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Friday 27 January 2023
Raleigh County Man Pleads Guilty to Federal Gun CrimeRead the Press Release
BECKLEY, W.Va. – Gregory Kincaid, 30, of Cool Ridge, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on April 7, 2022, law enforcement officers were executing a search warrant at a Cool Ridge residence when Kincaid arrived at the residence in a vehicle. When officers removed Kincaid from the vehicle, Kincaid admitted that he possessed a Smith & Wesson, model M&P Shield, 9mm pistol. Kincaid further admitted that he told officers he had stolen the firearm from his father and had brought it to the residence being searched to sell or trade for controlled substances.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Kincaid knew he was prohibited from possessing a firearm because of his prior felony conviction for third-offense driving revoked for DUI in Raleigh County Circuit Court on November 25, 2020.
Kincaid is scheduled to be sentenced on May 12, 2023 and faces a maximum penalty of 10 years in prison, three years of supervised release, and a $250,000 fine..
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Beckley/Raleigh County Drug and Violent Crime Unit, and the Raleigh County Sheriff’s Department.
United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Andrew D. Isabell is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:22-cr-192.
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Raleigh County Man Pleads Guilty to Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – David Jeffrey Edwards, 46, of Daniels, pleaded guilty today to possession with intent to distribute methamphetamine and fentanyl.
According to court documents and statements made in court, on February 24, 2022 law enforcement officers executed a search warrant at Edwards’ residence in Daniels. Edwards admitted to possessing 19 grams of methamphetamine packaged in nine separate small bags, 1 gram of fentanyl and $958 found during the search. Edwards further admitted that he intended to distribute the controlled substances.
Edwards also admitted to selling a half-ounce of fentanyl to a confidential informant at his residence on December 12, 2021. Edwards told officers during the February 24, 2022, search that he had been selling an average of a half-ounce of methamphetamine weekly for several weeks. Officers also found an improvised explosive device during the search, a glass bottle filled with gunpowder, metal spheres, projectiles and other objects with a length of cordage inserted in the bottle opening as a means of ignition. Edwards admitted that he made the improvised explosive device.
Edwards is scheduled to be sentenced on May 12, 2023, and faces a maximum penalty of 20 years in prison, three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Beckley/Raleigh County Drug and Violent Crime Unit.
United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Andrew D. Isabell is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:22-cr-125.
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Pass Christian Man Sentenced to 14 years in Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
Gulfport, Miss. – A Pass Christian, Mississippi man was sentenced to 169 months in federal prison for possession with intent to distribute methamphetamine, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Brad L. Byerley of the Drug Enforcement Administration.
Michael Dedeaux, 46, was sentenced on January 26, 2023, in U.S. District Court in Gulfport.
According to court records, on March 29, 2022, Dedeaux was stopped for a traffic violation in Pass Christian. The traffic stop led to the seizure of 442 grams of methamphetamine from Dedeaux’s vehicle.
A federal grand jury returned an indictment against Dedeaux for possession with intent to distribute methamphetamine. Dedeaux pled guilty on October 25, 2022.
The case was investigated by the Drug Enforcement Administration.
The case was prosecuted by Assistant U.S. Attorney Erica Rose.
Palm Beach County Resident Pleads Guilty to Importation of MDMA and Possession with Intent to Distribute FentanylRead the Press Release
MIAMI – Tyre Marquise Bradley, 31, of Palm Beach County, Fla., pled guilty today before Senior U.S. District Judge Kenneth A. Marra to possession with intent to distribute fentanyl, among other controlled substances.
On May 15, 2019, Bradley sold crack cocaine to an undercover officer. From about August 22, 2022, to September 20, 2022, he imported MDMA (ecstasy) into the United States via packages from Amsterdam. Law enforcement delivered the package under surveillance and Bradley was taken into custody when he arrived to retrieve it. A 9mm semiautomatic pistol was discovered in his backpack. A state search warrant for Bradley’s home residence was acquired and law enforcement found drugs in the refrigerator, in a cabinet, inside the garbage can, and in the children’s bedroom that tested positive for the following:
Blue fentanyl pills weighing 1.6 pounds
Cocaine weighing 1.3 pounds
Crack cocaine weighing 15 grams
Marijuana weighing more than four pounds
Bradley pled guilty to four counts that included distribution of crack cocaine; importation of a controlled substance (ecstasy); attempted possession with intent to distribute a controlled substance (ecstasy); and possession with intent to distribute a controlled substance (fentanyl, cocaine, and crack cocaine).
Sentencing has been scheduled for April 14, 2023. At sentencing, Bradley faces a maximum term of imprisonment of up to 20 years on counts one, two and three and a statutory mandatory minimum sentence of 10 years and a maximum term of up to life in prison on count five.
U.S. Attorney for the Southern District of Florida Markenzy Lapointe, acting Special Agent in Charge Michael E. Buckley, Homeland Security Investigations (HSI), Miami Field Office, and Palm Beach County Sheriff Ric Bradshaw made the announcement.
HSI, West Palm Beach Office, investigated this case with assistance from Palm Beach County Sheriff’s Office. Assistant U.S. Attorney Lothrop Morris is prosecuting it.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
North Carolina Man Pleads Guilty to Bomb Threat Near the Library of CongressRead the Press Release
Defendant Broadcast Live on Facebook While Holding Alleged Explosive Device
WASHINGTON – Floyd Ray Roseberry, 52, of Grover, North Carolina, pleaded guilty today to one charge of threats to use explosives during a standoff with police that lasted four hours near the Library of Congress, announced U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge Michael H. Glasheen of the FBI Washington Field Office's Counterterrorism Division, and U.S. Capitol Police Chief J. Thomas Manger.
Roseberry pleaded guilty before the Honorable Rudolph Contreras in the U.S. District Court for the District of Columbia. He faces a statutory maximum sentence of 10 years in prison. Judge Contreras scheduled sentencing for June 15, 2023.
According to court documents, at approximately 9:45 a.m. on August 19, 2021, U.S. Capitol Police and the FBI responded to a bomb threat made by Roseberry who was sitting inside of a black Chevrolet pick-up truck with no license plates, adjacent to the Jefferson Building of the Library of Congress, at First Street and Independence Avenue, in Southeast Washington, D.C. Roseberry was seen holding a cell phone and was claiming he had a detonator.
While inside the truck, Roseberry broadcast live video and audio through Facebook.
He stated that he was upset about the 2020 election results and demanded that President Biden resign from office. Roseberry demanded to speak to President Biden about several grievances. He claimed to have an ammonium nitrate and/or a Tannerite bomb in the toolbox of this truck. Roseberry stated that the explosive device was engineered such that any loud sound would cause it to detonate and destroy two and a half blocks, which would encompass the Library of Congress as well as other buildings owned or leased by the United States. Roseberry further claimed that he was one of five individuals in Washington, D.C. with bombs. Roseberry could be seen on the Facebook videos holding a small metal keg with a puddy like substance on top and holding what appeared to be a trigger. The metal keg was later analyzed by the FBI and determined to have a small quantity of smokeless black powder at the bottom, but was incapable of detonating with the trigger Roseberry was holding, or by an acoustic mechanism as Roseberry described in the Facebook Live videos.
Roseberry was also throwing U.S. dollar bills out of the truck and onto the street and stating, among other things:
“Hey, call the police and tell them to come out here and clear the Capitol. Tell them to clear the Capitol. Tell them to clear it. … They need to clear that ‘cause I got a bomb in here. I don’t want nobody hurt. Yes sir, I don’t want nobody hurt. I’m not coming here to hurt nobody. I’m not lying, tell them there’s some more.”
“…I’m telling you, my windows pop, this bomb is gonna’ go, it’s made for decimals. …there’s gun powder in there this is some of the strongest shit you can get. I got two and a half pound of Tannerite.”
“If you want to shoot me and take the chance of blowing up two-and-a-half city blocks, ‘cause that toolbox is full, ammonium nitrate is full.”
At approximately 10:21 a.m., Roseberry began communicating with law enforcement by writing messages on a small white dry erase board and placing it in the driver’s side window of the target vehicle while intermittently holding an unidentified device. The messages stated in part, “please don’t shoot the windows the vibe will explode the bomb,” “I have no control of it,” “decimals is what sets off not me,” and at approximately 11:21 a.m., “my name is Ray Roseberry.” In video from the morning of August 19, 2021, Roseberry was observed holding an old metal can that appeared to have been fashioned into an explosive device.
In announcing the plea, U.S. Attorney Graves, Chief Manger, and Special Agent in Charge Glasheen commended the work of those who investigated the case from the FBI’s Washington Field Office and the U.S. Capitol Police. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Latina Sanders, as well as Assistant U.S. Attorney Christopher Tortorice, and National Security Division, Counterterrorism Section Trial Attorney John Cella, who prosecuted the case.
New York Woman Sentenced for $9.2 Million COVID-19 Relief FraudRead the Press Release
A New York woman was sentenced today to 45 months in prison for her role in the submission of fraudulent loan applications seeking more than $9.2 million in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Sherry Joseph, 34, of New York, New York, pleaded guilty in the Southern District of Florida to conspiracy to commit wire fraud on Nov. 10, 2022. According to court documents, Joseph recruited multiple individuals to apply for fraudulent PPP loans in exchange for kickbacks from their PPP loan proceeds. Joseph used aliases to send the information of her recruits to co-conspirators, who used this information to prepare fraudulent PPP loan applications that included falsified bank statements and payroll tax forms and falsely represented the borrowing entities’ number of employees and amount of monthly payroll. Joseph engaged in the scheme while on pretrial release for separate federal fraud-related offenses in the District of New Jersey.
In addition to her prison sentence, Joseph was ordered to serve three years of supervised released and pay $1,612,837.78 in restitution and $55,000 in forfeiture.
In total, 30 people have been charged for their participation in this scheme in the Southern District of Florida, Northern District of Ohio, and Middle District of North Carolina. All 30 of those defendants have been convicted.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Markenzy Lapointe for the Southern District of Florida; Special Agent in Charge Matthew D. Line of the IRS Criminal Investigation (IRS-CI) Miami Field Office; and Special Agent in Charge Amaleka McCall-Brathwaite of the Small Business Administration Office of Inspector General (SBA-OIG), Eastern Region made the announcement.
The IRS-CI and SBA-OIG investigated the case.
Trial Attorney Philip Trout of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kiran Bhat for the Southern District of Florida prosecuted the case.
In May 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 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 via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 200 defendants in more than 130 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
New York Man Sentenced for Straw Purchasing and Unlawfully Possessing FirearmsRead the Press Release
NORFOLK, Va. – A Brooklyn, New York, man was sentenced today to 72 months in prison for being a felon in possession of a firearm and aiding and abetting a straw purchase firearm transaction, both part of a large gun trafficking conspiracy.
According to court documents, Joseph Alexander Johnson, 38, spearheaded an interstate straw purchasing and gun trafficking conspiracy in which members were responsible for the illegal purchase, sale, and transport of at least 43 firearms, including AR-type firearms loaded with large-capacity magazines, between Virginia and New York. He organized and led the conspiracy, managing every aspect of it. As a felon, he could not lawfully obtain or possess a firearm, so he instead recruited at least three straw purchasers, all young women with no criminal records, to buy them for him. Once the straw purchasers obtained the guns and transferred them to him or his co-defendant, Tysohn Stevens, 39, of Brooklyn, New York, Johnson marketed the illegally purchased firearms over Facebook to many felons and gang members throughout Brooklyn.
Stevens pleaded guilty to his role in the conspiracy and will be sentenced on February 24.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Christopher Amon, Acting Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after sentencing by Senior U.S. District Judge John A. Gibney, Jr.
Assistant U.S. Attorney William Jackson prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), which 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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:22-cr-64.
New Franklin Man Charged with Attempt to Engage in Sexual Activity with Minor and Child PornographyRead the Press Release
AKRON – A federal grand jury returned a three-count indictment charging Kevin Lewis Hedrick, 37, of New Franklin, Ohio, with attempting to coerce or entice a minor to engage in sexual activity and receiving and viewing child pornographic images.
According to the indictment, from August to October 2022, Hedrick used a cell phone in an attempt to coerce or entice a purported 14-year-old girl to engage in sexual activity with him through an adult intermediary. According to the indictment, the intermediary was an undercover officer posing as the mother of the child.
In addition, Hedrick is also charged with receiving and accessing numerous files of child pornography with an intent to view, including at least one image involving a minor under the age of 12.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum; in most cases, it will be less than the maximum.
This investigation was conducted by the Cleveland FBI, Akron Resident Agency. This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik.
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Missouri Felon Admits Selling 7 Machine GunsRead the Press Release
CAPE GIRARDEAU – A man from Dunklin County, Missouri on Friday admitted selling seven devices that convert AR-15-style rifles into automatic weapons.
Lamad Cross, 24, of Kennett, Missouri, pleaded guilty in U.S. District Court in Cape Girardeau to one felony charge of unlawful transfer of a machine gun.
The investigation began on Jan. 21, 2022, when police in Cape Girardeau recovered a Glock pistol that had a “switch” installed that converted it to an automatic weapon, according to Cross’ guilty plea. Investigators then traced the Glock pistol to a person who admitted that they had bought the pistol for Cross, who as a convicted felon is barred from purchasing or possessing firearms.
A confidential informant working with the Bureau of Alcohol, Tobacco, Firearms and Explosives contacted Cross via social media and asked about Glock switches, expressing an interest in purchasing one. Cross instead offered a drop-in “auto sear” that converts an AR-15-style rifle into an automatic weapon, and on Sept. 19, 2022 said his girlfriend would deliver the auto sear. She then delivered the device in exchange for $800. Cross later said he would send videos showing the informant how to install the auto sear and said he could offer a lower price if the informant bought in bulk.
On Sept. 27, 2022, Cross met with the informant in Cape Girardeau and sold three drop-in auto sear devices for $650 each. Cross also said that he was thinking about obtaining AR-15s so he could sell them with the auto sears installed.
On Oct. 12, 2022, Cross agreed to sell three more drop-in auto sears for a total of $1,900, and used a different woman to deliver them to an undercover ATF agent.
Glock switches and auto sears, even if not installed in a firearm, are considered machine guns under federal law.
Cross is scheduled to be sentenced May 4. Each charge carries a penalty of up to 15 years in prison, a $250,000 fine, or both.
During a January 5 press conference in St. Louis, local and federal officials warned of an increase in the recovery and use of Glock switches and auto sears, which make firearms difficult to control and “inherently dangerous.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Timothy Willis is prosecuting the case.
Missouri Couple Plead Guilty After Unlawfully Obtaining COVID-19 Jobless BenefitsRead the Press Release
CHARLESTON, W.Va. – A St. Charles, Missouri, couple pleaded guilty today after unlawfully obtaining $26,917 in unemployment benefits provided for by the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the Pandemic Unemployment Assistance (PUA) program.
Rhonda Notgrass, 45, pleaded guilty to theft of government property, and Robert Notgrass, 51, pleaded guilty to aiding and abetting the theft of government property.
The CARES Act provided for a temporary emergency increase in unemployment compensation benefits, referred to as the Federal Pandemic Unemployment Compensation Program (FPUC). The CARES Act also created the PUA program, which provided unemployment benefits to individuals not eligible for regular unemployment compensation or extended unemployment benefits. The FPUC and PUA programs are collectively referred to as pandemic unemployment benefits and even though these benefits are administered by the states, they are funded in part by the federal government.
The couple resided in Washington, West Virginia, when Robert Notgrass was employed as a pastor of a local church from before January 1, 2018, until he was released from his position on June 1, 2020. On August 15, 2020, Rhonda Notgrass applied for pandemic unemployment benefits with WorkForce West Virginia, the agency that administers the pandemic unemployment benefits for West Virginians. Rhonda Notgrass falsely claimed that she was unemployed as a direct result of a pandemic or major disaster. Robert Notgrass helped his wife complete the application and submitted a letter on her behalf in furtherance of the false claim.
On September 16, 2020, Rhonda Notgrass received a pandemic unemployment benefits payment from WorkForce West Virginia that included federal monies from the CARES Act. Rhonda Notgrass admitted that she received approximately $14,150 in pandemic unemployment benefits that she further admitted she knew she was not entitled to receive. Robert Notgrass admitted to wrongly receiving $12,767 in pandemic unemployment benefits.
Rhonda Notgrass and Robert Notgrass are scheduled to be sentenced on May 18, 2023. Each faces a maximum penalty of one year in prison, one year of supervised release, and a $100,000 fine. Rhonda Notgrass and Robert Notgrass each agree that they owe restitution totaling $26,917.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Department of Labor - Office of Inspector General (OIG) and WorkForce West Virginia.
United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorney Kathleen Robeson 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 Nos. 2:23-cr-16 and 2:23-cr-17.
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Minnesota Man Charged with Tax and Wire FraudRead the Press Release
A federal grand jury in St. Paul returned an indictment yesterday charging a Minnesota man with assisting in the preparation of false income tax returns and wire fraud.
According to the indictment, from 2014 to 2018, Beau Wesley Gensmer, of Prior Lake, owned a purported consulting company and, starting in 2014, hired a tax return preparer in Anchorage, Alaska, to prepare and electronically file federal income tax returns for members of the Shakopee Mdewakanton Sioux Community, the Native American tribe that owns Mystic Lake and Little Six Casinos outside of Minneapolis. Gensmer allegedly convinced tribal members to hire him to assist in the preparation and filing of their tax returns. The indictment alleges that Gensmer then emailed the Alaskan return preparer false information she used to prepare income tax returns for the tribe members that claimed fraudulent business losses and charitable contributions. The materially false entries allegedly resulted in tax refunds that averaged more than $100,000 for each client. Gensmer’s scheme allegedly involved numerous false income tax returns, for which he received approximately 30% of each inflated tax refund. In total, Gensmer is alleged to have caused a tax loss to the IRS of more than $1.5 million.
The defendant will appear before a U.S. Magistrate Judge for the District of Minnesota for his initial court appearance. If convicted, he faces a maximum penalty of 20 years in prison for each count of wire fraud and 3 years in prison for each false tax return charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, and United States Attorney Andrew M. Luger for the District of Minnesota made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Ahmed Almudallal and Dominick Giovanniello of the Justice Department’s Tax Division and are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Member of Drug Trafficking Organization Sentenced to Prison for Role in Large Methamphetamine Distribution ConspiracyRead the Press Release
LAS VEGAS – A member of the Pomona Sur Lokotes (PSL) drug trafficking organization was sentenced Tuesday by U.S. District Judge Kent J. Dawson to 14 years in prison followed by five years of supervised release for his leadership role in trafficking large quantities of methamphetamine from California and Mexico to Nevada.
Luis Arellano, aka “Lewis Arellano” and “Laughter,” (31) pleaded guilty in September 2022 to conspiracy to distribute a controlled substance.
According to court documents, in December 2019, law enforcement began investigating Arellano and other members of PSL. The evidence showed that Arellano was responsible for distributing over 4.5 kilograms of methamphetamine, a Schedule II controlled substance, in Las Vegas. He also directed other members to import methamphetamine from California and Mexico to Las Vegas.
Co-defendants Jacqueline Martinez (31) pleaded guilty and was sentenced to 78 months in prison; Amelio Che Medina (45) pleaded guilty and was sentenced to 97 months in prison; Anna Barrios (34) pleaded guilty and was sentenced to 90 months in prison; and Victor Manuel Rodriguez, aka “Smokey” (39) pleaded guilty and was sentenced to 100 months in prison. Co-defendants Ivan Salazar, aka “Evil,” (40) and Domingo Montes, aka “JR,” (36) pleaded guilty and await sentencing.
United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.
The FBI’s Safe Streets Gang Task Force and Las Vegas Metropolitan Police Department investigated the case. Assistant U.S. Attorney Kimberly Sokolich prosecuted the case.
This case was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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Mayville Man Charged with Sex Trafficking of A MinorRead 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 William A. Quinones, 48, of Mayville, NY, was arrested and charged by criminal complaint with transportation of a minor with intent to engage in criminal sexual activity and sex trafficking of a minor. The charges carry a mandatory minimum penalty of 15 years in prison and a maximum of life.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that in July 2021, the Chautauqua County Sheriff's Office received a complaint that Quinones had been sexually abusing two children over the past eight years. A subsequent investigation identified a total of four minor victims.
According to the criminal complaint, during interviews with investigators, the victims stated that Quinones raped or attempted to rape and sexually abused them. Quinones threatened them with violence or threatened to hurt their families if they disclosed what he was doing. The complaint states that Quinones had regular sexual contact with one minor victim beginning when she was eight years old, as often as three to four times each week. The minor victim told investigators that Quinones started paying her in exchange for sexual contact, beginning when she was 13 years old until age 16 years old. On one occasion, Quinones took her to Erie, PA, to pick up drugs. Prior to returning home, Quinones stopped at a motel to engage in sexual intercourse. During the course of the sexual abuse, Quinones repeatedly raped and physically abused her.
Quinones made an initial appearance before U.S. Magistrate Judge Jeremiah J. McCarthy and was ordered held following a detention hearing.
“Defendants who engage in the intentional harm of individuals, by forcing those individuals into actions they would not have otherwise engaged in, must be held accountable,” stated U.S. Attorney Ross. “While January is Human Trafficking Awareness Month, each and every day we must continue to create awareness of both sex and labor trafficking, which often victimize those who are most vulnerable, and negatively impact our communities. My office will continue to work with law enforcement to investigate and prosecute those who engage in this form of modern-day slavery.”
“These crimes tear at the foundation of our communities and victimize the most vulnerable members of our society,” said Matthew Scarpino, HSI Buffalo Special Agent-in-Charge “Our agents and victim assistance specialists will continue to seek justice for these victims and hold child predators accountable.”
The complaint is a result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino, and the Chautauqua County Sheriff’s Office, under the direction of Sheriff James Quattrone.
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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Maryland Felon Sentenced to 18 Months in Federal Prison for Fraudulently Obtaining More Than $419,000 in COVID-19 CARES Act Loans While on Probation for a Previous Federal ConvictionRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah J. Boardman sentenced Sherrie Lynne Bryant, age 55, of Bowie, Maryland, yesterday to 18 months in federal prison, followed by three years of supervised release, for wire fraud, relating to the submission of fraudulent Coronavirus Aid, Relief, and Economic Security (“CARES”) Act loan applications, and for violating her probation from a previous federal conviction for obstruction of an audit.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Darrell Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
Financial assistance offered through the CARES Act, which was enacted in March 2020 to provide emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic, included forgivable loans to small businesses for job retention and certain other expenses, through the Paycheck Protection Program, and Economic Injury Disaster Loan (EIDL) and/or an EIDL advance to help businesses meet their financial obligations, both administered through the Small Business Administration (SBA). An EIDL advance did not have to be repaid, and small businesses could receive an advance of up to $10,000, even if they were not approved for an EIDL loan.
According to her plea agreement, Bryant was the managing member of NOW LLC. The company’s stated purpose was to “provide mentoring, education and training to underserved populations. Also, to provide vocational rehabilitation and mental health support services to: children, youth and adults.” In reality, NOW LLC has been awarded contracts for “janitorial services” for Amtrak at the New Carrollton, Maryland and Baltimore-Washington International Airport Amtrak stations. They have also applied for SBA loans through various programs and cited their business as “construction and contractors.” A review of checks from NOW LLC’s operating account indicate that they may be outsourcing janitorial work to subcontractors.
On March 30, 2020, Bryant submitted an EIDL loan application for $89,500, which falsely stated that NOW LLC earned approximately $475,610 in gross revenues during the prior 12 months and incurred cost of goods sold of $276,614 during the same time frame. Further, Bryant falsely answered “No” to the question concerning whether she had been convicted…or been placed on any form of parole or probation. In fact, Bryant was on probation for a previous federal conviction at the time she submitted the application.
As detailed in the plea agreement, Bryant received a $10,000 EIDL advance and was subsequently approved for, and received, loan proceeds of $89,400. On April 22, 2021, Bryant submitted a request for a modification of the EIDL, specifically, approval to increase the loan amount to $388,000, based on the certifications in her prior EIDL application. The loan increase was approved and on June 28, 2021, Bryant received additional loan proceeds of $298,500.
In the meantime, on April 28, 2020, Bryant also applied for, and subsequently received, PPP loan proceeds totaling $21,200. Bryant again falsely responded to the question that asked, “within the last five years, for any felony, has the Applicant…(1) been convicted; (2) pleaded guilty; (3) pleaded nolo contendere; (4) been placed on pretrial diversion; or (5) been placed on any form of parole or probation (including probation before judgment)?” Bryant answered “No” to that question, knowing that she was on federal supervised release at the time the application was submitted.
Bryant admitted that she fraudulently obtained at least $419,100 in COVID-19 CARES Act loan proceeds. Bryant misappropriated a portion of the funds for her personal use, including paying for her car and a boat, paying for a vacation, and paying for tickets to sporting events.
For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
United States Attorney Erek L. Barron commended the IRS-CI for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Kelly O. Hayes and Joseph Wenner, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao/md.
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Milwaukee Man Sentenced to Five Years in Federal Prison for Kenosha ArsonRead the Press Release
United States Attorney Gregory J. Haanstad of the Eastern District of Wisconsin announced that on January 27, 2023, United States District Judge J.P. Stadtmueller sentenced Esmond King (age: 33) to 60 months in federal prison for arson of a building used in interstate commerce, in violation of Title 18, United States Code, Section 844(i). King, who entered a guilty plea to the offense last year, also will spend three years on supervised release following his prison term and will be required to pay over $271,000 in restitution related to the property damage caused by his offense.
According to court filings, King broke into Mary’s Beauty Salon in Kenosha, Wisconsin, during the early morning of September 11, 2021. While inside, King used a combustible aerosol to ignite a fire inside the office within the salon. Officers arrested King as he exited the salon and brought him to the Kenosha Police Department for processing. The Kenosha Fire Department responded to the scene and was able to extinguish the fire. However, the fire and smoke had damaged not only significant portions of the salon but also businesses that shared the same building. While King was being taken into custody, he threatened to kill officers and their families.
“There is no excuse for the reckless and wanton destruction of property of innocent citizens and business owners,“ stated U.S. Attorney Haanstad. “The U.S. Attorney’s Office remains committed to working with our law enforcement and community partners to protect all who live and work in the Eastern District of Wisconsin.”
“The investigation and prosecution of this individual as well as the sentence imposed illustrates the seriousness of this crime,” said Acting ATF Special Agent in Charge of the Chicago Filed Division Jeffrey L. Matthews. “ATF stands shoulder to shoulder with our law enforcement partners and the United States Attorney’s office to ensure those responsible are held accountable.”
The Bureau of Alcohol, Tobacco, Firearms & Explosives (“ATF”) Chicago Field Division investigated the case, assisted by the Kenosha Police Department and Kenosha Fire Department and it was prosecuted by Assistant United States Attorney Peter Smyczek.
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Man Sentenced to 120 Months for Conspiracy to Possess with Intent to Distribute CocaineRead the Press Release
St. Thomas, VI – United States Attorney Delia L. Smith announced today that Matthew Hazel, 31, was sentenced on January 27, 2023 to 120 months’ imprisonment followed by five years of supervised release for conspiracy to possess with intent to distribute cocaine. District Court Chief Judge Robert Molloy also sentenced Hazel to 60 months’ imprisonment followed by three years of supervised release for possession of a firearm by a prohibited person, with both sentences to run concurrently. Hazel must also pay a $200 special assessment.
On August 18, 2022, Hazel pleaded guilty to conspiracy to possess with intent to distribute cocaine and possession of a firearm by a prohibited person in connection with a drug deal that occurred at the Havensight Mall on St. Thomas. According to court documents, on October 13, 2021, a Drug Enforcement Administration (DEA) Confidential Source (CS) arranged to purchase 25 kilograms of cocaine for $312,000. On October 14, 2021, at approximately, 4:01 PM, agents and the CS arrived at the Havensight Mall, which was the agreed-upon location, for the CS to purchase the cocaine. Hazel was one of several individuals who arrived at the scene. Hazel arrived driving a black G35 Infiniti sedan, which bore no license plate. Upon arrival on the scene, Hazel spoke with a couple of men before he exited the G35 Infiniti as the trunk of the vehicle sprung open. Agents then observed Hazel and the CS at the rear of the G35 looking into the trunk. Moments later, agents observed Hazel close the trunk as the CS gave a signal to the agents, confirming the presence of the suspected cocaine in the G35 Infinity.
Agents arrested Hazel and the other men. After the arrest, agents recovered approximately 25 brick-like packages of suspected cocaine from the trunk of the G35 Infinity and one loaded semi-automatic Walther Arms handgun, which was on the driver’s seat.
This case is being investigated jointly by the DEA, Homeland Security Investigations, Air Marine Operations, Bureau of Alcohol Tobacco, Firearms and
Explosives and the Virgin Islands Police Department. It is being prosecuted by Assistant United States Attorneys Melissa Ortiz and Meredith Edwards.This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Loveland Man Charged and Detained in Connection with Arson Church FireRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Darion Ray Sexton, age 21, of Loveland, has been arrested and charged by criminal complaint with causing damage to a Loveland Church by fire. Sexton was ordered detained today pending trial by United States Magistrate Judge James P. O’Hara. Sexton had been arrested and charged in a criminal complaint filed on January 23, 2023.
According to allegations in the criminal complaint, in the late evening of January 19, 2023, law enforcement responded to an active fire at church in Loveland, Colorado. First responders extinguished a fire at the front door of the church and then found evidence of another fire in the church basement, which appeared to have been extinguished by the emergency sprinkler system. A broken glass bottle was recovered from the front door near the fire, and the area smelled like gasoline. In the basement, another broken bottle was found, along with a partially melted plastic bottle. Analysis from the ATF indicated that the areas of fire damage were separate and concluded there were multiple areas of fire origin. A doorbell camera at the church captured a masked individual throwing a “Molotov-cocktail”-type destructive device at the church’s front door. Footprints in the snow near the church led to a neighborhood and to the defendant’s residence. Law enforcement later found a plastic bottle at the defendant’s home that was similar to the plastic bottle found in the church basement. Additionally, law enforcement reviewed video from a Loveland liquor store two days prior to the fire showing a man who appears to be the defendant purchasing liquor bottles similar to the broken glass bottles found at the church.
This case is being investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Loveland Police Department. Assistant United States Attorney Bryan Fields is handling the prosecution.
The charge in the complaint is an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
CASE NUMBER: 23-mj-00026
Leader of Guatemalan Drug Trafficking Organization that Smuggled Multi-Ton Quantities of Drugs Sentenced to 17.5 YearsRead the Press Release
For Further Information, Contact:
Assistant U.S. Attorney Kevin Mokhtari (619) 546-8402SAN DIEGO – Willian Estuardo Lemus-Lara, aka “Humilde,” a high-level cartel boss from Guatemala, was sentenced in federal court today to 210 months in federal prison.
According to public documents, Lemus-Lara was identified as the leader of a transcontinental criminal organization that moved multi-ton quantities of cocaine from South America via maritime smuggling routes to Guatemala and ultimately to conspirators in northwest Guatemala and Mexico, who in turn imported that cocaine into the United States.
Lemus-Lara, 51, was the head of the organization, and despite the best efforts of the United States to stymie his cocaine operation, he was a prolific trafficker. As the government described in its sentencing papers, a five-day snapshot of his operation gave unparalleled insight into Lemus-Lara’s cocaine trafficking prowess. During a five-day span in May 2017, Lemus-Lara coordinated and oversaw a smuggling venture involving four cocaine-laden vessels. Through this investigation, three of those vessels were interdicted by the U.S. Coast Guard and the Guatemala FEN, which is Guatemala’s Naval Special Forces. The vessels had between 810-914 kilograms of cocaine each. A fourth boat made it through and delivered 814 kilograms of cocaine to Lemus-Lara and his organization.
Lemus-Lara was targeted as part of a long-term joint investigation led by Homeland Security Investigations and the Drug Enforcement Administration. The investigation has led to the indictment and extradition of several high-level South and Central American drug traffickers, including several, like Lemus-Lara, from Guatemala.
“This office is committed to aggressively pursuing leaders of drug trafficking organizations who use international waters as a corridor to smuggle cocaine to the United States,” said U.S. Attorney Randy Grossman. “Today’s sentence marks the culmination of years of efforts by agents and prosecutors to keep those who flood the United States with drugs accountable for their actions.”
Grossman thanked the prosecution team and the law enforcement agencies for their excellent work on this case.
“This sentencing of Lemus is the culmination of years of collaborative efforts between HSI, DEA, the U.S. Attorney’s Office and government of Guatemala,” said Chad Plantz, Special Agent in Charge of Homeland Security Investigations (HSI) San Diego. “The joint effort has significantly impacted this international criminal organization’s ability to import dangerous drugs into the United States.”
“International drug trafficking organizations are driving addiction and overdose deaths in the United States,” said DEA Special Agent in Charge Shelly S. Howe. “Today’s sentencing of Lemus-Lara is a win for DEA and our law enforcement partners. We are committed to stopping these organizations from bringing large quantities of drugs into our country and holding their leaders accountable.”
This case 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.
DEFENDANTS Case Number 18CR0390-DMS
Willian Lemus-Lara Age: 51 Guatemala
SUMMARY OF CHARGES
Count 1- Conspiracy to Possess with Intent to Distribute Cocaine on Board a Vessel –
Title 46, U.S.C., Section 70503, 70506(b)
Maximum Penalty: Life in prison and $10 million fine
Count 2 - International Conspiracy to Distribute Controlled Substances –
Title 21, U.S.C., Sections 959, 960, 963Maximum Penalty: Life in prison and $10 million fine
AGENCIES
Homeland Security Investigations (HSI)
Drug Enforcement Administration (DEA)
Customs and Border Protection (CBP)
U.S. Coast Guard
HSI Attaché Guatemala City, Guatemala
HSI Attaché Mexico City Mexico
Department of Justice, Office of International Affairs
Department of Justice, Office of Enforcement Operations
Department of Justice, Organized Crime and Drug Enforcement Task Force (OCDETF)
Joint Task Force-Investigations (JTF-I)
Joint Interagency Task Force-South (JIATF-S)
Las Vegas Resident Sentenced to Prison for Child Sexual ExploitationRead the Press Release
LAS VEGAS – A Las Vegas man was sentenced today by U.S. District Judge James C. Mahan to 24 years and four months in prison followed by lifetime supervised release. In June 2022, a jury convicted Barry Allen Gabelman (52) of coercion and enticement. Under the Sex Offender Registration Notification Act, Gabelman is required to register as a sex offender after completion of his prison term.
According to court documents, from October 31 to December 6, 2019, Gabelman exchanged sexually explicit messages and photos via social media and a messaging account with individuals whom he believed to be an 11-year-old girl and her stepfather. During their communications, Gabelman discussed having sex with the girl, requested nude images of the girl, and sent the girl photos of his genitals. On December 6, 2019, he traveled to a pre-arranged location in Las Vegas intending to have sex with the girl, but instead he was arrested by law enforcement.
United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.
This case was investigated by the FBI and the Internet Crimes Against Children Task Force. Assistant U.S. Attorneys Bianca Pucci and Supriya Prasad prosecuted the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, 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 and for information about internet safety education, please visit www.justice.gov/psc.
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 1-800-843-5678, or https://report.cybertip.org.
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Las Vegas Man Sentenced to Prison for Distribution of Fentanyl Resulting in DeathRead the Press Release
LAS VEGAS – A Las Vegas man was sentenced Monday by U.S. District Judge Richard F. Boulware II to 10 years in prison followed by 15 years of supervised release for distributing counterfeit pills laced with fentanyl, that resulted in the death of another person.
Gabriel Ulloa (30) pleaded guilty in May 2022 to distribution of a controlled substance.
According to court documents, in June 2020, Ulloa sold three counterfeit M-30 oxycodone pills that contained fentanyl. Ulloa’s phone records indicated that he was aware he was selling counterfeit pills. A 27-year-old man – who believed he was buying oxycodone pills from Ulloa – died as result of ingesting the fentanyl-laced pills.
Fentanyl – a Schedule II controlled substance – is a synthetic opioid that is 50 times more potent than heroin. Just two milligrams of fentanyl, or the amount that could fit on the tip of a pencil, is considered a potentially lethal dose. In 2021, a record number of Americans – 107,622 – died from a drug poisoning or overdose. Sixty-six percent of those deaths can be attributed to synthetic opioids such as fentanyl.
United States Attorney Jason M. Frierson for the District of Nevada, Assistant Special Agent in Charge Kevin Adams for the Drug Enforcement Administration (DEA) Las Vegas District Office, and Acting Special Agent in Charge Christopher M. Miller for HSI Las Vegas made the announcement.
The DEA, HSI, Las Vegas Metropolitan Police Department Major Violators Narcotics Crimes Bureau, Overdose Response Team, and the Henderson Police Department investigated the case. Assistant U.S. Attorney Kimberly Sokolich prosecuted the case.
This case was part of the Southern Nevada’s High Intensity Drug Trafficking Areas program that enhances and coordinates drug control efforts among local, state, and federal law enforcement agencies. The program provides agencies with coordination, equipment, technology, and additional resources to combat drug trafficking and its harmful consequences in critical regions of the United States.
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Las Vegas Dentist Pleads Guilty to Failing to Pay Employment TaxesRead the Press Release
A Nevada-licensed dentist pleaded guilty yesterday to willfully failing to pay over employment taxes withheld from employees of his Las Vegas practice.
According to court documents, Timothy Wilson of Phoenix, Arizona, was a Nevada-licensed dentist who owned and operated Starsmiles Children’s Dentistry, LLC, a pediatric dental practice with offices located in North Las Vegas and Las Vegas. As the sole owner of Starsmiles, Wilson was responsible for collecting and paying over to the IRS the income, Medicare, and Social Security taxes withheld from the wages paid to Starsmiles’ employees. From 2011 through 2014, Wilson withheld these taxes from his employees’ wages but did not to pay the withholdings to the IRS. In total, Wilson caused a tax loss of $289,654.63.
Wilson is scheduled to be sentenced on April 24, 2023, and faces a maximum penalty of 5 years in prison. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and United States Attorney Jason M. Frierson for the District of Nevada made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Patrick Burns and Regina Jeon of the Justice Department’s Tax Division are prosecuting the case.
Las Vegas Dentist Pleads Guilty to Failing to Pay Employment TaxesRead the Press Release
LAS VEGAS – A Nevada-licensed dentist pleaded guilty yesterday to willfully failing to pay over employment taxes withheld from employees of his Las Vegas practice.
According to court documents, Timothy Wilson, of Phoenix, Arizona, was a Nevada-licensed dentist who owned and operated Starsmiles Children’s Dentistry, LLC, a pediatric dental practice with offices located in North Las Vegas and Las Vegas. As the sole owner of Starsmiles, Wilson was responsible for collecting and paying over to the IRS the income, Medicare, and Social Security taxes withheld from the wages paid to Starsmiles’ employees. From 2011 through 2014, Wilson withheld these taxes from his employees’ wages but did not pay the withholdings to the IRS. In total, Wilson caused a tax loss of $289,654.63.
Wilson is scheduled to be sentenced on April 24, 2023, and faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and United States Attorney Jason M. Frierson for the District of Nevada made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Patrick Burns and Regina Jeon of the Justice Department’s Tax Division are prosecuting the case.
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King of Prussia Woman Sentenced to 12 Years in Federal Prison for Drug Trafficking and COVID FraudRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that Denise Brown was sentenced yesterday to 144 months in prison for conspiracy to distribute heroin and fentanyl and 60 months for submitting a false claim to the Small Business Administration (SBA), to run concurrently. Brown was also ordered to pay $10,000 in restitution to the SBA. U.S. District Judge Maryellen Noreika pronounced the sentence.
According to court documents and statements made in open court, Denise Brown, age 40, was a leader of the Jamar Jackson drug trafficking organization responsible for distributing large quantities of drugs, sourced from Mexican cartels, throughout Delaware and the surrounding region. Brown managed the day-to-day drug business, setting up the DTO’s drug milling and packaging operations in Bear, Delaware and King of Prussia, Pennsylvania, recruiting other members of the conspiracy, and directing drug sales. Brown was ultimately arrested at her King of Prussia home on September 23, 2020. Upon searching Brown’s home, law enforcement found thousands of packets of fentanyl-laced heroin, bulk quantities of heroin and fentanyl, and over $120,000 in cash.
In June 2020, Brown also submitted a fraudulent application to the SBA seeking COVID-19 relief funds through the Economic Injury Disaster Loan program. Based on this this application, the SBA deposited $10,000 into the defendant’s bank account.
U.S. Attorney Weiss stated, “Yesterday, the Court justly held Denise Brown accountable for her crimes. By trafficking large quantities of drugs from Mexico and distributing deadly fentanyl into our communities, the defendant put lives at risk. She also took advantage of government program designed to provide economic relief during the COVID-19 pandemic. This sentence sends a message that those who aspire to profit from illegal activity – whether through drug distribution or fraud – will face significant punishment.”
“Yesterday’s sentence demonstrates the unwavering resolve of law enforcement to protect our community and economy against criminals engaged in drug trafficking and fraud,” said William S. Walker, Special Agent in Charge of the Homeland Security Investigations (HSI) Philadelphia office. “Through exceptional collaborative efforts, HSI and our partners aggressively identified and investigated the criminal activity in this case. This sentencing is proof positive that those who commit such crimes will be held accountable for their actions.”
U.S. Postal Inspection Service (USPIS) Acting Inspector in Charge, Raimundo Marrero, added that, “Denise Brown help lead an organized, multi state, illegal narcotics distribution organization. That organization distributed large quantities of dangerous drugs, including heroin and fentanyl, that destroy our communities. She will face many years in jail which will hopefully serve as a warning to others; these drugs destroy and if you get involved in their distribution, you run the risk of spending many years in prison. I want to thank our law enforcement partners and the United States Attorney’s Office for the hard work pulling this case together.”
“IRS-Criminal Investigation is proud to have provided its financial expertise in this investigation,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. “IRS-CI will continue to work with our law enforcement partners by following the money and leveraging our resources.”
Assistant U.S. Attorney Meredith C. Ruggles prosecuted the case along with former Assistant U.S. Attorneys Christopher L. de Barrena-Sarobe and Whitney Cloud. This case was investigated by HSI and USPIS, with assistance from IRS-Criminal Investigation Division, Delaware State Police, Pennsylvania State Police, and local law enforcement partners.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 20-CR-00084 (Jamar Jackson et al.) and Case No. 20-CR-00075 (Castro Valenzuela).
Kennewick Man Sentenced to 42 Months in Federal Prison for Obstructing an Official Proceeding, Lying to the FBI, and Staging Automobile AccidentRead the Press Release
Spokane, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced that Ali Abed Yaser, age 52 of Kennewick, Washington, was sentenced after having pleaded guilty to conspiracy to obstruct an official proceeding, making false statements to the FBI, conspiracy to commit mail and wire fraud, conspiracy to commit healthcare fraud, and two counts of mail fraud. United States District Judge Mary K. Dimke sentenced Yaser to a 42-month term of imprisonment, to be followed by a 3-year term of court supervision after he is released from federal prison. Judge Dimke also ordered Yaser to pay restitution in the amount of $126, 990 and forfeiture of $19,978. At sentencing, Judge Dimke observed that Yaser engaged in a “concerted and dedicated effort to undermine the credibility of” the FBI and his actions “undermined the reputation of that agency and the community’s ability to have trust and faith in the justice system as a whole.”
According to court proceedings, in February 2019, the FBI opened an official investigation into allegations that Yaser and others were involved in a scheme to defraud insurance companies and obtain money and property by staging automobile accidents, and filing false and fraudulent claims with insurance companies. As part of the investigation, the FBI used a confidential human source (CHS) who covertly recorded conversations with individuals suspected of being involved in the staged accident scheme. The CHS provided information to the FBI regarding violations and suspected violations of the Federal criminal laws.
In May 2020, the FBI executed warrants to search residences in Washington and California for evidence of federal crimes. Shortly afterward, Yaser told the CHS to be careful because Yaser suspected someone was an FBI informant. Yaser told the CHS that he learned that the individual Yaser suspected was an FBI informant recently visited the CHS. Yaser admonished the CHS for not calling him when that individual visited the CHS. Yaser told the CHS he would have come to his residence, closed the garage door, shut off the security system cameras, and killed the individual Yaser suspected was the FBI informant. Yaser added, “they would not have recognized his face from his foot.” Yaser encouraged the CHS to call the person Yaser thought was the FBI informant and to convince the person to meet with Yaser at his residence.
A few days later, Yaser met with the CHS and discussed his plan to file a false, fictitious, and fraudulent complaint against the FBI case agent and the suspected FBI informant. Yaser also sought to persuade others to support his plan to make false allegations against the FBI case agent and the other individual. Yaser stated, “When we make [the suspected informant] wear the handcuffs, we will be sending him away from the field, keep him on the sideline.” Yaser also stated, “After I screw [the suspected informant], a week later I would go to [the FBI] again and say to them, Protect me. Protect my children. I need protection for myself and my children, and that Al-Mahdi Army militias are threatening my family in Iraq. I would put [the suspected informant] in such a mess he would never get out of.”
Yaser instructed the CHS to audio record the suspected informant so Yaser could tamper with the recording and play a tampered version for police. Yaser told the CHS, “I want to record his words. There are words I want to pick out. So, If I am at a spot, I will play them to the police. I would say when he came to me here, I became afraid and thought he must have something bad, and I was afraid of him, and I put the recorder for him.”
In late August 2020, Yaser discussed fabricating a story for local local police and the FBI to further his scheme to discredit the case agent and the individual Yaser suspected was an FBI informant. Yaser’s plan was to make them unavailable as witnesses, to get the FBI agent removed from the case and to impede proceedings against Yaser. Yaser stated in sum and substance, “We will file a complaint with the police and the police will forward it to [FBI]” and “[t]he police will turn it upside down on them, it won’t take half an hour and it would reach them.”
In September 2020, when interviewed by FBI, Yaser and codefendant Mohammed Naji Al-Jibory falsely accused the FBI case agent and the individual they suspected of being an FBI informant of soliciting approximately a $20,000 bribe from Yaser to make the case go away. In doing so, Yaser and Al-Jibory engaged in misleading conduct toward the FBI agents with the intention of hindering, delaying, and preventing communication to these officers and a federal judge of information relating to the commission and possible commission of federal crimes. Yaser and Al-Jibory also attempted to corruptly obstruct, influence, and impede, and attempt to obstruct, influence, and impede an official proceeding, that is, a federal grand jury proceeding and the federal criminal case against him.
Vanessa R. Waldref, United States Attorney for the Eastern District of Washington said, “Staged accidents make our streets dangerous and distract police from responding to legitimate distress calls. Moreover, efforts to hinder federal criminal proceedings will not be tolerated. We will continue to work closely with out federal and state law enforcement, and private industry, partners to investigate fraud schemes. I am grateful to the tremendous investigative agents and Assistant United States Attorney George Jacobs, who spent substantial time and resources to ensure that our community continues to be safe and strong, and that individuals who perpetrate these types of complex schemes are held accountable.”
“When faced with the discovery of his fraud scheme, Mr. Yaser doubled down,” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “Despite his efforts to discredit law enforcement, the full extent of his crimes was revealed and thwarted. I am thankful for the hard work of our investigators and partners to hold Mr. Yaser accountable for his actions.”
This case was investigated by the Federal Bureau of Investigation, the United States Department of Health and Human Services, Office of Inspector General, and the Internal Revenue Service, Criminal Investigation, with the assistance of the National Insurance Crime Bureau. This case is being prosecuted by George J.C. Jacobs, III, Assistant United States Attorney for the Eastern District of Washington. Dominique J. Park, a former Assistant United States Attorney for the Eastern District of Washington, also participated in the investigation and indictment of this case.
4:21-CR-6042-MKD-1
Justice Department Announces Charges and New Arrest in Connection with Assassination Plot Directed from IranRead the Press Release
A federal court in New York today unsealed murder-for-hire and money laundering charges against three members of an Eastern European criminal organization for plotting the murder of a U.S. citizen who has been targeted by the Government of Iran for speaking out against the regime’s human rights abuses.
According to court documents, Rafat Amirov, aka Farkhaddin Mirzoev, aka Pᴎᴍ, aka Rome, 43, of Iran; Polad Omarov, aka Araz Aliyev, aka Polad Qaqa, aka Haci Qaqa, 38, of the Czech Republic and Slovenia; and Khalid Mehdiyev, 24, of Yonkers, New York, are charged with money laundering and murder-for-hire in a superseding indictment unsealed today in the Southern District of New York. Amirov, who resides in Iran, arrived in the Southern District of New York on Jan. 26, and will be arraigned on charges before Magistrate Judge Sarah L. Cave today. Mehdiyev was arrested on July 29, 2022, on charges contained in an underlying criminal complaint and will be arraigned on the charges in the superseding indictment before the Honorable Colleen McMahon on Jan. 31, 2023, at 4 p.m. ET. Omarov was arrested in the Czech Republic on Jan. 4, 2023, and the United States will request his extradition on the charges in the superseding indictment.
“The Victim in this case was targeted for exercising the rights to which every American citizen is entitled. The Victim publicized the Iranian Government's human rights abuses; discriminatory treatment of women; suppression of democratic participation and expression; and use of arbitrary imprisonment, torture, and execution,” said Attorney General Merrick B. Garland. “The Department of Justice will not tolerate attempts by an authoritarian regime to undermine those protections and the rule of law upon which our democracy is based. We will not tolerate attempts by a foreign power to threaten, silence, or harm Americans. We will stop at nothing to identify, find, and bring to justice those who endanger the safety of the American people.”
“Today’s indictment exposes a dangerous menace to national security – a double threat posed by a vicious transnational crime group operating from what it thought was the safe haven of a rogue nation: Iran,” said Deputy Attorney General Lisa O. Monaco. “As national security and criminal threats continue to blend, the Department of Justice will use all its tools to zealously protect freedom and hold accountable all those who would use violence to undermine it.”
“The indictment unsealed today reflects the FBI’s commitment to follow the facts wherever they lead, to work our way up to the leaders of criminal plots wherever they are, and to use our long reach to bring those responsible here to face justice in the United States,” said FBI Director Christopher Wray. “The conduct charged shows how far Iranian actors are willing to go to silence critics, even attempting to assassinate a U.S. citizen on American soil. We are determined to safeguard the rights of all Americans from the oppressive reach of hostile regimes.”
“Today’s charges underscore the Department’s commitment to protecting Americans and our fundamental values in the face of all forms of transnational repression,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “To foreign actors who plot violence on our soil believing they are out of our reach, know that we will pursue you, wherever you may be, until we deliver justice.”
“As alleged, the defendants are members of an organized crime group hired to assassinate, right here in New York City, a U.S. citizen of Iranian origin who has been critical of the regime’s autocracy and its disregard for human rights,” said U.S. Attorney Damian Williams for the Southern District of New York. “This is the second time in the past two years that this office and our partners at the FBI have disrupted plots originating from within Iran to kidnap or kill this victim for the ‘crime’ of exercising the right to free speech, to independent political thought, and to advocating for the rights of the oppressed and disenfranchised inside Iran. Thanks to the extraordinary efforts of the career prosecutors and FBI agents who led the investigation, this new plot to silence the victim has been disrupted and the defendants will face justice in an American court.”
According to the allegations contained in the superseding indictment, other court filings, and statements made during court proceedings:
Amirov is a leader in an Eastern European criminal organization (the Organization) who resides in Iran. Omarov also holds a leadership role in the Organization and resides in Eastern Europe. Mehdiyev, a member of the Organization, resides in Yonkers, New York. The Organization has ties to Iran and is violent, engaging in murders, kidnappings, assaults, and extortions, and members typically identify themselves with tattoos and other displays of eight-pointed stars.
Since at least July 2022, the Organization was tasked with carrying out the murder of a U.S. citizen of Iranian origin (the Victim), who previously has been the target of plots by the Government of Iran to intimidate, harass and kidnap the Victim. The Victim is a journalist, author and human rights activist, residing in Brooklyn, New York, who has publicized the Government of Iran’s human rights abuses and suppression of political expression, including in connection with continuing protests against the regime across Iran. As recently as 2020 and 2021, Iranian intelligence officials and assets plotted to kidnap the Victim from within the United States for rendition to Iran in an effort to silence the Victim’s criticism of the regime. That plot was disrupted and exposed by the FBI and led to the filing of federal kidnapping conspiracy and other charges in the Southern District of New York against several participants in the plot in United States v. Farahani, et al., 21 Cr. 430.
About one year after the Farahani charges were filed, the Organization was tasked with carrying out the Victim’s assassination on U.S. soil. Beginning in approximately mid-July 2022, Amirov sent targeting information – which Amirov had received from other individuals in Iran – about the Victim and the Victim’s residence to Omarov. Omarov, in turn, communicated the targeting information to Mehdiyev in order to begin conducting surveillance of the Victim and reconnaissance of the Victim’s residence and surrounding neighborhood. Mehdiyev sent photographs and videos of the Victim’s residence to Omarov for further sharing with Amirov and the plot’s orchestrators in Iran.
After Mehdiyev’s initial surveillance of the Victim’s residence, Amirov and Omarov arranged for the delivery of a $30,000 cash payment to Mehdiyev in New York City in furtherance of the plot. Mehdiyev used a portion of this cash payment to buy an AK-47-style assault rifle along with two magazines for ammunition and at least 66 rounds. Mehdiyev bragged in electronic communications that he had procured for himself a “war machine.”
Between July 20 and 28, 2022, Mehdiyev repeatedly traveled to the Victim’s neighborhood to conduct surveillance and reconnaissance, sending reports of the Victim’s activities, photographs, and videos to Omarov for further distribution to Amirov. On July 24, 2022, after arriving at the Victim’s residence, Mehdiyev reported to Omarov that Mehdiyev was “at the crime scene.” Omarov encouraged Mehdiyev, “You are a man!” Mehdiyev described to Omarov that “we blocked it from both sides, it will be a show once she steps out of the house.” Omarov forwarded this report to Amirov, who responded, “God willing.”
Mehdiyev was unable to carry out the assassination that day and returned on several subsequent days to seek out opportunities to complete the murder mission. Amirov, Omarov and Mehdiyev schemed different strategies to attempt to draw the Victim out, including by attempting to ask the Victim for flowers from the Victim’s garden. On July 28, 2022, Mehdiyev sent Omarov a video taken from inside the car Mehdiyev was driving showing the assault rifle, along with the message that “we are ready.” The Victim, after observing suspicious activity outside the residence, left the area, and Mehdiyev drove away shortly afterwards. After Mehdiyev drove away from the Victim’s residence, he was stopped after a traffic violation, and during a subsequent search of the car, police officers found the assault rifle, 66 rounds of ammunition, approximately $1,100 in cash, and a black ski mask.
Amirov, Omarov, and Mehdiyev are charged with: (1) murder-for-hire, which carries a maximum sentence of 10 years in prison; (2) conspiracy to commit murder-for-hire, which carries a maximum sentence of 10 years in prison; and (3) conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison. Mehdiyev is additionally charged with possessing a firearm with an obliterated serial number, which carries a maximum sentence of five years in prison.
The FBI and its New York Field Office Counterintelligence-Cyber Division, the New York FBI Iran Threat Task Force, the New York FBI Counterintelligence Task Force and the New York FBI Joint Terrorism Task Force are investigating the case, with valuable assistance provided by the New York City Police Department (NYPD) and the NYPD Intelligence Bureau, as well as the Justice Department’s National Security Division and Office of International Affairs.
Assistant U.S. Attorneys Michael D. Lockard, Jacob H. Gutwillig, and Matthew J.C. Hellman for the Southern District of New York are prosecuting the case, with valuable assistance provided by Trial Attorney Christopher M. Rigali of the National Security Division’s Counterintelligence and Export Control Section.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Jury Convicts Former U.S. Postal Service Clerk of Stealing Mail and Money OrdersRead the Press Release
LAS VEGAS – A jury convicted a former U.S. Postal Service clerk on Wednesday for stealing a customer’s mail and cashing the postal money orders worth over $2,300 that were inside.
Following a three-day trial, James Earl Magee, 32, of Las Vegas, was found guilty of theft of government money and mail theft by a postal employee. U.S. District Judge Gloria M. Navarro presided over the trial. Sentencing has been scheduled for April 25, 2023.
According to court documents and evidence presented during trial, between June 28, 2016 and July 6, 2016, Magee stole an envelope containing three money orders worth about $2,340.27 and cashed the money orders for his personal use.
The maximum statutory penalty for Theft of Government Money is 10 years’ imprisonment, a three-year period of supervised release, and a fine of $250,000. The maximum statutory penalty for Mail Theft by a Postal Employee is five years’ imprisonment, a three-year period of supervised release, and a fine of $250,000.
United States Attorney Jason M. Frierson for the District of Nevada and Acting Special Agent in Charge London Mulcahy for the U.S. Postal Service - Office of Inspector General, Western-Pacific Area Field Office made the announcement.
The U.S. Postal Service - Office of Inspector General investigated the case.
Complaints regarding fraud, waste, and misconduct within the U.S. Postal Service involving employees and/or contractors, please file an online complaint form with the U.S. Postal Service – Office of Inspector General Hotline at: https://www.uspsoig.gov/form/file-online-complaint.
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Jamestown Woman Pleads Guilty for Her Role in Narcotics ConspiracyRead 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 Katie Calimeri, 30, of Jamestown, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to conspiracy to possess with intent to distribute, and to distribute, heroin, fentanyl, and methamphetamine. The charge carries a maximum penalty of 20 years in prison and a fine of $1,000,000.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that between 2019, and June 2022, Calimeri conspired with others to sell heroin, fentanyl, and methamphetamine for profit and for her own use. Calimeri utilized Facebook to conduct her drug trafficking activities, including making deals with associates, suppliers, and customers. On February 11, 2021, Calimeri sold heroin to an individual working with the Jamestown Metro Drug Task Force.
Co-defendant Rachelle Allison was previously convicted and is awaiting sentencing. Charges remain pending against co-defendants Ryan Bloom and Morales Sanchez.This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The plea is the result of an investigation by the Chautauqua County Sheriff’s Office, under the direction of Sheriff James Quattrone, the Jamestown Police Department, under the direction of Chief Timothy Jackson and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division.
Sentencing is scheduled for July 21, 2023, at 9:00 a.m. before Judge Sinatra.
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Jamestown Man Pleads Guilty to Meth ChargeRead 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 Luis Martinez, 51, of Jamestown, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to conspiracy to possess with intent to distribute, and to distribute, five grams or more of methamphetamine. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years and a fine of $5,000,000.
Assistant U.S. Attorneys Evan K. Glaberson and Michael J. Adler, who are handling the case, stated that in May and June of 2020, Martinez conspired with others to sell methamphetamine. On June 5, 2020, investigators executed a search warrant at a Water Street residence, recovering approximately 20 grams of cocaine, a loaded Glock, $3,534 in cash, 14 individually wrapped plastic bags containing a total of approximately 363 grams of methamphetamine, a kilo press, two digital scales, a number of cell phones and tablets, additional smaller bags of cocaine and methamphetamine, and other drug paraphernalia.
On June 10, 2020, investigators received information that Martinez had an outstanding parole warrant issued against him, at which time he was located in a vehicle on Price Street and taken into in custody. Law enforcement also recovered another $37,670 in cash behind a residence.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The plea is the result of an investigation by the Chautauqua County Sheriff’s Office, under the direction of Sheriff James Quattrone, the Jamestown Police Department, under the direction of Chief Timothy Jackson, the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division, and the New York State Police, under the direction of Major Eugene Staniszewski.
Sentencing is scheduled for May 31, 2023, at 10:00 a.m. before Judge Sinatra.
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Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Jan. 27 was:
Brandi Marie Hiatt, 43, of Billings, on charges of conspiracy to possess with intent to distribute controlled substances and possession with intent to distribute controlled substances. If convicted of the most serious crime, Hiatt faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Hiatt was released pending further proceedings. The Drug Enforcement Administration investigated the case. PACER case reference. 23-02.
Appearing on Jan 26 was:
Tyler Ryan Stonebraker, 27, of Billings, on charges of prohibited person in possession of ammunition. If convicted of the most serious crime, Stonebraker faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Stonebraker was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Yellowstone County Sheriff’s Office investigated the case. PACER case reference. 23-11.
Loy Matthew Bryant, 51, of Lame Deer, on charges of sexual abuse of a minor and abusive sexual contact of a minor. If convicted of the most serious crime, Bryant faces a maximum of 15 years in prison, a $250,000 fine and a mandatory minimum five years to life of supervised release. Bryant was detained pending further proceedings. The FBI investigated the case. PACER case reference. 22-145.
Glen Fredrick Reitler, Jr., 42, of Billings, on charges of prohibited person in possession of a firearm and ammunition. If convicted of the most serious crime, Reitler faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Reitler was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 23-10.
Appearing on Jan. 24 was:
Jaide Nicole Alexander, 28, of Billings, on charges of conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious crime, Alexander faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release on the drug crime and a mandatory minimum five years to life in prison, consecutive to any other sentence, a $250,000 fine and five years of supervised release on the firearms crime. Alexander was detained pending further proceedings. The Drug Enforcement Administration investigated the case. PACER case reference. 23-20.
Brandi Alexandria Davitt, 33, a transient, on charges of conspiracy to possess with intent to distribute controlled substances and possession with intent to distribute controlled substances. If convicted of the most serious crime, Davitt faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Davitt was detained pending further proceedings. The Drug Enforcement Administration investigated the case. PACER case reference. 22-130.
Appearing on Jan. 23 was:
Joshua Leon Hiestand, 41, a transient, on charges of stalking and harassing telephone calls. If convicted of the most serious crime, Hiestand faces a maximum of five years in prison, a $250,000 fine and three years of supervised release. Hiestand was detained pending further proceedings. The FBI investigated the case. PACER case reference. 22-122.
Drew Parker Seymour, 24, of Banning, California, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Seymour faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Seymour was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Billings Police Department and the Eastern Montana High Intensity Drug Trafficking Area Task Force investigated the case. PACER case reference. 22-138.
Charles Burchell, 48, of Billings, on charges of possession with intent to distribute meth, distribution of meth, prohibited person in possession of a firearm and dealing firearms without a license. If convicted of the most serious crime, Burchell faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Burchell was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Montana Division of Criminal Investigation investigated the case. PACER case reference. 23-03.
Carson Troy Tillet, 29, of Livingston, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Tillet faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Tillet was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Park County Sheriff’s Office investigated the case. PACER case reference. 23-12.
Lianna Rose Collins, 41, of Livingston, on charges of conspiracy to possess with intent to distribute controlled substances and possession with intent to distribute controlled substances. If convicted of the most serious crime, Collins faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Collins was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Park County Sheriff’s Office investigated the case. PACER case reference. 23-04.
Kyle Richard Lewellen, 41, of Joliet, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Lewellen faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Lewellen was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Park County Sheriff’s Office investigated the case. PACER case reference 23-07.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Jan. 26 was:
Rembrandt Carlos Kemp, 32, of Fridley, Minnesota, on charges of conspiracy to possess with intent to distribute controlled substances and possession with intent to distribute controlled substances. If convicted of the most serious crime, Kemp faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Kemp was detained pending further proceedings. The Havre Police Department and Tri-Agency Task Force investigated the case. PACER case reference 22-86.
Porter James Hudshon, 23, of Tacoma, Washington, on charges of conspiracy to possess with intent to distribute fentanyl and distribution of fentanyl. If convicted of the most serious crime, Hudshon faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Hudshon was detained pending further proceedings. The FBI, U.S. Postal Service, Roosevelt County Sheriff’s Office, Fort Peck Tribes Law and Justice Department and Bremerton, Washington, Police Department investigated the case. PACER case reference 22-94.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Havelock Man Sentenced to 7 ½ Years in Prison for Receiving Child PornographyRead the Press Release
WILMINGTON, N.C. – William McCoy was sentenced today to 90 months in prison for receipt of child pornography. McCoy, 26, pled guilty to the charge on July 27, 2022.
According to court documents and other information presented in court, on February 24, 2021, Investigators at Marine Corps Air Station Cherry Point received a CyberTip from the National Center for Missing and Exploited Children (NCMEC) regarding activity on Facebook Messenger. The user had been identified as William McCoy, who was then a lance corporal stationed at Cherry Point.
The CyberTip showed that in chats dated January 31, 2021, McCoy and 16-year-old female Victim-1 had discussed previously having sexual intercourse. McCoy referred to a video recording of the encounter and had instructed Victim-1 to watch a video.
On March 2, 2021, an NCIS agent obtained command authorization to search McCoy and his living space, including digital devices. Agents met McCoy at his commanding officer’s office and seized from McCoy’s person a Samsung Galaxy Note phone.
McCoy waived his rights and agreed to a video recorded interview. He stated he had dated Victim-1, who he claimed was 22 years old. He stated that they had been dating for six months and were sexually active. McCoy gave permission for his phone to be searched, and agents saw multiple sexually explicit photos of Victim-1, as well as a video in which McCoy and Victim-1 are masturbating together over the video chat application Google Duo. Agents found a phone number for Victim-1, who they contacted and confirmed was currently 17 years old. McCoy admitted that he lied about Victim-1’s age, that he found out her true age in November 2020, and that they had sexual intercourse in December 2020.
A digital forensic examiner reviewed McCoy’s Samsung Galaxy Note cellphone and found over 50 image files and 150 video files that appeared to depict Victim-1 in child exploitative poses. Of these, 11 images and 47 videos were confirmed to be child pornography based on content through which the subject could be identified as Victim-1 and therefore a minor. It is believed that all photos were of Victim-1; no other minors were identified within the photos.
Subsequent investigation determined that McCoy had solicited, and in some cases received, sexual photos from at least three other minor females who were connected to Victim-1. At the same time, McCoy sent photos and videos depicting his penis to minor females, and some were able to describe his military quarters to investigators.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. Naval Criminal Investigative Service (NCIS) investigated the case, which Assistant U.S. Attorney Jake D. Pugh prosecuted.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, 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.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:22-cr-00001-M.
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HSI San Juan Arrests 3 Men on Child Exploitation ChargesRead the Press Release
SAN JUAN, Puerto Rico – In three separate cases, Homeland Security Investigations (HSI) special agents with the support of the Puerto Rico Department of Justice and the Puerto Rico Police Bureau arrested three men charged with production of child pornography, transportation of minors to engage in sexual criminal acts, coercion and enticement of minors and possession of child pornography, respectively.
According to court documents, from on or about July 2021 through on or about May 9, 2022, Fredis Cruz-Bonilla, 41, of San Juan, did knowingly persuade, induce, and coerce a female minor who had not attained the age of 18 years to engage in sexual activity for which a defendant could be charged with a criminal offense under the laws of the Unites States of America and Puerto Rico. Cruz-Bonilla was also charged with possession of child pornography.
In an unrelated case, HSI special agents arrested Luis E. Ojeda-Peña, 37, of San Juan. According to the indictment, from on or about July 9, 2022, through on or about August 2, 2022, Ojeda-Peña did knowingly persuade, induce, entice, and coerce a nine-year-old minor to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct.
In another case, HSI special agents arrested religious leader José Bermudez-Soler, 42, of Adjuntas. According to the indictment, from in or about June 2021 to in or about January 2022, the defendant persuaded, induced, enticed, and coerced a 14-year-old female minor to engage in sexual activity for which Defendant could be charged with a criminal offense. The indictment indicates that in July 2021, the defendant transported the female minor with the intent that the minor engage in sexual activity. The indictment also charges Bermudez-Soler with attempted production of child pornography.
Assistant United States Attorney Daynelle Álvarez, from the Child Exploitation and Immigration Unit, is prosecuting these cases.
“The sexual abuse of children is intolerable in civilized society, and victimizes the most innocent and vulnerable members of our community,” said W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. “We are committed to bringing the defendants in these cases to justice and protecting every child. I would like to thank the agents and state and local partners who are relentless in their pursuit of child predators.”
“HSI San Juan’s priority is to protect our children from sexual predators,” said Acting Special Agent in Charge Rebecca C. González Ramos “We will continue working with our federal, state, and local partners to identify, arrest and prosecute those who in the cruelest manner steal the innocence of our children.”
HSI is the principal investigative arm of DHS and a vital U.S. asset in combatting transnational crimes and threats. One of HSI’s top priorities is to protect the public from crimes of victimization, and HSI’s child exploitation investigations program is a central component of this mission. HSI is recognized as a global leader in this investigative discipline, and is committed to utilizing its vast authorities, international footprint and strong government and non-government partnerships to identify and rescue child victims, identify and apprehend offenders, prevent transnational child sexual abuse and help make the internet a safer place for children.
For more information about HSI’s efforts to protect children from online sexual abuse, visit https://www.ice.gov/topics/iGuardians.
If convicted, defendant Cruz-Bonilla faces a mandatory minimum 10 years to life in prison; Ojeda-Peña faces a mandatory minimum 15 years and a maximum penalty of 30 years in prison; and Bermudez-Soler faces a mandatory minimum 10 years to life in prison. Defendants convicted of these crimes also face, after serving their term of imprisonment, an additional mandatory supervised release term of 5 years up to life and would be required to register in the Sexual Offender Registry. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Department of Homeland Security Investigations is investigating the cases.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Geneva Man Sentenced to 15 Years in Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Steven Russell announced that Kurt D. Heckenliable, 51, of Geneva, Nebraska, was sentenced today in federal court in Lincoln, Nebraska. United States District Judge John M. Gerrard sentenced Heckenliable to 180 months in prison for possession with intent to distribute 500 grams or more of methamphetamine mixture and 50 grams or more actual methamphetamine. Heckenliable faced a 15-year mandatory minimum sentence because of a prior conviction for delivery/possession with intent to deliver a controlled substance in York County District Court. After serving his sentence, Heckenliable will be placed on supervised release for 10 years. There is no parole in the federal system.
On September 22, 2021, state troopers responded to a single motorcycle accident near Mead, Nebraska. At the scene, Heckenliable was identified as the driver of the motorcycle, and he received medical attention at the roadside and later at a hospital. During the accident response, law enforcement noticed suspected methamphetamine on the ground near the motorcycle. Troopers then searched the motorcycle and found more methamphetamine. In total, about four kilograms of lab confirmed methamphetamine were seized from Heckenliable’s motorcycle. Some of that methamphetamine was tested for purity and determined to be at least 96% pure.
This case was investigated by the Nebraska State Patrol and the Saunders County Sheriff’s Office.
Four men sentenced for hate crime and false statement charges after racially motivated assault in Lynnwood, WashingtonRead the Press Release
Seattle – Four men who assaulted a Black man because of the man’s actual and perceived race at a bar in Lynnwood, Washington, were sentenced today in the U.S. District Court for the Western District of Washington.
Jason DeSimas, 45, Jason Stanley, 46, Randy Smith, 42, and Daniel Dorson, 27, had each pleaded guilty to one crime of committing a hate crime, as well as one count of making false statements to investigators about their role in the assault.
Speaking at the sentencing hearings, U.S. District Judge Richard A. Jones said, “Protecting the public is the primary concern of the court… Your crew was nothing more than a modern day, unhooded, KKK taking out hate on a Black man…. What you did demonstrated hate and ignorance.”
DeSimas and Stanley were each sentenced to four years in prison; Randy Smith was sentenced to 42 months in prison; and Dorson was sentenced to 28 months in prison.
“The defendants subjected a Black man to a brutal and racially-motivated assault,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Racially-motivated hate crimes terrorize entire communities, and they have no place in our society. The Department of Justice will continue to investigate and prosecute individuals who commit these abhorrent crimes.”
“The myth of white supremacy is alive and well, and can foment dangerous behavior and violence. These particular defendants are deeply steeped in racial hatred, expressed through their Nazi tattoos, white supremacist symbols on their clothing, and their use of racist slurs. They came to our area to honor a man who died leading a racist and violent gang, and thought they could act on their beliefs with impunity,” said U.S. Attorney Nick Brown. “But the victims and witnesses of their brutal assault have proved they are far stronger than these four. And today our justice system is holding them accountable for the damage they did not only to the people they assaulted, but to the community that recoils when presented with their despicable hatred.”
“Imagine being attacked by four men purely because of the color of your skin.” said Special Agent in Charge Richard A. Collodi of the FBI Seattle Field Office. “The victim in this case does not have to imagine. Tragically, he lived it. With today’s sentences, my hope is the victim feels some sense of justice has been served. However, until all citizens are safe from threats and violence based on their race, ethnicity, gender, or beliefs, the FBI’s work protecting victims of hate will continue.”
In their respective plea agreements, DeSimas, Stanley, Smith and Dorson each admitted that, on Dec. 8, 2018, they entered a bar in Lynnwood, with a large group that included fellow members of Crew 38 and the Hammerskins. Crew 38 is a support group for the Hammerskins, which is a white supremacist organization. The majority of the men in the group were similarly dressed in dark jeans or pants, black boots, black “bomber” jackets, and dark-colored t-shirts and had crew-cut hairstyles. Some wore jackets with either Crew 38 patches or other patches aligned with white supremacist beliefs. In addition, many wore shirts with phrases, numbers or logos that expressed white supremacist beliefs and/or memberships, including Crew 38. Many in the group also had visible tattoos, including swastika tattoos, that expressed their views on white race superiority. Members of the group, including defendants Stanley and Smith, repeatedly gave the Nazi salute as they danced.
While in the bar, all four defendants assaulted T.S, a Black man who was serving as the disc jockey at the bar, when T.S. attempted to move defendant Stanley away from his music equipment. All four defendants punched and kicked T.S., even after he fell to the floor, while some in the group called T.S. racial slurs. Two bystanders attempted to intervene to help T.S. and stop the assault. The defendants and other assaulted both bystanders, causing them to sustain injuries. As a result of the defendants’ actions, T.S. suffered serious physical injuries, including extreme pain, loss of consciousness, bleeding and swelling in his eye and bruising on his back, chest and legs.
In their plea agreements four defendants each admitted that they were members of Crew 38 and/or prospective members of the Hammerskins, and that they had traveled to the Lynnwood area with others to attend events related to “Martyr’s Day,” an annual gathering honoring a white supremacist who died in a shootout with federal agents on Whidbey Island in the 1980s.
In their plea agreements, defendants DeSimas and Stanley each admitted that they knew that the Hammerskins had used a tactic known as “mutual combat” against members of groups whose beliefs they opposed. Members believed that, using this tactic, they could go to bars frequented by groups whose beliefs they opposed and have one or more members initiate a fight. When the fight began, other members of the group could jump in and assault their perceived antagonists, and later claim a defense of “mutual combat” as a way to avoid accountability.
In addition to the hate crime charge, each defendant pleaded guilty to one count of making false statements to federal agents who were investigating the assault. Specifically, Stanley falsely claimed to the agents that he was not even present in the State of Washington during the weekend of the assault. Stanley made this false claim in order to cover up his participation in the assault of T.S.
DeSimas falsely claimed to the agents that neither he nor anyone else called T.S. a racial slur during the assault, while Smith falsely claimed to the agents that he did not remember anyone calling T.S. a racial slur during the assault. Dorson falsely told agents that he had not traveled to Washington State during the weekend of the assault to attend a white supremacist’s “Martyr’s Day” observance and that he had not owned a jacket associated with a white supremacy hate group prior to the weekend of Dec. 8, 2018. In their respective plea agreements, these defendants each admitted that they made these false statements in order to cover up the motive for the assault, which was the bias that he and others had against T.S.’s race.
The four defendants were charged in an indictment that was unsealed on Dec. 18, 2020.
Defendant Smith was charged in the District of Oregon in an unrelated case for illegal possession of a firearm. That charge was resolved today with a concurrent 16-month sentence.
Assistant Attorney General Clarke, and U.S. Attorney Brown, and FBI Special Agent in Charge Richard A. Collodi made the announcement.
The FBI investigated the case, with the support of the Snohomish County Sheriff’s Office. The Smith firearms matter was investigated by the FBI Portland Field Office and the Eugene, Oregon, Police Department.
Trial Attorney Christine M. Siscaretti of the Civil Rights Division’s Criminal Section and Assistant United States Attorney Rebecca Cohen for the Western District of Washington are prosecuting the case. The Smith firearms matter was prosecuted by Assistant United States Attorney William McLaren for the District of Oregon.
Former Soldier Stationed at Fort Polk Sentenced to 20 Years in Federal Prison for Abusive Sexual Contact with a MinorRead the Press Release
ALEXANDRIA, La. - United States Attorney Brandon B. Brown announced that Gjamale Demonte Kaver, 37, has been sentenced by United States District Judge David C. Joseph on charges of abusive sexual contact with a minor under the age of 12. Kaver was sentenced to 240 months (20 years) in prison, followed by a lifetime of supervised release.
A federal grand jury in Lafayette returned an indictment in March 2022 charging Kaver with abusive sexual contact with a minor under the age of 12 and he pleaded guilty to the charge on August 18, 2022. According to evidence presented to the court, Kaver was enlisted in the United States Army and stationed at the Fort Polk Military Reservation. While stationed there in 2007, and continuing upon his return to Fort Polk in 2009, Kaver engaged in abusive sexual misconduct with the minor victim who was under the age of 12.
“The U.S. Attorney’s Office for the Western District of Louisiana has jurisdiction over federal crimes that occur at Fort Polk Military Reservation,” said U.S. Attorney Brandon B. Brown. “Abusive sexual conduct with children is an intolerable crime and we will continue to prosecute those who commit these crimes to the fullest extent that the law will allow.”
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Daniel J. McCoy and J. Luke Walker.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines 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.
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Former Louisville, Kentucky Department of Corrections Officer Sentenced to 36 Months in Prison for Violent Assault on Pretrial DetaineeRead the Press Release
WASHINGTON – Darrell Taylor, 32, a former officer with the Louisville Metro Department of Corrections, in Louisville, Kentucky, was sentenced to 36 months in federal prison for using unreasonable force against a detainee, thereby violating the detainee’s civil rights.
In October 2022, a jury heard evidence proving that the defendant, while working as a correctional officer, assaulted B.R., a pretrial detainee being detained in the Louisville Metro Department of Corrections. On December 15, 2020, Taylor was serving breakfast to detainees in the Louisville Metro Department of Corrections. During the breakfast service, B.R., a detainee with reported mental health issues, used insulting language in a conversation with Taylor, after which Taylor followed B.R. back to B.R.’s bunk, grabbed him, threw him to the ground, and punched him repeatedly in the face. After the fourth punch, B.R. went limp and lost consciousness. Taylor then lifted B.R. and slammed him face-first into the ground. B.R.’s jaw and cheekbone were broken during the assault.
“The defendant abused his authority as a law enforcement officer and betrayed the public’s trust when he violently assaulted a detainee in his custody,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Officials working inside jails and prisons who abuse inmates and detainees are not above the law, and we will continue to vigorously prosecute those who deprive people of their Constitutional rights.”
“The defendant’s violent assault in this case was a blatant disregard of the civil rights and physical well-being of a Metro Department of Corrections’ detainee,” said Michael A. Bennett, U.S. Attorney for the Western District of Kentucky. “This office will continue to thoroughly investigate and aggressively prosecute corrections officials who violate the civil rights of individuals through the use of unreasonable force.”
“Corrections officers are tasked with the difficult job of maintaining a safe and secure environment in our prison facilities. When one officer abuses the authority placed in them by violating the civil rights of an inmate, it undermines the trust placed in all law enforcement officers,” said Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office. “This sentence should be a reminder that the FBI takes all allegations of civil rights violations seriously and will vigorously investigate and seek prosecution for these abuses of power.”
The FBI Louisville Field Office investigated the case.
Assistant U.S. Attorney Amanda Gregory for the Western District of Kentucky and Trial Attorney Andrew Manns of the Civil Rights Division’s Criminal Section prosecuted the case.
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Former IRS Employee Found Guilty on All Counts in Scheme to Defraud IRS and Commit Identity TheftRead the Press Release
FRESNO, Calif. — After a three–day trial, a federal jury found Deena Vang Lee, 41, of Fresno, guilty yesterday of three counts of wire fraud, two counts of aggravated identity theft, five counts of preparing and presenting false and fraudulent returns, and three counts of making and subscribing a false and fraudulent tax return, U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at trial, from 2012 through 2016, Lee willfully prepared and filed tax returns for other individuals that contained materially false and fraudulent statements and underreported her taxable income on her personal tax returns. In her role as a tax preparer, Lee would put false information on the customer’s tax return without their knowledge or consent and submit the returns to the IRS. As part of this scheme, Lee obtained the identification of multiple individuals and falsely listed these individuals as child care providers on multiple customer’s tax returns without their knowledge or consent.
Lee also underreported her own income related to the payments she received for tax preparation services on her personal tax returns for tax years 2013, 2014, and 2015.
“The jury found that this defendant who operated a tax preparation business willfully prepared and filed tax returns for her clients that were false and underreported her own taxable income,” said U.S. Attorney Talbert. “Her scheme to use the tax system to generate larger refunds than deserved came to an end. The U.S. Attorney’s Office will continue to work with the Internal Revenue Service, Criminal Investigation (IRS-CI) and the Treasury Inspector General for Tax Administration (TIGTA) to use all lawful means to identify and prosecute unscrupulous tax returns preparers like the defendant.”
“Our absolute priority at the IRS is to serve the taxpayers in a manner that fosters confidence in the tax system and compliance with the law,” said Darren Lian, Special Agent in Charge with IRS Criminal Investigation’s Oakland Field Office. “We hold our employees to an even higher standard of expectations and compliance. Unfortunately, Deena Lee betrayed her duty and the trust the American public gave her and suffered the appropriate consequences. We are 100% committed to our tax administration and enforcement mission and will pursue anyone who break the law.”
“Taxpayers put trust in tax preparers to prepare their tax returns in accordance with the law. It is unacceptable for tax preparers to break this confidence by submitting fraudulent returns in their clients’ names,” said J. Russell George, the Treasury Inspector General for Tax Administration. “The Treasury Inspector General for Tax Administration is committed to bringing to justice tax preparers who betray their clients’ trust for their personal gain.”
This case is the product of an investigation by the IRS-CI and TIGTA. Assistant U.S. Attorneys Alex Dempsey and Henry Carbajal are prosecuting the case.
Lee is scheduled to be sentenced by U.S. District Judge Ana de Alba on May 8, 2023. Lee faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each of the wire fraud counts; three years in prison and a $250,0000 fine for each of the preparing and presenting false returns counts; three years in prison and a $250,000 fine for each of the making and subscribing a false tax return counts; and a two-year consecutive mandatory minimum sentence for the aggravate identity theft counts. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Fugitive Wanted in Oregon for Real Estate Scam Pleads GuiltyRead the Press Release
SAN DIEGO—On January 26, 2023, a California man who evaded federal authorities for more than two decades after being convicted at trial and who was wanted in District of Oregon for perpetrating a real estate scam while a fugitive pleaded guilty in San Diego.
Robin James McPherson, a former resident of San Diego, pleaded guilty to failing to appear, willfully attempting to evade income taxes, and wire fraud, resolving three separate pending criminal cases.
According to court documents, in December 2000, McPherson and two co-conspirators were found guilty at trial in the Southern District of California of conspiring to defraud the IRS and tax evasion. Prior to being sentenced in March 2001, McPherson fled the U.S.
In early August 2019, special agents from FBI’s office in Eugene, Oregon began investigating McPherson after several individuals reported being the victims of a Costa Rican real estate fraud scheme with ties to the Eugene area. McPherson used a variety of marketing techniques, including cold calls, promotional websites, and Facebook advertisements, to find potential investors for an alleged Costa Rican real estate development opportunity called the Carara Parque Resort Corporation. After victims showed interest in the faux investment opportunity, McPherson would conduct sales calls, from Costa Rica, to explain the project.
McPherson directed victims to wire investment funds to a bank account in Oregon and then had the funds transferred to a bank account he controlled in Costa Rica. Between December 2015 and August 2019, approximately $1.2 million dollars were transmitted to the Oregon bank account. McPherson used many different excuses to explain to his investors why no resort villas had been constructed. He did not disclose to his investors that their contracts had not been honored and no villas were slated for construction. McPherson used his investors’ funds to pay for various personal expenses including his own mortgage.
On October 22, 2020, McPherson was charged by criminal complaint in the District of Oregon with wire fraud and money laundering. In May 2022, he was apprehended in Costa Rica and returned to San Diego.
Today, McPherson waived indictment and venue and pleaded guilty to wire fraud, a charge pending in the District of Oregon. He also pleaded guilty to failing to appear and willfully attempting to evade income taxes, charges pending in the Southern District of California. On April 28, 2023, McPherson will be sentenced in San Diego on all three charges of conviction.
Wire fraud is punishable by up to 20 years in federal prison. Tax evasion and failure to appear are each punishable by up to five years in federal prison. All three charges also carry maximum fines of up to $250,000 or twice a defendant’s gross gains or losses and three years’ supervised release.
This case was investigated by the FBI and IRS-Criminal Investigation. It was prosecuted in the District of Oregon by Assistant U.S. Attorney Gavin W. Bruce.
Former Everett Man Sentenced to Prison for Wire Fraud, Social Security Misuse and Identity TheftRead the Press Release
BOSTON – A former Everett man was sentenced yesterday in connection with multiple schemes to fraudulently obtain an apartment as well as pandemic-related relief funds from the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program made available under the Coronavirus Aid, Relief, and Economic Security Act.
Tedje Menard, 28, was sentenced by U.S. District Court Judge Allison D. Burroughs to 28 months in prison and three years of supervised release. In September 2022, Menard pleaded guilty to two counts of wire fraud, one count of false representation of a Social Security number and one count of aggravated identity theft.
In or around November 2020, Menard applied to rent an apartment in East Boston using the name and identity of another person. As part of the application and screening process, Menard falsely claimed to be the victim by providing the company overseeing the property with, among other things, the victim’s name, social security number, date of birth and a copy of a purported North Carolina driver’s license containing the victim’s information but depicting a photograph of Menard. Menard also submitted an EIDL application in the amount of $40,000 using the victim’s name and personal identifiable information in June 2021.
Additionally, in April 2021, Menard used his own name to apply for a PPP loan in the amount of approximately $20,833. In the loan application, Menard falsely represented his business’ total gross income in 2019 and his criminal history.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Valuable assistance was provided by the Department of Labor and the U.S. Secret Service, Boston Field Office. Assistant U.S. Attorneys J. Mackenzie Duane and Meghan C. Cleary of Rollins’ Major Crimes Unit 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.
Former Employee of Beaver County Health Care Facility Sentenced to 17 Years in Prison Following His Conviction on Federal Hate Crime Charges Related to Assaults Against Disabled ResidentsRead the Press Release
PITTSBURGH, PA – A former resident of Beaver County, Pennsylvania, was sentenced in federal court yesterday for committing federal hate crimes and related offenses involving numerous severely disabled victims, United States Attorney Cindy K. Chung announced today.
United States District Judge J. Nicholas Ranjan sentenced Zachary Dinell, 29, formerly of Freedom, Pennsylvania, to 204 months’ imprisonment, followed by three years of supervised release. Dinell previously pleaded guilty to one count of conspiracy, ten counts of violating the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act, and one count of concealing material facts in a health care matter.
“Zachary Dinell committed egregious assaults against some of our community’s most vulnerable members,” said U.S. Attorney Chung. “His victims could not speak up and were forced to suffer in silence. Hopefully, the significant sentence imposed will bring some measure of closure to the victims’ families and serve as a reminder that this Office will continue to seek justice for victims of hate crimes.”
“No one should have to experience the torture and pain the victims in this case went through,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “Mr. Dinell was trusted to care for them; Instead, he targeted them because of their disability. Even worse, the victims were not able to sound the alarm to anyone who could help. This sentencing sends a clear message that individuals like Mr. Dinell will be held accountable for their actions. Protecting the rights of everyone in our communities is among the highest priorities of the FBI.”
According to admissions made during Dinell’s plea hearing, he and co-defendant Tyler Smith were employees of an in-patient health care facility located in New Brighton, Pennsylvania. Residents of the facility suffered from a range of severe physical, intellectual, and emotional disabilities, and required assistance with all activities of daily life, including bathing, using the bathroom, oral hygiene, feeding, and dressing. As members of the facility’s Direct Care Staff, Dinell admitted that he and Smith were responsible for providing this daily assistance to residents.
From approximately June 2016 to September 2017, Dinell further admitted that he and Smith engaged in a conspiracy to commit hate crimes against residents of the facility because of the residents’ actual or perceived disabilities. Dinell and Smith carried out assaults in a variety of ways, including by punching and kicking residents, jumping on residents, rubbing hand sanitizer in their eyes, spraying liquid irritants, including mouthwash, in their eyes and mouths, and in one instance removing a resident’s compression stocking in a manner intended to inflict pain. Several of these assaults were recorded on Dinell’s cell phone. As part of the conspiracy, Dinell acknowledged that he and Smith exchanged text messages in which they expressed their animus toward the disabled residents, shared pictures and videos of residents, described their assaults, and encouraged each other’s continued abuse of residents.
Dinell further admitted that he and Smith were able to avoid detection by, among other things, exploiting their one-on-one access to residents of the facility and the fact that the victims were non-verbal and could not report the defendant’s alleged abuse. Due to their physical disabilities, the residents also were not able to defend themselves against the alleged assaults.
As part of his sentence, Dinell is prohibited from seeking employment following his release from prison at any facility that provides care for juveniles, the disabled, or both.
The case against Smith remains pending, and he is presumed innocent unless and until proven guilty.
Assistant United States Attorney Eric G. Olshan is prosecuting this case on behalf of the government. The Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case.
Five Men Guilty in Conspiracy to Distribute Child Sexual Abuse MaterialRead the Press Release
MIAMI – Anthony Wayne Santiago, 28, of Novi, Mich.; Jacob Dominic VanDyke, 25, of Muskegon, Mich.; Johnathan Scott Fleak, 32, of Pryor, Okla.; Aaron Ray Iuliano, 27, of Ravenna, Ohio; and Michael Paul Gianfrancesco, 39, of Livingston, Tenn., all have pled guilty to conspiracy to distribute child sexual abuse material and distribution of child sexual abuse material (CSAM) of children under the age of 13 years.
According to Court records, from September to October 2021, the five defendants entered and participated in a private chat room within a social networking application. Each had to distribute CSAM of children under the age of 13 to enter the chat room. These defendants all distributed and solicited CSAM and discussed the sexual abuse of children among more than 50 other individuals. The children in the images and videos were as young as 4-years-old.
Johnathan Scott Fleak, who also was distributing CSAM through another online message board, has been sentenced to 15 years in prison. Anthony Wayne Santiago, a registered sex offender who was on a GPS monitor at the time of his arrest, has been sentenced to 30 years in prison. Aaron Ray Iuliano is to be sentenced February 16, 2023. Michael Paul Gianfrancesco and Jacob Dominic VanDyke will be sentenced March 31, 2023.
U.S. Attorney for the Southern District of Florida Markenzy Lapointe, acting Special Agent in Charge Michael E. Buckley, Homeland Security Investigations (HSI), Miami Field Office, and Palm Beach County Sheriff Ric Bradshaw made the announcement.
HSI, West Palm Beach Office, and Palm Beach County Sheriff’s Office investigated the case as part of a joint effort of the South Florida Internet Crimes Against Children Task Force. Assistant U.S. Attorneys Gregory Schiller and Brian Ralston are prosecuting it.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about the Project Safe Childhood initiative and for information regarding Internet safety, please visit www.justice.gov/psc.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 22-cr-80127.
Fentanyl Courier Charged After Agent Seizes 6,000 PillsRead the Press Release
A fentanyl dealer who sold roughly 6,000 pills laced with fentanyl to an undercover agent has been federally charged, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Richard Daniel Gomez, 22, was charged on Thursday via criminal complaint with possession with intent to distribute fentanyl. He made his initial appearance before Magistrate Judge Renee Harris Toliver on Friday.
According to the complaint, an undercover DPS agent negotiated with a drug trafficker to buy 6,000 “blues” for $15,000 cash. (“Blues,” which often resemble oxycodone, are often manufactured illicitly and laced with fentanyl, an opioid 75 - 150 times more potent than oxy.)
The trafficker directed the agent to meet with his courier in a parking lot in Dallas’ Turtle Creek neighborhood. When the agent arrived, the undercover met with Mr. Gomez inside a pickup truck. Mr. Gomez allegedly handed over a vacuum-sealed bag containing a large number of blue pills and was promptly arrested.
A criminal complaint is merely an allegation of wrongdoing, not evidence. All defendants are presumed innocent unless and until proven guilty in a court of law.
If convicted, Mr. Gomez faces 10 years to life in federal prison.
The Texas Department of Public Safety and the Dallas Police Department are conducting the investigation with the Drug Enforcement Administration’s Dallas Field Office. Assistant U.S. Attorneys Rick Calvert and George Leal are prosecuting the case.
Federal, State, and Local Law Enforcement Statement on the Death of Tyre NicholsRead the Press Release
SACRAMENTO, Calif. — Federal, state, and local law enforcement partners offer their sincere condolences and support to the family of Tyre Nichols, a native of Sacramento, after his death earlier this month in Memphis, Tennessee.
Making the announcement are U.S. Attorney Phillip A. Talbert, FBI Special Agent in Charge Sean Ragan, Sacramento County District Attorney Thien Ho, Sacramento County Sheriff Jim Cooper, and Sacramento Chief of Police Katherine Lester.
Local authorities in Tennessee announced that charges have been brought by the Shelby County District Attorney against the five former Memphis police officers. The United States Attorney for that district has also opened a federal civil rights investigation into Mr. Nichols’ death.
Peaceful protest is a time-honored tradition in our country, and we in law enforcement strive to protect these important First Amendment rights and want people to express their right to be heard in a peaceful and nonviolent way. Federal, state, and local law enforcement will continue to work together to protect the community’s First Amendment rights.
“As part of the community, we are deeply saddened at and share the concerns about the death of Tyre Nichols,” said U.S. Attorney Talbert. “Together with our law enforcement partners, we have reached out to our community leaders to address the real and legitimate concerns about what happened to Mr. Nichols and to identify positive steps we can take going forward. Please join me in a call for unity and peace as we work together during this difficult time.”
“The FBI Sacramento Field Office offers our sincere condolences to former Sacramento resident Tyre Nichols’ family and friends. Our team has reached out to our community partners, many of whom are deeply affected by Nichols’ death,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “The FBI is deeply committed to ensuring the rights of all Americans are protected, and we continue to work with law enforcement and community partners to ensure any threat to public safety or the exercise of Constitutional rights is promptly investigated.”
“I am truly saddened and troubled by the tragic death of Tyre Nichols,” said District Attorney Thien Ho. “As a former resident of Sacramento, Mr. Nichols’ death has hit home. Understandably, there is deep pain and anger within our community. We have learned that violence and destruction only harms and divides us. With charges filed in the death of Mr. Nichols, I ask that our community respect the Shelby County criminal justice process. Be assured, I am working together with all of our diverse communities to ensure our local justice system seeks the truth and renders justice for everyone, because justice and public safety are a matter of fairness and equality.”
Sheriff Jim Cooper said, “As we await further updates from Tennessee, we ask everyone that chooses to exercise their lawful right to protest, to express their feelings peacefully. We will work together with our Law Enforcement partners to protect everyone’s First Amendment rights, while keeping the peace and protecting our community.”
Sacramento Police Chief Katherine Lester said, “I share the same concerns as those echoed throughout our nation and our law enforcement community. The right to protest peacefully is sacred and will be protected. I know we can have tough conversations while finding a path forward together.”
Federal Indictment Accuses Suburban Chicago Man of Producing Child PornographyRead the Press Release
CHICAGO — A suburban Chicago man has been arrested on federal child pornography charges for allegedly enticing a minor to produce sexually explicit images.
TERCALO E. THOMAS, 32, of Park Forest, Ill., is charged with two counts of production of child pornography and one count of possession of an electronic device containing child pornography, according to an indictment returned in U.S. District Court in Chicago. Thomas is currently detained in law enforcement custody. He pleaded not guilty to the charges during his arraignment today before U.S. Magistrate Judge Gabriel A. Fuentes.
According to the indictment, Thomas produced the child pornography after inducing and enticing the minor to engage in sexually explicit conduct. He also possessed a cell phone that contained images of a prepubescent minor who had not attained 12 years of age, the indictment states.
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. Attorney Elly Peirson.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each production count is punishable by a minimum sentence of 15 years in federal prison and a maximum of 30 years. The possession count carries a maximum sentence of ten years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by logging on to www.missingkids.com or by calling 1-800-843-5678. The service is available 24 hours a day, seven days a week.
Federal Grand Jury Indicts Man for Attempted CarjackingRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced today that KYREN WASHINGTON, age 19, a resident of Orleans Parish, was charged on January 26, 2023 in a one-count indictment for an attempted carjacking that occurred on October 20, 2022.
The indictment charged WASHINGTON with attempted carjacking in violation of Title 18, United States Code, Section 2199(1). If convicted, WASHINGTON faces a sentence of up to 15 years imprisonment, a fine of up to $250,000.00, up to 3 years of supervised release and a mandatory special assessment fee of $100.00.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department. The case is being prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime Unit of the U.S. Attorney's Office.
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Federal Court Permanently Enjoins Tax Return Preparer in FloridaRead the Press Release
The U.S. District Court for the Southern District of Florida has permanently enjoined a Miami-based tax return preparer from preparing returns for others and from owning, managing, or working at any tax return preparation business in the future.
The court entered judgment against Arnold Zio after he failed to respond to the government’s suit. The terms of the order require that Zio, individually and doing business as Platinum Citizens Financial, LLC and FTP Tax Services, send notices of the injunction to each person for whom he prepared federal tax returns after January 1, 2016, and post the injunction in places where he conducts business, including social media accounts and websites. The order also provides that the United States may monitor Zio’s compliance with the injunction.
The civil complaint filed against Zio alleged that he prepared tax returns claiming fabricated business income and expenses, as well as claiming various false tax deductions, including charitable contributions. It also alleged that Zio, without authorization, diverted customer refunds into his own bank account and failed to return COVID-19 stimulus funds that were improperly deposited into his account. According to the civil complaint, Zio claimed over $850,000 in falsified or inflated deductions on his customers’ tax returns, claimed at least $545,000 in falsified or inflated business losses, and diverted at least $188,000 from his customers’ refunds into his own bank account.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers 10 tips to avoid tax season fraud and ways to safeguard their personal information.
In the past decade, the Department of Justice Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Duquesne Man Pleads Guilty to Escaping from Reentry CenterRead the Press Release
PITTSBURGH - A former resident of Duquesne, PA, pleaded guilty in federal court to a charge of escape from custody, United States Attorney Cindy K. Chung announced today.
Keenan Williams, age 25, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that on Sept. 26, 2022, without authorization, Williams knowingly left the Renewal Incorporated Residential Reentry Center, where he was serving a federal sentence pursuant to a conviction for conspiracy to distribute heroin. On Oct. 4, 2022, Williams was arrested by the Monroeville Police Department. At no time between Sept. 26 and Oct. 4, 2022, did Williams return to Renewal Inc. to continue serving his sentence.
Judge Cercone scheduled sentencing for May 25, 2023, at 11:00 a.m. The law provides for a total sentence of not more than 5 years in prison, a fine of up to $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, Williams remains detained.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
The United States Marshals Service conducted the investigation that led to the prosecution of Williams.
Dubuque Fentanyl Dealer Sentenced to Federal PrisonRead the Press Release
A woman who sold fentanyl to drug users in Dubuque was sentenced today to 28 months in federal prison. Fallon Christina Murphy, age 25, from Dubuque, Iowa, received the prison sentence after a November 30, 2022 guilty plea to one count of conspiracy to distribute controlled substances.
Evidence at prior hearings established that between March and June 2022, Murphy supplied heroin users in the Dubuque area with fentanyl. Murphy and Jose Miguel Soto-Guzman, also charged in the case, regularly traveled to La Crosse, Wisconsin, to purchase fentanyl from Soto-Guzman’s source. Murphy and Soto‑Guzman then sold the fentanyl around Dubuque. Between March and June 2022, investigators conducted five controlled purchases from Soto‑Guzman and Murphy. The drugs purchased contained fentanyl, but some of the fentanyl was mixed with heroin and some with methamphetamine. After Soto‑Guzman’s arrest, Murphy continued to obtain fentanyl from the La Crosse source for distribution in Dubuque. In late July 2022, Murphy traveled to La Crosse to purchase drugs, and upon her return to Dubuque, officers stopped the vehicle in which she was riding. When the police stopped her vehicle, Murphy concealed the drugs inside her body to avoid detection. Officers later recovered the drugs, which were determined to be nearly 10 grams of fentanyl.
Murphy was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. She was sentenced to 28 months’ imprisonment. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Murphy is being held in the United States Marshal’s custody until she can be transported to a federal prison.
Soto-Guzman has not yet been sentenced. He faces a mandatory minimum sentence of 1 year in prison and a possible maximum sentence of 60 years’ imprisonment, a $4,000,000 fine, and a term of supervised release of at least six years and up to life following any imprisonment.
The case was prosecuted by Special Assistant United States Attorney Nicole L. Nagin and Assistant United States Attorney Dan Chatham and was investigated by the Dubuque Drug Task Force as part of the Northern Iowa Heroin Initiative.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-1022.
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DeWitt Man Pleads Guilty to Sending Interstate ThreatsRead the Press Release
SYRACUSE, NEW YORK – Marcus Fuller, age 38, of the Town of DeWitt, New York, pleaded guilty yesterday to transmitting an interstate threat to injure another person. United States Attorney Carla B. Freedman, Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and Chase L. Bilodeau, Chief of the Town of DeWitt Police Department, made the announcement.
As part of his guilty plea, Fuller admitted that in April 2022, he sent dozens of communications via Instagram directed to a musical performing artist, using multiple different accounts that he created for that purpose. The communications contained threats to harm the victim, up to and including death. Fuller further admitted that in one of those Instagram communications, he sent the victim a photograph of a firearm and ammunition. Fuller admitted that he possessed an identical firearm (a Ruger, .338 caliber bolt-action rifle) at his residence in DeWitt, along with 4 boxes of ammunition.
At sentencing, Fuller faces up to 5 years in prison, a maximum fine of $250,000, and a term of post-imprisonment 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), the Town of DeWitt Police Department, and the New York State Police are investigating the case. Assistant U.S. Attorney Matthew J. McCrobie is prosecuting the case.
David J. Miller and Minnesota Independent Cooperative, Inc., Convicted in Multi-Million-Dollar Prescription Drug Diversion SchemeRead the Press Release
SAN FRANCISCO – A federal jury convicted David Jess Miller and his company, Minnesota Independent Cooperative (“MIC”), of a wide array of charges relating to the unlicensed and fraudulent distribution of prescription drugs, announced United States Attorney Stephanie M. Hinds; Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp; Internal Revenue Service, Criminal Investigation (IRS-CI), Special Agent in Charge of the Oakland Field Office Darren Lian; U.S. Postal Inspection Service (USPIS) Pittsburgh Division Inspector in Charge Lesley Allison; and U.S. Food and Drug Administration Office of Criminal Investigations (FDA-OCI) Special Agent in Charge of the Metro Washington Field Office George A. Scavdis. The verdicts were handed down after a two-week trial before the Hon. Charles R. Breyer, Senior U.S. District Judge.
“The health and safety of American patients are critical, and Americans are entitled to trust that the prescription drugs they take are safe,” said U.S. Attorney Hinds. “Those who undermine the safety of the prescription drug supply chain for their own gain by laundering diverted drugs put those patients at risk, and they will be prosecuted.”
“FDA is responsible for oversight of the prescription drug supply chain; when criminals breach the security around that chain, patients can no longer be assured of the safety or effectiveness of the stolen drugs that are returned illegally to the legitimate supply pipeline,” said Special Agent in Charge Scavdis. “We will continue to pursue and bring to justice those who would put the public health at risk through their criminal actions.”
“When medical practitioners prescribe and patients receive medication, their focus should be on the effectiveness of the medication for the intended treatment and not the authenticity or legitimacy of the pills they get from pharmacies. The speedy guilty verdict shows the community’s intolerance of those who betray this basic trust in our healthcare system for greed and personal enrichment. IRS Criminal Investigation is committed to work with our law enforcement partners to dismantle and disrupt these criminal schemes and to instill trust and confidence in the system,” said Special Agent in Charge Lian. “I truly commend the case agents and the trial team who worked tirelessly on this case to bring justice to light.”
"The illegal conduct of David Miller was reprehensible," said FBI Special Agent In Charge Robert Tripp. "He and his co-conspirators undermined safeguards designed to protect the public, reintroduced diverted prescription drugs into the supply chain, and compromised patient safety for personal gain.”
The trial was the result of indictments filed in two separate districts—the Northern District of California and the Southern District of Ohio. The convictions included charges handed down in a second superseding indictment by a grand jury in the Northern District of California on February 11, 2016, and by a separate indictment handed down on May 6, 2015, in the Southern District of Ohio. Both indictments involved additional defendants and charges that were not presented at the trial.
The evidence at trial established that Miller, 58, of Santa Ana, Calif., was at the center of a vast racketeering enterprise responsible for the fraudulent distribution of hundreds of millions of dollars’ worth of diverted prescription drugs, including instances in which Miller and his co-conspirators distributed tampered medication that posed a health risk to consumers. The scheme targeted brand-name prescription drugs designed to treat HIV, hepatitis C, mental disorders, and various other serious conditions. Miller and MIC lied to their customers about the nature and sources of the prescription drugs being sold, falsely claiming that the drugs had been maintained in the safe, federally and state-regulated supply chain. The evidence at trial established that Miller and his company agreed with many others, including Mihran Stepanyan, 37, and Artur Stepanyan, 45, to conduct the affairs of their wide-ranging and long-lasting criminal enterprise. The evidence established that the enterprise, operating primarily out of Southern California and Minnesota, was responsible for distributing diverted prescription drugs to unsuspecting pharmacies throughout the county. In finding Miller guilty, the jury concluded that he played a role in promoting the racketeering conspiracy. For example, as the owner and operator of MIC between 2007 and 2015, Miller bought approximately $157 million of diverted prescription drugs from codefendants Mihran Stepanyan and Artur Stepanayan. Miller and MIC also knew that the Stepanyans were not licensed to sell prescription drugs and that the Stepanyans procured their drugs from street suppliers. Miller and MIC nevertheless purchased the diverted drugs from the Stepanyans and lied to their customers about the sources and nature of those drugs.
Further, the jury concluded Miller engaged in a money laundering conspiracy. The evidence established that Miller and others laundered hundreds of millions of dollars between approximately 2007 and 2015 to promote their criminal activities and to conceal the nature of their scheme. For example, to hide the fact Miller was paying the Stepanyans for the illegally sourced drugs they were distributing, Miller made payments to the Stepanyans’ company GC National Wholesale through companies in Puerto Rico he controlled. As to another supplier, Miller authorized payments to accounts held in the names of various front companies at banks in multiple countries. In this way, Miller and his co-conspirators sought to obscure the illicit sources of MIC drugs and to conceal the true identities of the suppliers.
In sum, at the conclusion of the trial, Miller was convicted of one count of racketeering conspiracy, in violation of 18 U.S.C. § 1962(d); one count of conspiracy to commit mail, wire, and bank fraud, in violation of 18 U.S.C. § 1349; one count of conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956(h); ten counts of mail fraud, in violation of 18 U.S.C. § 1341; and one count of conspiracy to engage in the unlicensed wholesale distribution of drugs and making false statement to the FDA, in violation of 21 U.S.C. §§ 331(t), 333(b)(1)(D), 353(e)(2)(A), and 18 U.S.C. § 371.
Miller remains out of custody pending sentencing. Miller faces a maximum statutory term of life in prison; however, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The Stepanyans and 38 other defendants have pleaded guilty to their respective roles in the conspiracies.
Assistant United States Attorneys Claudia Quiroz, Andrew Dawson, and Chris Kaltsas are prosecuting the case with the assistance of Kevin Costello. The prosecution is the result of an investigation by the FBI, the IRS, the FDA, and USPIS. The United States Attorney’s Office notes the extraordinary contributions and commitment of IRS-CI Special Agent Bryan Wong in this case.
Davenport Man Sentenced to Federal Prison for Production of Child Pornography and Felon in Possession of a FirearmRead the Press Release
Davenport, IA – A Davenport man, Juan Dontae Shelton, age 39, was sentenced on Monday, January 23, 2023, to 330 months in federal prison for production of child pornography, possession of child pornography, and felon in possession of a firearm. Shelton was found guilty of these offenses following jury trials on August 8th and August 15th, 2022. Following his prison term, Shelton was ordered to serve a seven-year term of supervised release.
According to trial testimony, multiple witness identified Shelton’s vehicle as involved in a June 1, 2021 hit-and-run accident in Davenport. One witness told law enforcement that Shelton was arguing with passengers in the car when he got out and retrieved a rifle and body armor from the trunk. Shelton then got back into the vehicle and left the scene. Officers soon found Shelton’s vehicle and conducted a traffic stop. Officers searched the vehicle and found three firearms, one of which was stolen, and methamphetamine and marijuana, all belonging to Shelton. Shelton’s fingerprints were found on the rifle and on the magazine of one of the other firearms. Upon further investigation, Shelton was found to be in possession of multiple child pornography videos on his phone in which he had recorded himself and a minor victim engaged in sexual acts.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Davenport, Iowa Police Department’s Tactical Operations Bureau investigated the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. In May 2021, the Department of Justice 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.