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Friday 20 January 2023
Two Defendants Sentenced to Prison Resulting from Organized Crime Drug Enforcement Task Force Investigation in Middle GeorgiaRead the Press Release
MACON, Ga. – Two men, including one defendant classified as a career offender, were sentenced to prison for their roles in a drug trafficking network centered in Warner Robins, Georgia, responsible for distributing approximately 16 kilograms of methamphetamine. This case is the result of an Organized Crime Drug Enforcement Task Force investigation into armed drug trafficking in Middle Georgia.
Matthew Kay, 35, of Warner Robins, was sentenced to serve 235 months in prison to be followed by four years of supervised release to run consecutively to three sentences he is currently serving in Houston County, Georgia. Kay pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on Sept. 6. Kay is a career offender with two prior felony drug distribution convictions in state court. Parsa Ervin, 45, of Warner Robins, was sentenced to serve 57 months in prison to be followed by one year of supervised release to run consecutively to any term of imprisonment that may be imposed in three separate cases in Houston County. Ervin pleaded guilty to two counts of use of a communication facility to conspire to possess with intent to distribute methamphetamine on Aug. 30. U.S. District Judge Tilman E. “Tripp” Self, III handed down the sentences on Jan. 19. There is no parole in the federal system.
“Armed drug traffickers and those associated with criminal organizations that threaten the safety of our region will be held accountable,” said U.S. Attorney Peter D. Leary. “The federal, state and local law enforcement agencies that comprise the Organized Crime Drug Enforcement Task Force are laser-focused on identifying and dismantling the most dangerous criminal networks in the Middle District of Georgia.”
“This investigation deals a fatal blow to a once-thriving ‘meth’ ring,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “With the leader facing up to 40 years behind bars, the community of Warner Robins and elsewhere can rest assured that their communities are much safer today thanks to the outstanding case work by DEA and our local law enforcement partners.”
“ATF considers the Organized Crime Drug Enforcement Task Force a critical partner in its long-term mission of removing armed gangs, criminals and narcotics traffickers from our communities,” said Assistant Special Agent in Charge Beau Kolodka, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Atlanta Field Division.
“The Warner Robins Police Department is honored to have worked in conjunction with our federal partners through the Organized Crime Drug Enforcement Task Force which resulted in the outcome of this case,” said Chief Wayne Fisher, Warner Robins Police Department. “It is through such local, state and federal partnerships that impacts such as these can be realized. It was with great work and effort from the men and women of this task force which resulted in these arrests that will have an immeasurable impact for the good of our shared communities.”
According to documents and other evidence admitted into court, Drug Enforcement Administration (DEA) agents and Warner Robins Police Department officers investigated co-defendant Ontarrio Veal’s aka Torrie, 32, of Warner Robins, drug trafficking organization based out of Warner Robins from Jan. to June 2020. Law enforcement obtained court orders to intercept the phone calls and text messages from Veal’s and co-defendant Tamara Hall’s cell phones. Agents learned that Veal was a multi-kilogram methamphetamine dealer and surveilled Veal and various co-defendants conducting methamphetamine transactions and traveling to Atlanta to purchase large quantities of methamphetamine.
Veal was taken into custody on June 1 on a return trip from Atlanta in possession of three kilograms of methamphetamine and a Glock .40 caliber semi-automatic pistol with a 50-round drum magazine. Agents executed search warrants at various locations in Middle Georgia, seizing multiple firearms and ammunition, methamphetamine and more than $100,000 cash. The organization is responsible for distributing more than 16 kilograms of methamphetamine.
Veal pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on Nov. 15 and faces a maximum term of 40 years in prison to be followed by at least four years of supervised release and a $5,000,000 fine. Sentencing is scheduled for March 7, 2023.
Seven additional co-defendants have pleaded guilty and/or been sentenced as a result of this case:
Reginald Lowe, 41, of Warner Robins, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on Aug. 30, 2022, and was sentenced to serve 240 months in prison to be followed by four years of supervised release on Dec. 6, 2022. Lowe’s federal sentence will run consecutive to a state sentence he is currently serving in Houston County, Georgia, for an aggravated assault conviction;
Milton Simmons aka Mann, 40, of Macon, pleaded guilty to possession with intent to distribute methamphetamine on Aug. 1, 2022, and was sentenced to serve 120 months on Jan. 10;
Donna Ussery, 31, of Warner Robins, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on April 19, 2022, and was sentenced to serve 100 months in prison on Oct. 4, 2022;
Marquell Gaines aka Paris, 38, of Warner Robins, pleaded guilty to use of a communication facility to conspire to possess with intent to distribute methamphetamine on July 19, 2022, and was sentenced to serve 48 months in prison on Oct. 11, 2022;
Tamara Hall, 39, of Warner Robins, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on April 19, 2022, and sentencing is scheduled for April 25;
Victor Mendoza, 34, of Warner Robins, pleaded guilty to conspiracy to possess with intent to drugs on Dec. 1, 2022, via a global plea agreement in the Southern District of Alabama and sentencing is scheduled for March 3; and
Eddie Linkhorn, 42, of Warner Robins, pleaded guilty to two counts of use of a communication facility to conspire to possess with intent to distribute methamphetamine on Oct. 20, 2022, and sentencing is scheduled for March 7.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case is being investigated by Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Warner Robins Police Department.
Assistant U.S. Attorney Will Keyes is prosecuting the case.
Tuscaloosa Resident Convicted of Straw PurchaseRead the Press Release
BIRMINGHAM, Ala. – A federal jury yesterday convicted a Tuscaloosa resident for making a straw purchase of a firearm, 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 Demarcus Hamler, 24, of Tuscaloosa, after two days of testimony before Chief U.S. District Court Judge L. Scott Coogler. Hamler was convicted of conspiracy to make a false statement during the purchase of a firearm, making a false statement during the purchase of a firearm, and sale or transfer to a prohibited person. Hamler was remanded into the custody of the U.S. Marshal. Hamler’s sentencing is set for May 23, 2023.
“The straw purchase of a firearm is felonious conduct and a felony conviction ensures that those who commit this crime can no longer purchase firearms for others,” said U.S. Attorney Escalona. “I commend the work of our federal, state, and local law enforcement partners to remove guns from the hands of prohibited persons.”
“A person violates federal law the moment that they purchase and transfer a firearm to any individual who cannot legally possess them,” said SAC Watson. “The ATF is committed to working with our local, state, and federal partners to investigate and prosecute these “straw purchasers” in conjunction with the individuals who receive these firearms and use them to commit violent criminal acts.”
According to evidence presented at trial, on April 20, 2022, Hamler – the straw purchaser – purchased a Glock 9mm pistol from a licensed firearms dealer, Guns and Ammo, LLC, located in Tuscaloosa. Hamler falsified documents by specifically stating that she was the actual buyer when in fact she was buying the firearm for another person who was prohibited from possessing a firearm.
The maximum penalty for conspiracy is 5 years in prison. The maximum penalty for making a false statement during the purchase of a firearm and for sale or transfer of a firearm to a prohibited person is 10 years in prison.
The ATF investigated the case along with the West Alabama Narcotics Task Force. Assistant U.S. Attorneys Daniel S. McBrayer, Brad Felton, and Darius Greene are prosecuting the case.
Tulare County Man Pleads Guilty to Conspiring to Distribute 6 Pounds of MethamphetamineRead the Press Release
FRESNO, Calif. — Rene Guadalupe Quintero Meza, 38, of Strathmore, pleaded guilty today to conspiracy to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between Oct. 25, 2019, and Jan. 24, 2020, Meza conspired with co-defendant Basilio Chavez Jr., 44, of Porterville, and others, to distribute methamphetamine. A law enforcement source negotiated to buy a pound of methamphetamine from Meza and Chavez delivered the methamphetamine. A subsequent search of a residence associated with Meza recovered an additional 6 pounds of methamphetamine.
This case was the product of an investigation by the Drug Enforcement Administration. Assistant U.S. Attorney Antonio J. Pataca is prosecuting the case.
A jury trial for Chavez is scheduled for July 11, 2023. The charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Meza is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on April 10, 2023. Meza 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.
Tucumcari man facing federal child exploitation chargesRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced that Joseph Wayne Gadman was charged with attempted coercion and enticement of a minor. Gadman, 40, of Tucumcari, New Mexico, appeared in federal court on Jan. 19 for a detention hearing and will remain in custody pending trial, which has not been scheduled.
According to a criminal complaint, on Jan. 4, Gadman allegedly used a foreign fetish website called Fetlife to contact a user who, unbeknownst to Gadman, was an undercover agent of the FBI. Under the username Gadmanj40, Gadman allegedly indicated that he was interested in the undercover agent’s interests. Believing that the user with whom he was communicating had children, Gadman allegedly arranged to meet the undercover agent’s “family” for the purposes of engaging in sexual acts with two minors – a 12-year-old and an 8-year-old. On Jan. 13, Gadman travelled from Tucumcari to Albuquerque, where he was arrested. At the time of his arrest, Gadman was in possession of $60 to pay the “mother,” as arranged, and had KitKat bars and condoms in his vehicle for the “children.”
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Gadman faces a mandatory minimum of 10 years and up to life in prison.
The FBI Albuquerque Field Office investigated this case as part of the New Mexico Internet Crimes Against Children (ICAC) Task Force. The ICAC Task Force Program is a nation-wide network of task forces including over 90 federal, state, local and tribal law enforcement agencies in New Mexico dedicated to investigating, prosecuting and developing effective responses to Internet crimes against children.
Assistant United States Attorney Jaymie L. Roybal is prosecuting the case as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
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Three Members of Jersey City Gang Charged for Roles in Drug Distribution Conspiracy and Related Firearms OffensesRead the Press Release
NEWARK, N.J. – Three members of a Jersey City street gang were charged today for their roles in a cocaine distribution organization, as well as for firearms violations, U.S. Attorney Philip Sellinger announced.
Rodney Broadway, aka “Banks,” 31; Parish George, aka “P Money,” 31; and Dejahn Ingram, aka “Fresh,” 32, all of Jersey City, New Jersey, are each charged by complaint with one count of conspiracy to distribute 500 grams or more of cocaine. George and Ingram are charged with unlawful possession of firearms as convicted felons, and Broadway is charged with unlawful possession of ammunition as a convicted felon. Broadway and George are also charged with possession with intent to distribute cocaine. All three defendants appeared today before U.S. Magistrate Judge André M. Espinosa in Newark federal court and were detained.
According to the documents filed in this case and statements made in court:
The three defendants are associated with a neighborhood street gang that operates in and around the Salem Lafayette Apartments in Jersey City. At the time of their arrests on Jan.19, 2023, George and Ingram each possessed a loaded firearm. Search warrants executed at multiple residences associated with Broadway, George, and Ingram revealed a significant quantity of cocaine, hundreds of rounds of ammunition, and other paraphernalia.
The defendants each face a mandatory minimum term of five years in prison and a maximum term of 40 years in prison.
U.S. Attorney Sellinger credited special agents of HSI Newark, under the leadership of Special Agent in Charge Ricky J. Patel, and investigators the Jersey City Police Department, under the direction of Director James Shea, with the investigation leading to the charges. He also thanked the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives under the direction of Acting Special Agent in Charge Bryan Miller, special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy, for their assistance.
This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City. As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, the U.S. Marshals, the Jersey City Police Department, the Hudson County Prosecutor’s Office, the Hudson County Sheriff’s Office, New Jersey State Parole, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.
The government is represented by Assistant U.S. Attorney Dong Joo Lee of the Office’s OCDETF/Narcotics Unit.
The charges and allegations contained in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Three Additional Individuals Sentenced for Participating in $10 Million Multi-State Bank Fraud ConspiracyRead the Press Release
TRENTON, N.J. – Two Michigan men and an Ohio man were sentenced for their roles in a large-scale conspiracy to commit bank fraud in several states, including New Jersey, New York, Pennsylvania, Maryland, Ohio, Virginia, and Michigan, U.S. Attorney Philip R. Sellinger announced today.
Syed Abbas, 33, of Westerville, Ohio, was sentenced by videoconference on Jan. 19, 2023, to 16 months in prison. Rana Sharif, 39, of Dearborn Heights, Michigan, and Awaise Dar, 35, of Woodbridge, Virginia, were sentenced by videoconference on Jan. 16, 2023 and Jan. 17, 2023, respectively, to 20 months each in prison. All three individuals previously pleaded guilty before Chief U.S. District Judge Freda L. Wolfson to informations that charged them with conspiracy to commit bank fraud. Judge Wolfson imposed the sentences.
According to documents filed in this case and statements made in court:
From 2018 through April 2020, Abbas, Sharif, Dar, and others conspired to defraud several major banks and electronic merchant processors. The defendants established bank accounts associated with sham entities that had no legitimate purpose and then issued checks payable to other shell companies associated with the criminal organization, knowing that the payor accounts had insufficient funds. The conspirators also conducted numerous fraudulent credit card and debit card transactions between shell companies to credit payee accounts and fraudulently overdraw payor accounts. Members of the conspiracy also used these shell companies to execute temporary refund credits, commonly referred to as “charge-backs,” to checking accounts associated with the criminal organization, where no prior legitimate transaction had occurred.
The conspirators withdrew the “existing” funds (through ATMs or bank tellers) that banks and or merchant processors had credited to the payee bank accounts at the time of the fraudulent transaction. Because the conspirators withdrew the credited funds from the payee accounts before the banks could recognize the fraudulent transactions, the banks and merchant processors were left with substantial losses.
Law enforcement officials identified approximately 200 bank accounts and 75 merchant credit card processing accounts used to facilitate the conspiracy’s fraudulent schemes. The conspirators’ unlawful activities attempted to cause a $10 million loss on financial institutions and did in fact cause a loss of approximately $3.5 million.
In addition to the prison term, Chief Judge Wolfson sentenced each defendant to three years of supervised release. Chief Judge Wolfson also ordered each defendant to pay restitution. Abbas was ordered to pay restitution in the amount of $530,523. Sharif was ordered to pay restitution in the amount of $2.38 million. Dar was ordered to pay restitution in the amount of $2.42 million.
Abbas, Sharif, and Dar are among the nine individuals that have been sentenced in the District of New Jersey as part of the criminal scheme
U.S. Attorney Sellinger credited special agents of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero, Philadelphia Division; the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel in Newark; Social Security Administration, Office of Inspector General, under the direction of Special Agent in Charge Sharon MacDermott; and special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins, with the investigation leading to the sentencings.
The government is represented by Assistant U.S. Attorney Ray Mateo of the U.S. Attorney’s Office, Opioid Abuse Prevention and Enforcement Unit in Newark.
Texas Man Pleads Guilty to Possession with Intent to Distribute MethamphetamineRead the Press Release
Gulfport, Miss. – A Texas man pled guilty to possession with intent to distribute methamphetamine, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Brad L. Byerley of the Drug Enforcement Administration.
Miguel Mendoza, 33, of Elgin, Texas, pled guilty on January 17, 2023, in U.S. District Court in Gulfport.
According to court records, on Monday, October 17, 2022, Harrison County Sheriff’s Deputies conducted a traffic stop on Interstate 10 East in Pass Christian, Mississippi. Mendoza was the driver and sole occupant of the vehicle. An extensive search of the vehicle revealed a pressure activated access panel for two improvised compartments on each side of the vehicle’s drive shaft. The driver side compartment contained (2) cellophane wrapped packages containing 2.5 kilograms of cocaine. The passenger side compartment contained (2) plastic and aluminum foil wrapped packages containing 1 kilogram of methamphetamine. Tools were located inside the vehicle that were readily available to raise the vehicle and gain access to the compartment.
Mendoza will be sentenced on April 13, 2023, and faces a minimum of 10 years to life in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the Drug Enforcement Administration.
The case was prosecuted by Assistant U.S. Attorney Erica Rose.
Surprise Man Convicted of Numerous Crimes, Including False Claims to the IRSRead the Press Release
PHOENIX, Ariz. – Anthony Henry Williams, 52, of Surprise, Arizona, was found guilty on January 11, 2023, by a federal jury of one count of Conspiracy, seven counts of False Claims to the IRS, eight counts of Money Laundering, and one count of Mail Fraud. Sentencing is scheduled for March 27, 2023, before United States District Judge Michael T. Liburdi.
Evidence introduced at trial established that, in 2018 and 2019, Williams submitted seven false tax returns to the Internal Revenue Service (IRS) claiming over $3 million in owed refunds. The IRS processed one of these returns that resulted in an unwarranted $600,000 refund to Williams. The IRS advised him that the return was fraudulent, and that Williams needed to return the money. Williams failed to do so; instead, he purchased two luxury vehicles and a home, among other expenditures.
Internal Revenue Service Criminal Investigation conducted the investigation in this case. Assistant United States Attorneys Kevin M. Rapp and Kristen Brook, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-21-00722-PHX-MLT
RELEASE NUMBER: 2023-007_Williams# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Spencer Man to Federal Prison for Illegal Possession of a FirearmRead the Press Release
Joe Ripka, 35, from Spencer, Iowa, was sentenced January 20, 2023, to over one year in federal prison. On August 1, 2022, Ripka pled guilty to being a prohibited person in possession of a firearm. Ripka was previously convicted of Failure to Affix Drug Stamp, in the Iowa District Court for Emmet County, on October 23, 2017. This conviction prohibits Ripka from possessing a firearm.
Evidence at the plea and sentencing hearings showed that on December 22, 2021, law enforcement stopped the vehicle Ripka was driving in Larrabee, Iowa, for driving without license plates. During the stop, Ripka displayed signs of impairment. A police K9 was deployed on the exterior of the car and indicated the presence of controlled substances within the vehicle, at which time Ripka stated there was a firearm in the car and acknowledged he was a felon. Law enforcement uncovered a loaded .380 handgun in the driver’s door. Later, upon inspection of the officer’s vehicle near where Ripka had been seated during the stop, the arresting officer located a pack of cigarettes wedged between the seats which contained 1 gram of methamphetamine.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Ripka was sentenced to 12 months’ and 1 day imprisonment and must serve a 3-year term of supervised release following imprisonment. There is no parole in the federal system. Ripka remains in custody of the United States Marshal until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by the Cherokee County Sheriff’s Office, Cherokee Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4041.
Follow us on Twitter @USAO_NDIA.
Sioux Falls Man Sentenced for Attempted Enticement of a Minor Using the InternetRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Sioux Falls, South Dakota, man convicted of Attempted Enticement of a Minor Using the Internet. The sentencing took place on January 19, 2023.
Luke John Schauer, age 29, was sentenced to 10 years in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Schauer was indicted by a federal grand jury in February of 2022. He pled guilty on September 13, 2022.
The conviction stemmed from an incident on January 18, 2022, when Schauer attempted to coerce an undercover agent posing as a 12-year-old female, to meet and engage in sexually explicit conduct. Using his account on KIK Messenger, Schauer made plans to meet the undercover agent posing as a 12-year-old on February 8, 2022. The text messages on KIK involved interstate commerce because Schauer was in South Dakota and the undercover agent was in Pennsylvania. Schauer was employed as a police officer with the Sioux Falls Police Department at the time of the offense. He was immediately relieved of his duties upon his arrest and his employment terminated.
This case was investigated by the FBI and the South Dakota Division of Criminal Investigation, with cooperation from the Sioux Falls Police Department. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Schauer was immediately remanded to the custody of the U.S. Marshals Service.
Sioux Falls Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Sioux Falls, South Dakota, man for Failure to Register as a Sex Offender.
Cyrus Black Spotted Horse, a/k/a Cyrus Menard, age 41, was indicted in January of 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 13, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about between November 8, 2022, and December 15, 2022, in the District of South Dakota, Cyrus Black Spotted Horse, a/k/a Cyrus Menard, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under federal law, knowingly failed to register and update his registration.
The charge is merely an accusation and Black Spotted Horse is presumed innocent until and unless proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
The investigation is being conducted by the U.S. Marshals Service and Sioux Falls Police Department. Assistant U.S. Attorney Abby Roesler is prosecuting the case.
Black Spotted Horse was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for March 14, 2023.
Sioux City, Iowa Man Sentenced to 11 Years in Federal Prison for Possessing Child PornographyRead the Press Release
Chad Moyle, 37, from Sioux City, Iowa, was sentenced January 18, 2023, to 11 years in federal prison after pleading guilty to possession of child pornography on September 7, 2022. Moyle was additionally ordered to pay $6,000 in restitution to the victims of the sexually exploitative materials he possessed.
At the hearing, evidence showed, and Moyle admitted to possessing over 1,600 images of child pornography from December 2018, through February 2019. Moyle primarily utilized a smart phone and the instant messaging mobile app Kik to receive and possess the images depicting minors engaged in sexually explicit conduct. These images included depictions involving prepubescent minors or minors who had not attained 12 years of age.
Moyle was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand to 132 months’ imprisonment. He must also serve a term of supervised release after the prison term of at least 5 years, up to life. There is no parole in the federal system. Moyle remains in custody of the United States Marshal’s until he can be transported to a federal prison.
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.”
The case is being prosecuted by Assistant United States Attorney Kraig R. Hamit and was investigated by the Federal Bureau of Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4021. Follow us on Twitter @USAO_NDIA.
Seattle man who used stolen identities to seek nearly $2 million in COVID-19 benefits pleads guilty to wire fraud and aggravated identity theftRead the Press Release
Seattle – A former Seattle resident who defrauded federal COVID-19 benefit programs of more than $1 million pleaded guilty today in U.S. District Court in Seattle, announced U.S. Attorney Nick Brown. Bryan Alan Sparks, 42, was indicted for the fraud scheme in November 2021. Today Sparks pleaded guilty to wire fraud and aggravated identity theft. His coconspirator Autumn Gail Luna, 23, pleaded guilty in December 2022. Sparks is scheduled for sentencing by U.S. District Judge James L. Robart on April 18, 2023.
According to records filed in the case, from March 2020 until at least January 2021, Sparks and Luna used stolen personal information of more than 50 Washington residents and businesses to apply for Economic Injury Disaster Loans (EIDL) from the Small Business Administration (SBA) and unemployment benefits from the Washington Employment Security Department (ESD). The pair obtained approximately $521,900 from SBA and $519,700 from ESD. Sparks and Luna opened fraudulent bank accounts to receive the benefits and also had unemployment benefit debit cards mailed to a variety of addresses in the Seattle area where they could retrieve them.
Specifically, Sparks and Luna submitted at least 29 fraudulent loan applications to the Small Business Administration relief program, using the stolen identities of Washington residents and other real people. The applications sought approximately $1.47 million in aid intended to support small businesses, and the pair successfully obtained $521,900. Between March 2020 and January 2021, Sparks and Luna used the stolen identities of more than 50 people to claim approximately $519,700 in unemployment benefits. In all Sparks and Luna attempted to obtain at least $1.98 million in federally funded payments.
Sparks and Luna used the identities of real people and, in some instances, actual small businesses to open bank and credit accounts. The victims suffered significant harm. One person saw his credit score drop 200 points because of the seven credit and bank accounts the pair opened in his name.
In September 2020, law enforcement linked Sparks and Luna to lock boxes seized in Portland, Oregon. When the safes were searched, officers seized more than $65,000 in cash and a number of debit cards. In the plea agreement, Sparks admits that the cash and prepaid debit cards are all proceeds of the fraud scheme. The cash and debit cards are being forfeited to the government. In all, Sparks agrees to pay $1,041,661 in restitution to the government programs.
Under the terms of the plea agreement, prosecutors will recommend no more than 100 months in prison. The defense will recommend no less than five years in prison (60 months). U.S. District Judge James L. Robart is not bound by the recommendation and can impose any sentence allowed by statute.
Wire fraud that relates to a presidentially declared major disaster or emergency is punishable by up to 30 years in prison. Aggravated identity theft is punishable by a mandatory minimum two years in prison to run consecutive to any other sentence imposed in the case.
The investigation of this case is led by the Social Security Administration, Office of the Inspector General (SSA-OIG) and U.S. Postal Inspection Service, with partners: Colusa County Sheriff’s Office (CA); Washington State Employment Security Department; Small Business Administration, Office of the Inspector General; Amtrak Police Department (D.C.); FBI (Sacramento, CA office); FBI Cyber Task Force (D.C.); Washington State Department of Licensing, Driver and Vehicle Investigations; and the Department of Labor, Office of the Inspector General.
The case is being prosecuted by Assistant United States Attorneys Cindy Chang and Seth Wilkinson.
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.
Rockford Man Sentenced to Nearly Six Years in Prison for Illegal Firearm PossessionRead the Press Release
ROCKFORD — A Rockford man has been sentenced to nearly six years in federal prison for illegally possessing a firearm as a previously convicted felon.
U.S. District Judge Iain D. Johnston on Thursday sentenced BRANDON L. DISHMAN, 33, to 70 months in prison. Dishman pleaded guilty last year to a federal charge of illegal possession of a firearm.
On Dec. 21, 2020, Dishman possessed a loaded .45-caliber pistol while riding in a vehicle. The Rockford Police Department attempted to conduct a traffic stop of the vehicle. As it slowed down and stopped, Dishman exited the vehicle and fled on foot in a residential neighborhood. Dishman, ignoring officers’ commands to stop, dropped the gun as he ran. After a brief chase, Dishman was apprehended by the police and taken into custody. The loaded pistol was recovered in the front yard of a residence in the neighborhood.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey L. Matthews, Acting Special Agent-in-Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives; and Carla Redd, Chief of the Rockford Police Department. The government was represented by Assistant U.S. Attorney Michael Beckman.
Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods (PSN) – the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Rochester Drug Trafficker Sentenced to 16.5 Years in Prison for Possession with Intent to Distribute Heroin and MethamphetamineRead the Press Release
ST. PAUL, Minn. – A Rochester man has been sentenced to 198 months in prison followed by 10 years of supervised release for possession with intent to distribute heroin and methamphetamine, announced United States Attorney Andrew M. Luger.
According to court documents, Erick Fontain Thomas, 41, was a large-scale heroin and methamphetamine dealer in the Rochester area, and he used numerous guns to protect his drug operation. On August 25, 2020, law enforcement officers executed a search warrant on Thomas’s Rochester residence. During the search, officers found 4.135 grams of heroin, 1.467 kilograms of methamphetamine, four loaded handguns, a loaded AR-15 style rifle, assorted ammunition and firearms accessories, drug cutting agents, digital scales, and a brick press. Officers also went to a local FedEx Office in Rochester and seized a package that Thomas had directed another individual to send to him at a California address. The package contained $68,740 in cash drug proceeds. On November 12, 2020, officers arrested Thomas in Rochester.
Thomas was sentenced today in U.S. District Court before Judge Wilhelmina M. Wright. On August 23, 2022, Thomas pleaded guilty to one count of possession with the intent to distribute heroin and methamphetamine.
This case was the result of an investigation conducted by the DEA and the Rochester Police Department.
Assistant U.S. Attorney Joseph S. Teirab prosecuted the case.
Phone Scam Investigation Results in Forfeiture of Nearly $3 Million in CryptocurrencyRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Jean Pierre Njock, Acting Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that an investigation of a fraud scheme targeting vulnerable victims has resulted in the forfeiture of approximately 151 Bitcoins, as well as other digital assets.
According to court documents, in approximately October 2020, overseas individuals began targeting vulnerable victims, including first generation U.S. citizens and elderly persons, through phone calls by pretending to be members of U.S. law enforcement agencies and telling the victims that their identity had been compromised. The overseas individuals used computer programs to make it appear as if their phone calls were coming from legitimate government sources. After gaining the victims’ trust, the overseas individuals requested transfers of money for “safekeeping” with the promise that the victims would receive their money, plus interest, when the perpetrators of the nonexistent identity fraud were captured. Once the overseas individuals had access to the victims’ money, they moved the money through multiple bank accounts and converted the money to digital currency in the form of Bitcoin and other cryptocurrencies.
Law enforcement investigators traced the victims’ money through the various accounts and identified a digital wallet holding Bitcoin and other cryptocurrencies that had been purchased with the victims’ money. The U.S. Attorney’s Office applied for and received a civil asset forfeiture seizure warrant for the digital wallet and, following the seizure, filed a civil asset forfeiture complaint against the digital assets, which resulted in an order of forfeiture from the U.S. District Court of the District of Connecticut.
The U.S. Attorney’s Office used the civil asset forfeiture procedure because the digital assets constituted the proceeds of wire fraud. Although law enforcement continues to investigate the overseas individuals behind this scam, those individuals remain at large. Civil asset forfeiture allowed the government to recover the victims’ money while the investigation is ongoing.
“This office and our law enforcement partners are prepared to use all tools available to investigate, disrupt, and prosecute fraud schemes, especially scams that target vulnerable populations," said U.S. Attorney Avery. "We will continue to be at the forefront of investigating and seizing digital assets such as cryptocurrency when those assets are linked to criminal behavior. Individuals committing crimes will not be able to hide the proceeds of those crimes digitally or elsewhere."
“No matter which cyber tools and methods criminal actors create to defraud members of the public, we at the FBI, U.S. Marshals and the Secret Service dedicate all resources to identifying those responsible and bringing them to justice no matter where they are in the world,” said FBI Acting Special Agent in Charge Njock. “We encourage everyone to conduct due diligence to verify authenticity of who they are dealing with when conducting business online to avoid being a victim of scams.”
This matter is being investigated by the Federal Bureau of Investigation, the U.S. Secret Service and the U.S. Marshals Service. This case was prosecuted by Assistant U.S. Attorney David C. Nelson.
The docket number associated with this case is 3:22-cv-01308 (JCH).
Members of the public seeking to confirm they have been contacted by an actual government employee are encouraged to call the local division of the claimed government entity and ask to be connected directly with the officer or agent they were contacted by. Victims of this scam are encouraged to file a report with their local law enforcement agency and the FBI’s Internet Crime Complaint Center (IC3) at ic3.gov.
Overland Park Woman Sentenced for Bank FraudRead the Press Release
KANSAS CITY, KAN. – A Kansas woman was sentenced to 33 months in prison for bank fraud.According to court documents, Stephenie Stites, 52, of Overland Park worked as the accounts payable clerk for Norbrook Inc. In 2020, Norbrook noticed accounting discrepancies and when confronted, Stites admitted to making approximately $72,000 in unauthorized charges on the company’s credit card. A full review showed she’d embezzled more than $712,000 from Norbrook by creating two fake companies and manipulating invoices. As indicated in her plea agreement, Stites spent the stolen money to pay for personal expenses such as home and vehicle expenses, travel, hotels, real estate, and other disbursements.
A federal judge sentenced Stites to 33 months in prison to be followed by four years of supervised release and ordered her to pay $712,890.27 in restitution to the victim company.
Charles Dayoub, Special Agent in Charge of the Kansas City Office of the FBI said, “Stites perpetuated a scheme, misappropriating funds to fake companies and misusing company credit cards for personal gain. Her actions resulted in the embezzlement of over $700,000 and violated the trust placed in her by her employer. This sentencing demonstrates the FBI’s commitment to investigate financial fraud and to hold those individuals accountable for their actions.”
The Federal Bureau of Investigation (FBI) investigated this case.
Assistant U.S. Attorney Ryan J. Huschka prosecuted the case.
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Omaha Man Sentenced to Four Years for Methamphetamine DistributionRead the Press Release
United States Attorney Steven Russell announced that Christopher Hatcher, 45, of Omaha, Nebraska, was sentenced today in federal court in Omaha for distribution of methamphetamine. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Hatcher to 48 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a four-year term of supervised release.
On April 14, 2020, Hatcher sold methamphetamine to a cooperating witness working with law enforcement at an Omaha apartment. The substance was submitted to the crime laboratory for testing, which determined a net weight of 141.7 grams and a purity of 95 percent.
This case was investigated by the Omaha Police Department and the Bureau of Alcohol, Tobacco, and Firearms.
Oakland Resident Sentenced to Three Years for Selling Fentanyl and Methamphetamine in San Francisco’s TenderloinRead the Press Release
SAN FRANCISCO – Alex Murillo was sentenced today to 36 months in federal prison for selling fentanyl and methamphetamine in San Francisco’s Tenderloin District, announced United States Attorney Stephanie M. Hinds and Drug Enforcement Administration (DEA) Acting Special Agent in Charge Bob P. Beris. The sentence was handed down by Senior United States District Judge Susan Illston.
Murillo, 25, a resident of Oakland, was charged by an eight count federal indictment on July 21, 2022. According to the charges and other documents filed by the government, Murillo sold drugs on the street in the Tenderloin on five occasions in the spring of 2022. On April 7, 2022, Murillo met two undercover police officers near 8th and Market Streets in the Tenderloin and sold the officers 5 grams of fentanyl for $100 on the San Francisco Civic Center BART staircase. On March 23, 2022, and on April 21, 2022, Murillo sold $40 of yellow fentanyl and $750 of pink fentanyl, respectively, to undercover officers in the Tenderloin. On May 12, 2022, Murillo sold approximately one ounce of fentanyl along with two ounces of methamphetamine to an undercover police officer for $800, again in the Tenderloin. On June 8, 2022, Murillo communicated again with one of the undercover police officers, met that officer again near the Civic Center BART platform, and sold the officer two ounces of fentanyl and three ounces of methamphetamine for $1,400.
Law enforcement officers arrested Murillo on June 21, 2022, outside of his apartment in Oakland and seized nearly four ounces of methamphetamine and 139 grams of fentanyl from his backpack.
In addition to the 36 month sentence, Murillo was sentenced to a four year sentence of supervision following release from prison. Murillo was in custody at his sentencing hearing and begins serving his sentence immediately.
Assistant U.S. Attorney Christa Hall is prosecuting the case, with the assistance of Lance Libatique. The prosecution is the result of an investigation by DEA and the San Francisco Police Department.
One Pill Can Kill: Avoid pills bought on the street because One Pill Can Kill. Fentanyl is a highly potent opioid that drug dealers dilute with cutting agents to create counterfeit pills purporting to be Oxycodone, Percocet, Xanax, and other drugs. Fentanyl is used because it is cheap. However, very small variations in the quantity or quality of fentanyl in counterfeit pills create huge variations in their potency, and the pills can kill. Fentanyl is now the leading cause of drug overdose deaths in the United States. Counterfeit, fentanyl-laced pills are usually shaped and colored to look like pills sold at pharmacies. For example, counterfeit pills known as “M30s” imitate Oxycodone, but when sold on the street they routinely contain fentanyl. These are usually round tablets and often light blue in color, though they can come in a rainbow of colors, and they have “M” and “30” imprinted on opposite sides of each pill. Do not take these or any other pills bought on the street – they can be poisonous, and you won’t know until it’s too late.
North Korean National Sentenced for Money Laundering OffensesRead the Press Release
DPRK Businessman Accessed the U.S. Financial System and Deceived U.S. Banks to Circumvent Sanctions Against North Korea
WASHINGTON – Mun Chol Myong (“Mun”), 55, a national of the Democratic People’s Republic of Korea (DPRK), was sentenced today to time served of 45 months in prison for multiple money laundering offenses in the U.S. District Court for the District of Columbia. Mun laundered funds through the U.S. financial system as part of a scheme to raise capital and acquire goods for North Korea in violation of U.S. sanctions. Mun is the first ever DPRK national to be extradited to the United States. He now faces deportation proceedings.
The sentence was announced by United States Attorney Matthew M. Graves and FBI Special Agent in Charge Alvin M. Winston, Sr., of the Minneapolis Field Office.
The indictment alleged that between April 2013 and November 2018, Mun and others conspired to transmit funds through the United States for the purpose of promoting bank fraud. Specifically, the indictment alleged that Mun and his co-conspirators used a network of front companies and falsified transaction records to conceal that the payments benefitted sanctioned North Korean entities and thereby deceived U.S. correspondent banks into executing correspondent banking transactions that they would otherwise have rejected. The indictment identifies more than $1.2 million in illicit transactions. The indictment further alleged that Mun was affiliated with the DPRK’s primary intelligence organization, the Reconnaissance General Bureau (RGB), which is the subject of U.S. and U.N. sanctions.
Mun pleaded guilty to all counts of the indictment, including one count of money laundering conspiracy, and four counts of money laundering, pursuant to an “Alford” plea, over the objection of the United States. Under the Alford plea, Mun pleaded guilty and avoided a trial but did not admit to the facts and conduct alleged in the indictment.
“This case is significant because the defendant was not merely securing alcohol, tobacco, and other commodities for North Korea, but also providing income streams needed to prop up the regime and finance its nefarious activities,” said U.S. Attorney Graves. “Those seeking to access the U.S. financial system cannot use front companies, fake invoices, third party payments, and other means to deceive U.S. financial institutions and hide the involvement of sanctioned individuals and entities. With our law enforcement partners, the U.S. Attorney’s Office for the District of Columbia is determined to disrupt North Korea’s use of the U.S. financial system in its attempts to undermine our national security.”
“The FBI prioritizes investigations involving the illegal export of controlled U.S. technology and the use of the U.S. financial system to purchase prohibited luxury goods like liquor and tobacco,” said Special Agent in Charge Winston. “We appreciate the assistance of our international partners who helped dismantle this North Korean revenue-generation scheme and bring the defendant to justice.”
This investigation was conducted by the FBI’s Minneapolis Field Office and coordinated by the FBI’s Counterintelligence Division. The Department of Justice would also like to thank the U.S. Indo-Pacific Command and the U.S. Marshals Service (USMS) Investigative Operations Division (IOD) for providing analytical support during the investigation.
Assistant U.S. Attorney Tejpal S. Chawla and Special Assistant U.S. Attorney Michael P. Grady for the District of Columbia, and Trial Attorney David C. Recker of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case, with support from Paralegal Specialist Brian Rickers and Legal Assistant Jessica McCormick. The Justice Department’s Office of International Affairs provided substantial assistance in securing Mun’s arrest and extradition. The FBI’s Washington Field Office also provided substantial support during the extradition and investigation.
North Korean National Sentenced for Money Laundering OffensesRead the Press Release
Mun Chol Myong (Mun), 55, a national of the Democratic People’s Republic of Korea (DPRK), was sentenced today in the U.S. District Court for the District of Columbia to time served of 45 months’ imprisonment for multiple money laundering offenses. Mun laundered funds through the U.S. financial system as part of a scheme to raise capital and acquire goods for North Korea in violation of U.S. sanctions. Mun is the first ever North Korean national to be extradited to the United States and is subject to deportation following the successful completion of his sentence.
The indictment alleged that between April 2013 and November 2018, Mun and others conspired to transmit funds through the United States for the purpose of promoting bank fraud. Specifically, the indictment alleges that Mun and his co-conspirators used a network of front companies and falsified transaction records to conceal that the payments benefitted sanctioned North Korean entities and thereby deceived U.S. correspondent banks into executing correspondent banking transactions that they would otherwise have rejected. The indictment identifies more than $1.2 million in illicit transactions.
The indictment further alleged that Mun was affiliated with the DPRK’s primary intelligence organization, the Reconnaissance General Bureau, which is the subject of U.S. and U.N. sanctions. Mun pleaded guilty to all counts of the indictment, including one count of money laundering conspiracy, and four counts of money laundering, pursuant to an “Alford” plea, over the objection of the United States. Under the Alford plea, Mun pleaded guilty and avoided a trial but did not admit to the facts and conduct alleged in the indictment.
This investigation was conducted by the FBI’s Minneapolis Field Office and coordinated by the FBI’s Counterintelligence Division. The Department of Justice would also like to thank the U.S. Indo-Pacific Command and the U.S. Marshals Service Investigative Operations Division for providing analytical support during the investigation.
Assistant U.S. Attorney Tejpal S. Chawla and Special Assistant U.S. Attorney Michael P. Grady for the District of Columbia, and Trial Attorney David C. Recker of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case, with support from Paralegal Specialist Brian Rickers and Legal Assistant Jessica McCormick. The Justice Department’s Office of International Affairs provided substantial assistance in securing Mun’s arrest and extradition. The FBI’s Washington Field Office also provided substantial support during the extradition and investigation.
North Carolina Man Guilty of Charges Related to the Killing of 3 Connecticut Men in 2015Read the Press Release
United States Attorney Vanessa Roberts Avery, New Haven State’s Attorney John P. Doyle, Jr., Acting Special Agent in Charge Jean Pierre Njock of the New Haven Division of the Federal Bureau of Investigation, Hamden Police Acting Chief Timothy F. Wydra and New Haven Police Chief Karl Jacobson today announced that a federal jury in Bridgeport has found EDWARD MICHAEL PARKS, also known as “Lee” and “Trouble,” 36, of Raleigh, North Carolina, guilty of charges related to the kidnapping and murdering of two individuals in Hamden, and the killing of a third man in New Haven to stop him from notifying law enforcement.
The trial before U.S. District Judge Kari A. Dooley began on January 9. On January 19, the jury returned verdicts of guilty on all counts of an indictment charging Parks with two counts of kidnapping resulting in death, and one count of witness tampering by killing. At sentencing, Parks faces a mandatory term of imprisonment of life.
According to the evidence presented during the trial, on November 16, 2015, Parks was in an apartment on Shelton Avenue in New Haven to conduct an illegal sale of firearms. Damian Connor and Tamar Lawrence were also present in the apartment. When another individual left the apartment with firearms that he had not paid for, Parks, who was armed, held Connor and Lawrence against their will. Parks collected money and valuables from Connor and Lawrence, and then forced them to travel in Connor’s car to Hamden where Connor said he could get more money. They were followed in another vehicle by Devante Williams and another individual. After the vehicles arrived at 676 Mix Avenue in Hamden, Parks shot and killed Connor and Lawrence. Parks then left the scene with Williams and others in the second vehicle and returned to New Haven.
When Parks appeared to believe that Williams was anxious about the murders of Connor and Lawrence, Parks shot and killed Williams in the area of Sherman Court in New Haven.
Parks has been incarcerated in federal custody following an unrelated conviction for drug and firearm offenses in the Eastern District of North Carolina.
“I thank our partners in the FBI, Hamden Police Department, New Haven Police Department and New Haven State’s Attorney’s Office for their collaborative efforts in bringing a person responsible for three cold-blooded killings to justice,” said U.S. Attorney Avery. “The Justice Department has prioritized the disruption of illegal gun trafficking across the United States, and this prosecution serves as yet another reminder of the scourge of illegal guns and violence in our communities. The victims of this heinous crime, and their loved ones, are in my thoughts.”
“The New Haven State’s Attorney’s Office would like to thank the members of the jury for their service and for their careful consideration of the evidence in this case,” said New Haven State’s Attorney Doyle. “This verdict shows that strong partnerships between law enforcement are invaluable in the pursuit of justice for victims and their grieving families. We look forward to this continued collaboration as we strive every day to make our communities in greater New Haven safer.”
“A life of crime has resulted in a life sentence,” said Acting Special Agent in Charge Jean Pierre Njock. “It is our sincere hope that this verdict by the jury brings some closure and peace to the victims’ families in this case. The FBI extends its gratitude to all state, local and federal law enforcement and prosecutors who worked this case relentlessly for several years.”
“I hope this verdict gives the families of these victims some sense of peace and closure, said Hamden Acting Police Chief Wydra. “I would also like to thank and commend Hamden Sergeant Jomo Crawford, New Haven Assistant Chief Bertram Ettienne, the FBI Safe Street Violent Task Force, the Offices of the U.S. Attorney, New Haven State’s Attorney Office including now Chief State’s Attorney Pat Griffin and current New Haven State’s Attorney Jack Doyle, Raleigh, North Carolina Detective I.O. Smith, and so many other Law Enforcement partners who assisted. I would also like to thank the Hamden and New Haven communities who worked with law enforcement to provide valuable information pertaining to these three homicides. This case demonstrated that by successful collaboration at the highest level and working together we were able to get a violent individual off the streets.”
“I would like to thank our federal partners for the work on this case, “said New Haven Police Chief Jacobson. “It is crucial for the reduction of violent crime for us to work hand in hand with our federal partners and we are grateful for the collaborative efforts.”
This investigation has been conducted by the Federal Bureau of Investigation, the Hamden Police Department and New Haven Police Department.
The case is being prosecuted by Assistant U.S. Attorneys Nathaniel J. Gentile and A. Reed Durham, and Assistant State’s Attorney Seth Garbarsky, who has been cross-designated as a Special Assistant U.S. Attorney in this matter.
Newton Man Charged with Cocaine Distribution and Unlawfully Possessing Firearm and Ammunition as Convicted FelonRead the Press Release
BOSTON – A previously convicted felon residing in Newton has been charged with cocaine distribution and firearm offenses.
Shawn Craig, 37, of Newton, was charged with one count of possession with intent to distribute and distribution of cocaine and one count of possession of a firearm and ammunition as a convicted felon. He will appear in federal court in Boston on Jan. 23, 2023.
According to the charging documents, Craig coordinated three drug deals with an undercover agent between September and October 2022. It is alleged that Craig met with the undercover agent near his Newton residence on three separate occasions – Sept. 12, Oct. 20 and Oct. 26, 2022 – to conduct the deals, during which Craig provided cocaine to the undercover agent in exchange for cash. Prior to the third meeting, on Oct. 26, 2022, Craig allegedly sent an image of a firearm to the undercover agent and indicated that he could sell it to the agent. During the subsequent meeting, it is alleged that Craig provided the undercover agent with a firearm, ammunition and a quantity of cocaine.
At the time of the alleged conduct, Craig was on federal supervised release for a 2014 federal conviction for possessing a stolen firearm and possessing a firearm with an obliterated serial number. Craig was sentenced to seven years in prison and three years of supervised release in that case.
United States Attorney Rachael S. Rollins; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Middlesex District Attorney Marian Ryan; and Newton Police Chief John F Carmichael Jr. made the announcement today. Valuable assistance was provided by the U.S. Probation Office. Assistant U.S. Attorney Kaitlin R. O’Donnell of Rollins’ Organized Crime & Gang Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
New Orleans Woman Pleads Guilty to Theft of More Than $86,000 in Social Security FundsRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that DANIELLE COLEMAN, age 39, of New Orleans, Louisiana, pled guilty on January 19, 2023 before United States District Judge Carl J. Barbier to Theft of Government Funds, in violation of Title 18, United States Code, Section 641.
According to documents filed in federal court, COLEMAN’s grandmother was authorized to receive Social Security Administration (“SSA”) Title II – Retirement Survivor Insurance (RSI) Benefits up until her death which occurred on September 8, 2009. An investigation by special agents with the SSA, Office of Inspector General and United States Department of Treasury, Inspector General for Tax Administration, revealed COLEMAN was in possession of her late grandmother’s ATM card and began withdrawing money from her account after her death. COLEMAN used her late grandmother’s ATM card to pay for her own personal expenses knowing she was not entitled to those Social Security benefits. COLEMAN failed to notify the SSA of her grandmother’s death and took approximately $86,280.00 in SSI benefits from her account. An additional $1,200.00 of COVID-19 stimulus funds were erroneously deposited into COLEMAN’s grandmother’s account, and COLEMAN also used these funds for personal expenses.
COLEMAN faces a maximum penalty of ten (10) years imprisonment, followed by up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory $100 special assessment fee.
U.S. Attorney Evans praised the work of the Social Security Administration, Office of the Inspector General and the United States Department of Treasury, Inspector General for Tax Administration. The prosecution of this case is being handled by Assistant U.S. Attorneys Rachal Cassagne and Spiro Latsis.
New Orleans Man Sentenced on Federal Weapons ChargesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that defendant CHRISTOPHER SMITH, of New Orleans, Louisiana, was sentenced on January 17, 2023 by U.S. District Court Judge Jay C. Zainey to 87 months of imprisonment, 3 years of supervised release, and a mandatory $100 special assessment fee as to Count One of a one-count indictment.
Count One of the indictment charges SMITH with being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). On April 10, 2022, officers responded to a car crash on U.S. Highway.90 involving SMITH. Pursuant to a search warrant, investigators discovered SMITH to be in possession of three firearms, including one that was stolen.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U. S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Orleans Police Department. The case was prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime Unit of the U.S. Attorney’s Office.
New Orleans Man Sentenced on Drug and Weapons ChargesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that defendant RANDY FIELDS, of Orleans Parish, was sentenced on January 17, 2023 by U.S. District Court Judge Jay C. Zainey on four-counts of a four-count indictment to a combined total of 125 months imprisonment, 4 years of supervised release, and a $400 mandatory special assessment fee.
In Count 1 of the indictment, FIELDS is charged with possession with the intent to distribute 40 or more grams of fentanyl in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(B)(vi). In Count 2, FIELDS is charged with possessing a firearm in furtherance of a drug trafficking offense, in violation of Title 18, United States Code, Section 924(c)(1). In Count 3, FIELDS is charged with being a felon in possession of a firearm in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). Finally, in Count 4, FIELDS is charged with being in possession of a machine gun in violation of Title 18, United States Code, Sections 922(o) and 924(a)(2).
On March 31, 2021, the New Orleans Police Department responded to a shooting in the 1800 block of Touro Street in New Orleans, LA. Upon their arrival, officers discovered FIELDS suffering from multiple gunshot wounds. As officers attempted to render aid, they discovered a firearm in FIELDS’s back pants pocket. The firearm was equipped with a Glock-switch device, allowing it to be turned into a fully automatic weapon. Additionally, officers located approximately 100 grams of fentanyl in FIELDS’s shirt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U. S. Attorney Evans praised the work of the Federal Bureau of Investigation and the New Orleans Police Department. The case was prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime Unit of the U.S. Attorney’s Office.
New Orleans Man Pleads Guilty to Federal Gun and Drug OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that JAMAL SMITH, pled guilty to various violations of the Federal Gun Control and the Federal Controlled Substances Acts before the Honorable Judge Carl J. Barbier.
SMITH pled guilty to Count 1, charging him with possession with intent to distribute a quantity of marijuana, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(D). SMITH also pled guilty to Count 5, charging him with possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A). SMITH also pled guilty to Counts 3 and 6, charging him with possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g)(1).
SMITH faces a maximum sentence of 5 years imprisonment, up to a $250,000 fine, and up to 2 years of supervised release as to Count 1. As to Count 5, SMITH faces a mandatory minimum sentence of 5 years up to life imprisonment, which is to run consecutively to all other sentences, up to a $250,000 fine, and up to 5 years of supervised release. As to Counts 3 and 6, SMITH faces a maximum term of imprisonment of 10 years, up to a $250,000 fine, and up to 3 years of supervised release. SMITH must pay a mandatory special assessment fee of $100 for each count. SMITH’S sentencing is scheduled for April 27, 2023.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the New Orleans Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Elizabeth Privitera (Unit Chief), Inga Petrovich, and David Haller of the Violent Crime Unit.
Minatare Man Sentenced for Receiving Child PornographyRead the Press Release
United States Attorney Steven Russell announced that Richard Knott, Jr., 35, of Minatare, Nebraska, was sentenced today in Lincoln, Nebraska, by United States District Judge John M. Gerrard for possession of child pornography. Knott was sentenced to 150 months in prison and will also serve 10 years on supervised release. There is no parole in the federal system. Knott was also ordered to pay $4,000 to a fund designated for victims of this type of crime. After serving his prison sentence Knott will continue to be required to register as a sex offender.
This case began with an investigation regarding the sharing of child pornography on a specific foreign-based cloud storage website. The investigation primarily concerned two hyperlinks which contained folders and subfolders of child pornography primarily depicting infants and toddlers. The investigation reviewed user accounts which were accessing and downloading child pornography from these links. The IP address from one of the user accounts traced back to Knott. The subscriber information for the email address also came back to him.
On June 9, 2021, a federal search warrant was executed on Knott’s home. During the execution, two of Knott’s cellphones, a hard drive, and 5 laptop computers were seized. During the execution of the warrant, Knott agreed to be interviewed and he admitted that one year after he was released from prison for a prior child pornography crime, he began viewing and downloading child pornography again. Knott had previously been convicted in 2012 for possessing child pornography in Scotts Bluff County, Nebraska.
The forensic download and review of Knott’s cellphone and other devices were determined to contain approximately 33,000 images and 7,000 videos of child pornography.
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.
This case was investigated by the Federal Bureau of Investigation.
Memphis, Tennessee Man Sentenced to 15 Years in Prison for Firearms Offenses and Attempted Bank LarcenyRead the Press Release
OXFORD, Miss. – A Memphis, Tennessee man was sentenced today to 15 years in prison for his role in the burglary of a federally licensed firearms store and the attempted burglary of an automated teller machine in North Mississippi.
Court documents indicate that in June of 2020, Lederrius Brown, 27, and two other individuals broke into 2A Armaments, a Federal Firearms Licensee in New Albany, Mississippi, and stole over 20 firearms before leading law enforcement on a multi-county pursuit.
Brown and others also attempted to pry open an ATM that was part of First Byhalia Bank in Byhalia, Mississippi, resulting in over $20,000 worth of damage.
Brown is a prior convicted felon and pled guilty to the prohibited possession of the firearms taken from the business, along with a charge of attempted bank larceny.
Brown appeared for sentencing on these offenses in federal court in Oxford on Friday afternoon. U.S. District Judge Glen Davidson sentenced Brown to a total of 180 months in prison to be followed by three years of supervised release. Brown was also ordered to pay $39,500 worth of restitution to the victims.
“Our office will continue to do everything in our power to keep guns out of the hands of criminals, and to hold accountable those who illegally possess and use them,” said U.S. Attorney Clay Joyner. “Hopefully this sentence will serve as a deterrent to those who would steal firearms or provide firearms to individuals intent on using them to commit acts of violence in our communities.”
“The collaborative effort of federal and local law enforcement, including the U.S. Attorney’s Office, has led to the lengthy sentencing of this career criminal and is another example of our commitment to fight gun violence,” said ATF New Orleans Special Agent in Charge Kurt Thielhorn. “ATF will continue to work tirelessly to protect our communities and hold accountable those who threaten our safety.”
The Oxford Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case, along with the New Albany Police Department and the Marshall County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Julie Addison.
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.
McLaughlin Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
ABERDEEN - United States Attorney Alison J. Ramsdell announced that a McLaughlin, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on January 18, 2023, by U.S. District Judge Charles B. Kornmann.
Mikal White Mountain, age 39, was sentenced to 27 months in federal prison, followed by five years of supervised release, and ordered to pay a special assessment to the Federal Crime Victims Fund in the amount of $100.
White Mountain was indicted for Failure to Register as a Sex Offender by a federal grand jury in December of 2021. He pleaded guilty on October 17, 2022.
White Mountain was convicted of Gross Sexual Imposition in North Dakota in 2005. Accordingly, White Mountain is required to register as a sex offender and to update his registration within three business days of relocation or changing employment. Between September 4, 2021, and December 14, 2021, White Mountain failed to properly register as a sex offender and update his registration.
This case was investigated by the U.S. Marshals Service, the Corson County Sheriff’s Office, the North Dakota Division of Criminal Investigation, and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Cameron Cook prosecuted the case.
White Mountain was immediately remanded to the custody of the U.S. Marshals Service.
Man Sentenced to Nearly Six Years in Prison for Illegally Possessing Gun During Civil Unrest in ChicagoRead the Press Release
CHICAGO — A man has been sentenced to nearly six years in federal prison for illegally possessing a loaded semiautomatic handgun during a period of civil unrest in Chicago in 2020.
RICKY GREEN, 28, of Chicago, illegally possessed the gun on the night of May 31, 2020, in the Lake View neighborhood on Chicago’s North Side. Green and other individuals attempted to break into a Target store in the 3300 block of North Ashland Avenue. When Chicago Police officers arrived at the scene, Green and the others fled in vehicles. After a brief chase on Lincoln Avenue, the vehicle in which Green was riding became disabled. Green ran off on foot and placed a bag containing the gun behind a broom and dustpan in a residential gangway. He then jumped a fence and tried to hide under the stairs of a residence in the 1300 block of West Wellington Avenue, but was apprehended by police officers, who then discovered the bag with the gun in it.
Green had previously been convicted in state court of multiple felonies, including a firearm offense, and was not legally allowed to possess the gun. He was on parole for his most recent felony conviction at the time of the federal offense.
A jury last year convicted Green on a federal charge of illegal firearm possession. U.S. District Judge Manish S. Shah on Thursday imposed a prison sentence of five years and nine months.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey L. Matthews, Acting Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; and David Brown, Superintendent of the Chicago Police Department.
“The defendant made a calculated decision to carry the gun while committing another serious crime, attempted burglary,” Assistant U.S. Attorneys Corey B. Rubenstein and Sushma Raju argued in the government’s sentencing memorandum. “He brought that gun into the chaos accompanying the pervasive looting and vandalism. The defendant’s deliberate decision to use the cover of that historic crisis to engage in his armed offense is particularly reprehensible.”
Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Man Pleads Guilty to Transporting Illegal ImmigrantsRead the Press Release
A man who was discovered transporting illegal immigrants across northeastern Oklahoma pleaded guilty this week in federal court.
Alfonso Solis-Melendez, 33, a Mexican national, pleaded guilty to transportation of illegal aliens.
The defendant and his 11 passengers were discovered after an Oklahoma Highway Patrol Trooper stopped the minivan they were traveling in for speeding on the Will Rogers Turnpike. Seven were riding in seats, and the others were lying across the floor of the minivan while it was traveling at highway speeds. Through the investigation, agents learned the defendant was paid to transport the immigrants from Albuquerque, New Mexico, to St. Lewis, Missouri. Passengers were from Mexico, El Salvador, Bolivia, and Guatemala.
In August 2022, Solis-Melendez was also charged by the state of Texas with similar crimes.
U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney William Rubens prosecuted the case.
Man Convicted of All Charges Related to One Fatal, Two Nonfatal Fentanyl OverdosesRead the Press Release
ST. LOUIS – A jury in U.S. District Court in St. Louis on Friday found a man who provided the fentanyl that caused one fatal and two nonfatal overdoses in St. Charles, Missouri in 2020 guilty of all charges.
Ledra A. Craig, 46, of Wright City, was found guilty of a fentanyl conspiracy charge, two counts of distribution of fentanyl causing serious bodily injury for the non-fatal overdoses, one count of distribution of fentanyl with death resulting and one count of fentanyl distribution for the sale to an undercover police officer.
“Ledra Craig was selling fentanyl, one of the deadliest drugs known to man,” Assistant U.S. Attorney Derek Wiseman told jurors in closing arguments Friday morning.
Just before 7 a.m. on August 2, 2020, Craig provided fentanyl to one man, referred to in court documents as “L.T.,” in the bathroom of the Ameristar Casino in St. Charles, according to court statements and evidence. Minutes later, the man collapsed in a lobby. When emergency responders arrived, L.T. was breathing just four to six times per minute and had to be revived with two doses of Narcan.
After leaving L.T., Craig showed a bag containing fentanyl to another man, R.P., in an elevator, then sold him the drug in the parking garage. Craig had approached R.P. and his friend in the casino and offered to sell them cocaine and R.P. believed that cocaine is what he was buying.
About 40 minutes later, R.P. and N.B. were spotted in a car in a neighborhood a few blocks from R.P.’s house. Authorities were called when the car rolled forward onto someone’s lawn. Both men had overdosed. N.B. was revived with Narcan. R.P. was blue, had no pulse and was not breathing. Efforts to revive him were unsuccessful.
Investigators quickly identified Craig as the man seen in the casino with the overdose victims, and an undercover officer bought fentanyl from Craig later that day in a transaction that was recorded on video. After his arrest, Craig admitted selling fentanyl to R.P. and admitted conspiring to sell fentanyl that summer.
At sentencing April 24, Craig faces a mandatory minimum of 20 years in prison and a maximum of life.
The case was investigated by the St. Charles County Regional Drug Task Force and the Drug Enforcement Administration. Assistant U.S. Attorneys Derek Wiseman and Samantha Reitz are prosecuting the case.
Lincoln Man Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Steven Russell announced that Aaron Lee Kuntz, 44, of Lincoln, Nebraska, was sentenced today to 15 years’ imprisonment for possession with intent to distribute 50 grams or more of actual (pure) methamphetamine after having a prior conviction for a serious drug felony by United States District Judge John M. Gerrard. Following his release from prison, Kuntz will serve 10 years on supervised release. There is no parole in the federal system.
On June 18, 2021, Lincoln narcotics investigators were watching Kuntz’s Lincoln residence. They saw a car leave Kuntz’s residence which was followed and later stopped for a traffic violation. The car was searched, and approximately 1 ¼ ounces of methamphetamine were found in the possession of one of the passengers who said they had obtained the methamphetamine at Kuntz’s residence. Investigators served a search warrant at Kuntz’s residence and found at least 510 grams, (approximately 18 ounces), of actual (pure) methamphetamine, plastic baggies, and scales. Kuntz told investigators he was selling small amounts of methamphetamine to support his methamphetamine addiction.
Kuntz had a prior conviction in federal court for conspiracy to distribute 500 grams or more of methamphetamine mixture for which he was sentenced to 135 months in prison in January of 2006.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force.
Leader of Brighton Drug Trafficking Organization Sentenced to 50 Months in PrisonRead the Press Release
BOSTON – The leader of a Boston-area drug trafficking organization (DTO) was sentenced yesterday for his role in a cocaine trafficking conspiracy.
Matthew Drayton, 45, of Boston, was sentenced by U.S. District Court Judge Denise J. Casper to 50 months in prison and three years of supervised release. In August 2022, Drayton pleaded guilty to conspiracy to distribute and possess with intent to distribute cocaine.Drayton was charged with 23 others in June 2020 as part of Operation Snowfall, which resulted in the charging of two different drug trafficking conspiracies during the overall period of November 2018 through June 2020.
According to the charging documents, beginning in November 2018, law enforcement investigated a DTO for which Drayton was both a leader and a drug distributor. The DTO was comprised of Boston-based street gang members and associates in the Commonwealth Development in Brighton, formerly known as Fidelis Way, a multi-apartment public housing development. It is alleged that the DTO assumed control over multiple apartments, where they stored, cooked, packaged and sold drugs – most of which was cocaine or cocaine base, which the DTO supplied to customers, wholesalers and distributors. As a result, the DTO caused a blight of the development and reduced the quality of life for other residents. As the investigation continued, law enforcement ultimately identified another DTO operating within the Boston area and targeted its large-scale drug suppliers and their associates.
Drayton was the leader of the Fidelis-Way related DTO whose members were allegedly responsible for the packaging, selling, storing and distribution of drugs to, or collection of proceeds from, drug customers, drug runners or other drug distributors and suppliers. It is estimated that Drayton distributed between 280 and 840 grams of cocaine base during the course of his participation in the Fidelis Way DTO which, when all drugs were calculated as powder, amounted to over 500 grams of cocaine. Drayton also participated in a number of controlled buys involving cocaine base during the investigation.
Drayton is the seventh defendant to be sentenced in the Fidelis-Way related drug conspiracy.
First Assistant United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Bryan Kyes, U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Boston Police Commissioner Michael Cox made the announcement. Assistance with the investigation was provided by the Braintree, Cambridge, Canton, Randolph and Weymouth Police Departments; the Suffolk, Norfolk and Bristol County District Attorneys’ Offices; and the Suffolk, Plymouth and Norfolk County Sheriffs’ Office. Assistant U.S. Attorneys Kaitlin R. O’Donnell and Timothy E. Moran of the Organized Crime & Gang Unit prosecuted the case.This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lawrence Ray Sentenced for Years-Long Predatory Crimes Against Students at Sarah Lawrence College and OthersRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that LAWRENCE RAY, a/k/a “Lawrence Grecco,” received a sentence of 60 years in prison for racketeering conspiracy, violent crime in aid of racketeering, extortion, sex trafficking, forced labor, tax evasion, and money laundering offenses. RAY was sentenced today by United States District Judge Lewis J. Liman after being convicted at trial in April 2022.
U.S. Attorney Damian Williams said: “Larry Ray is a monster. For years, he inflicted brutal and lifelong harm on innocent victims. Students who had their lives ahead of them. He groomed them and abused them into submission for his own gain. Through physical and psychological abuse, he took control over his victims’ minds and bodies and then extracted millions of dollars from them. The sentence imposed today will ensure that Ray will never harm victims again. I commend the brave victims who testified in Court in the face of incredible trauma. I also thank the career prosecutors in this Office and our law enforcement partners who made the just conviction and sentence in this case possible.”
According to the Indictment and the evidence at trial:
From in or about 2010 through the present, LAWRENCE RAY subjected a group of college students and other victims he met after moving into his daughter’s dorm room at Sarah Lawrence College to sexual and psychological manipulation and physical abuse. RAY’s tactics included sleep deprivation, psychological and sexual humiliation, verbal abuse, threats of physical violence, physical violence, threats of criminal legal action, alienating the victims from their families, and exploiting the victims’ mental health vulnerabilities.
Through this manipulation and abuse, RAY extracted false confessions from the victims to causing purported damages to RAY and his family and associates and then extorted payment for those purported damages through several means. The victims made payments to RAY by draining their parents’ savings, opening credit lines, soliciting contributions from acquaintances, selling real estate ownership, and at RAY’s direction, performing unpaid labor for RAY and earning money through prostitution.
Through fear, violence, and coercion, RAY forced one female victim to engage in commercial sex acts to pay damages to RAY that she did not actually owe. Beginning when she was just a college student, RAY sexually groomed this victim and collected sexually explicit photographs and other personal information, which he then used to coerce her into continued commercial sex acts. RAY also used physical violence. On one occasion, RAY tied his victim to a chair, placed a plastic bag over her head, and nearly suffocated her. RAY collected millions of dollars in forced prostitution proceeds from this victim.
In addition, RAY forced three female victims to perform unpaid labor on a family member’s property in North Carolina. Through a course of psychological and physical abuse, RAY forced these three victims to do extensive physical labor, sometimes in the middle of the night, for no pay.
Associates of RAY helped RAY collect and transfer the criminal proceeds, which RAY shared with at least two associates. RAY then laundered his criminal proceeds through an internet domain business and evaded paying taxes on his proceeds.
At the sentencing today, Judge Liman underscored “the resiliency of the human spirit and the courage of the victims.”
* * *
In addition to the prison term, RAY, 63, of Piscataway, New Jersey, was sentenced to a lifetime of supervised release. He was also ordered to forfeit $2,444,349, the proceeds from the sale of his GoDaddy portfolio, and the Pinehurst, North Carolina, residence where the forced labor took place. Restitution will be decided by the Court within 90 days of today’s sentencing.
Mr. Williams praised the efforts of the Federal Bureau of Investigation and the New York City Police Department.
RAY's co-defendant Isabella Pollok is scheduled to be sentenced on February 22, 2023, at 11:00 a.m.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Danielle Sassoon, Mollie Bracewell, and Lindsey Keenan are in charge of the prosecution.
Kissimmee Man Indicted for Lying to the FBI in Connection with an International Terrorism InvestigationRead the Press Release
Orlando, Florida –United States Attorney Roger B. Handberg, announces that a federal grand jury returned an indictment charging Moad Mohamed Benkabbou (22, Kissimmee) with three counts of false statements to a federal agency. Because the false statements made to the FBI related to an international terrorism investigation, Benkabbou faces a maximum sentence of eight years in federal prison. Following a detention hearing the Court detained Benkabbou in a local jail pending trial.
According to the indictment, Benkabbou was asked if he had ever talked about ISIS with a person known to FBI. He falsely answered, “No, I didn’t.” Benkabbou was also asked if he had ever made plans to travel overseas to join ISIS. Again, he answered falsely, “No, I didn’t.” Finally, Benkabbou was asked if he had ever pledged to ISIS. He falsely stated, “No, no I did not.”
According to evidence admitted during the detention hearing on January 19, 2023, Benkabbou swore an oath to support ISIS in January 2020, made plans to travel to Turkey and Syria to fight for ISIS, sent money to support ISIS, purchased airplane tickets in August 2020 and January 2021 (and later cancelled both tickets), and sent ISIS propaganda videos to others, including ISIS-sponsored videos showing executions of American allies fighting against ISIS. Benkabbou also sent a picture of himself dressed as an ISIS fighter with the statement, “Hey Crusaders hey Jews die within your rage.”
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Shawn P. Napier.
Download IndictmentJustice Department Commemorates National Stalking Awareness MonthRead the Press Release
The Justice Department joins survivors, victim services providers, justice professionals and others in recognizing the month of January as National Stalking Awareness Month (NSAM). According to the CDC, an estimated one in three women and one in six men experience stalking in their lifetimes. This NSAM, the department reaffirms its commitment to survivors by honoring and providing resources to those leading efforts in supporting survivors and preventing stalking crimes.
Today the Office on Violence Against Women (OVW), which provides grants to communities, and the Stalking Prevention Awareness and Resource Center (SPARC), held a virtual Strategies Showcase highlighting OVW grantees’ promising approaches to stalking investigations, services for survivors and training for law enforcement and prosecutors.
“The Justice Department is committed to using all its tools to address stalking,” said Associate Attorney General Vanita Gupta. “Survivors need justice and safety, and communities require resources to respond and prevent this crime. OVW’s grantees play a critical role, providing essential services and justice solutions in their communities.”
With the prolific misuse of the internet and other forms of technology as weapons against stalking victims, today’s Strategies Showcase further emphasizes the White House’s priority to eradicate technology-facilitated violence. Last June, President Biden established the White House Task Force to Address Online Harassment and Abuse, an interagency effort to increase prevention, response and protection measures for survivors.
OVW will release new grant solicitations in the coming months to further address stalking, domestic violence, sexual assault and dating violence. Funds will support states, communities, institutions of higher education, tribes and victim service providers. OVW encourages applicants to visit the website for anticipated release dates and prepare their grants early. Additional resources for applicants and how to apply for OVW funding can be found on OVW’s website.
“OVW’s grant programs fund innovative and successful strategies to end stalking and other forms of gender-based violence,” said OVW Acting Director Allison Randall. “By encouraging a coordinated community response, these grant programs forge meaningful partnerships of on-the-ground service providers, culturally specific organizations and everyone who works daily to keep survivors safe.”
Created in 1995, OVW provides leadership in developing the nation’s capacity to reduce violence through the implementation of VAWA and subsequent legislation. OVW administers financial and technical assistance to communities across the country that are developing programs, policies, and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
The OVW-funded Stalking Prevention, Awareness & Resource Center (SPARC) offers training to service providers and justice professionals on keeping stalking survivors safe and holding offenders accountable.
Jefferson County Woman Pleads Guilty in Return to Sender Drug Trafficking InvestigationRead the Press Release
PITTSBURGH, PA – A resident of Reynoldsville, Pennsylvania, pleaded guilty in federal court to violation of federal narcotics, firearms, and money laundering laws related to a nine-month Title III wiretap investigation into drug trafficking in and around the counties of Jefferson, Clearfield, and Allegheny, United States Attorney Cindy Chung announced today.
Kristy Lepionka, age 40, pleaded guilty to one count of conspiracy to distribute and possesses with intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine, on count of conspiracy to commit money laundering, and one count of possession of a firearm by a convicted felon before United States District Judge Christy Criswell Wiegand. Lepionka was one of 47 defendants charged in six related indictments as part of the Return to Sender investigation.
In connection with the guilty plea, the court was advised that Lepionka received parcels that were shipped from California to the Western District of California containing a total of between 5 kilograms and 15 kilograms of methamphetamine. Investigators searched Lepionka’s residence on August 31, 2021, pursuant to a federal search warrant and seized over a small amount of methamphetamine and a firearm, which Lepionka is prohibited from possessing due to a prior felony conviction.
Judge Wiegand scheduled sentencing for Lepionka on May 18, 2023, at 1:00 p.m. The law provides for a sentence of not less than ten years to a maximum of life in prison, a fine not to exceed $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The court ordered that the defendant remain on bond pending sentencing.
Assistant United States Attorneys Jonathan D. Lusty and Michael R. Ball are prosecuting this case on behalf of the government.
The Drug Enforcement Administration led the multi-agency investigation of this case, which also included the Homeland Security Investigations, United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Internal Revenue Services, Pittsburgh Bureau of Police, Allegheny County Police, and Pennsylvania State Police. Also assisting were the Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and the Clarion Borough Police Department.
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.
January 2023 Grand Jury for the District of NebraskaRead the Press Release
United States Attorney Steven Russell announced the federal Grand Jury for the District of Nebraska has returned 9 unsealed Indictments charging 13 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Tut Chuol, age 42, of Phoenix, Arizona; Kun Gach, age 38, of Omaha, Nebraska; and Tut Yual, age 40, of Des Moines, Iowa, are charged with conspiracy to distribute and possession with intent to distribute 40 grams or more of fentanyl on or about December 1, 2022. The penalty if convicted is not less than 5 years’ and up to 40 years’ imprisonment, a $5,000,000 fine, not less than four years and up to a life term of supervised release, and a $100 special assessment.
Contact Drug Enforcement Unit Chief Susan Lehr at 402-661-3700 for further information.
* Donald Fox, age 54, of Bayard, Nebraska, is charged in a five-count Indictment. Count I charges Fox with embezzlement and theft of labor union assets beginning on or about February 20, 2016 and continuing to on or about August 14, 2021. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. Counts II through V charge Fox with falsification of annual financial reports filed by a labor union beginning on or about March 20, 2017 and continuing to on or about March 31, 2020. The maximum possible penalty if convicted is 1 year imprisonment, a $10,000 fine, and a $100 special assessment.
Contact Criminal Chief Michael Norris at 402-661-3700 for further information.
* Eduardo Gonzalez-Moreno, age 23, is charged with possession with intent to distribute fentanyl on or about November 3, 2022. The penalty if convicted is 20 years’ imprisonment, a $1,000,000 fine, not less than three years and up to a life term of supervised release, and a $100 special assessment.
Contact Drug Enforcement Unit Chief Susan Lehr at 402-661-3700 for further information.
* Ricky Allen Kane, age 45, and Michele Marie Waters, age 55, both of Omaha, Nebraska, are charged in a two-count Indictment. Count I charges Kane and Waters with conspiracy to distribute and possession with intent to distribute 50 grams or more of methamphetamine (actual) on or about November 1, 2021 and continuing to on or about November 14, 2022. The penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, not less than five years and up to a life term of supervised release, and a $100 special assessment. Count II charges Kane with distribution of fentanyl analogue resulting in death on or about August 22, 2022. The penalty if convicted is not less than 20 years’ and up to life imprisonment, a $10,000,000 fine, not less than five-years’ and up to a life term of supervised release, and a $100 special assessment.
Contact Drug Enforcement Unit Chief Susan Lehr at 402-661-3700 for further information.
* Ivan Lima-Olivarria, age 42, is charged with conspiracy to distribute and possession with intent to distribute 500 grams or more of methamphetamine on or about November 1, 2021 and continuing to on or about November 23, 2022. The penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, not less than five years and up to a life term of supervised release, and a $100 special assessment.
There is also an allegation to forfeit $14,770 in United States currency and property seized on or about November 23, 2022.
Contact Drug Enforcement Unit Chief Susan Lehr at 402-661-3700 for further information.
* Nicholas Onate, age 33, of California, is charged with possession with intent to distribute fentanyl on or about July 9. 2022. The penalty if convicted is 20 years’ imprisonment, a $1,000,000 fine, not less than three years and up to a life term of supervised release, and a $100 special assessment.
Contact Drug Enforcement Unit Chief Susan Lehr at 402-661-3700 for further information.
* Isrrael Robledo-Cardenas, age 47, of Rising City, Nebraska, is charged in a two-count Indictment. Count I charges Robledo-Cardenas with possession with intent to distribute methamphetamine (actual) on or about November 15, 2022. The penalty if convicted is 20 years’ imprisonment, a $1,000,000 fine, not less than three years and up to a life term of supervised release, and a $100 special assessment. Count II charges Robledo-Cardenas with possession of a firearm during a drug trafficking crime on or about November 15, 2022. The penalty if convicted is not less than 5 years’ imprisonment up to life imprisonment consecutive to any other sentence, a $250,000 fine, a five-year term of supervised release, and a $100 special assessment.
Contact Drug Enforcement Unit Chief Susan Lehr at 402-661-3700 for further information.
* Luis Salazar-Cabrera, age 39, and Martin Caballero-Bringas, age 57, are charged in a two-count Indictment. Count I charges Salazar-Cabrera and Caballero-Bringas with conspiracy to distribute and possession with intent to distribute 400 grams or more of fentanyl and 500 grams or more of methamphetamine on or about March 1, 2022 and continuing to on or about October 19, 2022. The penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, not less than five years and up to a life term of supervised release, and a $100 special assessment. Count II charges Salazar-Cabrera with possession with intent to distribute 400 grams or more of fentanyl on or about October 19, 2022. The penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, not less than five-years’ and up to a life term of supervised release, and a $100 special assessment.
Contact Drug Enforcement Unit Chief Susan Lehr at 402-661-3700 for further information.
* Kevin Warsocki, age 31, of Omaha, Nebraska, is charged in a two-count Indictment. Count I charges Warsocki with possession with intent to distribute 10 grams or more of fentanyl on or about November 9, 2022. The penalty if convicted is not less than 5 years’ and up to 40 years’ imprisonment, a $5,000,000 fine, not less than four years and up to a life term of supervised release, and a $100 special assessment. Count II charges Warsocki with distribution of fentanyl analogue resulting in death on or about November 9, 2022. The penalty if convicted is not less than 20 years’ and up to life imprisonment, a $10,000,000 fine, not less than five-years’ and up to a life term of supervised release, and a $100 special assessment.
There is also an allegation to forfeit $1,034.00 in United States currency and property seized on or about November 9, 2022.
Contact Drug Enforcement Unit Chief Susan Lehr at 402-661-3700 for further information.
Jackson Man Pleads Guilty to Being a Convicted Felon in Possession of a FirearmRead the Press Release
Jackson, Miss. – A Jackson man pleaded guilty to being a convicted felon in possession of a firearm, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
According to court documents, Shredewrick Davon Anderson, Jr., 25, was found in possession of a firearm by a Jackson Police Officer on March 24, 2022. Anderson has multiple prior felony convictions. As a convicted felon it is contrary to federal law for Anderson to possess any firearm.
On September 7, 2022, a federal grand jury indicted Anderson for possession of a firearm as a convicted felon.
Anderson will be sentenced on April 20, 2023 and faces a maximum penalty of ten years in prison and a $250,000 fine. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by the FBI and the Jackson Police Department.
The case is being prosecuted by Assistant United States Attorney Jessica S. Terrill.
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.
J&J Subsidiary DePuy Agrees to Pay $9.75 Million to Resolve Allegations of Providing Illegal Kickbacks to SurgeonRead the Press Release
BOSTON – Johnson & Johnson, DePuy Synthes, Inc. and DePuy Synthes Sales, Inc. (collectively, DePuy) have agreed to pay approximately $9.75 million to resolve allegations that DePuy violated the Anti-Kickback Statute and the False Claims Act by providing free products to a Massachusetts-based surgeon (Surgeon) to induce the Surgeon to use DePuy products in his procedures.
DePuy manufactures and distributes medical devices, including spinal implants, and is headquartered in Raynham, Mass.
According to the settlement agreement, DePuy admits, acknowledges and accepts its responsibility for the facts underlying the government’s allegations. From at least July 2013 through February 2018, DePuy gave the Surgeon DePuy products, including implants and instruments, such as cages, rods, screws, plates and modular access and retraction systems. The Surgeon performed more than 20 surgeries over the course of multiple trips to six countries, specifically, Bahrain, Kingdom of Saudi Arabia, Kuwait, Lebanon, the United Arab Emirates and Qatar. In many of these surgeries, the Surgeon used DePuy products, worth thousands of dollars, that DePuy sales representatives had provided to him. The DePuy products that DePuy gave to the Surgeon were sometimes not available at the hospitals and/or with the third-party sales distributors in the countries where the Surgeon operated overseas. DePuy did not request or receive payment from the Surgeon, the hospitals, or the third-party sales distributors in the countries where the Surgeon operated overseas; nor did the Surgeon, the overseas hospitals, the third-party sales distributors, or anyone else, pay DePuy for the products that it gave to the Surgeon and the Surgeon used abroad.
The Anti-Kickback Statute (AKS) prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare and other federally funded programs. The statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients. The United States contends that DePuy knowingly and willfully provided free DePuy products, worth over $100,000, to the Surgeon for his overseas surgeries, to induce him to use DePuy’s products in spine surgeries he performed on Medicare and Medicaid patients in Massachusetts in violation of the AKS.
“Today the United States resolves allegations that DePuy provided over $100,000 worth of free product to a surgeon in order to secure and reward that physician’s continued business,” said United States Attorney Rachael S. Rollins. “Unlawful kickbacks can severely distort medical judgment as well as the market for medical devices. The millions of patients that depend on our health care system deserve untainted medical decisions. This settlement reflects our commitment to stamping out illegal kickbacks.”
“Medical device manufacturers are prohibited from providing free items to induce a physician to use their devices,” said Principal Deputy Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “When medical devices are used in surgical procedures, patients deserve to know that their device was selected based on quality of care considerations and not on improper benefits from manufacturers.”
“The American people, as both taxpayers and consumers, expect medical device manufacturers like DePuy to abide by relevant laws and regulations. When such health care companies provide illegal kickbacks in order to boost profits, their actions erode public confidence in the health care system, can compromise the patient-physician relationship, and waste government health program funding,” said Phillip M. Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General. “In close cooperation with our law enforcement partners, we will continue to thoroughly investigate allegations of fraud to protect both federal health care programs and those served by them.”
“Today’s settlement makes it crystal clear that it is illegal for medical device companies to provide physicians with free medical products to win business and boost their bottom line through illegal kickback schemes,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigations, Boston Division. “Every year, health care fraud costs taxpayers billions of dollars. It is not a victimless crime and this unscrupulous scheme orchestrated by DePuy is just one example of how the FBI and our partners are working hard every day to protect both patients and taxpayers.”
The allegations resolved by the settlement agreement were originally brought in a case filed under the whistleblower, or qui tam, provisions of the False Claims Act. The case is captioned United States et al. ex rel. John Doe v. Johnson & Johnson, et al., (D. Mass. 2017). The whistleblower will receive approximately $1,852,500 from the recovery.
U.S. Attorney Rollins, HHS-OIG SAC Coyne and FBI SAC Bonavolonta made the announcement today. The VA OIG and FDA-OCI also provided assistance. Assistant U.S. Attorneys Jessica J. Weber, Andrew A. Caffrey, III and Abraham R. George of Rollins’s Affirmative Civil Enforcement Unit, and Senior Trial Counsel Benjamin C. Wei of the Department of Justice’s Civil Division handled this matter. The Commonwealth of Massachusetts was represented by Assistant Attorney General Kevin Lownds.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Jan. 19 was:
Nicole Irene Corbin, 32, of Billings, on charges of bank fraud and aggravated identity theft. If convicted of the most serious crime, Corbin faces a maximum of 30 years in prison, a $1 million fine and five years of supervised release on the bank fraud crime and a mandatory minimum two years in prison, consecutive to any other sentence, a $250,000 fine and one year of supervised release on the aggravated identity theft crime. Corbin was detained pending further proceedings. The Billings Police Department investigated the case. PACER case reference. 22-151.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Jan. 17 was:
Katie Elizabeth Bowlds, 39, of Helena, on charges of possession of stolen mail. If convicted of the most serious crime, Bowlds faces a maximum of five years in prison, a $250,000 fine and three years of supervised release. Bowlds was released pending further proceedings. The U.S. Postal Inspection Service investigated the case. PACER case reference. 22-10.
Brandon Wade Kurns, 28, of Helena, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Kurns faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Kurns was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Montana Probation & Parole investigated the case. PACER case reference. 23-01.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Illinois Man Sentenced to 60 Months in PrisonRead the Press Release
HAMMOND – Tarrell Sims, 37 years old, of Country Club Hills, Illinois, was sentenced by United States District Court Judge Philip P. Simon after pleading guilty to two counts of Conspiracy to Commit Bank Fraud, announced United States Attorney Clifford D. Johnson.
Sims was sentenced to 60 months in prison followed by 2 years of supervised release and was ordered to pay $389,135.20 in restitution to the victim bank.
According to documents in the case, between November 2019 and February 2020, Sims directed a scheme to fraudulently obtain over $500,000 from the proceeds of two stolen business checks. Sims registered fictitious corporations in Indiana and opened fraudulent bank accounts with the assistance of two individuals whom he recruited. Sims and his co-conspirators successfully obtained over $380,000 from the bank fraud scheme.
Sim’s co-defendants have pleaded guilty and are awaiting sentencing.
This case was investigated by United States Postal Inspection Service and Lake County Sheriff’s Office, with assistance from the Federal Bureau of Investigation and the Federal Deposit Insurance Corporation Office of Inspector General. This case was prosecuted by Assistant United States Attorney Abizer Zanzi.
Illegal Possession of Firearms Sends Sulphur Man to Federal PrisonRead the Press Release
LAKE CHARLES, La. – Cornell Devon Shelton, 33, of Sulphur, Louisiana, was sentenced yesterday to 120 months in prison, followed by 3 years of supervised release, announced United States Attorney Brandon B. Brown. United States District Judge James D. Cain, Jr. conducted the sentencing hearing.
Shelton was charged in a bill of information with three counts of possession of a firearm by a convicted felon and he pleaded guilty to those charges on September 20, 2022. According to evidence presented to the court, Shelton, who has prior felony convictions, was found to be in possession of three different firearms on three separate occasions. On June 23, 2020, law enforcement officers with the Sulphur Police Department observed Shelton in the parking lot of a local motel conducting what appeared to be a narcotics transaction next to a vehicle. When the officer approached Shelton, he discovered Shelton was wearing a holster in his waistband and found a Taurus 9mm handgun on top of the driver’s seat of the vehicle which fit the holster he was wearing. The officer seized the firearm at that time.
On a second occasion on September 1, 2020, detectives with the Jefferson Parish Sheriff’s Office noticed an occupied vehicle at the Sulphur Truck Stop and Casino which was in violation of the mandated curfew following Hurricane Laura. Shelton was in the vehicle with two other passengers and had a Diamondback .308 rifle inside the vehicle. Further investigation by deputies revealed that the firearm had been reported stolen.
The third incident occurred on March 21, 2021, when a deputy with the Calcasieu Parish Sheriff’s Office conducted a traffic stop of a vehicle being driven by Shelton. Shelton gave his consent for the vehicle to be searched and the deputy found a Beretta 9mm pistol located between the driver’s seat and console. Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) test fired each firearm and determined each was a working firearm.
Shelton knew that as a convicted felon he was prohibited from possessing any firearm or ammunition. His prior convictions are for deadly conduct - discharging a firearm in direction of an individual (2013), possession of controlled substance with intent to distribute (2015), and possession of a controlled substance (2017).
The case was investigated by the ATF, Calcasieu Parish Sheriff’s Office, Jefferson Davis Parish Sheriff’s Office, and Sulphur Police Department, and prosecuted by Assistant U.S. Attorney LaDonte A. Murphy.
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Head of Fort Worth Drug Trafficking Organization ChargedRead the Press Release
The head of a Fort Worth drug trafficking operation and his associate have been federal charged, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Leeroy Marquee Jones, aka Aladdin, 32, and Christopher Antwuan George, 21, were charged via criminal complaint with conspiracy to possess with intent to distribute controlled substances, a federal crime.
During their arrest, Demarcus Taylor, a federal fugitive previously charged with conspiracy to possess with intent to distribute controlled substances, was also arrested.
According to the complaint, Mr. Jones was identified as the head of a drug trafficking organization that dealt fentanyl, cocaine, heroin, methamphetamine, and marijuana in Fort Worth’s “stop six” neighborhood. He was allegedly a multi-kilogram distributor.
On Jan. 19, enforcement executed search warrants at three stash houses allegedly run by Mr. Jones and seized 500 grams of suspected fentanyl, 400 grams of suspected methamphetamine, 16 firearms, and a large amount of U.S. currency.
- DEA Fort Worth Special Agent in Charge Eduardo A. Chávez“Seeking justice and a safe community is a team effort. Through our partnership with the Hood County Sheriff’s Office and the Fort Worth Police Department, guns and drugs, including thousands of potential deadly doses of fentanyl, are off our streets. Violent criminal drug networks poisoning our neighborhoods will be held accountable. You cannot hide.”
A criminal complaint is merely an allegation of criminal conduct, not evidence. Both defendants are presumed innocent until proven guilty in a court of law.
If convicted, they face up 10 years to life in federal prison.
The Drug Enforcement Administration’s Fort Worth District Office, the Hood County Sherriff’s Office, and the Fort Worth Police Department conducted the investigation. Assistant U.S. Attorney Laura Montes is prosecuting the case.
Guatemalan Man Sentenced for Selling Counterfeit DocumentsRead the Press Release
United States Attorney Steven Russell announced that Domingo Zacarias Ciprian, 42, formerly of Grand Island, Nebraska, was sentenced today in federal court in Omaha, Nebraska by Chief United States District Judge Robert F. Rossiter, Jr. for unlawful transfer of a document or authentication feature. Ciprian was sentenced to 15 months’ imprisonment. There is no parole in the federal system. After his release from prison, Ciprian will begin a 1-year term of supervised release. Ciprian is a citizen of Guatemala and will be deported after serving his sentence.
Through information gathered from previous investigations, law enforcement learned that Ciprian was selling counterfeit documents. On September 21, 2021, investigators made an undercover purchase from Ciprian of fraudulent documents to include a Social Security card and Nebraska Driver’s License. Ciprian was provided a down payment for the documents through MoneyGram, and he used his address and phone number to pick it up the payment. Following the purchase, investigators secured a warrant to search the Ciprian’s residence in Grand Island. The search on November 3, 2021, yielded 92 counterfeit documents, many of which appear to have been issued by or under the authority of the United States, as follows: 52 Social Security cards; 31 state identification cards/driver’s licenses; 1 Permanent Resident Card; and 8 birth certificates. Ciprian forfeited $6,640.00 in proceeds from his document trafficking operation.
This case was investigated by Homeland Security Investigations.
Greenville Man Sentenced to 5 Years in Federal Prison for Possession of Child PornographyRead the Press Release
GREENVILLE, SOUTH CAROLINA — Jason Dwayne Holley, 40, of Greenville, was sentenced to 5 years in federal prison and lifetime supervised release after pleading guilty to possession of child pornography.
Evidence presented to the Court showed that Holley was released from federal prison on August 30, 2022, after serving a sentence for possession of child pornography. Within a matter of weeks, the U.S. Probation Office found that Holley possessed two images of child pornography on his phone and was conducting searches on his phone for child pornography. A warrant was issued, and Holley was arrested on September 26, 2022 – less than one month from his release from prison.
United States District Judge Bruce Howe Hendricks sentenced Holley to 60 months in prison, to be followed by a life term of court-ordered supervision. There is no parole in the federal system.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
This case was investigated by Homeland Security Investigations (HSI). Assistant U.S. Attorney Jamie Lea Schoen is prosecuting the case.
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Former Operations and Marketing Director at Lifeway Credit Union Sentenced to Federal PrisonRead the Press Release
NASHVILLE - The former Operations and Marketing Director of Lifeway Credit Union in Nashville was sentenced today to 27 months in federal prison, announced U.S. Attorney Henry C. Leventis for the Middle District of Tennessee.
Monica Jackson, 43, of Murfreesboro, Tennessee, was charged in October 2021 with embezzling over $242,000 from Lifeway Credit Union. Jackson was part of the management team and oversaw the credit union’s operating activities, including lending decisions and the decision to order cash. She also had access to Lifeway Credit Union’s cash vault.
Between October 2016 and February 2021, Jackson embezzled approximately $242,156 from the credit union using a variety of methods, including by stealing cash out of the vault. Jackson also opened lines of credit in the names of family members and then transferred funds to accounts she controlled.
Jackson also made fraudulent transfers totaling $27,435 to herself from the account of a deceased credit union member. She used her administrative authority to lock access to the accounts she was using to commit the fraud so that other bank employees could not see those accounts.
Jackson was ordered to pay restitution in the amount of $242,156.00 which represents the proceeds of the crime.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Kathryn W. Booth prosecuted the case.
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Former Los Angeles City Politician José Huizar Pleads Guilty to Racketeering Conspiracy and Tax Evasion ChargesRead the Press Release
LOS ANGELES – Former Los Angeles City Councilmember José Huizar pleaded guilty today to federal criminal charges for using his powerful position at City Hall to enrich himself and his associates, and for cheating on his taxes.
Huizar, 54, of Boyle Heights, pleaded guilty to one count of conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act and one count of tax evasion. The plea agreement was filed Thursday in United States District Court.
Huizar represented Council District 14 (CD-14), which includes downtown Los Angeles and its surrounding communities, from 2005 until his resignation in 2020.
In his plea agreement, Huizar admitted to leading the CD-14 Enterprise, which operated as a pay-to-play scheme in which Huizar – assisted by others – unlawfully used his office to give favorable treatment to real estate developers who financed and facilitated bribes and other illicit financial benefits.
Specifically, Huizar and other city officials demanded and accepted cash bribes, casino gambling chips, prostitution and escort services, political contributions, flights on private jets and commercial airlines, stays at luxury hotels and casinos, expensive meals, tickets to concerts and sporting events, and other benefits.
Huizar also admitted to accepting a $600,000 bribe in the form of collateral from a billionaire real estate developer for Huizar to confidentially settle a pending sexual harassment lawsuit against Huizar by a former staffer.
“Huizar has admitted to orchestrating a racketeering scheme that enriched himself and others as they sought to monopolize political power at the expense of Los Angeles residents,” said United States Attorney Martin Estrada. “This is one of the most wide-ranging and brazen public corruption cases ever uncovered in this district, demonstrating that our office will use all the tools of the federal government to vigorously prosecute crooked politicians whose betrayal of the public trust significantly erodes confidence in our local government.”
“Mr. Huizar's actions, to include accepting a staggering amount of bribe money and lavish gifts, eroded the trust in the office he held for many years,” said Donald Alway, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “Angelenos deserve better than being used for the personal enrichment of politicians grifting the system and foreign investors whose currency is corruption. I'm proud of the investigators and prosecutors whose hard work led to today's admission of guilt.”
Huizar led the CD-14 Enterprise from at least February 2013 until July 2020, including for several years when he chaired the city’s Planning and Land Use Management (PLUM) Committee, which oversaw major commercial and residential development projects in the city.
Members and associates of the CD-14 Enterprise also included lobbyists, consultants, and other city officials and staffers, who sought to personally enrich themselves and their families and associates in exchange for official acts. These members included George Esparza, Huizar’s former special assistant, real estate development consultant George Chiang, political fundraiser Justin Jangwoo Kim, and lobbyist Morrie Goldman, among others. Each of these individuals has pleaded guilty in this case, is cooperating with the government’s investigation, and awaits sentencing.
The enterprise’s members and associates raised and solicited funds from developers and their proxies with projects in CD-14 to be paid to Huizar’s desired accounts and political action committees, including to benefit a Huizar relative’s campaign for the CD-14 seat.
In exchange for these benefits, Huizar, Esparza and other city officials agreed to perform and performed official acts, including:
- presenting motions and resolutions in various city committees to benefit projects;
- voting on projects in various city committees, including the PLUM Committee, and City Council;
- taking, or not taking, action in the PLUM Committee to expedite or delay the approval process and affect project costs;
- exerting pressure on city officials to influence the approval and/or permitting process of projects;
- using their office to negotiate with and exert pressure on labor unions to resolve issues on projects;
- leveraging voting and scheduling power to pressure developers with projects pending before the city to affect their business practices; and
- introducing or voting on city resolutions to enhance the professional reputation and marketability of businesspersons in the city.
In return for Huizar pleading guilty to the two felony counts, prosecutors have agreed to seek no more than 13 years in prison for Huizar, who also has agreed to forfeit $129,000 in cash that law enforcement found during a law enforcement search of his home in November 2018. The government also intends to seek more than $1 million in restitution on the city’s behalf.
As part of the plea agreement, Huizar has agreed to seek a sentence of no less than nine years in prison.
United States District Judge John F. Walter scheduled an April 3 sentencing hearing for Huizar.
The plea agreement is “binding,” which means the court must accept or reject all aspects of it. Should the court reject the plea agreement, any party may withdraw from it. Judge Walter said at today’s hearing that he would make that decision prior to Huizar’s sentencing date.
In June 2022, real estate developer Dae Yong Lee, a.k.a. “David Lee,” 57, of Bel Air and one of his companies, 940 Hill LLC, were found guilty of providing $500,000 in cash to Huizar and Esparza in exchange for their help in resolving a labor organization’s appeal of their downtown Los Angeles development project. Both defendants are scheduled to be sentenced on May 5.
In November 2022, downtown Los Angeles-based company Shen Zhen New World I LLC was found guilty of eight felonies for – through the actions of its owner, billionaire real estate developer and fugitive Wei Huang, 57, of Shenzhen, China – paying more than $1 million in bribes – including luxury trip expenses, casino gambling chips and the $600,000 sham loan – to Huizar to obtain city approval to build a 77-story skyscraper. The company’s sentencing hearing is scheduled for May 12. Huang, who is charged with several felonies, has yet to make a court appearance in this case and is considered a fugitive believed to be in China.
On February 21, former Los Angeles deputy mayor and co-defendant Raymond She Wah Chan, 66, of Monterey Park, is scheduled to go on trial. Chan, who is accused of being a member of the corrupt CD-14 Enterprise, has pleaded not guilty to charges of RICO conspiracy, bribery, honest services fraud and lying to federal agents.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
In a related case, Huizar’s brother, Salvador Huizar, 56, of Boyle Heights, pleaded guilty in October 2022 to lying to federal investigators and a federal grand jury about accepting cash from his brother on numerous occasions in exchange for paying certain of Huizar’s bills. Salvador Huizar’s sentencing hearing is scheduled for May 15.
The FBI is investigating this matter, with assistance from IRS Criminal Investigation.
Assistant United States Attorney Mack E. Jenkins, Chief of the Criminal Division, and Assistant United States Attorneys Cassie D. Palmer, Susan S. Har, and Brian R. Faerstein of the Public Corruption and Civil Rights Section, are prosecuting this case.
Any member of the public who has information related to this or any other public corruption matter in the City of Los Angeles is encouraged to send information to the FBI’s tip line at tips.fbi.gov or to contact the FBI’s Los Angeles Field Office at (310) 477-6565.