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Friday 17 February 2023
Troy Rivetti to Serve as Acting United States Attorney for the Western District of PennsylvaniaRead the Press Release
PITTSBURGH – Troy Rivetti, First Assistant to former United States Attorney to Cindy K. Chung, has been named Acting United States Attorney for the Western District of Pennsylvania effective today.
In this position, Mr. Rivetti leads a staff of nearly 120 employees representing the United States in courts throughout Pennsylvania's western 25 counties, including staffed offices in Pittsburgh, Erie, and Johnstown.
Mr. Rivetti’s career in the Department of Justice has spanned more than 25 years. Most recently he served as First Assistant U.S. Attorney beginning in November 2021. Prior to that appointment, Mr. Rivetti held a series of leadership positions in the U.S. Attorney's Office, including serving as the Chief of the Criminal Division from 2019 to 2021. Mr. Rivetti joined the U.S. Attorney's Office in 1997. Throughout his career as a federal prosecutor, Mr. Rivetti’s primary area of concentration has involved the investigation and prosecution of violent crime, including large-scale drug trafficking organizations and firearms offenses.
Mr. Rivetti obtained his Bachelor of Arts degree from Dickinson College and his Juris Doctor from Georgetown University. Following graduation from law school, Mr. Rivetti was employed for five years as a litigation associate at a large Pittsburgh law firm. He then served as a law clerk for two years for the Honorable D. Brooks Smith.
Three Miami Men Sentenced to Life for Pawn Shop Robberies and MurdersRead the Press Release
MIAMI – Senior United States District Judge James I. Cohn has sentenced Jonathan Cruz, 36, Eric Ortiz Melendez, 28, and Jorge Aponte Figueroa, 25, to life in federal prison for their participation in violent robberies and murders.
The sentences follow two federal trials. The first was a Miami trial where in March 2022, a jury found Aponte Figueroa guilty of carjacking resulting in death and discharging a firearm in furtherance of a crime of violence. The second trial happened in Fort Lauderdale, where in November 2022, a jury found Cruz, Ortiz Melendez, and Aponte Figueroa guilty of committing armed robbery of nine pawn shops in Miami-Dade, Broward, and Palm Beach Counties (and conspiring to do so), as well as killing a customer during a robbery in Little Havana. That jury also found Cruz guilty of being a felon in possession of ammunition.
According to the trial evidence, beginning in October of 2016, Cruz, Ortiz Melendez, and Aponte Figueroa, along with five previously convicted co-conspirators, agreed to commit armed robberies of pawn shops throughout South Florida. They would steal jewelry and resell it. Cruz would scout the pawn shops, then organize and direct the robberies.
After obtaining guns and tools from Cruz, the coconspirators would drive to the stores, commit the robberies, and return to Cruz’s home with the jewelry. Cruz would sell the stolen jewelry and give coconspirators their cut.
Shots were fired during robberies in Pembroke Park, West Park, and Miami, one of which resulted in the murder of an elderly customer at a Little Havana pawn shop.
The spree began to unravel after one pawn shop robbery in Hialeah, when officers with Hialeah Police Department arrested three of the robbers at the end of a high-speed chase.
Additionally, in May 2017, Aponte Figueroa and two co-conspirators carjacked at gunpoint an Uber driver while he slept in his minivan. After driving the victim throughout Miami-Dade County, Aponte Figueroa pointed a gun at him, stole his wallet, and shot the victim seven times, including close range shots to the head. The victim died.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and acting Special Agent in Charge Maged Benham of the FBI Miami Field Office announced the life sentences.
FBI Miami investigated the case, with assistance from Broward County Sheriff’s Office, Miami-Dade Police Department, City of Miami Police Department, Hialeah Police Department, City of Hollywood Police Department, City of Miami Gardens Police Department, City of Palm Springs Police Department, and Fort Lauderdale Police Department.
Assistant U.S. Attorneys Alejandra L. López and Jodi Anton prosecuted this case. Assistant U.S. Attorney Annika Miranda is handling the asset forfeiture aspect of 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.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 17-cr-20487.
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Three Indicted in Nationwide Controlled Substance ConspiracyRead the Press Release
BOSTON – Three individuals have been indicted by a federal grand jury in Boston in connection with a nationwide conspiracy to traffic controlled substances from Arizona into Massachusetts. Defendants allegedly hid drugs in packages containing children’s items such as toy trucks, Halloween decorations and Disney items.
Denise Guyette, 29, of Woonsocket, R.I.; Gerardo Garza, a/k/a “Oso,” 47, of Yuma, Ariz.; and Nathan Boddie, 38, of Pawtucket, R.I., were indicted on one count of conspiracy to distribute and to possess with intent to distribute controlled substances.
Guyette was arrested on Feb. 8, 2023 and was detained following an initial appearance in federal court in Boston. Boddie was arrested on Feb. 6, 2023 and is currently being held in state custody in connection with Rhode Island state charges. Boddie will appear in federal court in Boston at a later date. Garza was arrested on Feb. 10, 2023 in the Southern District of California and was detained pending a detention hearing. He will also appear in federal court in Boston at a later date.
According to court documents, in or about April 2022, law enforcement opened an investigation into a drug trafficking organization (DTO) led by Guyette. It is alleged that Guyette conspired with Garza, Boddie and others to traffic various controlled substances – including methamphetamine, fentanyl pills and cocaine – in Massachusetts, Rhode Island and elsewhere. It is further alleged that the DTO routinely used the mail to ship drugs from Arizona to Massachusetts, often hiding the drugs within packages containing children’s items such as toy trucks, Halloween decorations and Disney items. Between May and October 2022, investigators seized seven packages containing a total of over 900 grams of methamphetamine, thousands of counterfeit pills containing fentanyl, as well as suspected Dimethyltryptamine (DMT), a very strong psychedelic.
“Fentanyl and methamphetamine are serious, lethal threats to the well-being of our communities,” said United States Attorney Rachael S. Rollins. “My office and our law enforcement partners will continue to identify drug traffickers and stop the flow of illegal drugs into Massachusetts where they cause pain and destruction. Drug trafficking frequently intersects with illegal firearms and other criminal conduct. This instance proved no different. Ghost guns were seized as well as a 3-D printer we allege was used to print ghost gun parts. It is our contention that this seizure likely saved countless lives.”
“Operation Raising Arizona has dealt a significant blow to a drug trafficking organization that we believe is responsible for operating nationwide, flooding communities in Massachusetts and Rhode Island with highly addictive and deadly narcotics. All three individuals we’ve removed from the street are accused of being prolific drug dealers who thrived on selling drugs and believed they could pull the wool over the eyes of investigators by hiding their product inside toys and other common household items,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “The violence associated with the illegal drug trade, as illustrated by our seizure of multiple ghost guns, is a threat to our communities, and the FBI and our partners are committed to working together across jurisdictions to take down criminals who insist on bringing their harmful business to our neighborhoods.”
On Feb. 6, 2023, Boddie was arrested in Rhode Island following a traffic stop during which a 9mm handgun ghost gun loaded with five rounds of ammunition, an empty 9mm magazine and a 10-round capable magazine loaded with one round of ammunition were allegedly located inside his vehicle. Additionally, during a search of his person, it is alleged that Boddie attempted to swallow a plastic bag containing 20 grams of suspected methamphetamine.
At the time of Guyette’s arrest on Feb. 8, 2023, approximately 15 pounds of a crystal substance that field tested positive for methamphetamine and thousands of suspected fentanyl pills weighing over 400 grams were located in a safe in her bedroom. A digital scale as well as multiple Rhode Island and Massachusetts driver’s licenses, Social Security cards and credit cards in the names of other individuals were also found during a search of Guyette’s residence. During a search of Boddie’s Rhode Island residence, investigators seized two ghost guns, a 3-D printer used to print ghost gun components, approximately 150 grams of suspected methamphetamine as well as 10 different driver’s licenses, each bearing Boddie’s photo with names and addresses of other individuals.
In total, law enforcement seized over 16 pounds of methamphetamine and more than 700 grams of counterfeit prescription pills containing fentanyl over the course of the investigation.
The charge of conspiracy to distribute and to possess with intent to distribute controlled substances provides for a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and Hudson Police Chief Richard DiPersio made the announcement today. Valuable assistance was provided by the Drug Enforcement Administration; Federal Bureau of Investigation, Imperial County Resident Agency and Yuma Resident Agency; United States Postal Service; Massachusetts State Police; and the Woonsocket (R.I.) Police Department. Assistant U.S. Attorneys Alathea Porter and Charles Dell’Anno of Rollins’ Narcotics & Money Laundering Unit are prosecuting the case.
This case 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.
The details contained in the charging document are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Three Illinois Men Admit 2020 St. Louis CarjackingRead the Press Release
ST. LOUIS – Three men from Illinois pleaded guilty Thursday to federal charges and admitted carjacking a St. Louis, Missouri woman in front of her house in 2020.
Lamont Carter, 28, of East St. Louis, Jerray Jackson, 25, of Washington Park, and Montez Wicks, 27, of East St. Louis, each pleaded guilty to one count of carjacking and one count of brandishing a firearm in furtherance of a crime of violence.
They admitted that on June 1, 2020 a woman preparing to leave for work was getting into her 2013 Ford Explorer. A black Audi pulled up and two men got out, pointed guns at her and ordered her out of her SUV. The two men stole the Ford while the third man followed in the Audi.
Four days later, the Audi was spotted by Richmond Heights police in a caravan of vehicles near the Galleria Mall. Police followed the Audi into St. Louis, where it crashed near Forest Park Community College. Carter, Jackson and Wicks ran but were eventually caught by officers with the Clayton Police Department. They left a Ruger 9mm pistol and a stolen Glock .40-caliber pistol behind in the Audi.
The Ford’s owner identified all three men as the carjackers, their plea agreements say.
The case was investigated by the St. Louis Metropolitan Police Department, the Richmond Heights Police Department, the Clayton Police Department, the St. Louis County Police Department and the FBI. Assistant U.S. Attorney Donald Boyce is prosecuting the case.
Three Hudson County Men Charged with Narcotics and Firearms Related Offenses Inside Jersey City Apartment BuildingRead the Press Release
NEWARK, N.J. – Three Hudson County, New Jersey, men were charged by complaint with narcotics and firearms related violations, U.S. Attorney Philip Sellinger announced today.
Shiquwan Johnson, aka “Big Shy,” 37, is charged with unlawful possession of firearms and ammunition by a convicted felon, possession with intent to distribute heroin and cocaine, and possession of firearms in furtherance of a drug trafficking crime. Johnson is associated with a neighborhood street gang that operates around the Bergen Avenue/Lexington Avenue area in Jersey City.
Douglas Sherman, aka “Dougie,” 40, is charged with maintaining a drug-involved premises.
Perry Capers, aka “Diddy,” 36, is charged with possession with intent to distribute heroin and cocaine. Capers is also associated with the neighborhood street gang that operates in and around Bergen Avenue and Lexington Avenue in Jersey City.
All three defendants appeared on Feb. 16, 2023, before U.S. Magistrate Judge Jessica S. Allen. Johnson and Sherman consented to detention and Capers was released and placed on home incarceration.
According to the documents filed in this case and statements made in court:
Law enforcement officers began investigating an apartment building in January 2023 and observed numerous hand-to-hand drug transactions on a near-daily basis. The investigation revealed multiple stash locations for narcotics and firearms in the building, including inside an apartment unit rented by Sherman, a pipe, and a mailbox associated with the apartment unit rented by Sherman. While executing search warrants on Feb. 15, 2023, law enforcement officers recovered hundreds of grams of suspected cocaine and tens of grams of suspected heroin, three firearms, and additional ammunition.
Johnson faces a mandatory minimum penalty of five years in prison and a maximum penalty of life in prison. Sherman and Capers face a maximum penalty of 20 years in prison.
U.S. Attorney Sellinger credited investigators the Jersey City Police Department, under the direction of Director James Shea, with the investigation leading to the charges. He also thanked special agents of the Department of Homeland Security, Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Ricky J. Patel in Newark; the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under the direction of Acting Special Agent in Charge Bryan Miller; and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy, for their assistance.
This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City. As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, the U.S. Marshals, the Jersey City Police Department, the Hudson County Prosecutor’s Office, the Hudson County Sheriff’s Office, New Jersey State Parole, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.
The government is represented by Assistant U.S. Attorney Clara Kim of the Office’s OCDETF/Narcotics Unit.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Third conspirator convicted at trial for stealing trade secrets from aircraft manufacturersRead the Press Release
SAVANNAH, GA: The third defendant in a conspiracy to steal valuable proprietary information from aircraft manufacturers has been found guilty after a three-day trial.
Joseph Pascua, 60, of Escondido, Calif., awaits sentencing after a U.S. District Court jury found him guilty of Conspiracy to Steal Trade Secrets, said David H. Estes, U.S. Attorney for the Southern District of Georgia. Pascua faces a statutory sentence of up to 10 years in prison, along with substantial financial penalties, followed by up to three years of supervised release upon completion of any prison term.
There is no parole in the federal system.
“Manufacturers spend millions of dollars and countless hours of employee work time to research, design and develop unique products,” said U.S. Attorney Estes. “Joseph Pascua and his co-conspirators attempted to shortcut this process by stealing valuable proprietary information to benefit a competitor – and they’re being held accountable for this theft.”
As described at trial, Pascua was one of three defendants who schemed to speed the process for developing and testing an aircraft de-icing design by stealing proprietary information from an aircraft manufacturer. They planned to profit by using stolen information to expedite Federal Aviation Administration certification, and then selling the design to a competing aircraft company.
The three originally were indicted by a federal grand jury in May 2019; Pascua’s case initially was dismissed and he was indicted separately in November 2021. He was found guilty by a jury after a three-day trial in Savannah before U.S. District Court Judge R. Stan Baker, and now awaits sentencing upon completion of a pre-sentencing investigation by U.S. Probation Services.
Co-defendant Gilbert Basuldua, 63, of Hilton Head, S.C., is serving an 80-month sentence after pleading guilty to Conspiracy to Steal Trade Secrets and Interstate Transportation of Stolen Property, while Craig German, 60, of Kernersville, N.C., is serving a total of 90 months in prison after pleading guilty to Conspiracy to Steal Trade Secrets, and later being found guilty by a jury on charges of Perjury and False Statements to a Government Agency for lying during his initial sentencing hearing.
“The FBI is committed to identifying and prosecuting those who engage in illegal and deceptive practices to steal trade secrets and protected information from companies who spend millions of dollars to develop it,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “As this extensive investigation comes to a close, let these convictions be a reminder that the FBI will not tolerate criminals that violate laws that protect companies and are in place to keep Americans safe.”
The case was investigated by the FBI and prosecuted for the United States by Assistant U.S. Attorneys Jennifer G. Solari and Darron J. Hubbard.
Texas Man Pleads Guilty to Defrauding Employer of Nearly $10 MillionRead the Press Release
EL PASO, Texas – A Horizon City man pleaded guilty in federal court in El Paso Tuesday to wire fraud.
According to court documents, Ricardo Robles, 41, was employed in a position in which he was responsible for purchasing goods from suppliers. His employer would then resell the goods for profit. Robles created numerous sham companies beginning in 2010 and used those sham companies to purchase goods and inflate the prices along with his co-conspirators. On his employer’s behalf, Robles would then purchase from his sham companies and divert portions of those payments to his personal bank accounts.
Robles pleaded guilty to conspiracy to commit wire fraud and faces a maximum penalty of 20 years in prison. Robles also agrees to pay restitution of approximately $9,890,489.53. A sentencing date has been tentatively set for May 30. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jaime Esparza of the Western District of Texas and Special Agent in Charge Jeffrey R. Downey made the announcement.
The FBI is investigating the case.
Assistant U.S. Attorney Christopher Mangels is prosecuting the case.
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Tampa Man Sentenced to More Than Three Years in Federal Prison for Access Device Fraud and Aggravated Identity TheftRead the Press Release
Ocala, Florida – Senior United States District Judge John Antoon II has sentenced Tyler Deandre Johnson (27, Tampa) to three years and eight months in federal prison for access device fraud and aggravated identity theft. The court also ordered the forfeiture of $40,039.67, which represents the proceeds Johnson obtained from these offenses. The federal sentence is to run consecutively to a three-year state prison sentence Johnson is currently serving on four Hillsborough County state cases. In those cases, Johnson was convicted of three counts of fleeing to elude, two counts of armed possession of a controlled substance, and one count of felon in possession of a firearm. Johnson had pleaded guilty to the federal charges on November 15, 2022.
According to court records, between March 16 and June 15, 2021, Johnson used Green Dot VISA debit cards and PayPal credit cards with stolen account numbers embossed on them to purchase a total of $40,039.67 worth of merchandise. The merchandise included jewelry and cellphones. Because another person’s name was embossed on these cards, Johnson used fraudulent identification cards to corroborate the names on the debit and credit cards as his own.
This case was investigated by the U.S. General Services Administration - Office of Inspector General, Southeast and Caribbean Regional Investigations Office, the U.S. Department of Agriculture - Office of Inspector General, Southeast Region, Amtrak - Office of Inspector General, Central Region, the U.S. Secret Service Cyber Fraud Task Force, the Citrus County Sheriff's Office, the Davie Police Department, the Lee County Sheriff's Office, the Cape Coral Police Department, the Belleview Police Department, the Sarasota Police Department, the Hillsborough County Sheriff's Office, and the Synchrony Bank Special Investigations Team. It was prosecuted by Assistant United States Attorney Hannah Nowalk.
Talladega Man Sentenced to More than 19 Years in Prison on Drug Trafficking ChargesRead the Press Release
ANNISTON, Ala. – Today, a federal judge sentenced a Talladega man on drug charges, announced U.S. Attorney Prim F. Escalona and Drug Enforcement Administration Special Agent in Charge Brad L. Byerley.
U.S. District Court Judge Corey Maze sentenced Antoine Marque McClellan, 32, to 232 months in prison. McClellan pleaded guilty to two counts of possession with the intent to distribute methamphetamine in October 2022.
According to the plea agreement, Anniston police officers conducted two traffic stops, within two days, on vehicles occupied by McClellan. On June 11, 2021, Anniston police officers conducted a traffic stop in Heflin, on a vehicle driven by McClellan. Upon searching the vehicle, officers recovered a plastic bag containing marijuana and a clear plastic bag containing methamphetamine. In the trunk of the vehicle, officers recovered a backpack containing three more clear plastic bags containing methamphetamine.
On June 12, 2021, an Anniston police officer conducted a traffic stop in Anniston on a vehicle in which McClellan was a passenger. Officers recovered five individual bags of “ice” methamphetamine from a cardboard box stuffed under the spare tire in the trunk of the vehicle.
In total, officers recovered over six kilograms of pure methamphetamine from McClellan.
This investigation is part of the Organized Crime Drug Enforcement Task Forces (OCDETF) Operation Lengua Doble. OCDETF is an independent component of the U.S. Department of Justice. Established in 1982, OCDETF is the centerpiece of the Attorney General’s strategy to combat transnational-organized-crime and to reduce the availability of illicit narcotics in the nation by using a prosecutor-led, multi-agency approach to enforcement. OCDETF leverages the resources and expertise of its partners in concentrated, coordinated, long-term enterprise investigations of transnational organized crime, money laundering, and major drug trafficking networks.
The DEA investigated the case, along with the 7th Judicial Major Crimes Unit and the Anniston Police Department. Assistant U.S. Attorney Allison Garnett prosecuted the case.
Tahlequah Man Sentenced to 7 Years for Assaulting Two Victims with a Bat and FirearmRead the Press Release
A defendant who broke into a Broken Arrow home and assaulted a woman and man in 2017 was sentenced Friday in federal court, announced U.S. Attorney Clint Johnson.
U.S. District Judge Gregory K. Frizzell sentenced Louis Clayton Chaffin, 45, of Tahlequah, to 84 months in federal prison followed by two years of supervised release.
Chaffin previously pleaded guilty to first degree burglary in Indian Country and three counts of assault with a dangerous weapon with intent to do bodily harm in Indian Country.
“Louis Chaffin broke into a home wielding a bat and gun. He then assaulted two victims, seriously injuring them. Fortunately, the incident was deescalated when the homeowner stepped in and stopped him,” said U.S. Attorney Clint Johnson. “Today’s 7-year sentence should make it clear that this office and our law enforcement partners will hold violent perpetrators accountable.”
Chaffin admitted that on Dec. 9, 2017, he broke into the home by kicking in the front door and while carrying an aluminum baseball bat and a 9mm pistol. Chaffin struck the man and woman with the bat repeatedly. He pointed the gun at the man and pistol whipped him in the face. The incident only ended after another individual, the homeowner, took out his own gun and ordered Chaffin to leave.
As a result of the assault, the male victim suffered broken facial bones and a fractured skull. The female victim suffered a concussion from the beating, and her face later required numerous stitches.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Broken Arrow Police Department conducted the investigation. Assistant U.S. Attorneys Michael F. Harder and Eric O. Johnston prosecuted the case.
Standing Pine Man Pleads Guilty to Assault Resulting in Serious Bodily InjuryRead the Press Release
Jackson, Miss. – A Standing Pine man pled guilty to assault resulting in serious bodily injury, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
According to court documents, on March 26, 2021, Kendall Ben, 33, assaulted a female and fractured her arm in the Standing Pine community of the Choctaw Indian Reservation.
Ben is scheduled to be sentenced on May 24, 2023, and faces a maximum penalty of ten years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Choctaw Police Department and the Federal Bureau of Investigation investigated the case.
Assistant U.S. Attorney Kevin J. Payne and Special Assistant U.S. Attorney Brian K. Burns prosecuted the case.
South Los Angeles-Based Gang Member Pleads Guilty to Leading Crack Cocaine Manufacturing and Distribution Ring in WattsRead the Press Release
LOS ANGELES – A leader of the Bounty Hunter Bloods (BHB) street gang pleaded guilty today to federal drug and firearms charges for leading a manufacturing and distribution of crack cocaine conspiracy in and around the gang’s “territory” of the Nickerson Gardens public housing projects in the Watts neighborhood of Los Angeles.
Damion Baker, 45, a.k.a. “Fatts,” of Compton, pleaded guilty to one count of conspiracy to manufacture, distribute, and possess with intent to distribute cocaine, and one count of being a felon in possession of a firearm.
Baker is the lead defendant in an April 2021 indictment targeting members and associates of the BHB street gang for drug- and firearm-related crimes.
According to his plea agreement, from August 2019 to May 2020, Baker organized and led a drug trafficking conspiracy in which he and his accomplices agreed to distribute cocaine. Specifically, Baker arranged to obtain powder cocaine from at least two drug suppliers. He then directed his co-conspirators to cook, and would himself cook, the powder cocaine and manufacture it into crack cocaine to sell to customers, including back to his powder cocaine suppliers to sell in crack form.
Baker directed his accomplices in the packaging, sale, and delivery of crack cocaine to customers, which included co-conspirators and other BHB gang members. Baker also directed the receipt and storage of drug proceeds throughout BHB-claimed territory in South Los Angeles.
As part of these activities, Baker arranged for an accomplice’s residence in the Nickerson Gardens housing projects in Watts to be used as a stash house in which Baker and his co-conspirators continuously sold crack cocaine over a period of many months. Baker recruited and hired co-conspirators to work at the Watts stash house and directed them in selling narcotics to customers there and in nearby areas, restocking the stash house’s drug supply, and transporting drug proceeds to Baker and other accomplices at various locations.
Baker admitted in his plea agreement to possessing a firearm in May 2020. He was not permitted to do so because he previously had been convicted of felonies in Los Angeles Superior Court, including a cocaine possession charge in 1998 and a domestic violence-related charge in 2001. He admitted in his plea agreement that he possessed the firearm for the purpose of protecting his crack cocaine distribution business.
Baker also agreed to forfeit the firearm and $44,600 in cash law enforcement seized at his residence in Compton and at another residence in San Pedro.
United States District Judge Fernando L. Aenlle-Rocha scheduled a July 14 sentencing hearing, at which time Baker will face a mandatory minimum sentence of five years in federal prison and a statutory maximum of 40 years in federal prison for the drug trafficking conspiracy charge, and up 10 years in federal prison for the firearms offense.
The other 11 defendants in this indictment either have pleaded guilty or signed plea agreements in this case and await sentencing. Another BHB gang member, and Baker’s second in command in the drug trafficking conspiracy, Tony Carr, 52, a.k.a. “T-Bone,” of Watts, pleaded guilty in July 2022 to one count of cocaine trafficking conspiracy and one count of being a felon in possession of a firearm. Judge Aenlle-Rocha sentenced Carr to 188 months in federal prison.
In April 2021, law enforcement conducted a takedown in which 22 BHB members and associates were charged in a total of nine federal grand jury indictments. Of those 22 defendants, prosecutors have secured 19 convictions.
The FBI’s Los Angeles Metropolitan Task Force on Violent Gangs, which consists of the FBI, the Los Angeles Police Department, the Los Angeles County Sheriff’s Department, and the California Department of Corrections and Rehabilitation, investigated this matter.
Assistant United States Attorney Amy E. Pomerantz of the Violent and Organized Crime Section is prosecuting this case.
Sioux Falls Man Sentenced to 15 Years in Meth ConspiracyRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Scherier has sentenced a Sioux Falls, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance. The sentencing took place on February 13, 2023.
James Verbrugge, 29, was sentenced to 15 years in federal prison, followed by five years of supervised release. He was also ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Verbrugge was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury in September of 2022. He pleaded guilty on December 2, 2022.
Verbrugge, along with his co-conspirators, was responsible for distributing 50 grams or more of pure methamphetamine in the District of South Dakota. On April 7, 2022, Verbrugge assisted his co-conspirators in completing a sale of methamphetamine to a confidential informant. Verbrugge provided his co-conspirators with methamphetamine so they could complete the sale. The transaction took place in a grocery store parking lot where they exchanged approximately 333.8 grams of methamphetamine, which was at 98% purity, in return for $4,600.
This case was investigated by the Sioux Falls Area Drug Task Force and the Drug Enforcement Administration. This case was prosecuted by Special Assistant U.S. Attorney Paige Petersen, who also serves as a prosecutor with the South Dakota Attorney General’s Office.
James Verbrugge was immediately remanded to the custody of the U.S. Marshals Service.
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Senior Oil and Gas Trader and Brazil-Based Intermediary Charged in Bribery and Money Laundering SchemeRead the Press Release
An indictment was unsealed today in the District of Connecticut charging a Connecticut man and a foreign national with conspiracy, multiple counts of violating the Foreign Corrupt Practices Act (FCPA), and money laundering in connection with an alleged scheme to pay bribes to Brazilian officials to win contracts with Brazil’s state-owned and state-controlled energy company, Petróleo Brasileiro S.A. – Petrobras (Petrobras).
According to court documents, Glenn Oztemel, 64, of Westport, worked as a senior oil and gas trader at two Connecticut-based trading companies (Trading Company #1 and Trading Company #2). Eduardo Innecco, 73, a dual Brazilian and Italian citizen, worked as an oil and gas broker and agent for Trading Company #1 and Trading Company #2 in Brazil. Between approximately mid-2010 and continuing into 2018, Oztemel, Innecco, and others allegedly paid bribes to Petrobras officials for their assistance in helping Trading Company #1 and Trading Company #2 obtain and retain business with Petrobras, including by providing Oztemel, Innecco, and others with confidential information regarding Petrobras’ fuel oil business. As alleged, Oztemel and his co-conspirators caused Trading Company #1 and Trading Company #2 to make corrupt payments – disguised as purported consulting fees and commissions – to Innecco, knowing that Innecco would pay a portion of those funds to Brazilian officials as bribes. To conceal the scheme, Oztemel, Innecco, and their co-conspirators allegedly used coded language to refer to the bribes and communicated using personal email accounts, fictitious names, and encrypted messaging applications.
Oztemel and Innecco are each charged with conspiracy to violate the FCPA, conspiracy to commit money laundering, three counts of violating the FCPA, and two counts of money laundering. They face up to five years in prison for each of the bribery conspiracy and bribery charges, and up to 20 years in prison for each of the money laundering conspiracy and money laundering charges.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Vanessa R. Avery for the District of Connecticut, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Assistant Director in Charge Donald Alway of the FBI Los Angeles Field Office made the announcement.
The FBI is investigating the case.
Trial Attorney Clayton P. Solomon and Assistant Chiefs Derek J. Ettinger and Jonathan P. Robell of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michael McGarry for the District of Connecticut are prosecuting the case.
The Fraud Section is responsible for investigating and prosecuting FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Second and Third Defendants Sentenced to Prison for Multimillion Dollar Schemes Involving Preparing False Tax Returns for Professional Athletes and PPP Loan FraudRead the Press Release
ALEXANDRIA, Va. – Two California men have been sentenced to prison in a conspiracy to defraud the Internal Revenue Service (IRS) and the Paycheck Protection Program (PPP), a federal loans initiative designed to help businesses pay their employees and meet expenses during the COVID-19 pandemic.
According to court documents and statements made in court, Thanh Rudin, 58, was a principal of Mana Tax Services, a tax preparation business in the Los Angeles area. His coconspirator, Seir Havana, 46, was the company’s Vice President/Director and Chief Executive Officer. The defendants engaged in two fraud schemes using Mana tax. First, they prepared and filed with the IRS a series of false income tax returns on behalf of at least nine professional athletes. The false tax returns reported fictitious business and personal losses to generate refunds the athletes were not entitled to receive. They also filed amended tax returns for most of the athletes for prior years to correct what conspirators falsely characterized as “errors” made by their previous accountants. Mana Tax charged the athletes a fee of 30% of the resulting refunds issued by the IRS. The tax fraud scheme caused a total tax loss of more than $19 million.
Second, the defendants prepared and submitted false applications for PPP loans on behalf of small businesses, shell companies, and other business entities they controlled. The co-conspirators prepared fraudulent PPP loan applications for these firms in exchange for a fee of 30% of the resulting loan. The co-conspirators submitted fabricated tax returns to support the PPP loan applications, and some of the business owners never saw their loan applications before Mana Tax filed them. To obtain fraudulent PPP loans, the co-conspirators grossly inflated the number of employees and monthly payroll costs claimed on the applications. Some of the businesses were not eligible for any PPP loan funds at all because they did not have any payroll expenses.
During the investigation, the government seized more than $11.8 million from bank accounts containing PPP loan fraud proceeds controlled by the conspirators. In addition, Havana surrendered cashier’s checks worth approximately $5.6 million, representing a portion of the fees charged to professional athletes for the preparation of their false tax returns, and a portion of the fees charged for obtaining fraudulent PPP loans. The two schemes resulted in total losses of more than $44 million.
Havana, was sentenced today to 42 months in prison. Thanh Rudin was sentenced on February 10 to 34 months in prison. Thanh Rudin’s brother, Quin Rudin, was sentenced in October 2022 to 10 years in prison for his role in the scheme.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; Special Agent in Charge Wayne A. Jacobs of the FBI Washington Field Office Criminal Division; and Special Agent in Charge Kareem Carter of the Washington, D.C. Field Office, IRS-Criminal Investigation made the announcement after sentencing by Senior U.S. District Judge Anthony J. Trenga.
The U.S. Attorney’s Office for the Central District of California and U.S. Small Business Administration provided assistance with the investigation.
Assistant U.S. Attorneys Kimberly M. Shartar and Kimberly R. Pedersen for the Eastern District of Virginia and Assistant Chief David Zisserson of the Tax Division prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:22-cr-116.
Recidivist Defendant Charged in Connection with Million-Dollar Fraud Scheme Targeting Senior Executives of Investment FirmsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of a criminal Complaint today charging JONATHAN GHERTLER with engaging in a sophisticated scheme to impersonate senior leaders of two Manhattan-based investment firms, resulting in over $1 million in losses to their portfolio companies, and impersonating a partner of a global law firm on telephone calls with federal agents who were investigating the scheme. GHERTLER was arrested yesterday and will be presented in the Middle District of Florida on Tuesday.
U.S. Attorney Damian Williams said: “As alleged, Jonathan Ghertler impersonated some of the most prominent figures in finance and law to defraud companies of over $1 million and convince federal investigators to stop their investigation into his scheme. Ghertler is a serial fraudster and has been prosecuted for similar impersonation schemes and frauds in the past, including by this Office. Today’s arrest demonstrates this Office’s commitment to stopping recidivist fraudsters like Ghertler and to seeking justice for victims of financial frauds.”
FBI Assistant Director Michael J. Driscoll said: “As alleged, Ghertler impersonated high-level executives at two different financial firms and directed personnel from those firms to pay for non-existent internal investigations aimed at determining if there were links between individuals associated with the firms and Jeffrey Epstein. In addition, when he learned his fraud was being investigated, he impersonated a partner of a law firm purportedly representing one of the financial firms and attempted to convince federal agents that no crime had been committed. The action we have taken today will ensure Ghertler – in his true identity – will be forced to face the consequences of his deceit.”
According to the allegations in the Complaint:[1]
From at least in or about December 2021, up to and including at least June 2022, GHERTLER impersonated the General Counsel of a global private equity firm (the “Private Equity Firm”). In doing so, GHERTLER fraudulently caused the Private Equity Firm’s portfolio companies to pay at least $200,000 to fund a non-existent internal investigation into alleged links between senior employees of the Private Equity Firm and Jeffrey Epstein, the deceased financier who, before he died on or about August 10, 2019, had been charged in the Southern District of New York with sex trafficking of minors and conspiring to commit sex trafficking of minors.
In addition, from at least May 2021, up to and including February 2023, GHERTLER impersonated the founder of an investment firm (the “Investment Firm”), directing the Chief Executive Officer (the “CEO”) of one of the Investment Firm’s portfolio companies (the “IF Portfolio Company”) to make at least $865,000 in payments to fund a non-existent internal investigation related to the founder’s alleged relationship with Epstein. In recent weeks, GHERTLER, posing as the founder of the Investment Firm, had discussed with the CEO the possibility of making a large investment into a restaurant chain owned by another investment firm.
On or about February 7, 2023, after learning from the CEO that federal investigators were investigating a potentially fraudulent payment made by the Investment Firm, GHERTLER, posing as a partner (the “Partner”) at a global law firm, spoke on the phone with Special Agents with the FBI. GHERTLER told the federal agents that the IF Portfolio Company had chosen not to report the fraud because it had been “made whole” by the fraudster.
On or about February 10, 2023, GHERTLER, impersonating the Partner, spoke again with federal agents. GHERTLER said, after “consult[ing]” with “associates and lower-level partners” at the Global Law Firm who “used to work” at the United States Attorney’s Office for the Southern District of New York, “our position is that, uh, the law states that, umm, you know, if the money was paid back prior to, uh, the crime being, uh, discovered, uh, it’s not a crime.” GHERTLER added that his “client [i.e., the founder of the Investment Firm] has a lot of other issues he is dealing with right now, so this is one he really doesn’t need to deal with.”
* * *
GHERTLER, 60, of Orlando, Florida, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison; and one count of making false statements, which carries a maximum sentence of five years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the FBI and additionally thanked the Orange County, Florida, Sheriff’s Office and Orlando Police Department for their assistance.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Adam Sowlati is in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
Readout of Associate Attorney General Vanita Gupta’s Trip to MemphisRead the Press Release
Associate Attorney General Vanita Gupta traveled to Memphis today to attend the investiture of U.S. Attorney Kevin Ritz for the Western District of Tennessee and meet with local Memphis officials and community leaders.
Associate Attorney General Gupta met with Mayor Jim Strickland and Police Chief C.J. Davis to discuss the city’s request for assistance from the CRI-TAC initiative, funded by the Office of Community Oriented Policing Services (COPS Office) as well as the city’s response to the tragic death of Tyre Nichols. The Justice Department’s ongoing federal criminal civil rights investigation into the death of Tyre Nichols is being handled jointly by the U.S. Attorney’s Office for the Western District of Tennessee, the Civil Rights Division and the FBI.
In a meeting with two dozen local faith and community leaders, the Associate Attorney General heard from local leaders about the need for fair policing, as well as their efforts on the ground to support those most at risk of becoming intertwined with the criminal justice system. She discussed the department’s programs, including those that support police community trust and community violence intervention efforts, and the department’s ongoing efforts to make grant funding more accessible to local community groups.
In the afternoon, Western District of Tennessee District Judge S. Thomas Anderson presided over the investiture of U.S. Attorney Kevin Ritz. Associate Attorney General Gupta spoke at the ceremony, along with former U.S. Attorney Edward L. Stanton III and the Honorable Julia S. Gibbons of the U.S. Court of Appeals for the Sixth Circuit, for whom U.S. Attorney Ritz served as a law clerk. The investiture was attended by several federal district and court of appeals judges, as well as local law enforcement and community leaders and elected officials.
Associate Attorney General Vanita Gupta with U.S. Attorney Kevin Ritz and community leaders Associate Attorney General Vanita Gupta (front center), U.S. Attorney Kevin Ritz (front left), First Assistant U.S. Attorney Reagan Fondren (front right) and staff from the U.S. Attorney's Office for the Western District of TennesseeQueens Pharmacist Pleads Guilty to Illegally Distributing Oxycodone and Filing False Tax ReturnsRead the Press Release
Daniel E. Russo pleaded guilty today in federal court in Brooklyn to conspiracy to distribute and possess with intent to distribute oxycodone, distribution and possession of oxycodone, and nine counts of filing false personal and corporate tax returns. The proceeding was held before United States District Judge Dora L. Irizarry. When sentenced, Russo faces up to 20 years’ imprisonment for each of the drug counts and up to three years’ imprisonment for each of the tax counts.
Breon Peace, United States Attorney for the Eastern District of New York, Stuart M. Goldberg, Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division, Frank A. Tarentino III, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), and Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), announced the guilty plea.
“Russo was a drug dealer in a white coat,” stated United States Attorney Peace. “He abused his pharmacy license and the trust placed in him by the community to illegally distribute enormous amounts of oxycodone, spreading misery in the community and fueling addiction, all to enrich himself. This Office will continue working with federal and local law enforcement partners to investigate and prosecute medical professionals who illegally deal dangerous drugs with the same vigor as those who distribute drugs on the street.”
“At the same time Daniel Russo was illegally peddling oxycodone out of his pharmacy, he was pocketing – and not paying taxes on – income from those sales and others in his business,” stated Acting Deputy Assistant Attorney General Goldberg. “Everyone is required to pay their fair share of taxes, whether they make their money legitimately or through criminal activity.”
“This plea solidifies the fact that Russo blatantly ignored his role as a medical practitioner in order to line his pockets with cash,” stated DEA Special Agent-in-Charge Tarentino. “Through this illicit scheme, Russo enabled opioid addiction and misuse throughout Queens and Long Island communities. The DEA Long Island District Office-Tactical Diversion Squad, HHS-OIG, IRS, and the U.S. Attorney’s Office Eastern District of New York’s partnership exemplifies how investigations like this successfully arrest and prosecute individuals in positions that threaten public safety.”
“Instead of acting within the pharmacist code of ethics to act with integrity, Russo chose to use his position to commit criminal acts. He chose to distribute highly addictive drugs to the community he served, then failed to report and pay taxes on the proceeds of his illicit sales. Today, Russo chose to face the consequences of his actions—a good reminder that just like Al Capone, even criminals need to pay their taxes,” stated IRS-CI Special Agent-in-Charge Fattorusso.
As set forth in the indictment, court filings and in court this morning, Russo owned and operated Russo’s Pharmacy in Far Rockaway, Queens. Between March 2011 and June 2014, Russo conspired with others, including medical professionals and employees, to fill fraudulent prescriptions for oxycodone and dispense thousands of oxycodone pills in return for hundreds of thousands of dollars in cash. Over the course of the conspiracy, Russo’s co-conspirators delivered hundreds of fraudulent oxycodone prescriptions to Russo’s Pharmacy and would then retrieve the filled prescriptions—written out in various patients’ names—so that they could be dispensed elsewhere. Russo accepted payment mostly in cash for the prescriptions. Russo then hid the proceeds from the scheme and filed false corporate income tax returns for his pharmacy for the years 2013 through 2016, omitting the illegal proceeds. Russo also filed false individual income tax returns for the years 2012 through 2016. In total, Russo failed to report over $1 million in earnings, much of it generated from his oxycodone distribution scheme.
More than a dozen physicians for whom Russo filled prescriptions have since been convicted of crimes related to the distribution of oxycodone.
The government’s investigation was led by the DEA’s Long Island Tactical Diversion Squad, comprising agents and officers of the DEA, Nassau County Police Department, Suffolk County Police Department, Port Washington Police Department and Rockville Centre Police Department. The DEA Tactical Diversion Squad also worked in conjunction with officers and agents of the U.S. Department of Health & Human Services’ Office of the Inspector General and New York City Department of Investigation.
This case is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York as part of the Prescription Drug Initiative. In January 2012, this Office and the DEA, in conjunction with the five District Attorneys in this district, the Nassau and Suffolk County Police Departments, the New York City Police Department, the New York State Police and other key federal, state and local government partners launched the initiative to mount a comprehensive response to what the United States Department of Health and Human Services Center for Disease Control and Preventions called an epidemic increase in the abuse of so-called opioid analgesics. To date, the initiative has brought over 160 federal and local criminal prosecutions including the prosecution of 20 health care professionals; taken civil enforcement actions against a hospital, a pharmacy and pharmacy chain; removed prescription authority from numerous rogue doctors and expanded information-sharing among enforcement agencies to better target and pursue drug traffickers. The initiative also is involved in an extensive community outreach program to address the abuse of pharmaceuticals.
The government’s case is being prosecuted by Assistant United States Attorneys Francisco J. Navarro, Nomi D. Berenson and Andrew D. Wang and Trial Attorney Michael C. Vasiliadis of the Tax Division.
The Defendant:
DANIEL E. RUSSO
Age: 44
Cedarhurst, New YorkE.D.N.Y. Docket No. 20-CR-23 (DLI)
Prince George’s County Man Pleads Guilty to A Federal Wire Fraud Conspiracy to Obtain over $1 Million in Covid-19 Cares Act Loans and Unemployment Insurance BenefitsRead the Press Release
Greenbelt, Maryland – Jerry Phillips, a/k/a “Tian Juzo,” age 25, of Capitol Heights, Maryland, pleaded guilty today to a federal wire fraud conspiracy, aggravated identity theft, and illegal possession of a machine gun, related to a scheme to fraudulently obtain more than $1 million in COVID-19 CARES Act Paycheck Protection Program loan applications (PPP), Economic Injury Disaster loan applications (EIDL), and unemployment insurance claims.
The guilty plea was announced by Erek L. Barron, United States Attorney for the District of Maryland; Acting Special Agent in Charge Troy W. Springer, of the National Capital Region, U.S. Department of Labor - Office of Inspector General (DOL-OIG); Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge Amaleka McCall-Brathwaite of the Small Business Administration - Office of Inspector General, Eastern Region, and Acting Special Agent in Charge Mike Serra, of the Mid-Atlantic Region, Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG).
“Fraudsters like Jerry Phillips often commit other crimes, as demonstrated by his illegal possession of a ghost gun, which he modified to be a machine gun,” said United States Attorney Erek L. Barron. “We will continue to use every legal means necessary to remove illegal guns from our communities and to hold criminals accountable.”
“Jerry Phillips conspired with his brother to defraud the UI, PPP, and EIDL pandemic relief programs of more than $750,000 in funds intended to assist those who were truly in need from the financial impact brought about by the COVID-19 pandemic,” said Troy W. Springer, Acting Special Agent in Charge of the National Capital Region, U.S. Department of Labor – Office of Inspector General. “My office will continue to work closely with the U.S. Attorney’s Office for the District of Maryland and our other law enforcement partners to pursue those who unwisely chose to commit pandemic-related UI fraud and hold them accountable for their criminal conduct.”
“During this pandemic, we have all too often seen people take advantage of programs meant to help those in need, stealing money away from those in crisis,” said Kareem A. Carter, Special Agent in Charge of the IRS-CI Washington D.C. Field Office. “We will continue in our partnership with fellow federal agencies to investigate individuals who illegally use pandemic relief funds for personal financial gain.”
“Conspiring to fraudulently gain access to SBA program funds by falsifying personal identifying information is reprehensible,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “OIG and its law enforcement partners will relentlessly pursue fraudsters and bring them to justice. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”
According to his plea agreement, from March 2020 to February 2022, Phillips worked with his brother and co-defendant, Jaleel Phillips, and at least one other person. to fraudulently obtain COVID-19 related benefits, including filing fraudulent PPP loan applications, EIDL loan applications, and unemployment insurance claims. As detailed in the statement of facts, Phillips and his co-conspirators created fictitious aliases, used the personal identifying information of real people, and used defunct corporate entities or new business entities with no actual business operations to apply for EIDL and PPP loans, and unemployment benefits.
As part of the scheme, Phillips admitted that he created and used multiple fake identities to submit fraudulent PPP and EIDL loan applications and used the personal identifying information of more than 20 real people in furtherance of fraudulent unemployment claims. The fraudulently obtained PPP and EIDL loans and unemployment insurance claims were deposited into the bank accounts opened in the names of the aliases. The money was then withdrawn by Phillips and his co-conspirators through ATM withdrawals and purchases made on the associated debit and credit cards or transferred between the various financial accounts established in the aliases’ names. Phillips used $65,538.95 of the fraudulently obtained funds to purchase a 2020 Chevrolet Camaro, which he registered in his name at the Maryland Motor Vehicle Administration. Jerry Phillips also admitted that he personally obtained and controlled more than $1 million in fraud proceeds from the fraudulent PPPs and EIDLs.
A search of the defendant’s residence recovered more than 25 fake driver’s licenses from multiple states and multiple identification documents from different jurisdictions with the same alias. Law enforcement also recovered four “ghost guns” which Jerry Phillips purchased online, using an alias. Phillips admitted that he illegally modified one of the ghost guns into a machine gun capable of firing multiple rounds with one pull of the trigger.
Jaleel Phillips, age 25, of Capitol Heights, Maryland, previously pleaded guilty to his role in the wire fraud conspiracy and faces a maximum sentence of 30 years in federal prison. U.S. District Judge Theodore D. Chuang has scheduled sentencing for April 14, 2023, at 9:30 a.m.
Jerry Phillips faces a maximum sentence of 30 years in federal prison for the wire fraud conspiracy; a mandatory sentence of two years in federal prison, consecutive to any other sentencing imposed, for aggravated identity theft; and a maximum of 10 years in federal prison for illegal possession of a machine gun. Judge Chuang has scheduled sentencing for Jerry Phillips on May 16, 2023, at 2 p.m.
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.
United States Attorney Erek L. Barron commended the DOL-OIG, IRS-CI, SBA-OIG, FDIC-OIG, and the Mississippi Attorney General’s Office for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Harry M. Gruber, who is prosecuting the federal case. He also thanked the Office of Mississippi Attorney General Lynn Fitch-Public Integrity Division, for its assistance.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to report fraud, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud.
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Portland Man Sentenced to Federal Prison for Shipping Firearm and Ammunition to the U.K., Possessing MethamphetamineRead the Press Release
PORTLAND, Ore.—A Portland man was sentenced to the federal prison today after he was caught shipping a handgun and ammunition to the United Kingdom and possessing a pound of methamphetamine in his residence.
Lyle Justin Schirm, 35, was sentenced to 30 months in federal prison and five years’ supervised release, resolving two separate criminal cases.
According to court documents, in November 2020, law enforcement authorities in the U.K. notified Homeland Security Investigations (HSI) about a FedEx parcel shipped from Portland to the U.K. containing a 9mm handgun and ammunition. When interviewed by U.S. law enforcement, Schirm admitted to shipping the firearm. Schirm also told investigators he learned about shipping firearms to the U.K. by watching a video on YouTube. HSI later confirmed Schirm did not have a license to ship a firearm to the U.K.
On November 5, 2020, as part of a separate drug trafficking investigation, agents from the U.S. Drug Enforcement Administration (DEA) executed a search warrant on Schirm’s northeast Portland apartment. U.S. Customs and Border Protection (CBP) had previously notified DEA that Schirm was receiving international shipments of items used to manufacture counterfeit prescription pills. During their search of Schirm’s residence, investigators located what appeared to be a small laboratory used to make counterfeit Xanax pills. In addition, they located and seized two firearms, ammunition, over $14,000 in cash, and approximately one pound of methamphetamine.
On March 9, 2021, a federal grand jury in Portland returned an indictment charging Schirm with smuggling goods from the U.S. One month later, on April 6, 2021, he was indicted a second time for possessing with intent to distribute methamphetamine, possession of a trademark die, criminal attempt to manufacture adulterated and misbranded drugs, and possession of a firearm in furtherance of a drug trafficking crime.
On May 24, 2022, Schirm pleaded guilty to smuggling goods from the U.S. and possessing with intent to distribute methamphetamine.
These cases were investigated by HSI and DEA with assistance from CBP and the Clackamas County Interagency Task Force (CCITF). They were prosecuted by Cassady A. Adams, Assistant U.S. Attorney for the District of Oregon.
Political Consultant Sentenced for Scheme Involving Illegal Foreign Campaign Contribution to 2016 Presidential CampaignRead the Press Release
A Texas man was sentenced today to 18 months in prison for his role in funneling illegal foreign campaign contributions from a Russian national to a 2016 presidential campaign.
According to court documents, Jessie R. Benton, 45, of The Woodlands, schemed with another political advisor to funnel political contributions to a 2016 presidential campaign from a Russian national seeking to meet and take a picture with the presidential candidate. Benton arranged for the Russian national – whose nationality Benton concealed from the campaign and the candidate – to attend a campaign fundraising event and to take a picture with the candidate.
As such attendance and engagement required a contribution, Benton caused the Russian national to wire $100,000 to Benton’s political consulting firm to make an illegal foreign contribution to the campaign. To disguise the scheme, Benton created a fake invoice, which falsely identified the funds as payment for consulting services. Benton acted as a straw donor and contributed $25,000 of the Russian national’s money to the campaign, falsely identified himself as the contributor, and pocketed the remaining $75,000. Because Benton falsely claimed to have given the contribution himself, the relevant campaign entities unwittingly filed reports with the Federal Election Commission (FEC) that inaccurately reported Benton – instead of the Russian national – as the source of the funds.
In November 2022, Benton was convicted at trial of conspiring to solicit and cause an illegal campaign contribution by a foreign national, effecting a conduit contribution, and causing false records to be filed with the FEC.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Randy Grossman for the Southern District of California, U.S. Attorney Matthew M. Graves for the District of Columbia, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Special Agent in Charge Stacey Moy of the FBI San Diego Field Office made the announcement.
The FBI San Diego Field Office investigated the case.
Trial Attorneys Rebecca G. Ross and Michelle K. Parikh of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Michelle L. Wasserman for the Southern District of California, while serving in her capacity as a Special Assistant U.S. Attorney for the District of Columbia, prosecuted the case.
Pittsfield Nurse Sentenced for Stealing Fentanyl from Critical Care PatientRead the Press Release
BOSTON – A registered nurse was sentenced today in federal court in Springfield for stealing fentanyl being administered to a critical care patient.
Jessica Lotto, 37, of Pittsfield, was sentenced by U.S. District Court Judge Mark G. Mastroianni to three months in prison and one year of supervised release. On May 31, 2022, Lotto pleaded guilty to one count of acquiring a controlled substance by fraud, deceit or subterfuge.
In February 2019, while working as a nurse at Berkshire Medical Center, Lotto entered a patient’s room in the critical care unit where she used a syringe to steal fentanyl being administered to the patient through an IV line. The patient was sedated and unaware of Lotto’s actions. Lotto later admitted to taking the drug from the patient.
United States Attorney Rachael S. Rollins; Fernando McMillan, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office; and Margret R. Cooke, Commissioner of the Massachusetts Department of Public Health, made the announcement today. Assistant U.S. Attorney Deepika Bains Shukla, Chief of Rollins’ Springfield Branch Office prosecuted the case.
Pensacola Violent Felon Convicted of Drug Trafficking ChargesRead the Press Release
PENSACOLA, FLORIDA – A federal jury convicted Michael Joe Green, II, 49, of Pensacola, of conspiracy to distribute five kilograms or more of cocaine and 500 grams or more of methamphetamine, and the distribution of 500 grams or more of cocaine. The guilty verdict, returned today at the conclusion of a four-day trial, was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
In July 2021, the United States Postal Inspection Service seized a package sent from Houston, Texas, to Pensacola, Florida containing over two kilograms of cocaine. An extended multi-agency investigation determined that Green had purchased certain unique packing materials used to ship the cocaine and directed his girlfriend to mail it to his mother’s address in Pensacola on his behalf. The investigation also revealed that during late 2021 and early 2022, Green made frequent trips to the Houston area to obtain large quantities of cocaine and methamphetamine and directed the transport of the drugs back to the Pensacola area for distribution.
In February 2022, Green was driving from Houston in tandem rental vehicles with his wife and others when both cars were stopped by law enforcement in Louisiana. Officers found and seized approximately eight pounds of cocaine and over half a kilogram of methamphetamine pills in the rental vehicle occupied by Green’s wife. On the same day, search warrants were executed at two residences in Escambia County associated with Green. Loaded firearms, small amounts of drugs, and documents addressed to Green at both residences were found in the houses.
Sentencing in this case is set for May 22, 2023, at 9:00 a.m., at the United States Courthouse in Pensacola before United States District Judge M. Casey Rodgers. Due to the large quantity of drugs involved in his crimes and his multiple prior serious violent felony convictions—including armed burglary, armed robbery, aggravated assault, shooting in an occupied vehicle, resisting arrest with violence, and aggravated battery with great bodily harm, for which he served a sentence in state prison – Green faces a mandatory minimum term of imprisonment of 25 years and a maximum of life in prison.
This case resulted from a joint investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Postal Inspection Service, the Escambia County Sheriff’s Office, the Drug Enforcement Administration, the United States Marshals Service, and Lake Charles (Louisiana) Police Department. Assistant U.S. Attorneys David L. Goldberg and Jennifer H. Callahan prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust
and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
As part of its PSN strategy, the United States Attorney’s Office is encouraging everyone to lock their car doors, particularly at night. Burglaries from unlocked automobiles are a significant source of guns for criminals in the Northern District of Florida. Please do your part and protect yourself by locking your car doors.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Pascagoula Woman Pleads Guilty to Embezzlement of Labor FundsRead the Press Release
Gulfport, Miss. -- A Pascagoula woman pled guilty to embezzlement of labor organization funds, announced U.S. Attorney Darren J. LaMarca.
According to court documents, from January 2016 through February 2020, Lisa Bennett, 51, an elected business agent and then self-appointed secretary and treasurer of the Office and Professional Employees International Union (“OPEIU) Local 204, in Pascagoula, embezzled and converted to her own use assets in the form of moneys and funds of the OPEIU Local 204 labor organization.
Bennett’s embezzlement included receipt of unauthorized checks from the union’s checking account to herself for lost time she was not entitled to receive, personal cell phone bills, the unapproved doubling of her salary and other unauthorized payments and expenses. The indictment charged Bennett embezzled labor assets in the approximate amount of $33,236.93.
Bennett is scheduled to be sentenced on May 26, 2023, at 10:30 a.m., in Gulfport. She faces a maximum penalty of 5 years in prison and a $10,000 fine. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the U. S. Department of Labor, Employment Standards Administration, Office of Labor-Management Relations.
The case is being prosecuted by Assistant U.S. Attorneys John Meynardie and Andrea Jones.
Okmulgee County Resident Pleads Guilty to Double Homicide in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Austin Dean McMahan, age 24, of Okmulgee, Oklahoma entered a guilty plea to an Information charging him with two counts of Murder in Indian Country – Second Degree, punishable by up to life imprisonment, a fine up to $250,000.00, or both.
The Information alleged that on or about April 7, 2020, the defendant unlawfully, with malice aforethought, shot and killed two victims. During the plea hearing, the defendant admitted that he picked up a handgun and unlawfully shot the first victim in her head and then shot the second victim numerous times throughout his body. The defendant committed these murders while in their home in Okmulgee, Oklahoma.
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted the case because the Defendant is a member of a federally recognized Indian tribe and the crimes occurred in Okmulgee County, within the boundaries of the Muscogee (Creek) Nation Reservation and within the Eastern District of Oklahoma.
The charges arose from an investigation by the Okmulgee Police Department and the Federal Bureau of Investigation.
The Honorable Jason A. Robertson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Casey Richmond and Department of Justice Criminal Division Organized Crime and Gang Section Trial Attorney Cesar Rivera-Giraud represented the United States.
Ohio Man Sentenced for Methamphetamine PossessionRead the Press Release
United States Attorney Steven Russell announced that Stephen Clark, 36, of Akron, Ohio, was sentenced today in federal court in Omaha, Nebraska, for Possession With Intent to Distribute Methamphetamine. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Clark to 66 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a five-year term of supervised release.
On July 16, 2020, DEA agents at the Omaha bus terminal identified a suspicious suitcase that had arrived on a bus from Denver. Agents asked the passengers, including Clark, if the suitcase belonged to them and no one claimed it. Considering the suitcase abandoned, agents searched it and found 12 pounds of methamphetamine inside. Surveillance footage from the bus company showed Clark in possession of the suitcase in Denver.
This case was investigated by the Drug Enforcement Agency.
New York Pharmacist Pleads Guilty to Narcotics and Tax OffensesRead the Press Release
A New York pharmacist pleaded guilty today to conspiracy to distribute and possess with intent to distribute oxycodone, distribution and possession of oxycodone and filing false business and personal income tax returns.
According to court documents and statements made in court, Daniel E. Russo owned and operated Russo’s Pharmacy, Inc., a drug store located in Far Rockaway, Queens. From 2011 through 2014, Russo conspired with others to illegally distribute oxycodone, a controlled substance. For the years 2013 through 2016, Russo filed false tax returns with the IRS on behalf of Russo’s Pharmacy that underreported the gross receipts and ordinary business income of the pharmacy. Russo also filed false personal tax returns for the years 2012 through 2016 that underreported the income he received from Russo’s Pharmacy. In total, Russo caused a tax loss of more than $415,000.
“At the same time Daniel Russo was illegally peddling oxycodone out of his pharmacy, he was pocketing – and not paying taxes on – income from those sales and others in his business,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “Everyone is required to pay their fair share of taxes, whether they make their money legitimately or through criminal activity.”
“All too often the opioid epidemic has shown that health care professionals wearing white coats are drug dealers,” said U.S. Attorney Breon Peace from the Eastern District of New York. “Russo abused his pharmacy license and the trust placed in him by the community to illegally distribute enormous amounts of oxycodone, spreading misery in the community and fueling addiction, all to enrich himself. My Office will continue working with federal and local law enforcement partners to investigate and prosecute medical professionals who illegally deal dangerous drugs with the same vigor as those who distribute drugs on the street.”
Russo faces a maximum penalty of 20 years in prison for each of the conspiracy and possession with intent to distribute counts, and three years in prison for each count of filing a false tax return. The defendant also faces a period of supervised release, restitution and monetary penalties, as well as forfeiture. U.S. District Court Judge Dora L. Irizarry will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Special agents of the Drug Enforcement Administration, Department of Health and Human Services, and IRS-Criminal Investigation investigated the case.
Trial Attorney Michael C. Vasiliadis of the Justice Department’s Tax Division and Assistant U.S. Attorneys Francisco Navarro, Nomi D. Berenson and Andrew D. Wang prosecuted the case.
New Orleans Man Sentenced for Conspiracy to Commit Bank FraudRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that GREGORY JOSEPH HERNANDEZ, age 67, of New Orleans, Louisiana, was sentenced yesterday in United States District Court on one count of Conspiracy to Commit Bank Fraud, in violation of Title 18, United States Code, Section 371.
According to court documents, HERNANDEZ stole checks from the mail and altered the information on the stolen checks to include his name or the name of a co-conspirator. On two instances, HERNANDEZ was captured on surveillance video rifling through a company’s mailbox in New Orleans and stealing pieces of mail. HERNANDEZ and his co-conspirators then deposited and cashed the altered checks at financial institutions in the New Orleans area. Through this scheme, HERNANDEZ caused an intended loss of approximately $56,946.88 to financial institutions.
U.S. District Court Judge Carl J. Barbier sentenced HERNANDEZ to serve 33 months in prison, to be followed by three (3) years of supervised release. HERNANDEZ was ordered to pay restitution to the First Horizon Bank in the amount of $31,426.21. Judge Barbier also imposed a mandatory special assessment fee of $100.00.
U.S. Attorney Evans praised the work of the United States Postal Inspection Service and the New Orleans Police Department in this investigation. The prosecution of this case is being handled by Assistant U.S. Attorney Maria Carboni.
New Haven Man Charged with Narcotics Distribution OffenseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, Jean Pierre Njock, Acting Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and New Haven Police Chief Karl Jacobson announced that ZAQUAWN ARRINGTON, also known as “Dreads,” 23, of New Haven, was arrested today on a federal criminal complaint charging him with possession with intent to distribute, and distribution of, controlled substances.
As alleged in court documents and statements made in court, in April 2022, Arrington began serving a three-year term of supervised release, which followed a federal conviction for a crack cocaine distribution offense. Between October and December 2022, investigators made controlled purchases of suspected crack cocaine and fentanyl from Arrington and his associates. When he was arrested this morning, Arrington possessed a quantity of suspected crack and $500 in cash.
Arrington appeared today before U.S. Magistrate Judge Maria E. Garcia in New Haven and was ordered detained.
The charge of possession with intent to distribute, and distribution of, controlled substances carries a maximum term of imprisonment of 20 years.
U.S. Attorney Avery stressed that a criminal complaint is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Federal Bureau of Investigation’s New Haven Safe Streets/Gang Task Force and the New Haven Police Department. The Task Force includes members from the Connecticut State Police, Connecticut Department of Correction and the New Haven, Milford, East Haven and West Haven Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and Nathaniel J. Gentile.
Montana Man Convicted of Federal Hate Crimes and Firearms Charges for Shooting Intended to Rid Community of the Lesbian and Gay MembersRead the Press Release
A federal jury convicted a Montana man of hate and firearms crimes for firing an AK-style assault rifle at the residence of a woman, who identified as lesbian, and was home at the time.
After a four-day trial that began on Feb. 14, the jury found John Russell Howald, 46, of Basin, Montana, guilty of hate crime acts and discharge of firearm during and in relation to a crime of violence as charged in a superseding indictment.
“This defendant is being held accountable for attempting to violently eliminate the entire LGBTQ community in a small Montana town,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This hate crime and violent campaign targeting the LGBTQ community is a reminder of the epidemic of hate violence targeting people based on their sexual orientation. All people have the right to feel safe in their homes and communities, regardless of who they love. The Civil Rights Division will continue to work with our federal, state, and local partners to safeguard the civil rights of LGBTQ people affected by hate violence, hold perpetrators accountable, and ensure justice for victims of bias-motivated crimes.”
“The victim in this case was targeted by the defendant for no other reason than her sexual orientation when he fired bullets at her home while she was inside of it. There will be zero tolerance by our office in prosecuting those who commit hate crimes against our fellow Montanans, as no one should have to live in fear of potentially deadly violence simply because of whom they love,” said U.S. Attorney Jess Laslovich for the District of Montana. “I am pleased the jury agreed with us and I sincerely thank Assistant U.S. Attorney Ethan R. Plaut and Trial Attorney Eric N. Peffley, Criminal Section, Civil Rights Division, U.S. Department of Justice, along with the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives and Jefferson County’s Sheriff’s Office for investigating and prosecuting this case.”
“Hate crimes are especially devastating because a vicious act against one person is an attack on an entire community,” said Acting Special Agent in Charge Cheyvoryea Gibson of the FBI Salt Lake City Field Office. “I want to reassure Montana citizens the FBI is committed to defending and protecting the rights of all persons and encourage the public to report hate crimes to the FBI and local law enforcement.”
According to court documents and statements in court, on March 22, 2020, Howald went on a self-described mission to rid the town of Basin of its lesbian and gay community. Armed with three rifles and two pistols, and knowing that the victim identified as a lesbian, Howald approached her residence on foot and fired an AK-style assault rifle at her property. Several rounds went through the victim’s fence and rounds hit her yard and porch. One round traveled through a wall of the home, bounced off the kitchen ceiling and lodged in a wall in the room. The victim was at home at the time but was not struck.
After firing at the victim’s house, the government alleged, Howald walked down the street toward other houses occupied by people who identify and are known locally as gay or lesbian. A church service had just finished and individuals leaving church saw Howald walking on street, recognized him and approached. The individuals heard Howald talk about his mission of killing lesbian and gay people in town and saw his weapons. They approached and tried to talk Howald down. One of those people, a pastor, unknowingly had left on a recording device that he used for his sermons. The device recorded about 10 minutes of his interaction with Howald until Howald demanded that the pastor walk away. The recording captured Howald making statements that he might have killed a lesbian and that he hoped he had, and that he was going to get rid of lesbians and queers in Basin. The recording also captured Howald firing off several more rounds during his interaction with these individuals.
Responding to a 911 call to the scene, a Jefferson County Sheriff’s deputy ordered Howald to put down his guns. Howald refused, pointed a rifle at the deputy and fled on foot, firing at least one more shot as he went. Sheriff’s officers arrested Howald the next day and found that he had a knife and loaded pistol on his person and an AR-style rifle and revolver in his car. During a search of his camper, officers found an AK-style rifle, a hunting rifle and ammunition.
Howald faces a maximum of life imprisonment, a $250,000 fine and five years of supervised release on the hate crime conviction and a mandatory minimum 10 years to life imprisonment, consecutive to any other sentence, a $250,00 fine and five years of supervised release on the firearm conviction.
The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing is set for June 15 before Chief U.S. District Judge Brian M. Morris. Howald was detained pending further proceedings.
The FBI Salt Lake City Field Office, ATF and Jefferson County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Ethan R. Plaut for the District of Montana and Trial Attorney Eric N. Peffley of the Civil Rights Division’s Criminal Section prosecuted the case.
Montana Man Convicted of Federal Hate Crimes and Firearms Charges for Shooting Intended to Rid Community of the Lesbian and Gay MembersRead the Press Release
WASHINGTON — A federal jury convicted a Montana man of hate and firearms crimes for firing an AK-style assault rifle at the residence of a woman, who identified as lesbian, and was home at the time.
After a four-day trial that began on Feb. 14 in Helena, the jury found John Russell Howald, 46, of Basin, guilty today of hate crime acts and discharge of firearm during and in relation to a crime of violence as charged in a superseding indictment.
“This defendant is being held accountable for attempting to violently eliminate the entire LGBTQ community in a small Montana town,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This hate crime and violent campaign targeting the LGBTQ community is a reminder of the epidemic of hate violence targeting people based on their sexual orientation. All people have the right to feel safe in their homes and communities, regardless of who they love. The Civil Rights Division will continue to work with our federal, state, and local partners to safeguard the civil rights of LGBTQ people affected by hate violence, hold perpetrators accountable, and ensure justice for victims of bias-motivated crimes.”
“The victim in this case was targeted by the Defendant for no other reason than her sexual orientation when he fired bullets at her home while she was inside of it. There will be zero tolerance by our office in prosecuting those who commit hate crimes against our fellow Montanans, as no one should have to live in fear of potentially deadly violence simply because of whom they love. I am pleased the jury agreed with us and I sincerely thank Assistant U.S. Attorney Ethan R. Plaut and Trial Attorney Eric N. Peffley, Criminal Section, Civil Rights Division, U.S. Department of Justice, along with the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives and Jefferson County’s Sheriff’s Office for investigating and prosecuting this case.” U.S. Attorney Laslovich said.
“Hate crimes are especially devastating because a vicious act against one person is an attack on an entire community,” said Acting Special Agent in Charge Cheyvoryea Gibson of the Salt Lake City FBI. “I want to reassure Montana citizens the FBI is committed to defending and protecting the rights of all persons and encourage the public to report hate crimes to the FBI and local law enforcement.”
According to court documents and statements in court, on March 22, 2020, Howald went on a self-described mission to rid the town of Basin of its lesbian and gay community. Armed with three rifles and two pistols, and knowing that the victim identified as a lesbian, Howald approached her residence on foot and fired an AK-style assault rifle at her property. Several rounds went through the victim’s fence and rounds hit her yard and porch. One round traveled through a wall of the home, bounced off the kitchen ceiling and lodged in a wall in the room. The victim was at home at the time but was not struck.
After firing at the victim’s house, the government alleged, Howald walked down the street toward other houses occupied by people who identify and are known locally as gay or lesbian. A church service had just finished and individuals leaving church saw Howald walking on the street, recognized him and approached. The individuals heard Howald talk about his mission of killing lesbian and gay people in town and saw his weapons. They approached and tried to talk Howald down. One of these people, a pastor, unknowingly had left on a recording device that he used for his sermons. The device recorded about 10 minutes of his interaction with Howald until Howald demanded that the pastor walk away. The recording captured Howald making statements that he might have killed a lesbian and that he hoped he had, and that he was going to get rid of lesbians and queers in Basin. The recording also captured Howald firing off several more rounds during his interaction with these individuals.
Responding to a 911 call to the scene, a Jefferson County Sheriff’s deputy ordered Howald to put down his guns. Howald refused, pointed a rifle at the deputy and fled on foot, firing at least one more shot as he went. Sheriff’s officers arrested Howald the next day and found that he had a knife and loaded pistol on his person and an AR-style rifle and revolver in his car. During a search of his camper, officers found an AK-style rifle, a hunting rifle and ammunition.
Howald faces a maximum of life imprisonment, a $250,000 fine and five years of supervised release on the hate crime conviction and a mandatory minimum 10 years to life imprisonment, consecutive to any other sentence, a $250,00 fine and five years of supervised release on the firearm conviction.
The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing is set for June 15 before Chief U.S. District Judge Brian M. Morris. Howald was detained pending further proceedings.
The FBI, ATF and Jefferson County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Ethan R. Plaut for the District of Montana and Trial Attorney Eric N. Peffley of the Civil Rights Division’s Criminal Section prosecuted the case.
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Midland Meth Trafficker Sentenced to 15 Years in Federal PrisonRead the Press Release
MIDLAND, Texas – A San Antonio man was sentenced in federal court in Midland today to 181 months in prison for his role in a methamphetamine distribution ring in Midland.
According to court documents, Jimmy Dwayne Smith, 42, and a co-conspirator, Vanessa Elfreda Flores, 40, had been distributing methamphetamine in the Midland area in June 2022. Detectives conducted several controlled purchases of the drug from both Smith and Flores and, in July 2022, obtained search warrants for Smith’s motel room and Flores’s apartment. Through those warrants, the detectives recovered six firearms, including several loaded with extended magazines; thousands of dollars; methamphetamine; and other drug paraphernalia. Smith was arrested on July 21, 2022 and has remained in federal custody since the arrest.
Smith and Flores each pleaded guilty to one count of conspiracy to possess with intent to distribute 50 grams or more of methamphetamine. Smith also pleaded guilty to one count of possession of a firearm in furtherance of a drug trafficking crime.
Flores was sentenced to 108 months in federal prison on Dec. 7, 2022. A third defendant, Brook Clayton Aslin, 40, of Midland, whom Flores had supplied with methamphetamine and who had distributed more than one kilogram of methamphetamine from January to June 2022, was sentenced to 151 months in federal prison on Jan. 5, 2023.
“Methamphetamine is an extremely dangerous drug that continues to plague our Texas communities,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “Our office makes it a priority to disrupt the operations of those who traffic in this poison, and I thank our local law enforcement partners for also prioritizing anti-drug trafficking, helping us bring violators to justice.”
The Midland Police Department Narcotics Unit investigated the case.
Assistant U.S. Attorney Joe Mahoney prosecuted the case, with Assistant U.S. Attorney Mark Tindall handling the forfeiture component.
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Michigan Tax Return Preparer Agrees to Preliminary InjunctionRead the Press Release
A federal court in the Eastern District of Michigan has endorsed an agreed preliminary injunction barring a Detroit-area tax return preparer and her businesses from preparing federal tax returns for others until the date on which trial on whether a permanent injunction is warranted occurs.
The preliminary injunction was entered against Annetta Powell and her tax preparation businesses, known to customers as “The Tax Experts,” and registered to do business in Michigan under varying entity names: Alliance Tax Services, Inc., Nationwide Tax Services, Inc., Tax Expert Stores, Inc., United Tax Services, Inc., Top Financial Specialists, Inc. doing business as The Tax Experts, United Financial Team Corporation doing business as The Tax Experts, and Speedy Tax Stores Corporation doing business as The Tax Experts. The preliminary injunction also enjoins Jasmine Powell from preparing or filing federal tax returns. According to the amended complaint filed against the defendants, Powell and her companies had prepared returns that, among other things, reported inflated or fraudulent business losses, claimed false or inflated earned income credits, reported fraudulent filing statues, and claimed improper education credits, all of which resulted in tax refunds to which customers were not entitled. According to the amended complaint, the fraudulent tax returns that Powell and her business prepared for customers cost the United States over one and a half million dollars in tax revenue.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers. The IRS also offers 10 tips to avoid tax season fraud and ways to safeguard their personal information.
In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $72,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Mexican National Sentenced to 8 Years’ Imprisonment for Drug Trafficking CrimeRead the Press Release
United States Attorney Steven Russell announced that Guadalupe Ayala-Armienta, 36, of Mexico, was sentenced today in federal court in Omaha, Nebraska for Possession with Intent to Distribute Methamphetamine. Chief United States District Court Judge Robert F. Rossiter, Jr. sentenced Ayala-Armienta to 96 months’ imprisonment on the drug charge. There is no parole in the federal system. After his release from prison he will be subject to deportation. He was also ordered to serve a five-year term of supervised release.
On May 25, 2021, the Douglas County Sheriff’s Office was investigating suspected drug trafficking at an Omaha motel when they stopped a vehicle leaving the motel that Ayala-Armienta was a passenger in. Deputies learned that Ayala-Armienta had rented a room back at the hotel and a drug detecting canine alerted to the odor of narcotics coming from within. A search warrant was obtained, and deputies located approximately 10 pounds of methamphetamine, drug paraphernalia, and approximately $37,000 in drug proceeds within the room.
This case was investigated by the Douglas County Sheriff’s Office and the Drug Enforcement Administration.
Mexican Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Steven Russell announced that Socorro Alejandres Alvarez, 32, of Mexico, was sentenced today in federal court in Lincoln, Nebraska, for distribution of 500 grams or more of methamphetamine. Senior United States District Judge John M. Gerrard sentenced Alvarez to 180 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a 10-year term of supervised release.
On June 24, 2020, while incarcerated in the Great Plains Correctional Facility in Hinton, Oklahoma, Alvarez used an illicit cell phone to contact Rosalio Reynosao Arrellano in Los Angeles, California, to arrange for a package of methamphetamine to be delivered to Nebraska. Law enforcement intercepted the package, and it contained 420 grams of actual methamphetamine. Alvarez had made prior shipments of methamphetamine to Nebraska while incarcerated. These shipments were sent to Shannon Rojas, Shane Lawrence, and Jeremiah Schnoor.
Shannon Rojas was sentenced to 70 months’ incarceration on May 27, 2022, for distribution of 50 grams or more of methamphetamine. Shane Lawrence was sentenced to 198 months’ incarceration on February 11, 2022, for possession with intent to distribute 5 grams or more of actual methamphetamine. On February 15, 2023, Jeremiah Schnoor entered a plea of guilty to conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine. He is scheduled for sentencing on May 18, 2023.
This case was investigated by the WING (Western Nebraska Intelligence Narcotics Group), which is made up of the Nebraska State Patrol, Scotts Bluff County Sheriff’s Office, Scottsbluff Police Department, and the Sidney Police Department. Kearney Police Department was also involved in this investigation as was the Central Nebraska Drug and Safe Streets Task Force (CNDSSTF). CNDSSTF consists of the Federal Bureau of Investigation, Grand Island Police Department, Hall County Sheriff’s Office, and the Nebraska State Patrol.
This effort is part of an Organized Crime Drug Enforcement Task Force (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.
Mexican Citizen Sentenced for Drug Trafficking CrimeRead the Press Release
United States Attorney Steven Russell announced that Iris Gallardo-Salado, 22, of Mexico, was sentenced today in federal court in Omaha, Nebraska, for possessing with the intent to distribute methamphetamine. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Gallardo-Salado to 96 months’ imprisonment. As part of her plea, Gallardo-Salado forfeited her interest in $26,147 in United States currency - drug proceeds seized from her residence. There is no parole in the federal system. Gallardo-Salado will likely be deported by U.S. immigration authorities when she completes her sentence of imprisonment. After her release from prison, she will also be subject to a two-year term of supervised release.
On October 26, 2021, as part of an investigation into drug trafficking, Special Agents from the Drug Enforcement Administration and Omaha Police Department narcotics detectives searched Gallardo-Salado and co-defendant Darbelio Lorenzo-Genchi’s home in South Omaha. There, agents seized 17 pounds of methamphetamine. They also located packaging materials, a drug scale, money wire receipts, bundled U.S. currency, and drug ledgers.
Lorenzo-Genchi pled guilty to possession with intent to distribute methamphetamine. He will be sentenced on March 3, 2023.
This case was investigated by the Omaha Police Department and Drug Enforcement Administration.
Memphis Woman Pleads Guilty to Advertising a Minor for Commercial SexRead the Press Release
Jackson, Miss. – A Memphis woman pled guilty to advertising a minor for commercial sex, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
Autumn Brooke Julian, 22, pled guilty on February 13, 2023, in U.S. District Court in Jackson.
According to court documents and statements made in court, Julian used the internet to promote prostitution by posting advertisements depicting a minor on the website MegaPersonals. Julian’s co-defendant, Wayne Settles, previously pled guilty to sex trafficking of a minor and interstate sex trafficking. He was sentenced to 135 months in federal prison, followed by ten years of supervised release.
Julian will be sentenced on May 16, 2023, and faces a maximum penalty of five years in prison and a $250,000 fine. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Federal Bureau of Investigation, Mississippi Attorney General’s Office, and Richland Police Department investigated this case.
Assistant U.S. Attorney Kimberly Purdie is prosecuting 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.
Maryland Man Sentenced to Life Imprisonment for Participating in the Murder Three People Including A Federal WitnessRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jerell Adgebesan, age 35, of Baltimore, Maryland and Hagerstown, Maryland, was sentenced to life imprisonment for his role in the June 25, 2016 murders of three individuals in Mercersburg, Franklin County, one of whom was cooperating with state and federal drug investigators. The sentence was imposed by United States District Court Judge Christopher C. Conner, who also sentenced Adgebesan to a consecutive 20-year term of imprisonment on a companion robbery charge.
According to United States Attorney Gerard M. Karam, Adgebesan's conviction was the result of a six-year investigation into three murders that occurred on June 25, 2016, on a property along Welsh Run Road in Mercersburg, Franklin County. When Pennsylvania State Police officers were called to the scene, they found the bodies of Wendy Ann Chaney, 39, Hagerstown, Md, Brandon Cole, 47, Fayetteville, PA, and Phillip Matthew Jackson, 36, Mercersburg, PA, in a barn on victim Jackson’s property. All were shot. The three victims had their hands zipped-tied behind their backs and had been set on fire. Jackson and Cole were shot once in the head. Chaney was shot twice, once in the back and one in the back of her neck. Wendy Chaney and Brandon Cole were already dead when the police responded to the scene. Phillip Jackson was transported to York Hospital where he died shortly after arrival.
The evidence previously presented at the guilty plea proceeding in June of 2022 established that Wendy Chaney was in a relationship with co-defendants Kevin Coles and Torey White and had been previously assisting both with their drug distribution operation. Coles, White and co-defendant Devin Dickerson learned that Chaney was cooperating with federal authorities and contracted for her to be murdered. Adgebesan and co-defendant Kenyatta Corbett recruited members of a Baltimore based gang known as the Black Guerilla Family and others from Baltimore to travel to the Jackson property to kill Wendy Chaney. Adgebesan knew these individuals from Baltimore and acknowledged he and Corbett recruited them to murder Chaney. The killers were promised that they could take as payment $20,000 that was to be in a safe in the barn and any drugs and firearms that they could locate on the Jackson property. Once there, the killers encountered not only Wendy Chaney but also Brandon Cole and Phillip Jackson. Chaney was killed to protect the drug trafficking activities of Coles, White, Dickerson, Corbett, and others. Jackson and Cole were murdered to prevent them from being witnesses to the crimes of violence that were committed at the Jackson property. The killers never found any money on the property but stole some drugs and firearms.
The following individuals were charged along with Adgebesan as a result of the investigation:
- Devin Dickerson, age 31, Hagerstown, pleaded guilty to conspiracy to distribute heroin and crack cocaine and is awaiting sentencing;
- Kenyatta Corbett, age 38, Hagerstown, pleaded guilty to Hobbs Act robbery and to being an accomplice to the use of a firearm during Hobbs Act robbery and is awaiting sentencing;
- Michael Buck, age 30, Hagerstown, pleaded guilty to Hobbs Act robbery and to being an accomplice to the use of a firearm during Hobbs Act robbery and is awaiting sentencing;
- Nicholas Preddy, age 29, Baltimore, pleaded guilty to attempting to kill a witness and is awaiting sentencing;
- Johnnie Jenkins-Armstrong, age 22, Baltimore, pleaded guilty to Hobbs Act robbery and to being an accomplice to the use of a firearm during Hobbs Act robbery and is awaiting sentencing;
- Terrance Lawson, age 31, Baltimore, sentenced to time served for attempting to intimidate a witness;
- Tyrone Armstrong, age 30, Baltimore, sentenced to time served for attempting to intimidate a witness; and
- Christopher Johnson, age 31, Baltimore, Maryland, pleaded guilty to multiple counts including murder for hire and is awaiting sentencing;
- Mark Johnson, 35, Baltimore, Maryland, pled guilty to obstructing the grand jury’s investigation and was sentenced to 110 months’ imprisonment;
- Llesenia Woodard, 46, Hagerstown, Maryland, pled guilty to providing false testimony to the grand jury investigating the murders and is awaiting sentencing
- Kevin Coles, Kevin Coles, age 36, of New York, NY and Hagerstown, Maryland, was found guilty in April of multiple crimes, including murder for hire, robbery, and drug trafficking, and is awaiting sentencing;
- Yolanda Diaz, 31, Hagerstown, Md, indicted on multiple counts of perjury and obstruction of justice based upon her testimony at the Coles trial. Her trial is currently scheduled for March 2023.
Joshua Davis, age 30, previously pled guilty to participating in the conspiracy to locate and kill an individual believed to be cooperating with federal authorities in the investigation of the triple murders. Davis was sentenced to serve 100 months’ imprisonment. Torey White’s trial is scheduled for May 2023.
The following federal, state and local law enforcement agencies participated in the investigation: Drug Enforcement Administration Harrisburg Resident Office; Pennsylvania State Police, Chambersburg; Pennsylvania State Police, Troop H; Franklin County Drug Task Force; Franklin County Adult Probation; Pennsylvania State Probation and Parole; Hagerstown Police Department, Criminal Investigation Division; Drug Enforcement Administration, Hagerstown Resident Office; Washington County Narcotics Task Force; Drug Enforcement Administration, Baltimore District Office, Strike Force Group 1; Maryland State Police Homicide Unit; Baltimore Police Department Narcotics, Fugitive And Homicide Units; Baltimore County Police Department Narcotics and Gang Unit; Federal Bureau of Investigation Evidence Management Unit, Quantico, VA; US Marshal’s Service Harrisburg, PA and Phoenix, AZ; Franklin County District Attorney’s Office; United States Attorney’s Office, District Of Maryland; and the Washington County State’s Attorney’s Office.
Judy Fernandez, Manager of Analytic Services at LexisNexis Special Services, Inc., (LNSSI) provided expert assistance to investigators and the prosecutors in the areas of analysis, support, and the rendering of her expert opinion.
Assistant United States Attorney William A. Behe, Organized Crime Drug Enforcement Task Force, and Senior Litigation Counsel Michael Consiglio are 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.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This prosecution is also part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF) identified as “Retribution for Welsh Run”. OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
All persons charged are presumed to be innocent unless and until found guilty in court.
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Man sentenced to two years in prison for assault of a federal officer and destruction of government propertyRead the Press Release
ATLANTA – Richard Tyler Hunsinger has been sentenced for his role in an attack on the Atlanta Field Office of Immigration and Customs Enforcement, involving improvised explosive devices, during a protest in the summer of 2020.
“The U.S. Attorney’s Office will always defend citizens’ rights to peacefully protest,” said U.S. Attorney Ryan K. Buchanan. “But destruction of government property and throwing Molotov cocktails in buildings is unacceptable. Rather than catalyzing constructive dialogue, such dangerous actions foment violence, tear at the fabric of our community, and endanger lives. Prosecution and prison are the end result of engaging in this unlawful conduct.”
“The increase in assaults on federal law enforcement officers—and law enforcement in general and their property—is troubling and will not be tolerated,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Hopefully this sentencing sends the message that the FBI will continue to work with our partners to hold violent protesters accountable for their actions that damage our communities.”
“Stopping violent criminals, like Hunsinger, who target law enforcement officers is one of the most important things we can do to protect our communities,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “We are thankful for the hard work done in this case and hope that this sentence serves as a warning to anyone else thinking of committing such heinous acts.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: On July 23, 2020, Richard Tyler Hunsinger promoted a protest entitled, “Rally Against Fascism.” The event was to occur at the Department of Homeland Security Immigration and Customs Enforcement’s Field Office located in Atlanta, Georgia (the “DHS Building”).
On July 25, 2020, at approximately 11:30 P.M., a crowd of protesters gathered at the DHS building. Hunsinger and others, wearing dark clothing, gloves, and face coverings, breached the fences of the building and began vandalizing the structure. Hunsinger smashed at least four windows of the front entry of the DHS building using a hammer. He later lit and threw a Molotov Cocktail into the facility. At the same time, other individuals used rocks, cinder blocks, fireworks, and other materials to cause extensive damage to the building.
Law enforcement later recovered a broken bottle used to make a Molotov Cocktail which contained Hunsinger’s DNA on it, and an additional Molotov Cocktail and a modified firework covered in nails from inside the facility. Damage to the building and clean-up costs totaled more than $78,000.00.
Richard Tyler Hunsinger, 29, of Fairfax, Virginia, who was a resident of Atlanta, Georgia at the time of the offense, was sentenced to two years, eight months in prison to be followed by three years of supervised release, including eight months of home confinement. Hunsinger will also be required to pay restitution in an amount to be determined by the Court at a later date. Hunsinger was convicted on October 25, 2022, after he pleaded guilty to the offenses of assault on a federal officer in violation of Title 18, United States Code, Sections 111(a)(1) and (b), and destruction of government property in violation of Title 18, United States Code, Section 1361.
This case was investigated by the Federal Bureau of Investigation in conjunction with the Homeland Security Investigations (HSI) and the Federal Protective Service.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Man in Possession of Child Sexual Abuse Material Is Sentenced to 20 Years in PrisonRead the Press Release
CHARLOTTE, N.C. – Cody Allen Wright, 24, of Mooresville, N.C. was sentenced today to 240 months in prison for possession of child sexual abuse material that involved a prepubescent minor, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Wright was ordered to serve a lifetime under court supervision and to register as a sex offender after he is released from prison.
Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Robert Schurmeier, Director of the North Carolina State Bureau of Investigation (SBI), and Sheriff Darren Campbell of the Iredell County Sheriff’s Office join U.S. Attorney King in making today’s announcement.
According to filed court documents and today’s court hearing, between December 2019 and June 2020, Wright knowingly possessed and accessed images and videos that contained child sexual abuse material (CSAM). Court records show that the Iredell County Sheriff’s Office began an investigation after receiving multiple cybertips that an individual later identified as Wright was using a Dropbox account to upload and store CSAM. Over the course of the investigation, law enforcement conducted a search warrant at Wright’s residence from which they seized two cellular phones, a laptop and other electronic devices. A forensic analysis of the devices revealed that Wright possessed more than 1,500 files that contained images and videos of children, some younger than12, being sexually abused.
In addition to locating child sexual abuse material, law enforcement also determined that Wright was using messaging apps like Kik and Discord to chat about and trade CSAM with other individuals. In one instance, Wright engaged in a chat during which he advised another app user on how to access CSAM on the dark web.
On September 26, 2022, Wright pleaded guilty to possession of child pornography that involved a prepubescent minor who had not yet attained 12 years of age.
At today’s court hearing, U.S. District Judge Kenneth D. Bell ordered Wright to serve the maximum statutory sentence for the offense, after the Court found that the defendant had sexually abused a minor. According to court records, while the federal investigation was ongoing, Wright was arrested by local law enforcement and was convicted in state court of engaging in sexual contact with a minor he met online. As a result of the state conviction, Wright was sentenced to 155 months in prison. Judge Bell ordered 150 months of Wright’s federal prison term to be served consecutive to the state sentence.
In making today’s announcement, U.S. Attorney King commended the FBI, the SBI, and the Iredell County Sheriff’s Office for their investigation of the case and thanked the Iredell County District Attorney’s Office for their invaluable assistance.
Assistant United States Attorneys Daniel Cervantes and 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 the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Louisville Man Sentenced to 24 Years in Federal Prison for Producing and Distributing Child PornographyRead the Press Release
Louisville, KY – A Louisville man was sentenced yesterday to 24 years in prison followed by a lifetime term of supervised release for producing and distributing child pornography and for transferring obscene material to a minor. There is no parole in the federal system.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office, and Chief Jacquelyn Gwinn-Villaroel of the Louisville Metro Police Department made the announcement.
According to court documents, Patrick Appleton, 25, used a social media application to communicate with a 15-year-old girl for the purposes of engaging in sexual contact. Appleton recorded those sexual acts, and distributed those videos, as well as other videos of obscene material, including bestiality, to the girl.
In addition to the 24-year prison sentence, Appleton was ordered to pay restitution to the victim in the amount of $3,000.
“I appreciate the exceptional work of the FBI, LMPD, and AUSA McKiness,” stated U.S. Attorney Bennett. “Protecting the children of the Western District from predators like the defendant is a top priority of this office. We remain vigilant and will continue to investigate and aggressively prosecute those who seek to sexually exploit our children.”
“Predators, like Appleton, are appalling and have no place in civilized society,” said FBI Louisville Special Agent in Charge Cohen. “Appleton’s sentence highlights the egregious nature of his conduct and serves as an example that the FBI and our law enforcement partners are committed to protecting our most innocent and helpless victims.”
The case was investigated by the Federal Bureau of Investigation and the Louisville Metro Police Department.
Assistant U.S. Attorney A. Spencer McKiness prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
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Lincoln Woman Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Steven Russell announced that Trisha A. Havel, 40, of Lincoln, Nebraska, was sentenced today to two years and three months, (27 months), for possession with intent to distribute 50 grams or more of methamphetamine mixture by Senior United States District Judge John M. Gerrard. Following her release from prison, Havel will serve three years on supervised release. There is no parole in the federal system.
On March 30, 2021, a search warrant was executed at Havel’s Lincoln residence. Officers found six baggies of methamphetamine for a total of approximately 56 grams (approximately two ounces). Havel admitted she sold methamphetamine to help a small group of friends and support her own addiction. She said she got the six baggies of methamphetamine from one of her sources the day prior to the search.
This case was investigated by the Lincoln Police Department and the Lincoln/Lancaster County Narcotics Task Force.
Lincoln Man Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Steven Russell announced that Robert James Kotschwar, 33, of Lincoln, Nebraska, was sentenced today to six years for possession with intent to distribute five grams or more of actual (pure) methamphetamine by Senior United States District Judge John M. Gerrard. Following his release from prison, Kotschwar will serve four years on supervised release. There is no parole in the federal system.
On April 6, 2021, Kotschwar was contacted in a Walmart parking lot after he committed traffic violations. He immediately told officers he had drugs in his car and a set of brass knuckles on his person. During a search of his car, investigators found four baggies containing a total of 22 grams of actual (pure) methamphetamine as well as numerous self-seal baggies and a digital scale. They also found $64 cash on the floor in front of the driver’s seat. Kotschwar’s passenger was found in possession of a baggie containing approximately two grams of methamphetamine which the passenger said he had just purchased from Kotschwar. Kotschwar admitted he had methamphetamine in his possession and said he had just sold methamphetamine to his passenger. Kotschwar said the cash found on the floorboard came from that transaction and he intended to sell more methamphetamine that day.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force.
Lincoln Man Convicted of Possession of Child Pornography Following a Jury TrialRead the Press Release
United States Attorney Steven Russell announced that John Wade Burton, 66, of Lincoln, Nebraska, was convicted on February 15, 2023, following a jury trial of possession of child pornography. Because of a prior conviction, Burton faces a potential statutory imprisonment range of between 10 and 20 years. There is no parole in the federal system. Burton’s sentencing hearing will take place on May 15, 2023.
The Federal Bureau of Investigation received a tip from a foreign law enforcement agency that a computer with an IP address from Lincoln, Nebraska, had twice accessed a child pornography website. Further investigation revealed that the IP address was assigned to Burton’s residence. A search warrant for Burton’s residence was obtained and executed on November 17, 2020. Agents seized a number of computers, hard drives, and thumb drives found throughout the home. Later analysis of those devices showed several contained images and videos depicting child pornography. In total, well over 1,000 such images and videos were located.
The defendant had a prior conviction in Missouri for having sexually assaulted a child who was less than 14 years old. He was sentenced to prison for that offense and was in custody from February 15, 2007, to February 14, 2018. A computer forensic expert retained by the defense testified that the metadata on two of the devices showed someone was viewing some of the child pornography files during times when John Burton was in custody. The defense also offered testimony from a few victims that another person, who according to the defense had access to the devices, had sexually assaulted children in the past. However, the metadata on most of the devices showed that the child pornography files were created or modified at times either before Burton went into custody in Missouri, or after his release.
The investigation was conducted by the Federal Bureau of Investigation, with assistance from the Nebraska State Patrol and the Sarpy County Sheriff’s Department. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Las Vegas Man Sentenced to over 10 Years in Prison for Drug and Firearm CrimesRead the Press Release
LAS VEGAS – A Las Vegas resident was sentenced to 121 months in prison for selling methamphetamine, cocaine, and multiple firearms – including three machineguns.
Francis Araujo (33) pleaded guilty in September 2022 to conspiracy to distribute a controlled substance and illegal possession of machineguns. In addition to the prison term, U.S. District Judge Gloria M. Navarro sentenced Araujo on Tuesday to five years of supervised release.
According to court documents, between August 1, 2021 and February 24, 2022, Araujo conspired with others to distribute cocaine and at least 500 grams of methamphetamine. On December 9, 2021, Araujo sold three privately made AR-15 style firearms.
United States Attorney Jason M. Frierson for the District of Nevada; Acting Special Agent in Charge Christopher M. Miller for HSI Las Vegas; and Acting Special Agent in Charge Joshua Jackson for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) made the announcement.
HSI, ATF, and the Las Vegas Metropolitan Police Department investigated the case. Assistant U.S. Attorney Kimberly Sokolich prosecuted the case.
If you have information about potential criminal activity, call HSI at 1-866-DHS-2-ICE or submit a tip online at: https://www.ice.gov/webform/ice-tip-form.
If you have information about illegal firearms activity, submit a tip to ATF by calling the hotline at 1-800-ATF-GUNS (1-800-283-4867) or through the ReportIt mobile app.
This case was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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Kentucky Man Pleads Guilty to Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – WALTER ALVAREZ TIRADO, age 33, a resident of Madisonville, Kentucky, pled guilty on February 16, 2023 before U.S. District Judge Susie Morgan to possession with intent to distribute 500 grams or more of methamphetamine in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), announced U.S. Attorney Duane A. Evans.
According to court documents, on October 6, 2021, TIRADO traveled from Kentucky in the direction of New Orleans, Louisiana in order to deliver fifty pounds of methamphetamine. Law enforcement conducted a traffic stop of TIRADO’s vehicle in Pearl River, Louisiana. Upon being stopped, TIRADO’s luggage was searched where officers discovered fifty pounds of methamphetamine.
TIRADO faces a statutory mandatory minimum sentence of ten years, up to life imprisonment, a fine of up to $10,000,000, at least five years of supervised release following any term of imprisonment, and a mandatory $100 special assessment fee.
This case was investigated by the Drug Enforcement Administration and the Louisiana State Police. The prosecution is being handled by Assistant United States Attorney J. Benjamin Myers of the Narcotics Unit
Jury Convicts KC Man of Meth TraffickingRead the Press Release
KANSAS CITY, Mo. – A Braymer, Mo., man has been convicted by a federal trial jury of his role in a conspiracy to distribute methamphetamine.
Jason M. Potter, 40, was found guilty on Thursday, Feb. 16, of one count of conspiracy to distribute methamphetamine and one count of possessing methamphetamine with the intent to distribute.
Evidence presented during the trial indicated that Potter and co-defendant Daniel Dryden, 51, of Clinton, Mo., participated in a conspiracy to distribute methamphetamine from May 11 to July 15, 2020. Dryden pleaded guilty to the same charges on Jan. 13, 2023.
Lee’s Summit, Mo., police officers saw Potter’s black 2009 Nissan Maxima parked in a motel parking lot on July 15, 2020. When Potter and Dryden came out of the hotel, Potter placed a black computer case and a blue cloth shopping bag in the rear passenger seat of the Maxima. Potter went back into the hotel while Dryden drove the Maxima to the front of the business, near the lobby doors. Potter came out of the hotel and got into the front passenger seat of the Maxima. Dryden drove out of the parking lot onto Blue Parkway.
Officers stopped the Maxima and arrested Potter, who had an outstanding parole warrant. Potter was in possession of 4.8 grams of methamphetamine and $3,610 in cash at the time of his arrest.
Officers searched the Maxima and found the computer bag, which contained several baggies with a total of 648.6 grams of methamphetamine, drug paraphernalia, and a money bag with more than $3,000 in cash.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about 40 minutes before returning guilty verdicts to U.S. District Judge Roseann Ketchmark, ending a trial that began Monday, Feb. 13.
Under federal statutes, Potter and Dryden each are subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Maureen A. Brackett and Special Assistant U.S. Attorney Stephanie C. Bradshaw. It was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lee’s Summit, Mo., Police Department, and the Springfield, Mo., Police Department.
Jonesville Man Extradited from the Philippines After Being Indicted for Sexual Exploitation of Children and Possession of Child PornographyRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Mark Totten announced that Tye Braxton Stiger, age 35, of Jonesville, made his initial appearance in the Western District of Michigan on February 14, 2023. A federal grand jury previously returned an indictment charging him with two counts of sexual exploitation and attempted sexual exploitation of a child, in violation of 18 U.S.C. § 2251(a) and (e); and one count of possession of child pornography, in violation of 18 U.S.C. §§ 2252A(a)(5)(B), (b)(2) and 2256(8)(A). After indictment, law enforcement found and arrested Stiger in the Philippines, then extradited him to the United States for federal prosecution.
“These sexual exploitation and child pornography allegations are extremely disturbing and serious,” said U.S. Attorney Mark Totten. “My office is committed to protecting our youngest and most vulnerable citizens – our children.”
This matter was referred to the U.S. Attorney’s Office by the Hillsdale County Prosecutor. There is also a related, outstanding 34-count warrant out of Hillsdale County against Stiger charging second degree criminal sexual conduct, aggravated sexually abusive activity, aggravated possession of sexually abusive material, using a computer to commit a crime, and installing/using an eavesdropping device.
Jamie Wisniewski, a Hillsdale County Assistant Prosecuting Attorney, advised, “Given the nature and severity of the offenses Mr. Stiger is accused of, we believe it would be in the best interests of the community and the best use of our resources for the child sexually abusive material charges to be handled by the United States Attorney’s Office at this time.”
The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
A copy of the indictment is attached.The investigation and prosecution were made possible through Project Safe Childhood (PSC), a multi-agency, nationwide effort begun by the Department of Justice in 2006. The project facilitates information sharing and joint-agency investigations among local, state, and federal authorities in order to combat the sexual exploitation of children. This matter was investigated by the Michigan State Police, Homeland Security Investigations, and the United States Marshals Service.
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Jefferson Man Sentenced to 2 ½ Years for Illegally Possessing a FirearmRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Brian Battle, 45, Jefferson, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 2 ½ years in prison for possessing a firearm as a felon. Battle pleaded guilty to this charge on October 24, 2022.
On April 5, 2021, law enforcement agents searched Battle’s residence in Jefferson, Wisconsin and found approximately 50 grams of cocaine, sandwich bags, a scale, and a drug ledger with handwritten notes containing names and money totals. In addition, agents found a Ruger firearm and over $12,000 in cash.
At the sentencing hearing, Judge Peterson noted that Battle had an “aggravated criminal history” including three prior felony drug offenses and two prior felony convictions for felon in possession of a firearm. Judge Peterson also noted that the crime was particularly serious because evidence from the search warrant showed that Battle was actively engaged in dealing cocaine.
The charge against Battle is the result of a joint investigation by the Drug Enforcement Administration, Federal Bureau of Investigation, Wisconsin Department of Justice Division of Criminal Investigation, Jefferson County Narcotics Task Force, and the Dane County Narcotics Task Force. The investigation was conducted and funded by the Organized Crime Drug Enforcement Task Force (OCDETF), a multi-agency task force that coordinates long-term narcotics trafficking investigations. The prosecution of the case is being handled by Assistant U.S. Attorney Aaron Wegner.
Jackson Man Pleads Guilty to Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – A Jackson man pled guilty to possession of a firearm by a convicted felon, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
Tremaine Gill, 40, pled guilty in U.S. District Court in Jackson.
According to court records, on July 18, 2020, Gill was found with three firearms in his possession by the Jackson Police Department during the execution of a search warrant. Gill has multiple previous felony convictions, and it is a violation of federal law for a convicted felon to possess any firearm.
Gill is scheduled to be sentenced on May 23, 2023. He faces a maximum penalty of 10 years in prison and a $250,000 fine. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Jackson Police Department and the FBI investigated the case.
Assistant U.S. Attorney Matt Allen 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.