits associated with those claims. The second scheme involved impersonating a supplier of personal protective equipment (PPE) and defrauding hospitals by selling non-existent medical supplies including surgical gowns and N-95 protective masks. The third scheme involved the sale of non-existent pets, horses, and vehicles to victims online.
Simon Abieanga was sentenced for his role in one count of conspiracy to commit wire fraud for his role in two separate, but similar, fraud schemes. The first scheme involved submitting false claims to the California Employment Development Department and obtaining benefits associated with those claims. Simon Abieanga’s second scheme involved the sale of non-existent pets, horses, and vehicles to victims online.
This case is the product of an investigation by the Federal Bureau of Investigation, the U.S. Secret Service, the California Employment Development Department, and the Bakersfield Police Department. Assistant U.S. Attorneys Alexandre Dempsey and Joseph D. Barton are prosecuting the case.