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Wednesday 1 February 2023
Lancaster Man Arrested, Charged with Production and Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Jacob V. Schmidbauer, 41, of Lancaster, NY, was arrested and charged by criminal complaint with production and possession of child pornography. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of 30 years and a $250,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that according to the complaint, on January 8, 2023, the Lancaster Police Department received information that Schmidbauer allegedly recorded a sexually explicit video of a minor female victim. During the course of the investigation, law enforcement seized a total of 22 electronic devices that belong to Schmidbauer as well as an SD card. A review of the SD card recovered 32 video clips, which included the sexually explicit video of the minor female victim.
Schmidbauer made an initial appearance before U.S. Magistrate Judge Michael J. Roemer and is being held.The criminal complaint is the result of an investigation by the Lancaster Police Department, under the direction of William Karn, Jr., and Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Kearney Man Sentenced for Possessing Methamphetamine and a FirearmRead the Press Release
United States Attorney Steven Russell announced that Brandon Goodsell, 36, of Kearney, Nebraska, was sentenced today by United States District Court Judge John M. Gerrard to a term of 210 months’ imprisonment following his convictions for possession of methamphetamine with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime. After he completes his prison sentence, Goodsell will also serve four years on supervised release. There is no parole in the federal system.
On August 2, 2020, Goodsell was on a motorcycle when he fled from Nebraska State Patrolmen at high speeds throughout York and Hamilton counties. He crashed in a ditch in Hamilton County and was arrested. He was wearing a backpack which was searched. Investigators found a loaded pistol, more than 200 grams of methamphetamine in five different bags, marijuana, hash oil, a scale, baggies and several items of drug paraphernalia. A forensic scientist at the Crime Lab confirmed the presence of methamphetamine and marijuana.
This case was investigated by the Nebraska State Patrol, the York County Sheriff’s Office, and the Trident Task Force which is made up of officers from the Grand Island Police Department, Hall County Sheriff’s Office, Hastings Police Department, Adams County Sheriff’s Office, Kearney Police Department, Buffalo County Sheriff’s Office, Nebraska State Patrol, Homeland Security Investigations, and the Federal Bureau of Investigation.
Justice Department Settles Housing Discrimination Lawsuit Against the Village of Hinsdale, Illinois, for $800,000Read the Press Release
The Justice Department announced today that the village of Hinsdale, Illinois, has agreed to pay $800,000 to settle a lawsuit alleging that the village violated the Fair Housing Act when it refused to allow the operation of a sober living home for persons in recovery from drug and alcohol addiction in a residential neighborhood.
The settlement, which still must be approved by the U.S. District Court for the Northern District of Illinois, resolves a lawsuit that the department filed in November 2020. This settlement also resolves a related suit brought by the sober living home’s owner and operator, Trinity Sober Living LLC.
“Local governments do not have the right to use zoning laws and restrictions as a vehicle to discriminate against people with disabilities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Department of Justice is committed to vigorous enforcement of federal law to ensure that individuals in recovery have access to the housing and support they need to maintain their sobriety and lead productive lives.”
“Individuals with disabilities – including those recovering from drug and alcohol addiction – should not be excluded from living in residential neighborhoods,” said U.S. Attorney John R. Lausch Jr. for the Northern District of Illinois. “Such discrimination by local governments is forbidden under the Fair Housing Act.”
The department’s lawsuit alleged that the village of Hinsdale violated the Fair Housing Act after it denied a reasonable accommodation request by Trinity Sober Living LLC to operate a sober living home with ten residents and a house manager in a residential neighborhood. The complaint alleged that, one day after Trinity requested an accommodation, the village sued Trinity in state court for violations of the zoning code, including that the home was a “commercial use” and would have more than three unrelated adults.
Under the settlement, the village will amend its zoning ordinance to comply with federal anti-discrimination laws, including permitting homes for persons with disabilities in residential districts, with the same size limitations applied to families of similar size, and implementing a reasonable accommodation policy. The village will also pay $790,000 in monetary damages to Trinity as well as a civil penalty of $10,000 to the United States. The village also agreed to take a number of other actions to guard against housing discrimination, including training village officials and employees about their obligations under federal law, designating a fair housing compliance officer and reporting periodically to the Justice Department.
Trinity Sober Living LLC is represented by Kennedy Hunt P.C., a civil rights law firm in St. Louis, and Esposito and Staubus LLP, a law firm in Burr Ridge, Illinois.
The federal Fair Housing Act prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-833-591-0291 or submit a report online at civilrights.justice.gov. Individuals may also contact HUD at 1-800-669-9777 or through its website at https://www.hud.gov/program_offices/fair_housing_equal_opp. Individuals may also report housing discrimination, and other forms of discrimination against persons with disabilities, to the U.S. Attorney’s Office at (312) 353-5300.
Justice Department Reaches $800,000 Settlement in Housing Discrimination Lawsuit Against the Village of Hinsdale, IllinoisRead the Press Release
The Justice Department announced today that the village of Hinsdale, Ill., has agreed to pay $800,000 to settle a lawsuit alleging that the village violated the Fair Housing Act when it refused to allow the operation of a sober living home for persons in recovery from drug and alcohol addiction in a residential neighborhood.
The settlement, which still must be approved by the U.S. District Court for the Northern District of Illinois, resolves a lawsuit that the Department filed in November 2020. This settlement also resolves a related suit brought by the sober living home’s owner and operator, Trinity Sober Living LLC.
“Individuals with disabilities, including those recovering from drug and alcohol addiction, should not be excluded from living in residential neighborhoods,” said John R. Lausch Jr., United States Attorney for the Northern District of Illinois. “Such discrimination by local governments is forbidden under the Fair Housing Act.”
“Local governments do not have the right to use zoning laws and restrictions as a vehicle to discriminate against people with disabilities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Department of Justice is committed to vigorous enforcement of federal law to ensure that individuals in recovery have access to the housing and support they need to maintain their sobriety and lead productive lives.”
The Department’s lawsuit alleged that the village of Hinsdale violated the Fair Housing Act after it denied a reasonable accommodation request by Trinity Sober Living LLC to operate a sober living home with ten residents and a house manager in a residential neighborhood. The complaint alleged that, one day after Trinity requested an accommodation, the village sued Trinity in state court for violations of the zoning code, including that the home was a “commercial use” and would have more than three unrelated adults.
Under the settlement, the village will amend its zoning ordinance to comply with federal anti-discrimination laws, including permitting homes for persons with disabilities in residential districts, with the same size limitations applied to families of similar size, and implementing a reasonable accommodation policy. The village will also pay $790,000 in monetary damages to Trinity as well as a civil penalty of $10,000 to the United States. The village also agreed to take a number of other actions to guard against housing discrimination, including training village officials and employees about their obligations under federal law, designating a fair housing compliance officer and reporting periodically to the Justice Department.
The government is represented by Assistant U.S. Attorneys Kathleen Flannery and Patrick Johnson of the Northern District of Illinois, as well as attorneys from the Department of Justice’s Civil Rights Division.
The federal Fair Housing Act prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-833-591-0291 or submit a report online at civilrights.justice.gov. Individuals may also contact HUD at 1-800-669-9777 or https://www.hud.gov/program_offices/fair_housing_equal_opp. Individuals may also report housing discrimination, and other forms of discrimination against persons with disabilities, to the U.S. Attorney’s Office in Chicago at (312) 353-5300.
Justice Department Announces Publication of Second Volume of National Firearms Commerce and Trafficking AssessmentRead the Press Release
Note: The release has been updated to correct a statistic.
The Justice Department today announced the publication of Crime Gun Intelligence and Analysis, the second volume of the National Firearms Commerce and Trafficking Assessment (NFCTA), a four-part, comprehensive examination of commerce in firearms and the diversion of firearms to illegal markets. Volume II presents and analyzes data – much of which has not previously been available – regarding criminal use of firearms that have been diverted from lawful commerce. In April 2021, Attorney General Garland directed the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) to undertake its first comprehensive study of criminal gun trafficking in over two decades. The first volume of the assessment was published in May of 2022.
“In 2021, I directed ATF to begin work on the first study of criminal gun trafficking in over two decades, and today’s report is yet another historic step in that effort,” said Attorney General Merrick B. Garland. “This collection of data will equip our prosecutors and agents – and our law enforcement partners across the country – with unprecedented insights into firearm trafficking networks and dangerous emerging firearm technologies. The Justice Department will continue to use every tool at its disposal to keep guns out of the hands of criminals and save lives.”
“This report will help law enforcement who are on the front lines in the battle against gun violence take illegal firearms off the streets,” said Deputy Attorney General Lisa O. Monaco. “The Department of Justice is committed to using cutting-edge crime gun intelligence to reduce violent crime, and this first of its kind data set on emerging threats, specifically the epidemic of stolen firearms and the proliferation of machinegun conversion devices, will have real-world impact in safeguarding our communities.”
“Information is power,” said ATF Director Steven Dettelbach. “This report provides more information on America’s crime guns than has ever been compiled in a single publication. Much of this data, including comprehensive presentation of results from ATF’s National Integrated Ballistics Information Network (NIBIN), has not previously been available to policymakers and researchers. The comprehensive – and unprecedented – compilation of data in this report is intended to provide strategic insight to law enforcement, policymakers, and researchers as they work to reduce and prevent gun violence. I commend the excellent work by the men and women of ATF involved in producing this important study.”
Volume II presents and analyzes data on crime guns (firearms used in crime) recovered between 2017 and 2021. The analysis reinforces the critical importance of ATF’s unique crime gun tracing authority and highlights the value of data from ATF’s NIBIN program.
One of the key data-points trace data provides is the “time to crime” – the time from the last known retail sale of a firearm to when it is recovered in a crime. Shorter time-to-crime periods are indicators of illegal trafficking and provide crucial intelligence to investigators. Between 2017 and 2021, nearly 25% of traced crime guns – more than 366,000 guns – had a time-to-crime of less than one-year, and 46% had a time-to-crime of three years or less.
Trace data also provides key intelligence on firearm trafficking patterns. The data analysis in Volume II confirms that although most – 72% nationally – traced crime guns are recovered in the same state in which they were acquired from a Federal Firearms Licensee (FFL), certain states and cities are targets for firearm traffickers. The cross-jurisdictional nature of this issue – guns purchased in one state and trafficked to another where they’re used in crime – is what led the Attorney General to launch five firearms trafficking strike forces in July 2021.
A significant way firearms are diverted is through theft. The report shows that from 2017 to 2021, there were 1,023,538 firearms stolen from private citizens. These private thefts make up 96% of all firearms reported stolen during that time period.
The data also reveals emerging technological trends. For instance, in the last five years, the number of illegal machine gun conversion devices that law enforcement agencies reported being recovered has increased by an alarming 570%. Conversion devices are used to convert semi-automatic firearms, which are legal, into fully automatic machine guns, which are illegal under the National Firearms Act.
In May 2022, the Department issued Volume I of the NFCTA, Firearms in Commerce, which presents and analyzes data collected by ATF and other federal agencies related to the manufacture, exportation, and importation of firearms.
To produce the NFCTA, the ATF assembled a team of subject experts from ATF, as well as from academic and related fields. Although ATF issues a variety of public and law enforcement reports and bulletins regarding firearm commerce, trafficking, and related issues every year, it has not undertaken a joint academic study on the scale of the NFCTA in more than 20 years.
Illinois Medical Device Manufacturer Agrees to Pay $500,000 to Resolve Allegedly Fraudulent Medicaid ClaimsRead the Press Release
RALEIGH, N.C. – United States Attorney Michael Easley announced today that Joint Active Systems, Inc. (JAS), a manufacturer of range-of-motion devices located in Effingham, Illinois, has agreed to pay $500,000 to settle civil claims under the Federal and North Carolina False Claims Acts concerning allegations that JAS caused submission of false claims to the North Carolina Medicaid program for certain durable medical equipment.
Specifically, the United States and the State of North Carolina alleged that from January 6, 2012 through January 29, 2021, JAS was unable to directly bill North Carolina Medicaid for its “EZ” range-of-motion devices because JAS did not meet North Carolina Medicaid requirements and/or lacked credentials necessary to do so. JAS allegedly bypassed those requirements—and its concomitant inability to bill North Carolina Medicaid directly—by entering into arrangements with local North Carolina orthotics and prosthetics providers to bill EZ devices on its behalf. JAS allegedly directed the local North Carolina orthotics and prosthetics providers to improperly submit claims for JAS EZ devices as orthotics using “L-Codes” under the Healthcare Common Procedure Coding System (“HCPCS”), thereby bypassing the medical necessity reviews and/or authorization processes that may have otherwise taken place. The Governments alleged that the JAS EZ devices did not qualify for reimbursement as “L-Code” orthotics under North Carolina Medicaid, and that the JAS EZ devices were not listed as reimbursable devices on the North Carolina Medicaid fee schedule. Indeed, JAS received an official coding verification from the Centers for Medicare and Medicaid Services that designated one of JAS’s EZ devices as an “E-Code” (durable medical equipment) device, not as an “L-Code” (orthotic) device. The Governments alleged that JAS nevertheless continued to use local North Carolina providers to bill its EZ devices as “L-Code” devices. In turn, JAS allegedly would pay the local orthotics and prosthetics providers by allowing them to retain a certain amount of the reimbursement.
“The Department of Justice is actively pursuing health care companies and medical device manufacturers who overcharge government healthcare programs,” said United States Attorney Michael Easley. “We cannot allow companies to bypass rules and regulations to enrich themselves, while depleting taxpayer funds set aside for legitimate patient care.”
“My office’s Medicaid Investigations Division will hold accountable Medical device manufacturers who drain resources from our government healthcare programs, no matter how elaborate and layered the scheme may be,” said North Carolina Attorney General Josh Stein.
The Federal and North Carolina False Claims Acts authorize the Governments to recover triple the money falsely obtained, plus substantial civil penalties for each false claim submitted.
It should be noted that the civil claims resolved by settlement here are allegations only, that there has been no judicial determination or admission of liability, and that JAS denies the allegations.
This matter was investigated by the United States Attorney’s Office for the Eastern District of North Carolina and the Medicaid Investigations Division of the North Carolina Attorney General’s Office (“MID”). Special Deputy Attorney General Matthew R. Petracca, who also serves as a Special Assistant United States Attorney, represented the United States and the State of North Carolina.
The United States Attorney’s Office for the Eastern District of North Carolina, in partnership with law enforcement agencies and state entities, investigates and prosecutes healthcare providers that defraud government programs, including Medicare and Medicaid, and abuse their patients. The Medicaid Investigations Division investigates and prosecutes healthcare providers that defraud the Medicaid program, patient abuse of Medicaid recipients, patient abuse of any patient in facilities that receive Medicaid funding, and misappropriation of any patients’ private funds in nursing homes that receive Medicaid funding. To report Medicare fraud or patient abuse in North Carolina, please visit the United States Department of Health and Human Services’ website at https://oig.hhs.gov/fraud/. To report Medicaid fraud or patient abuse in North Carolina, please call the MID at 919-881-2320.
Huber Heights man pleads guilty to child exploitation crimes involving at least 44 victimsRead the Press Release
DAYTON, Ohio – A Huber Heights, Ohio, man pleaded guilty in U.S. District Court today to crimes related to creating hundreds of images and videos of child pornography by victimizing children as young as 8 years old over a 15-year period.
Ty Brandon Roberts, 38, pleaded guilty to producing child pornography and coercing a minor.
According to court documents, beginning in 2007, Roberts sexually abused at least one minor and communicated online with many other minors around the world to produce child pornography.
Specifically, between 2007 and 2008, Roberts sexually abused an 11to 12-year-old boy and took photos of the abuse on a Polaroid camera. Roberts eventually created digital images of the Polaroids and kept the original Polaroids in his home until law enforcement seized them in 2022.
As part of his plea, Roberts admitted to pretending to be a teenaged girl online to entice and coerce minor boys to send him sexually explicit images and videos of themselves.
The FBI has identified 44 minor victims, mostly between the ages of 11 and 14, in the child pornography Roberts created. Those 44 minors are depicted in more than 400 images and videos. Many more victims of Roberts’s child pornography remain unidentified.
Production of child pornography is a federal crime punishable by a range of 15 to 30 years in prison. Coercing a minor carries a mandatory minimum of 10 years and up to life in prison. Congress sets the maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Huber Heights Police Chief Mark Lightner announced the guilty plea entered today before Senior U.S. District Judge Thomas M. Rose. Assistant United States Attorneys Kelly K. Rossi and Dwight Keller are representing the United States in this case.
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Helena man suspected in threat to damage Helena Public Schools building with pipe bombs arraigned on chargesRead the Press Release
GREAT FALLS — A Helena man accused of attempting to damage a Helena Public Schools building with pipe bombs was arraigned today on federal charges, U.S. Attorney Jesse Laslovich said.
Logan Sea Pallister, 24, pleaded not guilty to an indictment charging him with attempted property damage by use of fire or explosive, possession of unregistered destructive devices and possession of an unregistered silencer. If convicted of the most serious crime, Pallister faces a mandatory minimum five years to 20 years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge John T. Johnston presided. Pallister was detained pending further proceedings.
The indictment alleges that on May 31, 2022, Pallister intended to maliciously damage by fire and explosive a Helena Public Schools building and that he took a substantial step toward the commission of the offense. The indictment further alleges that Pallister possessed pipe bombs and a silencer, which were not registered in the National Firearms Registration and Transfer Record.
An indictment is merely an accusation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Assistant U.S. Attorney Jeffrey K. Starnes is prosecuting the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Helena Police Department.
PACER case reference. 23-02.
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Hartford Woman Sentenced to Prison for Distributing FentanylRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that MARIA MALDONADO, 50, of Hartford, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 24 months of imprisonment, followed by three years of supervised release, for distributing fentanyl.
According to court documents and statements made in court, the Drug Enforcement Administration’s Hartford Task Force identified Maldonado’s husband as a distributor of heroin and cocaine in Connecticut, New York and elsewhere. Maldonado’s husband was arrested on federal charges on January 13, 2021, and a search of his and Maldonado’s residence on that date revealed approximately 13,000 wax folds of fentanyl, more than 300 grams of loose fentanyl, approximately one kilogram of cocaine, quantities of crack cocaine and marijuana, items used to process and package narcotics for street sale, a .40 caliber handgun equipped with a loaded 30-round high-capacity magazine, a separate loaded 50-round “drum” magazine, and assorted ammunition.
While Maldonado’s husband was detained in federal custody, he continued to coordinate the distribution of fentanyl through Maldonado, as well as Maldonado’s son, Carlos Santiago, Jr., and a drug supplier, Henry DeJesus-Morales. On June 2, 2021, a court-authorized search of Maldonado’s residence revealed approximately 71 grams of loose fentanyl, approximately 1,800 wax folds of fentanyl, distribution quantities of marijuana, drug packaging supplies, a loaded pistol, a loaded shotgun, and approximately $13,000 in cash. The same day, a court-authorized search of Maldonado’s father-in-law’s house revealed approximately $60,000 in U.S. currency and assorted jewelry, which were seized as proceeds of drug trafficking.
Maldonado pleaded guilty on March 17, 2022.
Maldonado, who is released on a $75,000 bond, is required to report to prison on March 1.
DeJesus-Morales and Santiago pleaded guilty to related charges and were sentenced to 44 months and six months of imprisonment, respectively.
As to Maldonado’s husband, who is awaiting trial, U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The DEA's Hartford Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Enfield, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Robert S. Ruff through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Grand jury indicts Cincinnati man for Covid relief fraudRead the Press Release
CINCINNATI– A man formerly and currently incarcerated in Hamilton County on state charges has been charged federally with crimes related to Paycheck Protection Program (PPP) loan fraud.
Willie Boyce, 41, was indicted today by a federal grand jury.
According to the indictment, Boyce was incarcerated in Hamilton County from March 2018 until September 2020, when he was released to a halfway house.
The indictment alleges that Boyce applied electronically for two PPP loans in April 2021, claiming he owned a business named “Willie Boyce” that provided taxi and ridesharing services. Boyce submitted two separate applications on April 4 and April 9, 2021.
In his application, Boyce fraudulently claimed a gross income of $98,500 for 2019 even though he was in prison for the entirety of that year.
It is further alleged that as part of his applications, Boyce used his halfway house address as the business address and submitted a forged bank statement.
In early May 2021, Boyce received more than $40,700 in Covid relief loans. That month, Boyce allegedly spent the PPP loan money on purchases at Gucci, Louis Vuitton, Expedia, Hampton Inn and Delta Airlines.
Boyce is charged with four counts of wire fraud, a federal crime punishable by up to 20 years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, announced the case, which was investigated by the Social Security Administration Office of Inspector General, in coordination with U.S. Postal Inspection Service, U.S. Secret Service, Ohio Bureau of Motor Vehicles Investigations and Hamilton County Prosecutor’s Office. Special Assistant United States Attorney Timothy Landry is representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. - A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Mexican Citizen Charged with Immigration & Gun Crimes
Jesus Delather Corona, 32, a citizen of Mexico living in Fort Atkinson, Wisconsin, is charged with illegally reentering the United States and being a felon in possession of a firearm. The indictment alleges that on December 19, 2022, he was found in the United States after previously being removed. The indictment also alleges that on that day, he possessed a loaded 9mm pistol.
If convicted, Delather Corona faces a maximum penalty of 5 years in federal prison on the illegal reentry charge and 10 years on the felon in possession of a firearm charge.
The charges against him are the result of an investigation by the Fort Atkinson Police Department, U.S. Immigration and Customs Enforcement, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Chadwick Elgersma is handling the prosecution.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Onalaska Man Charged with Drug Crimes Involving Fentanyl & Cocaine
Michael Wilson, 46, Onalaska, Wisconsin, is charged with distributing fentanyl, possessing fentanyl with intent to distribute, and possessing cocaine with intent to distribute. The indictment alleges that he distributed fentanyl on July 21, 2022 and that he possessed fentanyl and cocaine for distribution on July 28, 2022.
If convicted, Wilson faces a maximum penalty of 20 years in federal prison on each charge. The charges against him are the result of an investigation by the La Crosse Police Department and the Dubuque County (Iowa) Drug Trafficking Task Force. Assistant U.S. Attorney Robert Anderson is handling the prosecution.
Grand Jury Charges Hairstylist and Actress for Alleged Multimillion-Dollar Caregiver Fraud Scheme Against Malibu-Based PhysicianRead the Press Release
LOS ANGELES – A Fresno hairstylist and an actress have been charged in a 12‑count indictment alleging they defrauded a physician out of more than $2.7 million before his death and then attempted to defraud his estate out of an additional amount exceeding $20 million, the Justice Department announced today.
Anthony David Flores, 46, a.k.a. “Anton David,” of Fresno, was arrested last week in Fresno by federal agents. He has pleaded not guilty to the charges against him and is scheduled for a detention hearing on February 10 in the Eastern District of California.
His co-defendant, Anna Rene Moore, 39, an actress and former yoga studio owner who currently resides in Monterrey, Mexico, was arrested Tuesday in Houston upon arrival on a flight from Mexico. She made her initial appearance in the Southern District of Texas. Both defendants are expected to appear in Los Angeles federal court in the coming weeks.
Flores and Moore are each charged with one count of conspiracy to commit wire fraud and mail fraud, one count of aggravated identity theft, two counts of wire fraud, two counts of mail fraud, one count of conspiracy to engage in money laundering, two counts of money laundering, and one count of engaging in a monetary transaction in criminally derived property.
According to the indictment, beginning in June 2017, Flores and Moore used false promises and representations to befriend the victim — a physician and successful investor worth more than $60 million, but who suffered from a mental illness and lost the ability to care for himself. Within days of meeting the victim, Flores and Moore moved into the victim’s beachfront Malibu home – rent free – and slowly took control of his life by pretending to be his new “best friends” and caregivers.
In September 2017, after the victim suffered a severe mental breakdown resulting in his arrest and detention in Los Angeles County jail, Flores allegedly fraudulently induced the victim to sign powers of attorney granting Flores control over the victim’s finances.
Flores allegedly represented that he would only use these powers to access the victim’s finances to post bail for release, and that he would immediately rescind them once the victim was free from jail. But after the victim was released from custody, Flores allegedly reneged on this promise and used these powers to open bank accounts in the victim’s name, giving himself and Moore access to the victim’s wealth.
From September 2017 to May 2018, Flores and Moore allegedly diverted the victim’s funds to their own bank accounts, isolated the victim from his family and longtime friends and provided the victim with drugs, including marijuana and LSD.
In the final days of the victim’s life, Flores and Moore allegedly gave the victim LSD, which caused his mental state to severely deteriorate. While the victim was under the influence of LSD, Flores allegedly changed the two-step authentication feature on the victim’s $60-million online brokerage account after previously changing the phone number listed on the account from the victim’s phone number to his own phone number.
Four days before the victim’s death and while the victim was still under the influence of LSD that defendants allegedly had provided to him, Flores then allegedly initiated two $1-million wires from the victim’s brokerage account to accounts that Flores controlled, including Flores’ personal bank account. Flores and Moore then left the victim, who by this time was in mental distress and had evicted them from his home. From a luxury hotel paid with the victim’s funds, Flores and Moore allegedly watched the victim’s deteriorating mental condition on the video cameras installed throughout the Malibu beach house.
In May 2018, the victim died in his Malibu home at the age of 57 years old. Following the victim’s death, Flores and Moore moved back into the victim’s Malibu beachfront home and allegedly withdrew large sums of money from his accounts. They allegedly also concealed information about the victim’s finances from his mother and sister, both of whom resided in Florida. This prompted the victim’s family to file a lawsuit, which uncovered the alleged fraud.
In the ensuing lawsuit in Los Angeles Superior Court, Flores and Moore allegedly violated multiple court orders ordering them to return the funds stolen from the victim. They allegedly attempted to launder the fraudulent proceeds by funneling the money through multiple different accounts to thwart the victim’s estate and court-appointed receiver from recouping the money. The lawsuit was settled with Flores and Moore agreeing to repay the victim’s estate $1 million, which they have so far failed to do.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted on all counts, Flores and Moore would face statutory maximum sentences of 20 years in prison for each fraud count, 20 years on the conspiracy to commit money laundering and laundering of monetary instruments counts, 10 years on transactional money laundering count, and a mandatory two-year prison sentence for the aggravated identity theft count.
The FBI and IRS Criminal Investigation investigated this matter.
Assistant United States Attorney Andrew M. Roach of the Cyber and Intellectual Property Crimes Section is prosecuting this case.
Grand Jury Charges Disbarred Plaintiffs’ Lawyer Tom Girardi with Wire Fraud for Allegedly Embezzling over $15 Million in Client MoneyRead the Press Release
LOS ANGELES – Former plaintiffs’ personal injury lawyer Thomas Vincent Girardi has been indicted by a federal grand jury for allegedly embezzling more than $15 million from several of his legal clients, the Justice Department announced today.
Girardi, 83, of Seal Beach, who owned the downtown Los Angeles-based Girardi Keese law firm, is charged with five counts of wire fraud, a crime that carries a statutory maximum sentence of 20 years in federal prison.
Girardi, a once-powerful figure in California’s legal community until creditors forced his law firm into bankruptcy in December 2020, is expected to appear on Monday, February 6 at the United States District Court for arraignment. The State Bar of California disbarred Girardi in July 2022.
Also charged in the indictment unsealed today is Christopher Kazuo Kamon, 49, formerly of Encino and Palos Verdes and who was residing in The Bahamas at the time of his November 2022 arrest on a federal criminal complaint. He remains in federal custody.
Kamon was the controller and chief financial officer of Girardi Keese from 2004 until December 2020. In this role, Kamon oversaw the law firm’s financial affairs, supervised its accounting department, and oversaw paying the firm’s expenses.
The indictment alleges that, from 2010 to December 2020, Girardi and Kamon fraudulently obtained more than $15 million that belonged to Girardi Keese clients.
“Mr. Girardi and Mr. Kamon stand accused of engaging in a widespread scheme to steal from their clients and lie to them to cover up the fraud,” said United States Attorney Martin Estrada. “In doing so, they allegedly preyed on the very people who trusted and relied upon them the most—their clients. Actions like the ones alleged in the indictment bring disrepute upon the legal profession and will not be tolerated by my office.”
“Mr. Girardi and Mr. Kamon allegedly created a mirage over several years in order to disguise the fact that they were robbing Girardi Keese clients of large sums of money” said Amir Ehsaei, the Acting Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The defendants exploited the hardships endured by their clients and took advantage of their unfamiliarity with the legal process while they denied victims what was rightfully due to them in order to fund their lavish lifestyles.”
“Thomas Vincent Girardi should have been a pillar to our community. Instead, he is accused of creating an elaborate scheme to mislead his clients, victimizing them for a second time,” said Special Agent in Charge Tyler Hatcher of the IRS Criminal Investigation’s Los Angeles Field Office. “Attorneys are put in a position of trust when they represent us during some of our most difficult times. Mistrust in the legal profession grows when clients can’t trust their attorneys to pay them the settlements intended to make them whole. IRS Criminal Investigation, along with federal prosecutors and our law enforcement partners, will continue to seek to keep the legal profession honest.”
In furtherance of their alleged scheme to defraud, Girardi negotiated settlements on behalf of clients, but then allegedly concealed the settlement’s true terms and lied about the disposition of the settlement proceeds.
Girardi and Kamon would allegedly cause the settlement proceeds to be deposited in or transferred to attorney trust accounts to which both men had access. Girardi and Kamon then embezzled and misappropriated settlement funds from these accounts for improper purposes, including paying other Girardi Keese clients whose settlement funds had previously been misappropriated and paying Girardi Keese’s payroll and other expenses. These additional expenses included credit card bills for Girardi and Kamon’s personal expenses.
To conceal the theft and misappropriation of client settlement money, Girardi and Kamon allegedly lied to clients, stating falsely, among other things, that the settlement money had not been paid. Girardi also allegedly falsely told clients that settlement proceeds could not be disbursed until certain purported requirements had been met, such as eliminating purported tax obligations, obtaining supposedly necessary authorizations from judges, and satisfying medical liens and other debts.
Girardi and Kamon allegedly also sent lulling payments to clients, falsely representing that the payments were “advances” on purportedly yet-to-be-received settlement proceeds that, in fact, had already been deposited in Girardi Keese accounts, or were “interest payments” on the settlement money that purportedly could not be paid to the clients until the fabricated requirements were met.
For example, in July 2019, Girardi negotiated a $17.5 million settlement of a lawsuit related to injuries sustained in a car accident by two clients and their child, who was paralyzed in the crash. The settlement agreement specified that the child’s portion of the settlement money would be placed in a trust and an annuity to be controlled by a third party, neither of which could be accessed by Girardi and Kamon.
The first installment of the settlement payment – $4 million – was transferred to a bank account that Girardi and Kamon controlled. Prior to that deposit, Girardi and Kamon allegedly transferred $1.45 million as a purported “advance” from the clients’ settlement funds. The indictment alleges that, in fact, this was money that came from different Girardi Keese clients. Girardi and Kamon then allegedly used the funds to pay for the law firm’s operating expenses unrelated to the car accident litigation.
On July 1, 2019, Girardi and Kamon allegedly caused a $2.5 million check that mostly was comprised of the car accident clients’ settlement money to be issued to a different client over half of whose $53 million settlement Girardi and Kamon had misappropriated years earlier.
In August 2019, a further payment of approximately $5,119,449 was deposited into a Girardi-controlled bank account. To lull the victim clients and prevent them from discovering that their settlement money had been misappropriated, Girardi and Kamon allegedly provided incremental lulling payments that comprised only a fraction of what the clients were owed.
Girardi also allegedly lied to the clients, telling them that the remaining settlement funds could only be paid after medical liens had been satisfied, court proceedings had concluded and Girardi had flown to Washington, D.C., to meet with government officials to remove the settlement’s tax liability. In fact, all of this information was false and Girardi had embezzled their settlement money, the indictment alleges.
In a separate matter, on January 19, Kamon was charged via information with wire fraud for allegedly embezzling funds in Girardi Keese’s custody and control and using them for his personal expenses, including for renovations on Kamon’s personal residences in Palos Verdes and Encino, travel, shopping and escort services. Trial in that matter is scheduled for March 14.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
IRS Criminal Investigation and the FBI are investigating this matter. The Office of the United States Trustee is providing assistance.
Assistant United States Attorneys Scott Paetty and Ali Moghaddas of the Major Frauds Section are prosecuting this case.
Grain Valley Man Sentenced to 15 Years for Meth TraffickingRead the Press Release
KANSAS CITY, Mo. – A Grain Valley, Mo., man who had been released from federal prison in a prior drug-trafficking case less than three months before his arrest was sentenced in federal court today for possessing methamphetamine with the intent to distribute.
Jason Rowland, 43, was sentenced by U.S. District Judge Greg Kays to 15 years in federal prison without parole. Today’s sentence includes a prison term of four years and nine months for violating his supervised release in a prior case.
Rowland was on federal supervised release at the time of this offense. He was released from federal prison on Jan. 29, 2021, after being convicted of possessing methamphetamine with the intent to distribute and carrying a firearm during a drug-trafficking crime. After his release from prison, Rowland was placed on GPS monitoring, which revealed he was making several stops at numerous gas stations and residences on a daily basis.
On April 16, 2021, officers from the U.S. Probation Office conducted a search of Rowland’s hotel room in Grain Valley. Probation officers found approximately 97 grams of methamphetamine, a loaded Smith and Wesson 9mm semi-automatic handgun, a 9mm magazine loaded with seven rounds of ammunition, two cell phones, two laptop computers, two digital scales, and $1,920 in cash.
On June 22, 2022, Rowland pleaded guilty to one count of possessing methamphetamine with the intent to distribute.
According to court documents, this case is Rowland’s ninth felony offense. He committed seven of his felony offenses while on community supervision.
This case was prosecuted by Assistant U.S. Attorney Ashleigh Ragner. It was investigated by the U.S. Probation Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Former Saratoga County Resident Sentenced for Money Laundering ConspiracyRead the Press Release
ALBANY, NEW YORK – Christopher L. Vandermark, age 57, formerly of Gansevoort, New York, now a resident of Endicott, New York, was sentenced today to 5 years of probation following his guilty plea to a money laundering conspiracy designed to conceal proceeds from a multi-state unemployment insurance fraud scheme.
United States Attorney Carla B. Freedman and John Pias, Special Agent in Charge of the Detroit Field Office of the U.S. Department of Homeland Security, Office of Inspector General (DHS-OIG), made the announcement.
At the time of his guilty plea, Vandermark admitted to corresponding via online messages for over a year with a co-conspirator who represented herself to be a woman living in North Carolina. The co-conspirator directed Vandermark to open accounts at multiple financial institutions, as well as provide her with routing details for his existing accounts. From June 2020 through early April 2021, Vandermark’s accounts received transfers of more than $88,000 in fraudulently obtained unemployment insurance benefits from six states. Vandermark purchased hundreds of gift cards from local retailers using the benefits, photographed the identifying numbers on the cards, and sent the photographs to the co-conspirator. After Vandermark provided the identifying numbers, the co-conspirator could sell the gift cards online as part of an effort to conceal the original source of the funds.
Vandermark admitted that he received and ignored multiple warnings from multiple financial institutions that his actions furthered an unemployment insurance fraud scheme. Additionally, when law enforcement agents interviewed Vandermark regarding approximately $37,000 in fraudulently obtained unemployment insurance benefits transferred to his account at a local bank, Vandermark falsely denied holding the account and receiving the funds. Following the law enforcement interview, Vandermark opened yet another financial account and received an additional $13,734 in benefits from three states, which he used to purchase more gift cards that he photographed and sent to his co-conspirator.
Senior United States District Judge Gary L. Sharpe also ordered Vandermark to pay restitution in the amount of $13,734, and to forfeit the same amount of money as proceeds of his crime.
DHS-OIG investigated the case, with assistance from the Social Security Administration Office of the Inspector General and the Office of the New York State Comptroller. Assistant U.S. Attorney Jonathan S. Reiner prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Former Prisoner Transport Officer Sentenced for Civil Rights OffenseRead the Press Release
A former prisoner transport officer was sentenced today to 24 months in federal prison, followed by one year of supervised release, for violating the civil rights of pretrial detainees entrusted to his care.
On Sept. 28, 2022, a federal jury convicted Anthony Buntyn, 55, a former prisoner transport officer, of violating the civil rights of pretrial detainees in his custody. Specifically, the jury convicted Buntyn of being deliberately indifferent to conditions on the prisoner transport van that posed a risk of serious harm to the health and safety of the detainees entrusted to his care. The jury further found that Buntyn’s deliberate indifference to the conditions on the prisoner transport van resulted in bodily injury to one of the pretrial detainees who had been on the van for several days.
According to court documents and the evidence introduced at trial, Buntyn was a prisoner transport officer employed by Prisoner Transportation Services of America (PTS), a company hired by local jails and prisons throughout the country to transport people who had been arrested pursuant to out-of-state warrants and needed to be transported back to the states that had issued the warrants. Buntyn was the supervising officer on a March 2017 PTS transport that stopped in New Mexico during a cross-country trip. Evidence at trial established that Buntyn knowingly created, and otherwise subjected the detainees to, dangerous, painful and unhealthy conditions on the prisoner transport van. Specifically, evidence at trial showed that Buntyn would retaliate against detainees who complained of transport conditions by handcuffing the detainees behind their backs and forcing them to remain for hours in a small segregation cage inside the van, depriving detainees of meals and access to water while they remained in the cage, cranking up the heat in the already-hot van in retaliation for detainees complaining that, as they passed through the southwestern desert, they were in danger of overheating, and failing to provide the detainees with required restroom breaks until the detainees were left with no choice but to urinate in empty bottles or on the floor.
“Prisoner transport officers, even when they are employed by private companies, must abide by the laws and protect the constitutional rights of the people in their custody,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The department will continue to vigorously enforce our nation’s laws to ensure that officers who break the law — including those who are driving the nation’s backroads in prisoner transport vans and may therefore wrongly believe they can act with impunity — are held accountable.”
“Detainees are entitled to basic human dignity,” said U.S. Attorney Alexander M.M. Uballez for the District of New Mexico. “Those who are responsible for their detention, from transport personnel to law enforcement and corrections officers, have the same duty to protect the rights and safety of their charges. Any abuse of detainees or failure to provide basic necessities is a violation of that trust and a violation of the law, and it will be roundly prosecuted.”
“During the cross-county transport of these individuals, a stop was made by the PTS at the Shawnee County Detention Center in Topeka, Kansas. If not for the Detention Center notifying the FBI of the detainees’ condition upon arrival, the FBI may have never known or been able to seek justice for these victims. Buntyn’s actions disparage the very core of what he was employed to do – protect these individuals while in his custody,” said Special Agent in Charge Charles Dayoub of the Kansas City Field Office. “He knowingly disregarded the detainees’ basic civil rights, putting these individuals in harm’s way. Today’s sentencing demonstrates the FBI’s unique ability to conduct a successful nationwide investigation alongside our law enforcement partners.”
Buntyn was acquitted of a use of force and an obstruction of justice charge.
Assistant Attorney General Clarke, U.S. Attorney Uballez and Special Agent in Charge Dayoub made the announcement.
This FBI Kansas City Field Office investigated the case.
Assistant U.S. Attorney Kimberly A. Brawley for the District of New Mexico and Trial Attorney Laura Gilson of the Civil Rights Division’s Criminal Division, with assistance from Special Litigation Counsel Samantha Trepel, prosecuted the case.
Felon Found with Semiautomatic Rifle, Meth and Marijuana Sentenced to 9 Years in Federal PrisonRead the Press Release
A Sioux City man who was stopped with a semiautomatic rifle, a handgun-style BB gun, methamphetamine and marijuana, was sentenced January 31, 2023, to 9 years in federal prison.
Jo’Mario Smith, age 35, from Sioux City, Iowa, received the prison term after a September 15, 2022, change of plea hearing.
Evidence in the case revealed Smith was unlawfully in possession of the firearm and ammunition on March 11, 2022. Smith’s criminal possession was discovered during a traffic stop for several violations. Smith was the operator and sole occupant of the vehicle. Upon officer’s contact with Smith, the odor of marijuana was emitting from the vehicle and a K-9 positively indicated for illegal narcotics as well.
During a search of the vehicle, officers located a semiautomatic rifle on the driver’s floorboard, near Smith’s feet, that had been spray painted to look like a toy. The barrel and stock had also been shortened. The rifle had a 25-round banana-style high-capacity magazine fully seated with a round chambered. The magazine contained 11 additional rounds. Officers also located a handgun-style BB gun, 4 separate plastic bags containing illegal drugs, and a live shotgun shell. Two of the four plastic bags contained a total of, roughly, 3.8 grams of crystalline substance, each of which field tested positive as methamphetamine. The two other bags contained 31.82 grams of methamphetamine and 33.99 grams of methamphetamine, respectively. Additionally, officers located a plastic bag containing roughly 3.5 grams of marijuana.
Smith has a lengthy criminal history beginning at the age of 17. His crimes include theft, domestic abuse/battery, resisting arrest, weapons, drugs, armed robbery/burglary, violence, and other dangerous conduct.
Smith was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand to 108 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is 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.
Smith is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Sioux City, Iowa Police Department and was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-04034.
Follow us on Twitter @USAO_NDIA.
Federal Prisoner Convicted of Robbing Banks on Weekend Passes from Halfway House Sentenced to 20 YearsRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron today sentenced LaTavis Deyonta Mackroy (29, Orlando) to 20 years in federal prison for three bank robberies and an attempted bank robbery. A federal jury had found Mackroy guilty after a trial on November 4, 2022.
According to court documents and evidence presented during the three-day trial, Mackroy was a federal prisoner residing at a halfway house in Orlando. After staying at the halfway house for more than a month, Mackroy was given a home pass which allowed him to spend the weekend with his family. On April 16, 2022, while on his home pass, Mackroy robbed the Fairwinds Credit Union in Winter Park by passing a demand note and threatening the teller. He left the credit union with $3,231 and returned to the halfway house the following day. The next weekend, Mackroy was again given a home pass. He robbed one bank on Friday, one bank on Saturday, and attempted to rob another bank on Saturday, which was not successful. During the robbery on Friday, April 22, 2022, Mackroy took $4,000 from a teller at Chase Bank in Kissimmee, after passing her a threatening demand note. The following day, he robbed the TD Bank in Winter Park and took $2,820. During the final robbery at a Regions Bank in Orange City, the teller walked away from his station after reading the demand note, which caused Mackroy the flee the bank empty-handed.
Although he wore a face mask and sunglasses to conceal his identity during all four robberies, Mackroy failed to retrieve the demand note after the final, attempted robbery at the bank in Winter Park. That note was processed for fingerprints and contained four prints matching Mackroy’s fingerprints which were on file with the FBI. An ensuing investigation revealed additional evidence showing Mackroy’s presence at all four robbery scenes, including clothing retrieved from Mackroy at the halfway house that matched the clothes on the bank surveillance videos, location data from the cellphone Mackroy was carrying at the time of the arrest, and location data from the car Mackroy was driving at the time of the arrest. At the time of the April 2022 robbery spree, Mackroy was still serving a federal sentence for a robbery of a pawn shop in Apopka in 2014.
During the sentencing hearing, the court enhanced Mackroy’s sentence because of his extensive criminal history, because he threatened one teller by stating that he had a gun in the note he presented, and because in 2014 and 2022, Mackroy obstructed legal proceedings by taking the witness stand in pre-trial proceedings and lying about his involvement in the robberies.
This case was investigated by the Federal Bureau of Investigation with assistance from the Winter Park Police Department, the Osceola County Sheriff’s Office, the Orange City Police Department, and the Seminole County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Dana E. Hill and Michael P. Felicetta.
Federal Judge Sentences Naturalized Citizen for Lying to Obtain U.S. CitizenshipRead the Press Release
CHARLOTTE, N.C. – Today in federal court, U.S. District Judge Kenneth D. Bell ordered Herbert Leonel Diaz, 53, a naturalized citizen of the United States who was born in El Salvador and previously resided in Henderson, N.C., to serve eight months in prison for naturalization fraud, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Judge Bell ordered Diaz’s federal sentence to be served concurrent with the 35-year prison term Diaz is currently serving in California for committing sexual offenses against a child.
U.S. Attorney King is joined in making today’s announcement by Sean Ervin, Field Office Director of U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations Division (ICE-ERO).
According to court documents, trial evidence, and witness testimony, from December 2003 to August 2006, while residing in Corona, California, Diaz committed numerous sexual offenses against a child. In August 2006, the victim reported Diaz’s crimes to law enforcement. The following day, Diaz fled California and moved to Henderson, N.C. In November 2010, while residing in Henderson, Diaz submitted an application for naturalization to U.S. Citizenship and Immigration Services (CIS). Court documents show that Diaz lied on the application form by responding “No” to the question “Have you ever committed a crime or offense for which you were not arrested?” Diaz signed the form under penalty of perjury, and certified that his answers were true and correct. On March 2, 2011, Diaz appeared at the CIS office in Charlotte for a naturalization interview. During the interview, Diaz swore under oath that he had never committed a crime for which he had not been arrested. On March 30, 2011, at the CIS office in Charlotte, Diaz participated in a naturalization ceremony and was granted U.S. citizenship.
In 2012, North Carolina law enforcement arrested Diaz on an outstanding warrant related to his sexual crimes against a child and he was extradited to California. In 2014, Diaz pleaded guilty to five counts of lewd acts with a child and was sentenced to 35 years in prison.
In September 2021, U.S. District Court Judge Kenneth D. Bell found Diaz guilty of naturalization fraud following a bench trial. The conviction for naturalization fraud will result in an automatic revocation of Diaz’s citizenship.
In making today’s announcement, U.S. Attorney King thanked ICE-ERO for their investigation of the case and credited Operation False Haven which led to Diaz’s conviction. False Haven is an initiative by ICE-ERO to identify convicted sex offenders and other egregious individuals who fraudulently obtained U.S. citizenship.
Assistant U.S. Attorney Kenneth Smith of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Federal Jury Finds Casper Man Guilty on Six Counts of Child PornographyRead the Press Release
United States Attorney Nicholas Vassallo announced today that SALVADOR SALAS, JR., age 32, of Casper, Wyoming, was found guilty by a federal jury on one count of possession of child pornography and five counts of production of child pornography. The trial lasted three days, January 23-25, 2023, before Chief United States District Court Judge Scott W. Skavdahl in Casper. Sentencing has been set for April 14, 2023.
According to court documents and evidence presented at trial, Salvador Salas Jr. was a longtime family friend who requested the minor victim, a 13-year-old girl, babysit in his home. While at Salas’s home, the girl’s mother called to check in on her frequently. Salas said the girl had developed an allergic reaction to something she ate, and he had given her allergy medication. Salas then sent the girl home in an Uber in the early morning hours. When the minor victim returned home, she showed obvious signs of illicit substance intoxication and appeared to have burns on her lips. Her mother sought emergency medical treatment at a local hospital where the girl was diagnosed with methamphetamine intoxication. It was then discovered that the girl had been sexually assaulted. The mother reported to the police that the minor victim had been with Salas at his home.
The Casper Police Department executed a search warrant at Salas’s home for evidence of drugs. Officers recovered methamphetamine, paraphernalia associated with methamphetamine use, cocaine, and buprenorphine. While there, officers developed probable cause to believe that Salas had taken sexually explicit images of the minor victim. Officers then executed a second search warrant and seized Salas’s electronic devices. The Wyoming Internet Crimes Against Children Task Force (ICAC) reviewed the devices and located child pornography, which had been downloaded from the internet, on Salas’s laptop and external hard drive. The downloaded child pornography featured graphic sexual abuse of prepubescent children. On Salas’s cellphone, ICAC Task Force members located additional child pornography, including video recordings and images of Salas sexually abusing the minor victim. In the audio that accompanies the videos, Salas can be heard repeatedly remarking that the victim was 13 years old. In addition to the video and photographic evidence, the Wyoming State Crime Laboratory recovered semen and Salas’s DNA from the victim’s underwear. When interviewed by law enforcement, Salas admitted that he engaged in sex acts with the minor victim and recorded it using his cellphone.
This case was investigated by Homeland Security Investigations, the Federal Bureau of Investigation, the Wyoming Division of Criminal Investigation, and the Casper Police Department. It was prosecuted by Assistant United States Attorneys Christyne M. Martens and Stephanie I. Sprecher.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat child sexual exploitation and abuse. 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.justice.gov/psc.
Case Number: 0:21-CR-00077-SWS
Erie Man Gets 10 Years for Conspiring to Distribute Cocaine, Fentanyl Pills and MethRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 10 years on his conviction of violating federal narcotics laws, United States Attorney Cindy K. Chung announced today.
United States District Judge Susan Paradise Baxter imposed the sentence on Vincent Andrew Feliciano, 32.
According to information presented to the court, Feliciano and others engaged in a conspiracy to distribute multi-kilogram quantities of cocaine, approximately 1.7 kilograms of blue fentanyl pills (an estimated 15,000 pills), and methamphetamine within the Western District of Pennsylvania from in and around February 2022 and continuing thereafter to in or around May 2022. During this time, Vincent Feliciano traveled from Pennsylvania to Arizona to facilitate his criminal enterprise involving the distribution of illegal narcotics in Pennsylvania including four hundred grams or more of fentanyl.
Assistant United States Attorney Paul S. Sellers prosecuted this case on behalf of the government. Assistant United States Attorney Sellers highlighted the dramatic rise, in recent years, of the trafficking of blue fentanyl pills, the increased potency and lethality of these pills, and the high profit margins enjoyed by drug distributors on the sale of fentanyl.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Chung commended the Federal Bureau of Investigation’s Erie Area Gang Law Enforcement (EAGLE), Safe Streets Task Force, which is comprised of investigators from the FBI, the Erie Police Department, the Pennsylvania State Police, the Oil City Police Department, the Titusville Police Department, the Franklin Police Department, and the United States Postal Service Office of Inspector General, in coordination with the United States Postal Inspection Service, the Internal Revenue Service, the Erie County Detectives, and the Millcreek Police Department for the investigation leading to the successful prosecution of Feliciano.
The investigation was also conducted in association with the Northwest Pennsylvania Drug Initiative which was formed following Erie County’s designation as a High Intensity Drug Trafficking Area (HIDTA) in 2021. The HIDTA program was created by Congress in 1988 to coordinate and assist Federal, State, and Local law enforcement agencies in addressing regional drug threats with the purpose of reducing drug trafficking and drug production in the United States. The Northwest Pennsylvania Drug Initiative coordinates personnel and resources between multiple agencies including the Pennsylvania State Police, Federal Burau of Investigation, Erie Police Department, Erie County District Attorney’s office, Erie County Detectives, United States Postal Inspection Service, the EAGLE Task Force, and other participating agencies.
Elk Point Man Sentenced for Possession of Child PornographyRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced an Elk Point, South Dakota, man convicted of Possession of Child Pornography. The sentencing took place on January 30, 2023.
Hector Paulin-Torres, age 34, was sentenced to 2.5 years in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Paulin-Torres was indicted by a federal grand jury in March of 2022. He pleaded guilty on September 23, 2022.
The conviction stemmed from an incident on September 18, 2021, when Paulin-Torres knowingly possessed digital files that contained child pornography. Paulin-Torres used his cellular phone to save the digital files containing images of a minor female engaging in sexually explicit conduct.
This case was investigated by Homeland Security Investigations, the Elk Point Police Department, and the Vermillion Police Department. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Paulin-Torres was immediately remanded to the custody of the U.S. Marshals Service.
District Man Sentenced to 84 Months in Prison for Pursuing a Stranger and Attempting to Rape HerRead the Press Release
Defendant Followed Victim Out of a Metro Station and Into an Apartment Building
WASHINGTON –Akiem Angelo Williams, 38, of Washington, D.C., was sentenced today to 84 months in prison for kidnapping and first-degree burglary, and 72 months for assault with intent to commit first-degree sexual abuse, for the September 6, 2020 assault on a stranger he pursued from the Georgia Avenue Metro station. The sentence was announced by U.S. Attorney Matthew M. Graves and Chief Robert Conte III, of the Metropolitan Police Department (MPD). The Honorable Judge Robert D. Okun ordered the sentences to run concurrently and also ordered 10 years of supervised release and a stay away from all WMATA Metrorail trains and stations. Williams will be required to register as a sex offender for life upon release..
Williams was found guilty on October 17, 2022 by a judge sitting in the Superior Court of the District of Columbia.
According to the government’s evidence, on Sept. 6, 2020, at approximately 1:57 p.m., Williams followed a woman out of the Georgia Avenue Metro station and chased her down the block into the lobby of an apartment building while she screamed for help. Inside, Williams cornered the victim, physically assaulted and attempted to rape her in front of three eyewitnesses before a witness yelled that he had called the police. Williams left the victim curled in a corner bleeding from the head, exited the building and headed back to the Metro where he sexually assaulted a Metro rider and then exposed himself. Another victim encountered Williams hours later when he, again, exposed himself on a Metro train. The defendant was identified through video surveillance at the Metro station and on the train.
In announcing the sentence, U.S. Attorney Matthew M. Graves and Chief Contee commended the work of those who investigated the case from the Sexual Assault Unit of the Metropolitan Police Department, and the Criminal Investigation Division of the Metro Transit Police Department. They also expressed appreciation for the critical assistance provided by the Metro Transit Digital Video Evidence Unit.
Finally, they acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Courtney Lee and Dana Joseph, who investigated and prosecuted the case, Assistant U.S. Attorney Yasmin Emrani, who reviewed evidence before trial, Appellate Chief Nicholas Coleman, Lead Paralegal Specialist ReShawn Johnson, Supervisory Paralegal Specialist Michelle Wicker, former SODV intern Lexi Nitishin, and Victim/Witness Advocate Tracey Hawkins.
Columbia Man Sentenced to 17 Years for Meth ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Mo., man and a Callaway County, Mo., man were sentenced in federal court today for their roles in a conspiracy to distribute methamphetamine in Boone and Callaway counties.
Jeremiah Joseph Foley, 41, of Columbia, Bradley Wayne Hensley, 40, of Callaway County, were sentenced in separate appearances before U.S. District Judge Stephen R. Bough. Foley was sentenced to 17 years in federal prison without parole. Hensley was sentenced to six years in federal prison without parole.
On June 30, 2022, Foley pleaded guilty to one count of conspiracy to distribute methamphetamine and one count of possessing a firearm in furtherance of a drug-trafficking crime. Foley admitted that he participated in a conspiracy to distribute methamphetamine in Boone and Callaway counties from Sept. 22, 2020, to April 5, 2021. Foley used two residences to store methamphetamine for distribution to his co-conspirators and others. He distributed methamphetamine to multiple customers, including Hensley, from each of these locations.
On July 19, 2022, Hensley pleaded guilty to his role in the drug-trafficking conspiracy. Hensley admitted that he purchased between 36 and 48 ounces of methamphetamine from Foley over a six-month period. Hensley also admitted that he distributed methamphetamine to others.
On Feb. 1, 2021, law enforcement officers executed a search warrant at Hensley’s residence and seized approximately 59.87 grams of methamphetamine, a loaded Glock handgun, body armor, and $577 in cash.
On April 5, 2021, Foley was asleep in the driver’s seat of a running truck at approximately 2:58 a.m., with a Sig Sauer .40-caliber semi-automatic handgun on his lap. Upon his arrest, officers searched the truck and seized approximately 200 grams of methamphetamine from a thermos, as well as 30 grams of cocaine, six pounds of marijuana, and two additional firearms. Law enforcement officers executed a search warrant at Foley’s property and seized approximately 55 grams of methamphetamine, a machine gun, two firearm suppressors, marijuana, additional firearms, tetrahydrocannabinol wax, THC edibles, ammunition, trail cameras and drug paraphernalia.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Columbia, Mo., Police Department, the Callaway County, Mo., Sheriff’s Department, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Cleveland Heights Man Sentenced to Prison for Role in Conspiracy that Stole and Resold VehiclesRead the Press Release
AKRON – Hakim Benjamin, 21, of Cleveland Heights, Ohio, was sentenced today by U.S. District Judge Sara Lioi to 27 months in prison after he pleaded guilty to his role in a conspiracy to steal, receive, and sell stolen vehicles.
According to court documents, from December 2021 to February 2022, Benjamin was part of a conspiracy that stole vehicles from car dealerships in Michigan and transported them to be resold in the Northern District of Ohio. Court documents state that Benjamin and his co-defendants targeted specific vehicles to steal and purchase, including the Dodge Durango, Dodge Ram TRX, Dodge Hellcat, Audi 8, and others.
Also charged in this matter as co-defendants are Jaylen Harris, Lavelle Jones, and Devin Rice. Harris, Jones, and Rice were charged in an indictment in June 2022. The case involving the co-defendants remains ongoing.
In addition to the prison sentence, Judge Lioi ordered Benjamin to pay $1,203,445 in restitution to be paid jointly with other defendants.
This case was investigated by the Cleveland FBI, United States Postal Inspection Service (USPIS), Ohio State Highway Patrol, Ohio Bureau of Motor Vehicles, Cuyahoga County Criminal Investigators, Beachwood Police Department, and the Shaker Heights Police Department.
This case was prosecuted by Assistant U.S. Attorneys Kathryn G. Andrachik and Jason W. White.
Chicopee Man Pleads Guilty to Child Pornography ChargesRead the Press Release
BOSTON – A Chicopee man pleaded guilty today in Springfield to receiving and possessing child sexual abuse material (CSAM).
Thomas Stemmer, 60, pleaded guilty to one count each of receipt and possession of child pornography. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for May 15, 2023. Stemmer was indicted by a federal grand jury in September 2019.
In 2015, Stemmer received and possessed CSAM, including images and videos, which he downloaded using an encrypted network. The CSAM included prepubescent minors who had not attained 12 years of age.
The charge of receipt of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison, at least five years of supervised release, and a fine of up to $250,000. The charge of possession of child pornography involving an image of child pornography involving a prepubescent minor or a minor who had not attained 12 years of age provides for a sentence of up to 20 years in prison, at least five years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Joseph Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division, made the announcement today. Assistant U.S. Attorney Catherine G. Curley of Rollins’ Springfield Branch Office is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Charleston Woman Pleads Guilty to COVID-19 Relief Fraud SchemeRead the Press Release
CHARLESTON, W.Va. – Tiffany Bowlin, 33, of Charleston, pleaded guilty today to a scheme to defraud the Paycheck Protection Program (PPP) of $20,833 in COVID-19 relief loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
According to court documents and statements made in court, on April 27, 2021, Bowlin applied for a PPP loan for her purported sole proprietorship, a hair salon operating under the business name “Tiffany Bowlin.” Bowlin admitted that she falsely stated that “Tiffany Bowlin” was established in 2019, when it in fact was not a legitimate business and had not engaged in substantial business activities on or before February 15, 2020. Bowlin further admitted that she submitted a false IRS Form 1040, Schedule C, stating that “Tiffany Bowlin” received $106,600 in gross income in 2020.
The CARES Act, enacted in March 2020, offered emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic. This assistance included forgivable loans to small businesses for job retention and certain other expenses through the Paycheck Protection Program. Businesses applying for PPP loans had to certify that the business was in operation on February 15, 2020, and were required to provide documentation showing their prior gross income from either 2019 or 2020.
Bowlin submitted the loan application electronically from West Virginia and it was uploaded to servers in Kansas for processing. Bowlin’s loan application was approved and she received $20,833 via an electronic transfer to her personal bank account on May 13, 2021. Bowlin admitted that she spent the fraudulently obtained money to benefit herself personally and not for authorized business expenses.
On March 2, 2022, Bowlin applied to have the PPP loan forgiven even though she had not spent the loan proceeds on permissible business expenses. The SBA forgave Bowlin’s PPP loan on or about March 9, 2022.
Bowlin pleaded guilty to wire fraud and is scheduled to be sentenced on May 4, 2023. Bowlin faces a maximum penalty of 20 years in prison, three years of supervised release, and a $250,000 fine. Bowlin also owes $20,833 in restitution.
United States Attorney Will Thompson made the announcement and commended the investigative work of the West Virginia State Police-Bureau of Criminal Investigation (BCI), and the Litigation Financial Analyst with the U.S. Attorney’s Office.
Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Ryan Blackwell is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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-205.
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Career Offender Sentenced to 151 Months in PrisonRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Jose Rodriguez-Quinones, 42, of Rochester, NY, who was convicted of possession with intent to distribute cocaine and fentanyl and being a felon in possession of a firearm, was sentenced to serve 151 months in prison by U.S. District David G. Larimer.
Assistant U.S. Attorney Douglas E. Gregory, who handled the case, stated that on March 10, 2022, members of the U.S. Marshals Fugitive Task Force apprehended Rodriguez-Quinones on an outstanding arrest warrant for absconding from post-release supervision by the United States Probation Office. Rodriguez-Quinones was on post-release supervision after serving a 10-year prison sentence for conspiracy to distribute cocaine. Rodriguez-Quinones was in a vehicle when he was discovered by task force members. During a search of the vehicle, law enforcement recovered 400 baggies of cocaine and 604 baggies of fentanyl, all packaged for street level distribution, two loaded handguns and approximately $2,900 in cash. Rodriguez-Quinones was convicted of felony offenses in 2000 and 2006 in New York State Court and is legally prohibited from possessing a firearm.
The sentencing is the result of an investigation by the U.S. Marshals Service, under the direction of Marshal Charles Salina, the United States Probation Office, under the direction of Chief Probation Officer Timothy C. Englerth, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. DeVito.
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Canton Man Sentenced to 57 Months in Prison for Conspiracy to Possess with Intent to Distribute MethamphetamineRead the Press Release
Jackson, Miss. – A Jackson man was sentenced to 57 months in federal prison followed by 5 years of supervised release for conspiracy to possess with intent to distribute methamphetamine, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
Sedric Armstrong a/k/a Black Sed, 48, was sentenced in U.S. District Court in Jackson.
According to court documents, on July 6, 2020, a confidential source made prior arrangements with Armstrong for the purchase of a pound of methamphetamine. Armstrong directed the confidential source to pick up the methamphetamine from co-defendant James Lee Simmons. The confidential source met with and provided Simmons with $3,000 in exchange for the methamphetamine.
The case is the result of an extensive investigation, dubbed “Hailstorm,” which began as an operation targeting illegal drug trafficking in the Jackson, Mississippi area. “Hailstorm” 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.
The case was investigated by the Federal Bureau of Investigation and the Jackson Police Department.
California Attorneys Charged with Misappropriating Settlement Funds Intended for Relatives of Victims of Lion Air Flight 610Read the Press Release
CHICAGO — Two California attorneys were indicted today on federal fraud charges for allegedly misappropriating more than $3 million in settlement funds intended for relatives of victims killed in the crash of Lion Air Flight 610.
An indictment returned in U.S. District Court in Chicago charges attorneys THOMAS V. GIRARDI, 83, of Pasadena, Calif., and DAVID R. LIRA, 62, of Pasadena, Calif., both of whom worked for the California law firm Girardi Keese, with eight counts of wire fraud and four counts of criminal contempt of court. The indictment also charges a third defendant, CHRISTOPHER K. KAMON, 49, of Palos Verdes, Calif., and Encino, Calif., who worked as Girardi Keese’s head of accounting and finance, with the same offenses. Arraignments in federal court in Chicago have not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorneys Corey B. Rubenstein and Emily Vermylen.
“The substantial misappropriation alleged in this indictment compounded the grief and anguish of the clients who lost loved ones in the Lion Air crash,” said U.S. Attorney Lausch. “Attorneys who violate the trust of their clients and breach a fiduciary duty that is paramount to the practice of law must be held accountable.”
“The victims of this crime placed their faith in their attorneys during a time of great vulnerability,” said FBI SAC Wheeler. “Taking advantage of victims of tragedy is a despicable act, and we will continue to seek justice for anyone who takes advantage of innocent Americans in their hour of need.”
According to the indictment, Girardi and Lira, through Girardi Keese, represented five clients who were relatives of passengers killed in the 2018 crash in the Java Sea. Girardi Keese filed lawsuits in federal court in Chicago against the plane’s manufacturer, Boeing Co., and settled the suits in 2020. Boeing’s counsel wired the settlement funds to Girardi Keese’s trust account, with most of the money intended for the clients. The charges allege that Girardi, Lira, and Kamon misappropriated more than $3 million of the settlement funds by diverting the money for improper purposes, including paying the firm’s payroll and operating expenses, and funding settlements to other Girardi Keese clients, whose own settlement funds had been misappropriated by the firm.
Girardi, Lira, and Kamon fraudulently attempted to conceal their misappropriation from the clients, the indictment states. At one point they falsely told the clients that the Covid‑19 pandemic prevented the firm from distributing the settlement funds, while at other times they falsely claimed that “serious issues” had arisen with Boeing that delayed the distributions, the indictment states. The defendants made the false claims knowing Girardi Keese had already received the settlement funds from Boeing, the indictment states.
The indictment seeks forfeiture from the defendants in the amount of $3,069,500.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines. Each count of wire fraud is punishable by up to 20 years in federal prison, while the maximum penalty for each contempt count is determined by the Court.
Burke County Man Is Sentenced to 10 Years for Trafficking MethamphetamineRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell sentenced Sebastian Lefevers, 29, of Connelly Springs, N.C., to 120 months in prison followed by five years of supervised release for trafficking methamphetamine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
According to filed court documents and court proceedings, as early as February 2018, law enforcement began investigating Lefevers for trafficking methamphetamine. Over the course of the investigation, law enforcement utilized a confidential source to arrange the purchase of methamphetamine from Lefevers. The defendant was arrested when he came at an agreed upon location to finalize the drug transaction. At the time of the arrest, law enforcement recovered three ounces of one hundred percent pure methamphetamine from Lefevers.
According to court documents, law enforcement obtained search warrants for Lefevers’s residence and a trailer, from which they seized nearly two kilograms of marijuana packaged in four vacuum-sealed bundles; a vacuum sealer, plastic baggies, and digital scale, all for packaging and distributing narcotics; four firearms and ammunition; and over $3,500 in drug proceeds. Over the course of the investigation, investigators determined that Lefevers was responsible for trafficking more than 13 kilograms of methamphetamine in Catawba County and the surrounding counties.
On March 30, 2022, Lefevers pleaded guilty to conspiracy to possess with intent to distribute methamphetamine. Lefevers remains 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 Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Watauga County Sheriff’s Office, the Burke County Sheriff’s Office and the Hickory Police Department for their investigation of the case.
Assistant United States Attorney Taylor G. Stout of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Broome County Man Pleads Guilty to Making Interstate Threats to Member of CongressRead the Press Release
SYRACUSE, NEW YORK – Joseph F. Morelli, 51, of Endicott, New York pled guilty today to making threatening phone calls from his home in Endicott, New York to the voicemail in the office of a member of Congress in Washington, D.C.
United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI) made the announcement.
As part of his guilty plea, Morelli admitted to that on March 3, 2022, he placed a telephone call to the Washington, D.C. office of a member of the U.S. House Representatives that said in part, ““I'm gonna have to take your life into my own hands… I'm gonna hurt you. Physically, I’m gonna harm you.”
A second voicemail message on March 3, 2022, said in part, “I'm gonna have to show you, to your face, right up front, what violence truly is, and I don't think you're gonna like it.… I can pay someone 500 bucks to take a baseball bat and crack your skull. …You are going to get f**king physically hurt.”
A third voicemail message on March 3, 2022, included, “you're gonna cause people to get hurt, so I'm gonna have to hurt you physically. … I'm gonna make sure that, even if they lock me up, someone's gonna get you ‘cause I'll pay them to.”
At sentencing on June 1, 2023, Morelli faces up to 5 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The Federal Bureau of Investigation (FBI) and the United States Capitol Police are investigating the case. Assistant U.S. Attorney Richard Southwick is prosecuting the case.
Bloomington Man Sentenced to over 5 Years in Federal Prison for Trafficking Fentanyl from California Using U.S MailRead the Press Release
INDIANAPOLIS- Jacob Magness, 23, of Bloomington, Indiana, was sentenced to 70 months in federal prison for possession and distribution of fentanyl and other controlled substances
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According to court documents, on November 1, 2021, the U.S. Postal Inspection Service was alerted to a suspicious package with a nonexistent return address coming from California. The package was addressed to Jacob Magness’s Bloomington residence. On November 2, 2021, Indiana State Police examined the package and found it to contain approximately 211 grams of fentanyl pills, 110 grams of counterfeit Xanax pills, and 4 grams of LSD gel. Magness ordered and tracked the drugs via Snapchat.
On November 3, 2021, Bloomington Police Department officers executed a search warrant at Magness’s Bloomington residence. Officers located $2,251 in cash, approximately 20 fentanyl pills, approximately 13 ecstasy pills, approximately 5 grams of cocaine, 11 firearms, and multiple high-capacity magazines.
“Fentanyl traffickers value profits far more than the lives they are putting in danger,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “They will use any means necessary, including the U.S. Postal Service, to satisfy their greed and exploit substance abuse. I commend the work of the USPIS, ISP, and the Bloomington PD in curtailing this defendant and saving lives in the process.”
“What we have here today is a perfect example of what happens when different law enforcement agencies pool their resources and expertise to achieve a common goal to protect the citizens of Indiana from the illegal and dangerous drugs. It is our duty as postal inspectors to go after those individuals who attempt to ship illicit drugs through the US Mail. Our goal to protect the nation’s mail system from criminal misuse was achieved through our partnership with Indiana State Police and Bloomington Police Department.” Rodney M Hopkins, Postal Inspector in Charge, Detroit Division.
USPIS investigated this case with valuable assistance provided by the Bloomington Police Department and ISP. The sentence was imposed by U.S. District Court Judge Sarah Evans Barker. Judge Barker also ordered that Magness be supervised by the U.S. Probation Office for 4 years following his release from federal prison. Additionally, Magness is subject to a $500.00 fine.
U.S. Attorney Myers thanked Assistant United States Attorney Patrick G. Gibson, who prosecuted this case.
According to the Drug Enforcement Administration, as little as two milligrams of fentanyl can be fatal, depending on a person’s body size, tolerance, and past usage. One kilogram of fentanyl has the potential to kill 500,000 people. 6 out of 10 illegal fentanyl tablets sold on U.S. streets now contain a potentially lethal dose of the drug.
One Pill Can Kill: Avoid pills bought on the street because One Pill Can Kill. Fentanyl is a highly potent opioid that drug dealers dilute with cutting agents to make counterfeit prescription pills that appear to be Oxycodone, Percocet, Xanax, and other drugs. Fentanyl is used because it’s cheap. Small variations in the quantity or quality of fentanyl in a fake prescription pill can accidentally create a lethal dosage. Fentanyl has now become the leading cause of drug poisoning deaths in the United States. Fake prescription pills laced with fentanyl are usually shaped and colored to look like pills sold at pharmacies, like Percocet and Xanax. For example, fake prescription pills known as “M30s” imitate Oxycodone obtained from a pharmacy, but when sold on the street the pills routinely contain fentanyl. These particular pills are usually round tablets and often light blue in color, though they may be in different shapes and a rainbow of colors. They often have “M” and “30” imprinted on opposite sides of the pill. Do not take these or any other pills bought on the street – they are routinely fake and poisonous, and you won’t know until it’s too late.
Beavercreek man sentenced to 10 years in prison for attempting to travel overseas to join ISIS-KRead the Press Release
DAYTON, Ohio – A Beavercreek, Ohio, man who was arrested by the FBI’s Joint Terrorism Task Force at John Glenn International Airport in 2018 while trying to travel to Afghanistan to join ISIS or ISIS- Khorasan (ISIS-K) was sentenced today in federal court.
Naser Almadaoji, 23, an Iraqi-born United States citizen, was sentenced to 120 months in prison and 15 years of supervised release.
Almadaoji pleaded guilty in November 2021 just before his jury trial was scheduled to begin. He admitted to attempting to provide material support – himself, as personnel – to foreign terrorist organizations, namely ISIS and ISIS-K.
“Almadaoji was not just an ideological supporter of terrorism, he attempted to train to fight, assassinate, kidnap and kill, in hopes of employing violence in America on behalf of ISIS,” said U.S. Attorney Kenneth L. Parker. “Thanks to the FBI and our other law enforcement partners, Almadaoji was ultimately unsuccessful in his plan to become a human weapon and will now spend a decade in federal prison.”
“Mr. Almadaoji was stopped by the FBI’s Joint Terrorism Task Force while attempting to join ISIS and learn the deadly methods of terrorists,” stated FBI Cincinnati Special Agent in Charge J. William Rivers. “The FBI’s Joint Terrorism Task Force, and our partners, will continue to work to protect the community from those determined to support terrorism and plan violent attacks.”
According to court documents, Almadaoji purchased a plane ticket for travel on October 24, 2018, and was arrested by FBI Joint Terrorism Task Force officers after checking in and obtaining his boarding pass.
The defendant intended to travel to Astana, Kazahkstan, where he planned to be smuggled into Afghanistan so that he could join and receive military training from ISIS-K in support of both that terrorist group and ISIS.
Almadaoji explained to an individual whom he believed to be an ISIS supporter that he wanted “weapons experts training, planning and executing, hit and run, capturing high value targets, ways to break into homes and avoid security guards. That type of training.” He began making travel plans in September 2018.
Prior to that, between February 16 and 24, 2018, Almadaoji traveled to Egypt and Jordan for the purpose of joining ISIS’s affiliate in the Sinai Peninsula, ISIS Wilayat Sinai, another designated foreign terrorist organization, but he ultimately was unsuccessful.
Almadaoji told an individual posing as an ISIS supporter online about his proposed plot to start a conflict in the United States between the federal government and anti-government militias. He asked the purported ISIS supporter for a guide on how to make a car bomb.
In August 2018, Almadaoji also told the purported ISIS supporter that he was “always willing” to assist with “projects” in the United States.
Almadaoji recorded and sent a video of himself wearing a headscarf and pledging allegiance to the leader of ISIS.
In addition, Almadaoji translated a purported ISIS document from Arabic to English, telling his contact, “Don’t thank me . . . it’s my duty.”
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Matthew G. Olsen, Assistant Attorney General, Department of Justice National Security Division; J. William Rivers, Special Agent in Charge of the Cincinnati Division of the FBI; Alan J. Hill, Oakwood Public Safety Director; and Greene County Sheriff Scott Anger announced the sentence imposed today by Senior U.S. District Judge Walter H. Rice.
Assistant United States Attorney Nicholas A. Dingeldein and Trial Attorney Justin Sher of the National Security Division’s Counterterrorism Section are representing the United States in this case.
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Arrest of Christopher D. Bruey for Traveling with A Minor Across State Lines for Criminal Sexual ActivityRead the Press Release
KNOXVILLE, Tenn. - Christopher D. Bruey (“Bruey”), was arrested today in Knoxville, Tennessee by agents of the Federal Bureau of Investigation (“FBI”) on charges of transporting a minor in interstate commerce with the intent to engage in an unlawful sexual activity.
Bruey made an initial appearance on February 1, 2023, in United States District Court in Knoxville, before the Honorable Jill E. McCook, United States Magistrate Judge. A trial will be scheduled later in 2023.
The details of the charges are outlined in the complaint and supporting affidavit which are on file as public records in the United States District Court for the Eastern District of Tennessee.
U.S. Attorney Francis M. Hamilton, III of the Eastern District of Tennessee and FBI Special Agent in Charge Joseph E. Carrico made the announcement.
Assistant U.S. Attorney Alan S. Kirk will represent the United States in this case.
Members of the public are reminded that these are only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
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Albuquerque man sentenced for assaulting letter carrierRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that Elias Gallegos was sentenced to more than 4 years in prison. A federal jury convicted Gallegos, 27, of Albuquerque, on October 25, 2022, of assaulting a federal officer using a deadly or dangerous weapon.
According to court documents, Gallegos assaulted a U.S. Postal Service letter carrier on Sept. 17, 2021, as the letter carrier was delivering mail on foot near the corner of Constitution Avenue NE and Monroe St. NE in Albuquerque. Gallegos brandished a knife at the letter carrier, chased him, and then threw a rock at him, which missed.
The letter carrier returned to his mail truck and called 911. As Albuquerque police responded to the scene and attempted to approach Gallegos, Gallegos fled on foot. Gallegos jumped several residential backyard fences before police contained him to a shed in the backyard of a residence on Manzano Street. When Gallegos attempted to approach the back door of the residence, officers apprehended him. During a search of the shed where Gallegos had been hiding, officers found a torch lighter and the pocketknife used in the assault.
“The men and women of the U.S. Postal Service brave our streets daily in service of the public,” said United States Attorney Alexander M.M. Uballez. “When those streets level senseless threats, the United States will protect the federal employees who serve our nation and hold accountable those who plague our community with violence.”
“Today’s sentencing of Elias Gallegos shows the determination of the U.S. Postal Inspection Service, along with their law enforcement partners, to vigorously pursue and bring criminals to justice who attempt to commit crimes or harm any postal employee” stated Melisa Llosa, Inspector in Charge of the USPIS Phoenix Division.
Upon his release from prison, Gallegos will be subject to 3 years of supervised release.
The U.S. Postal Inspection Service and the Albuquerque Police Department investigated this case. Assistant United States Attorneys Samuel A. Hurtado and Patrick Cordova prosecuted the case.
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Tuesday 31 January 2023
Woman Who Aided Robber on St. Louis Arch Grounds Sentenced to 2 Years in PrisonRead the Press Release
ST. LOUIS – U.S. District Judge Audrey G. Fleissig on Tuesday sentenced a woman who aided a juvenile who committed an armed robbery on the Arch Grounds to two years in prison.
Kaniya Sloan, 20, of Belleville, was in downtown St. Louis on Sept. 13, 2021 along with Christopher Franklin and a juvenile male. The juvenile robbed a man and a woman at gunpoint at about 7:30 p.m. on the grounds of the Gateway Arch, according to court documents. The woman handed over her purse and the male victim handed over his iPhone and wallet.
Franklin then drove with Sloan and the juvenile to a WalMart in Illinois, where they sold the phones in an EcoATM kiosk about 30 minutes later.
Two days after the robbery, St. Louis police spotted Franklin’s vehicle in downtown St. Louis and stopped them. Franklin, Sloan and the juvenile were in the vehicle, along with a black Glock 19 handgun and one of the items from the female vehicle’s purse.
Both Sloan and Franklin admitted their involvement after being confronted with photographs of the EcoATM kiosk transaction.
Both Sloan and Franklin pleaded guilty to being an accessory after the fact to a robbery. Franklin, now 20, of St. Louis County, was sentenced in October to two years in prison.
The St. Louis Metropolitan Police Department and the National Park Service investigated this case. Assistant U.S. Attorney Catherine Hoag prosecuted the case.
Winnebago Man Sentenced for Sexual Abuse of a MinorRead the Press Release
United States Attorney Steven Russell announced that Robert McClelland, 39, of Winnebago, Nebraska, was sentenced on January 30, 2023, for sexual abuse of a minor. United States District Court Judge Brian C. Buescher sentenced McClelland to 11 years and 3 months’ imprisonment. There is no parole in the federal system. After his release from prison, McClelland will begin a ten-year term of supervised release.
In May of 2020, the minor victim disclosed that when she was 5 or 6 years old, McClelland touched her private area and made McClelland touch his penis. When the minor victim asked McClelland to stop, he did. McClelland was interview by law enforcement and admitted to the conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s 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.
This case was investigated by the Federal Bureau of Investigation.
Williamsburg Business Owner Pleads Guilty to Money Laundering and Conspiracy Involving Labor TraffickingRead the Press Release
NEWPORT NEWS, Va. – A Midlothian man pleaded guilty today to conspiring to defraud and commit offenses against the United States, including human trafficking of individuals from Central America, benefiting from forced labor, money laundering, and harboring undocumented non-citizens.
According to court documents, George William Evans, 68, was the fifty-percent owner of a commercial laundry business, Northstar Holdings of Virginia LLC d/b/a Magnolia Cleaning Services, LLC. Evans participated in a conspiracy to harbor, transport, and benefit from the employment of undocumented noncitizens at the commercial laundry business he co-owned. Between the first quarter of 2018 and the first quarter of 2022, the business’s wage records reflect approximately 121 employees with alleged invalid or mismatched Social Security Numbers and wage payments of more than $1.2 million to these employees.
At the direction of Evans and his coconspirators, Magnolia Cleaning Services exploited undocumented noncitizens to work long hours in poor working conditions. In some cases, employees were threatened with deportation, physical harm, and harm to their families if they refused to work as directed. Some undocumented employees lived in the laundry facility without access to a kitchen or bathroom with a shower or bathtub. One employee was a child who was made to work night shifts while attending school during the day.
Evans pleaded guilty to conspiring to defraud and commit offenses against the United States and engaging in a transaction in criminally derived property. Evans agreed to forfeit an amount not less than $3,938,630 to the United States - of which he agreed to pay $1,969,315 no later than thirty days before sentencing. He is scheduled to be sentenced on June 20. He faces a maximum penalty of five years in prison for the conspiracy offense and ten years in prison for the money laundering offense. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Derek W. Gordon, Acting Special Agent in Charge of U.S. Homeland Security Investigations (HSI) Washington, D.C.; Troy Springer, Acting Special Agent in Charge of the Washington, DC Regional Office, U.S. Department of Labor, Office of Inspector General; and Damon E. Wood, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after U.S. District Judge Elizabeth Wilson Hanes accepted the plea.
This investigation was conducted by the Hampton Roads Human Trafficking Task Force, a collaboration between federal, state, and local law enforcement and prosecutors, as well as non-governmental organizations, working together to combat human trafficking in the Hampton Roads Region.
Assistant U.S. Attorneys Brian J. Samuels and D. Mack Coleman are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:22-cr-92.
Utah Man Charged with Mail Fraud for Alleged $5.8 Million Scheme to Defraud Organic Produce Distributor via Sham InvoicesRead the Press Release
RIVERSIDE, California – A Utah man was arraigned in federal court today on a grand jury indictment alleging that he participated in a long-running scheme in which he sent fake invoices on behalf of a shell company to defraud an organic produce distributor out of $5.8 million.
Kevin Scott Horton, 55, of Saratoga Springs, Utah, is charged with seven counts of mail fraud. He pleaded not guilty to the charges today in Riverside federal court and a March 28 trial date in United States District Court in Los Angeles was scheduled in this matter.
According to the indictment and other court documents, from February 2000 to April 2018, Horton schemed with Tony Anhtuan Rawlings, 56, of Garden Grove, the management information systems director at Melissa’s World Variety Produce Inc., a Vernon-based company, to defraud Melissa’s out of its money through the approval of payment of invoices for fictitious services.
In February 2000, Horton allegedly created a shell company called Creative Network Solutions (CNS). At Rawlings’s instruction, Horton allegedly created one or two fictitious invoices per month, in which CNS billed Melissa’s for services that CNS did not provide.
Horton provided the fictitious invoices to Rawlings, who approved them and then provided them to a Melissa’s executive who ensured that Melissa’s paid CNS the amounts listed on the sham invoices, the indictment alleges.
Rawlings falsely represented to Melissa’s executives that CNS provided information technology and information systems services to Melissa’s. In fact, Horton had no background in computers and CNS never provided services to Melissa’s or any other company, the indictment states.
Horton, along with Rawlings, allegedly caused Melissa’s to send CNS payment in the form of checks mailed through the United States Postal Service. Horton allegedly deposited the checks he received through the scheme into a bank account that he controlled. Horton allegedly provided Rawlings a portion of the money that Melissa’s paid to CNS in the form of checks sent via U.S. Mail to an address in Irvine that Rawlings controlled.
In total, Horton, along with Rawlings, allegedly caused Melissa’s to pay CNS approximately $5,805,504 because of the fictitious invoices.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of all charges, Horton would face a statutory maximum sentence of 20 years in federal prison for each mail fraud count.
Rawlings pleaded guilty in August 2022 to one count of mail fraud. His sentencing hearing is scheduled for June 1.
The FBI investigated this matter.
Assistant United States Attorney Eli A. Alcaraz of the Riverside Branch Office is prosecuting this case.
U.S. Promoter of Foreign Cryptocurrency Companies Sentenced to 60 Months in Prison for His Role in Multi-Million Dollar Securities Fraud SchemeRead the Press Release
BROOKLYN, NY – Earlier today, in federal court in Brooklyn, John DeMarr was sentenced by United States District Judge LaShann DeArcy Hall to 60 months in prison for his participation in a cryptocurrency and securities fraud scheme. The Court also ordered DeMarr to pay $3,513,305.41 in forfeiture. In July 2021, DeMarr pleaded guilty to one count of conspiracy to commit securities fraud.
Breon Peace, United States Attorney for the Eastern District of New York, Kenneth A. Polite Jr., Assistant Attorney General of the Justice Department’s Criminal Division, Donald Alway, Assistant Director-in-Charge, Federal Bureau of Investigation, Los Angeles Field Office (FBI), and Tyler Hatcher, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, Los Angeles (IRS-CI), announced the sentence.
“DeMarr took advantage of those who trusted him, persuading them to double down on their investments when he knew that his cryptocurrency companies and their dubious celebrity endorsements were scams being used to fund his lavish lifestyle,” stated United States Attorney Peace. “The victims ultimately lost everything, so it is appropriate that DeMarr lose his freedom for concocting this fraud.”
“Cryptocurrency schemes are on the rise. The Internal Revenue Service Criminal Investigation and our law enforcement partners are working diligently to identify and investigate criminals who perpetrate these schemes, like John DeMarr,” stated IRS-CI Special Agent-in-Charge Hatcher. “DeMarr, a promoter of several digital asset-related companies, conspired with others to defraud victims and made misleading representations for significant profits. DeMarr diverted funds into accounts he controlled and spent the money to maintain a lavish lifestyle. Those who line their pockets with profits from these schemes should know they will not go undetected and will be held accountable.”
According to court filings, DeMarr, a promoter of several digital asset-related companies, conspired with others to defraud investor victims by inducing them to invest in their companies, “Start Options” and “B2G,” based on materially false and misleading representations. Start Options purported to be an online investment platform that provided cryptocurrency mining, trading, and digital asset trading services. B2G was purportedly an “ecosystem” that would allow users to trade B2G tokens, provide digital wallet staking, and trade digital and fiat currencies “on a secure, comprehensive platform.” Both Start Options and B2G, however, were fraudulent.
DeMarr and others falsely claimed that investor funds would be invested in digital asset mining and trading platforms that would earn them massive profits. In reality, the funds were never invested and instead diverted to accounts controlled by DeMarr and others and used for various personal expenditures, including the purchase of a Porsche, jewelry, and the remodeling of DeMarr’s home in California.
Start Options also purported to feature celebrity endorsements to promote its securities offerings. For example, a professional athlete purportedly endorsed Start Options and his name and likeness were used without his consent. Based on this and other fraudulent promotional materials, investors sent millions of dollars’ worth of Bitcoin, Ethereum, and fiat currency to financial accounts, including cryptowallets, controlled by DeMarr and others in the United States and abroad. In late January 2018, rather than permitting Start Options investors to withdraw money from their accounts after the requisite time period, DeMarr and others required investors to roll over their accounts into an unregistered “initial coin offering,” or ICO, of B2G. Investors never actually received any digital tokens, and funds from the offering were not used to develop the B2G platform.
Additionally, DeMarr and others also paid various promoters, including an actor famous for martial arts films made in the 1980s and 1990s, to serve as a promoter and celebrity spokesperson, falsely claiming that B2G could generate an “8,000%” return for investors within one year, and that he was a participant in the ICO. DeMarr and others also created false press releases and whitepapers about B2G, fabricated B2G account statements, and refused to allow investors to withdraw their money.
This case was investigated by the FBI and IRS-CI. Assistant U.S. Attorneys Kaitlin T. Farrell, Hiral D. Mehta, David C. Pitluck, Antoinette N. Rangel and Special Agent Martin Sullivan of the Eastern District of New York and Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section are prosecuting the case. Assistant United States Attorney Claire Kedeshian of the Office’s Asset Recovery Section is handling forfeiture matters.
The Defendant:
JOHN DEMARR
Age: 58
Santa Ana, CaliforniaE.D.N.Y. Docket No. 21-CR-153 (LDH)
U.S. Attorney Recognizes Human Trafficking Prevention MonthRead the Press Release
BOSTON – U.S. Attorney Rachael S. Rollins recognizes Human Trafficking Prevention Month and reaffirms the office’s commitment to seeking justice for all trafficking victims and survivors.
In August 2022, Rollins created a new standalone criminal Civil Rights and Human Trafficking Unit which has, to date, charged nearly a dozen new criminal cases and initiated several other ongoing investigations in the areas of sex trafficking, labor trafficking and human smuggling. Since its inception, the new unit has assisted 15 victims in eight different states who were victims of trafficking here in Massachusetts. On the prevention front, the office just kicked off an indicator training series this month – partnering with Homeland Security Investigations – aimed at a broad range of employers, including city and state inspectors, as well as hospitality and travel employees, just to name a few.
“Human trafficking is modern day slavery. It is a civil rights violation of the highest order that impacts victims across races, genders, age, immigration status and socio-economic standing. Traffickers use threats, lies, grooming techniques, or violence to exploit vulnerabilities, manipulate and control their victims. Sadly, this crime often goes entirely unseen or ignored. That is why we launched our indicator training series with HSI – to educate the public about labor and sex trafficking and to expose how prevalent it is here in Massachusetts. We recently trained over 100 public employees in Boston, with additional trainings sessions forthcoming. My hope is that by providing people across all sectors the tools they need to spot signs of human trafficking and by sharing the lived experiences of those who have endured it, we can encourage and empower workers in all trades to take part in helping protect the welfare of our most vulnerable. Human trafficking is a real threat to human dignity, public safety and public health. We need urgent and meaningful solutions,” said United States Attorney Rachael S. Rollins.
As part of its outreach efforts, the U.S. Attorney’s Office has established strong community partnerships with several local and state agencies to increase and improve collaboration. This includes regular meetings with the Commonwealth Anti-Trafficking Task Force; the Governor’s Council to Address Sexual Assault and Domestic Violence’s Human Trafficking Subcommittee; the Western Massachusetts Human Trafficking Task Force; and the Plymouth County Human Trafficking Task Force. The office has also committed to continuing to meet with and learn from survivor-lead organizations across Massachusetts.
If you or someone you know may be impacted or experiencing human trafficking, please visit https://polarisproject.org/ for information and resources.
U.S. Attorney Announces Availability of $489,571 in Funding to Reduce Violent Crime and Gun Violence in the Western District of KentuckyRead the Press Release
Louisville, KY – Michael A. Bennett, United States Attorney for the Western District of Kentucky, announced today that applications are now being accepted for Project Safe Neighborhoods (PSN) grant funding for Western District of Kentucky for the reduction of violent crime and gun violence.
“Project Safe Neighborhoods is the Department’s flagship program designed to effectively reduce violent crime and gun violence,” said U.S. Attorney Bennett. “PSN’s core principles of 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, bring together all levels of law enforcement and the communities they serve to decrease violent crime. I encourage community organizations and law enforcement agencies throughout our 53 counties to apply for funding and utilize their expertise to make our communities safer for all citizens.”
The PSN program has $489,571 to award in the Western District. The grant activities will be managed through the Kentucky Justice and Public Safety Cabinet’s JPSC’s electronic grants management system, also known as Intelligrants 10.0 (IGX). Applications must be submitted no later than Friday, February 24, 2023, at 6:00 pm ET. Technical assistance with application preparation and submission is available from the JPSC upon request.
When considering grant awards, the Western District of Kentucky’s PSN Team will give priority to youth-serving organizations that provide prevention programming; mental health and social services assistance for at-risk individuals; crime prevention training, de-escalation training and community training for law enforcement officers; gang task forces; and equipment, services, and technology for law enforcement.
Western District of Kentucky community organizations and law enforcement agencies interested in applying for this PSN grant funding can open the hyperlink below.
https://justice.ky.gov/Departments-Agencies/GMD/Documents/PSN%20Solicitation%20USAO%20FINAL%2012-21-22.pdf
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U.S. Attorney Announces $1.3 Million Settlement of Civil Fraud Lawsuit Against Apparel Importer for Underreporting Value of Goods to Avoid Paying Customs DutiesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Ivan J. Arvelo, the Special Agent-in-Charge of the New York Field Office of Homeland Security Investigations (“HSI”), AnnMarie R. Highsmith, Executive Assistant Commissioner for U.S. Customs and Border Protection’s (“CBP”) Office of Trade, and Francis Russo, Director of CBP Field Operations New York, announced that the United States has entered into a settlement agreement to resolve a civil fraud lawsuit against HIGH LIFE LLC (“HIGH LIFE”), an apparel design and import company headquartered in Manhattan, for underreporting to CBP the value of apparel imported into the United States. The settlement resolves claims that HIGH LIFE underreported the value of 67 apparel shipments in order to avoid paying the full customs duties owed. Under the settlement agreement approved by U.S. District Judge Victor Marrero, HIGH LIFE has agreed to pay $1.3 million to the United States and has made admissions regarding certain conduct alleged in the Government’s Complaint.
U.S. Attorney Damian Williams said: “Rather than comply with the law, High Life chose to underreport the value of apparel imported into this country to avoid paying legally mandated customs duties. This Office will continue to hold companies accountable when they make misrepresentations to CBP to enhance their own bottom line.”
HSI Special Agent-in-Charge Ivan J. Arvelo said: “This settlement should serve as a warning to companies that attempt to bolster their bottom line by cheating and defrauding the United States. Individuals or organizations that knowingly and willfully use tactics such as undervaluing or misclassifying goods to avoid paying lawful customs charges are violating the laws of international commerce and HSI will not stand by idly. Our special agents will work diligently with our law enforcement partners to protect legitimate businesses by apprehending those that exploit our trade systems and rob our government of vital revenues.”
CBP Executive Assistant Commissioner AnnMarie R. Highsmith said: “Importers need to know that manipulating the values they report to CBP can come with serious consequences. This case is a great example of the collaborative trade enforcement efforts between teams at CBP, who identified the original pattern of misconduct, and the U.S. Attorney’s Office.”
CBP Director of Field Operations Francis Russo said: “U.S. Customs and Border Protection has a cadre of dedicated professionals – import specialists and regulatory auditors – with expertise in the financial details surrounding imports, including terms of sale and their effect on the dutiable value of goods when they arrive in the United States. Our trade experts found anomalies in High Life’s value calculations based on the terms of sale to its foreign suppliers and paved the way for the Justice Department and Homeland Security Investigations to move this case forward and bring it to a successful conclusion. Their knowledge and collaboration with our law enforcement partners stopped High Life’s efforts to defraud the United States of hundreds of thousands of dollars in revenue.”
As alleged in the Complaint filed in Manhattan federal court:
HIGH LIFE purchases apparel from foreign vendors (the “Vendors”), who in turn contract with overseas factories to manufacture the apparel. In December 2015, after CBP had detained numerous HIGH LIFE shipments due to concerns that the declared values were fraudulent, HIGH LIFE decided to transition its business model. Instead of purchasing the apparel on Landed Duty Paid (“LDP”) terms — meaning that HIGH LIFE paid the Vendors a price inclusive of all costs associated with importing the merchandise — HIGH LIFE began purchasing the merchandise on Free on Board (“FOB”) terms. Under the new FOB model, HIGH LIFE assumed importation responsibilities, including the responsibility to declare the value of the imported goods and pay the associated customs duties.
As the importer of record, HIGH LIFE was permitted, if certain criteria were met, to declare the value of the imported goods based on the price the Vendors paid the factories (“First Sale Price”), instead of the price HIGH LIFE paid the Vendors. However, HIGH LIFE could only declare the First Sale Price as the value of the orders if the goods were the subject of a bona fide sale between the Vendors and the factories, the goods were clearly destined for export to the United States, and the factories and the Vendors dealt with each other at arm’s length, in the absence of any non-market influences that affected the legitimacy of the sales price.
From January 21, 2016, through June 1, 2016 (the “Relevant Time Period”), HIGH LIFE materially underreported the value of previously ordered apparel in 67 imported shipments. In transitioning from LDP to FOB terms, HIGH LIFE developed a formula that worked backwards from a previously negotiated LDP price to calculate what HIGH LIFE wanted the FOB price and First Sale Price to be and then used that First Sale Price to declare the values of 67 shipments. The prices used by HIGH LIFE for customs reporting purposes were determined after the orders for the apparel had been placed, after the pricing structure had been negotiated, and after the apparel was in production. It was improper to declare the imported merchandise using these values because the prices were not based on a bona fide sale between the Vendors and the overseas factories and were not the result of arm’s length negotiations between those Vendors and the factories in the absence of any non-market influences. Indeed, HIGH LIFE instructed the Vendors on how to calculate and report the prices that HIGH LIFE ultimately used to declare the values to CBP.
As part of the settlement, HIGH LIFE admits, acknowledges, and accepts responsibility for the following conduct:
- Once HIGH LIFE transitioned to an FOB model, it assumed importation responsibilities for the shipments. As the importer of record, HIGH LIFE could then, if certain criteria were met, declare the value of the imported goods based on the price the Vendors paid the factories, instead of the price HIGH LIFE paid the Vendors. However, HIGH LIFE could only declare the First Sale Price as the value of the orders if the goods were the subject of a bona fide sale between the Vendors and the factories, clearly destined for export to the United States, and the factories and the Vendors dealt with each other at arm’s length, in the absence of any non-market influences that affected the legitimacy of the sales price.
- In transitioning from LDP to FOB terms, HIGH LIFE developed a formula that worked backwards from a previously negotiated LDP price to calculate what HIGH LIFE wanted the FOB price and First Sale Price to be and then used that First Sale Price to declare the values of 67 shipments made during the Relevant Time Period (the “Subject Orders”). HIGH LIFE requested the Vendors to delay shipping merchandise while the First Sale Prices for the Subject Orders were finalized. Indeed, on December 24, 2015, HIGH LIFE’s Production Manager asked the Vendors to “hold as many shipments as possible until we finalize the First Sale.”
- Beginning in late December 2015 and continuing through January 2016, HIGH LIFE instructed the Vendors to apply HIGH LIFE’s formula to calculate the First Sale Price that HIGH LIFE would report to CBP for purposes of calculating the duties owed by HIGH LIFE.
- After the Vendors emailed spreadsheets to HIGH LIFE that purported to reflect the First Sale Prices for the Subject Orders, a member of HIGH LIFE’s production team sent an email to the Vendors directing them to “rework your FOB and [First Sale Price] based on the Highlife Estimate freight.” Following their receipt of these emails, the Vendors replied to HIGH LIFE within 24 hours with revised First Sale Prices for the merchandise included in the Subject Orders.
- When importing the Subject Orders, HIGH LIFE ultimately declared to CBP that the duties owed should be calculated based on the First Sale Prices the Vendors reported to HIGH LIFE.
- If HIGH LIFE had paid duties to CBP based on the prices HIGH LIFE itself paid for the merchandise included in the Subject Orders, instead of calculating the duties based on the purported First Sale Prices reported by the Vendors pursuant to HIGH LIFE’s instructions, HIGH LIFE would have paid significantly higher customs duties for the Subject Orders.
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Mr. Williams praised the outstanding investigative work of the Department of Homeland Security, HSI, and CBP.
This case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Jessica Jean Hu and Anthony J. Sun are in charge of the case.
Two District Men Sentenced to Prison Terms in the Fatal Shooting of A Man in Northeast Washington, DCRead the Press Release
Defendant Shot Victim in Mid-Morning Attack
WASHINGTON – Stanley Brown, 30, of Washington, D.C, was sentenced today to 12 years in prison for fatally shooting a man in Northeast Washington, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD). Brown pleaded guilty on October 7, 2022, to voluntary manslaughter while armed. In addition to the prison term, the Honorable Milton C. Lee ordered five years of supervised release.
Brown’s co-defendant, Emmanuel Taylor, 39, of Washington, D.C., was sentenced today to 50 months in prison followed by three years of supervised release. Brown pleaded guilty on October 7, 2022, to unlawful possession of a firearm.
According to the government’s evidence, on Jan. 23, 2020, at approximately 10:15 a.m., Brown approached the victim, Jimmy Beynum, on foot in the 1600 block of F Street NE. Brown shot Mr. Beynum multiple times and then fled the scene. Mr. Beynum, 37, died on Jan. 29, 2020, as a result of multiple gunshot wounds.
The investigation determined that earlier that day, Emmanuel Taylor left his apartment in Southeast Washington with Brown and dropped him off in the area where the murder took place. When police searched the apartment six days later, Taylor attempted to jump out of the window and threw the murder weapon out of the window.
In announcing the pleas, U.S. Attorney Graves and Chief Contee commended the work of the officers, detectives and other personnel who investigated the case from the Metropolitan Police Department. They acknowledged the efforts of those who handled the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Sitara Witanachchi, former Assistant U.S. Attorney Puja Bhatia, and Victim/Witness Program Specialist Karina Hernandez. Finally, they commended the work of Assistant U.S. Attorneys Daniel Seidel and Brian Ganjei, who investigated and prosecuted the case.
Texas Teacher Sentenced to 20 Years in Federal Prison on Child Porn ChargesRead the Press Release
ALPINE, Texas – A Valentine, Texas man was sentenced in federal court in Alpine last week to 20 years in prison and 15 years of supervised release for distributing child sexual abuse material.
According to court documents, Albert Douglas Ackley, 60, uploaded and shared ten files containing child sexual abuse material over a mobile messaging app. The files were flagged by the app and sent to the Internet Crimes Against Children database for law enforcement investigation. Agents executed a search warrant at Ackley’s residence, where they found multiple devices containing prepubescent child sexual abuse material. At the time of the investigation, Ackley had been teaching math to grades seven through 12 at a local public school.
Ackley was arrested March 15, 2022 and has remained in federal custody. He pleaded guilty on Aug. 12, 2022 to one count of distribution of child pornography.
“We will continue to vigorously prosecute those who distribute or create an illegal market for child pornography as they violate the sanctity and innocence of our children,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “We are grateful for our law enforcement partners, and to the National Center for Missing and Exploited Children, as we work together to protect our kids and hold these offenders accountable for the harm they cause in society.”
“This sentence shows that HSI special agents are laser focused on doing our part to bring to justice those who victimize children,” said Special Agent in Charge Francisco B. Burrola of the Homeland Security Investigations El Paso Division. “HSI is most appreciative of the collaborative partnership with the Texas Department of Public Safety that is a force multiplier to combat this horrific crime of child exploitation.”
HSI and the Texas Department of Public Safety investigated the case.
Assistant U.S. Attorney Matthew Ellis prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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.justice.gov/psc.
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Sully County Men Sentenced for Crop Insurance FraudRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced two Sully County, South Dakota, men convicted of False Statements in Connection with Federal Crop Insurance. The sentencing took place on January 30, 2023.
James Garrett, age 68, was sentenced to 18 months in federal prison, followed by two years of supervised release, and ordered to pay $1,045,544 in restitution to the United States. Levi Garrett, age 44, was sentenced to 24 months in federal prison, followed by two years of supervised release, and ordered to pay $279,396 in restitution to the United States.
The defendants were indicted for several counts of False Statement in Connection with Federal Crop Insurance by a federal grand jury in October of 2021. A jury convicted James Garrett of two counts and Levi Garrett of one count following a six-day trial on October 31, 2022.
James Garrett and his son Levi Garrett operated a family farm and ranch in Sully County. In 2018, the defendants falsely certified to a crop insurance company that they planted 2,200 total acres of sunflowers. In fact, the defendants did not plant any sunflowers, and they wrongfully received indemnity from the insurance company as if their entire crop failed. In 2019, James Garrett falsely certified he planted 47.5 acres of corn as part of a larger claim. In fact, no corn was planted, and he wrongfully received indemnity from the insurance company that year. The defendants fraudulently obtained over $1.3 million in total benefits from their crimes.
“The federal crop insurance program is a vital risk management tool designed to help honest farmers sustain their agricultural productions under difficult circumstances. James and Levi Garrett unlawfully exploited that program and lined their pockets at the expense of taxpayers,” said U.S. Attorney Ramsdell. “Our office is committed to prosecuting any South Dakotan who dishonestly takes advantage of government programs, and we do so in partnership with hard-working investigators like those individuals at the U.S. Department of Agriculture who pursued this case.”
This case was investigated by the U.S. Department of Agriculture, Office of Inspector General and the U.S. Department of Agriculture, Risk Management Agency. Assistant U.S. Attorneys Cameron J. Cook and Alexis A. Warner prosecuted the case.
The defendants were ordered to report to their prison facility as designated by the U.S. Bureau of Prisons.
St. Charles Man Sentenced to 10 Years in Prison for Trying to Bring 100 Pounds of Methamphetamine to the St. Louis AreaRead the Press Release
ST. LOUIS – U.S. District Judge Matthew T. Schelp on Tuesday sentenced a man from St. Charles, Missouri caught trying to bring 100 pounds of methamphetamine to the St. Louis area to 10 years in prison.
A traffic stop in Kansas led to the case against Demond Benard McDaniels Jr., of St. Charles, and Dawuane Lamont Rhodes Jr., of St. Louis. On Oct. 8, 2020, a Geary County Sheriff’s deputy stopped a van and found two duffle bags containing roughly 100 pounds of methamphetamine that was being driven from Colorado to McDaniels in the St. Louis area. The Drug Enforcement Administration then arranged for the controlled delivery of the drugs.
McDaniels first arranged to have Rhodes pick up and pay for the methamphetamine at a University City garage. Rhodes was arrested with $15,005 in cash, an assault-style weapon and a pistol. McDaniels was then told that Rhodes didn’t show, and he arrived only to be arrested with $6,930 in cash and jewelry.
Investigators later found $93,820 in cash and a pistol at McDaniels’ home.
McDaniels Jr., 26, and Rhodes Jr., 25, pleaded guilty in November to one felony count of conspiracy to distribute and possession with intent to distribute methamphetamine. They agreed to forfeit more than $155,000 seized during the investigation, a 2016 Dodge Charger Hellcat, a 2015 Mercedes Sprinter van and a 2015 Dodge Charger Hellcat.
Rhodes is scheduled to be sentenced March 3.
The case was investigated by the Drug Enforcement Administration and the U.S. Postal Inspection Service. Assistant U.S. Attorney Paul D’Agrosa prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Shreveport Man Sentenced to 27 Years in Federal Prison for Conspiring to Advertise the Distribution of Child PornographyRead the Press Release
SHREVEPORT, La. - United States Attorney Brandon B. Brown announced that James Ray Williams, 51, of Shreveport, Louisiana, has been sentenced by United States District Judge S. Maurice Hicks, Jr. to 27 years in prison, followed by 3 years of supervised release, on child pornography charges. Williams was also ordered to pay restitution in the amount of $6,000.
Williams was charged in a superseding indictment in November 2021 with conspiracy to advertise the distribution of child pornography. He pleaded guilty to the charge on August 30, 2022. According to information introduced in court, beginning in May 2021 and continuing through July 7, 2021, Williams was the master administrator of multiple private chat groups on the Kik Messenger app and had his own username. These private chat groups were dedicated to the advertisement and distribution of child pornography. As the master administrator, Williams posted rules to the private chat groups. He also recruited members to the private chat groups, some of whom he appointed to be sub-administrators of and enforce the rules in the groups. One of the rules required members of the private chat groups to post child pornography.
On or about May 9, 2021, Williams a.k.a. “travis_m495” published an advertisement in the private chat group an advertisement offering to distribute child pornography. The advertisement consisted of a Mega link with a file path which contained videos and images of child pornography.
Alexander Pennington, a convicted sex offender from Las Vegas who Williams appointed as a sub-administrator of the private chat groups, was charged as a co-defendant in this case. Pennington previously pleaded guilty and was sentenced to 30 years in prison in connection with this case for his role in the conspiracy to advertise the distribution of child pornography.
The case was investigated by the Department of Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Jessica D. Cassidy.
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Sacaton Man Sentenced to 25 Years for Shooting DeathRead the Press Release
PHOENIX, Ariz. – Last week, Jordan Antonio Sullivan, 24, of Sacaton, Arizona, an enrolled member of the Gila River Indian Community, was sentenced by United States District Judge Michael T. Liburdi to a total of 25 years in prison, followed by five years of supervised release. Sullivan previously pleaded guilty to Second Degree Murder and Using a Firearm During a Crime of Violence.
On March 23, 2020, Sullivan shot the victim in the neck with a shotgun before hitting the victim in the back of the head with the gun. Sullivan then stole the victim’s car and ran over the victim to ensure he was dead.
Sullivan will serve his 25 years in federal prison after completing a state sentence for Second Degree Murder. In the state case, CR-2020-116748-001, he was sentenced to 18 years for a murder he committed in April 2020.
The Gila River Police Department and the FBI conducted the investigation in this case. Assistant U.S. Attorney Raynette Logan, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-22-00652-PHX-MTL
RELEASE NUMBER: 2023-010 _Sullivan