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23 March 2023
Former Puerto Rico Mayor Convicted of Accepting BribesRead the Press Release
SAN JUAN, Puerto Rico –A federal jury convicted a former mayor of Guaynabo, Puerto Rico, yesterday for engaging in a bribery scheme.
According to court documents and evidence presented at trial, Ángel Pérez-Otero, 52, was involved in a bribery conspiracy in which, from approximately late 2019 through May 2021, he accepted thousands of dollars in cash bribes on a regular basis from the owner of a construction company. In exchange for these payments, Pérez-Otero agreed to obtain and retain contracts for the company and ensured that its invoices were promptly paid.
Pérez-Otero was convicted of conspiracy, federal program bribery, and extortion. He is scheduled to be sentenced on Aug. 8 and faces a maximum penalty of 20 years in prison on the extortion charge and 10 years in prison on the bribery charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico, and Special Agent in Charge Joseph González of the FBI San Juan Field Office made the announcement.
The FBI San Juan Field Office investigated the case.
Trial Attorney Nicholas Cannon of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Myriam Fernández-González for the District of Puerto Rico are prosecuting the case. Trial Attorney Ryan R. Crosswell of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Scott H. Anderson for the District of Puerto Rico assisted in the investigation.
This case is part of the Justice Department’s ongoing efforts to combat public corruption by municipal officials in Puerto Rico. In addition to the above matter, the Public Integrity Section and the U.S. Attorney’s Office for the District of Puerto Rico have recently obtained convictions against other former public officials and contractors in the District of Puerto Rico for soliciting and accepting bribes related to municipal contracts.
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Former Puerto Rico Mayor Convicted of Accepting BribesRead the Press Release
A federal jury convicted a former mayor of Guaynabo, Puerto Rico, yesterday for engaging in a bribery scheme.
According to court documents and evidence presented at trial, Ángel Pérez-Otero, 52, was involved in a bribery conspiracy in which, from approximately late 2019 through May 2021, he accepted thousands of dollars in cash bribes on a regular basis from the owner of a construction company. In exchange for these payments, Pérez-Otero agreed to obtain and retain contracts for the company and ensured that its invoices were promptly paid.
Pérez-Otero was convicted of conspiracy, federal program bribery, and extortion. He is scheduled to be sentenced on Aug. 8 and faces a maximum penalty of 20 years in prison on the extortion charge and 10 years in prison on the bribery charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico, and Special Agent in Charge Joseph González of the FBI San Juan Field Office made the announcement.
The FBI San Juan Field Office investigated the case.
Trial Attorney Nicholas Cannon of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Myriam Fernández-González for the District of Puerto Rico are prosecuting the case. Trial Attorney Ryan R. Crosswell of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Scott H. Anderson for the District of Puerto Rico assisted in the investigation.
This case is part of the Justice Department’s ongoing efforts to combat public corruption by municipal officials in Puerto Rico. In addition to the above matter, the Public Integrity Section and the U.S. Attorney’s Office for the District of Puerto Rico have recently obtained convictions against other former public officials and contractors in the District of Puerto Rico for soliciting and accepting bribes related to municipal contracts.
Former Oklahoma Jail Officer Pleads Guilty to Civil Rights ViolationRead the Press Release
A former detention officer with the McClain County Jail in Purcell, Oklahoma, pleaded guilty to being deliberately indifferent to a substantial risk of serious harm to a pretrial detainee’s physical safety, thereby violating the pretrial detainee’s constitutional civil rights.
According to court documents and admissions, on April 21, 2019, Kyle Tecumseh, 25, was involved with moving a pretrial detainee, B.B., into a jail cell with a senior United Aryan Brotherhood (UAB) gang member whom Tecumseh knew was angry at and posed a danger to B.B. Thereafter, Tecumseh allowed another detention officer to move several more UAB gang members into the cell with B.B. and the senior UAB gang member. The UAB gang members then physically attacked B.B., as Tecumseh knew was likely to occur.
“As a detention officer, this defendant had a duty to ensure that the civil rights of pretrial detainees under his care and custody were protected,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Instead, the defendant abused his power and authority by allowing a pretrial detainee to be put in a situation where he faced a substantial risk of physical harm. The defendant is now being held accountable for his actions, and the Justice Department will continue to ensure that corrections officials are held responsible when they violate the civil rights of detainees and inmates under their care, custody and control.”
“Criminal conduct by any detention staff member erodes public trust and unfairly compromises the reputation of all corrections officials who honorably serve,” said U.S. Attorney Robert J. Troester for the Western District of Oklahoma. “Today’s guilty plea demonstrates our continuing commitment to protect all Oklahomans, including those in custody. I commend the prosecutors and law enforcement officials for their efforts here.”
“There is never a reason for a detention officer to resort to violating an inmate’s civil rights. The FBI understands that working in a correctional institution is stressful and dangerous work, and the vast majority of the men and women working in these institutions do their jobs honorably on a daily basis,” said Special Agent in Charge Edward J. Gray of the FBI Oklahoma City Field Office. “When an officer violates the rights of detainees in their care, it erodes public trust in these important positions and damages the reputation of the hard-working officers who continue to serve.”
Tecumseh faces a maximum sentence of 12 months imprisonment and a $100,000 fine. In addition, according to court documents, Tecumseh agreed to never again seek employment in any law enforcement capacity and to pay the victim any owed restitution. A sentencing date will be set by the court in approximately 90 days.
The Oklahoma City FBI Field Office investigated the case.
Assistant U.S. Attorney Julia E. Barry for the Western District of Oklahoma and Trial Attorney Laura Gilson of the Civil Rights Division’s Criminal Section are prosecuting the case.
Former Oklahoma Jail Officer Pleads Guilty to Civil Rights ViolationRead the Press Release
OKLAHOMA CITY – A former detention officer with the McClain County Jail in Purcell, Oklahoma, pleaded guilty to being deliberately indifferent to a substantial risk of serious harm to a pretrial detainee’s physical safety, thereby violating the pretrial detainee’s constitutional civil rights.
According to court documents and admissions, on April 21, 2019, Kyle Tecumseh, 25, was involved with moving a pretrial detainee, B.B., into a jail cell with a senior United Aryan Brotherhood (UAB) gang member whom Tecumseh knew was angry at and posed a danger to B.B. Thereafter, Tecumseh allowed another detention officer to move several more UAB gang members into the cell with B.B. and the senior UAB gang member. The UAB gang members then physically attacked B.B., as Tecumseh knew was likely to occur.
"As a detention officer, this defendant had a duty to ensure that the civil rights of pretrial detainees under his care and custody were protected," said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. "Instead, the defendant abused his power and authority by allowing a pre-trial detainee to be put in a situation where he faced a substantial risk of physical harm. The defendant is now being held accountable for his actions, and the Justice Department will continue to ensure that corrections officials are held responsible when they violate the civil rights of detainees and inmates under their care, custody and control."
"Criminal conduct by any detention staff member erodes public trust and unfairly compromises the reputation of all corrections officials who honorably serve," said U.S. Attorney Robert J. Troester for the Western District of Oklahoma. "Today’s guilty plea demonstrates our continuing commitment to protect all Oklahomans, including those in custody. I commend the prosecutors and law enforcement officials for their efforts here."
"There is never a reason for a detention officer to resort to violating an inmate’s civil rights. The FBI understands that working in a correctional institution is stressful and dangerous work, and the vast majority of the men and women working in these institutions do their jobs honorably on a daily basis," said Special Agent in Charge Edward J. Gray of the FBI Oklahoma City Field Office. "When an officer violates the rights of detainees in their care, it erodes public trust in these important positions and damages the reputation of the hard-working officers who continue to serve."
Tecumseh faces a maximum sentence of 12 months imprisonment and a $100,000 fine. In addition, according to court documents, Tecumseh agreed to never again seek employment in any law enforcement capacity and to pay the victim any owed restitution. A sentencing will be set by the court in approximately 90 days.
The Oklahoma City FBI Field Office investigated the case. Assistant U.S. Attorney Julia E. Barry for the Western District of Oklahoma and Trial Attorney Laura Gilson of the Civil Rights Division’s Criminal Section are prosecuting the case.
Reference is made to public filings for additional information.
Former Florida Resident Charged in $101 Million Health Care Kickback SchemeRead the Press Release
NEWARK, N.J. – A former Florida resident living in Puerto Rico has been charged for his role in a $101 million durable medical equipment kickback scheme, Attorney for the United States Vikas Khanna announced today.
Raheel Naviwala, 34, of San Juan, Puerto Rico, is charged by complaint with conspiracy to violate the federal Anti-Kickback Statute. Naviwala had his initial appearance today before U.S. Magistrate Judge Patrick Hunt in Ft. Lauderdale, Florida, federal court and was released on $150,000 bond.
According to documents filed in the case and statements made in court:
Naviwala and his conspirators owned and operated multiple call centers through which they obtained doctors’ orders for durable medical equipment (DME), namely orthotic braces, for Medicare beneficiaries, without regard to medical necessity. Naviwala and his conspirators obtained the DME orders through the use of marketing call centers and telemedicine companies. Naviwala and his conspirators provided these orders in exchange for bribes from certain companies that provided the braces to Medicare beneficiaries. Naviwala and his conspirators caused losses to Medicare of $101 million.
The charge of conspiracy to violate the federal Anti-Kickback Statute is punishable by a maximum potential penalty of five years in prison and a fine of $250,000, or twice the gross profit or loss caused by the offense, whichever is greatest.
Attorney for the United States Khanna credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark and Acting Special Agent in Charge is Maged Behnam in Miami, Florida; the Department of Health and Human Services-Office of Inspector General, under the direction of Acting Special Agent in Charge Naomi Gruchacz; the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Patrick J. Hegarty; and the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorneys Sean M. Sherman and Ray Mateo of the Opioid Abuse Prevention & Enforcement Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
naviwala.complaint.pdfFormer Financial Representative Is Sentenced to Seven Years in Prison for $1.1 Million Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – Sampson Pearson, 45, of Charlotte, was sentenced today to seven years in prison followed by two years of supervised release for defrauding his clients of more than a million dollars, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. A federal jury previously convicted Pearson of wire fraud, tax fraud, and aggravated identity theft.
Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS), which oversees Charlotte, and Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI), join U.S. Attorney King in making today’s announcement.
According to filed court documents, trial evidence, and witness testimony, from 2004 to 2016, Pearson was a representative for a financial services firm identified in court documents as Company A. In that capacity, Pearson offered and sold life insurance products and annuities as an independent contractor for Company A in Charlotte. As trial evidence established, Pearson used his position to defraud at least 10 victims and Company A of more than $1.1 million through a fraudulent loan and disbursement scheme. Pearson executed the scheme by submitting falsified loan applications and requests for disbursements in the victims’ names without their knowledge and approval. Company A authorized the loans and disbursements based on the fraudulent documents submitted by Pearson. Pearson also directed Company A to deposit the fraudulently-obtained funds into an account controlled by the defendant. Pearson used the funds to pay for personal expenses and to fund his lifestyle. Evidence at trial showed that more than half of all the money the defendant had deposited into his bank account between 2011 and 2016 was money he stole from his victims. Evidence also established that Pearson made Ponzi-type payments to some of his victims to further perpetuate his fraud.
According to court records, Pearson also committed tax fraud for tax years 2013 through 2016, by filing fraudulent tax returns with the IRS that did not reflect the additional personal income.
At today’s sentencing hearing, U.S. District Judge Max O. Cogburn Jr. noted that “deterrence is very important in financial cases.”
In making today’s announcement U.S. Attorney King thanked USPIS and IRS-CI for their investigation of the case.
Assistant U.S. Attorneys Cassye Cole, Graham Billings and Maria Vento handled the prosecution.
Former City Honors Teacher Sentenced to Serve 14 Years in Prison on Child Pornography ChargesRead the Press Release
BUFFALO, N.Y. — U.S. Attorney Trini E. Ross announced today that Peter Hingston, 63, of Amherst, NY, who was convicted of two counts of possession of child pornography, was sentenced to serve 168 months in prison and 15 years supervised release by Chief U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Michael DiGiacomo, who handled the case, stated that on June 17, 2019, Buffalo Police Officers were called to City Honors School, where Hingston worked as a middle school technology teacher, based on allegations that Hingston was taking inappropriate photographs of female students with a GoPro camera. Officers secured the GoPro digital camera from Hingston. A subsequent search of the camera resulted in the recovery of child pornography videos produced by Hingston, involving minor victims who were under his custody, care, and supervisory control when the sexually explicit images were produced. Investigators also searched an external hard drive possessed by Hingston, which contained additional videos of child pornography produced by Hingston, involving different minor victims, who were also was under his custody, care, and supervisory control.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, Buffalo Office, under the direction of Special Agent-in-Charge Matthew Miraglia, the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia, and the Town of Tonawanda Police Department, under the direction of Chief James P. Stauffiger.
Florida Man Sentenced to Six Years for Transporting Narcotics on a Memphis Bound AirplaneRead the Press Release
Memphis, TN – Rashid James-Wooten, 29, formerly of Florida, has been sentenced to 72 months in federal prison for possession with intent to distribute fentanyl. United States Attorney Kevin R.
Ritz announced the sentence today.According to United States Attorney Ritz and information presented in court, on September 8, 2021, detectives with the Memphis Police Department’s Organized Crime Unit received information that narcotics were possibly on a flight from Los Angeles to Memphis. Investigators used a drug-sniffing dog, which gave a positive alert on a suitcase that was owned by Rashid James-Wooten.
A search of the suitcase revealed 996 grams of fentanyl, 4,472 grams of methamphetamine, and 1,220 grams of marijuana. James-Wooten was placed into custody after inquiring at baggage claim about his lost luggage.
James-Wooten pled guilty to the offense.
United States District Judge John T. Fowlkes Jr., sentenced James-Wooten to six years’ imprisonment, to be followed by three years of supervised release. There is no parole in the federal system.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task
Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking organizations and organized criminal enterprises, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.This case was investigated by the Memphis Police Department Organized Crime Unit, the Drug
Enforcement Administration, Memphis Airport Police, and United States Customs and Border Protection.United States Attorney Kevin Ritz thanked Assistant United States Attorney Michelle Kimbril-Parks, who prosecuted this case, as well as the law enforcement partners who investigated the case.
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For more information, please contact Public Information Officer Cherri Green at (901) 544-4231 or [email protected]. Follow @WDTNNews on Twitter for office news and updates.Financial Advisor, Financial Planner, NBA Agent, and Previously Convicted Fraudster Charged with Schemes to Defraud Professional Basketball PlayersRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of a six-count Indictment charging DARRYL COHEN, BRIAN GILDER, CHARLES BRISCOE, and CALVIN DARDEN, JR. in connection with two schemes to defraud professional basketball players. COHEN and GILDER were arrested this morning in, respectively, Chatsworth, California, and North Ridge, California, and will be presented later today in the United States District Court for the Central District of California. BRISCOE was arrested this morning in Katy, Texas, and will be presented later today in the United States District Court for the Southern District of Texas. DARDEN, JR. was arrested this morning in Atlanta, Georgia, and will be presented later today in the United States District Court for the Northern District of Georgia.
U.S. Attorney Damian Williams said: “As alleged in the indictment, these defendants believed that defrauding their professional athlete clients of millions of dollars would be a layup. That was a huge mistake, and they now face serious criminal charges for their alleged crimes.”
FBI Assistant Director Michael J. Driscoll said: “As alleged, the defendants engaged in schemes to defraud four professional basketball players of more than $13 million. Today’s actions should serve as an example to others who engage in criminal activity to serve their own greedy financial desires at the expense of others – the FBI is committed to bringing you to justice.”
As alleged in the Indictment:[1]
COHEN and GILDER
From at least in or about 2017 through in or about 2020, COHEN, a registered investment adviser, orchestrated a scheme to defraud three different professional basketball player clients (“Athlete-1,” “Athlete-2,” and “Athlete-3,” respectively) of a total of over $5 million by taking advantage of his advisory and fiduciary relationships with those clients. COHEN conspired with BRIAN GILDER, an independent financial planner whom COHEN encouraged his clients to work with and who assisted in tax preparation for Athletes-1, -2, and -3.
First, COHEN and GILDER fraudulently induced Athletes-1, -2, and -3 to purchase viatical life insurance policies at massive markups. COHEN and GILDER did not disclose that GILDER had arranged for a purported law firm (“Law Firm-1”) that he controlled to purchase the polices and then to sell them to the athletes at markups of 222%, 310%, and 244%, respectively. Indeed, Law Firm-1 made approximately $4.5 million in profit from the sale of the policies to COHEN and GILDER’s athlete clients. COHEN and GILDER used a substantial portion of these illicit proceeds to pay their own personal expenses. In particular: (i) GILDER used approximately $257,479 of the funds to pay off a mortgage he owed; (ii) COHEN used approximately $178,462 of the funds to renovate his home and to perform work on his pool; (iii) COHEN used approximately $67,500 of the funds to pay off his personal credit card bill; and (iv) COHEN transferred approximately $200,000 of the funds to an individual with whom he was in a romantic relationship.
Second, COHEN directed that $500,000 be transferred from the accounts of Athletes-2 and -3 as purported donations to a non-profit organization. COHEN then used approximately $238,000 of the funds purportedly donated to the non-profit to build athletic training facilities in the backyard of his home. Athletes-2 and -3 never, in fact, authorized any transfers of their funds to the non-profit organization. When Athlete-2 confronted COHEN about the donations, COHEN told Athlete-2 in a text message, in substance and in part, that Athlete-2’s money had “[h]elped a lot of future prospects and a lot of underprivileged kids.” COHEN did not disclose to Athlete-2 that a substantial portion of Athlete-2’s donations had, in fact, been used to build an athletic training facility in COHEN’s backyard.
Third, COHEN and GILDER used a sports agency and another law firm to channel approximately $328,125 of Athlete-2’s money to repay a former professional baseball player (“Athlete-4”), who was a disgruntled client of COHEN’s. Athlete-4 had expressed concern to COHEN about investments and loans that COHEN made on Athlete‑4’s behalf and demanded to be repaid. On or about February 19, 2020, in the midst of making the payments of Athlete-2’s money to Athlete-4, COHEN messaged GILDER, “We gotta send [Athlete-4] more to get rid of him.” Athlete-2 did not authorize the use of funds from his account to repay debts owed by COHEN to Athlete-4.
BRISCOE and DARDEN, JR.
BRISCOE and DARDEN, JR. also defrauded professional basketball players. BRISCOE was an NBA agent, and DARDEN, JR. had previously pled guilty to wire fraud in the Southern District of New York.
BRISCOE served as the sports agent of a professional basketball player (“Athlete-5”). Athlete-5 began discussing the possibility of purchasing a professional women’s basketball team (“Team-1”), and BRISCOE introduced Athlete-5 to DARDEN, JR. Because Athlete-5 was not permitted to purchase Team-1 as an active professional basketball league player, BRISCOE, DARDEN, JR., and a relative of DARDEN, JR., who serves or has served on the boards of multiple public companies (“Relative-1”), discussed with Athlete-5 an arrangement in which Athlete-5 would indirectly purchase Team-1 through a company (“Company-1”) purportedly controlled by Relative-1. BRISCOE provided Athlete-5 with a slide deck outlining a “vision plan” for the purchase of Team-1 by Company-1. The “vision plan” claimed, among other things, that Company-1 was led by Relative-1 and was advised by a board including several prominent individuals in sports, entertainment, and corporate America. In truth and in fact, and as BRISCOE and DARDEN, JR. well knew, at least two of those individuals never served as advisors to Company-1.
Between in or about November 2020 and in or about December 2020, Athlete‑5 caused $7 million to be transferred to a bank account controlled by DARDEN, JR. Athlete-5 understood that these payments were in order for Athlete-5 to purchase and become full owner of Team-1. In truth and in fact, none of the money Athlete-5 sent went toward the purchase of Team-1, and Athete-5 did not become an owner of Team-1. Instead, from approximately November 2020 until approximately December 2021, DARDEN, JR. transferred more than $1 million of the funds to BRISCOE. In addition, DARDEN, JR. retained a substantial portion of the funds for himself and his relatives, sending more than $500,000 to a relative and more than $400,000 to a cryptocurrency exchange for his benefit. DARDEN, JR. also used some of the funds to pay for luxury goods for himself, including approximately $880,000 to luxury car companies, more than $300,000 to art galleries, and more than $100,000 to purchase a piano, among other things. DARDEN, JR. also spent in excess of approximately $1 million in connection with purchasing and making improvements to a residence, including, among other things, the addition of a koi pond.
BRISCOE and DARDEN, JR. also worked together to defraud Athlete-2. BRISCOE, in consultation with COHEN and GILDER, was purportedly building a new sports agency (“Agency-1”) funded by Athlete-2. BRISCOE convinced Athlete-2 that BRISCOE had signed, through Agency-1, a highly touted athlete preparing for a professional basketball draft (“Athlete-6”). In fact, Athlete-6 had not signed with BRISCOE or Agency-1. Rather, BRISCOE forged the signature of Athlete-6 and Athlete-6’s mother on a player-agent contract and sent that forged contract to Athlete-2. BRISCOE then directed Athlete-2 to transfer $1 million to BRISCOE as a “loan” to Athlete-6 while Athlete-6 prepared for the draft. In fact, Athlete-6 never had any conversations with BRISCOE or DARDEN, JR. about signing with BRISCOE or about receiving a $1 million loan, and Athlete-6 never received any part of the $1 million loan. Instead, BRISCOE used approximately $306,642 of the funds transferred by Athlete-2 to pay off a debt that BRISCOE had personally incurred and also transferred approximately $544,000 to a bank account controlled by DARDEN, JR.
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COHEN, 49, of Chatsworth, California, and Las Vegas, Nevada, GILDER, 49, of North Ridge, California, BRISCOE, 35, of Katy, Texas, and DARDEN, JR. 49, of Atlanta, Georgia, are each charged with one count of conspiracy to commit wire fraud and one count of wire fraud. Each count carries a maximum sentence of 20 years in prison. COHEN is also charged with one count of investment advisor fraud, which carries a maximum sentence of five years in prison, and BRISCOE is also charged with one count of aggravated identity theft, which carries a mandatory prison term of two years.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the outstanding work of the FBI. Mr. Williams also thanked the United States Attorney’s Offices for the Central District of California, the Northern District of Georgia, and the Southern District of Texas for their assistance in the investigation. Mr. Williams further thanked the U.S. Securities and Exchange Commission, which today filed a parallel civil action against COHEN, for its assistance and cooperation in this investigation.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Katherine Reilly and Kevin Mead are in charge of the prosecution.
The charges contained in 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 Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described therein should be treated as an allegation.
Federal Jury Convicts Charleston Man of Fentanyl and Gun CrimesRead the Press Release
CHARLESTON, W.Va. – After three days of trial, a federal jury convicted Andre Dewayne Williamson, also known as “A3,” 35, of Charleston, of five counts of distribution of fentanyl and one count of possession of a firearm in furtherance of a drug trafficking crime.
Evidence at trial proved that Williamson sold quantities of fentanyl to a confidential informant on five occasions in Charleston between July 5, 2022, and July 25, 2022. Williamson possessed a pistol in furtherance of the July 5, 2022, drug transaction.
Williamson is scheduled to be sentenced on June 28, 2023, and faces a mandatory minimum of five years and up to life in prison.
“This defendant has a troubling criminal history involving violence and drugs, and the crimes in this case show that he continued to pose a threat to the community,” said United States Attorney Will Thompson. “I commend the law enforcement agencies that investigated and assisted in this case. I also commend Assistant United States Attorneys Julie White and Joshua Hanks and the trial team for securing guilty verdicts on all six counts against the defendant.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Metropolitan Drug Enforcement Network Team (MDENT) and the Charleston Police Department conducted the investigation, with assistance provided by the Drug Enforcement Administration (DEA) Mid-Atlantic Laboratory.
Senior United States District Judge John T. Copenhaver, Jr. presided over the jury trial.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-154.
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Federal Grand Jury B Indictments Announced- March 2023Read the Press Release
United States Attorney Clint Johnson today announced the results of the March 2023 Federal Grand Jury B.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Tyuane Lamontco Barnes. First Degree Felony Murder in Indian Country; Robbery in Indian Country; Conspiracy; Causing Death by Using and Discharging a Firearm During and in Relation to a Crime of Violence. Barnes, 22, of Tulsa, allegedly conspired with others to rob the minor victim of his firearm, resulting in the victim’s murder on Jan 24, 2023. The FBI and Broken Arrow Police Department are the investigative agencies. Assistant U.S. Attorneys Nathan E. Michel and Aaron M. Jolly are prosecuting the case.
Finnegan Roarke Cutter. Bank Robbery (Charged by Information). Cutter, 21, of Tulsa, is charged with using force and intimidation to rob Truity Credit Union in Bartlesville on Feb. 24, 2023. The FBI and Bartlesville Police Department are the investigative agencies. Assistant U.S. Attorney Ryan M. Roberts is prosecuting the case.
Osvaldo Bravo-Roblero. Unlawful Reentry of a Removed Alien. Bravo-Roblero, 34, a Mexican national, is charged with unlawfully reentering the United States after having been removed on Nov. 28, 2018, at or near Hidalgo, Texas. U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations is the investigative agency. Assistant U.S. Attorney William Rubens is prosecuting the case.
Ty Warren Copeland. First Degree Burglary in Indian Country. Copeland, 30, of Tulsa, is charged with breaking into a residence while it was occupied on Feb. 28, 2023. The FBI and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Chantelle D. Dial is prosecuting the case.
Ismael Borrayo Esparza; Jesus Ricardo Ornelas Virgen. Drug Conspiracy; Possession of Fentanyl with Intent to Distribute; Possession of Methamphetamine with Intent to Distribute; Possession of Heroin with Intent to Distribute; Maintaining a Drug-Involved Premises. Borrayo, 34, and Ornelas, 33, both of Tulsa, are alleged to have conspired together to distribute and to possess with intent to distribute 400 grams or more of fentanyl; 500 grams or more of methamphetamine; and 100 grams or more of heroin. The two are also charged with maintaining a residence to store and distribute the methamphetamine. The Drug Enforcement Administration, Tulsa Police Department and Oklahoma Highway Patrol are the investigative agencies. Assistant U.S. Attorney Shakema M. Onias is prosecuting the case.
Ethan Cord Melson. Assault of an Intimate/Dating Partner by Strangling and Attempting to Strangle in Indian Country. Melson, 26, of Stroud, is charged with assaulting an intimate partner by strangling her on Jan. 20, 2020. The FBI is the investigative agency. Assistant U.S. Attorney Chantelle D. Dial is prosecuting the case.
Josue Ramirez-Yanez. Unlawful Reentry of a Removed Alien. Ramirez-Yanez, 37, a Mexican national, is charged with unlawfully reentering the United States after having been removed on Nov. 22, 2011, at or near Laredo, Texas. U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations is the investigative agency. Assistant U.S. Attorney William Rubens is prosecuting the case.
Joel Alberto Rodriguez-Garcia. Unlawful Reentry of a Removed Alien. Rodriguez-Garcia, 30, a Mexican national, is charged with unlawfully reentering the United States after having been removed on Aug. 6, 2020, at or near Laredo, Texas. U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations is the investigative agency. Assistant U.S. Attorney William Rubens is prosecuting the case.
Ramon Silva-Rodriguez. Possession of Fentanyl with Intent to Distribute. Silva-Rodriguez, 25, a Mexican national, is charged with possessing with intent to distribute 40 grams or more of fentanyl. The Drug Enforcement Administration, Oklahoma Bureau of Narcotics, and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Aaron M. Jolly is prosecuting the case.
Ray Alexander Villalba; Elijah Paul Titone. Conspiracy (Count 1); Kidnapping (Count 2); Carrying, Using, and Brandishing a Firearm During and in Relation to a Crime of Violence (Counts 3, 5, 7, 9, 11); Carjacking (Count 4); Obstructing, Delaying, and Affecting Commerce by Robbery (Counts 6, 10); Obstruction of Justice by Threatening Physical Force Against a Witness (Count 8). Villalba, 21, of Goodyear, Arizona, Titone, 24, of Muskogee, and others allegedly devised a plan where they would use dating apps and cell phones to lure potential victims to discrete locations under the guise of romantic encounters then threaten and kidnap victims in order to take their vehicle and property. Specifically, in early December 2022, the two men allegedly used Grindr to lure one man to a remote location then restrained and kidnapped him. They tied the victim up and forced him into the back seat of his car. Villalba drove the victim’s vehicle while Titone allegedly sat in the back with the victim while pointing a firearm at him. Titone showed the victim decapitation videos and Villalba told him that Titone was a member of a cartel that would kill the man if he did not comply. The two then drove the man to an ATM machine and forced him to provide his pin number to obtain money. They also forced him to unlock his phone so they could download Cashapp and transfer money. They once again threatened to kill the man if he called the police then left him on the side of the rode, driving off with his vehicle and wallet. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Tulsa Police Department and Broken Arrow Police Department are the investigative agencies. Assistant U.S. Attorneys Kenneth Elmore and John E. Brasher are prosecuting the case.
Edwar Rosario Villalobos-Quintanilla. Distribution of Fentanyl; Conspiracy to Distribute and Possess with Intent to Distribute Fentanyl. Villalobos-Quintanilla, 28, is charged with distributing fentanyl and with conspiring with others to distribute and possess with intent to distribute fentanyl. The Drug Enforcement Administration and Oklahoma Bureau of Narcotics are the investigative agencies. Assistant U.S. Attorney Brandon A. Skates is prosecuting the case.
Ecuadorian National Sentenced to Prison for Participating in Tax Refund Fraud SchemeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut; announced that EDWIN F. GUTIERREZ, 45, a citizen of Ecuador residing in East Haven, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to six months of imprisonment, followed by two years of supervised release, for participating in a tax refund fraud scheme.
According to court documents and statements made in court, from approximately May 2013 to April 2017, Gutierrez and several other Ecuadoran nationals participated in a scheme to illegally obtain tax refunds from the IRS. In order to obtain the refunds, some of Gutierrez’s co-defendants filed fraudulent federal tax returns, in the names of other foreign nationals (“claimants”), with the IRS. The fraudulent tax returns stated that the claimants resided in the U.S., earned wages from companies in the U.S., and had federal income tax withheld from the claimants’ wages. In truth, the claimants never worked for or earned income from those companies. In addition, U.S. Customs and Border Protection have no records of the claimants even being present in the U.S. during the tax years for which the returns were filed. Based on these false tax returns, the IRS issued tax refunds, which were then deposited into bank accounts that were controlled by Gutierrez and some of his co-defendants.
Through this scheme, Gutierrez and his associates obtained 142 tax refunds, totaling approximately $435,500. Gutierrez personally deposited 69 of those refunds, totaling approximately $215,460, into his own bank accounts. Gutierrez and his associates spent some of the proceeds for their personal use, and they wired some of the proceeds to relatives in Ecuador.
Judge Arterton ordered Gutierrez to pay restitution of $215,460.
Gutierrez, who is released on bond, is required to report to prison on May 10.
On July 16, 2021, Gutierrez and three others with were arrested on an indictment charging them with various offenses stemming from this scheme. On October 12, 2022, Gutierrez pleaded guilty to theft of public money. Gutierrez’s co-defendants pleaded guilty to related charges.
This matter has been investigated by the Internal Revenue Service – Criminal Investigation Division, Homeland Security Investigations (HSI) and the U.S. Postal Inspection Service, with the assistance of U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations.
The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
Dunmore Business Owner Sentenced to Three Months in Prison for Failure to Pay Employment TaxesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that John Worobey, age 53, of Abington Township, Pennsylvania, was sentenced to three months in prison to be followed by two years of supervised release by United States District Court Judge Robert D. Mariani for failure to pay employment taxes.
Worobey owned and operated Prime Electric, Inc., an electrical contracting business in Dunmore, Pennsylvania. Between 2016 and 2019, Worobey collected $264,644 of federal employment taxes from his employees as he was required to by law but did not turn those employment taxes over to the IRS.
In June 2022, Worobey pleaded guilty to failing to pay employment taxes. At his guilty plea, he agreed to pay the IRS $244,644 in restitution owed. Before sentencing, Worobey paid all of the restitution to the government.
The case was investigated by the U.S. Internal Revenue Service, Criminal Investigation. Assistant U.S. Attorney Michael A. Consiglio prosecuted the case.
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Dripping Springs Woman Sentenced for Defrauding VA, SSA of more than $500KRead the Press Release
SAN ANTONIO – A Dripping Springs woman was sentenced in a federal court in San Antonio today to 46 months in prison and ordered to pay $501,709.54 in restitution for defrauding the Department of Veterans Affairs (VA) and the Social Security Administration (SSA) of more than $500,000.
According to court documents, Josephine Casandra Perez-Gorda, 40, defrauded the VA and SSA by overstating the severity and extent of her spouse’s disability from October 2011 through August 2017. Mr. Perez-Gorda, now deceased, was an Army veteran who participated in the fraud. The couple claimed Mr. Perez-Gorda was paralyzed from the waist down from an injury he suffered while on active duty. The ruse included applying for and receiving a specially equipped vehicle, a specially adapted home and additional compensation based on his disability rating.
The investigation began after San Antonio news station, KENS5, aired a story titled, “Homes for Our Troops Questions Veteran’s Paralysis after Video.” The story involved a specially adapted house in Dripping Springs that was gifted to the Perez-Gordas in December 2013 by the non-profit foundation Homes for Our Troops. Although Mrs. Perez-Gorda claimed her husband was “paralyzed from the belly button down,” Mr. Perez-Gorda was seen walking around the neighborhood and playing basketball. VA Office of Inspector General (OIG) agents videotaped Mr. Perez-Gorda walking around without assistance. Mrs. Perez-Gorda furthered the scheme by completing all the VA and SSA paperwork claiming Mr. Perez-Gorda was paralyzed in both legs.
On Sept. 27, 2022, Mrs. Perez-Gorda was found guilty of 11 counts of wire fraud; one count of mail fraud; one count of health care fraud; three counts of false statements related to a health care matter; one count of conspiracy to commit health care fraud; and one count of theft of government funds. In addition to the imprisonment and restitution, Perez-Gorda is responsible for a $100 special assessment on each of the 18 counts and $100,000 for trial expenses.
“As the U.S. Attorney’s Office, we will pursue individuals that defraud and steal from integral benefit programs like those designed by the Veteran’s Administration and the Social Security Administration,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “These programs are crucial to our disabled veterans and other disabled Americans who truly depend on their assistance, and they must be protected.”
“Fraudulently obtaining benefits from VA diverts valuable resources intended for the care of deserving veterans,” said Deputy Assistant Inspector General for Investigations Carl Scott of the Department of Veterans Affairs Office of Inspector General’s Office of Investigations. “The VA OIG is grateful to the U.S. Attorney’s Office and the Social Security Administration OIG for their efforts in this joint investigation.”
“A jury found Josephine Perez-Gorda guilty as a co-conspirator in a scheme that defrauded the Social Security Administration and the U.S. Veterans Administration of more than $500,000 and services intended to assist persons with disabilities. This sentence now holds her accountable for her criminal actions,” said Gail S. Ennis, Inspector General for the SSA. “I appreciate the VA Office of the Inspector General for their work in this joint investigation and the U.S. Attorney’s Office for prosecuting this case.”
The VA-OIG and SSA-OIG investigated the case.
Assistant U.S. Attorney Greg Surovic and Special Assistant U.S. Attorney Tiffany Miller prosecuted the case.
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Cruise Ship Employee Sentenced to 188 Months in Prison for Distribution of Child Sexual Abuse MaterialRead the Press Release
MIAMI – Angelo Victor Fernandes, a 34-year-old cruise ship employee from Goa, India, was sentenced in federal district court to 188 months in prison for distributing child sexual abuse material.
Between January 16 and April 30, 2022, Fernandes sent 13 child pornography videos through an instant messaging application to Daniel Scott Crow. Fernandes also communicated with Crow about arranging for Crow to travel to engage in sexual activity with minor children. During a separate communication with an unidentified person, Fernandes talked about sexual abuse of minor children and his ability to obtain children for sex.
Crow pled guilty to one count of enticement of a minor and one count of production of child pornography in case number 22-cr-14035. He was sentenced on December 12, 2022, to 30 years in prison.
United States Attorney Markenzy Lapointe for the Southern District of Florida and acting Special Agent in Charge Michael E. Buckley, Homeland Security Investigations (HSI), Miami, announced the sentence.
HSI Fort Pierce Office investigated the case. Assistant United States Attorney Christopher Hudock prosecuted it.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
If you have information regarding this case, or you believe you or a family member may have been a victim, please contact the HSI tip line at 1-866-347-2423.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 22-cr-14046.
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Couple Sentenced for Failure to Pay Withheld Payroll TaxesRead the Press Release
United States Attorney Steven Russell announced that William H. White, 55, and Sarah A. White, 40, husband and wife, formerly of Roca, Nebraska, were sentenced on March 21, 2023, by the Senior United States District Judge John M. Gerrard for Failure to Pay Over Employment Tax that had been withheld from employees’ paychecks. William White was sentenced to one year and one day imprisonment, to be followed by three years of supervised release. Sarah White was sentenced to three years of probation and a fine of $10,000. Each was ordered to pay $426,047.75 restitution but was credited for payments they had made previously totaling that same amount.
William and Sarah White owned two businesses that operated in tandem -- B&B Midwest Trucking (B&B) and 419, LLC (419). During portions of 2015 to 2018, B&B and 419 withheld federal income taxes and FICA taxes (Social Security and Medicare) from employees’ paychecks but failed to account for those taxes on time and to pay them over to the Internal Revenue Service. The withheld employee payroll taxes totaled $144,220.31 for B&B, and $281,827.44 for 419. Each business had sufficient funds available to pay the payroll taxes when due. William and Sarah White were aware of the obligation to account for and pay the payroll taxes and were responsible to pay them, but instead used the funds withheld from employees’ paychecks to pay other business creditors and to pay for personal expenses. The businesses had further failed to pay over the employer’s share of payroll taxes to the IRS, but the Whites paid those amounts as well prior to sentencing.
“Business owners have a significant duty to collect and turn over all IRS withholding taxes,” said Thomas F. Murdock, Special Agent in Charge, IRS Criminal Investigation, St. Louis Field Office. “Those who fail to do so gain an unfair competitive advantage. The failure to abide by IRS laws will not be tolerated, and those criminals will be prosecuted to the fullest extent of the law.”
This case was investigated by the Internal Revenue Service.Corpus Christi man arrested for selling fentanyl-laced pills causing deathRead the Press Release
CORPUS CHRISTI, Texas – A 21-year-old Corpus Christi man has been charged with delivery of fentanyl resulting in death and possession of fentanyl with the intent to distribute, announced U.S. Attorney Alamdar S. Hamdani.
Authorities arrested Ricardo Julyan Kross Rios aka Kross, 21, Corpus Christi, this morning. He is expected to make his initial appearance before U.S. Magistrate Judge Mitchel Neurock tomorrow at 9:45 a.m.
A federal grand jury in Corpus Christi returned the tw0-count indictment March 22, 2023. It alleges that on Dec. 9, 2022, Rios possessed and delivered a substance containing a detectable amount of fentanyl, the use of which resulted in the death of a person. Rios was also charged with one count of possessing fentanyl for the purpose of distribution on Jan. 17.
If convicted of distributing fentanyl causing death, Rios faces up to life in prison. He could also be fined up to $1 million. The possession of fentanyl with the intention to distribute carries a 20-year maximum sentence.
The Drug Enforcement Administration led the cooperative law enforcement effort targeting fentanyl with the assistance of Homeland Security Investigations, Jim Wells County Sheriff’s Office and police departments in Corpus Christi, Aransas Pass and Mathis. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting this case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Convicted Child Molester Sentenced for Immigration Fraud and Judicially Ordered Removed from the United StatesRead the Press Release
RALEIGH, N.C. – Manuel Alejandro Vitela-Romero, age 36, a citizen of Mexico residing in Johnston County, was sentenced today by Chief United States District Judge Richard E. Myers II to time served plus one year of supervised release following a guilty plea to immigration fraud. Moreover, Vitela was judicially ordered removed from the United States.
According to court records, on March 23, 2019, Vitela knowingly made a materially false statement on an application for an immigration benefit. In response to the question “Have you ever…engaged in [a]ny kind of sexual contact or relations with any person who was being forced or threatened?” he answered “No.”
Contrary to Vitela’s statement, he had taken indecent liberties with a minor, a 13-year-old girl, on August 8, 2018, and he was convicted on November 8, 2022, in the Superior Court of North Carolina in Johnston County. He was sentenced to a term of imprisonment of between 16 and 29 months and ordered to register as a sex offender.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement. Agents with ICE’s Enforcement and Removal Operations and Homeland Security Investigations, assigned to the Document Benefit Fraud Task Force, investigated the case. Assistant U.S. Attorney Sebastian Kielmanovich 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. 5:23-cr-008-1M-BM.
Columbus man faces 25-year prison sentence after conviction of crimes related to violent armed robberyRead the Press Release
COLUMBUS, Ohio – A U.S. District Court jury has convicted Kevin Daniels, 45, of Columbus, of crimes he committed during the armed robbery of a mobile phone store in November 2021. Because of prior criminal convictions, Daniels faces at least 25 years in prison.
According to trial testimony and evidence, Daniels entered a mobile phone store on North High Street in Columbus about 7:30 p.m. on Nov. 26, 2021. He brandished a semi-automatic handgun in front of the two clerks, held them at gunpoint, and demanded they give him the phones in the safe and any cash they had in the store. After the clerks handed Daniels two bags of phones and cash, he sprayed them with chemical mace, temporarily blinding them. Daniels fled out the store’s back door and drove away.
The store clerks cleared their vision enough to call 911. Columbus Police identified the suspect’s car and arrested Daniels on the east side after a high-speed chase along neighborhood streets.
A federal grand jury indicted Daniels in December 2021, charging him with interfering with interstate commerce by robbery (the Hobbs Act), use of a firearm in a crime of violence, and possession of a firearm by a prohibited person.
Daniels has a prior federal firearms conviction in Columbus which means he faces a sentence of at least 25 years in prison. Daniels will be sentenced after the court conducts a pre-sentencing investigation.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); and Columbus Police Chief Elaine Bryant announced the verdict reached at the conclusion of a trial before U.S. District Judge Michael Watson on March 21. Assistant United States Attorneys S. Courter Shimeall and Nicole Pakiz are representing the United States in this case.
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Columbia Man Sentenced to More than 9 Years in Federal Prison for Possession of a FirearmRead the Press Release
COLUMBIA, SOUTH CAROLINA —Ernest Weldon, 37, of Columbia, was sentenced to 110 months in federal prison for possession of a firearm by a person convicted of a felony.
Evidence presented to the Court showed that on June 21, 2021, an officer with the City of Columbia Police Department (CPD) attempted to conduct a traffic stop on a car driven by Ernest Weldon. Instead of stopping for the officer, Weldon opened the door to the car and ran without putting the car in park, causing it to roll until it stopped in nearby grass. During his flight, Weldon dropped a firearm, which law enforcement recovered. CPD officers detained Weldon after a brief chase and took him into custody. Before this incident, Weldon had convictions for attempted armed robbery, possession with the intent to distribute marijuana, and multiple convictions for assault and criminal domestic violence.
United States District Judge Joseph F. Anderson, Jr. sentenced Weldon to 110 months in prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
The case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the City of Columbia Police Department. Assistant U.S. Attorney Lamar J. Fyall is prosecuting the case.
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Coindawg Founder Arrested for Laundering Proceeds of Fraudulently Obtained Small Business Administration LoansRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Ivan J. Arvelo, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced today the arrest of CHARLES RILEY CONSTANT, a/k/a “Chuck Constant,” for charges in connection with a scheme to steal and launder over $1 million in fraudulently obtained loans from the Small Business Administration (“SBA”), including the use of fraud proceeds to purchase cryptocurrency ATMs. CONSTANT was arrested yesterday morning and is being presented today before a U.S. Magistrate Judge in the Eastern District of Texas. In connection with CONSTANT’s arrest, law enforcement agents seized, among other things, 18 cryptocurrency ATMs in Texas and Oklahoma that CONSTANT purchased with fraud proceeds to start a cryptocurrency ATM business named “Coindawg LLC,” as well as Coindawg’s website.
U.S. Attorney Damian Williams said: “As alleged, Charles Constant helped to launder over $1 million of proceeds from loans that his co-conspirators fraudulently obtained from the SBA. He converted the bulk of the crime proceeds into Bitcoin for his co-conspirators and used a portion of the rest to start his own lucrative cryptocurrency ATM business. Thanks to this Office’s teamwork with the HSI, Constant is now facing serious criminal charges for his alleged crimes. We will continue to hold accountable people who steal funds intended for small businesses that struggled as a result of the COVID-19 pandemic.”
HSI Special Agent in Charge Ivan J. Arvelo said: “As alleged, Charles Constant specifically exploited the Small Business Administration’s Economic Injury Disaster Loan program put in place to help our small businesses weather the COVID-19 pandemic, for the purpose of expanding his criminal money laundering enterprise. Constant is accused of defrauding the federal government and robbing U.S. taxpayers with his illicit money-laundering scheme. HSI New York will continue to exhaust every resource at our disposal to ensure criminals like this will be held accountable for their actions.”
According to the allegations in the Complaint, which was unsealed today in Manhattan federal court:[1]
CHARLES RILEY CONSTANT, a/k/a “Chuck Constant,” knowingly assisted others involved in a scheme to fraudulently obtain over $1 million in loans from the SBA, which CONSTANT and his co-conspirators laundered through Bitcoin transactions. The perpetrators of the fraud against the SBA used false identities and non-existent companies to obtain seven Economic Injury Disaster Loans from the SBA — funds that were intended to help small businesses financially harmed by the COVID-19 pandemic. The loan proceeds were transferred directly from the SBA to a bank account held by C2 LLC, an entity that CONSTANT owned and registered with the U.S. Treasury Department as a money services business. CONSTANT then used approximately $700,000 of the crime proceeds — a portion of which he routed through a second bank account held by C2 LLC — to purchase Bitcoin from a cryptocurrency exchange headquartered in New York City. CONSTANT directed the New York-based exchange to distribute the Bitcoin to his co-conspirators.
CONSTANT then stole the remaining $300,000 of fraud proceeds. CONSTANT transferred $53,000 of the $300,000 to a third bank account held by C2 LLC and an additional $98,300 to an account in CONSTANT’s name at a cryptocurrency exchange headquartered in California. Beginning in the fall of 2020, CONSTANT used a portion of these fraud proceeds to purchase, among other things, seven cryptocurrency ATMs (“Crypto ATMs”), cryptocurrency, and promotional services to start a cryptocurrency ATM business named “Coindawg LLC.” CONSTANT used revenue generated by the seven Crypto ATMs to acquire additional Crypto ATMs and more cryptocurrency to expand Coindawg’s operations. To date, Coindawg has exchanged over $3,000,000 worth of cryptocurrency and charged 15% in transaction fees. Below is a photograph of one of the Coindawg Crypto ATMs seized by law enforcement in connection with CONSTANT’s arrest:
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CONSTANT, 54, of Allen, Texas, is charged with one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison; one count of theft of public money, which carries a maximum sentence of 10 years in prison; and one count of interstate receipt of stolen money, which carries a maximum sentence of 10 years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the investigative work of the HSI. Mr. Williams also thanked the HSI Field Office in Dallas, Texas, for their assistance in the investigation of this case.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Sarah Lai, Olga I. Zverovich, and Andrew K. Chan are in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described herein should be treated as an allegation.
Charlotte Men with Prior Criminal Histories Are Sentenced to Prison for Unlawful Possession of A Stolen FirearmRead the Press Release
CHARLOTTE, N.C. – Dominique Malik Daniels, 23, of Charlotte, was sentenced today to 48 months in prison followed by two years of supervised release for unlawful possession of a stolen firearm, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings, of the Charlotte-Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement.
"Stolen firearms pose a significant threat to the safety of our community, particularly when they end up in the hands of prohibited persons," said U.S. Attorney King. "Working with our law enforcement counterparts at the federal, state, and local level, we will continue to join forces to protect our communities and remove illegal firearms from our streets."
"Recovering stolen firearms from prohibited individuals is a critical step toward improving public safety," said Special Agent in Charge Mims. "ATF and our law enforcement partners are committed to locating those offenders who threaten our communities and recovering the firearms used to commit their crimes."
According to documents filed in this case and court proceedings, on December 31, 2020, CMPD officers were dispatched to a 7-Eleven on North Graham Street in Charlotte, after a store clerk alerted law enforcement that two individuals, one of whom was later identified as Daniels, were loitering in the parking lot. Officers responding to the service call interviewed the store clerk who told CMPD officers that he believed Daniels was armed. The officers approached Daniels and recovered from his jacket a 9 mm handgun and a Glock magazine. Over the course of the investigation, law enforcement determined that the firearm had been stolen out of Randolph County in North Carolina. Court records show that Daniels was previously convicted of multiple state offenses and he is prohibited from possessing a firearm. Court records show that Daniels was previously convicted of multiple state offenses and he is prohibited from possessing a firearm. On December 9, 2021, Daniels pleaded guilty to possession of a firearm by a convicted felon.
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In an unrelated case, on Wednesday, March 22, 2023, U.S. District Judge Max O. Cogburn Jr. sentenced Dejawn Jermaine King, 26, of Charlotte, to 37 months in prison followed by two years of supervised release for illegally possessing a stolen firearm. According to court documents filed in this case, on January 6, 2022, CMPD officers were dispatched to Statesville Road and Sunset Road, where they encountered King passed out at the wheel. After waking up, King began to reach into the vehicle’s center console. Officers were able to remove King from the vehicle and observed a firearm on the driver’s seat. During the investigation, law enforcement determined the firearm had been reported stolen out of Stokes County in North Carolina. King has a prior state conviction and he is prohibited from possessing a firearm. King pleaded guilty on June 22, 2022, to possession of a firearm by a felon.
Daniels and King are in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement U.S. Attorney King thanked the ATF and CMPD for their investigation of both cases.
Assistant U.S. Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte was in charge of both prosecutions.
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In July 2022, the U.S. Attorney’s Office for the Western District of North Carolina launched Think Again, an informational campaign to educate the public on how to prevent illegal firearms from getting into the wrong hands. The U.S. Attorney’s Office partnered with the ATF in this initiative, in a joint effort to reduce gun-induced violence and to increase reporting of illegal firearms. The campaign encourages the public to submit an anonymous tip about illegal firearms and other criminal activity to the ATF by calling 1-888-ATF-TIPS (1-888-283-8477), via text at 63975, or online at WWW.ATF.GOV/ATF-TIPS.
For additional information about our Think Again initiative, please visit our website. You can view our Think Again Public Service Announcements here.
Camden Man Pleads Guilty to Conspiracy to Commit Bank FraudRead the Press Release
Jackson, Miss. – A Camden man pleaded guilty to conspiracy to commit bank fraud, announced U.S. Attorney Darren J. LaMarca of the Southern District of Mississippi.
According to court documents and statements made in court, Arthur Jerome Eldridge, Jr., 25, conspired with others to print counterfeit U.S. Treasury Checks, deposit them at area banks, and withdraw funds from those accounts.
Eldridge is scheduled to be sentenced on June 26, 2023. He faces a maximum penalty of 30 years in prison and a $1,000,000 fine. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by the Mississippi Attorney General’s Office through its partnership with the United States Secret Service’s Cyber Fraud Task Force
Assistant U.S. Attorney Kimberly T. Purdie is prosecuting the case.
California man admits armed fentanyl trafficking in Great Falls areaRead the Press Release
GREAT FALLS — A California man suspected of armed fentanyl trafficking in the Great Falls area admitted to charges today, U.S. Attorney Jesse Laslovich said.
Casey Louis Ream, 37, pleaded guilty to possession with intent to distribute fentanyl and to prohibited person in possession of a firearm. Ream faces a maximum of 20 years in prison, a $1 million fine and at least three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Aug. 17. Ream was detained pending further proceedings.
In court documents, the government alleged that in October 2022, Russell Country Drug Task Force agents in Great Falls were investigating Ream for armed fentanyl trafficking. Ream was arrested in his vehicle and had several fentanyl pills on his person and more pills were visible in the area where he had been sitting. Officers served a search warrant on the vehicle and located a bundle of more than $6,000 in cash and a lock box that contained several thousand fentanyl pills and multiple rounds of ammunition. In a search of a house where Ream had been staying, officers found an AK-style rifle with a high-capacity magazine that had been reported stolen out of Washington state and three 9mm pistols. In later interviews, Ream admitted to owning the firearms seized from the house and that he was felon. Ream further admitted he had brought large quantities of fentanyl pills to sell. Ream has several felony convictions and is prohibited from possessing firearms.
Assistant U.S. Attorney Ethan R. Plaut is prosecuting the case, which was investigated by the Russell Country Drug Task Force, Bureau of Alcohol, Tobacco, Firearms and Explosives, Great Falls Police Department, Cascade County Sheriff’s Office and Homeland Security Investigations.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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CEO of Paycheck Protection Program Lender MBE Capital Pleads Guilty in Connection with Fraudulent Loan and Lender ApplicationsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that RAFAEL MARTINEZ, the CEO of MBE Capital Partners, LLC, pled guilty to conspiring to commit wire fraud in connection with loan and lender applications submitted through the Paycheck Protection Program (the “PPP”) administered by the U.S. Small Business Administration (the “SBA”). MARTINEZ pled guilty before United States District Judge Lewis J. Liman, to whom his case is assigned.
U.S. Attorney Damian Williams said: “In the depths of the COVID-19 pandemic, Martinez lied to get money that was supposed to help people. His abuse of the system during a terrible time has now been brought to light. Martinez took advantage of his employees, a tax preparer, and the public at large — all to fund a lavish lifestyle of cars, jets, and fancy homes. Let me be clear, this Office will not tolerate such conduct and will continue to bring to justice those who put their greed above the law.”
According to the allegations in the Complaint, court filings, and statements made during plea proceedings:
MARTINEZ used false representations and documents to fraudulently obtain the approval of the SBA for his company, MBE Capital Partners, LLC (“MBE”), to be a non-bank lender through the PPP. He engaged in this criminal conduct to fraudulently secure hundreds of millions of dollars in capital for PPP loans and, ultimately, to collect more than approximately $71 million in lender fees. In addition, MARTINEZ engaged in a scheme to obtain a PPP loan for MBE in the amount of approximately $283,764 through false statements regarding the number of employees of MBE and the wages paid to MBE employees and using the forged signature of MBE’s tax preparer.
At all relevant times, MARTINEZ has been the CEO and primary owner of MBE, a New York limited liability company formed in or about March 2015. Republic Group, LLC, a/k/a Republic Group Parts, LLC (“Republic Group”), which is owned and controlled by MARTINEZ, serves as the holding company for MBE and conducts business as MBE. According to MBE’s website, “For over 20 years, MBE Capital Partners has been a leading provider of financing solutions for small and diverse businesses . . . In 2019, we financed over $1.7 billion in public and private debt and we funded over 35,000 PPP loans worth $800M.”
On or about April 5, 2020, MARTINEZ applied to a financial institution for a government-guaranteed loan for Republic Group, through the SBA’s PPP. In connection with the loan application, MARTINEZ represented that MBE had as many as 15 employees and an average monthly payroll of approximately $119,390 in 2019. In fact, however, from in or about April 2018 through in or about April 2020, MBE had at most four employees who had a total average monthly payroll of no more $25,000. In order to support the false representations made by MARTINEZ in the loan application about the number of employees at and the wages paid by MBE, MARTINEZ submitted fraudulent and doctored tax records that contained the forged signature of a tax preparer located in Manhattan, New York (the “Tax Preparer”). Based on the false documentation provided by MARTINEZ, MBE was approved for a PPP loan in the amount of approximately $283,764, which was disbursed to a bank account controlled by MARTINEZ. A majority of the loan proceeds do not appear to have been used for payroll for employees of MBE or other business expenses.
On or about April 9, 2020, within five days of applying for the PPP loan referenced above, MARTINEZ submitted an application to the SBA for MBE to become a non-bank PPP lender. As part of the PPP lender application process, MARTINEZ represented that MBE had originated and serviced over $3.8 billion in business loans or other commercial financial receivables for the three-year period from in or about 2017 through in or about 2019 and submitted fraudulent financial statements that purported to be audited by the Tax Preparer’s firm for the years 2018 and 2019. Based on the false information provided by MARTINEZ to the SBA, MBE was approved as a non-bank lender for PPP loans.
On or about April 27, 2020, MARTINEZ submitted various documents, including the same fraudulent audited financial statements for 2019 provided to the SBA, to a life insurance company (the “Company”) as part of a proposed partnership to fund PPP loans for minority and women-owned small businesses. On or about May 13, 2020, the Company provided MBE with $100 million to fund PPP loans, which MBE in turn used as collateral to borrow additional capital of approximately $832 million through the Payment Protection Program Liquidity Facility (“PPPLF”) with the Federal Reserve.
As a result of the above fraudulent misrepresentations, MARTINEZ, through his company MBE, became an approved PPP lender and issued approximately $823 million in PPP loans to approximately 36,600 businesses. These loans earned MARTINEZ a total of approximately $71.3 million in fees. MARTINEZ spent the proceeds from his criminal conduct on, among other things, the purchase of a villa in the Dominican Republic for over $10 million, a $3.5 million mansion located in Franklin Lakes, New Jersey, a chartered jet service, and several luxury vehicles, including a 2018 Porsche 911 Turbo, a 2017 Ferrari 488 Spider, a 2017 Bentley Continental GT, a BMW 750, and a 1962 Mercedes Benz 190.
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MARTINEZ, 57, of Franklin Lakes, New Jersey, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of five years in prison.
The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
As part of his plea agreement, MARTINEZ agreed to pay restitution in the amount of $71,711,893.07 and to forfeit $44,546,712.94, including more than $15 million previously seized by law enforcement, properties in New Jersey and the Dominican Republic, and five luxury vehicles.
Mr. Williams praised the outstanding investigative work of the Internal Revenue Service, Criminal Investigation; U.S. Small Business Administration, Office of Inspector General; and the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection, Eastern Region.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Micah Fergenson, Katherine Reilly, and Steven Kochevar are in charge of the prosecution.
Buffalo Man Convicted by A Federal Jury for His Role in Murder of Three People in Front of Child Sentenced to Three Consecutive Life SentencesRead the Press Release
BUFFALO, N.Y. – U.S. Attorney Trini E. Ross announced today that Deandre Wilson, 51, of Buffalo, NY, who was convicted by a federal jury of multiple charges for his role in a narcotics conspiracy which resulted in a triple homicide, was sentenced to serve three consecutive life sentences plus 30 years by Chief U.S. District Judge Elizabeth A. Wolford. Following the six-week jury trial, Wilson was convicted of:
- narcotics conspiracy
- Hobbs Act robbery
- murder while engaged in a narcotics conspiracy
- discharge of a firearm in furtherance of a crime of violence and drug trafficking crimes
- two counts of discharge of a firearm causing death in furtherance of a crime of violence and drug trafficking crimes
- conspiracy to obstruct justice
- two counts of obstruction of justice
- conspiracy to use fire to commit a felony
- two counts of use of fire to commit a felony
- conspiracy to damage and destroy a vehicle used in interstate commerce by fire
- damaging and destroying a vehicle used in interstate commerce by fire
- possession with intent to distribute marijuana
Assistant U.S. Attorneys Michael J. Adler, Maeve E. Huggins, and Joseph M. Tripi, who handled the prosecution of the case, stated that in 2019, Deandre Wilson joined a longstanding narcotics conspiracy with co-defendants Jariel Cobb, James Reed, and others. Wilson, who had only recently been released to New York State parole after serving a lengthy prison term for Murder in the 2nd Degree, entered the conspiracy to obtain kilograms of cocaine and other controlled substances for distribution. In furtherance of the narcotics conspiracy, on September 15, 2019, Cobb arranged a purchase of a kilogram of cocaine from Miguel Anthony Valentin-Colon and Dhamyl Roman-Audiffred, who served as Cobb’s sources of supply. Valentin-Colon, along with his wife. Nicole Marie Merced-Plaud, their minor son, and Roman-Audiffred, arrived in their vehicle, a white minivan, at a residence on Roebling Avenue, as directed by Cobb. Roman-Audiffred exited the van and entered the residence’s kitchen, at which time Wilson hit her in the head with a blunt object and she fell to the floor. Wilson then went outside and shot and killed both Valentin-Colon and Merced Plaud, in the presence of their minor son, who was seated in a child’s car seat. Wilson then drove the minivan and hid it behind a building on Scajaquada Street near Kilhoffer Street in Buffalo.
A short time later, Cobb and Reed moved the body of Dhamyl Roman-Audiffred from the kitchen into the residence’s basement, where Cobb dismembered her body. Cobb placed the body parts into multiple trash bags and placed them into the trunk of his vehicle, and then drove to a residence on Box Avenue, removed the trash bags, and placed them into a burning fire in a fire pit area in the backyard. Wilson later joined his co-conspirators on Box to assist in the destruction of evidence.
During the early morning hours of September 16, 2019, Wilson and Cobb retrieved the minivan from Scajaquada Street, with the bodies of Miguel Valentin-Colon and Nicole Marie Merced-Plaud still inside, as well as their minor son. Wilson and Cobb drove the minivan to a non-residential area on Tonawanda Street and doused the vehicle and the bodies with gasoline, lighting the vehicle and bodies on fire. They took the minor child and left him on a stranger’s porch on Potomac Avenue in Buffalo.
Jariel Cobb and James Reed were previously convicted and also face a maximum of life when sentenced.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia; the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia; the Erie County Sheriff’s Office, under the direction of Sheriff John Garcia; the Erie County Central Police Services Forensic Laboratory, under the direction of Commissioner James Jancewicz.
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Broward County Man Sentenced to 108 Months’ Imprisonment for Ponzi Scheme & COVID-19 FraudRead the Press Release
MIAMI – A federal district judge in Ft. Lauderdale has sentenced David J. Varrone, 56, of Weston, Florida, to 108 months’ imprisonment for his role in organizing an elaborate credit and investment Ponzi scheme through his company, The Credit Engineers, Inc.
In addition, Judge Raag Singhal ordered Varrone to pay over $3,5 million in restitution and entered a forfeiture judgment on Varrone’s Weston home and a bank account containing COVID-19 relief funds that Varrone had fraudulently obtained.
Varrone previously pled guilty to conspiracy to commit wire fraud. From 2018 through 2021, Varrone and his company offered individuals with good credit a short-term investment program tied to a purported hedge fund that guaranteed investment returns and fully repaid investments in 36 months or less. To obtain funds, Varrone helped victims apply for the high interest, short term loans and the victims “leased” the proceeds to The Credit Engineers and Varrone.
In fact, there was no hedge fund and the victims’ funds were never invested as promised. Instead, the proceeds were used to enrich Varrone and to repay earlier victims. The scheme funneled over $6.4 million of misappropriated victims’ funds into Varrone’s accounts.
Additionally, Varrone fraudulently applied for and received approximately $650,000 in CARES Act, Economic Injury Disaster Relief Loans from the U.S. Small Business Administration. The loans were intended to keep small businesses afloat and retain employees during the COVID-19 pandemic period.
David J. Varrone’s wife, Sherry D. Varrone, also pled guilty to her role in the conspiracy in case number 22-cr-60196. She is scheduled for sentencing on April 3, in Ft. Lauderdale before U.S. District Judge William P. Dimitrouleas.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Commissioner Russell C. Weigel III of the Florida Office of Financial Regulation (OFR), Bureau of Financial Investigations (BFI), Miami Region, made the announcement.
OFR-BFI Miami investigated the case, with assistance from the Small Business Administration, Office of Inspector General (SBA-OIG) and the U.S. Secret Service (USSS), Miami Field Office. Assistant U.S. Attorney Trevor Jones prosecuted the case. Assistant U.S. Attorney Emily Stone is handling asset forfeiture.
In March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Among other sources of relief, the CARES Act authorized and provided funding to the SBA to provide Economic Injury Disaster Loans (“EIDLs”) to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred. EIDL applications were submitted directly to the SBA via the SBA’s on-line application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. For more information on the department’s response to the pandemic, please click here.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 22-cr-60197.
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Brooklyn Man, Who Was Fugitive for 8 Years, Sentenced to 60 Months in Prison for His Role in Heroin ConspiracyRead the Press Release
COLUMBIA, SOUTH CAROLINA —Dockim Deeshawn McKnight, 34, of Brooklyn, New York, was sentenced to 5 years in prison after earlier pleading guilty in federal court to conspiracy to possess with intent to distribute and to distribute 100 grams or more of heroin.
McKnight was one of 10 defendants charged in April 2014, following a series of court-authorized, DEA-monitored wiretaps over several telephones in the Columbia area. Six of the 10 defendants were arrested in April 2014, while 4 remained fugitives, including McKnight. Two fugitives were arrested in 2017 in Texas. McKnight remained a fugitive until his May 2022 arrest by the United States Marshals Service in Brooklyn, New York. The remaining fugitive was arrested in September 2022 in Concord, North Carolina, is currently awaiting trial, and is innocent until and unless proven guilty.
The 2013 investigation revealed that a group of individuals in the Columbia area were obtaining heroin from various sources outside of South Carolina and then distributing it in the Midlands. Evidence indicated that the suppliers were initially getting the heroin in packages from India. Several packages destined for Columbia and containing heroin were intercepted by law enforcement during the investigation. Evidence further showed that the co-defendants later traveled to New York to obtain heroin and transported it back to Columbia, where it was distributed. In June 2013, New York authorities seized 155 grams of heroin from McKnight and his girlfriend/co-defendant Jessany Lyons while they were preparing to board a bus back to South Carolina.
Eight of McKnight’s co-defendants earlier pleaded guilty to their role in the drug conspiracy here in South Carolina and were sentenced as follows:
- Eric Shawn Bradley of Columbia was sentenced to 210 months in prison with 8 years of court-ordered supervision;
- Michael Glover of Columbia was sentenced to 324 months in prison with 8 years of court-ordered supervision;
- Jihad Salahadeen Pollard of Columbia was sentenced to 121 months in prison with 4 years of court-ordered supervision;
- Kenneth Crawford, Jr. of Washington, D.C., and formerly of Columbia was sentenced to 120 months in prison with 8 years of court-ordered supervision;
- Charles Raheem Bradley of Columbia was sentenced to 57 months in prison with 6 years of court-ordered supervision;
- Anthony Troy Glover of Columbia was sentenced to 120 months in prison with 8 years of court-ordered supervision;
- Larry Grover Bookman of Columbia was sentenced to 70 months in prison with 6 years of court-ordered supervision; and
- Jessany Lyons of Far Rockaway, New York, was sentenced to 37 months in prison with 3 years of court-ordered supervision.
The New York heroin suppliers were charged and convicted by the United States Attorney’s Office in the Eastern District of New York for their role in the drug conspiracy.
Senior United States District Judge Joseph F. Anderson, Jr. sentenced McKnight to 60 months in prison, to be followed by a 4-year term of court-ordered supervision. There is no parole in the federal system.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The case was investigated by the Drug Enforcement Administration’s (DEA) High Intensity Drug Task Force, which was comprised of agents and officers from the DEA, Homeland Security Investigations (HSI), Federal Bureau of Investigation (FBI), United States Secret Service (USSS), Columbia Police Department, Richland County Sheriff’s Department, South Carolina Law Enforcement Division (SLED), Lexington County Sheriff’s Department, Kershaw County Sheriff’s Office, Orangeburg County Sheriff’s Office, and the Fifth Circuit Solicitor’s Office. The United States Marshals Service and the Carolinas Regional Fugitive Task Force-Charlotte Office assisted in locating the 4 fugitives. Assistant United States Attorney Stacey D. Haynes is prosecuting the case.
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Bay Area Resident Convicted of Production of Child Pornography and Sex Trafficking of A MinorRead the Press Release
SAN FRANCISCO – Kenneth Orlando Sparks was convicted of production of child pornography and sex trafficking of a minor by a federal jury, announced United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation (FBI) Special Agent in Charge Robert K. Tripp. The verdicts followed a week-long jury trial before the Hon. Vince Chhabria, United States District Judge.
The jury found that Sparks, 36, of Oakland, Calif., produced child pornography by recording multiple videos of himself having sex with a minor victim in July 2019. The jury also found that Sparks engaged in sex trafficking of a minor for his actions enticing, recruiting, and transporting the minor victim to Oakland and San Francisco to engage in commercial sex work on “the Blade” (a generic term used to describe both cities’ commercial sex strips).
Evidence at trial highlighted Sparks’ text messages and social media communications with the minor victim and others, in which Sparks arranged to transport the minor to and from the Blade and offered her advice and instruction while she was working on the Blade. Evidence at trial also demonstrated that Sparks provided the minor accommodation in the Bay Area (including at the location where the child pornography was filmed) in furtherance of her engaging in commercial sex. Trial evidence also demonstrated Sparks had been warned about the minor’s age and nevertheless transported her to the Bay Area for commercial sex on three occasions after receiving the warning.
The investigation began after Sparks and the minor victim were stopped by San Francisco Police Department officers in July 2019. During the traffic stop, SFPD officers learned the passenger in the car was a minor and observed evidence of her involvement in commercial sex work.
A federal grand jury indicted Sparks on September 29, 2021, charging him with one count each of production of child pornography, in violation of 18 U.S.C. § 2251(a); sex trafficking of a minor, in violation of 18 U.S.C. § 1591(a)(1), (b)(2), (c); coercion and enticement of a minor, in violation of 18 U.S.C. § 2422(b); and receipt of child pornography, in violation of 18 U.S.C. § 2252(a)(2). The government dismissed the receipt of pornography charge before trial and the jury acquitted Sparks of the enticement charge.
Sparks faces a maximum statutory sentence of 30 years in prison and a minimum of 15 years in prison, a lifetime term of supervised release, a $250,000 fine, plus restitution and a special assessment for the production of child pornography conviction. Sparks faces life in prison, a minimum of 10 years in prison, a lifetime term of supervised release, a $250,000 fine, as well as restitution and a special assessment for the sex trafficking of a minor conviction. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Judge Chhabria has not yet scheduled Sparks’s sentencing hearing. He remains free on bond, pending further hearings.Assistant U.S. Attorneys Ilham Hosseini and Alethea Sargent are prosecuting the case with the assistance of Veronica Hernandez and Megan Pagaduan. The prosecution is the result of an investigation by the FBI and San Francisco Police Department.
Baker Woman Sentenced to Federal Prison for Aiding and Assisting in the Preparation and Presentation of False and Fraudulent Tax ReturnsRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that Chief Judge Shelly D. Dick sentenced Bridget Rogers White, age 48, of Baker, Louisiana, to 24 months in federal prison following her convictions for aiding and assisting in the preparation and presentation of false and fraudulent tax returns. The Court further sentenced White to serve one year of supervised release following her term of imprisonment and ordered her to pay restitution in the amount of $149,933.
According to admissions made as part of her guilty plea, White operated an income tax preparation business, sometimes referred to as “Bridget Stop & Go Tax Services” or “Bridgett’s Tax Service” out of her Baker residence. Through her business, White prepared tax returns in exchange for money, but did not identify herself as the paid preparer on the returns. From January 2015 through at least June 2018, White prepared and submitted to the IRS numerous false and fraudulent U.S. Individual Income Tax Returns, known as Forms 1040, on behalf of herself and other taxpayer-clients. In the Forms 1040 and attachments thereto, among other false items, she routinely included a false Schedule C, reporting a profit or loss from a fictitious business, and a false Form 8863, reporting fictitious education expenses in order to claim an education credit referred to as the American Opportunity Credit. On certain returns, White included additional false items, such as fraudulent itemized deductions, on a Schedule A, or false dependents. For each of her taxpayer-clients, the general effect of such false information was to reduce the client’s tax liability and artificially inflate or increase the amount of the tax refund claimed by the client.
During this investigation, the IRS identified 31 false Forms 1040, which White willfully prepared and submitted on behalf of 13 individual taxpayer-clients for Tax Years 2014 through 2017. Through those 31 false and fraudulent returns alone, White’s conduct caused an actual loss of $149,993. For purposes of sentencing, White further admitted that the total tax loss attributable to her fraudulent conduct was more than $550,000.
U.S. Attorney Gathe stated, “Fraudulent tax preparers cheat the government and honest taxpayers and will be dealt with accordingly. I want to thank my prosecutors and the Internal Revenue Service Criminal Investigators for their hard work on this case. “
“Assisting taxpayers prepare accurate tax returns is the entrusted responsibility of tax practitioners,” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “White failed to live up to that responsibility by preparing false returns for herself and others. Today’s sentencing sends a message that IRS Criminal Investigation will continue investigating and recommending prosecution of return preparers who knowingly commit tax fraud.”
This matter was investigated by the Internal Revenue Service Criminal Investigation Division and was prosecuted by Assistant United States Attorney Caroline Gardner.
- Arizona man pleads guilty to attempted murder of a federal task force officer
22 March 2023
Wolf Point man admits role in kidnapping, assault of girl on Fort Peck Indian ReservationRead the Press Release
GREAT FALLS — A Wolf Point man accused in the kidnapping and assault of a girl by a group of individuals on the Fort Peck Indian Reservation in 2021 today admitted to his role in the abduction, U.S. Attorney Jesse Laslovich said.
Cheri Cruz Granbois, 21, pleaded guilty to kidnapping of an individual under 18. Granbois faces a mandatory minimum 20 years to life in prison, a $250,000 fine and five years to a lifetime of supervised release
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other sentencing factors. Sentencing was set for Aug. 10. Granbois was detained pending further proceedings.
The government alleged that on Sept. 15, 2021, a group of individuals lured a 15-year-old girl, identified as Jane Doe, out of her house in Wolf Point and kidnapped her. Granbois offered to pay co-defendant Kaylee Jackson to lure the victim from her house so she could be assaulted. As a result, Jane Doe was lured out of her house, and the situation escalated. Some of the individuals in the group assaulted the victim in her front yard. When eyewitnesses yelled that they were going to call the police, some of individuals kidnapped Jane Doe, forcing her into a vehicle and driving to a vacant field where the assault continued. Granbois grabbed the victim and beat her in the vehicle.
Granbois is the last of six defendants indicted in the case to plead guilty. Co-defendants Dylan Troy Jackson, Kaylee Jade Jackson, Patti Jo Annunciata Mail, Lavanchie Patricia Goodbird and Elmarie Amelia Weeks have pleaded guilty to charges and are pending sentencing.
Assistant U.S. Attorneys Wendy A. Johnson and Ryan G. Weldon are prosecuting the case, which was investigated by the FBI, Fort Peck Law Enforcement, Roosevelt County Sheriff’s Office and Wolf Point Police Department.
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Unlicensed Gun and Marijuana Dealer Sentenced to 64 Months for Illegal Handling of over 50 Firearms, Among Other ChargesRead the Press Release
Salt Lake City, Utah – A Roosevelt man was sentenced Monday to over five years imprisonment after pleading guilty to illegally purchasing and reselling firearms without a license, and multiple other drug related offenses stemming back to 2021.
According to court documents, Phillip Mahe Taufa, 41, engaged in the business of illegally dealing firearms between February 2021 through November 2021 in the District of Utah. In his plea statement, Taufa admitted he purchased over 50 firearms from federally licensed firearm dealers and individual sellers. He resold several of the firearms to individuals in California and Nevada, typically charging double the price. Taufa never possessed the required license to deal firearms. Taufa also made false statements to federally licensed firearm dealers in connection with the acquisition of the firearms. Additionally, on November 9, 2021, agents serving a search warrant at Taufa’s residence recovered 43 firearms, ammunition, over 10 pounds of marijuana, and THC cartridges. Taufa admitted he intended to distribute portions of the marijuana to others and told agents he smoked marijuana multiple times each day. He admitted to purchasing the marijuana from the dark web and received it via the U.S. mail.
The court sentenced Taufa to 64 months in a federal prison followed by a term of supervised release of three years and ordered Taufa to pay a special assessment of $600.
“As a result of the outstanding work and dedication of our law enforcement partners, the U.S. Attorney’s Office successfully prosecuted a case where guns and drugs were being unlawfully acquired and resold,” said U.S. Attorney Trina A. Higgins for the District of Utah. "These activities adversely impact communities, both in our district and in neighboring districts.”
The case was investigated jointly by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the United States Postal Inspection Service (USPIS), with assistance from the Roosevelt Police Department.Assistant U.S. Attorney, Victoria K. McFarland of the District of Utah prosecuted the case.
This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
United States and Commonwealth of Massachusetts Announce Settlement with City of Holyoke to Reduce Sewage in Connecticut RiverRead the Press Release
The Justice Department, the U.S. Environmental Protection Agency (EPA) and the Commonwealth of Massachusetts have entered into a consent decree with the City of Holyoke, Massachusetts, to resolve the Clean Water Act and Massachusetts state law. The proposed consent decree calls for Holyoke to take further remedial action to reduce ongoing sewage discharges into the Connecticut River from the city’s sewer collection and stormwater systems.
As detailed in the consent decree, Holyoke discharges pollutants from combined sewer overflow (CSO) into the Connecticut River in violation of its federal and state wastewater discharge permits. A combined sewer system collects rainwater runoff, domestic sewage and industrial wastewater into one pipe. Under normal conditions, it transports all of the wastewater to a sewage treatment plant for treatment before discharging to a waterbody. However, during periods of heavy rain, the wastewater volume can exceed the carrying capacity of the sewer system or the treatment facility, resulting in the discharge of untreated wastewater to the Connecticut River. CSO discharges contain raw sewage and are a major water pollution concern.
In full cooperation with federal and state environmental agencies, the city has taken steps in recent years to address these unlawful discharges, including finalizing a long-term overflow control plan, separating sewers and eliminating overflows in the Jackson Street area. The consent decree will require the city to undertake further sewer separation work that will eliminate or reduce additional CSO discharges, as well as requiring a $50,000 penalty for past permit violations resulting in illegal discharges to the Connecticut River.
The city will also conduct sampling of its storm sewer discharges, work to remove illicit connections and take other actions to reduce pollution from stormwater runoff. The total cost to comply with the proposed consent decree is estimated at approximately $27 million.
“Today’s settlement will significantly reduce pollution in the Connecticut River and improve water quality for the Holyoke community,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The Justice Department will continue pursuing environmental justice in communities burdened by pollution in rivers and streams to support the health and safety of all communities.”
“Fiercely protecting our environment is a civil and human rights issue and ensuring that every community has clean water is a vital part of that work. This consent decree better protects the residents of Holyoke and every single community that lives along and enjoys the Connecticut River,” said U.S. Attorney Rachael S. Rollins for the District of Massachusetts. “We will continue to require with the full force of the federal government that every community is healthy and safe.”
“Under the terms of today’s settlement, the City of Holyoke will take additional steps to reduce the amount of untreated sewage discharged during heavy rain events,” said Acting Assistant Administrator Larry Starfield of the EPA’s Office of Enforcement and Compliance Assurance. “The result of this work will be cleaner, safer water for communities that make use of the Connecticut River.”
Holyoke owns and operates a sewer collection system that services approximately 70% of the city, two-thirds of which carries both sewage and stormwater.
This settlement is part of EPA’s continuing efforts to keep raw sewage and contaminated stormwater out of our nation’s waters. Raw sewage overflows and inadequately controlled stormwater discharges from municipal sewer systems introduce a variety of harmful pollutants, including disease causing organisms, metals and nutrients that threaten our communities’ water quality and can contribute to disease outbreaks, beach and shellfish bed closings, flooding, stream scouring, fishing advisories and basement backups of sewage.
The proposed consent decree is subject to a 30-day public comment period and approval by the federal court. Once it is published in the Federal Register, a copy of the consent decree will be available on the Justice Department website at www.justice.gov/enrd/consent-decrees.
U.S. Attorney Thompson, Law Enforcement Officials to Announce Largest Methamphetamine Seizure in West Virginia HistoryRead the Press Release
CHARLESTON, W.Va. – United States Attorney Will Thompson and law enforcement officials will announce a major drug trafficking investigation on Wednesday, March 22, 2023, at 3 p.m. that had resulted in the largest seizure of methamphetamine in West Virginia history.
WHAT: Announcement of major drug trafficking investigation
WHEN: Wednesday, March 22, 2023, at 3 p.m.
WHERE: Robert C. Byrd Unites States Courthouse, 300 Virginia Street East, Charleston.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia.
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Two Co-Conspirators Indicted for Role in Prolific, Global Human Smuggling ConspiracyRead the Press Release
Note: View the indictment here.
Extensive coordination and cooperation efforts between U.S. and Mexican law enforcement authorities culminated in the International Criminal Police Organization (INTERPOL) Mexico and the Fuerza Estatal de Seguridad Ciudadana (FESC) executing the arrests of a human smuggler, along with a co-conspirator, alleged to have operated on the U.S.-Mexico border for several years.
Ofelia Hernandez-Salas, 60, and co-conspirator Raul Saucedo-Huipio, 48, were arrested in Mexico at the request of the United States pursuant to charges previously filed in the District of Arizona and unsealed last week. Hernandez-Salas and Saucedo-Huipio allegedly conspired with other smugglers to facilitate the travel of large numbers of migrants from and through Bangladesh, Yemen, Pakistan, Eritrea, India, the United Arab Emirates, Uzbekistan, Russia, Egypt, Brazil, Peru, Ecuador, Colombia, Costa Rica, Nicaragua, Honduras, El Salvador, Guatemala, Mexico, and ultimately, into the United States. Hernandez-Salas and Saucedo-Huipio allegedly charged the migrants as much as tens of thousands of dollars to make the illegal and perilous journey. In addition to the large-scale smuggling of migrants to the United States, Hernandez-Salas and Saucedo-Huipio often allegedly robbed the migrants of their personal belongings while armed with weapons such as guns and knives.
“The indictment and arrests of human smugglers send a stark message that the Department of Justice will not rest until all those who feed on the desperation of others are brought to justice,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “By dismantling an organization that has operated with impunity for so many years, we have taken yet another stride toward making the global community a safer place. It is thanks to our tremendous partnerships with countries like Mexico that we are able to draw a line in the sand and make it crystal clear that people will no longer be treated like commodities and their lives will no longer be put at risk in the name of profit.”
“Once again we see that international cooperation is far more important to a border strategy than physical barriers,” said U.S. Attorney Gary Restaino for the District of Arizona. “These defendants allegedly conspired to flout America’s immigration laws, and to victimize the very migrants they were purporting to help. Our friends and neighbors in Mexican law enforcement have been integral to our efforts to bring this smuggling ring to justice.”
The indictments against Hernandez-Salas and Saucedo-Huipio and their subsequent arrests were coordinated under Joint Task Force Alpha (JTFA). JTFA was created by Attorney General Merrick B. Garland in June 2021, in partnership with Homeland Security Secretary Alejandro N. Mayorkas, to strengthen the department’s overall efforts to combat these crimes based on the rise in prolific and dangerous smuggling emanating from Central America and impacting our border communities. JTFA’s goal is to disrupt and dismantle those human smuggling and trafficking networks operating in El Salvador, Guatemala, Honduras, and Mexico, with a focus on networks that endanger, abuse, or exploit migrants, present national security risks, or engage in other types of transnational organized crime.
“This administration has led an unprecedented anti-human smuggling campaign that leverages the full weight of the U.S. government, and it is showing results,” said Deputy Secretary John K. Tien of the Department of Homeland Security. “These indictments build on tremendous collaboration across the federal government, which includes JTFA, and the investments we continue to make in strengthening our relationships with partners in the region and throughout the hemisphere. We are unwavering in our commitment to continuing to hold transnational criminal networks accountable, and to bring them to justice.”
“Combatting human smuggling is one of our top law enforcement priorities, and a critical component of national security,” said Deputy Director and Senior Official Performing the Duties of the Director Tae D. Johnson of the U.S. Immigration and Customs Enforcement (ICE). “Homeland Security Investigations special agents are committed to holding transnational criminal organizations accountable for perpetrating this horrific crime. We will continue to employ our full range of law enforcement techniques and authorities against human smugglers – let today’s announcement serve as a reminder that we will expose you, dismantle your networks, and see that you face justice.”
“U.S. Customs and Border Protection (CBP), along with our partners, will continue to use every authority at our disposal to curtail these threats and prevent harm,” said Acting Commissioner Troy Miller of the CBP. “Our ongoing joint enforcement efforts to attack and dismantle these dangerous global criminal networks will keep our borders strong and local streets and communities safe.”
Since its creation, JTFA has successfully increased coordination and collaboration between the Justice Department, DHS, and other interagency law enforcement participants, and with foreign law enforcement partners, including El Salvador, Guatemala, Honduras, and Mexico; targeted those organizations who have the most impact on the United States; and coordinated significant smuggling indictments and extradition efforts in U.S. Attorneys’ offices across the country. JTFA is comprised of detailees from southwest border U.S. Attorneys’ offices, including the Southern District of Texas, the Western District of Texas, the District of New Mexico, the District of Arizona, and the Southern District of California, and dedicated support for the program is also provided by numerous components of the Justice Department’s Criminal Division that are part of JTFA – led by the Human Rights and Special Prosecutions Section (HRSP) and supported by the Office of Prosecutorial Development, Assistance, and Training (OPDAT), the Narcotic and Dangerous Drug Section (NDDS), the Money Laundering and Asset Recovery Section (MLARS), the Office of Enforcement Operations (OEO), the Justice Department’s Office of International Affairs (OIA), and the Organized Crime and Gang Section (OCGS). JTFA is made possible by substantial law enforcement investment from DHS, FBI, DEA, and other partners.
The investigation is also supported by the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence, and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
HSI Yuma is investigating the case with assistance from the U.S. Border Patrol (USBP), CBP, U.S. Immigration and Custom’s Enforcement and Removal Operations (ICE-ERO), FBI, and U.S. Marshals Service (USMS), working in concert with HSI Tijuana, INTERPOL, and the HSI Human Smuggling Unit in Washington, D.C. HSI also received substantial assistance from CBP’s National Targeting Center/Counter Network Division and the Office of Foreign Assets Control. The Department of Justice thanks Mexican law enforcement, who were instrumental in arresting Hernandez-Salas, including substantial assistance provided by FESC.
JTFA Co-Director James Hepburn and Trial Attorney Patrick Jasperse of HRSP and Assistant U.S. Attorney Lisa Jennis for the District of Arizona are prosecuting the case, with significant assistance provided by the Justice Department’s Office of International Affairs.
The charges contained in an indictment are merely allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Twice-Convicted Embezzler Is Sentenced to Prison for Executing Back-To-Back Fraud SchemesRead the Press Release
CHARLOTTE, N.C. – A Belmont, N.C. woman, with two prior federal embezzlement convictions, was sentenced to 57 months in prison today for executing back-to-back fraud schemes, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Lisa Buza Hill, a/k/a Lisa Rollins-Hill, 43, will also have to serve three years under court supervision after she is released from prison.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI) in North Carolina, and Chief Johnny Jennings, of the Charlotte-Mecklenburg Police Department (CMPD), join U.S. Attorney King in making today’s announcement.
According to court documents and court proceedings, in October 2012, Hill (at the time Rollins-Hill), was convicted of federal wire fraud for stealing more than $800,000 from her then-employer, a motorcycle company headquartered in Kings Mountain, N.C. At the time, Hill was ordered to serve a five-month probationary term followed by three years of supervised release and to pay $807,506.39 in restitution to the victim company.
In July 2020, the U.S. Attorney’s Office filed new charges against Hill, for embezzling funds from a Charlotte-based company where Hill worked as a Controller. According to court documents filed in this case, from September 2019 to February 2020, and while still paying restitution for the 2012 embezzlement scheme, Hill misused her access to her employer’s financial system, including her authority to issue company checks, and defrauded the company by fraudulently issuing herself approximately 15 company checks totaling over $22,000. During this time, Hill also made false statements to the U.S. Attorney’s Office’s attempts to collect court-ordered restitution owed by Hill in connection with her 2012 conviction.
In June 2021, while Hill’s criminal charges for the fraudulent check scheme were still pending, a federal bill of information was also filed against Hill, charging her with embezzling more than $550,000 from her latest employer, a development company located in Rock Hill, S.C., identified in court documents as R.W. According to court documents, from May 2020 to January 2021, Hill was employed by R.W. as the Chief Financial Officer (CFO). In that position, Hill had access to the company’s bank accounts, and her duties included the ability to make payments on behalf of the company. As court documents show, Hill misused her position and access to the company’s financial records to make unauthorized payments to herself, including to make transfers from R.W.’s accounts to pay for Hill’s personal expenses. In total, Hill transferred more than $550,000 in unauthorized funds from R.W. for her personal benefit. As Hill previously admitted in court, she used the embezzled funds to make payments for a BMW vehicle, to pay for a trip to Disney World, to make mortgage payments and to settle misuse of funds allegations from previous employers.
According to court filings and statements made during the sentencing hearing, some of the funds embezzled from R.W. were also used to make settlement payments to two additional prior employers.
In announcing today’s sentence, U.S. District Judge Max O. Cogburn Jr. emphasized the defendant’s “brazenness in continuing to steal from people while still on bond,” and noted the importance of “specific deterrence.”
Hill is in federal custody. She will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
The FBI and CMPD investigated Hill. Assistant U.S. Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte prosecuted the cases.
Trio Indicted and Arrested in Fentanyl Distribution Conspiracy Spanning from California to D.C.Read the Press Release
WASHINGTON – Federal law enforcement arrested one member of the conspiracy last month, and two remaining members of the conspiracy, this morning, for a fentanyl distribution conspiracy responsible for bringing thousands of fake blue Oxycodone (M30) pills, containing fentanyl, from California to D.C., announced U.S. Attorney Matthew M. Graves, and DEA Special Agent in Charge Jarod Forget, of the Washington Division, and Chief Robert J. Contee, III, of the Metropolitan Police Department.
Hector David Valdez, 25, of Los Angeles, California, Charles Jeffrey Taylor, 19, of Washington D.C., and Craig Eastman, 19, of Washington D.C., are charged in an indictment with conspiracy to distribute 400 grams or more of a mixture and substance containing fentanyl. Valdez was arrested in Los Angeles, California, on March 13, 2023 and was ordered detained by the Central District of California pending his transfer to the District of Columbia. Eastman and Taylor were arrested on March 22, 2023, and made their initial appearance in the District of Columbia this afternoon. They will have a detention hearing before United States Magistrate Judge Robin M. Meriweather on March 28, 2023.
According to the indictment, from on or about January 2021 to February 24, 2023, Valdez, Taylor, and Eastman conspired together to distribute 400 grams or more of a mixture and substance containing fentanyl. The indictment further charges Eastman with three additional counts of possession with intent to distribute fentanyl, including one count of possession with intent to distribute fentanyl within 1,000 feet of a protected location (a school and a public housing apartment).
Valdez was arrested on February 24, 2023, in the Central District of California. During a search of his residence, law enforcement recovered over 4.4 kilograms of blue M30 pills and a half-kilogram brick of powder, which tested positive for fentanyl. Valdez was ordered detained pending trial and is currently being transferred to the District of Columbia for prosecution. This morning, law enforcement arrested Taylor and Eastman inside Taylor’s residence and seized seven firearms while executing a search warrant.
The conspiracy charge carries a mandatory minimum sentence of 10 years in prison up to life; the possession with intent to distribute charge carries a statutory maximum sentence of 20 years in prison; and the possession within 1,000 feet of a protected location carries a mandatory minimum sentence of one year up to 40 years in prison. The sentencing will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The investigation of this case had the sponsorship and support of the federal Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF specializes in the investigation and prosecution of drug trafficking and money laundering organizations and related criminal enterprises.
The prosecutions followed a joint investigation by the DEA Washington Division in partnership with the Metropolitan Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Washington Field Division, and the U.S. Postal Inspection Service, with additional support from the DEA Los Angeles and Riverside Field Offices. It is being prosecuted by Assistant U.S. Attorneys David Henek, Andy Wang, and Matthew Kinskey of the Violence Reduction and Trafficking Offenses (VRTO) Section.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Three Individuals Sentenced in Darknet Narcotics Trafficking Conspiracy Involving Distribution of Pills Pressed with FentanylRead the Press Release
WASHINGTON – The last of three defendants was sentenced Friday in the U.S. District Court for the District of Columbia for illegal sales of opioids on various Darknet markets. The Honorable John D. Bates sentenced Alex Ogando to 12 years. Olatunji Dawodu and Luis Spencer were previously sentenced to 12 years and 12 ½ years, respectively. All three defendants were convicted of conspiracy to distribute 400 grams or more of a mixture and substance containing fentanyl.
The Darknet operations pumped kilograms of fentanyl pills into communities across the nation over the course of four years, using Darknet markets including AlphaBay, Dream, Wall Street, and Empire to reach a broad customer base. The defendants also used encrypted messaging services to communicate with and sell pills directly to customers. In exchange for cryptocurrency, the defendants sold fentanyl pills that were shipped via the U.S. Postal Service to buyers in the District of Columbia and all 50 states. The conspiracies relied on sophisticated technology to distribute and profit from a staggering quantity of pills pressed with fentanyl.
The case was prosecuted by former Assistant U.S. Attorney Laura Crane and Assistant U.S. Attorney Connor Mullin. The investigation was conducted by the FBI’s Hi-Tech Opioid Task Force, which is composed of FBI agents, analysts, and task force partners, including special agents and officers of the Food and Drug Administration’s Office of Criminal Investigations, DEA, U.S. Postal Inspection Service, and detectives from local assisting police agencies. Additional assistance was provided by the United States Attorney’s Offices for the District of Rhode Island and the Southern District of Florida, the FBI’s Miami and Boston Field Offices, and the IRS-CI Cyber Crimes Unit.
Therapist’s ex-wife convicted of defrauding Medicaid and stealing patient informationRead the Press Release
HOUSTON – A 47-year-old Katy resident has admitted to defrauding Medicaid of more than $600,000, announced U.S. Attorney Alamdar S. Hamdani.
Kay Le Farmer is the former office manager for her ex-husband - a therapist and Medicaid provider in the Houston area. Following their separation, Farmer admitted to using her ex-husband’s provider number to submit fraudulent claims to Medicaid, unbeknownst to him, for counseling services that were never provided.
In 2017, Farmer admitted to using her employment at a pediatrician’s office to obtain patient information. She then submitted more fraudulent claims to Medicaid under her ex-husband’s provider number.
In total, from 2013 until 2018, Farmer submitted, or caused the submission of, approximately $617,983.86 in claims for psychotherapy services that were not provided. Farmer admitted she was paid approximately $432,924.69 on those claims.
U.S. District Judge George C. Hanks accepted the plea and will impose sentencing June 20. At that hearing, Farmer faces up to 10 years in federal prison and a possible $250,000 fine.
Farmer was permitted to remain on bond pending sentencing.
The Texas Attorney General’s Medicaid Fraud Control Unit and the Department of Health and Human Services - Office of Inspector General conducted the investigation. Special Assistant U.S. Attorney Kathryn Olson is prosecuting the case.
Tampa Woman Sentenced to More Than Eight Years in Federal Prison for Fraud OffensesRead the Press Release
Tampa, FL – U.S. District Judge William F. Jung has sentenced Kemi Lim-Tom (38, Tampa) to eight years and four months in federal prison for bank fraud, tax fraud, credit card fraud, and aggravated identity theft. Lim-Tom was ordered to pay $345,943.49 in restitution. She had pleaded guilty on July 26, 2022.
According to court documents, in February 2018, pursuant to a search warrant, officers from the Tampa Police Department found Lim-Tom and her coconspirator, Sonya Seago, in possession of more than 1,500 individuals’ stolen personal identifying information. Subsequent investigation revealed that Lim-Tom used these identities to commit bank fraud, tax fraud, and credit card fraud.
According to court documents and evidence presented at the sentencing hearing, between 2012 and February 2018, Lim-Tom orchestrated a scheme to defraud financial institutions by manufacturing counterfeit checks with fraudulent company names and bank account numbers belonging to victim businesses and then cashing these checks for profit. Lim-Tom recruited and paid others to receive some of these checks and provide her with the proceeds. The face value of the fraudulent checks involved in the scheme was more than $600,000.
Between March 2013 and July 2014, Lim-Tom committed tax fraud by using stolen identities to obtain tax refunds from the Internal Revenue Service. Lim-Tom obtained four fraudulent tax refunds totaling more than $27,000 and attempted to obtain an additional 56 refunds totaling more than $300,000.
Between January 2015 and February 2018, Lim-Tom and Seago used stolen personal identifying information to obtain fraudulent credit cards, which they used to make more than $215,000 in purchases.
On February 15, 2023, Sonya Seago (50, Tampa) was sentenced to 32 months in federal prison for her role in the fraud offenses.
“Greed is a strong motivator for illegal activity and these sentencings demonstrate our commitment to hold criminals accountable for their corrupt behavior,” said IRS-CI Acting Special Agent in Charge Ronald A. Loecker. “These individuals demonstrated a blatant disregard for the United States tax system and caused immeasurable damage to innocent victims. IRS Criminal Investigation, along with our partners at the United States Secret Service, the Tampa Police Department, and the U.S. Attorney’s Office, remains committed to the pursuit of identity theft and other related crimes.”
This case was investigated by IRS-Criminal Investigation, the United States Secret Service, and the Tampa Police Department. It was prosecuted by Assistant United States Attorneys Jennifer L. Peresie and John Cannizzaro.
St. Petersburg Man Pleads Guilty to Possessing Ammunition as A Convicted FelonRead the Press Release
Tampa, FL - United States Attorney Roger B. Handberg announces that Dartis Cobb (35, St. Petersburg) has pleaded guilty to possession of ammunition by a convicted felon. Cobb faces up to 15 years in federal prison. He has agreed to forfeit the ammunition traceable to the offense. A sentencing date has not yet been set.
According to court documents, on August 13, 2022, Cobb was pulled over during a traffic stop. During a search of Cobb’s vehicle, a firearm and ammunition were located. As a previously convicted felon, Cobb is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Federal Bureau of Investigation and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Samantha Newman. The forfeiture is being handled by Assistant United States Attorney Suzanne Nebesky.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
St. Louis Man Admits Robbing Escort at GunpointRead the Press Release
ST. LOUIS – A man from St. Louis, Missouri on Wednesday admitted robbing and assaulting an escort at gunpoint in 2021.
Antwan R. Johnson, 24, pleaded guilty in front of U.S. District Judge John A. Ross to an armed robbery charge and a charge of possessing and brandishing a firearm in furtherance of a crime of violence.
Johnson admitted using Megapersonals.com to arrange a meeting with an escort in the 4200 block of Cote Brilliante Avenue in St. Louis on August 17, 2021. While in the escort’s car, Johnson pulled a gun from his waistband and robbed her of her purse, which contained two cell phones and cash. He then struck her in the head with the gun, threatened her life and fired two shots at her vehicle as it drove away, striking the vehicle once, his plea agreement says.
Johnson is scheduled to be sentenced June 27. He faces a mandatory minimum of seven years in prison for the gun charge, consecutive to the robbery charge, which carries a possible penalty of up to 20 years in prison. Both sides have agreed to recommend a 10-year sentence.
The case was investigated by the St. Louis Metropolitan Police Department. Assistant U.S. Attorney Jennifer Szczucinski is prosecuting the case.
Sioux City Woman Who Walked Away from Halfway House Sentenced to 15 Months in Federal PrisonRead the Press Release
A woman who escaped from custody was sentenced March 16, 2023, to more than one year in federal prison.
Sarah Renee Pray, age 32, from Sioux City, received the prison term after a December 15, 2022, guilty plea to one count of escape from custody.
At the guilty plea, Pray admitted that on August 31, 2022, she escaped from custody from the Dismas Charities Residential Reentry Center (RRC) in Sioux City. Pray was confined to Dismas pursuant to a conviction for conspiracy to distribute a controlled substance out of the United States District Court for South Dakota.
On August 31, 2022, at approximately 9:00 p.m., Dismas staff conducted a routine head count and were not able to locate Pray. Staff determined Pray did not have permission to be out of the facility and checked with her emergency contacts, local jails, and hospitals with negative results. Pray’s whereabouts were unknown until she turned herself in to authorities on October 4, 2022, at the Union County Jail in Elk Point, South Dakota.
Pray was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Pray was sentenced to 15 months’ imprisonment. She must also serve a 2-year term of supervised release after the prison term. There is no parole in the federal system.
Pray is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Kevin C. Fletcher and investigated by United States Marshal’s Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-4082.
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Seven Indicted for Role in Prison-Based Phone Scam and Paying Bribes to Corrections Officers at the William E. Donaldson Correctional FacilityRead the Press Release
BIRMINGHAM, Ala. – A federal indictment unsealed yesterday charges seven individuals for their participation in a prison-based telephone scam and conspiring to smuggle cell phones, controlled substances, and other contraband to inmates at the William E. Donaldson Correctional Facility (Donaldson) in Bessemer, Alabama, announced U.S. Attorney Prim F. Escalona and U.S. Secret Service Special Agent in Charge Patrick Davis.
A seventeen-count indictment filed in U.S. District Court charges Keith Devon Perry, aka “Keep Paper,” 30, of Anniston, Kierro Deandrew Nelson, aka “10K,” 32, of Montgomery, Shedrick Romon Johnson, aka, “Cett,” 43, of Montgomery, Deangelo Lamon Russell, aka “Dee,” 31, of Anniston, Desmond Arterrio Nelson, aka “Dez,” 35, of Montgomery, and Aleshia Nelson,” aka “Leshia,” 30, of Montgomery, with conspiracy to commit an offense against the United States, using a facility in interstate commerce in furtherance of an unlawful activity, and conspiracy to distribute a controlled substance. Perry, Kierro Nelson, Johnson, and Brantley Glen Wheatley, aka “Queen B,” 29, of Tuscaloosa, are charged with conspiracy to commit wire fraud. Perry, Johnson, and Wheatley are charged with wire fraud. Perry and Wheatley are charged with aggravated identity theft. Perry, Kierro Nelson, Johnson, Wheatley, and Russell are charged with conspiracy to commit money laundering.
The defendants include current and former inmates at Donaldson, as well as family members of two inmates. The charges stem from a larger investigation into fraud and corruption at Donaldson that has to date resulted in nine additional individuals being charged. Those individuals include Wilson Brian Clemons, Ricardo Poole, Sr., Kortney Jovan Simon, Otis Lee Bowers, Terry Ray Bradshaw, Rennita Renee Perry, Kiara Reshell Anderson, Ricardo Poole, Jr., and Rhonda Thompson Poole.
According to the indictment, between July 2021 and February 2022, the defendants used contraband cell phones, social engineering techniques, and spoofing technology to trick retailers into transferring them funds under fraudulent pretenses. The proceeds of these telephone scams were then used to, among other things, finance the purchase of controlled substances and to pay bribes to corrections officers at Donaldson.
The charges of conspiracy to commit an offense against the United States and use of a facility in interstate commerce in furtherance of illegal activity both carry a maximum sentence of five years in prison The charges of conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and conspiracy to distribute and possess with the intent to distribute a controlled substance each carry a maximum penalty of 20 years in prison. Aggravated identity theft carries a mandatory sentence of two years in prison.
The U.S. Secret Service Cyber Fraud Task Force investigated the case. Assistant U.S. Attorneys Edward J. Canter and John M. Hundscheid are prosecuting the case. The Alabama Department of Corrections Law Enforcement Services Division, the Drug Enforcement Administration, and the Federal Bureau of Investigation have assisted in the investigation.
An indictment contains only charges. The defendants are presumed innocent unless and until they are proven guilty.
Schuylkill County Man Charged with Drug Trafficking and Firearm OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that William Quintana, age 50, of Pottsville, Pennsylvania, was indicted by a federal grand jury for drug trafficking and firearm offenses.
According to United States Attorney Gerard M. Karam, the indictment charges Quintana with possessing with the intent to distribute quantities of methamphetamine and marijuana and possessing two pistols in furtherance of trafficking methamphetamine. The indictment further charges Quintana with possessing three firearms, including an assault rifle while knowing that he had previously been convicted of a felony.
The matter was investigated by the Federal Bureau of Investigations (FBI), the Pottsville Police Department, and the Schuylkill County District Attorney’s Office. Assistant United States Attorney James M. Buchanan is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The maximum penalty under federal law for these offenses is life imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Readout of Assistant Attorney General Kristen Clarke’s Trip to LouisianaRead the Press Release
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division traveled to Louisiana as part of the division's civil rights tour to engage with stakeholders in underserved communities and reaffirm the department’s commitment to protecting the civil rights of all Americans.
On Monday, Assistant Attorney General Clarke along with U.S. Attorney Brandon Brown for the Western District of Louisiana met with approximately 20 community stakeholders in Tallulah, Louisiana. Tallulah is in Madison Parish, which has one of the highest poverty rates in the state. The meeting focused on a range of civil rights issues, including equitable education, voting rights and reentry efforts. The community leaders expressed their gratitude for the Justice Department’s willingness to engage with rural communities.
That afternoon, she traveled west to Grambling, Louisiana, to visit Grambling State University where she met with President Richard Gallot Jr. and participated in a fireside chat for students to hear their civil rights concerns, to discuss their paths as attorneys and to encourage the students to consider careers in civil rights.
For her last stop, Assistant Attorney General Clarke traveled to Shreveport, Louisiana. On Tuesday, she met with U.S. Attorney Brown’s “Focusing on the Future” Community Advisory Group to hear about racial justice issues in Shreveport, including, education, prison conditions and criminal civil rights prosecutions.
Later that afternoon, she met with the staff for the U.S. Attorney for the Western District of Louisiana and thanked them for their dedicated service and commitment to protecting civil rights.
In the coming weeks, Assistant Attorney General Clarke will continue meeting with stakeholders in underserved communities with the next stop in Memphis, Tennessee, in early April.
Assistant Attorney General Kristen Clarke (seated left center) with U.S. Attorney Brandon Brown (seated right center) with Civil Rights Division and Western District of Louisiana staff (seated) and Tallulah-Madison Parish community stakeholders (standing). Assistant Attorney General Clarke (center) with U.S. Attorney Brown (left) and Grambling State University President Gallot on campus. Assistant Attorney General Clarke and U.S. Attorney Brown took questions from students during their fireside chat discussion. Assistant Attorney General Clarke (center left) and U.S. Attorney Brown (center) with members of his “Focusing on the Future” Community Advisory Group. Assistant Attorney General Clarke and U.S. Attorney Brown with Western District of Louisiana staff in the Shreveport office and Shreveport Chief of Police Wayne Smith and Deputy Chief Antoine White.Rapid City Man Indicted for Illegal Possession of FirearmRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Rapid City, South Dakota, man for Possession of a Firearm and Ammunition by a Prohibited Person.
Takoda Walker Ghostbear, age 24, was indicted in February of 2023. He appeared before U.S. Magistrate Judge Daneta L. Wollmann on March 17, 2023, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 15 years in custody and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Ghostbear, a previously convicted felon who is prohibited from possessing firearms and ammunition, knowingly being in possession of a Glock pistol and ammunition in Rockerville in November of 2022.
The charge is merely an accusation and Ghostbear is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Rapid City Police Department. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Ghostbear was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Pottsville Man Sentenced to 78 Months in Prison for CyberstalkingRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Aaron Vandaley, age 45, of Pottsville, Pennsylvania, was sentenced on March 21, 2023, to 78 months’ imprisonment by United States District Court Judge Robert D. Mariani for cyberstalking.
According to United States Attorney Gerard M. Karam, Vandaley, with the intent to harass and intimidate other persons, engaged in a course of conduct using electronic communication systems and services of interstate commerce to cause substantial emotional distress to six victims. All six victims were former romantic partners of Vandaley or relatives and friends of his former romantic partners.
During the course of the conduct, Vandaley repeatedly made false anonymous allegations to law enforcement agencies throughout the country. He falsely accused the victims of committing heinous crimes including murder-for-hire, narcotics trafficking, human trafficking, and sexual offenses. Vandaley also sent anonymous electronic messages to the victims threatening to kidnap and murder the minor child of one of the victims. Vandaley also threatened to mail parts of that minor child back to the victim. Vandaley committed these crimes while one of the victims had a protection from abuse order against him.
Vandaley has eight previous convictions for indirect criminal contempt for failing to obey court orders of protection. During his detention in Lackawanna County Jail pending his sentencing, Vandaley continued to attempt to contact at least one of his victims by making over 100 phone calls to the victim from jail. As part of the sentence, Vandaley is not to have any further contact with any of the victims in the case.
The matter was investigated by the Federal Bureau of Investigation (FBI), the U.S. Army Criminal Investigation Division (CID), Fort Stewart, Georgia, and the Pottsville Police Department. Assistant United States Attorney James Buchanan prosecuted the case.
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Postal Worker Accused of Stealing MailRead the Press Release
WICHITA, KAN. – A federal grand jury in Wichita returned an indictment charging a Kansas woman with stealing gift cards from the mail as an employee of United States Postal Service.
According to court documents, Paula Kendall, 39, of Haysville was indicted on three counts of theft of mail by postal employee for allegedly stealing mail between November and December 2022.
The U.S. Postal Service – Office of the Inspector General is investigating the case.
Assistant U.S. Attorney Molly Gordon is prosecuting the case.
OTHER INDICTMENTS
Clifton Ray Weatherspoon, 30, and Antonio Dawayne Knight, 24, both of Wichita were indicted on one count of possession of fentanyl with intent to distribute. Weatherspoon was also indicted on one count of possession of a firearm in furtherance of a drug trafficking crime. The Federal Bureau of Investigation (FBI) is investigating the case. Assistant U.S. Attorneys Deb Barnett and Ola Odeyemi are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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