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Thursday 12 January 2023
United States Files Complaint Against Bob Dean Jr. and Affiliated Corporate Entities for Financial Misconduct Stemming from Evacuation of Nursing Homes During Hurricane IdaRead the Press Release
The United States has filed a complaint under the National Housing Act of 1934 (NHA) against Bob Dean Jr. and several affiliated corporate entities for misappropriating and misusing the assets and income of four nursing homes in Louisiana before and after Hurricane Ida’s landfall in August 2021. The four nursing homes, all of which were owned and operated by Dean and his companies, and had loans insured by the Federal Housing Administration (FHA), are Maison De’Ville Nursing Home – Houma, Maison De’Ville Nursing Home of Harvey, Maison Orleans Healthcare of New Orleans, and West Jefferson Health Care Center.
The FHA, which is part of the U.S. Department of Housing and Urban Development (HUD), provides mortgage insurance on loans that cover residential care facilities, such as nursing homes, pursuant to the NHA. To encourage lenders to make loans to such facilities, FHA mortgage insurance provides lenders with protection against losses that result from borrowers defaulting on their mortgage loans. To obtain such FHA-insured loans, loan recipients must enter into Regulatory Agreements with the FHA that provide, among other requirements, that the assets and income of an FHA-insured nursing home may only be spent on goods and services that are reasonable and necessary to the operation of the nursing home. The NHA permits the United States to recover twice the amount of any assets and income of FHA-insured nursing homes that were improperly distributed or misspent.
The United States’ complaint, filed in U.S. District Court for the Middle District of Louisiana, alleges that, from 2016 to 2021, Dean required the nursing homes to pay “rent” on an industrial warehouse he had acquired supposedly to serve as a hurricane evacuation center. The rent, which totaled more than $1 million, was paid to one of his corporate entities. Rather than using the funds to prepare the warehouse for a hurricane, he funneled much of that money to his personal bank accounts. In the days leading up to Hurricane Ida’s expected landfall in August 2021, Dean evacuated the residents of the four nursing homes to the warehouse. After residents arrived, sanitation was not maintained, and the nursing homes’ staff did not prepare sufficient food, provide wound care, or ensure adequate medical care and support for the residents. As a result, on Sept. 2, 2021, the Louisiana Department of Health removed the residents from the evacuation center and revoked Dean’s nursing home licenses.
The complaint further alleges that after the residents had been evacuated and the licenses revoked, Dean and his corporate entities continued to misdirect and misspend the nursing homes’ assets and income. Specifically, Dean directed his bookkeeper to sweep all of the nursing homes’ bank accounts and transfer the millions of dollars of funds to his personal accounts. The United States alleges that Dean did not use these funds to operate or maintain the nursing homes, which at this point were not operating because of the hurricane, and instead used this money to purchase personal goods and services, including antiques, firearms, and cars, and to fund allowances for his family members. The complaint alleges that, in total, Dean misspent and misallocated more than $4 million of the nursing homes’ assets and income.
“The department is committed to protecting our nation’s seniors and the important federal programs designed to support them,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “When individuals seek to exploit these programs for their own financial gain, we will use all of the appropriate tools at our disposal to hold them accountable.”
“Federal loan guarantees are designed to facilitate the care of our most vulnerable citizens,” said U.S. Attorney Ronald C. Gathe Jr. for the Middle District of Louisiana. “It is unfortunate that some chose to use the tragic landfall of Hurricane Ida as an opportunity to take advantage of the system to unjustly enrich their business. This office will continue to work with our partners to hold those accountable who misappropriate federal funds.”
“Upon learning of the callous manner in which residents of nursing homes owned by Bob Dean were treated during Hurricane Ida, HUD referred this matter to the Justice Department to investigate Dean’s alleged misuse of HUD’s funds,” said General Counsel Damon Smith of the HUD. "By working with our partners at the Justice Department and supporting this action, HUD reaffirms that it takes the obligations of nursing home owners seriously.”
“Dean’s alleged actions represent a gross disregard for human life and our most vulnerable community,” said Acting Special Agent in Charge Robert Lawler of HUD Office of Inspector General (HUD OIG). “HUD OIG will continue to work with its law enforcement partners to diligently pursue, investigate, and hold accountable bad actors who willfully misuse and mismanage Federal assets and place HUD beneficiaries in harm’s way.”
The complaint is the result of an effort by the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Middle District of Louisiana, with substantial assistance from HUD and the HUD OIG. This matter is being handled by Fraud Section Trial Attorney Christopher Reimer and Assistant U.S. Attorney Davis Rhorer Jr. for the Middle District of Louisiana.
The case is captioned United States v. Bob Dean, Jr., et al., 3:23-cv-00019 (M.D. La.).
The United States’ complaint stems from an investigation that the Department of Justice initiated as part of its Elder Justice Initiative, which supports the efforts of state and local prosecutors, law enforcement, and other elder justice professionals to combat elder abuse, neglect, and financial exploitation, with the development of training, resources and information. Learn more about the Justice Department’s Elder Justice Initiative at http://www.justice.gov/elderjustice.
U.S. Attorney’s Office Collects $42,405,600 in Civil and Criminal Actions in Fiscal Year 2022Read the Press Release
SACRAMENTO, Calif. — U.S. Attorney Phillip A. Talbert announced today that the Eastern District of California collected $42,405,600 in criminal and civil actions in Fiscal Year 2022. Of this amount, $14,682,495 was collected in criminal actions and $27,723,105 was collected in civil actions.
Additionally, the Eastern District of California worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect $8,740,584 in cases pursued jointly by these offices. Of this amount, $290,102 was collected in criminal actions and $8,450,481 was collected in civil actions.
“Financial recoveries are a critical part of our mission to protect the public treasury and hold those who violate the law accountable for the injury they cause,” said U.S. Attorney Talbert. “We will continue to aggressively pursue compensation from those who commit crimes and other wrongs in our district, to take the profit out of crime and to ensure that wrongdoers—not the public—bear the costs of unlawful conduct. I am very proud of these recoveries and the other great accomplishments this year by all the dedicated public servants who work in this office.”
For example, in June 2022, the Eastern District of California announced that it had received $9,486,287 from a physician to resolve allegations that he submitted false claims to Medicare and Medi-Cal for procedures and tests that were never performed. These payments include nearly $5.5 million paid by the physician as criminal restitution following his guilty plea to one count of health care fraud, in a separate criminal case filed in the Central District of California.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s Office in the Eastern District of California, working with partner agencies and divisions, collected $23,805,828 in asset forfeiture actions in Fiscal Year 2022. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
U.S. Attorney’s Office Collects $2.95 Million in Civil and Criminal Actions in Fiscal Year 2022Read the Press Release
U.S. Attorney Clint Johnson announced today that the Northern District of Oklahoma collected $2,954,438.70 in criminal and civil actions in Fiscal Year 2022. Of this amount, $1,958,593.62 was collected in criminal actions and $995,845.08 was collected in civil actions.
“The Asset Recovery Unit at the U.S. Attorney’s Office ensures that court ordered restitution is paid to victims, fines are collected, and civil financial obligations are met. In fiscal year 2022, this team of federal prosecutors, investigators, and professional legal staff diligently worked to collect almost $3 million on behalf of taxpayers and victims of crime,” said U.S. Attorney Clint Johnson. “I am proud of their commitment to this important mission.”
Cases and collection amounts varied.
For example, in March 2022, the Asset Recovery Unit recovered $7,444 in court ordered restitution from Shannon Kepler who was convicted of the murder of Jeremey Lake. The victim’s family requested the funds to purchase a headstone for Lake.
Also in March, Adena Collard, who in 2004 was convicted of defrauding several Tulsa area churches, made a lump sum payment of $141, 975 after 18 years of nominal payments. The funds paid, in full, her court ordered restitution of $151,529.
In May 2022, defendant Igor Kolosha was convicted of possession of child pornography. As part of his sentence, he was ordered to pay $8,000 in restitution. The final payment was received in May 2022. Individuals who commit child pornography crimes are often ordered to pay restitution to identified victims as required by the Amy, Vicky, and Andy Child Pornography Victim Assistant Act of 2018.
In November 2022, Dr. Adam Gallardo Arredondo paid $216,624 of his court ordered restitution for accepting illegal kickback payments. Arredondo solicited and received checks from OK Compounding in exchange for referring his patients’ compounding prescription to the pharmacy, which is now closed. The compounding prescriptions were paid for by federal healthcare programs; therefore, the kickbacks paid to Arredondo violated federal law.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s Office in the Northern District of Oklahoma, working with partner agencies and divisions, collected $633, 952 in asset forfeiture actions in FY 2022. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
U.S. Attorney Addresses 2023 Human Trafficking Community ReceptionRead the Press Release
Spokane, Washington – On January 11, 2023, the National Day for Human Trafficking Awareness, Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, addressed a community reception at the Spokane’s Central Public Library. The reception was sponsored by Lutheran Community Services, which is one of the United States Attorney’s Office’s principal partners in fighting human trafficking and advocating for survivors. The program included a training session for victim advocates, and was attended by law enforcement personnel, anti-trafficking advocates, and resource providers from around the region, including the Kalispell Tribe.
“Every day is Human Trafficking awareness at the United States Attorney’s Office,” said U.S. Attorney Waldref. “Human trafficking, whether in the form of forced labor, sexual exploitation against minors, or forced, coerced, or fraudulently-induced sexual exploitation of adults, is modern-day slavery. It lurks in places obvious and secret, online and on the street, in the Eastern District and elsewhere. We will never have a safe and strong community without ensuring that everyone is free from coerced labor and sex. The U.S. Attorney’s Office is delighted to continue working with our partners in federal, state, and local law enforcement, alongside victim advocates and resource providers, to seek out, investigate, and prosecute this crime while providing wraparound services to survivors in a comprehensive, victim-centered approach.”
U.S. Attorney Waldref noted that David Herzog, an experienced trafficking prosecutor in her Office, serves as the Human Trafficking Coordinator for the Eastern District, and works closely with anti-trafficking agents and investigators at the FBI, HSI, and local law enforcement agencies. She also highlighted the tireless efforts of Jolene Jones and Petra Frandsen, the victim/witness specialists at the U.S. Attorney’s Office, who liaise with victims, witnesses, and the non-governmental organizations that provide wraparound care to survivors.Tylertown Man Pleads Guilty to Possession of Child PornographyRead the Press Release
Hattiesburg, Miss. - A Tylertown, Mississippi man pled guilty to possession of child pornography, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
Jason Patrick Appeldorn, 46, pled guilty on January 10, 2023, in U.S. District Court in Hattiesburg.
According to court documents, on September 23, 2021, U.S. Probation officers executed a search of the premises at Appeldorn’s residence in Tylertown. Appeldorn had been under the supervision of the U.S. Probation Office since November 29, 2017, because of a previous conviction for possession of child pornography in the U.S. District Court for the Eastern District of Louisiana. Appeldorn’s cellular telephone, recovered during the search, was forensically examined and several thousand visual depictions of child sexual abuse material of minors engaging in sexually explicit conduct was recovered. Appeldorn also admitted to viewing and downloading child pornography.
Appeldorn is scheduled to be sentenced on April 27, 2023 and faces a maximum penalty of 20 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Federal Bureau of Investigation is investigating the case with the assistance of the Mississippi Attorney General’s Cyber Crimes Division.
Assistant U.S. Attorney Andrea Jones is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Two Detroit Men Sentenced to Prison for Fentanyl Trafficking Conspiracy on the Red Lake ReservationRead the Press Release
MINNEAPOLIS – Two Detroit men have been sentenced to prison for their roles in a fentanyl trafficking operation targeting the Red Lake Reservation, announced U.S. Attorney Andrew M. Luger.
According to court documents, in March 2021, Douglas Edward McClendon, 32, and Christopher Douglas Richard, 41, conspired with others to distribute fentanyl pills, methamphetamine, and cocaine to individuals from the Red Lake Reservation. McClendon, Richard, and a third co-defendant Scot Lamont Watkins, 34, would obtain fentanyl and other drugs from suppliers in Detroit and then travel to Bemidji, Minnesota, to sell the drugs. In text messages between the defendants, Richard told his co-conspirators to come to Red Lake because there was “Hella money to be made” by selling fentanyl and emphasized that the reservation was “dry.”
According to court documents, the defendants conducted their drug distribution operation out of various Bemidji-area hotels. On March 2, 2021, law enforcement executed a search warrant at a hotel where the defendants were selling drugs. As a result of the search, law enforcement agents recovered more than 174 grams of fentanyl, 37 grams of methamphetamine, and other controlled substances. As law enforcement made entry into the hotel room, McClendon and Watkins fled while Richard flushed a significant amount of fentanyl down the toilet.
McClendon and Richard pleaded guilty to one count each of conspiracy to distribute fentanyl and other controlled substances. On September 7, 2022, Richard was sentenced to 60 months in prison and McClendon was sentenced yesterday to 63 months in prison. Both defendants were sentenced by U.S. District Judge Nancy E. Brasel. Watkins remains a fugitive from law enforcement.
This case is the result of an investigation conducted by the Paul Bunyan Drug Task Force, the FBI Headwaters Safe Trails Task Force, the Red Lake Tribal Police Department, and the Minnesota Bureau of Criminal Apprehension.
This case was prosecuted by Assistant U.S. Attorney Laura M. Provinzino and Special Assistant U.S. Attorney Angelica Ramirez.
Two Brothers Sentenced for Conspiring to Distribute a Kilogram of CocaineRead the Press Release
NORFOLK, Va. – A Chesapeake man was sentenced today to 70 months in prison for conspiring with his brother to distribute a kilogram of cocaine.
According to court documents, Reginald Lamont Wilson, 42, conspired with his brother, John Samuel Shaw III, 46, to distribute a kilogram of cocaine to a confidential informant in Virginia Beach. This all while Wilson was serving a period of supervised release for a prior federal drug conviction.
Shaw was previously sentenced to 5 years in prison on November 9, 2022.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Derek W. Gordon, Acting Special Agent in Homeland Security Investigations (HSI) Washington D.C., made the announcement after sentencing by U.S. District Judge Elizabeth W. Hanes.
Assistant U.S. Attorneys Matthew J. Heck, Kevin M. Comstock, and Special Assistant U.S. Attorney Victoria Liu prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:22-cr-54.
Taunton Man Sentenced to Prison for Role in Million-Dollar Online Romance ScamsRead the Press Release
BOSTON – A Taunton man was sentenced yesterday in federal court in Boston for his role in online romance scams targeting individuals in the United States.
Francis Okafor, 30, was sentenced by U.S. Senior District Judge Douglas P. Woodlock to two years in prison and two years of supervised release. Okafor was also ordered to pay restitution of $1,130,285. In August 2022, Okafor pleaded guilty to one count of bank fraud conspiracy.
From approximately May 2018 through August 2021, Okafor and others participated in a series of romance scams designed to defraud victims. Romance scams occur when a criminal adopts a fake online identity to gain a victim’s affection and trust. The scammer then uses the illusion of a romantic or close relationship to manipulate and/or steal from the victim. In furtherance of the scheme, Okafor used false foreign passports in the names of others but with his photo to open numerous bank accounts. In turn, co-conspirators directed victims to send money to these accounts. Okafor and his co-conspirators then withdrew the victims’ money from various bank branches and ATMs and wired the money overseas. In total, more than $1.1 million in fraud proceeds was deposited into fraudulent bank accounts Okafor controlled.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, made the announcement. Assistant U.S. Attorney Kristen A. Kearney of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.
Statement of Special Counsel Robert K. HurRead the Press Release
Following his appointment by Attorney General Merrick B. Garland today, Special Counsel Robert K. Hur made the following statement:
“I will conduct the assigned investigation with fair, impartial, and dispassionate judgment. I intend to follow the facts swiftly and thoroughly, without fear or favor, and will honor the trust placed in me to perform this service.”
St. Louis Man Sentenced to 5+ Years in Prison on Drug/Gun ChargeRead the Press Release
ST. LOUIS –U.S. District Judge Matthew T. Schelp on Thursday sentenced a man who fled from police in a stolen car after a shooting and a gun sale to five years and 10 months in prison.
Michael Joseph Monroe sold a 9mm pistol for $325 to a confidential informant working with the Bureau of Alcohol, Tobacco, Firearms and Explosives on August 21, 2019 near the Dellwood Market.
Investigators then learned that shortly before the gun deal, the passenger of a car matching the description of Monroe’s stolen Audi A6 fired multiple shots at another car on westbound Interstate 270 near Old Halls Ferry Road. The victim’s vehicle was hit six times, including three times directly underneath the left driver’s side door, but the victim was not injured.
Monroe suspected he was being followed by the police or a rival drug dealer, and told his passenger, Treyvon Perry, to fire at the other car, according to a sentencing memorandum filed by prosecutors.
Police located the Audi and Monroe fled, reaching speeds in excess of 100 mph before he crashed about 12 miles later.
Police found fentanyl, cocaine base, oxycodone and a mixture of other drugs in the car, as well as a single bullet. They believed Perry discarded his gun during the chase.
Assistant U.S. Attorney Paul D’Agrosa told Judge Schelp Thursday that Monroe had repeatedly been caught with drugs or drug paraphernalia, both before and after his federal indictment.
Judge Schelp told Monroe, “This behavior was out of control,” before sentencing him.
Monroe, 25, pleaded guilty in September to one count of conspiracy to possess a firearm in furtherance of a drug trafficking crime, which was possession with intent to distribute fentanyl.
Judge Schelp sentenced Treyvon Perry, then 20, to five years in prison in October on one count of conspiracy to possess and discharge a firearm in furtherance of drug trafficking.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Louis County Police Department. Assistant U.S. Attorney Paul D’Agrosa prosecuted the case.
St. Louis County Man Charged with Illegally Dealing FirearmsRead the Press Release
MINNEAPOLIS – An Aurora man has been charged with two counts of dealing firearms without a license, announced U.S. Attorney Andrew M. Luger.
According to court documents, from at least May 2019 through September 2022, Wayne Robert Danielson, 59, engaged in a regular pattern and practice of purchasing and reselling firearms predominantly to earn a profit. During this period, Danielson purchased dozens of firearms from three different Federal Firearms Licensees (FFLs) within Minnesota, including multiple purchases of identical firearms. For example, Danielson purchased five Taurus G2C 9mm pistols between March 2021 and January 2022.
On May 8, 2022, a 17-year-old was shot and killed in South St. Paul. A subsequent investigation revealed that the handgun used in the shooting had been purchased by Danielson on December 1, 2021.
Danielson is charged with two counts of dealing in firearms without a license. He previously made his initial appearance on a related complaint in U.S. District Court before Magistrate Judge Tony N. Leung.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Dakota County Drug Task Force, the Minnesota Bureau of Criminal Apprehension, and the South St. Paul Police Department.
Assistant U.S. Attorney Sarah E. Hudleston is prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
South Carolina Man Sentenced to 14 Years in Federal Prison for Sexual Abuse of Minors and False Statements to FBIRead the Press Release
COLUMBIA, SOUTH CAROLINA — Jonathan McKinney Rion, 60, of Woodruff, SC, and Charlotte, NC, was sentenced to 14 years in federal prison after pleading guilty to enticement of a minor for sexual activity and false statements to the FBI, to be followed by a lifetime of supervision and registration as a sex offender.
In March 2021, according to evidence presented in Court, 58-year-old Rion enticed a minor boy into sexual conduct. He met the victim through an online social media application. Through an internet-based cell phone application, Rion arranged to travel from Charlotte, NC, to the Columbia, SC, area to pick the minor up and to take him back to Charlotte. In North Carolina, he sexually abused the minor and provided him with money and gifts.
In April 2021, Rion then spoke with who he was told was a 14-year-old minor two school grades younger than his previous victim. In truth, Rion was speaking to an undercover FBI agent. Rion attempted to recruit the purported 14-year-old to travel to his residence in North Carolina or to a hotel in South Carolina, where Rion intended to give the minor gifts or money in exchange for sex.
Evidence also indicated Rion had exploited as many as 6 minor victims between 2018 and 2021, many of whom he met online. Rion provided money, gifts, a place to stay, and other things of value; in exchange, he sexually abused the victims. He also obtained explicit photos and videos of the minor victims, and some victims reported non-consensual sexual contact.
When approached by the FBI, Rion falsely denied engaging in sexual contact with one victim, and he falsely claimed that he did not engage in any sexual conversations with minors. Evidence also indicated Rion had made false claims to a state court related to one victim.
United States District Judge Mary Geiger Lewis sentenced Rion to 14 years in federal prison, to be followed by a lifetime of court-ordered supervision, and Rion will have to register as a sex offender after release. The Court also ordered restitution be paid to one victim. There is no parole in the federal system.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, 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 identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
The case was investigated by the Federal Bureau of Investigation (FBI) and the Lexington (SC) Police Department, with assistance from the Charlotte-Mecklenburg Police Department. Assistant United States Attorney Elliott B. Daniels prosecuted the case.
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South Bend Man Sentenced to 57 Months in PrisonRead the Press Release
SOUTH BEND –Eric Blackmon, 25 years old, of South Bend, Indiana, was sentenced by United States District Court Chief Judge Jon E. DeGuilio after pleading guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Blackmon was sentenced to 57 months in prison followed by 2 years of supervised release.
According to documents in the case, in September 2022, Blackmon brokered the sale of a handgun to another individual in Michigan City. Blackmon brought his own 9-millimeter firearm with an extended magazine to the deal. His semi-automatic firearm was eventually recovered by law enforcement despite his attempts to conceal it. Blackmon has prior felony convictions for strangulation and burglary, and either conviction prohibits his possession of the firearm.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the LaPorte County Drug Task Force and the Michigan City Police Department. The case was prosecuted by Assistant United States Attorneys Joel Gabrielse and Katelan McKenzie Doyle.
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.
South Bend Man Sentenced to 180 Months in PrisonRead the Press Release
SOUTH BEND –Shaquille Delaney, 32 years old, of South Bend, Indiana, was sentenced by United States District Court Judge Damon R. Leichty after pleading guilty to distribution of methamphetamine, announced United States Attorney Clifford D. Johnson.
Delaney was sentenced to 180 months in prison followed by 5 years of supervised release.
According to documents in the case, on numerous occasions between the summer of 2021 and January 2022, law enforcement purchased methamphetamine from Delaney. During the subsequent execution of a search warrant at his residence, law enforcement recovered methamphetamine, cocaine, fentanyl, heroin, marijuana, synthetic marijuana, a .22 caliber rifle, cash, drug paraphernalia, and a drug ledger. Delaney’s criminal history includes prior felony convictions for home invasion and delivery of controlled substances.
This case was investigated by the Drug Enforcement Administration with the assistance of Federal Bureau of Investigation GRIT, the Porter County Drug Task Force (PCMEG), the South Bend Police Department, and the Porter County Sheriff’s Department. The case was prosecuted by Assistant United States Attorneys Kimberly L. Schultz and Frank Schaffer.
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South Bend Man Sentenced to 150 Months in PrisonRead the Press Release
SOUTH BEND –Terrence Reid, 39 years old, of South Bend, Indiana, was sentenced by United States District Court Chief Judge Jon E. DeGuilio on his plea of guilty to conspiracy to distribute methamphetamine, announced United States Attorney Clifford D. Johnson.
Reid was sentenced to 150 months in prison followed by 5 years of supervised release.
According to documents in this case, in May 2019, Reid agreed with others to buy methamphetamine in California to bring back to the Midwest for distribution. He flew to California, obtained more than 15 kilograms of methamphetamine, and loaded it into a car. Co-conspirators drove the methamphetamine back to the Midwest while Reid flew to Chicago. The drugs were found when the vehicle was stopped by law enforcement in Missouri.
This case was investigated by the Drug Enforcement Administration with the assistance of the Mishawaka Police Department, the St. Joseph County Drug Investigations Unit, the Indiana State Police, and the Missouri State Police. The case was prosecuted by Assistant United States Attorney Joel Gabrielse.
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Smuggler admits to smuggling conspiracy resulting in two deathsRead the Press Release
LAREDO, Texas - A 34-year-old citizen of the Dominican Republic has pleaded guilty to conspiracy to transport undocumented aliens within the United States resulting in a death, announced U.S. Attorney Alamdar S. Hamdani.
Wilkin Perez-Perez had been in charge and managing the transportation of aliens into the United States as well as the harboring of these aliens in the country.
On Sept, 21, 2017, Melvin L. Barahona-Godoy and Yoryi Alexis Perez led several people to the Rio Grande River. Two of the undocumented aliens drowned while trying to cross the river and into the United States. Their bodies were discovered along the river banks.
The investigation led to Perez-Perez who had returned to the Dominican Republic. He was determined to being in charge of and managing the U.S. branch of the organization. He had coordinated the transportation of these aliens into the interior of the United States and harboring them in Laredo. This led to the two deaths.
Authorities ultimately apprehended him on the charges. He was later extradited to the United States.
U.S. District Judge Diana Saldaña will impose sentencing at a later date. At that time, he faces up to life in federal prison and a possible $250,000 maximum fine.
Perez-Perez has been and will remain in custody pending that hearing.
Melvin L. Barahona-Godoy, 27, Guatemala, and Perez, 33, Dominican Republic, were also charged in relation to the transportation and harboring of the men and others. They have since been convicted and sentenced.
Homeland Security Investigations, Border Patrol and U.S. Marshals Service conducted the investigation.
Assistant U.S. Attorney Brandon Scott Bowling is prosecuting the case.
Sioux City Felon Sentenced to Five Years in Federal Prison for Illegally Possessing a GunRead the Press Release
A man who attempted to evade police on foot and resisted arrest was sentenced on December 20, 2022, to 5 years in federal prison.
Malik Rimmer, 26, from Sioux City, Iowa, received the prison term after a July 21, 2022, guilty plea to one count of Possession of a Firearm by a Felon.
Evidence in the case showed on or about April 3, 2022, a Sioux City Police Officer observed a vehicle with a license plate that expired in January 2022. The officer initiated a traffic stop. The vehicle, driven by Rimmer, refused to yield.
Rimmer took off at a high rate of speed and struck a curb in his attempt to flee, disabling his vehicle. Rimmer exited the vehicle and fled on foot. An officer drove his police vehicle in an attempt to cut off Rimmer, and could see Rimmer was holding a black object in his hand. Rimmer, still on foot, turned around and ran back toward his vehicle. The officer exited his police vehicle and gave Rimmer multiple commands to get on the ground. Rimmer refused to obey these orders and fought with officers. He was ultimately taken into custody.
Officers observed a black Taurus G3 pistol laying in the grass on the path Rimmer had fled. The firearm was listed as stolen at the time.
Rimmer was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand to 60 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. Rimmer is being held in the 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 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 investigated by the Sioux City Police Department and prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-04035.
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Shelby County Woman Sentenced for Federal Drug Trafficking ViolationsRead the Press Release
BEAUMONT, Texas - A Center woman has been sentenced to 10 years in federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Ingrid Yaresi Balderas De Leon, 28, pleaded guilty on July 12, 2022, to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 120 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to information presented in court, De Leon was part of a drug trafficking organization distributing large quantities of methamphetamine in East Texas. De Leon participated in several sales of large quantities of methamphetamine, often acting as a Spanish-language interpreter during the transactions. De Leon and her co-conspirators would hide the methamphetamine in the plastic trim of vehicles and deliver them to a residence in Center. De Leon was indicted by a federal grand jury on March 2, 2022.
This case was investigated by the FBI, Drug Enforcement Administration, and Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant U.S. Attorney Donald S. Carter.
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Serial Counterfeiter Sentenced to Federal PrisonRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that Chief Judge Shelly D. Dick sentenced Trenton Underwood, age 32, of Denham Springs, Louisiana to 36 months in federal prison following his convictions for conspiracy to manufacture and possess counterfeit Federal Reserve Notes, manufacturing counterfeit Federal Reserve Notes, and the possession of counterfeit Federal Reserve Notes. The Court further sentenced Underwood to serve three years of supervised release following his term of imprisonment and ordered all instrumentalities used in the scheme be forfeited.
According to admissions made as part of his guilty plea, in early 2022 Underwood and others made and attempted to pass counterfeit Federal Reserve Notes in exchange for retail and food items in the Middle District of Louisiana. On February 3, 2022, law enforcement recovered over $1,240 in cut counterfeit Federal Reserve Notes, 66 pages of uncut counterfeit Federal Reserve Notes in various denominations, and items used to manufacture counterfeit Federal Reserve Notes including a printer with a $20 Federal Reserve Note taped to the glass, boxes of linen paper, printer cartridges, paper cutters and dryer seats.
This was Underwood’s fourth counterfeit conviction. He had three prior state convictions for counterfeit and was on parole for one of these convictions when he committed the above federal offense.
This matter was investigated by the United States Secret Service and the Livingston Parish Sheriff’s Office and was prosecuted by Assistant United States Attorney Jessica M.P. Thornhill.
Seattle man now charged federally for carjackings and assaults that spanned King CountyRead the Press Release
Seattle – A 22-year-old Seattle man will appear today in U.S. District Court in Seattle on a seven-count indictment for multiple crimes on November 7, 2022, announced U.S. Attorney Nick Brown. Maar Teng Rambang is charged with three counts of carjacking, three counts of using a firearm during a crime of violence, and one count of attempted robbery. Rambang will appear at 2:00 PM today.
“These alleged crimes stretched from Kent, to Bellevue, to Redmond, to Seattle and ultimately back to Renton. Along the way Mr. Rambang’s conduct put countless people at risk – not just with the firearm he illegally possessed and used – but with the vehicles he drove at high speed in populated areas,” said U.S. Attorney Brown. “It’s important that we use our federal tools to deter this type of conduct.”
According to records filed in King County Superior Court and in federal court, the criminal conduct began on November 7, 2022, outside the Kent Post Office where Rambang allegedly confronted a woman, brandishing a gun and demanding her car. Next, Rambang drove the stolen car to the Bellevue Square Mall garage and fired two shots as he threatened another woman and demanded her vehicle. Next, he drove that stolen BMW to Redmond and attempted to rob Amazon employees working at a delivery locker at a Whole Foods Market. Rambang then allegedly drove the BMW to the Eastlake neighborhood of Seattle where he shot a man in the leg and stole his Jeep SUV. Officers tracked the Jeep to Kent and attempted to stop and arrest Rambang but he fled at speeds of 90-100 miles per hour in areas of heavy traffic. Rambang drove in center turn lanes, through gas station parking lots and ran red lights. Ultimately, a Jeep service provider was able to remotely slow the vehicle to 30 miles an hour so that law enforcement was able to block the car and arrest Rambang.
Rambang was originally charged in King County Superior Court. He was indicted by the grand jury on December 14, 2022. He came into federal custody late yesterday. He remains detained at the Federal Detention Center at SeaTac pending further hearings.
Carjacking is punishable by up to 25 years in prison. Attempted robbery is punishable by up to 20 years in prison. Using a firearm in connection with a crime of violence is punishable by a mandatory minimum ten years in prison and up to life in prison.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Kent, Bellevue, Redmond, and Seattle Police Departments with the assistance of the Bureau of Alcohol, firearms, Tobacco & Explosives (ATF).
The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
San Diego Man Sentenced to Life for Fatally Stabbing BoyfriendRead the Press Release
A San Diego man who killed his boyfriend by stabbing him 93 times was sentenced today to life in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Alexander Yoichi Duberek, 25, was indicted in September 2021. He pleaded guilty in July 2022 to one count of interstate domestic violence resulting in death and was sentenced Thursday by U.S. District Judge James Wesley Hendrix.
“This defendant looked his boyfriend’s family in the eyes and described the date night he had planned for the two of them. But instead of providing a romantic evening, he carried out a sadistic, premeditated plan to take the life of a 30-year-old man and callously dispose of his body,” said U.S. Attorney Leigha Simonton. “I cannot imagine the horror for this victim and his family. We are proud to bring this killer to justice.”
According to plea papers, Mr. Duberek admitted that on Oct. 31, 2020, he traveled from his home in San Diego to his boyfriend’s home in Plainview, Texas, where he committed the fatal stabbing on the side of a rural farm road.
Mr. Duberek admitted that after arriving at the Lubbock airport that evening, he took a cab to a Sam’s Club parking lot, where he purchased a Toyota Camry for $3,000 cash. He then drove to a Walmart, where he purchased a knife, a hatchet, a gas can, a collapsible shovel, a head lamp, a change of clothing, boots, personal hygiene items, and a first aid kit.
At Thursday’s sentencing hearing, prosecutors said that when Mr. Duberek arrived at his boyfriend’s house, he told his boyfriend’s family that he planned to take him out to eat and then to a local hotel room to spend the night.
Instead, he killed the 30-year-old and dumped the body.
Following the murder, Mr. Duberek fled to Houston, where he sold the vehicle used in the murder to an individual outside an auto auction. Investigators later searched the vehicle and found blood in the back seat that matched the victim.
The defendant remained at large for roughly five months before turning himself in to San Diego law enforcement on March 18, 2021. While being booked into jail, he was asked about a tattoo of his boyfriend’s first name on his ring finger; he answered that it was the name of the person he had killed.
“After viciously attacking him, the defendant left this wonderful human life, who he reportedly loved and wanted to marry, on the side of the road, like yesterday’s trash, like his life didn’t matter, to bleed to death,” the victim’s aunt said at the sentencing. “Why would he extinguish a light that shone so brightly for so many? Why didn’t he just stay in California, move on with his life?”
The Hale County Sheriff’s Office, the Texas Rangers, and the Federal Bureau of Investigation’s Dallas and San Diego Field Offices conducted the investigation with the assistance of the U.S. Secret Service’s Dallas Field Office and the Texas Highway Patrol’s Houston Division. Assistant U.S. Attorney Callie Woolam prosecuted the case.
Riverside Man Caught with over 10 Grams of Fentanyl and Fentanyl Analogues Sentenced to Two Years in Federal PrisonRead the Press Release
A man who conspired to distribute heroin was sentenced on January 10, 2023, to two years in federal prison.
Taylor James Leyden, age 30, from Riverside, Iowa, received the prison term after a July 5, 2022 guilty plea to one count of conspiracy to distribute heroin.
At the guilty plea, Leyden admitted he conspired with others to distribute heroin. Evidence at prior hearings and information presented at the sentencing hearing showed that, in 2021, the Cedar Rapids DEA conducted a wiretap investigation of several heroin and fentanyl traffickers in the Cedar Rapids area. In March 2021, based on intercepted communications from the wiretap, the vehicle in which Leyden was riding was stopped by police. During a search of the vehicle, Leyden was found in possession of over 10 grams of a mixture containing heroin, fentanyl, and synthetic opioids acetyl fentanyl, para-fluorofentanyl, and metonitazene. About two months later, Leyden was again stopped by law enforcement and found in possession of approximately 3.5 grams of a substance that contained heroin, fentanyl, and metonitazene.
Seven other individuals, Cody Scott Deklotz, Andrew James Lehman, Ryan Rick Schlitter, Melinda Salvatora Werning, Jerry Dwayne Banghart, Thomas Nathaniel May, and Demeco Demon Irvin previously pled guilty to the heroin conspiracy and have been sentenced. Ryan Rick Schlitter was sentenced to 46 months’ imprisonment. Andrew James Lehman was sentenced to 10 months and 16 days’ imprisonment. Cody Scott Deklotz was sentenced to 84 months’ imprisonment. Melinda Salvatora Werning was sentenced to 12 months’ and one day imprisonment. Jerry Dwayne Banghart was sentenced to 46 months’ imprisonment. Thomas Nathaniel May was sentenced to 31 months’ imprisonment. Demeco Demon Irvin was sentenced to 46 months’ imprisonment. Two other individuals charged in the same indictment, including Brian Jarrell Dennis, have pled guilty and are awaiting sentencing.
Leyden was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Leyden was sentenced to 24 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Leyden is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; and the Iowa Division of Narcotics Enforcement and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21‑CR‑32‑CJW.
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Registered Sex Offender Sentenced to Prison for Possessing Child Sexual Exploitation MaterialRead the Press Release
MIAMI – Nicholas Deraway, 41, of Delray Beach, Fla., has been sentenced to 10 years in prison and 15 years of supervised release for possessing child sexual exploitation material and failing to properly register as a sex offender.
In January 2022, Google alerted the National Center of Missing and Exploited Children that one of its users had uploaded child sexual exploitation material to an account. An investigation into this CyberTip led law enforcement to Deraway’s home where they executed a search warrant and found thousands of sexually explicit images and videos of children.
In 2004, Deraway was convicted in the Southern District of Florida for an offense that required him to comply with the ongoing requirements of the federal sex offender registration law. According to allegations, Deraway used an online alias (Nick Meenachan), yet failed to update his sex offender registration information with the associated email addresses. The name “Nick Meenachan” is linked to the child sexual exploitation material uploads that led to the January 2022 CyberTip.
U.S. Attorney Markenzy Lapointe of the Southern District of Florida, acting Special Agent in Charge Chad Yarbrough, FBI, Miami Field Office, and U.S. Marshal Gadyaces S. Serralta, Southern District of Florida, made the announcement.
FBI Miami and U.S. Marshal Service investigated the case with assistance from the Delray Beach Police Department. Assistant U.S. Attorney Gregory Schiller prosecuted it.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about the PSC initiative and for information regarding Internet safety, please visit www.justice.gov/psc.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Philadelphia Man Admits Drug Trafficking Conspiracy Involving over 100 Kilograms of CocaineRead the Press Release
CAMDEN, N.J. – An Egg Harbor Township man today admitted his role in a conspiracy to distribute cocaine, U.S. Attorney Philip R. Sellinger announced.
Lester Santana, 52, of Egg Harbor Township, pleaded guilty before U.S. District Judge Christine P. O’Hearn in Camden federal court to an information charging him with one count of conspiracy to distribute five kilograms or more of cocaine.
According to documents filed in this case and statements made in court:
Santana admitted that on numerous occasions from March 2019 to August 2020, he and his conspirators flew from to San Juan, Puerto Rico, on commercial flights from Philadelphia International Airport. Santana and his conspirators purchased multi-kilogram quantities of cocaine from wholesale drug suppliers based in the San Juan area in exchange for cash payments. Santana and the other conspirators then shipped the kilograms of cocaine by overnight delivery from U.S. Post Offices in San Juan to various addresses in Philadelphia and southern New Jersey, including to Santana’s residence. After the cocaine shipments were delivered, a conspirator resold the cocaine to other drug dealers in the Philadelphia area for a profit. Santana admitted that he was jointly responsible for the possession with intent to distribute and distribution of 50 to 150 kilograms of cocaine.
The drug-trafficking conspiracy charge carries a mandatory penalty of 10 years in prison, a maximum penalty of life in prison, and a maximum fine of $10 million. Sentencing is scheduled for May 18, 2023.
Two conspirators in this case, Jose Gonzalez and Iran Soler, both previously pleaded guilty before Judge O’Hearn to conspiring to distribute five kilograms or more of cocaine. Gonzalez is scheduled to be sentenced on Jan. 30, 2023, and Soler is scheduled to be sentenced on Feb. 6, 2023.
U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service, Philadelphia Division, under the direction of Acting Inspector in Charge Raimundo Marrero; agents of the U.S. Postal Service, Office of Inspector General, Northeast Area Field Office, under the leadership of Special Agent in Charge Matthew Modafferi; agents assigned to the FBI’s Atlantic City Resident Agency, Newark Division, under the direction of Special Agent in Charge James E. Dennehy; agents assigned to the FBI’s Philadelphia Field Division, under the direction of Special Agent in Charge Jacqueline Maguire; troopers assigned to the New Jersey State Police Strategic Investigations Unit South, under the direction of Col. Patrick J. Callahan; and officers and detectives of the Philadelphia Police Department, under the direction of Police Commissioner Daniel Outlaw, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Patrick C. Askin of the U.S. Attorney’s Office Criminal Division in Camden.
Pasco Man Sentenced to over 21 Years for Trafficking Fentanyl and Possessing Firearms; Forfeits House and More Than $400,000Read the Press Release
Tampa, FL – U.S. District Judge Mary S. Scriven has sentenced Edwin Hill, a/k/a “Z” (51, Holiday), to 21 years and 10 months in federal prison for conspiracy to distribute 400 grams or more of fentanyl and 1 kilogram or more of heroin, four counts of distribution of fentanyl, possession with the intent to distribute 400 grams or more of fentanyl and 500 grams or more of cocaine, and possession of firearms in furtherance of drug trafficking. The court also ordered Hill to forfeit his interest in a house in Pasco County that was used in committing the offenses, as well as a handgun. Hill previously agreed to forfeit $400,536 in drug proceeds, three handguns, and assorted ammunition. Hill was arrested on September 27, 2018, and subsequently detained. He pleaded guilty on October 11, 2022.
According to court documents, Hill trafficked fentanyl in Pasco County. He used a residence in New Port Richey for distributing the drugs and his personal residence in Holiday for storing the controlled substances, cash, and firearms. After four controlled purchases of fentanyl from Hill were made, federal authorities obtained search warrants for both residences and executed them on September 27, 2018. More than a half-kilogram of fentanyl, almost a kilogram of cocaine, five firearms (including two that were reported stolen), and more than $370,000 in cash was recovered from the two houses. During an interview with law enforcement, Hill admitted to drug trafficking, ownership of the seized guns, and that the seized money was the proceeds of drug sales. On September 27, 2018, after agreeing to cooperate with the investigation, Hill secretly, and without informing law enforcement, placed three texts to coconspirator Nelson White, that he had been arrested:
Text 1: D e a
Text 2: Dont come
Text 3: Stop answering the feds got me
Law enforcement observed White leave his residence after a bag was loaded into his car. A deputy from the Pasco Sheriff’s Office pulled over White’s car for a traffic violation and found approximately an additional pound of fentanyl, almost a half-kilogram of cocaine, more than $29,000 in cash, four additional firearms, and assorted ammunition. White was convicted of conspiracy and sentenced on December 1, 2020, to more than 21 years in federal prison. A separate coconspirator, William Gaston, was sentenced on July 28, 2020, to 10 years in federal prison.
This case was investigated by the Drug Enforcement Administration, the Pasco Sheriff’s Office, the Hardee County Sheriff’s Office, the Plant City Police Department, and the Winter Haven Police Department. It was prosecuted by Assistant United States Attorney Dan Baeza.
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.
Owner of Ninja Electronics Retail Stores Pleads Guilty to Fraud and Money Laundering ChargesRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, has entered pleas of guilty to three separate criminal charges arising out of his ownership and operation of a series of electronics reseller stores in the greater Pittsburgh area, United States Attorney Cindy Chung announced today. Milton I. Barr, age 36, entered pleas to separate counts charging him with Criminal Conspiracy, Mail Fraud and Money Laundering.
Barr was, during the time period of the Indictment, the owner / operator of Ninja Electronics, a series of retail stores that was initially in the business of selling used and refurbished electronic items. The evidence presented to the Court showed that during the period January 2016 through August 2018 Barr oversaw an operation that generated substantial revenue by purchasing health and beauty aids such as Crest White Strips, cosmetics, razor blades, hair care products and similar items, as well as over the counter medications such as name brand cough and cold medications, pain relievers, heartburn treatments and the like. Barr’s employees purchased these items from sellers who walked into his stores from off the street. The evidence showed that these walk-in sellers were invariably drug addicts who had shoplifted the items from local drug stores, grocery stores and retail chains. The records in the case showed that these addict sellers came into Ninja Electronics frequently, often multiple times in the same day or multiple times in the same week, offering items for sale to Ninja that were purchased by Ninja for pennies on the dollar of their original price. Ninja in turn took these stolen goods, always new and in the box, and then offered them for sale on websites like Amazon, shipping them to their ultimate purchasers through the United States mail. The evidence showed that in only one of the multiple Ninja bank accounts Barr received in excess of $540,000 in payments from Amazon during the less than three-year indictment period.
The evidence showed that Barr’s stores operated on a kind of “Don’t ask, Don’t tell’ policy. That is, employees were instructed not to ask the drug addict sellers where they obtained the merchandise they were selling, and if a seller told an employee that the item had been shoplifted employees were instructed not to buy the item. However, it was common knowledge among all the employees that the walk-in sellers were stealing the merchandise that Ninja was buying.
The Court set sentencing for Barr on May 17, 2023. The law provides for a maximum sentence of up to five years for the conspiracy count, up to 20 years on the wire fraud count and up to ten years on the money laundering count. The statutes in question each also carry a fine provision of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Internal Revenue Service, Criminal Investigation, the Federal Bureau of Investigation and the United States Postal Inspection Service conducted the investigation leading to the Indictment in this case. Police departments from the City of Pittsburgh, Ross Township and Shaler Township also assisted in the overall investigation.
Oneonta Man Sentenced to 60 Months in Prison for Conspiring to Commit Sex Trafficking of A MinorRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that TOBY MURCHISON was sentenced today to 60 months in prison for conspiring to commit sex trafficking of a 16-year-old girl. MURCHISON was sentenced by U.S. District Judge Vincent L. Briccetti. MURCHISON previously pled guilty to one count of conspiracy to commit sex trafficking.
U.S. Attorney Damian Williams said: “Toby Murchison preyed on a 16-year-old girl who had run away from home. Murchison placed this young woman in harm’s way by conspiring to have her engage in commercial sex and benefited financially from her misfortune. It is difficult to imagine more outrageous conduct, and today’s sentence signals the tenacity with which this Office will prosecute those who take advantage of minor victims.”
According to the allegations contained in the Information and other court documents filed in White Plains federal court:
In or about April 2021, MURCHISON conspired with one or more people to recruit a 16-year-old victim (“Minor Victim-1”) to engage in commercial sex acts in and around Newburgh, New York. MURCHISON met Minor Victim-1, who had run away from home, in the Newburgh area. MURCHISON and a co-conspirator helped Minor Victim-1 to procure “dates” (i.e., meetings with men to engage in commercial sex acts) and then secured hotel rooms, including in Newburgh and Fishkill, in which Minor Victim-1 would meet the men for “dates” and perform sex acts in exchange for money. Minor Victim-1 then gave some or all of the proceeds from those commercial sex acts to MURCHISON.
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In addition to his prison sentence, MURCHISON, 43, of Oneonta, New York, was sentenced to five years of supervised release.
Mr. Williams praised the outstanding investigative work of Homeland Security Investigations New York, Resident Agent in Charge Hudson Valley, and the Dutchess County Sherriff’s Office.
The prosecution of this case is being handled by the White Plains Division. Assistant U.S. Attorney Stephanie Simon is in charge of the prosecution.
Ohio Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Ivan Lee Burton, 47, of Columbus, Ohio, was sentenced today to five years in prison, to be followed by three years of supervised release, for distributing methamphetamine.
According to court documents and statements made in court, Burton admitted to distributing approximately 24 grams of methamphetamine to a confidential informant in Parkersburg on or about August 3, 2022. Burton further admitted to conspiring with several others to complete numerous drug transactions in the Parkersburg, West Virginia, area between April 2022 and September 2022. Burton used other individuals to sell drugs including methamphetamine and cocaine base, also known as “crack,” to customers on his behalf.
Burton has a long criminal history that now includes 13 felony convictions and six misdemeanor convictions.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Parkersburg Narcotics Task Force.
United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney Jeremy B. Wolfe prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-190.
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New York Man Pleads Guilty to Cocaine TraffickingRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Esteban Latorre-Cacho, age 37, of Lockport, New York, pleaded guilty on January 10, 2023, before U.S. District Court Judge Christopher C. Conner, to the charge of possession with intent to distribute more than five kilograms of cocaine.
According to United States Attorney Gerard M. Karam, Latorre-Cacho admitted to possessing 67 kilograms of cocaine for further distribution. The charge stems from an incident on April 30, 2021, in which members of the Pennsylvania State Police made a traffic stop of a vehicle in Lehigh County. Latorre-Cacho was the sole occupant of the vehicle. A subsequent search of the vehicle resulted in the seizure of 67 kilograms of cocaine found hidden inside boxes within the vehicle. Further investigation showed that Latorre-Cacho had picked up the boxes containing the cocaine at a location within the Middle District of Pennsylvania.
The investigation was conducted by the Pennsylvania State Police and the Drug Enforcement Administration. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun
violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The charge carries a mandatory minimum sentence of ten years in prison. The maximum penalty under federal law is up to life in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances, and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational, and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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New Orleans Man Sentenced to 42 Months in Prison for Violating the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – United States District Judge Lance M. Africk sentenced BRYCE JONES, age 23, of New Orleans, to 42 months in the Bureau of Prisons on January 11, 2023 for violating the Federal Gun Control Act, announced U.S. Attorney Duane A. Evans.
According to the court documents, in October 2021, law enforcement arrested JONES, along with several co-defendants who were also convicted felons in possession of firearms, near the intersection of Bienville and Crozat streets in New Orleans. JONES was in possession of a Rossi revolver, which he had in his waistband. Record checks revealed that just a few months earlier, JONES had been convicted of several felony offenses in Livingston Parish. He was charged with being a felon in possession of a firearm.
Judge Africk ordered JONES to serve 42 months in federal prison and to serve an additional three-year term of supervised release after release from imprisonment. The Court also ordered JONES to pay a mandatory special assessment fee of $100.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the New Orleans Police Department and the Federal Bureau of Investigations. The prosecution is being handled by Assistant United States Attorney David Haller.
New Jersey Company Agrees to Pay $1.89 Million to Settle Allegations that it Overbilled United StatesRead the Press Release
NEWARK, N.J. – A shipping company has agreed to pay $1.89 million to resolve allegations that it violated the False Claims Act by overbilling the United States for freight services that were never performed and improper markups, U.S. Attorney Philip R. Sellinger announced today.
Blue Water Shipping U.S. Inc. (Blue Water Shipping) had a contract in which it billed for freight forwarding services for foreign military sales, which were reimbursed by the United States. In the settlement announced today, Blue Water Shipping admits that an employee of the company, who has since been terminated, created a fake company to bill for freight services that were never actually performed, and which were ultimately reimbursed by the United States. The settlement also resolves allegations that Blue Water Shipping charged unallowable markups to the United States for inland transportation, and imports and exports of ocean and air freight. Blue Water Shipping has agreed to pay $1.89 million to resolve the investigations for the improper billings.
In conjunction with the investigation, Blue Water Shipping voluntarily disclosed facts to the investigators and cooperated with the investigation and prosecution of the former employee.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick Hegarty; and special agents of the United States Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel, with the investigation leading to the settlement.
The government is represented by Assistant U.S. Attorney Mark C. Orlowski of the U.S. Attorney’s Healthcare Fraud Unit in Newark.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
Mobile, Alabama Man Sentenced to over 11 Years in Prison for Felon in Possession of a Firearm, Animal Crushing, and EscapeRead the Press Release
Gulfport, Miss. – A Mobile, AL man was sentenced to a total of 135 months in federal prison for possession of a firearm by a convicted felon, animal crushing and escape, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Richard McGuire, 44, was sentenced today in U.S. District Court in Gulfport.
On March 29, 2022, Moss Point Police officers responded to an alarm call at Tay’s BBQ/Shell Station located on Highway 63 in Moss Point, MS. Officers identified a suspect and began searching the area for him. The suspect, who was later identified as Richard J. McGuire, was located behind another business but fled on foot when officers tried to approach him.
Moss Point Police K9 “Buddy” was released to track McGuire but the suspect fled over a privacy fence. Buddy continued to pursue McGuire into a wooded area when officers heard two gunshots and Buddy returned to them, having been shot in the chest.
On August 2, 2022, McGuire pled guilty to being a felon in possession of a firearm and animal crushing. On August 5, 2022, McGuire attempted to escape from the Pearl River County Adult Detention Center where he was being held without bond for the charges to which he pled guilty. He manipulated the fence and was apprehended just outside the facility by officers in the area. McGuire pled guilty to the escape offense on November 29, 2022.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The case was prosecuted by Assistant U.S. Attorney Erica Rose.
K9 Buddy made a full recovery.
Mitias to Pay $1.87 Million to Settle False Claims Act Allegations of Medicare and Medicaid OverbillingRead the Press Release
Mitias Orthopaedics, PLLC, it’s owner Dr. Hanna “Johnny” Mitias, and a subsidiary Champion Orthopedics, have agreed to pay $1,870,714.83 to resolve allegations the orthopedic health services providers knowingly submitted false claims to Medicare and Medicaid, the Department of Justice announced today.
“Taxpayers deserve to receive the products and services billed to their federal health insurance programs. The viability of Medicare and Medicaid is threatened by each wasted dollar. Our people come before profits,” said United States Attorney Clay Joyner. “This settlement sends a clear message that the Department of Justice will hold healthcare providers accountable if they knowingly overbill federal healthcare programs.”
Between Jan. 1, 2008, and Dec. 31, 2015, Mitias and his clinics allegedly submitted false claims to the Medicare and Medicaid programs for brand name viscosupplementation agents for knee injections that were not administered to the beneficiaries of those programs. Rather, a much cheaper, compounded viscosupplementation agent was alleged to have been used and, as a result, the defendants improperly claimed compensation for the higher priced products.
“We are committed to thoroughly investigating claims of fraud and holding health care providers accountable when they break the rules. The public should know we will devote the necessary time and effort to stamp out healthcare fraud in both civil and criminal matters,” said Joyner. “This settlement is an example of how whistleblowers and the government can work together to recoup and deter overbilling practices.”
The settlement resolves allegations in a 2015 lawsuit by a medical device sales representative filed under the whistleblower provisions of the False Claims Act. Those provisions permit private individuals to sue on behalf of the government for false claims and to share in any recovery.
The settlement was the result of a coordinated effort by the Civil Division of the Department of Justice, the United States Attorney’s Office for the Northern District of Mississippi, the Department of Health & Human Services, Office of Inspector General, and the State of Mississippi Attorney General’s Office Medicaid Fraud Control Unit.
The case is captioned United States ex rel. Gray v. Mitias Orthopaedics, PLLC (3:15-cv-127). The claims resolved by the settlement are allegations only and there has been no determination of liability.
Missoula pair sentenced to prison on drug trafficking, firearms crimes after law enforcement seize more than seven pounds of meth, fentanyl and multiple gunsRead the Press Release
MISSOULA — A Missoula pair convicted of drug trafficking and firearm crimes each were sentenced to prison terms today after law enforcement seized more than seven pounds of meth, fentanyl and firearms during the investigation, U.S. Attorney Jesse Laslovich said.
Carlos Guatimea Augirre, 36, was sentenced to 15 years in prison, to be followed by five years of supervised release. Aguirre pleaded guilty in May 2022 to possession with intent to distribute meth and fentanyl and to possession of a firearm in furtherance of a drug trafficking crime.
Co-defendant Savannah Shoshana Smith, 38, was sentenced to five years and six months in prison, to be followed by four years of supervised release. Smith pleaded guilty in May 2022 to possession with intent to distribute meth and fentanyl and to addict in possession of firearms and ammunition.
U.S. District Judge Dana L. Christensen presided.
In court documents, the government alleged that law enforcement served a search warrant on the residence of Smith and Aguirre on Oct. 6, 2021. Officers also conducted a traffic stop of Aguirre to execute a search warrant on the car and found a quarter pound of meth packaged for sale and a 9mm handgun that Aguirre had removed from his body when he was stopped. Inside the residence, officers found approximately 6.9 pounds of meth and fentanyl pills. Seven pounds of meth is the equivalent of about 25,368 doses. Law enforcement also found 21 firearms throughout the residence. Records showed that Smith purchased 22 firearms between February 2020 and August 2021. Smith told officers that Aguirre would give her meth and she would trade the meth for opiate pills. The investigation showed that Aguirre made numerous wire transfers totaling about $22,000 from August 2019 to September 2021 to addresses in Billings; Fresno, California; Las Vegas, Nevada; and Albuquerque, New Mexico. In addition, Aguirre traveled multiple times to Fresno, where he also maintained a residence and had active links to gangs, and Sacramento, California, and to Spokane, Washington. Three of the firearms, all 9mm pistols, that Smith purchased in Montana were recovered in Fresno in three separate criminal investigations that had gang associations.
Assistant U.S. Attorney Jennifer S. Clark prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations and the Missoula Police Department.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Mexican national heads to prison for harboring individuals and possessing firearmsRead the Press Release
BROWNSVILLE, Texas – A 22-year-old man illegally residing in San Benito has been ordered to federal prison following multiple convictions, announced U.S. Attorney Alamdar S. Hamdani.
Edgar Garcia-Torres pleaded guilty July 28, 2022, to harboring undocumented individuals within the United States for commercial advantage and private financial gain, being an alien in possession of a firearm and illegal re-entry into the United States.
Today, U.S. District Judge Fernando Rodriguez Jr. ordered Garcia-Torres to serve 48 months in federal prison. Not a U.S. citizen, Garcia-Torres is again expected to face removal proceedings following his imprisonment. In handing down the sentence, the court noted the multiple crimes to which Garcia-Torres pleaded guilty.
On June 13, 2022, law enforcement discovered two harbored aliens at a residence located on Palm Drive in San Benito. Shortly after, they arrested Garcia-Torres for harboring the undocumented individuals. A subsequent search of a second residence located on Bowie Street resulted in the seizure of two firearms, one of which was stolen, and $17,500 in U.S. currency. Authorities were able to link the items to Garcia-Torres.
He ultimately admitted to harboring 50-60 undocumented aliens at the location.
Garcia-Torres had been previously removed from the country and did not have lawful presence in the United States.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Border Patrol, Homeland Security Investigations and Cameron County Precinct 4 Constable’s Office conducted the investigation. Assistant U.S. Attorney David Coronado prosecuted the case.
Mexican Woman Sentenced to Prison for Illegally Reentering the United States After Being DeportedRead the Press Release
A woman who illegally returned to the United States after being deported was sentenced January 11, 2023, to more than two months in federal prison.
Lourdes Tetzoyotl-Quiahua, age 33, a citizen of Mexico illegally present in the United States and residing in Ridgeway, Iowa, received the prison term after a November 17, 2022, guilty plea to one count of illegal reentry into the United States after having been deported.
At the guilty plea, Tetzoyotl-Quiahua admitted she had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Tetzoyotl-Quiahua was previously deported in November 2009 following her conviction in the United States District Court for the District of Arizona for illegal entry into the United States, a misdemeanor. She had also been returned to Mexico by immigration officials in September and October 2009. Employment records show that by early January 2010, Tetzoyotl-Quiahua was illegally working in Iowa. On October 20, 2022, immigration officials learned Tetzoyotl-Quiahua had illegally returned to the United States and found her at her residence in Ridgeway.
Tetzoyotl-Quiahua was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Tetzoyotl-Quiahua was sentenced to 79 days’ imprisonment. She must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Tetzoyotl-Quiahua, having completed her sentence, was released to begin serving her term of supervised release.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-2061.
Follow us on Twitter @USAO_NDIA.
Methamphetamine Trafficker Sentenced to 5 YearsRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Kou Yang, 27, Wausau, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 5 years in prison, to be followed by 3 years of supervised release, for distributing 50 grams or more of methamphetamine. Yang pleaded guilty to this charge on October 5, 2022.
In August 2021, an undercover police officer bought large quantities of methamphetamine from Yang on two separate occasions. After Yang’s arrest, he admitted to purchasing half pound and pound quantities of methamphetamine from local methamphetamine dealers for later distribution to customers.
In sentencing Yang, Judge Conley highlighted that Yang was under state supervision at the time of his arrest for drug trafficking and had learned very little from his prior conviction and prison sentence. He further stressed that, in addition to drug trafficking, the defendant had a significant criminal history involving domestic violence and firearm possession.
The charge against Yang was the result of an investigation conducted by the Central Wisconsin Narcotics Task Force. Assistant U.S. Attorney David J. Reinhard prosecuted this case.
Maryland Felon Sentenced to Statutory Maximum of Five Years in Federal Prison for Possession of a Firearm in a Baltimore School ZoneRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett today sentenced Lawrence Russoe, age 37, of Baltimore, Maryland, to the statutory maximum sentence of five years in federal prison, followed by three years of supervised release, for possession of a firearm within 1,000 feet of a school zone.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department (BPD).
“Schools should be sacred and free from fear. Felon or no felon, if you’re caught with a gun around a school, we’re seeking to prosecute you federally,” said United States Attorney Erek L. Barron.
According to Russoe’s guilty plea, on June 7, 2021, BPD Detectives received notice of a stolen gray Hyundai vehicle at a fast-food drive-thru in the 2800 block of Greenmount Avenue in Baltimore. Detectives attempted to stop the vehicle, but the driver, later identified as Russoe, refused to stop. A BPD helicopter maintained surveillance of the vehicle as it fled at a high speed, driving recklessly.
As detailed in the plea, Russoe briefly stopped the car to let out a passenger, then continued driving until entering the 3500 block of Parklawn Avenue, where he abandoned the car while it was still in motion. Russoe had a satchel draped across his body as he got out of the car and ran away, with BPD officers in pursuit. Russoe was arrested a short time later. Detectives searched the gray Hyundi and located an extended magazine, loaded with seven rounds of 9mm ammunition, on the rear driver’s side floorboard. In the satchel that Russoe was carrying, law enforcement recovered a privately made firearm (PMF), commonly known as a “ghost gun,” specifically, a Polymer 80, 9mm semi-automatic pistol without a serial number, a scale, seven baggies of marijuana, one clear gelcap containing a mixture of cocaine, heroin, and fentanyl, and a cell phone.
Russoe admitted that he had reasonable cause to believe he was within 1,000 feet of a school while he possessed the firearm, because he drove directly past the Belair-Edison Middle School and the firearm and ammunition were both found approximately 500 feet from the school.
As detailed in his plea agreement, Russo is currently serving a sentence of seven years for a conviction in Baltimore City Circuit Court for first degree assault and possession of a firearm with a felony conviction. Judge Bennett ordered that Russoe’s federal sentence will be served concurrent to his state sentence and that Russoe must forfeit the PMF, extended magazine, and seven rounds of 9mm ammunition.
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.
United States Attorney Erek L. Barron commended the ATF and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked Special Assistant U.S. Attorney Jacob Gordin, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Lorain Man Sentenced to 15 Years in Prison for Distributing Fentanyl that Led to Overdose DeathRead the Press Release
CLEVELAND – Kevin L. Walker Jr., 31, of Lorain, was sentenced on Wednesday, January 11, 2023, to 15 years in prison by U.S. District Judge Christopher A. Boyko after he pleaded guilty to possession of drugs and distribution of fentanyl that led to an overdose death.
“As this sentence demonstrates, our communities will not tolerate drug traffickers and fentanyl dealers who kill or harm our neighbors, friends, and family with their deadly product,” said First Assistant U.S. Attorney Michelle M. Baeppler. “Thanks to the collaborative work of law enforcement, another fentanyl pusher will now spend a significant time behind bars for his actions.”
“Fentanyl continues to flood our nation at an alarming rate, and the citizens of Northern Ohio are not immune from its devastation,” said FBI Cleveland Special Agent in Charge Gregory Nelsen. “This case reflects our commitment to address not only fentanyl, but also the assortment of narcotics making their way into our communities. We will continue to work closely with our federal, state, and local partners to identify drug traffickers and their networks fueling the epidemic.”
According to court documents, Walker was arrested in July 2021 by law enforcement authorities following a warrant issued for corrupting another with drugs. Authorities then searched Walker, a vehicle, and a room he rented and found that Walker was in possession of fentanyl, methamphetamine, and crack cocaine.
Officers then began an investigation into Walker’s drug trafficking activities and learned that on July 28, 2021, Walker intentionally distributed a substance containing fentanyl to a victim who later ingested it, suffered an overdose, and died.
This case was investigated as part of Operation Synthetic Opioid Surge (S.O.S.)., a joint law enforcement initiative that seeks to reduce the supply of deadly synthetic opioids and to identify wholesale distribution networks and international and domestic suppliers in Lorain County.
This case was investigated by the Lorain Police Department, Westlake Police Department, and the Cleveland Division of the FBI. This case was prosecuted by Assistant United States Attorneys Robert F. Corts and Robert J. Kolansky.
Local Man Sentenced for Obstructing Pittsburgh Police during May 30, 2020 Pittsburgh ProtestRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, was sentenced in federal court on a charge of obstruction of law enforcement during civil disorder, United States Attorney Cindy K. Chung announced today.
Jordan Coyne, 26, was sentenced to 18 months of incarceration followed by three years of supervised release by United States District Judge Arthur J. Schwab. Judge Schwab permitted the defendant to remain on bond and self-report by March 10, 2023, to begin his sentence.
The court was previously advised that on May 30, 2020, Coyne did knowingly and willfully throw multiple pieces of concrete at a vehicle occupied by police officers. The defendant was caught on video throwing numerous items that struck police officers, including rocks, bricks, pieces of concrete, and a tear gas canister. The tear gas canister struck an officer in the hand, causing the officer’s thumb to bleed and swell. Coyne’s actions caused the obstruction, impediment and interference of law enforcement officers engaged in the lawful performance of their official duties.
Assistant United States Attorney Jonathan D. Lusty prosecuted this case on behalf of the government.
The Pittsburgh Bureau of Police and the Federal Bureau of Investigation conducted the investigation.
Lead defendant in Richmond County meth-trafficking conspiracy sentenced to more than 20 years in federal prisonRead the Press Release
AUGUSTA, GA: A Georgia prison inmate who led an Augusta-area methamphetamine-trafficking ring has been sentenced to more than two decades in federal prison.
Magnum Jelani Neely, 38, of Millen, Ga., an inmate at Dooly State Prison, was sentenced to 278 months in federal prison after previously pleading guilty to Conspiracy to Possess with Intent to Distribute, and to Distribute, 50 Grams or More of Methamphetamine, said David H. Estes, U.S. Attorney for the Southern District of Georgia. U.S. District Court Chief Judge J. Randal Hall also ordered Neely to pay a $2,500 fine and to serve five years of supervised release upon completion of his prison term. There is no parole in the federal system.
“Magnum Neely orchestrated a large-scale meth distribution operation from behind bars while serving a 10-year state sentence for violent crime,” said U.S. Attorney Estes. “This investigation dismantled that drug-trafficking operation, and substantial federal sentences hold these drug dealers accountable.”
As described in court documents and testimony, agents from the U.S. Drug Enforcement Administration in November 2021 joined investigators from the Richmond County Sheriff’s Office and the Burke County Sheriff’s Office in identifying Neely as coordinating a methamphetamine trafficking operation from inside prison. Neely used contraband cell phones to contact couriers outside prison to deliver drugs to buyers both inside and outside Georgia prisons. The Georgia Department of Corrections assisted in the investigation, and Neely and three co-conspirators were indicted in April 2022. All four defendants admitted guilt.
The three co-conspirators include:
- Patricia Gregory, 45, of Augusta, was sentenced to 87 months in prison and fined $2,000 after pleading guilty to Conspiracy to Possess with Intent to Distribute, and to Distribute, 50 Grams or More of Methamphetamine;
- Fanesia Smith, 39, of Augusta, was sentenced to 48 months in prison after pleading guilty to Conspiracy to Possess with Intent to Distribute, and to Distribute, 50 Grams or More of Methamphetamine; and,
- Yvonne Smith, 58, of Augusta – mother of Fanesia Smith – awaits sentencing after pleading guilty to Misprision of a Felony for knowing of, and helping to conceal, the criminal activity of the conspiracy.
“DEA is fully committed to tirelessly pursuing criminals who sell drugs, whether they’re selling them on the streets or from inside a prison,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy.
“We appreciate the support of our local and federal partners in ensuring that justice will be served on this individual for his role in jeopardizing the safe operations of our facilities, and most importantly, the safety of the public,” said Georgia Department of Corrections Commissioner Tyrone Oliver.
The case was investigated by the U.S. Drug Enforcement Administration, the Richmond County Sheriff’s Office, the Burke County Sheriff’s Office, and the Georgia Department of Corrections, and prosecuted for the United States by Assistant U.S. Attorney Jeremiah L. Johnson
Lawrence Man Sentenced to Five Years in Prison for Selling Firearms and NarcoticsRead the Press Release
BOSTON – A Lawrence man was sentenced yesterday in federal court in Boston for selling ghost guns, ammunition and fentanyl.
Miguel Mejia, 35, was sentenced by U.S. District Court Judge William G. Young to five years in prison and four years of supervised release. In September 2022, Mejia pleaded guilty to one count of dealing in firearms without a license and one count of possession with intent to distribute distribution of 40 grams of more fentanyl.
Between July 7, 2020 and Dec. 16, 2020, Mejia sold five privately made firearms (PMFs), more commonly known as ghost-guns along with ammunition. Specifically, Mejia sold two Glock 26 style PMF pistols, two Glock 17 style PMF pistols and 11 rounds of 9mm ammunition. Additionally, on July 31, 2020, Mejia sold approximately 50 grams of fentanyl. During a search of Mejia’s residence on Dec. 16, 2020, a Glock 43 style PMF pistol; 40 rounds of 9mm ammunition; three pistol magazines; a pill press and pill stamping set; and five baggies of narcotics cutting agents were recovered.
“Stopping the flow of illegal firearms into our communities is the most critical step in combatting violent crime. Ghost guns are particularly dangerous because in addition to being deadly, they are unlicensed and untraceable,” said United States Attorney Rachael S. Rollins. “Mr. Mejia profited off of bringing deadly guns and drugs into our communities. This sentence is just, and Lawrence residents are safer because of it."
“Illegally dealing firearms without a license, particularly privately manufactured firearms, will continue to remain an ATF priority and will be stopped in its tracks. The ripple effect of violence cannot be overstated and ATF will be vigilant about going after these violent criminals,” said James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, & Explosives, Boston Field Division.
U.S. Attorney Rollins and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, & Explosives, Boston Field Division made the announcement today. Assistant U.S. Attorney Benjamin A. Saltzman of Rollins’ Criminal Division prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Kanawha County Man Sentenced to Prison for Fentanyl CrimeRead the Press Release
CHARLESTON, W.Va. – Samuel Manriquez, 37, of Cross Lanes, was sentenced today to four years and six months in prison, to be followed by three years of supervised release, for possession with intent to distribute fentanyl.
According to court documents and statements made in court, on February 17, 2021, law enforcement officers executed a search warrant at a Charleston residence where Manriquez was hiding to evade arrest. Manriquez refused to surrender, and after several hours, was removed from a crawl space beneath the residence’s basement floor. Officers found two bags of fentanyl totaling approximately 6.3 grams and $1,620 in Manriquez’s left pants pocket. Manriquez admitted that he intended to distribute some of the fentanyl found on his person.
On January 8, 2021, law enforcement officers responded to a 911 hang-up call at Manriquez’s residence. Manriquez admitted that he struck a female guest in the side of her head with his fist during an argument and then left the residence before officers arrived. The officers executed a search warrant at Manriquez’s residence and found a Walther HK MP5 .22-caliber rifle, a Ruger .22-caliber pistol, parts to a Hi-Point .45-caliber pistol, $4,680 and drug paraphernalia including a scale and aluminum foil with a white powder residue.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Manriquez was prohibited from possessing firearms because of his felony convictions for distribution of U-47700, an opioid, and distribution of U-47700, and furanyl fentanyl in United States District Court for the Southern District of West Virginia on November 1, 2019.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Metropolitan Drug Enforcement Network Team (MDENT), and the Kanawha County Sheriff’s Office.
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Julie M. White prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-176.
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Justice Department Secures over $31 Million from City National Bank to Address Lending Discrimination AllegationsRead the Press Release
LOS ANGELES – The Justice Department announced today an agreement to resolve allegations that City National Bank engaged in a pattern or practice of lending discrimination by “redlining” in Los Angeles County. This resolution will include over $31 million in relief to impacted individuals and communities.
The agreement, which is part of the Department’s nationwide Combating Redlining Initiative that Attorney General Merrick B. Garland launched in October 2021, represents the largest redlining settlement in its history. City National is the largest bank headquartered in Los Angeles and among the fifty largest banks in the United States.
“Redlining” is an illegal practice in which lenders avoid providing credit services to individuals living in communities of color because of the race, color, or national origin of the residents in those communities. A complaint filed in federal court today alleges that from 2017 through at least 2020, City National avoided providing mortgage lending services to majority-Black and Hispanic neighborhoods in Los Angeles County and discouraged residents in these neighborhoods from obtaining mortgage loans.
The complaint also alleges that during that time period other banks received more than six times as many applications in majority-Black and Hispanic neighborhoods in Los Angeles County than City National each year. In addition, City National only opened one branch in a majority-Black and Hispanic neighborhood in the past twenty years, despite having opened or acquired 11 branches during that time period. And unlike at its branches in majority-white areas, City National did not assign any employee to generate mortgage loan applications at that branch.
“Fifteen months after I vowed that the Justice Department would be aggressively stepping up our efforts to combat discriminatory practices in the housing market, we have today secured the largest redlining settlement in Department history,” said Attorney General Merrick B. Garland. “So far, the Combating Redlining Initiative has secured over $75 million dollars in relief for communities that have suffered from lending discrimination. The Justice Department will continue to build on our efforts to vigorously enforce federal fair lending laws and work to ensure that financial institutions provide equal opportunity for every American to obtain credit. In advance of what would have been Dr. Martin Luther King Jr.’s 94th birthday, it is a fitting time to reaffirm our commitment to that work, and to the pursuit of justice for all Americans.”
“In the words of Dr. Martin Luther King Jr., the issue of fair housing is a ‘moral issue.’ Thus, ending redlining is a critical step to closing the widening gaps in homeownership and wealth, especially in a city as large and diverse as Los Angeles,” said United States Attorney Martin Estrada. “It is unacceptable that redlining persists into the 21st century, and this case demonstrates our commitment to combat redlining and hold banks and others accountable when they engage in unlawful discrimination. Through this agreement, we are taking a major step forward by removing unlawful and discriminatory barriers in residential mortgage lending, and meeting the credit needs in Los Angeles.”
“This settlement is historic, marking the largest settlement ever secured by the Justice Department against a bank engaged in unlawful redlining,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This settlement embodies Dr. Martin Luther King Jr.’s commitment to fighting economic injustice and ensuring that Black Americans and all communities of color are able to access the American dream and freely access the credit needed to purchase a home. Redlining is a practice from a bygone era, runs contrary to the principles of equity and justice, and has no place in our economy today. This settlement should send a strong message to the financial industry that we expect lenders to serve all members of the community and that they will be held accountable when they fail to do so.”
Under the proposed consent order, which is subject to court approval and was filed today in the U.S. District Court in Los Angeles along with the complaint, City National Bank has agreed to do the following:
• Invest at least $29.5 million in a loan subsidy fund for residents of majority-Black and Hispanic neighborhoods in Los Angeles County; at least $500,000 for advertising and outreach targeted toward the residents of these neighborhoods; at least $500,000 for a consumer financial education program to help increase access to credit for residents; and at least $750,000 for development of community partnerships to provide services that increase access to residential mortgage credit.
• Open one new branch in a majority-Black and Hispanic neighborhood and evaluate future opportunities for expansion within Los Angeles County; ensure at least four mortgage loan officers are dedicated to serving majority-Black and Hispanic neighborhoods; and employ a full-time Community Lending Manager who will oversee the continued development of lending in majority-Black and Hispanic neighborhoods.
• Conduct a Community Credit Needs Assessment, a research-based market study, to help identify the needs for financial services for majority-Black and Hispanic census tracts within Los Angeles County.
City National worked cooperatively with the Department to remedy the redlining allegations. In conjunction with this settlement, City National has announced that it is proactively taking steps to expand its lending services in other markets around the country to provide greater access to credit in communities of color. Specifically, City National is working to facilitate additional homeownership opportunities in underserved communities, including by creating a residential mortgage special purpose credit program to cover geographic areas in various locations throughout the country, including New York, Georgia, Nevada, and Tennessee. Additionally, City National is planning to launch a small business lending program that will be aimed at assisting underserved business owners in operating and growing their business.
In October 2021, Attorney General Garland launched the Justice Department’s Combating Redlining Initiative, a coordinated enforcement effort to address this persistent form of discrimination against communities of color. The Initiative is expanding the Department’s reach by strengthening partnerships with U.S. Attorneys’ Offices around the country, regulatory partners and its partners in state Attorneys General offices. Since the Initiative was launched, the Department has announced five redlining cases and settlements with a combined $75 million in relief for communities that have been the victims of lending discrimination, including a $20 million settlement with Trident Mortgage Company and a $13 million settlement with Lakeland Bank.
Assistant United States Attorney Katherine Hikida of the Civil Division’s Civil Rights Section and attorneys from the Housing and Civil Enforcement Section of the Justice Department’s Civil Rights Division handled this matter.
Individuals in the seven counties of the Central District of California may report housing discrimination by contacting the United States Attorney’s Office at (213) 894-2879 or emailing [email protected].
city_national_-_complaint.pdf city_national_-_consent_order.pdfJustice Department Secures over $31 Million from City National Bank to Address Lending Discrimination AllegationsRead the Press Release
The Justice Department announced today an agreement to resolve allegations that City National Bank (City National) engaged in a pattern or practice of lending discrimination by “redlining” in Los Angeles County. City National is the largest bank headquartered in Los Angeles and among the 50largest banks in the United States. This resolution will include over $31 million in relief to impacted individuals and communities. The agreement, which is part of the Department’s nationwide Combating Redlining Initiative that Attorney General Merrick B. Garland launched in October 2021, represents the largest redlining settlement in its history.
“Fifteen months after I vowed that the Justice Department would be aggressively stepping up our efforts to combat discriminatory practices in the housing market, we have today secured the largest redlining settlement in Department history,” said Attorney General Merrick B. Garland. “So far, the Combating Redlining Initiative has secured over $75 million dollars in relief for communities that have suffered from lending discrimination. The Justice Department will continue to build on our efforts to vigorously enforce federal fair lending laws and work to ensure that financial institutions provide equal opportunity for every American to obtain credit. In advance of what would have been Dr. Martin Luther King Jr.’s 94th birthday, it is a fitting time to reaffirm our commitment to that work, and to the pursuit of justice for all Americans.”
“This settlement is historic, marking the largest settlement ever secured by the Justice Department against a bank engaged in unlawful redlining,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This settlement embodies Dr. Martin Luther King Jr.’s commitment to fighting economic injustice and ensuring that Black Americans and all communities of color are able to access the American dream and freely access the credit needed to purchase a home. Redlining is a practice from a bygone era, runs contrary to the principles of equity and justice, and has no place in our economy today. This settlement should send a strong message to the financial industry that we expect lenders to serve all members of the community and that they will be held accountable when they fail to do so.”
“In the words of Dr. Martin Luther King Jr., the issue of fair housing is a ‘moral issue.’ Thus, ending redlining is a critical step to closing the widening gaps in homeownership and wealth, especially in a city as large and diverse as Los Angeles,” said U.S. Attorney Martin Estrada for the Central District of California. “It is unacceptable that redlining persists into the 21st century, and this case demonstrates our commitment to combat redlining and hold banks and others accountable when they engage in unlawful discrimination. Through this agreement, we are taking a major step forward by removing unlawful and discriminatory barriers in residential mortgage lending, and meeting the credit needs in Los Angeles.”
“Redlining” is an illegal practice in which lenders avoid providing credit services to individuals living in communities of color because of the race, color, or national origin of the residents in those communities. The complaint filed in federal court today alleges that from 2017 through at least 2020, City National avoided providing mortgage lending services to majority-Black and Hispanic neighborhoods in Los Angeles County and discouraged residents in these neighborhoods from obtaining mortgage loans. The complaint also alleges that during that time period other banks received more than six times as many applications in majority-Black and Hispanic neighborhoods in Los Angeles County than City National each year. In addition, City National only opened one branch in a majority-Black and Hispanic neighborhood in the past 20 years, despite having opened or acquired 11 branches during that time period. And unlike at its branches in majority-white areas, City National did not assign any employee to generate mortgage loan applications at that branch.
Under the proposed consent order, which is subject to court approval and was filed today in the U.S. District Court for the Central District of California along with a complaint, City National Bank has agreed to do the following:
- Invest at least $29.5 million in a loan subsidy fund for residents of majority-Black and Hispanic neighborhoods in Los Angeles County; at least $500,000 for advertising and outreach targeted toward the residents of these neighborhoods; at least $500,000 for a consumer financial education program to help increase access to credit for residents; and at least $750,000 for development of community partnerships to provide services that increase access to residential mortgage credit.
- Open one new branch in a majority-Black and Hispanic neighborhood and evaluate future opportunities for expansion within Los Angeles County; ensure at least four mortgage loan officers are dedicated to serving majority-Black and Hispanic neighborhoods; and employ a full-time Community Lending Manager who will oversee the continued development of lending in majority-Black and Hispanic neighborhoods.
- Conduct a Community Credit Needs Assessment, a research-based market study, to help identify the needs for financial services for majority-Black and Hispanic census tracts within Los Angeles County.
City National worked cooperatively with the Department to remedy the redlining allegations. In conjunction with this settlement, City National has announced that it is proactively taking steps to expand its lending services in other markets around the country to provide greater access to credit in communities of color. Specifically, City National is working to facilitate additional homeownership opportunities in underserved communities, including by creating a residential mortgage special purpose credit program to cover geographic areas in various locations throughout the country, including New York, Georgia, Nevada, and Tennessee. Additionally, City National is planning to launch a small business lending program that will be aimed at assisting underserved business owners in operating and growing their business.
In October 2021, Attorney General Garland launched the Justice Department’s Combating Redlining Initiative, a coordinated enforcement effort to address this persistent form of discrimination against communities of color. The initiative is expanding the Department’s reach by strengthening partnerships with U.S. Attorneys’ Offices around the country, regulatory partners and its partners in state Attorneys General offices. Since the initiative was launched, the Department has announced five redlining cases and settlements with a combined $75 million in relief for communities that have been the victims of lending discrimination, including a $20 million settlement with Trident Mortgage Company and a $13 million settlement with Lakeland Bank.
Additional information about the section’s fair lending enforcement can be found at www.justice.gov/fairhousing. Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291, or submitting a report online.
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Justice Department Secures Agreement with Hotel in Kankakee, Illinois, to Ensure Access for People with DisabilitiesRead the Press Release
SPRINGFIELD, Ill. – The Department of Justice announced today it has reached a settlement agreement pursuant to the Americans with Disabilities Act (ADA) with the Economy Inn, located in Kankakee, Illinois, to resolve alleged violations of Title III of the Americans with Disabilities Act. The Department reached the agreement with Prakash Patel, who owns and operates the hotel. The agreement requires that the hotel rent rooms and provide equal service to customers with disabilities.
The settlement resolves an ADA complaint alleging that when an individual with a disability attempted to check in at the hotel, the hotel refused to rent a room to the individual. A hotel employee allegedly told the individual that it was the hotel’s policy not to rent rooms to “people on walkers and wheelchairs” because the hotel could not be “liable” for them. The complaint alleged the individual had nowhere else to stay at the time.
The complaint prompted an investigation by the United States Attorney’s Office for the Central District of Illinois. The ADA requires that hotels provide access to individuals with disabilities, including those who use wheelchairs, walkers, or other devices to assist with movement.
“It is illegal for people with disabilities to be treated differently because of their disability and that includes when renting a room from a hotel,” said Assistant U.S. Attorney Joshua I. Grant for the Central District of Illinois. “People with disabilities often face barriers that make living more difficult, but one barrier that should no longer exist is simply finding a place to stay. I encourage all hotels in the Central District of Illinois to review their policies and facilities to ensure they are accessible to all.”
Under the agreement, the hotel will establish written policies ensuring that individuals with disabilities can rent rooms from the hotel and enjoy equal access to its services. The hotel will also provide ADA training to its staff. Without admitting violating the ADA, the district also agreed to a monetary payment to the individual identified in the complaint to fully resolve the matter.
Assistant U.S. Attorney Grant represented the government during the investigation and settlement process. For more information about the ADA, please visit www.ada.gov, or call the Department of Justice’s toll-free information line at (800) 514-0301 or (800) 514-0383 (TDD). Information about filing a complaint, including instructions for filing a complaint online, can be found at https://www.justice.gov/crt/how-file-complaint.
Jersey City Attorney Charged with Wire Fraud and Aggravated Identity TheftRead the Press Release
NEWARK, N.J. – A Jersey City attorney was charged with defrauding his clients of more than two million dollars, U.S. Attorney Philip R. Sellinger announced today.
James R. Lisa, 67, is charged by indictment with three counts of wire fraud and four counts of aggravated identity theft. He was arraigned today by videoconference before U.S. Magistrate Judge José R. Almonte, pleaded not guilty and was release on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
In 2014, Lisa was retained by a family to help repatriate millions of dollars that had been transferred by other family members to offshore bank accounts decades earlier. Lisa was also retained to help resolve the tax issues related to the repatriation of the funds. In 2015, Lisa successfully repatriated more than $6 million of the family’s funds, but proceeded to falsely advise the family that the funds remained offshore. In 2017, Lisa provided $4 million of the repatriated funds to the family but continued to falsely represent that the remaining $2 million remained beyond his control.
Lisa falsely told the family that he successfully resolved the tax implications of repatriating the funds. In 2016, Lisa sent the family a fraudulent IRS “closing agreement” reflecting an agreement with the IRS for the family to pay $3 million in taxes and penalties for the repatriated funds. In 2018, Lisa sent the family another fraudulent closing agreement reflecting an agreement with the IRS for the family to pay $2 million in taxes and penalties because only $4 million was purportedly repatriated. In fact, the IRS never entered into these agreements and the IRS employees who purportedly signed the documents never did so.
Each count of wire fraud carries a maximum penalty of 20 years in prison and a fine not to exceed $250,000. Each count of aggravated identity theft carries a statutory mandatory penalty of two years in prison, which must run consecutively to any other term of imprisonment, and a fine not to exceed $250,000.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. Attorney Sellinger credited special agents with the Office of the Treasury Inspector General for Tax Administration (TIGTA), Mid Atlantic Field Division, under the direction of Special Agent in Charge Andrew McKay; and IRS - Criminal Investigation, Newark Field Office, under the direction of Acting Special Agent in Charge Tammy Tomlins, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.
Jeremy Smallwood Sentenced to Life Imprisonment for Firearms and Drug OffensesRead the Press Release
GREENEVILLE, Tenn. – On January 12, 2023, Jeremy Smallwood, 38, of Kingsport, Tennessee, was sentenced to life imprisonment in federal prison, by the Honorable Clifton Corker, in the United States District Court for the Eastern District of Tennessee at Greeneville.
Following a three-day trial, ending on August 25, 2022, Smallwood was convicted of possession with the intent to distribute heroin, in violation of 21 U.S.C. § 841(a)(1); possession with the intent to distribute marijuana, in violation of 21 U.S.C. § 841(a)(1); possession of a firearm in furtherance of a drug trafficking offense, in violation of 18 U.S.C. § 924(c)(1)(A); and three counts of knowing possession of a firearm by a convicted felon, in violation of 18 U.S.C. § 922(g)(1).
The evidence presented at trial demonstrated that Smallwood, who had previously been convicted of multiple felony offenses, possessed firearms on three separate occasions. Additionally, at the time of his arrest by Sullivan County officers on August 17, 2020, he was in possession of not only two firearms but also heroin and marijuana that he intended to distribute.
The defendant qualified as an armed career criminal, which requires a minimum of 15 years up to life imprisonment, and was also designated a career offender under the federal sentencing guidelines. In determining the sentence, Judge Corker found that the defendant had obstructed justice by threatening witnesses with violence. The Court’s sentence reflected the defendant’s extensive criminal history, the seriousness of the offenses of conviction, and the need to protect the public from the dangers posed by this defendant.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee made the announcement.
The criminal indictment was the result of a joint investigation by the Sullivan County Sheriff’s Office, Kingsport Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorneys J. Gregory Bowman and Thomas McCauley represented the United States.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Jefferson County Felon Sentenced for Federal Firearms ViolationRead the Press Release
BEAUMONT, Texas - A Beaumont man has been sentenced to federal prison for a firearms violation in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Edward Lee Simien, 43, pleaded guilty on Sep. 9, 2022, to possession of a firearm by a prohibited person and was sentenced to 41 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to information presented in court, on April 24, 2022, local law enforcement officers were serving an arrest warrant on Simien, when they observed Simien enter a vehicle near the rear of his business. Officers attempted to conduct a traffic stop on Simien, however he fled from officers at a high rate of speed. Eventually Simien ran into the fence of a local business, disabling his vehicle. Simien then exited the vehicle with what officers observed was a firearm with an extended magazine in his hand. Simien fled on foot and threw the firearm nearby. Officers eventually took Simien into custody and recovered the firearm he discarded. Further investigation revealed Simien was a previously convicted felon and prohibited from owning or possessing firearms or ammunition. Simien was indicted by a federal grand jury on May 11, 2022.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Russell James.
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Indictment Charges Eight Members of Alleged D.C. Drug Gang with ConspiracyRead the Press Release
Defendants Arrested for Allegedly Peddling Cocaine, Heroin, Fentanyl , and PCP
WASHINGTON – An indictment was unsealed today charging eight individuals in a drug conspiracy. Agents with the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), and officers with the Metropolitan Police and Prince George’s County Police Departments arrested seven of the defendants yesterday.
Melvin Grayson, 49, of District Heights, MD, Christopher Wells, 44, of Oxon Hill, MD, Jimmy Davis a/k/a “Fatz,” 41, of Bowie, MD, Terrell Washington a/k/a “Turk,” 43, of Hyattsville, MD, Kenneth Watts, 55, of Upper Marlboro, MD, James Kinard a/k/a/ “Fat Rat,” 45, of Temple Hills, MD, Charles Cunningham, 56, of the District of Columbia, made an initial appearance today in U.S. District Court for the District of Columbia. The defendants are each charged with conspiracy to distribute and possession with intent to distribute 500 grams or more of cocaine, 100 grams of more of heroin, 40 grams or more of fentanyl, and one kilogram or more of phencyclidine. Tyrone Ragland a/k/a “Tech,” 54, of the District of Columbia, is also charged.
During the arrests and related search warrants on multiple residences, law enforcement recovered at least 8 firearms (including a ghost gun and shotgun), ammunition, drugs (including fake pills containing fentanyl, crack cocaine, powder cocaine, and PCP), drug paraphernalia, and more than $60,000 cash.
“The organizations peddling poison on our streets and in our communities need to know that they are on the radar of law enforcement and we intend to put them out of business,” said U.S. Attorney Matthew M. Graves. “Neither the drugs these groups spread nor the violence their operations attract will be tolerated.”
“This investigation demonstrates the collective commitment of the FBI, DEA, and MPD’s Violent Crime Impact Team (VCIT) to dismantling street crews who are the purveyors of the illicit drugs that drive the violent crime in our communities,” said Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office's Criminal and Cyber Division. “Together with our law enforcement partners, the FBI will continue to hold those accountable who traffic in the violence and narcotics responsible for causing the irreparable damage to the neighborhoods we all live and work in.”
“DEA’s top priority is combatting the current fentanyl crisis and the drug-related violence that is devastating the very foundation of our community and family structures,” said Jarod Forget, Special Agent in Charge of the DEA Washington Division. “Enforcement actions like this, along with our federal, state, and local partners, make a huge impact in our area and we will not stop working until we have rid our neighborhoods of these harms.”
“Each and every day, the men and women of the Metropolitan Police Department and our federal law enforcement partners continue to hold people accountable for committing crimes in the District of Columbia,” said Robert J. Contee III, Chief of the Metropolitan Police Department of the District of Columbia. “This investigation is yet another example of how local, regional, and federal law enforcement partners are making the region safer.”
The arrests followed a joint investigation by the FBI Washington Field Office Cross Border Task Force and the DEA Washington Field Office, with assistance from MPD’s Violent Crime Suppression Division and the Prince George’s County Police Department. The Cross Border Task Force is a part of the FBI’S Safe Streets Initiative and targets the most egregious and violent street crews operating in the District of Columbia.
This case is being investigated by the Washington Field Office of the FBI and DEA, the Metropolitan Police Department, and the Prince George’s County Police Department. Valuable assistance was provided by the U.S. Attorney’s Office for the District of Maryland and the Baltimore/Washington High Intensity Drug Trafficking Area (HIDTA) program.
This investigation 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 www.justice.gov/OCDETF.
It is being prosecuted by Assistant U.S. Attorneys Nihar Mohanty and George P. Eliopoulos of the U.S. Attorney’s Office for the District of Columbia.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.