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Monday 23 January 2023
Melbourne Man Sentenced for Firearm and Child Sexual Exploitation OffensesRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Nathan Joel Arledge (29, Melbourne) to six years in federal prison for possessing two machine guns, an unregistered short-barrel rifle, three unregistered silencers, and child sexual abuse material. The court also ordered Arledge to forfeit an AR-10 style .308 caliber firearm; a 9mm Luger firearm utilizing a Polymer80 brand kit, Glock-type firearm parts, a FAB Defense pistol-to-rifle conversion kit; three firearm silencers, and his cellphone, which were used to commit the offenses. Arledge had pleaded guilty on October 25, 2022.
According to court documents, an investigation was initiated into Arledge after law enforcement received a cyber-tip from the National Center for Missing and Exploited Children (NCMEC) that matched Arledge’s internet protocol (IP) address. During the investigation, law enforcement executed a search warrant at Arledge’s residence where they found electronics, multiple firearms, ammunition, silencers, flash bangs, potassium nitrate, magnesium flakes, gun powder, tactical clothing, body armor, law enforcement insignia, and counterfeit credentials for Homeland Security Investigations and the Federal Bureau of Investigation. A forensic examination of Arledge’s cellphone uncovered numerous visual depictions of child sexual abuse material depicting young children. During an interview with law enforcement, Arledge admitted that he had made the machine guns, multiple silencers, and downloaded the child sexual abuse material despite knowing all of these things were illegal.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Homeland Security Investigations (HSI), with the assistance from the Brevard County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Courtney D. Richardson-Jones.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Maryland Man, Previously Convicted for Bank Fraud and Aggravated Identity Theft, Facing Federal Charges for Filing Fraudulent Applications for COVID-19 CARES Act Loans and Unemployment BenefitsRead the Press Release
Baltimore, Maryland – A federal criminal complaint has been filed charging Ryan Dales, age 34, of Baltimore, Maryland, with wire fraud, relating to the submission of fraudulent applications for unemployment insurance (UI) benefits, a Paycheck Protection Program loan, and an Economic Injury Disaster Loan (EIDL) under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act was a federal law enacted in March 2020 to provide emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic. The complaint was filed January 13, 2023, and unsealed today.
A search warrant executed at Dales’ residence following his arrest recovered two firearms, including one privately made firearm, known as a “ghost gun,” suspected fentanyl and suspected drug manufacturing equipment (including a press, multiple scales, multiple sifters, capsules, baggies, and other packaging materials) five cell phones, and materials used to make fraudulent identification documents and access devices. The investigation is continuing.
The defendant is expected to have an initial appearance in U.S. District Court in Baltimore later this afternoon.
The criminal complaint was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Acting Special Agent in Charge Troy W. Springer, of the National Capital Region, U.S. Department of Labor, Office of Inspector General.
Financial assistance offered through the CARES Act included loans to small businesses for job retention and certain other expenses, through the Paycheck Protection Program, administered through the Small Business Administration (SBA). The SBA also offered an Economic Injury Disaster Loan (EIDL) and/or an EIDL advance to help businesses meet their financial obligations. In addition, the CARES Act created the Pandemic Unemployment Assistance (PUA) program, which expanded states’ ability to provide UI for workers impacted by the COVID-19 pandemic, including workers who otherwise wouldn’t be eligible for UI benefits.
According to the affidavit filed in support of the criminal complaint, Dales has a 2017 federal conviction for bank fraud conspiracy and aggravated identity theft, for which he was sentenced to 62 months in federal prison. On December 9, 2020, Dales was transferred from prison to a halfway house in Baltimore, to complete his sentence. Dales was released from custody on June 4, 2021.
The affidavit alleges that on December 15, 2020, soon after Dales arrived at the halfway house, an application for UI benefits was submitted on his behalf from an IP address that resolved to the halfway house. The application stated that Dales was self-employed as a barber, and that he stopped being able to provide services on April 5, 2020, when Dales was actually in federal prison. The application was denied because Dales had not earned sufficient wages in the previous year to be eligible for UI benefits.
As detailed in the affidavit, on July 31, 2021, Dales re-opened his UI claim, seeking benefits under the PUA program. Dales allegedly submitted fraudulent IRS documents to support his PUA claim. The forms indicated that Dales was the sole member of “KNW Group,” and indicated a gross profit for the company in 2019 of $144,112.35, with total expenses of $45,031 and a net profit of $99,081.35. As a result of the documentation, Dales was awarded PUA benefits with an effective date of December 2020. Between August 2021 and September 2021, Dales was paid approximately $25,570 on the claim. Subsequent investigation found that the IRS had no record of any such forms being filed by Dales for the 2019 and 2020 tax years, during which time Dales was incarcerated.
Further, the affidavit alleges that on December 29, 2020, while he was in the halfway house, Dales filed a fraudulent EIDL application for business “Ryan Dales,” d/b/a “Dales Drop, Inc.” According to information contained in the application, Dales Drop is an “agriculture” business established on March 15, 2018 (when Dales was federally incarcerated), with three employees and 2019 gross revenue of approximately $10,000, and $6,000 in costs of goods sold. On the application, Dales allegedly answered “No” to the question “Within the last five years, for any felony, have you ever been convicted, plead guilty, plead nolo contendere, been placed on pretrial diversion, or been placed on any form or parole or probation (including probation before judgment)? Dales’ 2017 fraud conviction made him ineligible for EIDL funding. SBA records show that the EIDL application was ultimately denied due to “unsatisfactory credit history.”
According to the affidavit, in March 2021, again, while Dales was still in the halfway house, a PPP loan application was submitted online from owner “Ryan Dales,” which asserted over $8,000 in average monthly payroll for the sole proprietorship, and sought more than $20,000 in funds for “payroll, rent/mortgage interest, utilities, and covered operations, expenditures, and covered supplier costs.” The application listed a business start date of “08/2018”—a time when Dales would have been incarcerated. The application included a purported 2019 IRS Form Schedule C, listing Dales’ “principal business” as “home improvement,” and listed a gross profit of $113,219, total expenses of $10,117, and a net income of $103,102. Dales allegedly also responded “yes” to the question as to whether he did “materially participate in the operation of this business during 2019.” In fact, Dales was incarcerated during all of 2019.
If convicted, Dales faces a maximum sentence of 20 years in federal prison for wire fraud. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
The District of Maryland COVID-19 Fraud Strike Force is one of three strike forces established by U.S. Attorney General Merrick B. Garland and the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
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 FBI and DOL-OIG for their work in the investigation. United States Attorney Barron and Assistant U.S. Attorney Paul A. Riley are prosecuting the case. Mr. Barron also recognized the assistance of the Maryland COVID-19 Strike Force Paralegal Specialist Joanna B.N. Huber.
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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Man Charged with the First Degree Murder of a Washington County CoupleRead the Press Release
A Bartlesville man was charged Monday in federal court for killing a Washington County couple, announced U.S. Attorney Clint Johnson.
Lucas Anthony Walker, 20, was charged by Criminal Complaint with first degree murder in Indian Country and discharging a firearm during and in relation to a crime of violence.
The Complaint alleges that on or about Dec. 19, 2022, Walker entered the home near Dewey while the victims were sleeping and killed the couple when they awoke. It further alleges that he and a minor later buried the victims in the home’s back yard.
On January 20, 2023, personnel from the Washington County Sheriff’s Office arrived at the residence to conduct a welfare check based on the suspicious disappearance of the couple, Deborah and Larry Dutton, who lived there.
According to the Complaint, Walker and the minor were occupying the residence when law enforcement arrived. During a search of the residence, evidence was allegedly discovered indicating a crime had likely taken place.
This matter will proceed in United States District Court in Tulsa, where the Complaint is currently pending. A Complaint is a temporary charge alleging a violation of law. For the case to proceed to trial, the United States must present the charge to a federal Grand Jury within 30 days. Once a Grand Jury returns an Indictment, a defendant has a right to a jury trial at which the United States would have the burden of proving the defendant’s guilt. All defendants are presumed innocent until proven guilty in a court of law.
The Washington County Sheriff’s Office, Oklahoma State Bureau of Investigation, and the FBI are the investigative agencies. Assistant U.S. Attorneys Eric O. Johnston and Shakema M. Onias are prosecuting the case.
Los Angeles County Man Pleads Guilty to Conspiracy to Distribute and Possess with Intent to Distribute 372 Pounds of Methamphetamine in Kern CountyRead the Press Release
FRESNO, Calif. — Edgardo Rosales-Andrade, 26, of Paramount, California, pleaded guilty today to conspiracy to distribute and to possess with intent to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, from Sept. 30, 2019, to Nov. 15, 2019, Rosales-Andrade conspired with Pedro Alegra and others to distribute and possess with intent to distribute methamphetamine. On Nov. 15, 2019, law enforcement agents tracked a cargo truck carrying 312 pounds of methamphetamine to Delano where Alegra and Rosales-Andrade were waiting. Agents obtained a search warrant for the truck and Alegra’s residence and found an additional 60 pounds of methamphetamine in the residence. The methamphetamine was concealed in furniture in the cargo truck.
This case was the product of an investigation by Homeland Security Investigations, Customs and Border Patrol, and the Bakersfield Police Department. Assistant U.S. Attorney Antonio J. Pataca is prosecuting the case.
On June 17, 2022, Pedro Alegra pleaded guilty to conspiracy to distribute and to possess with intent to distribute methamphetamine and was sentenced to 10 years in prison.
Rosales is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on June 26, 2023. Rosales faces a maximum statutory penalty of life in prison and a $10 million fine. 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.
Lincoln Man Sentenced to Thirteen Years for Possession of Child PornographyRead the Press Release
United States Attorney Steven Russell announced that Aaron Joseph Kearney, 50, of Lincoln, Nebraska, was sentenced on January 20, 2023 by United States District Court Judge John M. Gerrard to 13 years imprisonment following his conviction for possession of child pornography. After he completes his prison sentence, Kearney will also serve 10 years on supervised release. There is no parole in the federal system. Kearney was further ordered to pay $3,000 in restitution to a victim, and $5,000 in special assessments. Kearney pleaded guilty to the offense on October 6, 2022.
Agents with the Department of Homeland Security in Phoenix, Arizona, were investigating an account on an instant messaging platform that was involved in the receipt of child pornography. They were able to obtain information about other accounts interacting with the account under investigation in Phoenix, and which were exchanging child pornography material. One of the accounts they discovered, and which was later found to belong to Kearney, posted messages on August 26, 2021, requesting child pornography material. On August 29, 2021, Kearney’s account posted six videos depicting minors engaged in sexually explicit conduct. Three of the videos involved prepubescent children.
After tracing that account back to Kearney, agents with Homeland Security Investigations in Nebraska obtained a search warrant for Kearney’s residence in Lincoln. The warrant was executed on January 27, 2022. Among the items seized was Kearney’s cellphone. Kearney was home at the time the search warrant was executed and he was interviewed. Kearney confessed that the account in question was his and that he had used that account to seek out child pornography.
Kearney’s phone was later examined. It was found to contain two videos depicting minors engaged in sexually explicit conduct. The examination of his phone also showed three applications installed on his phone that are used to clean and delete files from the device.
One of the factors the district court considered in determining Kearney’s sentence was the fact that Kearney was previously convicted on April 7, 2008, in the United States District Court for the District of Nebraska, of possession of child pornography.
The investigation was conducted by Homeland Security Investigations and this case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Latrobe Man Sentenced to 5 Years for Supplying Meth to Members of the Pagan’s Motorcycle ClubRead the Press Release
PITTSBURGH, PA - A former resident of Latrobe, Pennsylvania, was sentenced in federal court on charges of violating federal narcotics trafficking laws, United States Attorney Cindy K. Chung announced today.
Joshua Birrell, 40, was sentenced on Jan. 11, 2023, to five years’ imprisonment and four years of supervised release by United States District Judge Robert J. Colville.
In conjunction with the sentencing hearing, the Court was informed that the Greater Pittsburgh Safe Streets Task Force, led by the Federal Bureau of Investigation, conducted a long-term investigation into drug-trafficking activity occurring in the Western District of Pennsylvania. Law enforcement identified several individuals, suspected at the time, of illegally distributing controlled substances, including methamphetamine in Allegheny, Westmoreland, Erie, Fayette, and Washington Counties.
During the investigation, investigators learned of individuals involved/associated with the Pagan’s Motorcycle Club (PMC) responsible for distributing methamphetamine, in Westmoreland County. Investigators identified Birrell, who was not a member of the PMC, as a methamphetamine source of supply for the PMC, including among others, co-defendant Zachary Miller.
On May 17, 2020, law enforcement seized a parcel containing methamphetamine intended for Birrell, obtained Facebook drug-facilitation communications between Birrell and Miller, from in and around January 2020 to July 2020, and conducted surveillance of Birrell. Birrell admitted to conspiring to distribute at least 350 grams but less than 500 grams of methamphetamine.
Assistant United States Attorney Rebecca L. Silinski prosecuted this case on behalf of the United States.
United States Attorney Chung commended the Federal Bureau of Investigation, the United States Postal Inspection Service, Drug Enforcement Administration, Allegheny County Sheriff’s Office, Pennsylvania State Police, and Pennsylvania Office of Attorney General Bureau of Narcotics Investigations, for the investigation leading to the successful prosecution of Birrell.
This sentencing was the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against
criminal networks.Las Vegas Man Pleads Guilty to Carrying Eight Pounds of Meth Aboard BusRead the Press Release
KANSAS CITY, Mo. – A Las Vegas, Nevada, man pleaded guilty in federal court today to possessing more than eight pounds of methamphetamine in his duffel bag aboard a bus passing through Kansas City, Mo.
Reginald S. Thomas Sr., 53, pleaded guilty before U.S. Chief District Judge Beth Phillips to one count of possessing methamphetamine with the intent to distribute.
A police service canine alerted to the presence of drugs in a duffel bag that was among the luggage of a bus from Los Angeles, California, that arrived at a bus station in Kansas City, Mo., on July 28, 2021. Thomas, the owner of the duffel bag, was questioned by law enforcement officers.
When officers searched the duffel bag, they found a grey denim backpack that contained seven bundles. Those bundles contained approximately 8.1 pounds (3.674 kilograms) of methamphetamine.
Under federal statutes, Thomas is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ashleigh A. Ragner. It was investigated by the Drug Enforcement Administration and the Missouri Western Interdiction Narcotics (MOWIN) Task Force.
Lakeland Woman Pleads Guilty to Education Loan FraudRead the Press Release
Memphis, TN – Kelli L. Pollard, 50, of Lakeland, Tennessee pled guilty to a criminal information, charging her with education loan fraud. United States Attorney Kevin G. Ritz announced the guilty plea today.
According to the charging document and information presented in court, Kelli Pollard attended the University of Memphis as an undergraduate and graduate student between 2016 and 2022. In each of the five academic years between 2017 and 2022, Pollard obtained federally guaranteed student loans through fraud. She submitted falsified documentation for each student loan request to the University of Memphis Financial Aid Office, including three different fake doctors’ notes, falsified medical bills, and a false auto repair bill.
Sentencing is set for April 23, 2023, before United States District Judge Thomas L. Parker, where Pollard faces up to five years’ imprisonment, a $20,000 fine, and three years of supervised release. There is no parole in the federal system.
This case is being investigated by the United States Department of Education Office of the Inspector General and the University of Memphis Police Department.
United States Attorney Kevin Ritz thanked Assistant United States Attorney Murrell Foster, who prosecuted this case, as well as law enforcement partners who investigated the case.
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For more information, please contact Public Information Officer Cherri Green at (901) 544-4231 or [email protected]. Follow @WDTNNews on Twitter for office news and updates.
Kissimmee Man Sentenced to Federal Prison for COVID Relief Fraud OffensesRead the Press Release
Ocala, Florida – Senior United States District Judge Gregory A. Presnell has sentenced Levelle Joseph Harris (36, Kissimmee) to 27 months in federal prison for wire fraud. The court also ordered the forfeiture of $1,283,029.81, which represents the proceeds Harris obtained from his wire fraud offenses. Harris had pleaded guilty on September 21, 2022.
According to court records, between May 27, 2020, and June 2, 2021, Harris applied for 14 Paycheck Protection Program (PPP) loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act using false information. As part of Harris’s scheme, he electronically submitted applications for the PPP loans over the internet, made false representations on his PPP applications, and received proceeds from the loans through wire transfers. Harris also provided fake supporting documentation for his loan applications. Harris received $1,283,029.81 that was supposed to be used to cover payroll, fixed debts, utilities, rent/mortgage, accounts payable and other bills. Instead, Harris used the money to buy a new car and investment properties.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Hannah Nowalk.
This case was prosecuted as part the Department of Justice’s prosecution of fraud schemes that exploit the CARES Act relief programs. The CARES Act is a federal law enacted in March 2020, designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. One of the two programs that were developed through CARES Act is the PPP. It provides funding to businesses through PPP loans for payroll costs, interest on mortgages, rent and utilities. PPP allows the interest and principal on loans to be forgiven if the business spends proceeds on certain expense items within a designated time and uses a certain percentage of the loan on payroll expenses. The Department of Justice remains vigilant in detecting, investigating, and prosecuting wrongdoing related to the crisis.
Kentucky Man Sentenced to 10 Years in Prison for Federal Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – Trevor Dean Williams, 36, of Ashland, Kentucky, was sentenced today to 10 years in prison, to be followed by three years of supervised release, for being a felon in possession of a firearm.
According to court documents and statements made in court, on May 19, 2022, law enforcement officers responded to Williams’ Huntington residence after a home alarm system alerted 911. Officer observed suspected drug paraphernalia including a blender containing a powder substance, needles and torn plastic bags, as well as ammunition and gun holsters in plain view in the residence. Officers obtained a search warrant for the residence and found three loaded firearms in Williams’ bedroom: a SCCY CPX-2 9mm pistol, a Glock 27 .40-caliber pistol, and a Hi-Point CF380 .380-caliber pistol.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Williams knew he was prohibited from possessing firearms because of his prior felony convictions in Boyd County, Kentucky, Circuit Court for first-degree trafficking in a controlled substance, methamphetamine, on October 31, 2018, and second-degree assault on May 21, 2008.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Huntington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Courtney L. Cremeans prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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. 3:22-cr-152.
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Kanawha County Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Charles Ryan Tucker, 45, of Mammoth, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on January 13, 2022, law enforcement officers attempted to arrest Tucker on a state warrant in Cedar Grove and he fled on foot. Tucker was caught and while resisting arrest told the officers he possessed a firearm. Officers found a loaded Smith & Wesson M&P Shield 9mm pistol holstered on Tucker’s belt and concealed beneath his clothing.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Tucker was prohibited from possessing a firearm because of his prior felony convictions for breaking and entering on May 3, 2021, and grand larceny on January 26, 2015, both in Kanawha County Circuit Court.
Tucker is scheduled to be sentenced on April 20, 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 United States Marshals Service and the Cops United Felony Fugitive Enforcement Division (CUFFED) Task Force.
United States District Joseph R. Goodwin presided over the hearing. Assistant United States Attorneys Timothy D. Boggess and Negar M. Kordestani are 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. 2:22-cr-17.
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KC Man Connected to Three Fentanyl Deaths Charged with Fentanyl Trafficking, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man with connections to at least three fentanyl overdose deaths in Belton, Mo., has been charged in federal court with possessing fentanyl to distribute and illegally possessing firearms after law enforcement officers found 17 firearms along with a large amount of cash and illegal drugs in his apartment.
Tiger Dean Draggoo, 22, was charged in a three-count criminal complaint that was filed under seal in the U.S. District Court in Kansas City, Mo., on Friday, Jan. 20. That complaint was unsealed and made public today following Draggoo’s arrest and initial court appearance. Draggoo remains in federal custody pending a detention hearing that has not yet been scheduled.
The federal criminal complaint charges Draggoo with one count of possessing fentanyl with the intent to distribute, one count of possessing firearms, including machine guns, in furtherance of a drug-trafficking crime, and one count of illegally possessing machine guns.
According to an affidavit filed in support of the federal criminal complaint, three Belton, Mo., teenagers who were associated with Draggoo died from acute fentanyl intoxication between Jan. 14 and Sept. 13, 2022. On at least three more occasions during that time, Belton police officers were called because a juvenile was under the influence of fentanyl (one of those juveniles, who turned 18 after being contacted by police officers, is among the three fentanyl deaths).
Law enforcement officers attempted to conduct a traffic stop on July 21, 2022, of the Dodge Charger Draggoo was driving near the south Kansas City apartment complex where Draggoo lived with his girlfriend. Draggoo refused to stop, according to the affidavit, and fled from the officers.
Officers were conducting surveillance at the apartment complex on Sept. 22, 2022, when Draggoo and another person left the apartment and got into a Jeep Renegade. Officers followed the Jeep and saw it commit numerous traffic violations wile displaying erratic driving. A Jackson County sheriff’s deputy attempted to conduct a traffic stop, but the vehicle fled from the deputy.
A few minutes later, the Jeep returned to the apartment complex and Draggoo and the other person entered the apartment. Draggoo carried a large laundry bag from the apartment and placed it in the backseat of the Jeep. When a Jackson County, Mo., sheriff’s deputy drove into the parking lot, Draggoo ran back into the apartment building. When officers knocked on the door of Draggoo’s apartment, the affidavit says, his girlfriend initially told them he wasn’t there. After she allowed officers to enter the apartment, she admitted that Draggoo had run into the apartment and out the back door.
Officers searched the apartment and found 17 firearms, including two machine guns, ammunition of various calibers, $246,769 in cash, a ballistic vest with plates, a money counter, numerous pills that contained fentanyl, eight suspected LSD tabs, and marijuana. The 17 firearms included a Del-Ton 5.56-caliber rifle (converted into a machine gun), a Glock switch (used to convert a Glock pistol into a machine gun), three Marlin .22-caliber rifles, a Norinco 7.62-caliber rifle, a Mosin-Nagant rifle, an Anderson Manufacturing AM-15 .223-caliber rifle, a Mossberg 12-gauge shotgun, an Armscorp USA .308-caliber rifle, a Century Arms 7.62-caliber rifle, a Herbert Schmidt .22-caliber revolver, a New England Firearms .22-caliber revolver, a Kimber 9mm pistol, a Glock 9mm pistol, a Sig Sauer 9mm pistol, and a Metro Arms .45-caliber pistol.
The charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Brad K. Kavanaugh. It was investigated by the Jackson County Drug Task Force, the Jackson County, Mo., Sheriff’s Department, the Cass County, Mo., Sheriff’s Department, the Belton, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Joplin Man Pleads Guilty to Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A Joplin, Mo., man pleaded guilty in federal court today to receiving and distributing child pornography.
Dakotah James Gilmore, 32, pleaded guilty before U.S. Chief Magistrate Judge David P. Rush to one count of receiving and distributing child pornography.
By pleading guilty today, Gilmore admitted that he viewed and distributed child pornography using the Kik social media application on his iPhone. An officer with the Missouri Cyber Crimes Task Force received four Cyber Tips from Kik and one from Dropbox when Gilmore uploaded images of child pornography.
On Jan. 21, 2022, law enforcement officers executed a search warrant at Gilmore’s residence. Gilmore admitted to viewing and distributing child pornography for at least two years, using several different Kik accounts. Gilmore told investigators that after Kik would close the accounts for violating their terms of service, he would set up a new account with a disposable Gmail address. He also stated that he was a member of at least 50 child pornography groups on Kik. Most of these groups require individuals to distribute child pornography before allowing them to join the group.
A preliminary examination of Gilmore’s cell phone indicated that he sent texts to another person that contained suspected child pornography. The suspected child pornography depicted prepubescent children, no older than five years old, being sexually abused.
Under federal statutes, Gilmore is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
Gilmore will be required to register as a sex offender upon his release from prison and will be subject to federal and state sex offender registration requirements, which may apply throughout his life.
This case is being prosecuted by Assistant U.S. Attorney Stephanie L. Wan. It was investigated by the Barry County, Mo., Sheriff’s Department, Homeland Security Investigations, the Jasper County, Mo., Sheriff’s Department, and the Southwest Missouri Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Jacksonville Man Sentenced to Fifteen Years in Federal Prison for Attempted Production of Child Sex Abuse MaterialRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Tadd Andrew Melton (33, Jacksonville) to 15 years in federal prison, followed by a lifetime term of supervised release, for attempted production of child sex abuse materials. The court also ordered Melton to pay $189,000 in restitution to the victims of his offenses. Melton had pleaded guilty on April 26, 2022, and has been in custody since his arrest on July 23, 2021.
According to court documents, Melton, under the username “flshine69,” began chatting on a particular social media application with a woman he believed to be the mother of a nine-year-old girl. In reality, that individual was an undercover FBI agent. During their conversation, Melton distributed child sex abuse materials multiple times to the undercover agent. He also said that he wished he had children but did not have any yet. Melton requested to purchase used underwear from the “child.” He also requested the agent create child sex abuse materials for him of the “child,” describing in detail what he wanted depicted in the images. Melton also stated he “would love to be” actively abusing children, that he had “no limit” as to a child’s age, and that he had always been interested in young children.
Law enforcement identified Melton as the individual using “flshine69” based on his IP address, vehicle, and online account records. On July 23, 2021, the FBI executed a federal search warrant at Melton’s residence. During the execution of the warrant, Melton spoke with FBI agents and admitted to using the “flshine69” account.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Ashley Washington.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Inmate in Coleman Federal Prison Found Guilty of First-Degree Murder in Death of CellmateRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces that a federal jury has found Romeo Lopez-Hernandez (37, Coleman) guilty of first degree, premeditated murder. Lopez-Hernandez faces a mandatory penalty of life in federal prison. His sentencing is scheduled for April 2023.
According to evidence presented during the three-day trial, on February 1, 2021, Lopez-Hernandez strangled his cellmate to death by using a torn bed sheet he had made with an improvised knife. After the victim lost consciousness, Lopez-Hernandez watched for guards and continued to strangle the victim until he was sure that the victim had died. Lopez-Hernandez later confessed to the murder and bragged about it to prison personnel. At trial, however, Lopez-Hernandez changed his story and claimed the victim had committed suicide.
This case was investigated by the Federal Bureau of Investigation and the Federal Bureau of Prisons. It is being prosecuted by Assistant United States Attorneys Tyrie K. Boyer and Belkis H. Crockett.
Inland Empire Woman Pleads Guilty to Using Prison Inmates’ Names to Fraudulently Obtain over $500,000 in COVID Jobless ReliefRead the Press Release
LOS ANGELES – A San Bernardino County woman pleaded guilty today to fraudulently obtaining more than $500,000 in COVID-19 pandemic-related unemployment insurance (UI) benefits by using the names of inmates locked up the California state prison system.
Cynthia Ann Hernandez, 33, a.k.a. “Cynthia Roberts,” of Victorville, pleaded guilty to one count of mail fraud and one count of access device fraud in excess of $1,000.
According to her plea agreement, from June 2020 to August 2020, Hernandez filed with the California Employment Development Department (EDD) fraudulent applications for UI benefits in the names of persons incarcerated in the California state prison system. EDD manages California’s unemployment insurance benefit program.
Hernandez falsely stated on the UI benefits applications that the named claimants were individuals whose employment had been negatively affected by the COVID-19 pandemic and were eligible for pandemic unemployment assistance under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Congress passed the CARES Act in March 2020, in part, to help individuals whose employment and finances were adversely affected by the pandemic.
The applications also falsely stated that the named claimants were eligible for the UI benefits and that they resided and worked in Los Angeles and Orange counties. EDD then authorized Bank of America to issue debit cards in the claimants’ names and were mailed to Hernandez’s mailing address. Once Hernandez received the debit cards, she used them to withdraw cash at ATMs.
In total, Hernandez admitted to causing at least 29 fraudulent applications to be filed with EDD, resulting in losses to EDD and the United States Treasury of approximately $515,138.
United States District Judge Mark C. Scarsi scheduled an April 17 sentencing hearing, at which time Hernandez will face a statutory maximum sentence of 20 years in federal prison for the mail fraud count and up to 15 years in federal prison for the access device fraud count.
This matter was investigated by the United States Department of Labor – Office of Inspector General; the California Employment Development Department – Investigation Division; Homeland Security Investigations; the California Department of Corrections and Rehabilitation; the United States Department of Homeland Security – Office of Inspector General; the United States Postal Inspection Service; and United States Customs and Border Protection – Special Response Team.
Assistant United States Attorney Haoxiaohan Cai of the General Crimes Section is prosecuting this case.
Individual Sentenced to 262 Months in Prison for Sexual Exploitation of Minors via the Internet and Social Media ApplicationsRead the Press Release
SAN JUAN, Puerto Rico – On January 20, 2023, United States District Court Judge Pedro A. Delgado sentenced Ryan Yared Ortiz-Pérez to 21 years and 10 months in prison followed by six years of supervised release for production of child pornography and for soliciting and receiving the child exploitation material via the internet and social media applications. Ortiz-Pérez was charged in a federal Indictment on May 13, 2021 and plead guilty on August 3, 2022.
According to court documents, from December 2020 to February 2021, Ryan Yared Ortiz-Pérez, used, induced, enticed, and coerced seven identified male minors, ranging from 12 to 16 years of age, to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. The defendant, posing as a female, communicated in a sexually explicit manner with the male minors via a profile in Instagram and solicited and received the sexually explicit images from the male victims via chats. Defendant used those images to further demand and coerce the male minors to send more explicit images under the threat of publicizing the images in social media if the minors did not comply.
Enticing and coercing minors to send sexually explicit images of themselves is a serious federal offense. The production of child pornography material has a statutory minimum sentence of 15 years of imprisonment and the coercion and enticement of minors via the internet and social media applications to engage in illegal sexual conduct, which includes the production of the sexually explicit images, carries a mandatory minimum sentence of 10 years of imprisonment up to life.
The Department of Homeland Security Investigations (HSI), Puerto Rico Crimes Against Children Task Force investigated the case.
The U.S. Attorney’s Office and the Puerto Rico Crimes Against Children Task Force encourages the public to report suspected child predators and any suspicious activity by contacting HSI at 787-729-6969; through its toll-free Tip Line at 1-866-DHS-2-ICE; or by completing its online tip form.
United States Attorney W. Stephen Muldrow of the District of Puerto Rico; and Acting Special Agent in Charge of Homeland Security Investigations Rebecca C. González-Ramos, made the announcement.
Assistant U.S. Attorney Jenifer Hernández-Vega, Chief of the Child Exploitation and Immigration Unit, prosecuted the case.
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Houston woman convicted of using Instagram to commit fraudRead the Press Release
HOUSTON – A 22-year-old Houstonian has admitted to conspiracy to commit wire fraud, announced U.S. Attorney Alamdar S. Hamdani.
From March of 2020 until December of 2020, Desiree Coleman conspired with others to commit wire fraud by submitting false applications for government assistance. Coleman instructed others on how to defraud government programs and applied for others using false representations.
She charged a fee per fraudulent application she filed.
Coleman used the internet to conduct the fraudulent schemes and had advertised her services via her Instagram stories. Most of Coleman’s conversations regarding FEMA and unemployment fraud schemes were conducted via private Instagram messages. Her Instagram page had close to 3,000 followers.
U.S. District Judge George C. Hanks Jr. accepted the plea and has set sentencing for May 1. At that time, Coleman faces up to five years in federal prison as well as a possible $250,000 maximum fine.
Coleman was permitted to remain on bond pending that hearing.
The Department of Homeland Security-Office of Inspector General conducted the investigation. Assistant U.S. Attorney Rodolfo Ramirez prosecuted the case.
Honduran Man Sentenced to Prison for Illegally Reentering the United States After Being Deported Four TimesRead the Press Release
A man who illegally returned to the United States after being deported four times was sentenced today to 18 months in federal prison.
Elmer Noe-Rodriguez, age 46, a citizen of Honduras illegally present in the United States and residing in Chicago, Illinois, received the prison term after an October 13, 2022, guilty plea to one count of illegal reentry into the United States after having been deported.
At the guilty plea, Noe-Rodriguez admitted he had previously been deported and illegally reentered the United States without the permission of the United States government. Noe-Rodriguez was previously deported from the United States in November 2001, January 2013, April 2013, and September 2019. On September 4, 2022, immigration officials learned Noe-Rodriguez had illegally returned to the United States and found Noe-Rodriguez at the Jones County Jail following his arrest on state charges. Noe-Rodriguez has previous convictions for Operating while Intoxicated in 2008 in Minnesota, Sexual Assault and Assault Third Degree in 2012 in Colorado, Illegal Entry into the United States in 2013 in Texas, and Illegal Reentry into the United States in 2018 in Colorado.
Noe-Rodriguez was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Noe-Rodriguez was sentenced to 18 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Noe-Rodriguez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-0076.
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Hartford Man Sentenced to 30 Months in Federal Prison for Fentanyl Distribution and Gun Possession OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that ROBERT ALLEN, 33, of Hartford, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 30 months of imprisonment, followed by three years of supervised release, for fentanyl distribution and firearm possession offenses.
According to court documents and statements made in court, on November 23, 2019, Hartford Police conducted a traffic stop of a vehicle Allen was driving on Woodland Street. A search of the car revealed a loaded Ruger LCP .380 caliber handgun and approximately 48 wax paper sleeves containing a mixture of heroin and fentanyl. The firearm had been reported stolen in Louisiana.
Allen’s criminal history includes state convictions for assault, firearm, drug, larceny and witness tampering offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm that has moved in interstate or foreign commerce.
On July 8, 2020, Allen pleaded guilty to one count of possessing with intent to distribute fentanyl, and one count of possession of a firearm by a convicted felon.
Allen, who had been released on bond pending sentencing, has been detained since August 31, 2022, after he was arrested on state narcotics and firearm offenses. The state charges are pending.
This case was investigated by the Federal Bureau of Investigation’s Connecticut Violent Crime Task Force and the Hartford Police Department. The case was prosecuted by Assistant U.S. Attorney Geoffrey M. Stone through the Justice’s Department’s Project Safe Neighborhoods (PSN) program. PSN, the centerpiece of the Department of Justice’s violent crime reduction efforts, 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.
Fresno Man Sentenced to 5.5 Years in Prison for Receipt and Distribution of Child PornographyRead the Press Release
FRESNO, Calif. — Tanner Joel Hernandez-Fields, 22, of Fresno, was sentenced today to five years and six months in prison for receipt and distribution of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between March 19, 2019, and April 12, 2019, Hernandez-Fields received on an Apple iPhone photos and videos depicting the sexual abuse of children. These images included depictions of prepubescent minors, including material that meets the definition of sadistic or masochistic conduct.
The court ordered forfeiture of the iPhone and $5,000 in restitution to a victim whose images the defendant possessed. The court also placed Hernandez-Fields on a term of supervised release of 15 years during which his access to computers, the internet, and children will be restricted and he will be required to register as a sex offender.
This case was the product of an investigation by Homeland Security Investigations and the Fresno County Sheriff’s Office. Assistant U.S. Attorney David Gappa prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Fort Myers Man Sentenced to Five Years in Federal Prison for Possessing Child Sexual Abuse Images and VideosRead the Press Release
Fort Myers, Florida – U.S. District Judge Thomas P. Barber has sentenced Jeffrey Bruce Carboneau (67, Fort Myers) to five years in federal prison for possessing images and videos depicting the sexual abuse of a child. The court also sentenced Carboneau to a life term of supervised release and ordered him to register as a sex offender. Carboneau had pleaded guilty on September 26, 2022.
According to court documents, Carboneau possessed images and videos depicting the sexual abuse of minors. On July 21, 2022, the FBI executed a search warrant at Carboneau’s workplace in Fort Myers. Agents observed Carboneau downloading child sexual abuse material and seized his computer and external hard drive.
During an interview with agents, Carboneau admitted that the computers in his office were his and that he did not allow others to use his computers. Carboneau also admitted to downloading child sex abuse material for years, and that he downloaded and viewed the child sex abuse material at work.
A subsequent forensic analysis of Carboneau’s computer and external hard drive revealed that Carboneau possessed more than 100,000 images and 150 videos of children being sexually abused.
This case was investigated by the Federal Bureau of Investigation, Fort Myers Child Exploitation and Human Trafficking Task Force, which includes participation from the Charlotte County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Yolande G. Viacava.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Special Agent in Charge of the FBI New York Counterintelligence Division Charged with Violating U.S. Sanctions on RussiaRead the Press Release
A former Special Agent in Charge of the FBI New York Counterintelligence Division and a former Soviet and Russian diplomat were arrested Saturday on criminal charges related to their alleged violating and conspiring to violate the International Emergency Economic Powers Act (IEEPA) and conspiring to commit money laundering and money laundering.
According to court documents, Charles F. McGonigal, 54, of New York City, and Sergey Shestakov, 69, of Morris, Connecticut, are charged in a five-count indictment unsealed today in the Southern District of New York with violating and conspiring to violate the IEEPA, and with conspiring to commit money laundering and money laundering.
According to court documents, on April 6, 2018, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated Oleg Deripaska as a Specially Designated National (SDN) in connection with its finding that the actions of the Government of the Russian Federation with respect to Ukraine constitute an unusual and extraordinary threat to U.S. national security and foreign policy. According to the U.S. Treasury, Deripaska was sanctioned for having acted or purported to act on behalf of, directly or indirectly, a senior official of the Government of the Russian Federation and for operating in the energy sector of the Russian Federation economy.
McGonigal is a former Special Agent in Charge (SAC) of FBI’s Counterintelligence Division in New York who retired in 2018. While working at the FBI, McGonigal supervised and participated in investigations of Russian oligarchs, including Deripaska. Sergey Shestakov is a former Soviet and Russian diplomat who later became a U.S. citizen and a Russian interpreter for courts and government offices.
In 2021, McGonigal and Shestakov conspired to provide services to Deripaska, in violation of U.S. sanctions imposed on Deripaska in 2018. Specifically, following their negotiations with an agent of Deripaska, McGonigal and Shestakov agreed to and did investigate a rival Russian oligarch in return for concealed payments from Deripaska. As part of their negotiations with Deripaska’s agent, McGonigal, Shestakov and the agent attempted to conceal Deripaska’s involvement by, among other means, not directly naming Deripaska in electronic communications, using shell companies as counterparties in the contract that outlined the services to be performed, using a forged signature on that contract and using the same shell companies to send and receive payment from Deripaska.
McGonigal and Shestakov were aware that their actions violated U.S. sanctions because, among other reasons, while serving as SAC, McGonigal received then-classified information that Deripaska would be added to a list of oligarchs considered for sanctions as part of the process that led to the imposition of sanctions against Deripaska. In addition, in 2019, McGonigal and Shestakov worked on behalf of Deripaska in an unsuccessful effort to have the sanctions against Deripaska lifted. In November 2021, when FBI agents questioned Shestakov about the nature of his and McGonigal’s relationship with Deripaska’s agent, Shestakov made false statements in a recorded interview.
McGonigal and Shestakov are charged in the Southern District of New York with one count of conspiring to violate and evade U.S. sanctions, in violation of the IEEPA, one count of violating IEEPA, one count of conspiring to commit money laundering and one count of money laundering, each of which carries a maximum sentence of 20 years in prison. Shestakov is also charged with one count of making false statements, which carries a maximum sentence of five years in prison. Shestakov and McGonigal were arrested in New York on Saturday and will make their initial court appearances this afternoon before Magistrate Judge Sarah L. Cave in Manhattan federal court.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Damian Williams for the Southern District of New York, Assistant Director Alan E. Kohler Jr. of the FBI Counterintelligence Division, and Assistant Director in Charge Michael J. Driscoll of the FBI New York Field Office made the announcement.
The FBI is investigating the case, with valuable assistance provided by the U.S. Customs and Border Protection as well as the New York City Police Department.
Assistant U.S. Attorneys Hagen Scotten, Rebecca T. Dell and Derek Wikstrom for the Southern District of New York and Trial Attorney Scott Claffee of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Special Agent in Charge of the New York FBI Counterintelligence Division Charged with Violating U.S. Sanctions on RussiaRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of a five-count Indictment charging CHARLES MCGONIGAL and SERGEY SHESTAKOV with violating and conspiring to violate the International Emergency Economic Powers Act (“IEEPA”) and with conspiring to commit money laundering and money laundering. SHESTAKOV is also charged with making material misstatements to the FBI. The defendants were arrested on Saturday evening, and they will be presented this afternoon before Magistrate Judge Sarah L. Cave in Manhattan federal court. The case has been assigned to U.S. District Judge Jennifer H. Rearden.
U.S. Attorney Damian Williams said: “As alleged, Charles McGonigal, a former high-level FBI official, and Sergey Shestakov, a Court interpreter, violated U.S. sanctions by agreeing to provide services to Oleg Deripaska, a sanctioned Russian oligarch. They both previously worked with Deripaska to attempt to have his sanctions removed, and, as public servants, they should have known better. This Office will continue to prosecute those who violate U.S. sanctions enacted in response to Russian belligerence in Ukraine in order to line their own pockets.”
FBI Assistant Director in Charge Michael J. Driscoll said: “The FBI is committed to the enforcement of economic sanctions designed to protect the United States and our allies, especially against hostile activities of a foreign government and its actors. Russian oligarchs like Oleg Deripaska perform global malign influence on behalf of the Kremlin and are associated with acts of bribery, extortion, and violence. As alleged, Mr. McGonigal and Mr. Shestakov, both U.S. citizens, acted on behalf of Deripaska and fraudulently used a U.S. entity to obscure their activity in violation of U.S. sanctions. After sanctions are imposed, they must be enforced equally against all U.S. citizens in order to be successful. There are no exceptions for anyone, including a former FBI official like Mr. McGonigal. Supporting a designated threat to the United States and our allies is a crime the FBI will continue to pursue aggressively.”
According to the allegations contained in the Indictment unsealed today in Manhattan federal court:[1]
In 2014, the President issued Executive Order 13660, which declared a national emergency with respect to the situation in Ukraine. To address this national emergency, the President blocked all property of individuals determined by the U.S. Treasury to be responsible for or complicit in actions or policies that threatened the security, sovereignty, or territorial integrity of Ukraine, or who materially assist, sponsor, or provide support to individuals or entities engaging in such activities. Executive Order 13660 and regulations issued pursuant to it prohibit making or receiving any funds, goods, or services by, to, from, or for the benefit of any person designated by the U.S. Treasury.
On April 6, 2018, the United States Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) designated Oleg Deripaska as a Specially Designated National (“SDN”) in connection with its finding that the actions of the Government of the Russian Federation with respect to Ukraine constitute an unusual and extraordinary threat to U.S. national security and foreign policy (the “OFAC Sanctions”). According to the U.S. Treasury, Deripaska was sanctioned for having acted or purported to act on behalf of, directly or indirectly, a senior official of the Government of the Russian Federation and for operating in the energy sector of the Russian Federation economy.
CHARLES MCGONIGAL is a former Special Agent in Charge (“SAC”) of FBI’s Counterintelligence Division in New York, who retired in 2018. While working at the FBI, MCGONIGAL supervised and participated in investigations of Russian oligarchs, including Deripaska. SERGEY SHESTAKOV is a former Soviet and Russian diplomat who later became a U.S. citizen and a Russian interpreter for courts and government offices.
In 2021, MCGONIGAL and SHESTAKOV conspired to provide services to Deripaska, in violation of U.S. sanctions imposed on Deripaska in 2018. Specifically, following their negotiations with an agent of Deripaska, MCGONIGAL and SHESTAKOV agreed to and did investigate a rival Russian oligarch in return for concealed payments from Deripaska. As part of their negotiations with Deripaska’s agent, MCGONIGAL, SHESTAKOV, and the agent attempted to conceal Deripaska’s involvement by, among other means, not directly naming Deripaska in electronic communications, using shell companies as counterparties in the contract that outlined the services to be performed, using a forged signature on that contract, and using the same shell companies to send and receive payments from Deripaska.
MCGONIGAL and SHESTAKOV were aware that their actions violated U.S. sanctions because, among other reasons, while serving as SAC, MCGONIGAL received then-classified information that Deripaska would be added to a list of oligarchs considered for sanctions as part of the process that led to the imposition of sanctions against Deripaska. In addition, in 2019, MCGONIGAL and SHESTAKOV worked on behalf of Deripaska in an unsuccessful effort to have the sanctions against Deripaska lifted. In November 2021, when FBI agents questioned SHESTAKOV about the nature of his and MCGONIGAL’s relationship with Deripaska’s agent, SHESTAKOV made false statements in a recorded interview.
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CHARLES MCGONIGAL, 54, of New York, New York, and SERGEY SHESTAKOV, 69, of Morris, Connecticut, are charged with one count of conspiring to violate and evade U.S. sanctions, in violation of the IEEPA, one count of violating the IEEPA, one count of conspiring to commit money laundering, and one count of money laundering, each of which carries a maximum sentence of 20 years in prison. SHESTAKOV is also charged with one count of making false statements, which carries a maximum sentence of five years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding work of the FBI New York Field Office’s Counterintelligence Division and the valuable assistance from U.S. Customs and Border Protection as well as the New York City Police Department.
The case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Hagan Scotten, Rebecca T. Dell, and Derek Wikstrom are in charge of the prosecution with assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Former Jefferson Resident Pleads Guilty to Firearm Charges After Illegally Possessing Eight Firearms and over 600 Rounds of AmmunitionRead the Press Release
CONCORD – Hunter Ramsay, 29, formerly of Jefferson, New Hampshire, pleaded guilty in federal court to one count of possession of firearms by a previously convicted person, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, Ramsay was wanted on outstanding state warrants for probation violations in both New Hampshire and Vermont when he was observed by New Hampshire State Police driving a truck in Bethlehem, NH on July 7, 2021. After Ramsay initially fled, his vehicle was disabled by the law enforcement’s employment of spike strips in Littleton, NH. Ramsay was taken into custody, and a total of eight firearms and over 600 rounds of ammunition were recovered from his person and vehicle following the later execution of a state search warrant. At the time, Ramsay was prohibited from possessing firearms and ammunition under federal law as a result of a prior felony conviction in Vermont state court. Ramsay has been detained since his arrest.
Ramsay is scheduled to be sentenced on May 1, 2023.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, the New Hampshire State Police, and the Littleton, NH Police Department. The Coos County Attorney’s Office and New Hampshire Department of Corrections provided additional assistance. The case is being prosecuted by Assistant United States Attorney Charles L. Rombeau.
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Former Duquesne Man Pleads Guilty to Distributing Heroin for Neighborhood Street GangRead the Press Release
PITTSBURGH - A former resident of Duquesne, Pennsylvania, and a fugitive from 2019 to 2022, pleaded guilty on Jan. 11, 2023, in federal court to a charge of violating federal narcotics law in connection with a large-scale investigation conducted by the Greater Pittsburgh Safe Streets Task Force, United States Attorney Cindy K. Chung announced today.
Delbert Pate, 30, pleaded guilty to one count before Senior United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the Court was advised that the Greater Pittsburgh Safe Streets Task Force conducted a long-term investigation of drug trafficking occurring in and around the Braddock Borough outside of Pittsburgh and identified several members and associates of a neighborhood-based street gang, self-titled “SCO” that were responsible for distributing controlled substances in Western Pennsylvania, which was led by Pate’s half-brother, who has previously been sentenced, Howard McFadden.
Pate was identified as a member of SCO and involved in McFadden’s drug-trafficking business. Intercepted communications revealed that in addition to acting as a drug runner/courier for McFadden, Pate was one of McFadden’s trusted associates, and received distributor quantities of heroin from McFadden. Pate admitted that he was responsible for distributing over 100 grams of heroin.
Judge Schwab scheduled sentencing for May 18, 2023, at 9:30 AM. The law provides for a total sentence of at least five years in prison, a fine of $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, if any, of the defendant.
Pending sentencing, the court ordered defendant remain detained.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the United States.
The Federal Bureau of Investigation along with the Drug Enforcement Administration, Bureau of Alcohol Tobacco Firearms and Explosives, United States Marshals Fugitive Task Force, Allegheny County Sheriff’s Office, Allegheny County Police Department, Pennsylvania State Police, Pennsylvania Office of Attorney General Bureau of Narcotics Investigations, and the Pittsburgh Bureau of Police. Other assisting agencies include the Allegheny County Adult Probation, Monroeville Police Department, Penn Hills Police Department, Shaler Township Police Department and Wilkinsburg Police Department, conducted the investigation that led to the prosecution of Pate.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Florida Man Who Destroyed Computer Equipment During Execution of Federal Search Warrant Sentenced for Possession of Child Sexual Abuse Material and Destruction of EvidenceRead the Press Release
Tampa, Florida – U.S. District Judge Kathryn Kimball Mizelle has sentenced James Wesley Buchanan (47, Lake Wales) to 8 years in federal prison, to be followed by 10 years of supervised released for possession of child sexual abuse material and destruction of evidence in a federal investigation. The court also ordered Buchanan to register as a sex offender for life and pay restitution to the victims of his offense. Buchanan had pleaded guilty on October 25, 2022.
According to court documents, on December 8, 2021, federal agents executed a search warrant for evidence of child sexual abuse material at Buchanan’s home. At approximately 6:15 a.m., agents announced their presence and requested Buchanan to exit the home. Buchanan failed to exit the home for more than 20 minutes, despite numerous announcements and phone calls by agents. During this time, Buchanan destroyed multiple computer hard drives. When he finally exited the home, Buchanan was sweating profusely and bleeding from his hands. As agents finally entered the home, they discovered the broken and destroyed computer equipment. Agents seized devices that were not damaged beyond repair and forensic analysis subsequently revealed over 800 images and 30 videos of child sexual abuse material.
This case was investigated by the Federal Bureau of Investigation – Tampa Field Office. It was prosecuted by Assistant United States Attorney Erin Claire Favorit.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Firearm Trafficker Sentenced to 37 Months in Federal PrisonRead the Press Release
Trafficked Guns Used in Multiple Crimes Throughout Michigan, Including the Homicide of a 2-Year-Old
GRAND RAPIDS, MICHIGAN — U.S. Attorney Mark Totten announced that Jerreil LaMounta Martin, from Grand Rapids, Michigan, was sentenced to serve 37 months in prison for illegally purchasing and trafficking more than 40 firearms, several of which were used in multiple crimes throughout Michigan. U.S. District Court Judge Robert J. Jonker also imposed 3 years of supervised release following his term of incarceration.
“Straw purchasing and gun trafficking drive a dangerous black market for firearms,” said U.S. Attorney Mark Totten. He continued: “These crimes feed the violence that plague communities across Michigan – including the horrible killing of an innocent 2-year-old child less than a year ago. My office will hold straw purchasers and illegal gun traffickers accountable for creating these supply lines of violence.”
Martin ran an illegal gun trafficking business, charging customers $50 to $100 per firearm to lie on the purchase forms, saying he was buying the guns for himself when he was really purchasing them for other people. This tactic is sometimes referred to as “straw purchasing.” Martin knew that his customers, who were convicted felons, were prohibited from buying guns for themselves. He also knew some of his customers were reselling guns to other people. Martin capitalized on his lack of criminal history and ability to purchase guns and then sell those firearms to prohibited persons for a profit.
While the whereabouts of most of the guns Martin straw purchased and trafficked remain unknown, police have recovered fourteen of these firearms. Together the stories of these fourteen guns provide a glimpse into the rise of violent crime over the past few years in cities across Michigan and the role that firearms trafficking has played. For example:
In Genesee County
- A Glock 9mm semi-automatic pistol, which Martin purchased on April 22, 2021, was used in a drive-by shooting in Flint, which struck an 11-year-old girl.
- Another Glock 9mm pistol, which Martin also purchased on April 22, 2021, was used in a homicide in Flint.
In Kent County
- A Ruger 5.7 x 28 mm semi-automatic pistol, which Martin purchased on September 4, 2021, was used to kill a 2-year-old child on February 9, 2022, in Wyoming, Michigan. The Kent County Prosecutor has filed charges against the victim’s father, Seninta Parks, in this case.
- A Glock .45 caliber semi-automatic pistol, which Martin purchased on September 7, 2021, was used in a shooting on the Blue Bridge in downtown Grand Rapids on September 11, 2022, in which four people were injured. Moreover, this same gun was used in two prior shootings in Grand Rapids.
- A Glock 9 mm semi-automatic pistol, which Martin purchased on September 7, 2021, was used in three separate drive-by shooting incidents in Grand Rapids over the next two months.
In Isabella County
- A Glock .40 caliber semi-automatic pistol, which Martin purchased on September 10, 2021, was recovered by Central Michigan University Police in connection to a series of vehicle break-ins.
Martin was told by investigators that the Ruger 5.7 x 28 mm semi-automatic pistol he purchased on September 4, 2021, was used to kill a child, as described above. Undeterred, Martin attempted to straw purchase and traffic another firearm to a person he knew was a convicted felon. Law enforcement then arrested Martin and the U.S. Attorney’s Office for the Western District of Michigan charged him for the crimes he now stands convicted.
“Gun trafficking and straw purchasing is not a victimless crime. The act of knowingly enabling a prohibited person to purchase a firearm puts firearms in the hands of criminal organizations and violent criminals presenting a grave threat to the safety of our communities,” said, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Assistant Special Agent in Charge Craig Kailimai. “ATF’s relationship with federal, state, tribal, and local partners continue to be successful in removing illegal firearms from the streets.”
“This sentencing is a huge win for public safety in Grand Rapids. We know that illegal guns from this trafficker were used in the shooting on the Blue Bridge in September,” said Grand Rapids Police Chief Eric Winstrom. “I am thankful for the work of the U.S Attorney’s Office and the ATF to investigate and build this case. Getting illegal guns, and the source of those guns, off the street is a critical piece in reducing gun violence in our city.”
“The Central Michigan University (CMU) Police Department appreciates the collaborative relationship with the ATF and the U.S. Attorney’s Office,” said CMU Police Department Lt. Mike Sienkiewicz. “Interagency collaboration and teamwork between local and federal law enforcement is essential in maintaining safe communities. This case represents an important effort to combat illegal gun purchases and gun violence that effect our communities.”
This case was investigated by the ATF and the Metro Pattern Crimes Team consisting of detectives from the Kentwood Police Department, Kent County Sheriff’s Office, and the Wyoming Police Department as part of the Department of Justice’s Project Safe Neighborhoods, a nationwide initiative to reduce violent crime. The U.S. Attorney’s Office, county prosecutor’s offices, and federal, state, local, and tribal law enforcement work closely together to identify and prosecute individuals responsible for driving violent crime in our communities to make neighborhoods safer for everyone. Individuals with information or concerns about violent crime or firearms offenses should contact local law enforcement. For more information about Project Safe Neighborhoods, visit: https://www.justice.gov/psn.
The United States Attorney’s Office for the Western District of Michigan is committed to disrupting the trafficking of firearms. Recent cases include: Grand Rapids Brothers Sentenced to Prison For Brazen Gun Store Robbery, Grand Rapids Man Sentenced to Nearly Six Years In Prison For Unlawfully Possessing Firearms, Kalamazoo “Ghost Gun” Dealer Sentenced To 12 Years In Federal Prison, and Straw Purchaser Sentenced To 58 Months in Federal Prison.
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Federal Grand Jury Indicts Two Peoria, Illinois, Brothers for Wire Fraud and False Statements Related to COVID Relief FundsRead the Press Release
PEORIA, Ill. – A grand jury returned indictments on January 18, 2023, against two Peoria, Illinois, brothers, charging them with wire fraud and making false statements related to the Paycheck Protection Program (PPP) administered and unemployment insurance benefits:
Derek Griffin, 35, was charged with four counts of wire fraud and two counts of false statements. The indictment alleges the offenses occurred from July 2020 through July 2022 in Peoria County, Illinois.
Eric Griffin, 35, was charged with five counts of wire fraud and two counts of false statements. The indictment alleges the offenses occurred from July 2020 through June 2021 in Peoria County, Illinois.
Each of the individuals has been issued a summons to appear in federal court in Peoria for arraignment on February 15, 2023. If convicted, the maximum statutory penalties for each of the wire fraud counts is a maximum of 20 years’ imprisonment, a three-year term of supervised release, $250,000 fine, and restitution. Each of the false statement counts has a maximum penalty of five years’ imprisonment, a three-year term of supervised release, $250,000 fine, and restitution.
The investigation was conducted by the Department of the Treasury, Internal Revenue Service, Criminal Investigation, and the Federal Bureau of Investigation, Springfield Office. Criminal Chief Darilynn J. Knauss is representing the government in the prosecutions.
COVID-19 disaster relief and enhanced unemployment benefits are intended to help people and businesses suffering as a result of the pandemic. If members of the public suspect anyone fraudulently obtained or misused benefits, they should contact the National Center for Disaster Fraud (NDCF) Hotline at 1-866-720-5721 or submit the NCDF Web Complaint Form. The NCDF is a national coordinating agency within the Department of Justice’s Criminal Division dedicated to improving the detection, prevention, investigation, and prosecution of criminal conduct related to natural and man-made disasters and other emergencies, such as the coronavirus (COVID-19). Hotline staff will obtain information regarding complaints, which will then be reviewed by law enforcement officials. More information is available at https://www.justice.gov/disaster-fraud.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Former TSA Officer Pleads Guilty to Altering DocumentsRead the Press Release
St. Thomas, VI – United States Attorney Delia L. announced today that Cleon Otto, Jr., 35, of St. Thomas, pleaded guilty in federal court to one count of altering official documents.
According to court records, on July 9, 2022, Otto, then an employee of the Transportation Security Administration and a member of the Virgin Islands National Guards, electronically placed the authorized signature of a National Guards employee on official documents requesting military leave when no such leave was authorized. Otto faces a maximum term of one year in prison and a maximum fine of $100.00.
This case was investigated by Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Everard E. Potter.
Former DEA Informant Sentenced to 368 Months for His Role in Haulover Bay ShootoutRead the Press Release
St. Thomas, VI – United States Attorney Delia L. Smith announced today that Samuel Elias Pena Columna, 49, of St. John, was sentenced to 368 months of imprisonment and fined $10,000.00 by Chief Judge Robert A. Molloy. In September 2022, a federal jury convicted Pena Columna of conspiracy to possess with intent to distribute cocaine, possession of a firearm in furtherance of a drug trafficking crime, discharge of a firearm in furtherance of a crime of violence, and two counts of assaulting a federal officer.
According to court documents and evidence presented at his trial, on September 25, 2019, Pena Columna was involved in a shootout with several U.S. Customs and Border Protection Air and Marine Interdiction Agents. That evening, Pena Columna drove co-defendants Rammer Guerrero Morales and Joan Morales Nolasco, as well as two other men, to Haulover Bay, a well-known drug smuggling area on the east end of St. John, with over $1.1 million in cash to conduct a 100-kilogram cocaine transaction with traffickers from Tortola, BVI. After arriving at the top of trail, Guerrero Morales and Morales Nolasco headed down towards the ocean. Guerrero Morales was armed with a 9mm handgun and Morales Nolasco was armed with an AR-15 long gun. After confirming that the trail was clear, Guerrero Morales and Morales Nolasco had planned to signal for the other coconspirators waiting in Pena Columna’s vehicle to bring the cash down the trail to complete the drug transaction while Pena Columna waited at the top of the trail in his vehicle.
Trial evidence further revealed that, while traveling down the trail, Guerrero Morales and Morales Nolasco encountered two federal agents who immediately announced themselves as police. Guerrero Morales fired his weapon, and a shootout erupted leaving one agent with gunshot wounds to his shoulder and leg. During the exchange of fire, Guerrero Morales was hit in his leg which was later amputated due to the severity of his injury. After the shootout, Morales Nolasco fled the scene and ultimately made his way to the Dominican Republic. He was later extradited back to the Territory for prosecution. Pena Columna and the two remaining co-conspirators also fled the scene, taking the $1.1 million with them. When confronted by DEA agents, Pena Columna admitted that he had heard about the incident, but later admitted that he drove the men to the Cruz Bay area where they escaped. At trial, federal agents testified that Pena Columna was a paid informant who was not authorized to engage in any criminal activity without express prior approval from DEA and only under their supervision. Evidence at trial further revealed that, during the entire course of his agreement with DEA, Pena Columna operated his own large-scale cocaine trafficking organization with Nolasco Morales.
“Thanks to the great collaborative efforts of the various law enforcement agencies, this sentencing should send a strong message that Homeland Security Investigations and our law enforcement partners are committed to seeking, dismantling, and bringing to justice those who perpetrate drug trafficking and violent crime in the U.S. Virgin Islands” said Acting Special Agent in Charge-Rebecca Gonzalez-Ramos. “Individuals and organizations that attempt to circumvent our legal system must realize that Air and Marine Operations agents are steadfast in their determination to enforce US laws in our borders,” stated Augusto Reyes, Director of Air and Marine Operations in Puerto Rico and the US Virgin Islands.
At sentencing, Chief Judge Molloy noted that Pena Columna essentially had been working as a double agent, gathering and providing information to DEA on drug traffickers, while engaging in the same conduct behind law enforcement’s back. Chief Judge Molloy further stated that although Columna Pena did not fire a weapon, under federal law, he is responsible for the foreseeable criminal conduct of his co-defendants, noting that the possibility of a shootout was certainly foreseeable in this case. Before imposing the sentence of 368 months, Chief Judge Molloy stated that, among other factors, the sentence must reflect the “very serious” nature of the crimes Pena Columna committed.
The Federal Bureau of Investigation, Drug Enforcement Administration, Homeland Security Investigations, U.S. Customs and Border Protection Air and Marine Operations, and the Virgin Islands Police Department investigated the case. This effort was 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. Assistant United States Attorneys Meredith Edwards and Kyle Payne prosecuted this case.
El Pasoan Gets 13 Years in Prison for Sending, Receiving Child PornographyRead the Press Release
EL PASO, Texas– An El Paso man was sentenced in federal court here Thursday to 160 months in prison for receipt and distribution of a visual depiction involving the sexual exploitation of a minor.
According to court documents, Javier Alejandro Parada, 36, used a fake social media account to share nearly 35 files containing Child Sexual Exploitation Material (CSEM) in a group chat between Dec. 31, 2020, and Jan. 2, 2021. After locating Parada’s residence investigators identified additional online accounts on which he kept files containing CSEM, some of which had been sent to him from other contacts.
“We remain committed to prosecuting these types of heinous offenses against children and will always follow up on any leads of child sexual abuse,” said U.S. Attorney Jaime Esparza of the Western District of Texas. "Just as important as the result of this case, Parada’s arrest led to the arrest of another child predator in Las Cruces and the rescue of that defendant’s victim. Our partners did an amazing job throughout this investigation."
“Predators contemplating to exploit children should heed this Homeland Security Investigations (HSI) investigation and the sentence handed down,” said Special Agent in Charge Francisco B. Burrola of HSI El Paso. “HSI and our law enforcement partners continue to work tirelessly to protect our greatest asset—our children—and focus on arresting and prosecuting those who seek to victimize them.”
HSI investigated the case.
Assistant U.S. Attorney Sarah Valenzuela prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Corfu Woman Sentenced for Her Role in Fraudulent African Orphanage SchemeRead 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 Julie Keller, 57, of Corfu, NY, who was convicted of wire fraud, was sentenced to serve one year probation, and pay restitution totaling $162,853.59, by U.S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorney Franz M. Wright, who handled the case, stated that in December 2014, Keller began communicating online with someone who identified themself as “Eric Holder,” who claimed to be raising money to build an orphanage in Africa. Between July 2015 and September 2020, Keller received money from numerous individuals (victims) who allegedly were contributing financially to the orphanage project. Keller deposited the money in bank accounts at First Niagara Bank, M&T Bank, KeyBank, and Bank of America that she owned and controlled, before dispersing the funds to other bank accounts located outside of the United States. During the course of the scheme, each of the banks closed Keller’s accounts, advising her that the accounts were closed due to suspicious and fraudulent activity. However, Keller became aware during the course of the scheme that the orphanage project was fraudulent and the individuals sending her money were doing so under false pretenses, or she strongly suspected that the scheme was fraudulent but consciously avoided learning the truth, and continued to deposit funds into her accounts from victims. The total loss amount to victims was $182,730.76.
The sentencing is the result of an investigation by the U.S. Postal Inspection Service Boston Division, under the direction of Inspector in Charge Ketty Larco-Ward.
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Convicted Felon Found Guilty on Gun and Drug ChargesRead the Press Release
BIRMINGHAM, Ala. – A federal jury on Thursday found a convicted felon guilty on gun and charges, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
The jury returned its guilty verdict against Devon Martez Easley, 31, of Vestavia Hills, after three days of testimony before U.S. District Court Judge Madeline H. Haikala. Easley was convicted of possession with intent to distribute cocaine and heroin, using and carrying a firearm during and in relation to a drug trafficking crime, and two counts of felon in possession of a firearm.
“This is the second trial in a week involving gun crime. We continue to use all tools in our toolbox to address the ongoing issue of gun crime in our communities,” said U.S. Attorney Escalona. “I appreciate the hard work and dedication of our law enforcement partners to identify and bring to justice those who commit these crimes.”
“ATF’s top priority is to reduce violent crime,” said SAC Watson. “Drug trafficking and the prevalence of guns on our streets continue to plaque our community at alarming rates. The ATF will continue to work together with our law enforcement partners to aggressively investigate and apprehend those individuals.”
According to evidence presented at trial, on January 26, 2020, Mountain Brook police officers responded to a call of a stranded car on Highway 280 near Shades Creek Parkway. Upon arrival officers found Easley unresponsive and slumped over the steering wheel. Officers opened the driver’s side door, put the car in park and turned off the engine. Easley sat up, and though somewhat responsive, appeared disoriented. In Easley’s hand, officers noticed a marijuana joint. After being told repeatedly by officers to “step out of the car,” Easley eventually exited the vehicle. Officers searched Easley and found him to be in possession of a Taurus 9mm pistol. Officers also searched the vehicle and recovered a loaded Sig Sauer 9mm pistol that had been reported stolen, 23 grams of cocaine, heroin, marijuana and synthetic marijuana. Some of the narcotics were packaged for distribution.
In addition to the convictions on the offenses committed in Mountain Brook on January 26, 2020, the jury also found Easley guilty of being a felon in possession of a firearm for an incident on February 9, 2021, where Easley possessed a stolen Taurus 9mm pistol in Birmingham. Easley’s prior felony convictions included Breaking and Entering a Vehicle, Assault Second Degree, Unlawful Possession of Marijuana, First Degree, Attempted Distribution of a Controlled Substance, and Destruction of State Property.
The maximum penalty for possession with the intent to distribute cocaine and heroin is 20 years in prison. Easley faces a minimum penalty of five years in prison for using and carrying a firearm during and in relation to a drug trafficking crime. The maximum penalty for being a felon in possession of a firearm is 10 years in prison.
The ATF investigated the case along with the DEA, Mountain Brook Police Department, Birmingham Police Department and the Alabama Department of Forensic Sciences. Assistant U.S. Attorneys William Simpson and John Camp are prosecuting the case.
Connecticut Sex Offender Pleads Guilty to Attempted Enticement of a MinorRead the Press Release
ALBANY, NEW YORK – David Feeney, age 56, of Bristol, Connecticut, pled guilty today to attempted coercion and enticement of a minor. United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
Feeney admitted that between March and April 2022, he exchanged sexually explicit messages online with undercover officers posing as a father and a 10-year-old child in an attempt to entice the child into engaging in sexual acts with him. Feeney also admitted that on April 24, 2022, he traveled from Connecticut and arrived unannounced at a residence in Albany County, with the intent to engage in sexual acts with the presumed 10-year-old child. Feeney was arrested by law enforcement shortly after arriving at the location. Feeney was a registered sex offender at the time of the offense, and had a prior felony conviction, in Connecticut, involving sexual assault of a minor.
Chief United States District Judge Brenda K. Sannes will sentence Feeney on May 23, 2023. He faces at least 10 years and up to life in prison, a maximum fine of $250,000, and a term of post-imprisonment supervised release of at least 5 years and up to life. 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.
This case was investigated by the FBI and its Child Exploitation Task Force, which includes members of federal, state, and local law enforcement agencies, including the Colonie Police Department and New York State Police. This case is being prosecuted by Assistant United States Attorney Alexander Wentworth-Ping as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Child Predator Sentenced to 15 Years for Producing, Sharing Child PornographyRead the Press Release
AUSTIN, Texas – A Florence, Texas man was sentenced Friday to 15 years in federal prison followed by 15 years of supervised release for the sexual exploitation of a child and production of child pornography.
According to court documents, Joseph Leslie Reichard, 23, used his cell phone to produce three images of child sexual abuse material depicting a minor between the ages of one and three years old. Reichard sent the images via a messaging app to a person in Pennsylvania. He pleaded guilty in October 2022 and has remained in federal custody since his arrest in March 2022.
“This defendant used his cell phone to photograph and distribute despicable acts of sexual abuse against defenseless children,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “Limiting the availability of child sexual abuse begins with cracking down directly on offenders like Reichard, who can expect to face the harshest penalties under federal law.”
"The FBI continues its steadfast commitment to rescue children from those who commit these abhorrent crimes," said Special Agent in Charge Oliver E. Rich Jr. of the FBI San Antonio Division. "Today's sentencing is the result of the FBI and our task force partners' relentless effort to hold child predators accountable for their reprehensible acts."
The FBI San Antonio Division investigated the case with the help of the FBI Pittsburgh Division.
Assistant U.S. Attorney Matthew Devlin prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Cedar Rapids Man Gets 20 Years in Federal Prison for 2011 Taxicab RobberyRead the Press Release
A man who killed a taxi driver during a robbery on April 29, 2011, was sentenced today to 20 years in federal prison.
Johnathan DeWayne Mitchell, age 44, from Cedar Rapids, Iowa, received the prison term after a guilty plea to one count of robbery of the taxi, which was entered as trial commenced on August 29, 2022. The maximum penalty for Mitchell’s crime was 20 years’ imprisonment.
Evidence admitted at the trial, before the plea was entered showed the driver died of multiple stab wounds she sustained during the robbery. Additionally, the sentencing judge found evidence admitted at trial and sentencing showed Mitchell’s killing of the driver was premeditated, and intentionally done during the robbery, and Mitchell used the robbery proceeds to purchase crack cocaine.
Mitchell was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Mitchell was sentenced to the statutory maximum sentence of 240 months’ imprisonment. He was ordered to make $5000 in restitution to the owner of the cab and $24,663.10 to the Iowa Crime Victim Fund. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Mitchell is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case is being prosecuted by Assistant United States Attorneys Patrick Reinert and Dillan Edwards and was investigated by the Cedar Rapids Police Department and Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-00029-LTS. Follow us on Twitter @USAO_NDIA.
Caseyville Woman Admits to Cashing Deceased Mother’s Social Security ChecksRead the Press Release
EAST ST. LOUIS, Ill. – A woman from Caseyville admitted to cashing more than $128,000 in her deceased mother’s Social Security benefits in a U.S. District Court on Monday.
Darlene L. Rogers, 72, pled guilty to one count of Theft of Government Funds.
“Concealing a relative’s death from the Government in order to keep receiving the relative’s Social Security benefits constitutes felony theft,” said U.S. Attorney Rachelle Aud Crowe. “Individuals tempted to do this face going to federal prison.”
“Ms. Rogers knowingly committed fraud by stealing Social Security retirement benefits that were intended for her deceased mother,” said Gail S. Ennis, Inspector General for the Social Security Administration (SSA). “I want to thank the U.S. Attorney’s Office for prosecuting this case. We will continue to protect the integrity of the SSA and hold accountable those who defraud its programs.”
According to court documents, Juanita M. Rich, the defendant’s mother, collected monthly benefits from the Social Security Administration until her passing in October 1997. The family didn’t report Rich’s death to the SSA, and in October 2009, Rogers forged her mother’s signature to gain ownership of the bank account. For 12 years, Rogers used her deceased mother’s checkbook to write checks payable to herself in approximately the amount of the monthly social security deposit.
In early 2021, the SSA discovered Rich was deceased and launched an investigation. From October 2009 to April 2021, the SSA deposited $128,656 into the bank account.
The defendant’s sentencing is scheduled for 10 a.m. on May 23, 2023.
The Social Security Administration – Office of the Inspector General led the investigation, and Assistant U.S. Attorney Scott Verseman is prosecuting the case.
Bulgarian National Convicted for Child Pornography Trafficking ConspiracyRead the Press Release
A federal jury convicted a Bulgarian national today for conspiracy to advertise and distribute images and videos depicting the sexual exploitation of young children.
According to evidence presented at trial, Plamen Georgiev Velinov, 49, of Sofia, helped manage and administer the Newstar Enterprise, an internet-based business that profited from the sexual exploitation of vulnerable children under the guise of “child modeling,” through a collection of websites called the Newstar Websites. Beginning in around 2006 and continuing until 2019, Velinov assisted the enterprise by selecting children to be featured on the Newstar Websites, editing images and videos on those websites, communicating with customers, setting prices for videos, activating new websites, and creating advertising banners. While chatting with a co-conspirator, Velinov described one child as “nuclear sexy,” underscoring his knowledge of the purpose of the websites. Financial records show that U.S.-based co-conspirators transferred more than $400,000 to Velinov’s Bulgarian bank account in connection with the conspiracy.
According to court documents in this case and related cases, the Newstar Enterprise, which was founded around 2005, built, maintained, hosted, and operated the Newstar Websites on servers in the United States and abroad. To populate the Newstar Websites with content, Newstar Enterprise members sourced, enticed, solicited, and recruited males and females under the age of 18, many of whom were prepubescent, to use as “child models” for the Newstar Websites. The Newstar Enterprise used the child victims to produce more than 4.6 million sexualized images and videos – including images and videos depicting children as young as six-years-old in sexual and provocative poses, wearing thong underwear, transparent underwear, revealing swimsuits, pantyhose, miniskirts, and costumes – that were distributed and sold through the Newstar Websites. Most of the child victims were recruited from Ukraine, Moldova, and other nations in Eastern Europe and were particularly vulnerable due to their age and socio-economic status.
Newstar subscribers and customers of the Newstar Websites were from more than 100 different countries. Images were freely available to the public to preview, but Newstar offered a paid subscription for greater access and more content. The sale of Newstar content generated more than $9.4 million during the conspiracy. To process, receive, and distribute this money, Newstar Enterprise leaders fraudulently opened merchant and bank accounts in the United States and laundered proceeds using a bogus jewelry company.
Velinov was convicted of one count of conspiracy to advertise visual depictions of minors engaged in sexually explicit conduct and one count of conspiracy to distribute such images. He is scheduled to be sentenced on April 18 and faces a maximum penalty of 50 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
To date, six members of the Newstar Enterprise have been charged in connection with the Newstar Websites. The chart below shows the status of each case.
Name
Charge(s)
Status
Tatiana Power
Conspiracy to commit money laundering
Pleaded guilty and sentenced to 12.5 years in prison
Kenneth Power
Conspiracy to advertise child pornography; conspiracy to distribute child pornography
Defendant deceased; case dismissed
Plamen Georgiev Velinov
Conspiracy to advertise child pornography; conspiracy to distribute child pornography
Convicted after trial
Patrice Wilowski-Mevorah
Conspiracy to commit money laundering
Pleaded guilty and sentenced to 63 months in prison
Anthony Lee Kendall
Conspiracy to commit money laundering; promotion money laundering; concealment money laundering
Defendant deceased; case dismissed
Mary Lou Bjorkman
Conspiracy to commit money laundering
Pleaded guilty and sentenced to 18 months in prison
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Roger B. Handberg for the Middle District of Florida, and Special Agent in Charge John Condon of Homeland Security Investigations (HSI) Tampa made the announcement.
HSI Tampa and the High Technology Investigative Unit of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) investigated these cases with substantial assistance from the HSI offices in Fort Lauderdale, Florida, and Athens, Greece, as well as U.S. Customs and Border Protection in Sofia, Bulgaria. This investigation also benefited from substantial assistance and cooperation from foreign law enforcement, including from the Republic of Bulgaria, Supreme Cassation Prosecution Office; the National Investigative Service of Bulgaria; and the Dutch National Police, International Legal Assistance Center, North-Holland Unit. The Justice Department’s Office of International Affairs assisted with securing foreign evidence, including through mutual legal assistance requests to Bulgaria and the Netherlands, and with Velinov’s extradition. The Justice Department’s Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT) provided capacity building assistance and mentoring.
Trial Attorney Kyle P. Reynolds of the Justice Department’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Karyna Valdes of the Middle District for Florida are prosecuting these cases.
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.
Buffalo Man and Woman Plead Guilty to Cocaine 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 Jose A Solis-Pizzaro, 43, and Mirelys Camacho Betancourt, 27, both of Buffalo, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to attempt to possess with intent to distribute cocaine. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Franz M. Wright, who is handling the case, stated that on February 1, 2021, law enforcement executed a search warrant on a parcel addressed to “Axel Rodriguez 430 Parker Ave. Buffalo, NY 14216.” Investigators recovered approximately 1024 grams of cocaine. A few days later, on February 3, 2021, the contents of the parcel were replaced with sham and delivered to 403 Parker Avenue by an undercover law enforcement officer. While standing in front of the residence, Solis-Pizzaro approached the officer and stated that the subject parcel belonged to him, and that he lived at the residence. Shortly after receiving the parcel, Solis-Pizzaro got into a black BMW vehicle. He was then arrested, and the subject parcel was recovered in the vehicle.
Later that day, Camacho Betancourt arrived in the vicinity where the package was delivered, was questioned by law enforcement about her connection to the residence and taken into custody. Camacho Betancourt admitted that she was paid to locate addresses in Buffalo, NY, where parcels containing drugs could be delivered.
The pleas are the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division, the U.S. Postal Inspection Service Boston Division, under the direction of Inspector in Charge Ketty Larco-Ward, and the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia.
Camacho Betancourt is scheduled to be sentenced on May 31, 2023, and Solis-Pizzaro on June 1, 2023, both before Judge Vilardo.
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Bakersfield Man Sentenced to 7 Years in Prison for Conspiring to Distribute Methamphetamine, Cocaine, Fentanyl, and HeroinRead the Press Release
FRESNO, Calif. — Jose Rivas Jr., 27, of Bakersfield, was sentenced today to seven years in prison for conspiracy to distribute and possess with intent to distribute methamphetamine, cocaine, fentanyl, and heroin, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between June 2016 and May 2018, Rivas conspired with another Bakersfield man, Juan Pina, 24, to use a national parcel service company to ship packages of narcotics to various distributors around the country. Records filed with the court indicate that Rivas and Pina made kilogram-quantity shipments of controlled substances on at least 45 occasions.
On May 3, 2018, search warrants were executed for Pina’s residence and vehicle. Pina was arrested while driving his vehicle, and in the back seat was a three-foot-long rectangular box, similar in size to the earlier shipments. The package was searched and found to contain approximately 700 grams of cocaine. In a search of Pina’s home, agents recovered over 2 pounds of heroin, over 2 pounds of cocaine, approximately 70 grams of methamphetamine, a loaded handgun, and three long guns all found within close proximity to the drugs. Rivas was working with Pina, in connection with shipping the narcotics seized on May 3. Rivas directed Pina to pick up narcotics from various individuals. Rivas then provided Pina with addresses of individuals across the country to coordinate the shipment of kilogram quantities of methamphetamine, cocaine, and heroin.
On March 27, 2019, when search warrants were executed for Rivas’s residence, agents recovered 12 cellphones and arrested Rivas.
Juan Pina pleaded guilty to conspiracy to distribute and possess with intent to distribute, cocaine, methamphetamine, and heroin, and on Aug. 28, 2019, he was sentenced to six years and six months in prison.
This case was the product of an investigation by the Homeland Security Investigations and the Bakersfield Police Department. Assistant U.S. Attorney Antonio J. Pataca prosecuted the case.
Brothel Owner Sentenced to 87 Months in PrisonRead the Press Release
St. Thomas, VI – United States Attorney Delia L. Smith announced that Ramona Rivera Luna, 65, a native of the Dominican Republic, was sentenced in federal court today after previously pleading guilty to one count of transporting an individual in foreign commerce for the purpose of prostitution and three counts of bringing illegal aliens to the United States for financial gain. Chief District Court Judge Robert A. Molloy sentenced Rivera Luna to a term of 87 months imprisonment, followed by five years of supervised release, restitution in the amount of $1,095,712.00 and $20,400.00 in a mandatory special assessment fee.
According to court documents, Rivera Luna arranged for illegal aliens living in the Dominican Republic and Venezuela to be smuggled to St. Thomas to live and work as prostitutes at The Embers Guest House, an illegal house of prostitution that she owned and operated. Rivera Luna admitted to having lured some of these women into traveling to St. Thomas under the false pretense of providing them with legitimate employment as bartenders. Rivera Luna further admitted that she financially benefitted from this arrangement as the women were required to reimburse her for the cost of their transportation. The women were also required to pay Rivera Luna rent and a cut of the money they earned from performing commercial sex acts. In handing down the sentence, Chief Judge Molloy noted the mental anguish that Rivera Luna caused her victims to suffer.
This case was investigated by Homeland Security Investigations and assisted by the Federal Bureau of Investigation, Drug Enforcement Agency, Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Postal Inspection Service. Assistant United States Attorney Meredith Edwards prosecuted this case.
Atlanta promoter and entrepreneur indicted for Paycheck Protection Program fraudRead the Press Release
ATLANTA - Travis Lee Harris has been arraigned on federal charges stemming from his fraudulent acquisition of a Paycheck Protection Program loan for small businesses. Harris was indicted by a federal grand jury on January 3, 2023.
“Congress established the Paycheck Protection Program to help small businesses, not to be easy money for anyone willing to lie on a loan application,” said U.S. Attorney Ryan K. Buchanan. “We will continue to investigate and prosecute anyone who defrauded taxpayers out of the funds meant to sustain the economy during the COVID-19 crisis.”
“Providing false information to defraud SBA’s pandemic-related programs is a crime,” said U.S. Small Business Administration Office of the Inspector General’s Eastern Region Special Agent in Charge Amaleka McCall-Braithwaite. “OIG is committed to rooting out bad actors and protecting the integrity of SBA programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: In June 2020, Travis Harris signed a Paycheck Protection Program (PPP) loan application for his business, Atlanta Luxury Cars & Trucks LLC, in the amount of $968,405. Harris’ application was based on fraudulent information about the business’ number of employees, payroll, and revenue. Based on Harris’ fraudulent representations, the lender deposited the $968,405 into one of Harris’ bank accounts for Atlanta Luxury Cars & Trucks LLC. Harris soon began transferring the PPP loan funds into his personal bank accounts.
Travis Lee Harris, 41, of Atlanta, Georgia, was arraigned on an indictment charging the offense of wire fraud, in violation of Title 18, United States Code, Section 1343, on January 18, 2023, before U.S. Magistrate Judge John K. Larkins III. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Small Business Administration's (SBA-OIG) Office of Inspector General.
Assistant U.S. Attorneys Thomas Forsyth and Alison Prout are 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.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Armed Felon Sentenced to over 6 Years in Federal PrisonRead the Press Release
INDIANAPOLIS- Desmond Breaziel, 33, of Indianapolis, Indiana, was sentenced to 75 months in federal prison for illegally possessing a firearm.
According to court documents, on March 7, 2022, Lawrence Police Department (LPD) officers responded to a report of two men passed out in a parked Ford Explorer at a Waffle House parking lot. The driver, Desmond Breaziel, was unresponsive upon the officers’ arrival. When Breaziel woke up and exited the vehicle, he appeared confused and disoriented. Officers found a loaded Taurus .38 caliber handgun and approximately 81 pills containing methamphetamine on Breaziel’s person. A subsequent search of the vehicle uncovered a fanny pack containing marijuana and a digital scale.
Breaziel is prohibited from possessing a firearm under federal law due to his previous felony convictions, including dealing narcotics and a prior federal conviction for illegally possessing a firearm as a felon. Breaziel was still under court supervision following his release from federal prison when he was again arrested for illegal gun possession.
“Illegally armed felons and drug dealers help drive the gun violence plaguing our families and neighbors,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “I commend the quick response by the Lawrence Police Department and the work of ATF to protect the public from this criminal. The serious sentence imposed today is a message to others who are legally barred from possessing firearms: put down the guns or you risk federal prison time.”
“The Lawrence Police Department thanks the U.S. Attorney’s Office for the Southern District of Indiana and U.S. Attorney Zachary Myers, along with our law enforcement partners at the Bureau of Alcohol, Tobacco, Firearms, & Explosives for focusing federal resources on holding armed felons accountable,” said Chief Gary Woodruff of the Lawrence Police Department. “These federal, state, and local agency collaborations leading to convictions result in a safer central Indiana for all Hoosiers to enjoy.”
ATF investigated this case with valuable assistance provided by LPD. The sentence was imposed by U.S. District Court Judge, Chief Tanya Walton Pratt. Judge Pratt also ordered that Breaziel be supervised by the U.S. Probation Office for 3 years following his release from federal prison.
U.S. Attorney Myers thanked Assistant United States Attorneys Abhishek Kambli and Samantha Spiro, who prosecuted this case.
Armed Drug Dealer Sentenced to over 10 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Charlene E. Honeywell has sentenced Michael James Staton (30, Wachula) to 10 years and 10 months in federal prison for conspiracy to possess with the intent to distribute 50 grams or more of methamphetamine, possession of 50 grams or more of methamphetamine with the intent to distribute it, unlawful possession of a firearm by a convicted felon, and two counts of distribution of 5 grams or more of methamphetamine. The court also ordered Staton to forfeit a North American Arms Guardian, .380 caliber handgun, Springfield Armory XDS, .45 caliber handgun, Glock 19 handgun, and $12,408 in U.S. currency that was traceable to the offense. Staton had pleaded guilty on October 17, 2022.
According to court documents, on July 18, 2020, Staton was serving the supervision portion of a sentence stemming from a Florida felony conviction. The supervision conditions included a curfew of 10:00 PM. On that same day, a law enforcement officer who was aware that Staton was under state supervision and subject to curfew observed Staton drive into a gas station. The officer approached and detained Staton to investigate the curfew violation, conducted a pat-down search of Staton and discovered $2,248 and marijuana on Staton’s person. As other officers arrived on the scene, one officer observed a firearm in plain view on the floorboard of Staton’s car. The officers searched Staton’s car and found 131 grams of methamphetamine, two firearms, $10,160 in a safe, two cellphones, and 889 grams of marijuana.
A few months later, on October 27, 2020, Staton and a co-conspirator sold 28 grams of methamphetamine to a confidential informant. On October 8, 2020, Staton and his co-conspirator sold an additional 56 grams of methamphetamine
This case was investigated by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. Agencies involved in this OCDETF operation include Homeland Security Investigations (HSI), the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Florida Department of Law Enforcement, the Hardee County Sheriff’s Office, and the DeSoto County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Charlie D. Connally.
Saturday 21 January 2023
Madison County Man Pleads Guilty to Receipt and Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Ryan Berte, age 33, of Eaton, New York, pled guilty yesterday to receiving and possessing hundreds of images and videos of child pornography announced United States Attorney Carla B. Freedman, Special Agent in Charge Matthew Modafferi, United States Postal Service-Office of Inspector General (USPS-OIG), Northeast Area Field Office, Inspector in Charge Ketty Larco-Ward, Boston Division, United States Postal Inspection Service (USPIS), and New York State Police (NYSP) Acting Superintendent Steven A. Nigrelli.
As part of his guilty plea yesterday, Berte admitted that from at least February 24, 2021, through March 10, 2021, while employed as a mail carrier in Madison County, New York, he downloaded images and videos of child pornography which he also made available to third parties using a peer-to-peer file sharing program installed on his laptop. Berte also admitted that, on September 22, 2021, during a search of his home, he possessed hundreds of images and videos of child pornography on the same laptop.
At sentencing, scheduled for May 22, 2023, Berte faces a maximum potential sentence of 20 years’ imprisonment, with a mandatory minimum term of 5 years’ imprisonment, a term of supervised release of between 5 years and life, and a maximum fine of $250,000. Berte will also be required to register as a sex offender upon release from prison. A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by USPS-OIG, USPIS, and the New York State Police, Bureau of Criminal Investigation (BCI), Computer Crimes Unit (CCU), Troop D Oneida. The case is being prosecuted by Assistant U.S. Attorney Adrian S. LaRochelle as a part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal 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 https://www.justice.gov/psc.
Liverpool Man Sentenced for Drug and Firearm CrimesRead the Press Release
SYRACUSE, NEW YORK – Dionel Hall, age 43, of Liverpool, New York, received an 84-month prison sentence as a result of his convictions for possessing with intent to distribute a controlled substance, possessing a firearm in furtherance of a drug-trafficking crime, and unlawfully possessing a firearm as a felon.
United States Attorney Carla B. Freedman, Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration New York Division, and New York State Police Acting Superintendent Steven A. Nigrelli made the announcement.
As part of his previous guilty plea, Hall admitted that on February 7, 2021, he possessed 995.6 grams of eutylone, also known as “molly,” which he intended to distribute to customers in Oneida County and elsewhere. Hall further admitted that on September 9, 2021, he possessed a loaded semiautomatic pistol, approximately 140 rounds of ammunition of various calibers, and $45,094.00 cash drug proceeds. Hall acknowledged that at the time of the offense, he knew that he had been convicted of multiple felony offenses punishable by imprisonment for a term exceeding one year, and that he was also on parole at the time. Those prior convictions included a first-degree robbery conviction in 2003, for which he received a sentence in Monroe County Court of 18 years’ imprisonment.
U.S. District Judge David N. Hurd also imposed a 3-year term of supervised release to follow imprisonment, and the forfeiture of the firearm and ammunition involved in the offense. As part of his prior guilty plea, Hall agreed to the administrative forfeiture of the cash drug proceeds.
The U.S. Drug Enforcement Administration (DEA) and New York State Police investigated the case with the assistance of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Utica Police Department. Assistant U.S. Attorney Matthew J. McCrobie prosecuted the case.
Friday 20 January 2023
Wake County Man Sentenced to 15 Years After Shooting into Public Safety Center in Downtown RaleighRead the Press Release
NEW BERN, N.C. – United States Attorney Michael Easley announced that a Cary man was sentenced today to 181 months in prison after carjacking a woman at gunpoint and firing multiple shots at the Wake County Public Safety Center in downtown Raleigh. Willie Lee Hayes, Jr., 51, pled guilty to the charges.
“Hayes was an armed and dangerous felon with lengthy criminal history who put law enforcement and the public at risk,” said U.S. Attorney Michael Easley. “Let today’s 15-year sentence stand as a warning. Our office is prioritizing the prosecution of repeat felons driving gun violence in our communities.”
“The Wake County Sheriff’s Office would like to thank the US Attorney’s Office for their diligence in bringing this case to a successful conclusion,” stated Sheriff Willie L. Rowe. “The actions of Willie L. Hayes, Jr. on October 6, 2020 put the lives of several members of the public as well as staff members of our office in grave jeopardy. It is a miracle that none of the bullets fired by Mr. Hayes directly struck any of the numerous people in the vicinity. We would also like to thank our partners with the Raleigh Police Department, Cary Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and others for their assistance with this case.”
“The Raleigh Police Department expresses gratitude to the Department of Justice for their due diligence in prosecuting this case,” said Raleigh Police Chief Estella Patterson. “We are thankful no one was seriously injured in this violent act against the Wake County Sheriff’s Office and several other public safety agencies. An act of violence against any public safety partner is an act of violence against our entire community. Our department is committed to collaborating with other agencies to bring justice to those who harm our communities.”
According to court documents and other information presented in court, on October 6, 2020, at around 3:00 pm, a white Dodge Journey stopped on Salisbury Street in Raleigh in front of the John H. Baker Public Safety Center. The Public Safety Center houses the detention center, Emergency Medical Services (EMS), Fire Services, the City-County Bureau of Identification, and the Wake County Sheriff's Office. A man, later identified as Hayes, stepped out of the right front passenger seat and pulled out a handgun. He fired multiple shots toward the front of the building, where several people were present. Shots hit the building’s front door and windows. While no one was hit, falling glass from a broken window injured a Wake County Deputy’s leg. Hayes got back into the car, which fled South on Salisbury Street away from the scene. Officers recovered 12-9mm shell casings from the road.
A witness provided officers with a license plate number, and a registration check revealed that the car was registered to Hayes and a woman with the initials J.N., both listed as sharing an address on Rose Street in Cary. Officers soon located J.N. driving the Dodge Journey near the home. During an interview, J.N. explained that she purchased a Stoeger 9mm pistol about two weeks prior but hadn’t seen it for around a week. Before the shooting, Hayes asked her to come pick him up and take him to a gas station. But during the drive, Hayes pulled out the 9mm handgun and demanded that she drive him to the Wake County courthouse (referring to the Public Safety Center). He said that if she stopped the vehicle for any reason, he would shoot her. When she arrived in front of the courthouse, Hayes opened the font passenger door of the vehicle and began firing. Hayes then told her to drive away and not to stop until they were back home. She had dropped him off at the house and had just left when officers stopped her car.
Deputies surrounded the Rose Street residence and took Hayes into custody. They executed a search warrant and found the Stoeger 9mm pistol in the seat of a moped. J.N. was shown a photograph of the firearm and confirmed it to be her pistol that Hayes had used to shoot the courthouse.
At the time of the shooting, Hayes’ criminal record included five state felony drug convictions, three convictions for assault on a female, and a felony conviction for assault with a deadly weapon inflicting serious injury. He had previously been convicted as a habitual felon in state court.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Raleigh and Cary Police Departments, Wake County Sheriff’s Office, and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated the case. Assistant U.S. Attorney Jake D. Pugh prosecuted.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-cr-0499-FL.
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Violent Drug Dealer Who Threatened Law Enforcement Receives 9 Years in Federal PrisonRead the Press Release
RALEIGH, N.C. – Joseph Michael Wilson, also known as “Mike Mike,” 37, of Kinston North Carolina, was sentenced to 108 months in prison for two counts of distribution of a quantity of cocaine. Wilson pled guilty to the charges on November 15, 2022.
“Law enforcement officers put their lives on the line to protect our communities day in and day out,” said U.S. Attorney Michael Easley. “They deserve our utmost respect. This defendant, a violent drug dealer, threatened not only the officers, but also their families. Now he will be spending the next nine years in prison.”
“The Kinston Police Department is committed to working with our federal, state and local law enforcement partners to make our communities safer,” said Interim Kinston Police Department Chief Keith Goyette. “On behalf of the men and women of the Kinston Police Department as well as our citizens, I want to extend my sincere thanks to U.S. Attorney Michael Easley Jr. and his staff at the U.S. Attorney’s Office for the Eastern District of North Carolina for partnering with us to combat crime and prosecute violent offenders within our community. Cases like this demonstrate the overall strategy and uncompromising determination to eliminate the drug and violent crime plaguing our community.”
According to court documents, evidence presented in court, and other documents, on June 15 and June 20, 2022, the Kinston Police Department made controlled purchases of cocaine from Wilson. Both deals occurred in an area known as the “Kurve” on South Adkins Street in Kinston.
On July 14, 2022, Wilson was arrested at a residence on Falling Creek Road. Law enforcement searched the residence and found additional cocaine.
The investigation also revealed that prior to his arrest on these charges, Wilson posted several threats against law enforcement on social media, including posting pictures of officers and their families.
Wilson has prior state felony convictions for Voluntary Manslaughter in 2006, Assault with a Deadly Weapon with Intent to Kill in 2006, and Assault Inflicting Serious Bodily Injury in 2015.
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Kinston Police Department investigated the case and Assistant U.S. Attorney Timothy Severo prosecuted the case.
A copy of this press release is located on our website. 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-00040-BO.
U.S. Attorney’s Office Collects More Than $53.5 Million in Fiscal Year 2022Read the Press Release
OKLAHOMA CITY – United States Attorney Robert J. Troester announced today that the Western District of Oklahoma (WDOK) collected $53,584,692 in criminal and civil actions and through asset forfeiture in Fiscal Year 2022.
Of the total amount collected and exclusively worked by the district, $3,245,900 was for criminal actions and $2,952,310 for civil action. The WDOK also worked with components of the Department of Justice and other U.S. Attorney’s Offices to jointly collect $40,997,638 in civil cases. The WDOK collected $6,388,844 through asset forfeiture by partnering with agencies and divisions. Forfeited assets deposited into the DOJ Assets Forfeiture Fund are used to restore funds to crime victims as well as a variety of law enforcement purposes.
"In addition to keeping communities safe, my office prioritizes the recovery of financial losses suffered by victims of crime and by taxpayers who have lost funds through fraud on the government or default on loans," said U.S. Attorney Robert J. Troester. "I am proud the talented women and men in my office who use the tools Congress has provided to seek to achieve financial justice in criminal and civil litigation involving the United States."
Highlights of the Western District of Oklahoma’s FY2022 collection efforts include:
- After a collaborative investigation with other DOJ components, Balfour Beatty Communities LLC (BBC), one of the largest providers of privatized military housing to the U.S. Armed Forces, paid $35.2 million to resolve claims that they defrauded the U.S. Air Force, U.S. Army, and U.S. Navy by falsifying satisfaction of performance objectives to obtain incentive payments to which it was not entitled.
- After a voluntary disclosure, Oklahoma Heart Hospital South, LLC paid $1,151,770.50 to resolve allegations it submitted false claims for Intensive Cardiac Rehabilitation services billed to Medicare.
- Comanche County Hospital Authority (“CCHA”) and two physicians paid $550,000 to resolve civil penalty claims related allegations that the prescriptions issued by Drs. Harden and Varkey were outside the usual course of professional practice and that CCHA neglected to implement appropriate prescribing policies and procedures.
- INTEGRIS ProHealth, Inc., and its parent company, INTEGRIS Health, Inc. paid $120,000 to resolve civil penalty claims stemming from allegations that Integris Baptist Medical Center Pharmacy violated the Comprehensive Drug Abuse Prevention and Control Act of 1970 and its regulations by failing to timely notify DEA regarding thefts or significant losses of Schedule II controlled substances.
- A $100,000.00 forfeiture money judgment against Rodger Bramley was collected in full on June 17, 2022. In 2013, Bramley was indicted with dozens of other individuals for their participation in an illegal gambling business, Legendz Sports. In 2015, a federal jury convicted Bramley of racketeering conspiracy, conducting an illegal gambling business, and money laundering conspiracy.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.