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Wednesday 15 February 2023
Former Digital Interactive Whiteboards Salesman Pleads Guilty to Rigging Bids to the Largest Public-School System in the United StatesRead the Press Release
A former salesman pleaded guilty today for his leading role in a bid rigging scheme involving the sales of certain brands of digital interactive whiteboards to the New York City Department of Education Public Schools (NYCDOE).
According to court documents filed in the U.S. District Court for the Southern District of New York, Dwayne Johnson, of Islandia, New York, engaged in a conspiracy from late 2018 through at least October 2020, to subvert the NYCDOE’s competitive bidding process and ensure that companies controlled by his co-conspirators submitted winning bids for the sale of digital interactive white boards to the NYCDOE. Johnson’s scheme ensured that all members of the conspiracy profited at the NYCDOE’s expense: Johnson sold boards to his co-conspirator that won the bid, the winning co-conspirator made the sale to the NYCDOE, and the losing co-conspirator was paid to install the boards in the classrooms. Johnson also created and submitted sham bids in order to ensure his co-conspirator won the bid.
“This crime targeted the country’s largest public school system, which serves more than a million school children every day,” said Acting Director of Criminal Enforcement Emma Burnham of the Justice Department’s Antitrust Division. “We will work tirelessly to prevent and punish any bid-rigging schemes that victimize our local governments and our schools. The division and our partners remain committed to protecting the government procurement process at all levels of government.”
“As he admitted today, Johnson deliberately conspired to manipulate a competitive bidding process for his own benefit,” said Assistant Director-in-Charge Michael J. Driscoll for the FBI New York Field Office. “The NYCDOE and ultimately the children of our city were victimized by this illicit scheme. The FBI will continue to investigate and hold accountable anyone willing to engage in anti-competitive corruption.”
“As charged, the defendant interfered with a fair and competitive process; actions that undermine the public trust," said Special Commissioner Anastasia Coleman of the Office of the Special Commissioner of Investigation (SCI) for the New York City School District. “This investigation demonstrates the commitment of SCI and its partners to protecting New York City public schools from schemes that undermine competition among vendors, and which ultimately affect the learning environment of all New York City students.”
Johnson pleaded guilty to a violation of Section 1 of the Sherman Act. For individuals, the maximum penalty is 10 years in prison and a $1 million criminal fine. The fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Antitrust Division’s New York Office is prosecuting the case, which was investigated with the assistance of the FBI New York Field Office and the SCI for the New York City School District.
Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.
Former Bond Trader and Hedge Fund Founder Jeffrey Soberman Parket Pleads Guilty to $65 Million Ponzi Lending SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Daniel B. Brubaker, Inspector in Charge of the New York Division of the U.S. Postal Inspection Service (“USPIS”), announced that JEFFREY SOBERMAN PARKET, a former bond trader and the former principal of several hedge funds, pled guilty today in Manhattan federal court to wire fraud and bank fraud. PARKET obtained over $65 million in loans from individual and institutional lenders by fabricating assets, doctoring bank and brokerage statements, and forging business correspondence and signatures, resulting in over $37 million in victim losses. PARKET pled guilty before United States District Judge Mary Kay Vyskocil.
U.S. Attorney Damian Williams said: “Parket traded on his reputation as a respected financier and fabricated paper assets to defraud lenders of millions of dollars in loans that they never would have made if not for his lies and the sophisticated ruses he used to support those lies. His scheme cost some of his victims everything they had. He will now be held accountable for his deceit.”
USPIS Inspector in Charge Daniel B. Brubaker said: “Parket took advantage of his investors’ trust, among them his friends and family members, and perpetrated an intricate scheme involving fraudulent documents and identity theft to hide his fraud from them. However, Postal Inspectors and our law enforcement partners unraveled Parket’s web of deceit and exposed all his crimes. Parket’s conviction today vindicates the investors he defrauded of almost $40 million. His conviction should also serve as a warning to would-be fraudsters: Postal Inspectors will dedicate every resource in our arsenal to protect the integrity of the mail and pursue anyone who betrays the public trust and preys on innocent investors.”
As alleged in the Complaint and Information and based on other filings and statements made in court:
From at least 2016 through December 2021, PARKET fraudulently obtained over $65 million in short-term loans from individuals and financial institutions by materially misrepresenting his financial condition and pledging fake collateral. Claiming that he needed short-term liquidity for investment opportunities or real estate purchases, PARKET constructed elaborate stories and submitted hundreds of pages of supporting documents to obtain loans he had no intention of repaying. Among other things, he falsified bank and brokerage statements and contracts allegedly reflecting his significant assets and ownership interests in valuable investment accounts. To furnish proof of some of these ownership interests, PARKET also used the names, titles, and forged signatures of actual company executives he falsely claimed were his business associates. He created fake email addresses for them and forged lengthy email correspondence regarding measures supposedly taken by PARKET and his purported business associates to secure the loans.
To perpetuate the scheme, PARKET used loans from new lenders to pay back earlier lenders. He also made fraudulent representations about delayed acquisitions and temporary liquidity issues to induce his existing lenders to extend the maturity date of his loans or to provide him millions of dollars in additional loans.
PARKET’s individual victims included friends and professional acquaintances, some of whom he persuaded to provide him numerous loans. His institutional victims included short-term bridge lenders, a real estate services company, a bank insured by the Federal Deposit Insurance Corporation, and an insurance company focused on helping clients save for retirement.
Throughout the offense period, PARKET also persuaded family members to transfer funds to his personal accounts by falsely promising to safely invest their life savings on their behalf. He then used the funds to pay down fraudulently obtained loans.
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PARKET, 59, of Great Neck, New York, pled guilty to one count of wire fraud affecting a financial institution and one count of bank fraud, each of which carries a maximum potential sentence of 30 years in prison.
The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. Sentencing has been scheduled for June 28, 2023.
Mr. Williams praised the outstanding investigative work of USPIS.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Jane Y. Chong is in charge of the prosecution.
Foreign woman gets substantial sentence for importing methRead the Press Release
McALLEN, Texas - A 36-year-old Mexican national has been ordered to federal prison for attempting to enter the United States with more than 50 kilograms of meth concealed within her vehicle, announced U.S. Attorney Alamdar S. Hamdani.
Miriam Nayely Lopez-Hernandez pleaded guilty to importation of a controlled substance July 28, 2021.
Today, District Judge Micaela Alvarez sentenced her to 135 months in federal prison. Not a U.S. citizen, Lopez-Hernandez is expected to face removal proceedings following her imprisonment. In handing down the sentence, the court noted her role in the offense was not a minimal nor minor one and emphasized the dangerousness perpetuated by drug trafficking in both the United States and in Mexico.
On March 24, 2022, Lopez-Hernandez attempted to enter the United States from Mexico via the Hidalgo Port of Entry in a motor vehicle, at which time a K-9 alerted to the vehicle. An x-ray examination ultimately resulted in the discovery of 24 packages containing 51.78 kilograms of meth concealed within the tires of the vehicle.
Further investigation revealed Lopez-Hernandez’s vehicle had crossed into the United States seven days prior. Authorities had discovered no abnormalities. Messages on her phone indicated she had delivered the vehicle to others the night before her attempted arrival.
She has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with assistance from Customs and Border Protection. Assistant U.S. Attorney Lee Fry prosecuted the case.
Five-Time Convicted Felon Found Guilty of Drug Trafficking and Firearm OffensesRead the Press Release
COLUMBUS, Ga. – A Columbus resident with a violent criminal history was convicted by a federal jury on charges related to armed methamphetamine trafficking.
Karzarta Piett, 41, was convicted on Feb. 14 of possession of more than five grams of methamphetamine with intent to distribute and illegal possession of a firearm by a convicted felon following a two-day trial that began on Feb. 13 before U.S. District Judge Clay Land. Piett faces a maximum of 40 years in prison to be followed by at least four years of supervised release and a maximum fine of $5,000,000 for distribution of methamphetamine and a maximum of ten years in prison to be followed by at least three years of supervised release and a $250,000 fine for illegally possessing a firearm.
“Violent re-offenders engaged in armed drug trafficking will face federal prosecution,” said U.S. Attorney Peter D. Leary. “Local, state and federal law enforcement agencies are committed to stopping violent, repeat offenders in our district and holding them accountable for their crimes.”
“This meth dealer brazenly continued his drug trafficking activities despite being a five-time convicted felon,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “His conviction removes yet another dangerous criminal from our streets and sends a clear message to others who may choose to follow the same perilous path. DEA and its law enforcement partners will relentlessly pursue criminals like Mr. Piett.”
“This case exemplifies our commitment to prevent drugs and criminal activity from poisoning our communities,” stated ATF Special Agent in Charge Beau Kolodka. “It also sends a clear message that we will relentlessly pursue and prosecute members of these drug enterprises.”
“One of our main goals is to protect our community from violent offenders like Karzarta Piett, who was engaged in reckless and destructive offenses. Piett will face the consequences of his actions because of the hard work of our Columbus Police Department Investigators and the U.S. Attorney’s Office. We are grateful for the critical support of our law enforcement partners, without whom this conviction would not have been possible. This investigation demonstrates our continued commitment to removing violent criminals and drug traffickers from our streets,” said Columbus Police Department Chief Freddie D. Blackmon, Columbus Police Department
According to court documents and evidence presented at trial, Piett was pulled over by Columbus Police Department (CPD) officers for multiple traffic violations on Jan. 7, 2021, after he was observed leaving a bar known for its drug trafficking activity. Piett was driving with a suspended license. Officers observed drug residue in the car; a K-9 unit was requested and a drug detection canine alerted to the presence of narcotics. A search of the defendant’s vehicle based on probable cause recovered two ounces of methamphetamine, a loaded pistol, a digital scale, plastic bags and approximately $1500 cash in the center console, plus more than $2,000 cash in Piett’s pocket. A check of the defendant’s criminal background revealed a lengthy criminal history spanning 20 years, with five prior felony convictions including two separate convictions for aggravated assault and convictions for kidnapping, false imprisonment, robbery, terroristic threats and multiple drug distribution charges.
Following Piett’s June sentencing in the Middle District of Georgia, he will be transferred to the Middle District of Alabama where he is currently under indictment for conspiracy to distribute more than 50 grams of methamphetamine. An indictment is merely an allegation of criminal conduct and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by DEA, ATF and the Columbus Police Department.
The case is being prosecuted by Assistant U.S. Attorney Crawford Seals.
Federal Inmate Sentenced to More Than Seven Years in Prison for Assaulting Federal Correctional OfficerRead the Press Release
ROCKFORD — A former inmate of the United States Penitentiary in Thomson, Ill. was sentenced today to more than seven years in federal prison for assaulting a federal correctional officer.
JOSEPH VAN SACH, 50, was found guilty of the offense on March 15, 2022, following a seven-day jury trial in federal court in Rockford.
According to evidence at trial, on April 2, 2019, while in custody at USP Thomson, Van Sach forcibly assaulted a correctional officer who was engaged in the performance of his official duties. Van Sach made physical contact and inflicted bodily injury to the officer.
U.S. District Judge John Robert Blakey imposed the sentence after a hearing in federal court in Rockford.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government was represented by Assistant U.S. Attorneys Jessica Maveus and Vincenza L. Tomlinson.
East Lansing Man Indicted for Kidnapping and Raping Italian Teen, Attempting to Rape Another Teen, and Sexually Exploiting Two MinorsRead the Press Release
GRAND RAPIDS, MICHIGAN —U.S. Attorney for the Western District of Michigan Mark Totten announced that yesterday a federal grand jury returned an indictment containing five charges against Arisknight Arkin-Everett Winfree of East Lansing, Michigan. The charges include kidnapping, coercing and enticing someone to travel for the purposes of illegal sexual activity, attempted coercion and enticement, and two counts of sexual exploitation of a minor. If convicted, Winfree faces a maximum of life in prison.
“These alleged crimes, and the facts behind them, portray an online predator who methodically planned and executed his criminal scheme,” said U.S. Attorney Mark Totten. “We are handling this case with the utmost seriousness and will continue to work every day to protect the public – and especially our young people – from those online who would do them harm.”
The Indictment alleges Winfree posted a false advertisement for an au pair, arranged for a teenager to travel from Italy to East Lansing to work for him, and then kidnapped and raped her. In luring the Italian teen to West Michigan, Winfree told her his fictional family loved nature and the outdoors, and that she was going to have so much fun:
Once she arrived, Winfree demanded the Italian teen clean his house before handcuffing her, placing a ball gag in her mouth, and raping her. Winfree used his false au pair advertisement to lure another teenager to travel to his house, this one from Kansas. When her family realized the situation was not safe, they contacted the police, who then responded and removed her from Winfree’s house.
Winfree is also charged with sexual exploitation of two minor girls for producing child pornography of them. The defendant recorded himself having sexual intercourse with one of the girls, and he convinced the other to send him pornographic videos through the smartphone application SnapChat. In speaking with a friend, Winfree stated he wanted to use one of the girls to recruit more high school girls for him to sexually exploit:
The United States filed a criminal complaint against Winfree on January 23, 2023, he was arrested the next day, and a magistrate judge ordered him detained pending grand jury review.
“While the harm Mr. Winfree is alleged to have inflicted on these victims cannot be undone, the charges announced are a first step towards getting justice for the brave young women who came forward to tell their stories,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “More young women would have undoubtedly been victimized but for the hard work of the FBI and the East Lansing Police Department. We remain committed to working with our partners to pursue those who seek to harm members of our community.”
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney’s Office for the Western District of Michigan; county prosecutor’s offices; HSI; Michigan State Police’s Internet Crimes Against Children task force; the West Michigan Based Child Exploitation Task Force (WEBCHEX); and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. Anyone with information or concerns about possible child exploitation should contact local law enforcement. For more information about Project Safe Childhood in West Michigan, including resources for children and parents, please visit: https://www.justice.gov/usao-wdmi/project-safe-childhood
The FBI and East Lansing Police Department are investigating this case, and Assistant U.S. Attorney Davin Reust is handling the prosecution of Winfree.
The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
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Duluth Nail Salon Proprietors Charged with Tax Fraud ConspiracyRead the Press Release
MINNEAPOLIS – A Duluth couple has been charged with conspiracy and tax fraud after failing to pay taxes on their nail salon business income, announced U.S. Attorney Andrew M. Luger.
According to court documents, An Ngoc “Ritchie” Nguyen, 44, was the operator and sole proprietor of Q Nails salon located in Duluth. Tram Anh “Ann” Nguyen, 41, was the operator and sole proprietor of Crystal Nails salon located in Superior, Wisconsin. From at least 2016 through at least October 2020, the defendants unlawfully conspired with each other and others to defraud the Internal Revenue Service by reporting on their individual income tax returns only the credit card sales, or including a false, nominal amount of cash sales, from their Q Nails and Crystal Nails salons. The defendants also falsely claimed to reside at two different addresses and agreed to divide their three children—with whom they jointly resided—as dependents in order to fraudulently claim head of household status on both of their individual income tax returns.
Ritchie Nguyen is charged with one count of conspiracy to defraud the United States and four counts of making and subscribing a false tax return. Ann Nguyen is charged with one count of conspiracy to defraud the United States and three counts of making and subscribing a false tax return. The defendants are scheduled to make their initial appearances in U.S. District Court on March 7, 2023, before Magistrate Judge Leo I. Brisbois in Duluth.
This case is the result of an investigation conducted by IRS – Criminal Investigations.
Assistant U.S. Attorney Kimberly A. Svendsen is prosecuting the case.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Doctor Admits Health Care Fraud ConspiracyRead the Press Release
CAMDEN, N.J. – A doctor who owns a medical clinic in Newark today admitted defrauding New Jersey state and local health benefits programs and other insurers by submitting fraudulent claims for medically unnecessary prescriptions, Attorney for the United States Vikas Khanna announced.
Saurabh Patel, 51, of Woodbridge, New Jersey, pleaded guilty by videoconference before U.S. District Judge Robert B. Kugler to a superseding information charging him with one count of conspiring to commit health care fraud. Saurabh Patel was previously charged by indictment with conspiring in the health care fraud scheme with a family member, Kaival Patel, 52, of West New York, New Jersey. Kaival Patel was also charged with conspiracy to commit money laundering, substantive counts of money laundering, and making false statements to federal agents. The charges against Kaival Patel are merely accusations, and he is presumed innocent unless and until proven guilty. He is scheduled to proceed to trial later this year.
According to court documents and statements made in Court:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
Patel is a medical doctor who owns and operates a clinic in Newark. Despite having no background in pharmaceuticals or medicine, Kaival Patel and his wife created and operated a company called ABC Healthy Living LLC (ABC) to market medical products and services, including compound prescription medications. A pharmaceutical sales representative, Paul Camarda, also created a company and worked with Kaival Patel to promote compound medications. Camarda pleaded guilty before Judge Kugler in Camden federal court on July 6, 2021, to health care conspiracy and conspiring to commit money laundering and obstruct justice. He awaits sentencing.
The conspirators learned that certain state and local government employees had insurance that would reimburse up to thousands of dollars for a one-month supply of certain compound medications. Kaival Patel and Camarda approached Saurabh Patel and convinced him to authorize prescriptions for the compound medications for which they received commissions, regardless of whether or not those prescriptions were medically necessary. The conspirators steered individuals who were paid to receive the compound medications to Saurabh Patel’s medical practice for the purpose of receiving his authorization on the fraudulent prescriptions. This enabled Saurabh Patel to receive insurance payments for those patient visits and procedures. In addition to the people steered to Saurabh Patel’s medical practice as part of the scheme, Kaival Patel also instructed Saurabh Patel on which insurance companies covered the compound medications and requested that he prescribe those medications to existing patients of his practice with those insurance plans in order to further benefit Kaival Patel and his wife.
Saurabh Patel faces a maximum penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for June 27, 2023.
Attorney for the United States Khanna credited agents of the IRS Office of Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins in Newark; FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; and the U.S. Department of Labor Office of Inspector General, New York Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to today’s guilty plea.
The government is represented by Christina O. Hud, Senior Trial Counsel in the Health Care Fraud Unit; R. David Walk Jr., Chief of the Opioid Abuse Prevention and Enforcement Unit; and Assistant U.S. Attorney Daniel A. Friedman of the Criminal Division in Camden.
The charges and allegations against Kaival Patel are merely accusations, and he is presumed innocent unless and until proven guilty.
Defense counsel:
Mary E. Toscano Esq. and Joseph B. Shumofsky Esq., Newark
Dayton man sentenced to more than 20 years in prison for dealing fentanyl cocaine mixture that caused multiple fatal & nonfatal overdosesRead the Press Release
DAYTON, Ohio – A Dayton man was sentenced in U.S. District Court to 250 months in prison for distributing fentanyl and cocaine that resulted in overdoses in the late hours of New Year’s Eve and into the early hours of New Year’s Day 2019.
Kelsey V. Williams, Jr., 41, was indicted by a federal grand jury in the Southern District of Ohio in May 2021 and arrested in June 2021 in Minnesota. He pleaded guilty in federal court in Dayton in January 2022.
According to court documents, on New Year’s Eve 2018 and New Year’s Day 2019, the defendant distributed a fentanyl and cocaine mixture responsible for six total fatal and nonfatal overdoses. Of those six, four died from overdosing, and one was revived by Narcan following a vehicle crash that brought law enforcement and medics to his aid.
“Williams trafficked in drugs that directly resulted in overdoses,” said U.S. Attorney Kenneth L. Parker. “His crimes could not be more serious and have had a devastating impact on families in the Dayton area.”
Parker was joined by J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Dayton Police Chief Kamran Afzal in announcing the sentence imposed yesterday by Senior U.S. District Judge Walter H. Rice. Assistant United States Attorneys Amy M. Smith and Ryan A. Saunders are representing the United States in this case.
This case is being prosecuted as part of Operation S.O.S. In July 2018, the Department of Justice announced the launch of Operation Synthetic Opioid Surge (S.O.S), a program aimed at reducing the supply of synthetic opioids in 10 high impact areas and identifying wholesale distribution networks and international and domestic suppliers.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks.
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Convicted Felon Sentenced for Possessing AmmunitionRead the Press Release
BOSTON – A Cambridge man was sentenced today in federal court in Boston for illegally possessing ammunition as a previously convicted felon. Multiple guns, ammunition and cash were found in the rental vehicle that the defendant was the sole occupant of.
Kyle Evans, 36, was sentenced by U.S. District Court Judge Richard G. Stearns to 45 months in prison and three years of supervised release. In November 2022, Evans pleaded guilty to one count of being a felon in possession of ammunition.
In August 2020 Evans was pulled over in the City of Everett for failing to stop at a red light. When asked for his license and registration, Evans stated that he did not have a license. Upon confirming that Evans’ driver’s license was suspended and that the car was neither registered to nor leased by him, Evans was arrested. During a subsequent search of the vehicle, $2,344 in cash, a 9 mm loaded semi-automatic pistol, a .380 loaded semi-automatic pistol, a homemade loaded 9 mm semi-automatic pistol with no serial number and a Glock handgun carry case – with a serial number for a Glock that was reported stolen from California – containing a .22 caliber semi-automatic pistol with an obliterated serial number and a 9 mm caliber semi-automatic pistol, and other ammunition, were recovered. Four rounds of .22LR caliber ammunition was also found in Evans’ pants pocket.
Due to a prior conviction punishable by at least one year in prison – including armed robbery with a knife, resisting arrest, heroin possession, assault and battery on a police officer and intimidation – Evans is prohibited from possessing firearms and ammunition.
United States Attorney Rachael S. Rollins; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Everett Police Chief Steven A. Mazzie made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Rollins’ Major Crimes Unit prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
Colorado to Receive More Than 4.5 Million Dollars to Combat Gun ViolenceRead the Press Release
DENVER - The United States Attorney’s Office for the District of Colorado announces the Colorado Department of Public Safety will receive $4,564,438 awarded by the U.S. Department of Justice to fund efforts combatting gun violence.
The Justice Department announced 49 awards to states, territories, and the District of Columbia as part of the Byrne State Crisis Intervention Program. The total investment of more than $231 million will fund state crisis intervention court proceedings, including but not limited to, extreme risk protection order (ERPO) programs that work to keep guns out of the hands of those who pose a threat to themselves or others. This investment in community safety is authorized by the Bipartisan Safer Communities Act of 2022, historic legislation to address and reduce gun violence.
“The Justice Department is working relentlessly to protect communities from violent crime and the gun violence that often drives it, and the Byrne State Crisis Intervention Program is an important part of that effort,” said Attorney General Merrick B. Garland. “These awards will support the kinds of crisis intervention programs that we know save lives and help protect children, families, and communities across the country from senseless acts of gun violence.”
“The Department of Justice’s strategy to reduce violent crime and gun violence includes prioritizing support for successful, evidence-based programs,” said Deputy Attorney General Lisa O. Monaco. “The grants announced today invest in and highlight proven state and local violence prevention and intervention programs, that will make our communities safer.”
These awards, administered by the Department’s Office of Justice Programs’ Bureau of Justice Assistance (BJA), provide funding to states for the creation and implementation of extreme risk protection order programs, state crisis intervention court proceedings, and related gun violence reduction initiatives. Extreme risk protection order programs empower family members, health care providers, school officials and law enforcement officers to petition a court to temporarily prevent a person from accessing firearms if they are found to be a danger to themselves or others. Funds can also support interventions like drug, mental health and veterans’ treatment courts, gun violence recovery courts, behavior health deflection and outpatient treatment centers.
“Protecting communities from gun crime is an urgent public safety challenge and a critical part of the Justice Department’s work to ensure that everyone in this country can live free from the fear of violence,” said Associate Attorney General Vanita Gupta. “The resources we are announcing today will give communities the tools they need to prevent firearm violence and deliver support to those who are at risk of committing or being victimized by gun crime.”
The Bipartisan Safer Communities Act also seeks to ensure that extreme risk protection order laws and programs are implemented in accordance with the Constitution and provide for adequate due process protections. Projects funded under this program will need to demonstrate that they have taken measures to safeguard the constitutional rights of an individual subject to a crisis intervention program or ERPO initiative. The Justice Department has long supported state efforts to increase the use of ERPOs and in 2021 the Department released model legislation to help states create their own extreme risk protection order systems and provide for intervention before warning signs turn into tragedy.
"The fight against violent crime and gun violence is a priority for the U.S. Attorney’s Office. We recognize this effort requires an innovative approach, including effective enforcement, prosecution, prevention, and meaningful community engagement. We are confident this funding will help create safer communities, while promoting responsible gun ownership," said United States Attorney Cole Finegan.
“The Colorado Attorney General’s Office is committed to ensuring that our state red flag law saves as many lives as possible. These federal funds from the Byrne State Crisis Intervention Program will help us achieve that goal by improving our training for law enforcement and our outreach to the public,” said Colorado Attorney General Phil Weiser.
"We are excited to partner with the Justice Department to help protect communities across Colorado through this grant program by providing law enforcement and district attorney offices with the resources and tools they need to make an impact in reducing volent crime and gun violence," said Colorado Department of Public Safety Director Stan Hilkey.
Signed into law by President Biden in June 2022, the Bipartisan Safer Communities Act is the most significant piece of federal gun safety legislation in almost three decades and comes as a response to recent mass shootings and to the far more common, but no less tragic, incidents of community gun violence. Including the Byrne State Crisis Intervention Program, the law allocates a total of $1.4 billion to OJP over five years to develop, implement, and sustain meaningful investments in safer communities.
“These awards will help meet two monumental public safety challenges — the alarming proliferation of gun violence in our country and the clear need for front-end interventions to slow the cycle of violence and victimization in our most underserved communities,” said BJA Director Karhlton F. Moore. “The Bureau of Justice Assistance is proud to make these resources available to states as a critical part of its mission to reduce and prevent crime and to promote a fair and effective criminal justice system.”
For a full list of awards, please visit: https://data.ojp.usdoj.gov/stories/s/O-BJA-2023-171458/b5xz-as5z/. These awards are the latest effort from the Department of Justice’s Office of Justice Programs to implement this historic legislation.
Colorado man sentenced to more than 11 years in prison for trafficking meth, fentanyl to MontanaRead the Press Release
BILLINGS — A Colorado man who was convicted of trafficking methamphetamine and fentanyl after Yellowstone County law enforcement found the drugs and a firearm in his vehicle during a traffic stop was sentenced today to 11 years and three months in prison, to be followed by four years of supervised release, U.S. Attorney Jesse Laslovich said.
James Robert Harrelson, 49, of Colorado Springs, Colorado, pleaded guilty in September 2022 to possession with intent to distribute controlled substances.
U.S. District Judge Susan P. Watters presided.
The government alleged in court document that in April 2022, officers with the Eastern Montana High Intensity Drug Trafficking Area Task Force received information that Harrelson was trafficking drugs from Colorado to Billings. An investigation led to a traffic stop of Harrelson by Yellowstone County Sheriff’s deputies. Task force officers searched the vehicle and found meth, fentanyl pills, drug scales, plastic baggies, smoking devices, hypodermic needles and a 9mm handgun. Harrelson admitted that he was transporting the drugs from Colorado to Billings and that the handgun was his.
Assistant U.S. Attorney Colin M. Rubich prosecuted the case, which was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Co-Owner of Multiple Companies Sentenced to 12 Months and A Day in Prison for Failing to Pay over $1 Million in Payroll TaxesRead the Press Release
A co-owner of multiple businesses was sentenced today to 12 months and a day in prison and two years of supervised release for failing to pay over $1 million in payroll taxes for his companies. Omar Mostafa, 57, of New Jersey, pleaded guilty on Aug. 8, 2022, before U.S. District Judge Georgette Castner to an information charging him with willful failure to collect or pay taxes.
California Residents Indicted for Defrauding Architecture Firm of More Than $91,000 by Using Fictitious Law Firm and Fraudulent Target LetterRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Daniel B. Brubaker, Inspector in Charge of the New York Division of the United States Postal Inspection Service (“USPIS”), announced the return of an Indictment today by a grand jury charging MATTHEW BLAKE MORROW-WU and SHANGZHEN WU, a/k/a “Daniel Wu,” with perpetrating a scheme to defraud a Manhattan architecture firm (the “Company”) at which WU was employed as a business manager. MORROW-WU and WU were arrested on February 1, 2023, in Los Angeles, California, pursuant to a criminal Complaint and presented in the Central District of California. The case has been assigned to U.S. District Judge Alvin K. Hellerstein.
U.S. Attorney Damian Williams said: “Morrow-Wu and Wu brazenly used an architecture firm, at which Wu worked, as their personal ATM. They transferred over $91,000 from the architecture firm to a fictitious law firm that they incorporated, forged false documentation that appeared to authorize the fraudulent transactions, and ultimately sent a fake target letter — purportedly from this Office — to the architecture firm threatening it with criminal prosecution after the architecture firm continued to dispute the fraudulent transactions. Morrow-Wu and Wu now face a harsh reality as a result of their elaborate lies and false threats of prosecution: a real prosecution by the Southern District of New York.”
USPIS Inspector in Charge Daniel B. Brubaker said: “Morrow-Wu and Wu conspired to allegedly steal nearly $100,000 from a Manhattan-based business. Their misguided aim was to make money and conceal their scheme by allegedly duping innocent victims into believing they were the target of a federal investigation. By mailing their fictitious letter, Morrow-Wu and Wu attracted the attention of the U.S. Attorney’s Office and Postal Inspectors. In an ironic twist, they became the targets of a federal criminal investigation. Today’s indictment is the next step on the road to justice for this couple. This indictment should serve as a stern warning to anyone who would use the U.S. Mail to commit fraud: Postal Inspectors and our law enforcement partners will tirelessly pursue you across the country, from one coast to another, to bring you to justice.”
According to the allegations contained in the Complaint, the Indictment, and statements at public court proceedings in the case:[1]
From at least in or about January 2022 through in or about October 2022, MORROW-WU and WU perpetrated a scheme to steal more than $91,000 from the Company, where WU was employed as a business manager, through the fraudulent and unauthorized use of a credit card held by the Company. MORROW-WU and WU took extensive steps to conceal the fraud, which included the following:
- Forming a sham law firm named Morrow Law Group (“MLG”) to receive the funds under the guise of receiving legal fees from the Company, despite the fact that neither MORROW-WU nor WU appear to be licensed attorneys.
- Fabricating a retainer agreement between MLG and the Company that purported to pre-authorize payments from the Company to MLG, as well as other correspondence from the Company to MLG purportedly authorizing the fraudulent transactions, and forging the signatures of Company representatives in these documents.
- Using a payment processing provider to process the credit card transactions, enabling MORROW-WU and WU to manually input the names of legitimate vendors of the Company as false recipients of the funds and further disguise the true recipients of the funds.
After the Company confirmed the credit card transactions were fraudulent and unauthorized, it disputed the transactions with the credit card company, leading MORROW-WU and WU to attempt to deter any further action by sending the Company a fake “target letter” from the U.S. Attorney’s Office for the Southern District of New York (the “Fraudulent Target Letter”). The Fraudulent Target Letter purported to be signed by a Special Assistant U.S. Attorney on behalf of the U.S. Attorney and threatened the Company with criminal prosecution for wire fraud, conspiracy to commit wire fraud, and the fraudulent use of credit cards.
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MORROW-WU, 38, and WU, 29, both of Los Angeles, California, are each charged with one count of conspiracy to commit wire and mail fraud, which carries a maximum penalty of 20 years in prison; one count of wire fraud, which carries a maximum penalty of 20 years in prison; one count of mail fraud, which carries a maximum penalty of 20 years in prison; one count of impersonating a federal officer, which carries a maximum penalty of three years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the Special Agents of the United States Attorney’s Office for the Southern District of New York and the U.S. Postal Inspectors of the USPIS.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Jerry J. Fang is in charge of the prosecution.
The charges contained in the Complaint and the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the Indictment and the descriptions of the Complaint and the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
California Man Sentenced to 15 Years in South Dakota Meth and Money ConspiracyRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Los Angeles, California, man convicted of Conspiracy to Distribute a Controlled Substance and Conspiracy to Launder Monetary Instruments. The sentencing took place on February 6, 2023.
Daniel Fiero Navarrette, 54, was sentenced to 15 years in federal prison, followed by 10 years of supervised release. He was also ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
Navarrette was indicted for Conspiracy to Distribute a Controlled Substance and Conspiracy to Launder Monetary Instruments by a federal grand jury in September of 2022. He pleaded guilty on October 7, 2022.
In March of 2021, Navarrette reached an agreement to distribute 500 grams or more of a mixture and substance containing methamphetamine in the District of South Dakota.
During his involvement in the conspiracy, he reached an agreement to provide a co-conspirator in South Dakota with large amounts of methamphetamine, and also assisted his co-conspirator in meeting other individuals so that he could obtain multi-pound quantities of methamphetamine. As part of his conspiracy to distribute methamphetamine in South Dakota, the defendant also engaged in Money Laundering.
This case was investigated by the Drug Enforcement Administration, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, IRS Criminal Investigations, South Dakota Highway Patrol, Minnehaha County Sheriff’s Office, and the Sioux Falls Area Drug Task Force. Assistant U.S. Attorney Mark Hodges prosecuted the case.
Navarrette was immediately remanded to the custody of the U.S. Marshals Service.
Armed Wilmington Drug Dealer with Sawed-Off Semiautomatic Rifle Sentenced to 10 Years in Federal PrisonRead the Press Release
NEW BERN, N.C. – Ronesha Greene-McNeil, 36, of Wilmington North Carolina, was sentenced to 120 months in prison for conspiracy, distribution of methamphetamine, and possession of a sawed-off semiautomatic rifle with a 110-round drum magazine.
According to court documents and other information presented in court, between April 7, 2021, and May 26, 2021, Greene-McNeil, on five separate occasions sold a total of more than a kilogram of methamphetamine to an undercover Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) agent in Brunswick County North Carolina. On June 7, 2021, Greene-McNeil also sold a 9mm handgun and a sawed-off .22 caliber semiautomatic rifle with a 110-round drum magazine to undercover ATF agents at the same location in Brunswick County.
On June 23, 2021, Greene-McNeil was stopped in a vehicle she was driving for a traffic violation, and, during a search of her vehicle, Brunswick County Sheriff’s deputies located a kilogram of methamphetamine.
This is part of operation “Golfer” which is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Bureau of Alcohol, Tobacco and Firearms and the New Hanover and Brunswick County Sheriffs’ Office investigated the case and Assistant U.S. Attorney Timothy Severo and Gabe Diaz prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:22-CR-00025-FL.
Anthon, Iowa Man Pleads Guilty to Drug Conspiracy ChargesRead the Press Release
Brett Sauser, 38, from Anthon, Iowa, pled guilty February 10, 2023, in federal court in Sioux City. Sauser was convicted of one count of conspiracy to distribute methamphetamine, cocaine, and fentanyl and one count of possession with intent to distribute methamphetamine within a protected location. Sauser resided within 1000 feet of Memorial Park and Anthon Elementary School in Anthon, Iowa.
At the plea hearing, Sauser admitted that from January 2019 through August 2022, he participated in the distribution of at least 350 grams of methamphetamine and possessed more than 20 grams each of cocaine; fentanyl; ketamine; and MDMA. Sauser obtained the controlled substances through the dark web and would receive the drugs through the U.S. Postal Service. In August of 2022, law enforcement executed a search warrant at Sauser’s residence after a covert delivery of a package containing ¼ pound of methamphetamine. The evidence seized included 3 separate baggies of methamphetamine, approximately 3.5 grams each, plus small amounts of MDMA, heroin, ketamine, LSD, marijuana (including a nearly full-sized marijuana plant), three bags of mushroom roots (for manufacture of psilocybin mushrooms) and various drug use and distribution paraphernalia.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Sauser remains in custody of the United States Marshal pending sentencing. On the conspiracy conviction, Sauser faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least five years of supervised release following any imprisonment. On the possession with intent conviction, Sauser faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 80 years’ imprisonment, a $10,000,00 fine, and at least eight years of supervised release.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4065.
Follow us on Twitter @USAO_NDIA.
3 women indicted for conspiring to place arson device in local nail salonRead the Press Release
CINCINNATI – A federal grand jury indicted three women today on charges related to the attempted arson of a nail salon in Monroe, Ohio.
It is alleged that Kim Lien Vu, 45, of Liberty Township, Ohio; Cierra Marie Bishop, 29, of Hamilton, Ohio; and Makahla Ann Rennick, 18, of Hamilton, Ohio, were responsible for initiating an incendiary device at Bora Bora Nail Salon on Hamilton-Lebanon Road in Monroe with the intent of destroying the facility.
It is alleged that Vu enlisted the other defendants to build and help plant the device. Ohio Secretary of State records show that Vu owns two nail salons: Allure Nails Vu LLC and Love Nail Vu LLC.
An affidavit filed in support of a criminal complaint details that on Feb. 5, surveillance camera footage shows Bishop and Rennick entering the salon. Rennick had made an appointment for a pedicure under the name “Katelynn,” allegedly at the direction of Vu for Rennick to get the latest nail appointment she can and to “Just use another name. Sound white.” Rennick is shown receiving her nail services.
Bishop allegedly sat near Rennick during the pedicure and is then seen walking toward the rear of the salon holding two white bags. Bishop placed one of the bags behind a desk before leaving the salon.
A salon employee then found the suspected device, which smelled like gasoline. The employee opened the package, seeing that it looked like an explosive device, and took it outside near the salon’s dumpsters. The employee later went back outside to check on the device and noticed that it was burning.
Monroe police officers responded to a call reporting a dumpster fire near the salon.
Text messages on Bishop’s and Rennick’s phones show the co-defendants planning the incident for at least one week.
Maliciously damaging or destroying property, or attempting to maliciously damage or destroy property, via a fire or explosive device is a federal crime punishable by a range of five to 20 years in prison. Conspiring to commit malicious destruction via fire is punishable by up to five years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); Angie Salazar, Special Agent in Charge, U.S. Homeland Security Investigations (HSI); and Monroe Police Chief Bob Buchanan. Assistant United States Attorney Timothy S. Mangan is representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Tuesday 14 February 2023
Wilmington Man Who Sold 3-D Printed “Ghost Gun” to Undercover Agent Gets More than Six Years in Federal PrisonRead the Press Release
NEW BERN, N.C. – David Hedge, 22, of Wilmington North Carolina, was sentenced to 75 months in prison for distribution of methamphetamine and possession of a firearm in furtherance of a drug trafficking offense, including selling a stolen gun and a privately manufactured firearm, commonly referred to as a “Ghost Gun,” which he bragged did not have any serial numbers and couldn’t be traced by law enforcement.
“Non-serialized ghost guns are increasingly getting into the hands of drug traffickers and contributing to the violence in our communities,” said U.S. Attorney Michael Easley. “Working with the ATF and local law enforcement, we are holding accountable those pushing illegal guns and drugs. The ‘untraceable’ gun the defendant once bragged about has led to a very traceable prison sentence.”
According to court documents and other information presented in court, on September 1, 2021, Hedge sold an ounce of methamphetamine to an undercover Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) agent. The agent asked Hedge if he was armed while he was dealing. Hedge produced a handgun with a high-capacity magazine loaded with 25 rounds. Hedge informed the undercover officer that it was a “Ghost Gun,” and described how the gun had been made on a 3-D printer. The agent purchased the gun from Hedge. On September 8, 2021, Hedge sold the undercover agent 2 loaded firearms, one of which had been reported stolen and almost a half-ounce of methamphetamine.
This is part of operation “Golfer” which is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Bureau of Alcohol, Tobacco and Firearms and the New Hanover and Brunswick County Sheriffs’ Office investigated the case and Assistant U.S. Attorney Timothy Severo and Gabe Diaz prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:22-CR-00037-FL.
Wichita Man Pleads Guilty to Conspiracy to Commit Odometer TamperingRead the Press Release
OKLAHOMA CITY – MICHAEL MARKS, 31, of Wichita, Kansas, pleaded guilty today to conspiracy to commit odometer tampering, announced U.S. Attorney Robert J. Troester.
Public records reflect that on February 10, 2023, Marks was charged by Information with one count of conspiring to alter the odometers of motor vehicles. The Information alleges that between August 2017 and July 2022, Marks and his coconspirators purchased 15 used vehicles, altered their odometers to register lower mileages, and then resold the vehicles to unsuspecting buyers. Federal law prohibits conspiring to knowingly and willfully disconnect, reset, and alter an odometer of a motor vehicle intending to change the registered odometer mileage.
Today, Marks pleaded guilty to the Information. Marks will be sentenced in approximately 90 days. At sentencing, Marks faces up to three years of imprisonment and a fine of $250,000. Under the terms of his plea agreement with the government, Marks has also agreed to pay restitution to the victims who purchased the 15 vehicles.
This case is the result of an investigation by the U.S. Department of Transportation’s Office of Odometer Fraud Investigation. The case is being prosecuted by Assistant U.S. Attorney D.H. Dilbeck.
Reference is made to the Information and other public court filings for further information.
Wheeling man gets 16 years for cocaine traffickingRead the Press Release
WHEELING, WEST VIRGINIA – A Wheeling, West Virginia man was sentenced to more than 16 years in prison today after trafficking cocaine while on federal probation.
Christopher Park, age 51, was sentenced to 198 months for possessing cocaine with the intent to deliver and for violating his supervised release. According to court documents, in May 2022 agents working parcel interdiction identified a package from Phoenix, Arizona containing nearly a kilogram of cocaine meant to be delivered to a Wheeling home. Further investigation connected the package to Park and agents obtained a search warrant for his home, where they seized an additional kilogram of cocaine. Agents also recovered $4,800 in cash.
The Ohio Valley Drug Task Force, a HIDTA-funded initiative; the Wheeling Police Department; and the Belmont County, Ohio Sheriff’s Office investigated.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government.
U.S. District Judge John Preston Bailey presided.
West Palm Beach Healthcare Operator Charged in Employment Tax SchemeRead the Press Release
A federal grand jury in Miami returned an indictment today charging a Florida man with willfully failing to pay over employment taxes and to file individual income tax returns.
According to the indictment, from 2009 to 2019, Paul Walczak of Palm Beach Gardens owned multiple health care companies, including NuVista, Palm Health Partners and a health care employment company called PHP Employment Services, LLC (PHPES), which he formed in July 2010. As the owner of PHPES, Walczak allegedly exercised control over the business’s finances and was responsible for paying over to the IRS the employment taxes, including federal income, Social Security, and Medicare taxes, withheld from his employees’ wages. The indictment alleges that from 2016 to 2019, Walczak did not pay over to the IRS more than $6 million in withholdings.
The indictment further charges that from 2016 through 2018 Walczak received a gross annual salary of at least $360,000 from the health care companies. In addition to his salary, he allegedly received significant wire transfers from his companies. Rather than pay over the withheld funds to the IRS, the indictment alleges Walczak used funds to invest in his businesses, purchase a yacht, lease luxury vehicles and charter private international flights.
Finally, the indictment charges Walczak with not filing personal income tax returns for 2018, 2019 and 2020.
If convicted, Walczak faces a maximum penalty of five years in prison for each employment tax count and one year for each failure to file a tax return count. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Francesca Bartolomey and Mitchell Galloway of the Justice Department’s Tax Division are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Washington, Illinois, Woman Sentenced to 44 Months in Federal Prison for Making False Statement During Purchase of Firearm Later Used in a Violent CrimeRead the Press Release
PEORIA, Ill. – A Washington, Illinois, woman, Kirstin Sue Jackson, 40, of the 300 block of North Summit Drive, was sentenced on February 13, 2023, to 44 months in federal prison for making a false statement during the purchase of a firearm. Upon release from imprisonment, Jackson will serve a three-year term of supervised release.
At the sentencing hearing before U.S. District Judge James E. Shadid, the government presented evidence that in May 2021, Jackson acquired a Glock Model 19x, 9mm pistol from Pekin Gun and Sporting Goods in Pekin, Illinois. Jackson knowingly made a false and fictitious written statement when purchasing the gun. Specifically, Jackson represented she was the actual buyer of the firearm, when in fact, she was purchasing the pistol for her 18-year-old son, Eric Jackson, who could not legally buy or possess the gun.
Following the transfer of the gun from Jackson to her son, the gun was fired at the scene of a July 2021 shooting in the 600 block of Haungs Avenue in Peoria in which 3 individuals were shot. One of the victims, 21-year-old Michael Johnson, was shot in the head and ultimately succumbed to his injuries. The homicide investigation conducted by the Peoria Police Department resulted in the arrest of Eric Jackson and a search of his car, home, and cellphone. During searches of the car and home, police located the Glock 19x pistol purchased by Jackson, as well cannabis, several thousand dollars cash, two boxes of 9mm ammunition, a silver handgun magazine, and a 50-round drum-style magazine loaded with 33 rounds of ammunition. On Eric Jackson’s phone, investigators located text messages that revealed that Jackson knew her son was involved in drug trafficking when she purchased the Glock for him. In a message in May 2021, Jackson asked her son, “Please. Do not let me get my [FOID] card taken or my name on someone’s body.”
Jackson was interviewed by ATF agents in August 2021 and admitted that she lied on the forms at the gun store and had purchased the gun for her son. She stated that her son had paid for the gun, and she purchased it for him because he needed protection due to being in “risky situations.” Jackson admitted that she knew her son was selling drugs and would be in possession of large amounts of money. She also admitted to buying ammunition for him.
Also at the hearing, Judge Shadid stated, “I don’t believe you intended this harm to occur to another person – but you have to be sentenced for your conduct which set in motion the chain of events where a gun was used on a certain night, and at a certain location, where a death resulted and others were shot – all foreseeable consequences of the purchase of this gun for your son.”
Jackson, then residing in South Pekin, Illinois, was indicted in September 2021 and was released on bond under United States Pretrial Supervision. Jackson entered a guilty plea in September 2022 and has remained on bond pending sentencing. She was taken into custody at the conclusion of the sentencing hearing to immediately begin serving her sentence.
The statutory penalties for a false statement during the purchase of a firearm are not more than 10 years’ imprisonment, up to three years of supervised release, and a potential fine of up to $250,000.
“Straw purchasing is not a victimless crime,” said Assistant U.S. Attorney Ronald L. Hanna. “Violence in our communities is being fueled by individuals who are willing to assume the risk of lying during the purchase of a gun and supplying a lethal weapon to someone else. This case should send a message to those thinking about straw purchasing firearms – you have no control over how that gun is used once it leaves your hands – and you will be subject to federal prosecution if you lie when you buy.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Peoria Police Department investigated the case. Assistant U.S. Attorney Hanna represented the government in the prosecution.
The case against Jackson 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.
ATF’s campaign “Don’t Lie for the Other Guy” is a part of PSN aimed at reducing firearm “straw purchases”, the illegal purchase of a firearm by one person for another, and to educate would-be straw purchasers of the penalties of knowingly participating in an illegal firearm purchase. More information about the campaign can be found at: www.dontlie.org.
Violent Drug Dealer Gets More Than 10 Years in Federal Prison for Trafficking MethamphetamineRead the Press Release
NEW BERN, N.C. – Naulege Johnson, 24, of Wilmington, was sentenced to 121 months in prison for distribution of 50 grams or more of methamphetamine. He pled guilty to the charge on October 4, 2022.
According to court documents and other information presented in court, on July 8, 2021, Johnson sold 32 grams of methamphetamine to an undercover Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) agent in Brunswick County, North Carolina. On July 14, 2021, Johnson sold more than 100 grams of actual methamphetamine to the same agent at the same location and more than 160 grams of actual methamphetamine on July 22, 2021. The investigation revealed that Johnson had been validated a member of the United Blood Nation by law enforcement.
Johnson has prior convictions for possession of a stolen firearm (2017) and possession with intent to manufacture, deliver or sell heroin (2020). He was on probation for the heroin charge at the time he committed the current offense. Johnson also has a pending First-Degree Murder charge in New Hanover County.
This is part of “Operation Golfer” which is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Bureau of Alcohol, Tobacco and Firearms and the New Hanover and Brunswick County Sheriffs’ Office investigated the case and Assistant U.S. Attorney Timothy Severo and Gabe Diaz prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:22-CR-00028-FL.
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Vietnamese National Sentenced to 14 Years for Meth Trafficking, Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – A Vietnamese national has been sentenced in federal court for illegally possessing methamphetamine to distribute and a firearm.
Hon Chau, 44, no known address, was sentenced by U.S. District Judge M. Douglas Harpool on Monday, Feb. 13, to 14 years and two months in federal prison without parole.
On Aug. 16, 2022, Chau pleaded guilty to one count of possessing methamphetamine with the intent to distribute and one count of possessing a firearm in furtherance of a drug-trafficking crime.
Chau was arrested on Feb. 27, 2020, when he drove a Chrysler 200 and parked in the driveway of a Springfield residence while law enforcement offices were executing a search warrant. Officers ordered Chau to get out of his vehicle, but he refused. Instead, Chau backed his vehicle into the officers’ vehicles parked behind him. Officers broke out the driver’s side window and attempted to remove Chau from his vehicle, but Chau continued to resist and reach towards his right hip. Officers used a Taser and were able to get him out of the vehicle. Chau had a loaded IMEZ .380-caliber semi-automatic pistol in a holster on his right hip. This pistol had been reported as stolen.
Chau had a baggie that contained 287 grams of pure methamphetamine inside his sweater pocket. Officers found $6,943 in cash inside Chau’s vehicle.
Chau, who had a dozen prior state felony convictions prior to this federal case, had been released from the Missouri Department of Corrections less than a year earlier.
This case was prosecuted by Assistant U.S. Attorney Jessica R. Eatmon. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Springfield, Mo., Police Department.
U.S. Justice Department Announces over $200 Million in Investments in State Crisis InterventionRead the Press Release
Louisville, KY – The Justice Department announced today 49 awards to states, territories, and the District of Columbia as part of the Byrne State Crisis Intervention Program. This investment of over $231 million will fund state crisis intervention court proceedings, including but not limited to, extreme risk protection order (ERPO) programs that work to keep guns out of the hands of those who pose a threat to themselves or others. This investment in community safety is authorized by the Bipartisan Safer Communities Act of 2022, historic legislation to address and reduce gun violence.
“The Justice Department is working relentlessly to protect communities from violent crime and the gun violence that often drives it, and the Byrne State Crisis Intervention Program is an important part of that effort,” said Attorney General Merrick B. Garland. “These awards will support the kinds of crisis intervention programs that we know save lives and help protect children, families, and communities across the country from senseless acts of gun violence.”
“The Department of Justice’s strategy to reduce violent crime and gun violence includes prioritizing support for successful, evidence-based programs,” said Deputy Attorney General Lisa O. Monaco. “The grants announced today invest in and highlight proven state and local violence prevention and intervention programs, that will make our communities safer.”
These awards, administered by the Department’s Office of Justice Programs’ Bureau of Justice Assistance (BJA), provide funding to states for the creation and implementation of extreme risk protection order programs, state crisis intervention court proceedings, and related gun violence reduction initiatives. Extreme risk protection order programs empower family members, health care providers, school officials and law enforcement officers to petition a court to temporarily prevent a person from accessing firearms if they are found to be a danger to themselves or others. Funds can also support interventions like drug, mental health and veterans’ treatment courts, gun violence recovery courts, behavior health deflection and outpatient treatment centers.
“Protecting communities from gun crime is an urgent public safety challenge and a critical part of the Justice Department’s work to ensure that everyone in this country can live free from the fear of violence,” said Associate Attorney General Vanita Gupta. “The resources we are announcing today will give communities the tools they need to prevent firearm violence and deliver support to those who are at risk of committing or being victimized by gun crime.”
The Bipartisan Safer Communities Act also seeks to ensure that extreme risk protection order laws and programs are implemented in accordance with the Constitution and provide for adequate due process protections. Projects funded under this program will need to demonstrate that they have taken measures to safeguard the constitutional rights of an individual subject to a crisis intervention program or ERPO initiative. The Justice Department has long supported state efforts to increase the use of ERPOs and in 2021 the Department released model legislation to help states create their own extreme risk protection order systems and provide for intervention before warning signs turn into tragedy.
Signed into law by President Biden in June 2022, the Bipartisan Safer Communities Act is the most significant piece of federal gun safety legislation in almost three decades and comes as a response to recent mass shootings and to the far more common, but no less tragic, incidents of community gun violence. Including the Byrne State Crisis Intervention Program, the law allocates a total of $1.4 billion to OJP over five years to develop, implement, and sustain meaningful investments in safer communities.
“These awards will help meet two monumental public safety challenges — the alarming proliferation of gun violence in our country and the clear need for front-end interventions to slow the cycle of violence and victimization in our most underserved communities,” said BJA Director Karhlton F. Moore. “The Bureau of Justice Assistance is proud to make these resources available to states as a critical part of its mission to reduce and prevent crime and to promote a fair and effective criminal justice system.”
For a full list of awards, please visit: https://data.ojp.usdoj.gov/stories/s/O-BJA-2023-171458/b5xz-as5z/. These awards are the latest effort from the Department of Justice’s Office of Justice Programs to implement this historic legislation.
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U.S. Attorney Mark Totten Statement on MSU Campus Shootings MondayRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney for the Western District of Michigan Mark Totten issued the following statement concerning the shootings on the campus of Michigan State University Monday evening.
“Last night’s shootings on the campus of Michigan State University were senseless, tragic, and horrible. Thousands of students and their loved ones endured a terror that no one should ever, ever experience. As a former MSU law professor and fellow Michigander, my heart goes out to the Spartan community and especially to the families of the students killed or injured. I’m grateful for the hundreds of first responders who turned out last night and bravely did their work. And my office and I stand ready to assist in any way we can.”
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Two Zuni men charged with assault in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Christopher Hannaweeke Sr. and Christopher Hannaweeke Jr. made an initial appearance in federal court facing a charge of assault resulting in serious bodily injury in Indian Country. Hannaweeke Sr., 48, and Hannaweeke Jr., 29, of Zuni, New Mexico, and an enrolled member of the Pueblo of Zuni, will remain detained pending a preliminary hearing scheduled for Feb. 16.
According to a criminal complaint, on Jan. 27, the victim’s mother witnessed a car hit the family’s dog. The victim exited his residence on foot and chased the vehicle suspected of hitting the dog. When the vehicle stopped, the victim recognized the occupants as the defendants. The defendants and a third individual exited the vehicle and Hannaweeke Sr. struck the victim over the head with an unknown object. Once the victim was on the ground, the defendants assaulted the victim by punching and kicking the victim. Multiple witnesses observed the assault as it occurred and intervened. A witness identified one of the assailants as Hannaweeke Jr. The victim suffered serious bodily injury as a result and required surgery.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Hannaweeke Sr. and Hannaweeke Jr. face up to ten years in prison.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Zuni Police Department. Assistant United States Attorney Caitlin L. Dillon is prosecuting the case.
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Two Las Cruces men face federal firearms charges relating to the killing of womanRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that Margarito Serena and David Aguilar made an initial appearance in court where they were charged by criminal complaints with federal firearms violations. Aguilar, 26, of Las Cruces, is charged with being a felon in possession of a firearm and ammunition. Serena, 29, of Las Cruces, is charged with being a felon in possession of a firearm and ammunition. Both men will remain in custody pending a preliminary and detention hearing scheduled for this week.
According to the complaints, on Jan. 30, Las Cruces Police Officers responded to a report of a gunshot victim at an apartment in Las Cruces, New Mexico. Upon arrival, officers located a deceased victim. The victim’s neighbor told officers that they went to the victim’s apartment after hearing sounds of an argument followed by a loud bang because they knew the victim has previous arguments and altercations with Aguilar. The neighbor stated that Aguilar opened the door holding a black 12-guage shotgun and asked the neighbor to call the police because the victim had shot herself. The neighbor saw Serena sitting on a couch in the apartment’s living room. The neighbor returned to their apartment to dial 911 and later witnessed Aguilar and Serena fleeing the scene.
Following the interview, Las Cruces Police Officers apprehended Aguilar and Serena. When questioned, both Serena and Aguilar admitted to handling the shotgun.
In 2016, Aguilar was convicted of Armed Robbery and Attempted Armed Robbery. In 2013, Serena was convicted of Possession of an Unregistered Firearm. As previously convicted felons, neither Aguilar nor Serena can legally possess firearms or ammunition.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Aguilar and Serena face up to 15 years in prison.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case with assistance from the Las Cruces Police Department. Assistant United States Attorney Maria Y. Armijo is prosecuting the case.
Anyone experiencing domestic violence or who knows someone experiencing domestic violence can reach an advocate at the National Domestic Violence Hotline at 1-800-799-SAFE (7233) or 1-800-787-3224 (TTY). In New Mexico, the Domestic Violence Resource Center is available by telephone at (505) 843-9123 or online at https://dvrcnm.org/.
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Two Columbia Residents Plead Guilty to $1.2 Million Insurance Fraud ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Two Columbia, Mo., residents pleaded guilty in federal court today to their roles in a $1.2 million insurance fraud conspiracy that involved false claims of injuries suffered in car accidents.
Latoya Marie Brown, 37, who also lived in the Kansas City, Mo., area, and Cedrick Shawndale Goldman, 46, each pleaded guilty in separate appearances before U.S. Magistrate Judge Willie J. Epp, Jr., to one count of conspiracy to commit wire fraud and one count of conspiracy to commit mail fraud.
By pleading guilty today, Brown and Goldman admitted they were part of a conspiracy that defrauded six insurance companies of a total of $1,234,581 from June 2017 to July 2020. Conspirators submitted false claims that they had suffered bodily injuries and that they would be personally liable for any medical bills related to insurance claims. Conspirators, some of whom were involved in multiple incidents, received thousands of dollars, and in some cases tens of thousands of dollars, based on these false claims. However, none of the conspirators made any payments to medical providers and instead used the funds for their personal expenses.
Brown admitted she was involved in three incidents and received a total of $44,269 in insurance payments. Goldman admitted he was involved in one incident and received a $14,900 insurance payment. Neither Brown nor Goldman have paid any of their hospital or medical bills with the insurance proceeds they received.
Under federal statutes, Brown and Goldman each are subject to a sentence of up to 40 years 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 defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Aaron M. Maness. It was investigated by the FBI and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Texas Man Sentenced to 42 Months in Prison for Role in Scheme to Fraudulently Obtain over $30 Million in COVID-19 Relief LoansRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that AMOS MUNDENDI, a/k/a “Mos,” a/k/a “El Ashile Mundi,” was sentenced today in Manhattan federal court by United States District Judge Paul A. Engelmayer to 42 months in prison for his participation in a scheme to fraudulently obtain over $30 million in Government-guaranteed loans designed to provide relief to small businesses during the COVID-19 pandemic. MUNDENDI is the last of five defendants to be sentenced in the case. MACKENZY TOUSSAINT, APOCALYPSE BELLA, a/k/a “Dias Yumba,” BRANDON JACKSON, and ALVIN MAXWELL were previously sentenced by Judge Engelmayer.
U.S. Attorney Damian Williams said: “Amid the outbreak of the COVID-19 pandemic that wreaked havoc on economies worldwide, Amos Mundendi and his co-defendants illegally plundered funds meant to financially support struggling businesses. All defendants in this case will now serve substantial prison time for stealing much-needed relief intended for legitimately deserving companies.”
According to allegations in the Complaints, the Indictments, the Superseding Information, and statements made during court proceedings:
TOUSSAINT, BELLA, MAXWELL, and MUNDENDI were involved in an extensive scheme to prepare and submit fraudulent applications to the Small Business Administration (“SBA”) and to at least one company which processed loan applications under the SBA’s Paycheck Protection Program (“PPP”). Over the course of the scheme, TOUSSAINT, BELLA, MAXWELL, and MUNDENDI attempted to fraudulently obtain over $30 million in Government-guaranteed loans for various companies through the PPP, designed to provide financial relief to qualifying companies during the COVID-19 pandemic. The scheme resulted in over $15 million in actual loss.
The defendants’ scheme included the submission of fraudulent applications for PPP loans for several companies, including two companies (“Company‑1” and “Company-2”) both located in the Southern District of New York. The loan proceeds for Companies-1 and -2 totaled approximately $4 million, and the fraudulent funds were distributed to a series of bank accounts located in the United States and elsewhere, including bank accounts controlled by TOUSSAINT and BELLA.
The PPP loan applications for Company-1 and Company-2 were false, containing lies designed to maximize proceeds to the fraud scheme. Specifically, applications for both Company-1 and Company-2 contained material differences from loan applications submitted for both companies under the Economic Injury Disaster Loan (“EIDL”) program just months earlier. For instance, the PPP loan application for Company-1 — which was submitted on June 30, 2020 — represented that Company-1 had over 100 employees. However, an earlier EIDL loan application for Company-1 dated on or about March 30, 2020, represented that Company-1 had only four employees.
TOUSSAINT, BELLA, and MUNDENDI devised and executed the fraud scheme by conspiring with individuals who owned, operated, or otherwise were affiliated with businesses such as Company-1 and Company-2. MAXWELL was one such individual — a business-owner who participated in the scheme to fraudulently obtain over $1.6 million for his own business.
In addition, TOUSSAINT and JACKSON engaged in a separate scheme to submit fraudulent EIDL applications, often through the use of synthetic identities (i.e., a fake name used in combination with true personal identifying information of another person). TOUSSAINT and JACKSON used Social Security Numbers belonging to minors as part of the synthetic identities created for use in the fraud scheme. At least approximately $1.7 million in EIDL loan funds were disbursed as a result of TOUSSAINT’s and JACKON’s EIDL loan fraud scheme.
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In addition to the prison sentence, MUNDENDI, 33, of Irving, Texas, was ordered to pay $9,315,418.00 in restitution.
On October 27, 2022, BELLA, 48, of Clackamas, Oregon, was sentenced to 40 months in prison and ordered to pay $4,088,084.42 in restitution.
On November 10, 2022, TOUSSAINT, 40, of Irving, Texas, was sentenced to 90 months in prison and ordered to pay $12,402,676.92 in restitution.
On December 6, 2022, MAXWELL, 46, of Lancaster, Texas, was sentenced to 18 months in prison and ordered to pay $1,696,534.63 in restitution.
On February 3, 2023, JACKSON, 35, of Farmer’s Branch, Texas, was sentenced to 33 months in prison and ordered to pay $1,772,453.00 in restitution.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation, the Small Business Administration’s Office of the Inspector General, and the Internal Revenue Service, Criminal Investigation.
The case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Dina McLeod is in charge of the prosecution.
Steinhatchee Church Deacon Sentenced to 22 Years in Federal Prison for Production of Child PornographyRead the Press Release
TALLAHASSEE, FLORIDA –Jonathan High, 31, of Steinhatchee, Florida, was sentenced to twenty-two years in federal prison after having been found guilty at a bench trial on October 4, 2022, of two counts of use of a child to produce child pornography. Prior to the trial, High pleaded guilty to one count of possession of child pornography. The sentence was announced by Jason R. Coody, Unites States Attorney for the Northern District of Florida.
“Child predators seek to prey upon our children in any setting imaginable – in this instance from inside a house of worship,” said U.S. Attorney Coody. “As such, we must remain vigilant. This sentence is yet another example of the unwavering commitment to the protection of our most vulnerable and should serve as a significant deterrent to those who would attempt to harm them. We will continue to work tirelessly with our law enforcement partners to investigate and prosecute those who engage in such heinous conduct.”
In August 2021, law enforcement officers received a Cybertip from the National Center for Missing and Exploited Children (NCMEC) that a user of a cloud storage account uploaded files constituting child pornography. An investigation revealed the account was High’s. Law enforcement officers obtained a search warrant for High’s cell phones and desktop computer, and after an examination of their contents, confirmed that High was in possession of multiple child pornography images and videos that depicted prepubescent boys engaged in sex acts or exposing their genitals in a lascivious manner. Further investigation revealed that some of these images and videos were produced by High personally; High produced separate video recordings of two young boys using the restroom in a Perry, Florida church where High served as a deacon.
“This sentence is yet another example of the unwavering dedication and commitment of HSI special agents, who work tirelessly to protect our most vulnerable,” said HSI Jacksonville Assistant Special Agent in Charge K. Jim Phillips. “Our clear-cut message is, HSI will work tirelessly with our law enforcement partners and the United States Attorney’s Office to bring to justice those who prey upon our children.”
High’s imprisonment prison sentenced will be followed by lifetime supervised release and he will be required to register as a sex offender and will be subject to all sex offender conditions. The Court ordered restitution to provide for counseling to victims in the case and forfeiture of electronic devices used in the commission of the offenses, including two cellular phones and one computer.
Florida Department of Law Enforcement Special Agent in Charge Mark Perez said, “Our law enforcement partnerships are critical in helping to identify and stop the abuse and exploitation of our most vulnerable population. These crimes will not be tolerated, and it’s my hope that the guilty verdict will help the victims begin the healing process.”
This conviction was the result of a joint investigation conducted by Homeland Security Investigations, the Florida Department of Law Enforcement, and the North Florida Internet Crimes Against Children (ICAC) Task Force. Assistant United States Attorneys Justin M. Keen and Kaitlin Weiss prosecuted the case.
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.
Springdale Man Sentenced to over 10 Years in Federal Prison for Drug TraffickingRead the Press Release
FAYETTEVILLE – A Springdale man was sentenced today to 125 months in prison followed by three years of supervised release on one count of Possession with Intent to Distribute Methamphetamine. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court documents, on August 20, 2021, Springdale Police Officers were dispatched to a hit and run accident. After receiving the vehicle description, officers were able to locate the vehicle parked in a nearby parking lot. Officers approached the driver’s door and immediately recognized the driver and sole occupant as, Prince Wayne Fondren, Jr., age, 43. Upon making contact, the officers observed that Fondren was passed out with the vehicle in drive mode. Fondren was then ran through dispatch where it was determined that he did not have a driver’s license and he was a parolee with an active search waiver. A search of the vehicle resulted in officers locating, a black zippered pouch in the front passenger floorboard that contained multiple baggies of suspected methamphetamine weighing approximately 100.58 grams, pills, a small amount of a marijuana, and drug paraphernalia.
The substance was later submitted to the Homeland Security investigations Crime Laboratory for testing where it was tested and determined to be methamphetamine.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Springdale Police Department, the 4th Judicial District Drug Task Force (DTF), and the Fayetteville Police Department investigated the case.
Assistant U.S. Attorney Sydney Butler prosecuted the case.
Sparks Man Sentenced to Prison for Distribution of FentanylRead the Press Release
RENO, Nev. – A Sparks resident was sentenced yesterday by Chief U.S. District Judge Miranda M. Du to five years in prison followed by four years of supervised release for distributing fentanyl pills out of his barbershop.
Jaime Collazo Munoz, aka “Chivo,” (36) was convicted by a jury in September 2022 of two counts of distribution of a controlled substance - fentanyl.
According to evidence presented at the five-day trial and court documents, from July to November 2020, Munoz distributed at least 80 grams of fentanyl in exchange for over $10,000. Munoz distributed the M30 fentanyl pills out of his barbershop “Stay Faded,” located in Sparks, Nevada. During the execution of a search warrant at Munoz’s residence, law enforcement located an electronic scale, cocaine and MDMA, an AR-15 rifle, and loaded firearms.
United States Attorney Jason M. Frierson for the District of Nevada and Assistant Special Agent in Charge Kevin Adams for the Drug Enforcement Administration (DEA) Las Vegas District Office made the announcement.
The case was investigated by the DEA, Washoe County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), United States Marshals Service (USMS), Lyon County Sheriff’s Office, and Regional Narcotics Unit. Assistant U.S. Attorneys Andolyn Johnson and Andrew Keenan prosecuted the case.
Fentanyl – a Schedule II controlled substance – is a synthetic opioid that is 50 times more potent than heroin. Just two milligrams of fentanyl, or the amount that could fit on the tip of a pencil, is considered a potentially lethal dose. According to the Centers for Disease Control and Prevention, in 2021, a record number of Americans – 107,622 – died from a drug poisoning or overdose. Sixty-six percent of those deaths can be attributed to synthetic opioids such as fentanyl.
If you have information of a potential violation of controlled substances laws and regulations, including the growing, manufacture, distribution or trafficking of controlled substances, please contact the DEA at https://www.dea.gov/submit-tip.
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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South Carolina Man Sentenced for Role in International Elder Fraud SchemeRead the Press Release
RICHMOND, Va. – A Duncan, South Carolina man was sentenced today to 51 months in prison for conspiracy to commit mail and wire fraud.
According to court documents, from around February 2020 through June 2020, Jeel Patel, 22, was part of an international fraud scheme originating from call centers in India that disproportionately targeted elders. These call centers would initially contact victims using automated robocalls designed to create a sense of urgency with the recipients. After making initial contact with victims, conspirators known as closers would impersonate government officials such as FBI or DEA agents. These closers would trick and coerce victims into wiring funds to bank accounts controlled by the conspiracy, or shipping parcels of cash to addresses to which conspirators had access. Couriers working for the conspiracy would retrieve the victims’ stolen money, save a portion for themselves, and forward the remainder to the call center operators in India.
Jeel Patel was one such courier, working for a defendant previously prosecuted by the Eastern District of Virginia (Case No. 3:21-cr-47) named Bhavinkumar “Sunny” Patel. Sunny Patel, 28, of Richmond, operated a cell of couriers in several states that was responsible for losses exceeding $3 million to more than 120 victims. On April 8, 2022, “Sunny” Patel was sentenced to 10 years in prison.
During the brief, four-month period that Jeel Patel worked for Sunny Patel, the defendant retrieved or attempted to retrieve 14 packages from 10 different victims, with total actual losses of $485,020. Jeel Patel also participated in repeated home pickups during which he traveled to the residences of two different 80-year-old victims located in Michigan and South Carolina, and under the guise of being a DEA official took the money directly from the victims.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Wayne A. Jacobs, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division, made the announcement after sentencing by U.S. Senior District Judge Henry E. Hudson.
The Union County Sheriff's Office in South Carolina provided significant assistance on this case.
Assistant U.S. Attorneys Brian Hood and Kaitlin Cooke prosecuted the case.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. It is a term used to describe five subtypes of elder abuse: physical abuse, financial fraud, scams and exploitation, caregiver neglect and abandonment, psychological abuse, and sexual abuse. Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting at least 10 percent of older Americans every year. Together with our federal, state, local, and tribal partners, the Department of Justice is steadfastly committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, research, victim services, and public awareness. This holistic and robust response demonstrates the Department’s unwavering dedication to fighting for justice for older Americans.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:22-cr-92.
San Fernando Valley Pharmacist Sentenced to 2 Years in Prison for Knowingly Filling False Prescriptions for Opioids and Other NarcoticsRead the Press Release
LOS ANGELES – A San Fernando Valley pharmacist who used forged prescriptions to illegally sell narcotics, including opioids, to phony “patients” has been sentenced to 24 months in federal prison, the Justice Department announced today.
Gevork Danielian, 41, of Granada Hills, was sentenced on Monday by United States District Judge Mark C. Scarsi, who also ordered him to pay a $100,000 fine.
Danielian pleaded guilty in November 2022 to one count of conspiracy to distributed controlled substances.
From December 2014 to July 2020, Danielian owned and operated the Winnetka-based A&G Vitalife Inc., which did business as A&G Care Pharmacy, where he worked as the pharmacist-in-charge. From April 2018 to December 2018, Danielian conspired with others to unlawfully sell narcotics, including hydrocodone, oxycodone, methamphetamine salts, and alprazolam, an anxiety medication sold under the brand name Xanax.
A co-conspirator would obtain blank prescription papers, Danielian would then provide – usually by text message – the names and dates of birth of individuals to be falsely identified as patients, which the co-conspirator would then use to fill in the falsified prescriptions. The co-conspirator would bring the falsified prescriptions to Danielian, bearing the forged signatures of real physicians. Danielian would “fill” the prescriptions in exchange for money despite knowing the narcotics were not going to be used for a legitimate medical purpose, but rather were going to be illicitly sold by his co-conspirator.
Danielian filled prescriptions for hundreds of pills of opioids and other narcotics during the conspiracy.
For example, on October 29, 2018, Danielian filled prescriptions for approximately 120 pills of 30-milligram strength oxycodone each for two fictitious patients, using a forged prescription falsely purporting to have been written by a physician.
In November 2020, the California State Board of Pharmacy placed Danielian on probation for four years and discontinued his business after he was accused of record-keeping deficiencies and dispensing narcotics authorized by fraudulent prescriptions.
“Pharmacists, by training and education, should be gatekeepers to help prevent abuse, addiction, and overdose,” prosecutors argued in a sentencing memorandum. “[Danielian] flouted this responsibility and instead became an agent of addiction and abuse.”
The Drug Enforcement Administration investigated this matter.
Assistant United States Attorney Maria Jhai of the Terrorism and Export Crimes Section prosecuted this case.
San Antonio Man Arrested in Connection with Six National Chain Store RobberiesRead the Press Release
SAN ANTONIO – A San Antonio man was arrested in San Antonio on Monday on federal criminal charges related to his alleged robbery of six national chain stores around San Antonio between Jan. 28 and 31, 2023.
Court documents allege that James Anthony Kirkwood, 68, is responsible for the robberies of two Dollar General stores; two Dollar Trees; a PetSmart; and a Big Lots, over a three-day period. He was arrested on February 6 and had remained in custody at the Bexar County Jail before the arrest on federal charges.
Kirkwood is charged with robbery interfering with interstate commerce. If convicted, he faces a maximum penalty of 20 years in prison. 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 Fred J. Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives Houston Field Division made the announcement.
The ATF and San Antonio Police Department are investigating the case.
Assistant U.S. Attorney William Calve is prosecuting the case.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Russian Businessman Found Guilty in $90 Million Hack-to-Trade ConspiracyRead the Press Release
BOSTON – A Russian businessman was convicted today by a federal jury in Boston for his involvement in an elaborate scheme that netted $90 million through securities trades based on non-public information stolen from U.S. computer networks.
Vladislav Klyushin, a/k/a “Vladislav Kliushin,” 42, of Moscow, Russia, was convicted following a 10-day jury trial of conspiring to obtain unauthorized access to computers, and to commit wire fraud and to commit securities fraud, and with substantive counts of obtaining unauthorized access to computers, wire fraud and securities fraud. U.S. District Court Judge Patti B. Saris scheduled sentencing for May 4, 2023. Klyushin was arrested in Sion, Switzerland in March 2021 and extradited to the United States in December 2021 to face federal charges in Boston.
Klyushin was charged along with two Russian co-conspirators: Ivan Ermakov and Nikolai Rumiantcev. Two others, Mikhail Vladimirovich Irzak and Igor Sergeevich Sladkov, were charged in a separate indictment. All four co-conspirators remain at large. In October 2018, Ermakov was also charged in federal court in Pittsburgh in connection with his alleged role in hacking and related disinformation operations targeting international anti-doping agencies, sporting federations, and anti-doping officials.
“The jury saw Mr. Klyushin for exactly what he is – a cybercriminal and a cheat. He repeatedly gamed the system and finally got caught. Now he is a convicted felon. For nearly three years, he and his co-conspirators repeatedly hacked into U.S. computer networks to obtain tomorrow’s headlines today. They used that nonpublic information to trade illegally in the shares of hundreds of publicly traded companies. He had the answer key and reaped enormous financial gains with stolen inside information. Mr. Klyushin compromised the integrity of our securities markets and cheated individual investors and pension funds,” said United States Attorney Rachael S. Rollins. “This case demonstrates the Department of Justice’s commitment to protecting our financial markets and computer networks by aggressively pursuing those who seek to profit unfairly through intrusive cyber-attacks. My office and our law enforcement partners will continue our work to identify, prosecute and hold accountable criminals like Klyushin regardless of where they reside or the manner in which they try to conceal their illegal activities. Cybercriminals be warned: we will use every tool at our disposal to track you down and you will end up as a defendant in a courtroom.”
“Today’s verdict proves Vladislav Klyushin used various illegal and malicious means to hack into computer systems with the goal of obtaining insider information to gain tens of millions of dollars in illegal profits,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “The FBI will not stand idly by and allow criminals like him to meddle in our financial systems or marketplace at the expense of American investors. We will aggressively investigate anyone who attacks the integrity of our country’s computer networks and capital markets and bring their criminal conduct to a halt.”
Klyushin, Ermakov and Rumiantcev worked at M-13, a Moscow-based information technology company that Klyushin owns. M-13 offered penetration testing and “Advanced Persistent Threat (APT) emulation,” – both services that seek exploitable vulnerabilities in a computer system via hacking techniques, purportedly for defensive purposes. M-13’s website indicated that the company’s “IT solutions” were used by “the Administration of the President of the Russian Federation, the Government of the Russian Federation, federal ministries and departments, regional state executive bodies, commercial companies and public organizations.” In addition to these services, Klyushin invested the money of several investors in his hack-to-trade scheme, and took a 60 percent cut of their profits.
Trial evidence showed that, between at least in or about January 2018 and September 2020, Klyushin, Ermakov, Irzak, Sladkov and Rumiantcev conspired to use stolen earnings information to trade in the securities of companies that are publicly traded on U.S. national securities exchanges, including the NASDAQ and the NYSE, in advance of public earnings announcements. Using the same malicious hacking techniques M-13 advertised to customers, Klyushin and his co-conspirators obtained inside information by hacking into the computer networks of two U.S.-based filing agents that publicly-traded companies used to make quarterly and annual filings through the U.S. Securities and Exchange Commission (SEC). Specifically, Klyushin and his co-conspirators deployed malicious infrastructure capable of harvesting and stealing employees’ login information and used proxy (or intermediary) computer networks outside of Russia to conceal the origins of their activities. With this access, Klyushin and his co-conspirators viewed and downloaded material non-public information, such as quarterly and annual earnings reports that had not yet been filed with the SEC or disclosed to the general public, for hundreds of companies – including Capstead Mortgage Corp., Tesla, Inc., SS&C Technologies, Roku and Snap, Inc. Many of the illegally obtained earnings reports were downloaded through a computer server located in downtown Boston.
Armed with this information before it was disclosed to the public, Klyushin and his co-conspirators knew ahead of time, among other things, whether a company’s financial performance would meet, exceed or fall short of market expectations – and thus whether its share price would likely rise or fall following the public earnings announcement. Klyushin then traded based on that stolen information in brokerage accounts held in his own name and in the names of others. Klyushin and his co-conspirators also distributed their trading across accounts they opened at banks and brokerages in several countries, including Cyprus, Denmark, Portugal, Russia and the United States, and misled brokerage firms about the nature of their trading activities.
Evidence presented at trial demonstrated that the times in which the filing agents were hacked corresponded with the times in which Klyushin and his co-conspirators made profitable trades. Additionally, of the more than 2,000 earnings events around which Klyushin and his co-conspirators traded between January 2018 and September 2020, more than 97 percent were filed with the SEC by the victim filing agents. Testimony at trial indicated that the odds of this trading pattern occurring in the absence of a relationship between the trading and the identity of the filing agent was less than one in a trillion.
In total, Klyushin and his co-conspirators earned close to $100 million in earnings trading from roughly $9 million in investments using inside information, even as they lost close to $10 million in non-earnings trading – representing a return of more than 900 percent during a period in which the broader stock market returned just over 25 percent. Of that amount, Klyushin individually netted more than $38 million, including nearly $23 million on his personal trading and trading for his company, in addition to more than $13 million on the money he invested for others.
The charge of conspiracy to obtain unauthorized access to computers, and to commit wire fraud and to commit securities fraud provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 fine, or twice or the gross gain or loss. The charge of unauthorized access to computers provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss. The charges of securities fraud and wire fraud each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss. Each of the charges also provide for restitution and forfeiture upon conviction. 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.
U.S. Attorney Rollins and FBI SAC Bonavolonta made the announcement today. The SEC, the Justice Department’s Office of International Affairs, the Swiss Federal Office of Justice, the Valais and Zurich Cantonal Police authorities, the Federal Bureau of Investigation’s Washington Field Office and the victim filing agents provided valuable assistance to the investigation. Stephen E. Frank and Seth B. Kosto, Chief and Deputy Chief respectively, of Rollins’ Securities, Financial & Cyber Fraud Unit are prosecuting the case.
Repeat Sacramento Sex Offender Pleads Guilty to Possessing Child PornographyRead the Press Release
SACRAMENTO, Calif. — Jason Michael Carlsen, 49, of Sacramento, pleaded guilty today to possession of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in July 2022, Carlsen possessed child pornography. At the time he possessed these images, Carlsen was on federal supervised release for a prior federal conviction for possession of child pornography.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Nicholas M. Fogg is prosecuting the case.
Carlsen is scheduled to be sentenced by U.S. District Judge John A. Mendez on May 23, 2023. Carlsen faces a mandatory minimum penalty of 10 years in prison up to a maximum of 20 years in prison and a fine of up to $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Providence Man Admits to Assaulting U.S. Postal CarrierRead the Press Release
PROVIDENCE – A 19-year-old Providence man admitted to a federal judge today that he was one of two men who assaulted a U.S. Postal Service letter carrier in November 2021, while the carrier was delivering mail in South Providence, announced United States Attorney Zachary A. Cunha.
According to information presented to the court, in November 2021, Ismael Colon Pena was one of two men seated inside a BMW sedan that had stopped on a narrow South Providence street that was only wide enough to allow one vehicle to pass at a time. As the postal driver maneuvered his truck past the stopped BMW, the postman smiled at the car’s driver in acknowledgement of the brief awkwardness. This was not the end of the interaction, however, as a short time later, when the letter carrier returned to his truck after delivering a package, he was allegedly met by the driver of the BMW, Branly Ferreras-Severino, 22, of Providence. As alleged in court documents, Ferreras-Severino allegedly said, “You think it’s funny? You almost hit me. You wanna get popped?” before striking the letter carrier with his fists. Colon admitted to the court that he also assaulted the postal employee with his fist.
Colon pleaded guilty today to a charge of assault of a federal employee. He is scheduled to be sentenced on May 18, 2023. Ferreras-Severino, charged similarly, is awaiting trial.
The matter was investigated by the United States Postal Inspection Service. United States Attorney Cunha thanks the Rhode Island High Intensity Drug Trafficking Area Task Force for their assistance in the investigation of this matter.
The case is being prosecuted by Assistant U.S. Attorney Zechariah Chafee.
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Okemah Resident Sentenced for Assault, Firearm, and Drug Related Offenses in Indian Country and Escape from Federal CustodyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced today that Dustin Kyle Marris, age 34, of Okemah, Oklahoma, was sentenced to 282 months’ imprisonment after being found guilty by a federal jury on November 3, 2021, of Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country; Use, Carry, Brandish and Discharge of a Firearm During and in Relation to a Crime of Violence; Possession with Intent to Distribute Methamphetamine; and Felon in Possession of a Firearm. Marris was sentenced to an additional 12 months’ imprisonment for Escape from Custody.
The trial evidence showed that on or about November 9, 2020, a deputy with the Okmulgee County Sheriff’s Office attempted to conduct a traffic stop on the defendant for speeding. The defendant failed to comply and accelerated to speeds over 100 miles per hour. Shortly after the pursuit began, the defendant leaned out the driver’s side door, pointed a handgun at the deputy and fired 3-4 shots. The defendant, a convicted felon, was prohibited from possessing a firearm. Within a few minutes, the defendant crashed his car into a ditch and fled on foot. Law enforcement pursued the defendant but was unable to locate him. The following day, officers located and arrested the defendant. During a search of the defendant, officers found four baggies of methamphetamine weighing 49.38 grams.
On November 13, 2021, only ten days after being convicted of the November 2020 offenses, the defendant and another inmate escaped from federal custody at the Okmulgee County Detention Center in Okmulgee. They were apprehended the following day.
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted the November 2020 offenses because the defendant in this case 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 case was the result of an investigation by the Okmulgee County Sheriff’s Office and the Federal Bureau of Investigation.
“The lengthy sentence imposed by the Court is fitting punishment,” said United States Attorney Christopher J. Wilson. “Methamphetamine and firearms are a dangerous combination. Thankfully, the Okmulgee County Deputy was not injured or killed during the attempted stop and pursuit. Marris has been a violent criminal the majority of his adult life and obviously has no respect for the law or law enforcement. Protecting the public and our law enforcement partners from dangerous offenders will continue to be a priority for the United States Attorney’s Office.”
“The FBI focuses its investigative resources on offenders who pose the greatest safety risk to the public, especially those like Marris who show a blatant disregard for the law and for human life,” said FBI Oklahoma City Special Agent in Charge Edward J. Gray. “Thanks to our combined efforts with the Okmulgee County Sheriff’s Office and the U.S. Attorney’s Office, another violent criminal has been removed from our community.”
The Honorable Ronald A. White, U.S. District Judge of the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the sentencing hearing. Marris was remanded to the custody of the United States Marshal to await commitment to a United States Bureau of Prisons facility to serve his non-paroleable sentence of incarceration.
Special Assistant United States Attorney Nathaniel Walters, Assistant United States Attorney Kevin Gross, and Department of Justice Criminal Division Organized Crime and Gang Section Trial Attorney Brian Lynch represented the United States.
Ohkay Owingeh man arraigned for assault with a dangerous weapon in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that Jerry Segura, Jr., 34, an enrolled member of the Pueblo of Ohkay Owingeh, was arraigned in federal court on Feb. 13 on a two-count indictment charging him with assault with a dangerous weapon and using and carrying a firearm during and in relation to a crime of violence. Segura will remain in custody pending trial, which is set for April 17, 2023.
A grand jury indicted Segura on Jan. 25. According to the indictment and other court records, on March 13, 2022, Segura and his father drunkenly drove to Segura’s then-girlfriend’s house. When they arrived at their destination, Segura fired at least 11 gunshots at or near her home from his car. Segura’s girlfriend, her daughter, and the daughter’s three-year-old son were in the home at the time. Segura fired directly at his girlfriend’s daughter when she spotted him through the living-room window. No one was hit by gunfire or otherwise injured.
The alleged assault occurred on the Pueblo of Ohkay Owingeh.
Segura was arrested on Feb. 8 and made an initial appearance in court on Feb. 9.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Segura faces up to 10 years in prison for assault with a dangerous weapon and a minimum of 10 years in prison for discharging a firearm during and in relation to a crime of violence.
The Bureau of Indian Affairs investigated this case with assistance from the Ohkay Owingeh Police Department and Espanola Police Department. Assistant United States Attorney Zachary C. Jones is prosecuting the case.
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23-26
Ocala Convicted Felon Sentenced to More Than 17 Years in Federal Prison for Possessing Firearms and DrugsRead the Press Release
Ocala, FL – Senior United States District Judge Gregory A. Presnell has sentenced Aaron Haa (42, Ocala) to 17 years and 7 months in federal prison for possessing a firearm as a convicted felon, possessing with the intent to distribute methamphetamine, and possessing a firearm in furtherance of a drug trafficking crime. Haa had pleaded guilty on July 13, 2022.
According to information presented in court, on December 9, 2020, Haa was arrested by state authorities after being found with a firearm during a traffic stop. After being released from state custody, Haa was arrested again on January 22, 2021. During that second incident, Haa led police on a high-speed chase on U.S. 441 in Marion County. A deputy had to force Haa’s vehicle to stop when Haa started fleeing into the opposite lanes of traffic. After Haa flipped his vehicle, deputies took him into custody. Deputies found another firearm and 70 grams of methamphetamine in Haa’s vehicle.
Haa has at least 21 prior state felony convictions, including trafficking in a controlled substance, fleeing and eluding, and sale of a controlled substance. Therefore, he is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Sumter County Sheriff’s Office, the Marion County Sheriff’s Office, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Tyrie K. Boyer.
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.
New Orleans Man Sentenced on Drug and Weapons ChargesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that defendant, KEENAN CONLEY, age 25, a resident of Orleans Parish, was sentenced on February 9, 2023 by U.S. District Court Judge Eldon E. Fallon to 92 months imprisonment, 3 years supervised release, and a mandatory $400 special assessment fee on four counts of a five-count indictment. Additionally, Judge Fallon ran the federal sentence consecutive to the defendant’s state sentence in another matter.
In Count 1 of the indictment, CONLEY is charged with possession with the intent to distribute marijuana in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(D). In Counts 3 and 5, CONLEY is charged with being a felon in possession of a firearm in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). Finally, in Count 4, CONLEY is charged with possession with the intent to distribute heroin, cocaine, and marijuana in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(C), and (b)(1)(D).
On January 25, 2021, CONLEY was involved in a shooting in Harvey, LA. Pursuant to the shooting investigation, detectives conducted a search of his vehicle and found narcotics and a firearm. An arrest warrant was issued by Jefferson Parish Sheriff’s Office (JPSO), and CONLEY was subsequently arrested on May 17, 2021. During his arrest on May 17, 2021, JPSO located a firearm in his engine compartment near the battery as well as narcotics in his possession.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U. S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jefferson Parish Sherriff’s Office. The case was prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime Unit of the U.S. Attorney’s Office.
New Laguna woman pleads guilty to assault upon a federal officer in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that on Feb. 10, Lynnette Chavez pleaded guilty to assault upon a federal officer. Chavez, 36, of New Laguna, New Mexico, will remain in custody pending sentencing, which has not been scheduled.
In the plea agreement, Chavez admitted to assaulting a Laguna Police Officer by kicking them multiple times. The assault occurred on the Pueblo of Laguna.
At sentencing, Chavez faces up to two years in prison followed by up to three years of supervised release.
The Bureau of Indian Affairs investigated this case with the assistance of the Laguna Police Department. Assistant United States Attorney Alexander F. Flores is prosecuting the case.
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23-28
Mountain View Man Sentenced to 21 Years for Murder in National ParkRead the Press Release
SPRINGFIELD, Mo. – A Mountain View, Mo., man was sentenced in federal court today for murdering his estranged wife during an argument when they met in a national park.
Dylan J. Hanger, 31, was sentenced by U.S. District Judge M. Douglas Harpool to 21 years and 10 months in federal prison without parole.
On May 10, 2022, Hanger pleaded guilty to one count of murder in the second degree. Hanger admitted that he met his estranged wife, Brittany Gorman, at the Buck Hollow Access Area, along the Jacks Fork River, within the Ozark National Scenic Riverways in Texas County, Mo., on May 20, 2020. An argument ensued, during which Hanger stabbed Gorman several times in the chest, which caused her death.
According to court documents, Hanger began planning to kill his wife (with whom he shared three children ages 5, 7, and 10) in the months leading up to May 2020. When they met at the Buck Hollow Access Area, Hanger stabbed his wife at least four times. He took her body and dumped it in a remote location.
For nine days, Hanger maintained to both Gorman’s family and law enforcement that Gorman was missing and suggested that it was due to her drug connections. He finally admitted what he had done and revealed the location of Gorman’s body on May 30, 2020.
This case was prosecuted by Assistant U.S. Attorney Josephine L. Stockard. It was investigated by the Texas County, Mo., Sheriff’s Department, the National Park Service Investigative Services Branch, and the Missouri State Highway Patrol.
Minnesota Department of Corrections Agrees to End Discrimination Against People with Disabilities in its GED Education ProgramRead the Press Release
The Justice Department announced today that it filed a complaint and proposed consent decree with the U.S. District Court for the District of Minnesota to resolve allegations that the Minnesota Department of Corrections (MNDOC) violates the Americans with Disabilities Act (ADA).
The department previously found that the MNDOC discriminated against incarcerated individuals with disabilities enrolled in its General Educational Development (GED) program by denying individuals with disabilities opportunities to apply for or receive needed modifications on the GED exam, courses or practice tests, such as extended time and frequent breaks. The proposed consent decree will provide damages to harmed individuals and requires the MNDOC to make changes to end this discrimination.
“Prisons and jails have an obligation to meet the needs of people with disabilities. This settlement agreement stands to impact hundreds of incarcerated people with disabilities, opening doors to higher education and other opportunities that have been unjustly closed to them for far too long,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “MNDOC is now firmly on a path to providing accommodations to students with disabilities on standardized exams and preparation courses, actions that will help promote rehabilitation and increase prospects for reentry.”
“We are pleased to reach a resolution with MNDOC that will help ensure incarcerated individuals with disabilities have equal opportunities to benefit from critical education programs in its facilities,” said U.S. Attorney Andrew M. Luger for the District of Minnesota.
The department’s complaint alleges that the MNDOC discriminates against individuals with disabilities in multiple ways: (1) failing to notify them about reasonable modifications for GED courses, practice tests and exams; (2) preventing them from applying for GED exam accommodations and (3) failing to give them reasonable modifications, such as extended time and breaks, in GED courses and on practice tests. Without reasonable modifications, many incarcerated individuals with disabilities repeatedly failed their practice tests or official exams, were denied access to other prison programs, and were released from incarceration without a GED.
Under the terms of the consent decree, which requires court approval, the MNDOC will revise its policies and procedures, train relevant personnel and educate incarcerated individuals on these revised policies and the ADA, hire an agency-wide ADA Compliance Officer and designate facility-level ADA and education coordinators, conduct a corrective action review to determine appropriate relief for currently-incarcerated individuals with disabilities and provide regular reports to the department. The MNDOC will also pay over $70,000 in compensatory damages to aggrieved individuals with disabilities.
The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living and economic self-sufficiency for people with disabilities. For more information on the Civil Rights Division, please visit the ADA website at http://www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. ADA complaints may be filed online at http://www.ada.gov/complaint/.
Michigan Property Manager Pleads Guilty to Money Laundering and Obstructing the IRSRead the Press Release
Michigan man pleaded guilty today to money laundering and obstructing the IRS.
According to court documents and statements made in court, from approximately 2008 through 2017, Matthew D. Adams, of Grosse Point Park, owned a property management company, MDA Property Services. Adams sold illegal narcotics to the president of Company A, who paid for the drugs using Company A’s funds. The buyer paid Adams with checks made out to MDA Property Services, and other entities Adams owned, so that they would appear to be legitimate payments for purported services rendered by Adams. From 2013 through 2017, the buyer paid Adams more than $10 million for illegal narcotics.
Adams deposited some of the checks into his personal and business bank accounts, and cashed the remainder, totaling approximately $5.3 million, at a local liquor store. For tax years 2013 through 2016, Adams caused his tax return preparer to prepare false business and individual tax returns by providing the return preparer solely business bank records, knowing that they did not reflect all of the illicit proceeds. In 2017 and 2018, during an audit of Adams’s business and individual tax returns, Adams falsely told the IRS that all income his business received was deposited into business bank accounts and that 90% percent of the funds MDA Property Services received from Company A through the buyer was for legitimate work, whereas Adams knew only three percent was, in fact, business-related.
During the course of his criminal conduct, Adams withdrew more than $1 million in cash of his illegal narcotics proceeds from business bank accounts and also used funds to acquire real estate. In addition, he spent over $1.25 million on private flights, golfing, jewelry, gambling, court-ordered child support, hotel stays and to purchase a firearm. Adams also bought a Cadillac Escalade, a Hummer and multiple classic cars.
Adams is scheduled to be sentenced on June 21, 2023 and faces a maximum penalty of three years in prison for obstructing the IRS and ten years in prison for money laundering. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Sam Bean and Jeffrey McLellan of the Justice Department’s Tax Division are prosecuting the case.
Michigan Insurance Salesman Convicted of Filing False Tax Returns and Making False Statements in BankruptcyRead the Press Release
A Michigan man was convicted today of filing false tax returns and making false statements to both a bankruptcy court and the Department of Justice.
According to court documents and evidence presented at trial, Donald Stanley LaVigne, formerly of Lake Orion, did not report insurance commissions and other income on tax returns he filed with the IRS for the years 2013 through 2019. In letters he sent to the IRS, LaVigne also falsely claimed that these commissions were not income to him.
When LaVigne filed for bankruptcy in 2018, he did not list the IRS as a creditor on the schedules attached to his bankruptcy petition even though he owed taxes to the IRS for the years 2008 and 2009 and 2013 through 2015. On one document he filed in the bankruptcy case, LaVigne also understated his income for the years 2016 and 2017.
Finally, LaVigne made a false statement to the Department of Justice. After he was notified that he was the target of a federal grand jury investigation, LaVigne sent a letter to the Department of Justice in which he falsely claimed that his bankruptcy attorney had reviewed his 2017 income tax return and advised him that it was “correct and complete.” In fact, his bankruptcy attorney testified that he had never advised LaVigne that his 2017 income tax return was accurate.
Sentencing is scheduled for June 1. LaVigne faces a maximum penalty of three years in prison on each of seven counts of filing false tax returns, five years in prison on each of two counts of making false statements in bankruptcy, and five years in prison for making a false statement to the Department of Justice. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Melissa S. Siskind and Catriona M. Coppler of the Justice Department’s Tax Division are prosecuting the case.
Mexican Man Sentenced to 156 Months for I-80 Traffic Stop Involving 20 Pounds of MethamphetamineRead the Press Release
United States Attorney Steven Russell announced that Jesus Sanchez-Meza, 26, of Mexico, was sentenced in federal court in Lincoln, Nebraska, on February 10, 2023, for Possession with Intent to Distribute Methamphetamine. Senior United States District Judge John M. Gerrard sentenced Sanchez-Meza to 156 months’ imprisonment. He was also ordered to serve five years of supervised release after his release from prison. There is no parole in the federal system.
On February 16, 2022, law enforcement photographed Sanchez-Meza, a U.S. citizen who resided in Mexico, driving a Ford F-150 truck with California license plates crossing the border from Mexico into the United States. On February 18, 2022, law enforcement observed Sanchez-Meza in the same F-150 truck driving too closely to vehicles on Interstate 80 in violation of Nebraska traffic laws. Law enforcement conducted a traffic stop of the truck. Sanchez-Meza gave false information to the officers regarding his travel plans. The truck was then searched by law enforcement, and they located 20 individual one-pound packages of methamphetamine.
This case was investigated by Lancaster County Sheriff’s Office and Homeland Security Investigations.