Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
17 February 2023
Booneville Man Sentenced in Drug Trafficking CaseRead the Press Release
Oxford, MS – A Booneville man was sentenced today to nine years in prison for distribution of methamphetamine.
According to court documents, Willie Nichols, 39, of Booneville, Mississippi, pled guilty in the United States District Court for the Northern District of Mississippi to one count of conspiracy to distribute methamphetamine. Nichols was sentenced by U.S. District Court Judge Glen Davidson to 110 months for the conspiracy. He was further sentenced to 3 years of supervised release following his release from prison. Nichols is currently in custody.
Nichols was involved in a drug trafficking organization responsible for transporting large quantities of methamphetamine from Texas and distributing it throughout the Northern District of Mississippi. Nichols participated in the conspiracy by making multiple purchases of eight ounces of methamphetamine from the head of the drug trafficking organization for distribution throughout the Northern District of Mississippi. The investigation of this drug trafficking organization and its participants spanned over a year and is still ongoing. Nichols was indicted along with sixteen (16) other individuals.
The Drug Enforcement Administration and the Mississippi Bureau of Narcotics investigated the case as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program in partnership with state and local law enforcement. Agencies assisting with the investigation included the United States Marshal’s Service, the United States Postal Inspector’s Service, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Assistant U.S. Attorneys Kimberly M. Hampton and Feleica L. Wilson prosecuted the case
Bennington Man Sentenced for Firearm and Drug Trafficking CrimesRead the Press Release
United States Attorney Steven Russell announced that Matthew Culliver, 36, of Bennington, Nebraska, was sentenced today in federal court in Omaha, Nebraska, for distributing marijuana and possessing a firearm during a drug trafficking crime. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Culliver to 24 months’ imprisonment on the distribution count and 60 months for the firearms offense, consecutive, for a total sentence of 84 months. There is no parole in the federal system. After his release from prison, Culliver will begin a 4-year term of supervised release for each charge, to run concurrently.
On January 16, 2020, during a controlled buy at an Omaha gas station, a confidential informant, equipped with audio and visual recording equipment purchased 117 grams of marijuana and a Charter Arms .44 revolver from Culliver. This event was monitored by law enforcement. The marijuana was confirmed via laboratory analysis as to substance and weight.
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 Bureau of Alcohol, Tobacco, Firearms and Explosives and Omaha Police Department.
Attempted Child Sex Trafficker Convicted by Federal JuryRead the Press Release
SAN DIEGO – Keenon Green was convicted by a federal jury on Wednesday of Attempted Sex Trafficking of Children and Attempted Enticement of a Minor.
The jury trial began on Monday, and the jury received the case on Wednesday. The jury deliberated for an hour and fifteen minutes before announcing they had reached a verdict, finding Green guilty of both charges.
According to the evidence presented at trial, which included social media evidence, cell phone evidence, body-worn camera surveillance, and witness testimony, Green relentlessly sent direct messages to a social media user he knew as “Lexi” on Instagram, attempting to recruit her into prostitution despite responses from Lexi stating that she was in high school, that she was delayed responding to his messages because she was doing her biology homework, and then explicitly telling Green that she was 16 years old. Green continued to try to recruit Lexi to provide commercial sex services, advising her that he could provide protection on “the blade,” a dangerous destination for commercial sex activity that Green referred to as a “hoe stroll,” and that she would have to “only work the blade for a week max.” After that, Green’s messages indicated that he would provide her with false identification, post her advertisements on commercial sex websites, and then she could “charge 350 a hour and only be in there 30 mins max.” Because he believed her to be only 16 years old, he also offered to teach her how to drive. In exchange for his protection as a pimp, Lexi would be expected to earn $500 a night as a prostitute, and $1000 a night if they were out of town.
Ultimately, after working to recruit online Lexi for almost a month, Green arranged to meet her in person and bring her to Orange County, where business was “hella good.” Green told Lexi to bring “provocative stuff” and “heels” for the trip. The evidence presented showed that Green planned to have Lexi engage in commercial sex dates until she earned $1,000 for him before returning her to San Diego on Monday to attend high school. Unfortunately for Green, “Lexi” was an undercover deputy with the San Diego Sheriff’s Department. When Green arrived at the meeting point with feminine care items in his trunk, including hair products and Vagisil, he was greeted by law enforcement instead.
Post-arrest, Green acknowledged that he was “chasing money” and that as a pimp, he “ran” seven to nine other women. The evidence presented at trial reflected that Green’s recruitment and enticement efforts extended beyond “Lexi”; he reached out to other Instagram users simultaneously, describing what he could offer as a pimp and telling them their “anatomy is the most valuable thing on this earth” and he could help them “use it wisely.”
“Trafficking children for commercial sex is a scourge on our community,” said U.S. Attorney Randy Grossman. “This case demonstrates that proactive law enforcement efforts can stop these crimes before they happen, as well as holding offenders accountable. The U.S. Attorney’s Office is committed to working with law enforcement partners to prevent trafficking and deliver justice for victims.” Grossman thanked the prosecution team, the San Diego Human Trafficking Task Force, Homeland Security Investigations, and the San Diego Sheriff’s Department for their excellent work on this case.
“Human trafficking is a highly predatory crime and can be violent. Offenders prey upon youth and the most vulnerable in our community. The Sheriff's Department will continue to work with our local, state, federal and tribal partners to rescue and protect victims of this terrible crime."
“This conviction closes the door on this human trafficker responsible for wreaking havoc on the lives of young women,” said Chad Plantz, special agent in charge, HSI San Diego. “Unfortunately, we know there are still traffickers out there looking to exploit the most vulnerable among us. Cases like this one serve to strengthen our resolve to protect and defend the victims.”
DEFENDANTS Case Number 22-cr-187-CAB
Keenon Green Age: 35SUMMARY OF CHARGES
Attempted Sex Trafficking of Children – Title 18, U.S.C., Section 1591(a)
Minimum Penalty: 10 years
Maximum penalty: Life Imprisonment and $250,000 fineAttempted Enticement of a Minor – Title 18, U.S.C., Section 2422(b)
Minimum Penalty: 10 years
Maximum Penalty: Life Imprisonment and $250,000 fineAGENCIES
San Diego Human Trafficking Task Force
Homeland Security Investigations
San Diego Sheriff’s DepartmentThis case is the result of the ongoing efforts of the Violent Crime and Human Trafficking (VCHT) Section. Formed in 2019, the VCHT is tasked with leading collaborations between federal and local law enforcement in the investigation and prosecution of cases involving violent crimes, firearms and gang cases; sex trafficking and child exploitation; civil rights, and labor trafficking. The VCHT Section oversees the Southern District of California Coordinators for Project Safe Neighborhoods, Human Trafficking, and Project Safe Childhood. The VCHT Section also provides federal prosecutors to the downtown San Diego Violent Crimes Task Force-Gang Group, the North County Gang Task Force, and the East County Gang Task Force.
Asheboro Man Pleads Guilty to Felon in Possession of a FirearmRead the Press Release
GREENSBORO, N.C. - An Asheboro man on probation pleaded guilty on February 16, 2023, to a felony firearm offense.
Montrese Antwan Snuggs, age 35, pleaded guilty to felon in possession of a firearm, a violation of Title 18, United States Code, Sections 922(a)(g)(A) and 924(a)(2).
According to court-filed documents, Snuggs was on supervised probation after pleading guilty in 2021 to state charges for attempted trafficking heroin, possession with intent to sell or deliver a schedule II controlled substance, felony possession with intent to sell or deliver cocaine, and felony possession with intent to sell or deliver heroin.
Sentencing is scheduled to take place on May 30, 2023, at 9:30 am in Greensboro Courtroom Number Three before the Honorable Catherine C. Eagles. At sentencing, Snuggs faces a maximum sentence of 10 years in prison, a period of supervised release of up to three years, and monetary penalties.
Sandra J. Hairston, U.S. Attorney for the Middle District of North Carolina, made the announcement. Agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives, North Carolina Department of Public Safety, Randolph County Sheriff’s Office, and Asheboro Police Department investigated the case. The case is being prosecuted by Special Assistant U.S. Attorney Mary Ann Courtney.
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.
###
Armed Drug Dealer Sentenced to 5 Years in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that DAVON THOMAS, 29, of Hartford, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 60 months of imprisonment, followed by three years of supervised release.
According to court documents and statements made in court, on July 26, 2020, Hartford Police stopped a car Thomas was operating for motor vehicle violations. A search of the car revealed a loaded 9mm handgun and approximately 18 grams of crack cocaine packaged for distribution. Thomas was arrested on state charges at that time.
Prior to July 2020, Thomas was convicted in Connecticut and Georgia state courts of robbery offenses. In December 2020, while he was released on bond in his state case, Thomas was arrested in Massachusetts for possessing with intent to distribute narcotics. He was subsequently convicted and sentenced for that offense.
Thomas has been detained since his federal arrest on June 9, 2021. On September 14, 2022, he pleaded guilty to possession with intent to distribute cocaine base (“crack”).
This investigation was conducted by the Federal Bureau of Investigation’s Violent Crimes Task Force and the Hartford Police Department. The case was prosecuted by Assistant U.S. Attorney Margaret M. Donovan through the Justice’s Department’s Project Safe Neighborhoods (PSN) program.
PSN, the centerpiece of the Department of Justice’s violent crime reduction efforts, is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Ardmore Resident Sentenced for Robbery and Firearm Related Offenses in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced today that Tyler Cheyenne Ned, age 27, of Ardmore, Oklahoma, was sentenced to 140 months’ imprisonment after pleading guilty to two counts of Robbery in Indian Country, one count of Attempted Robbery in Indian Country, and one count of Use, Carry, Brandish and Discharge of a Firearm During and in Relation to a Crime of Violence.
The evidence showed that on or about May 17, 2021, the defendant walked up to three people smoking on the front porch of a home. The defendant produced a handgun and demanded that they empty their pockets. Two of the three then turned over items to the defendant. Not satisfied, the defendant asked if that was all they had, fired the gun into the ground, and said that he could or would take them out. The defendant fled after someone opened the front door.
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted the offenses because the defendant in this case is a member of a federally-recognized Indian tribe and the crimes occurred in Ardmore, Oklahoma, within the boundaries of the Chickasaw Nation Reservation, and within the Eastern District of Oklahoma.
The case was the result of an investigation by the Ardmore Police Department and the Federal Bureau of Investigation.
The Honorable John F. Heil, III, U.S. District Judge of the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the sentencing hearing. Ned was remanded to the custody of the United States Marshal to await commitment to a United States Bureau of Prisons facility to serve his non-paroleable sentence of incarceration.
Assistant United States Attorney Kevin Gross represented the United States.
Alabama Man Sentenced 17 years for Gun TraffickingRead the Press Release
OXFORD, Miss. – A Sheffield, Alabama man was sentenced on Thursday to more than 17 years in prison for burglarizing two gun stores, possessing stolen firearms, and transporting those firearms to Chicago and New Jersey.
According to court documents, Marquis Devon McCray, 34 years old, masterminded the February 17, 2019, burglary of Oxford Pawn Shop in which 35 firearms were stolen. McCray and his co-defendants then transported those guns to New Jersey where they were sold on the streets. Ten of those guns have been recovered by law enforcement in the Newark, New Jersey area after they were used in violent crimes. McCray also led a group in the August 1, 2019, burglary of TNT Pawn in Booneville, Mississippi. McCray and his co-defendants stole 49 firearms and transported those guns to Chicago. The group sold those guns on the streets in Chicago. A number of those guns have been involved in shootings in Chicago and recovered by Chicago Police.
During a sentencing hearing on Thursday, U.S. District Judge Michael P. Mills sentenced McCray to 210 months in prison and ordered him to pay restitution in the amount of $58,158.73 for the value of the stolen firearms and damage to the property.
“This defendant callously helped contribute to violence and misery in communities that were already struggling with extreme levels of gun violence,” said U.S. Attorney Clay Joyner. “He deserves every day of his sentence, and we are proud to stand with ATF and our state and local partners to stem the illegal flow of firearms.”
“Bringing our expertise and resources to target individuals and organizations that plague our communities with gun trafficking and violence is a top priority of ATF,” said ATF New Orleans Special Agent in Charge Kurt Thielhorn. “ATF will continue to work tirelessly to protect our communities and hold accountable those who threaten our safety.”
McCray’s co-defendant, Galvin Davis, was previously sentenced to 14 years for his role in the commission of one of the burglaries.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Oxford Resident Agency, Oxford Police Department, Booneville Police Department, Corinth Police Department, ATF Newark Resident Agency, and the Chicago Police Department. Assistant U.S. Attorney Parker S. King 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.
16 February 2023
Woodbridge Man Pleads Guilty to Pandemic Unemployment Insurance FraudRead the Press Release
ALEXANDRIA, Va. – A Woodbridge man pleaded guilty today to illegally obtaining pandemic unemployment benefits from the state of California.
According to court documents, from August 2020 to on or about September 28, 2020, Osman Kanu, 26, executed a scheme to defraud the California Employment Development Department (California EDD) by filing at least 15 fraudulent unemployment insurance (UI) applications using the personal identifying information (PII) of victims. On each of these applications, the defendant knowingly made false statements and false certifications to mislead California EDD. These included falsely submitting applications with the PII of real individuals without their permission or consent; falsely certifying the real individuals’ employment history and unemployment status; falsely certifying that the real individuals would receive the UI benefits; and falsely certifying the real individuals’ home addresses. Kanu committed this fraud from Virginia. He did not live in California during the scheme or qualify for California EDD benefits.
During a lawful traffic stop on Kanu’s vehicle, law enforcement discovered 15 visa debit cards with different names on each of them. After further investigation, federal law enforcement determined that the debit cards provided access to UI funds provided by California EDD and Kanu was arrested.
In total, California EDD funded $308,400 to the prepaid debit cards. The total intended loss was $628,708. In total, Kanu withdrew $178,000 from the prepaid debit cards between late August and September 2020.
The California EDD funds loaded on the prepaid debit cards were derived from the Pandemic Unemployment Assistance program, the Federal Pandemic Unemployment Compensation program, and from funds made available by the Federal Emergency Management Agency Administrator to provide grants to participating states, territories, and the District of Columbia to administer delivery of lost wages assistance. All these programs were intended to help workers suffering economic consequences from the COVID-19 pandemic.
Kanu is scheduled to be sentenced on June 1. He faces a maximum penalty of 30 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Troy Springer, Acting Special Agent in Charge of the National Capital Region, U.S. Department of Labor, Office of Inspector General, made the announcement after U.S. District Judge Michael E. Nachmanoff accepted the plea.
The Arlington County Police Department provided assistance in this case.
Assistant U.S. Attorney Carina A. Cuellar is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:23-cr-32.
Woman Who Lied About Romance Scam Sentenced to 2 Years in PrisonRead the Press Release
ST. LOUIS – U.S. District Judge Sarah E, Pitlyk on Thursday sentenced a woman from Ohio who lied to U.S. Postal Inspectors to conceal her involvement with romance scammers to two years in prison.
On April 29, 2020, U.S. Postal Inspectors found $50,000 that had fallen from an Express Mail package sent by Linda Matson, now 62, of Xenia, Ohio to a post office box being used in a romance fraud scheme. They later found a second package containing the same amount.
The inspectors reached out to Matson, who acknowledged that she had been scammed by someone claiming to be a lieutenant general in the U.S. Army. On May 10, 2020, three days after admitting she had been duped in that romance scam, Matson began inducing her relatives to send her money on behalf of her fictitious military officer. In an effort to conceal her continued involvement in the romance fraud scam and to expedite the return of the seized funds, on May 18, 2020 she sent multiple text messages to a postal inspector falsely claiming that she needed the money to buy posters and T-shirts to help find her missing 18-year-old niece. Matson also sent links to news articles and Facebook stories about a missing Ohio teenager to deceive the inspector into acting quickly.
Believing Matson’s statements to be true, between June 1, 2020 and August 3, 2020 relatives gave Matson $590,000 that was to be used to help the fictitious military officer obtain an imaginary portfolio containing cash and diamonds valued at $20,000,000. Instead of providing the funds to the United States Customs Service as she promised, Matson mailed the money to post office boxes controlled by the romance scammers.
Matson pleaded guilty in August to a charge of making false statements to a federal agent and admitted she intended to use the money for reasons she was concealing from the postal inspector. She also admitted lying to the inspector and the FBI.
In a related case, Bonmene Sibe and Ovuoke Frank Ofikoro pleaded guilty to conspiracy to commit a mail fraud and wire fraud scheme that used the same false claims about military officers to deceive women into mailing $844,070 to post office boxes in St. Louis. Judge Pitlyk sentenced Sibe, 43, to five years and three months in prison in May and Ofikoro, 43, to four years and two months in prison in June. Both men were also ordered to repay their victims.
The U.S. Postal Inspection service and the FBI investigated the case. Assistant U.S. Attorney Tracy Berry is prosecuting the case.
Westwood Man Pleads Guilty to Federal Charges for Running Surety Bond Scam that Caused $5.2 Million in Investor LossesRead the Press Release
LOS ANGELES – A Westwood man pleaded today to federal criminal charges for defrauding victims out of more than $5 million by purporting to sell bonds for large-scale construction and other projects, and for evading the payment of over $1.2 million in taxes.
Tommy Lester Watts, 63, a.k.a. “Michael Nesbeth,” “Michael Kent,” and “Alex Mason,” pleaded guilty to one count of transactional money laundering and one count of tax evasion.
According to his plea agreement, from September 2016 to September 2019, Watts falsely claimed to be experienced in and able to provide surety bonds and other financial guarantees for large-scale projects. Watts told victims that he would assist them in obtaining financing for their projects via his various companies, including the Sherman Oaks-based Source One Surety LLC. Watts misrepresented that any such bonds or guarantees were underwritten by well-known companies and banks, and that they were backed by assets in the millions or billions of dollars.
But Watts and his companies were not licensed to sell such bonds in California. And his claims about his experience, his clients – which purportedly included governments – his underwriting, and his supporting assets were not true. To make his scheme appear legitimate, Watts hijacked the corporate filings of other companies and created fake employees and accounts for underwriters and banks.
Watts caused victims to send his companies approximately $5,238,344, the majority of which he spent on personal items such as classic and luxury cars, rent for high-end apartments, and the purchase of luxury retail goods.
He also laundered victim payments through accounts held in the names of corporations that were not registered and used fake taxpayer identification numbers – and then used those accounts to spend victim funds as his own. He hid this income from the IRS in tax years 2017 through 2019, in which he failed to file any tax returns. Watts admitted in his plea agreement that he received a total of $4,683,430 in income that he failed to report to the IRS for those three tax years.
Watts has agreed to forfeit to the United States nearly $60,000 seized from two bank accounts he controlled, a Mercedes-Benz car and a Subaru SUV. He also has agreed to pay to the IRS a total amount of $4,226,535 in restitution, which includes at least $1,863,035 for his tax liabilities.
United States District Judge Maame Ewusi-Mensah Frimpong scheduled a September 8 sentencing hearing, at which time Watts will face a statutory maximum sentence of 10 years in federal prison for the transactional money laundering count and up to five years in federal prison for the tax evasion count.
The FBI, Homeland Security Investigations, IRS Criminal Investigation, and the California Department of Insurance investigated this matter.
Assistant United States Attorney Kristen A. Williams of the Major Frauds Section is prosecuting this case.
Westminster Woman Charged in Federal Indictment Alleging She Acted as ‘Money Mule’ Who Laundered Funds for CybercriminalsRead the Press Release
SANTA ANA, California – An Orange County woman has been charged in a six-count federal grand jury indictment alleging she laundered money directly sent from fraud victims who were tricked into sending the funds to financial accounts she controlled rather than to the victims’ intended recipients, the Justice Department announced today.
Serena Lieu, 55, of Westminster, is charged with three counts of money laundering and three counts of engaging in monetary transactions in property derived from specified unlawful activity. A federal grand jury returned the indictment on Tuesday.
Lieu was arrested without incident on Wednesday morning. She pleaded not guilty to the charges at her arraignment on Wednesday afternoon in United States District Court in Santa Ana and an April 11 trial date was scheduled in this matter. She was released from custody on $50,000 bond.
According to court documents, in 2019, law enforcement learned that a Lieu-controlled bank account received a wire transfer of $103,350 from a business email compromise (BEC) victim in the Dallas area. BEC is a scam that targets companies and individuals who perform legitimate transfer-of-funds requests. Cybercriminals using social engineering or malware impersonate one of the people involved in those money transfers to make the victim send the money to a criminal-controlled bank account. Once the fraud is detected, it frequently is too late to get the money back since the funds have been quickly moved to other bank accounts or used to buy cryptocurrency.
During a May 2019 interview, FBI agents advised Lieu – who has opened 11 bank accounts at seven separate financial institutions since 2017 – that she was moving fraud proceeds in and out of her various bank accounts. FBI agents then gave her a “money mule” warning letter, which she signed. A money mule is someone who transfers or moves illegally acquired money on behalf of someone else.
Despite the warning, Lieu allegedly continued trafficking fraud proceeds. Between July 2019 and April 2021, Lieu allegedly received more than $1.8 million into various bank accounts. These funds came directly from fraud victims who were deceived into sending the funds to Lieu-controlled bank accounts, rather than to the victims’ intended recipients, court documents state. After receiving this money, Lieu allegedly quickly withdrew or transferred it to various individuals or entities, including by converting the funds into cryptocurrency.
The indictment specifically alleges that Lieu transferred more than $560,000 from bank accounts she controlled to accounts at different banks and to Coinbase, a cryptocurrency exchange platform, from July 2020 to February 2021.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted on all counts, Lieu would face a statutory maximum sentence of 20 years in federal prison for each money laundering count and up to 10 years in federal prison for each illegal monetary transactions count.
The FBI and the United States Department of Health and Human Services Office of Inspector General investigated this matter.
Assistant United States Attorneys Carolyn S. Small of the Major Frauds Section and David C. Lachman of the General Crimes Section are prosecuting this case.
Vicksburg Man Sentenced to 25 Years for Producing Child PornographyRead the Press Release
GRAND RAPIDS, MICHIGAN — Mark Totten, the U.S. Attorney for the Western District of Michigan, announced that on Tuesday Virgil Chandler Knowles III, 47, of Vicksburg, Michigan was sentenced to 25 years in prison for the sexual exploitation of children and distribution of child pornography. U.S. District Judge Robert J. Jonker also ordered Knowles to spend 10 years on supervised release after his confinement.
“My office is committed to protecting our most vulnerable and holding predators accountable for sexually exploiting our children,” said U.S. Attorney Mark Totten. “As soon as an undercover officer identified Mr. Knowles in a secret pedophile chat group, law enforcement moved swiftly to arrest him. To anyone exploiting children the message is clear: We know how to find you and we will hold you accountable.”
“Predators who create child pornography victimize children twice – first by sexually assaulting them and again by sharing it with others on the Internet,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “The message sent at sentencing should be clear: Protecting our children from predators is a top priority for the FBI and law enforcement agencies everywhere. We are committed to identifying those who exploit children and bringing them to justice.”
The investigation and prosecution of Mr. Knowles was made possible through Project Safe Childhood (PSC), a multi-agency, nationwide effort begun by the Department of Justice in 2006. The project facilitates information sharing and joint-agency investigations among local, state, and federal authorities in order to combat the sexual exploitation of children. In this case, a local Task Force Officer based near Washington D.C. was the first to identify Knowles as a likely producer of child pornography. The investigator was able to relay the information he uncovered in near real-time using Project Safe Childhood communication channels. This allowed members of the FBI who were stationed near Knowles to develop the investigation further and identify Knowles’s precise location. A prosecutor assigned to the Western District of Michigan’s PSC response team was able to work with the FBI and obtain local search and arrest warrants for Knowles within hours of receiving intelligence from agency partners.
###
Utah Woman Sentenced for Possessing Nearly Five Pounds of Cocaine at Omaha Bus StationRead the Press Release
United States Attorney Steven Russell announced that Chaminque Porter, 35, of Utah, was sentenced in federal court in Omaha, Nebraska, on February 15, 2023, for Possession with Intent to Distribute Cocaine. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Porter to 12 months and 1 day imprisonment. She was also ordered to serve two years of supervised release after her release from prison. There is no parole in the federal system.
On December 21, 2021, Porter and her boyfriend, Elias Ramirez Jr., were traveling from Utah to Minnesota by bus. The bus had a scheduled stop in Omaha. Drug Enforcement Administration agents regularly patrol the bus station. On that day, they noticed a suspicious suitcase in Porter and Ramirez’s possession. Porter and Ramirez denied ownership of the bag and denied knowing each other. Agents searched the “abandoned” suitcase and located two packages containing nearly five pounds of cocaine. Video footage confirmed Porter and Ramirez loaded their bags, including the suitcase containing the cocaine, at an earlier bus stop.
Ramirez pled guilty and was sentenced on January 20, 2023, to 60 months’ imprisonment.
This case was investigated by the Drug Enforcement Administration.
United States to Repatriate Nearly $1 Million to Federal Republic of NigeriaRead the Press Release
The Department of Justice announced today that it is sharing approximately $954,807 with the government of the Federal Republic of Nigeria (Nigeria) in accordance with an agreement between the governments to repatriate assets the United States forfeited that were traceable to the kleptocracy of former Governor of the State of Bayelsa in Nigeria, Diepreye Solomon Peter Alamieyeseigha.
“Today’s result would not have been possible without significant cooperation between the United States and its international partners in our common fight against corruption and the laundering of corruption proceeds,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Our repatriation of the forfeited funds is an illustration of the United States’ commitment – through its Kleptocracy Asset Recovery Initiative – to making the victims of corruption whole.”
Alamieyeseigha, known as DSP, now deceased, served as the elected governor of the oil-producing Bayelsa State from 1999 until his impeachment in 2005. As alleged in the U.S. forfeiture complaints, DSP’s official salary for this entire period was approximately $81,000, and his declared income from all sources during the period was approximately $248,000. While he was governor, DSP accumulated property worth millions of dollars through corrupt and illegal activities, including property in Rockville, Maryland.
DSP acquired the Rockville property during his first term as governor of Bayelsa State with funds obtained through corruption, abuse of office, money laundering, and other violations of Nigerian and U.S. law. Title to the property was transferred to Solomon & Peters Ltd., a shell corporation controlled by DSP. The company, instead of DSP himself, pleaded guilty to money laundering in Nigeria in 2007.
In May 2013, U.S. District Court Judge Roger W. Titus of the District of Maryland granted a motion for a default judgment and issued a final decree of forfeiture following an investigation by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations’ (HSI) Asset Identification and Removal Group in Baltimore. The order extinguished all prior title and authorized forfeiture of the private residence located in Rockville to the United States and the property was sold. In a related action in the District of Massachusetts, the Justice Department and HSI successfully forfeited approximately $400,000 from an investment account traceable to DSP.
Under the agreement announced today, the United States agrees to transfer 100% of the net forfeited assets to Nigeria to support improvements in health care centers across Bayelsa State in the form of rehabilitation, refurbishment, and equipping such centers as requested by the Bayelsa government. The agreement includes key measures to ensure transparency and accountability, including consultation with the governments of the United States and Bayelsa State, financial review by an independent auditor whose reports will be published periodically, and monitoring by an independent civil society organization with expertise in project management whose reports will also be published periodically. Specifically, the agreement requires consultation with the government of Bayelsa State and the United States in the recruitment and competitive selection of implementors and monitors, and their work plans and budgets. The agreement also precludes the expenditure of funds to benefit alleged perpetrators of the corruption. The agreement reflects the sound principles for ensuring transparency and accountability adopted at the Global Forum on Asset Recovery (GFAR) in December 2017 in Washington, D.C., which the United States and United Kingdom hosted with support from the Stolen Asset Recovery Initiative of the World Bank and United Nations Office on Drugs and Crime.
The department appreciates the extensive assistance provided by the Federal Government of Nigeria in this case. The department also thanks the Justice Department’s Office of International Affairs and HSI as well as the U.S. Department of State for its assistance in negotiating and facilitating the return in this matter.
This case was brought under the Kleptocracy Asset Recovery Initiative by a team of dedicated prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section working in partnership with the FBI. Through the Kleptocracy Asset Recovery Initiative, the Department of Justice and federal law enforcement agencies seek to safeguard the U.S. financial system from criminal money laundering and to recover the proceeds of foreign official corruption. Where appropriate and possible, the department endeavors to use recovered corruption proceeds to benefit the people harmed by acts of corruption and abuse of public trust.
Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected].
Two Wake County Men Plead Guilty to COVID-19 Fraud SchemeRead the Press Release
RALEIGH, N.C. – Albert Eugene Miller, Jr., 58, and Jonathan Fleming, 60, both pleaded guilty today to conspiracy to commit wire fraud for fraudulently obtaining Paycheck Protection Act (“PPP”) COVID-19 loans. They each face up to 20 years in prison.
“These two defendants, along with their network of co-conspirators, took taxpayer money meant to help struggling small businesses during a global pandemic,” said U.S. Attorney Michael Easley. “We are investigating and prosecuting those who steal from public programs intended to keep legitimate businesses afloat.”
According to each charged criminal information, both defendants conspired with Edward Whitaker, Schunda Coleman, and others to obtain fraudulent PPP loans on behalf of their respective businesses. Whitaker and Coleman pled guilty on January 19, 2023 for their role in operating a nation-wide scheme to help people across the country commit millions of dollars of PPP fraud.
According to charging documents and information summarized in court, Whitaker and Coleman created fraudulent supporting documents and applications for PPP loans which they provided to Miller and Fleming in exchange for 25% of the total loan proceeds. The fraudulent applications falsified the number of employees and gross wages being paid prior to the COVID pandemic, in order to help qualify for PPP loans. Following the disbursement of the PPP loans, Whitaker allegedly instructed Miller and Fleming as to how to make it appear that the PPP loans were being paid out to employees, when in reality the money was transferred back to Miller and Fleming, respectively. The fraudulent payroll records were then allegedly submitted to the Small Business Administration (SBA) to obtain 100% loan forgiveness.
Late last year, Quentin Jackson pled guilty in the same conspiracy which included the recruitment of numerous individuals (such as Miller and Fleming) in the Eastern District of North Carolina to use Whitaker and Coleman to obtain fraudulent PPP funds.
“The Paycheck Protection Program was designed to help small businesses facing financial difficulties during the COVID-19 pandemic,” said Donald “Trey” Eakins, Internal Revenue Service (IRS) Criminal Investigation Special Agent in Charge in the Charlotte Field Office. “Through our partnership with the U.S. Attorney’s Office and our federal law enforcement partners, IRS Criminal Investigation Special Agents will continue to aggressively pursue individuals who try to exploit federal relief programs for their personal gain.”
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was designed to provide emergency financial assistance to the millions of Americans who were economically suffering from the COVID-19 pandemic. The CARES Act and additional appropriations authorized up to $649 billion in forgivable loans to small businesses through the Paycheck Protection Program (PPP). Financial institutions issued the PPP loans, which were guaranteed by the SBA.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after United States Magistrate Judge Robert T. Numbers II accepted the pleas. Internal Revenue Service (IRS) Criminal Investigation is leading the investigation, and Assistant U.S. Attorney David G. Beraka is prosecuting the cases.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case Nos. 5:22-cr-00290-D and 5:22-cr-00337.
###
Two More Individuals Sentenced to 10 Months for Conspiring to Stage Automobile Accidents in Order to Defraud Insurance and Trucking CompaniesRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that JOHN DIGGS (“J. DIGGS”), age 62, of Thibodaux, Louisiana, and JAMES WILLIAMS (“WILLIAMS”), age 68, of Gibson, Louisiana, were both sentenced February 14, 2023 to 10 months in prison by U.S. District Court Judge Lance M. Africk after they pleaded guilty to Conspiracy to Commit Mail Fraud, in violation of Title 18, United States Code, Section 371, arising out of staged automobile accidents with tractor-trailers occurring in New Orleans.
According to court records, J. DIGGS and WILLIAMS conspired with passengers Lois Russell (“Russell”) and Tanya Givens (“Givens”) to stage an accident with a tractor-trailer at the intersection of Chef Menteur Highway and Downman Road. Damien Labeaud (“Labeaud”) and Roderick Hickman (“Hickman”), who have already pleaded guilty to staging other accidents, also participated in this accident. Hickman, while driving Russell’s car, intentionally struck the 18-wheeler and then fled the scene with Labeaud. Russell advised NOPD that she was the driver and she, along with Givens, J. DIGGS and WILLIAMS, made claims for personal injuries. In total, the victim trucking and insurance companies paid out $272,500.00 for these fraudulent claims.
In addition to prison, J. DIGGS and WILLIAMS were both sentenced to 3 years of supervised release and a restitution hearing was set for April 5, 2023. Judge Africk also imposed upon each a $100 mandatory special assessment fee.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Edward J. Rivera, Assistant U.S. Attorney Maria Carboni, Assistant U.S. Attorney Brandon Long, and Unit Chief Brian M. Klebba, all the Financial Crimes Unit.
* * *
Two Members of Cape Cod Heroin Trafficking Ring Sentenced to Prison for Violent KidnappingRead the Press Release
BOSTON – Two members of a Cape Cod heroin trafficking ring have been sentenced to 10 years and nine years in prison for their roles in a violent kidnapping captured on video.
Albert Lee, also known as “Mook,” 32, of Pawtucket, R.I., was sentenced today by U.S. District Court Judge Allison D. Burroughs to nine years in prison and three years of supervised release. In September 2022, Lee pleaded guilty to one count of conspiracy to commit kidnapping. Cameron Cartier, 28, of Buzzards Bay, was sentenced on Feb. 14, 2023 by Judge Burroughs to 10 years in prison and three years of supervised release. In October 2022, Cartier pleaded guilty to one count of conspiracy to commit kidnapping and one count of conspiracy to obstruct justice by retaliating against a witness, victim or informant. Lee and Cartier were charged in a superseding indictment that included co-defendants Edwin Otero, Justin Joseph and Anthony Basilici in March 2020.
In 2018, law enforcement began investigating a Cape Cod drug trafficking organization led by Otero. The investigation revealed that Otero and other members of the crew distributed large quantities of heroin throughout Cape Cod, including in Hyannis, Mashpee, Centerville, Osterville and in Pawtucket, R.I. In April 2019, as part of the conspiracy, Otero lured a known victim from Massachusetts to Rhode Island, where Otero, Cartier, Lee, Joseph, and Basilici kidnapped and held him, stripped him naked, assaulted him and threatened to rape him. The purpose of this kidnapping and assault was to retaliate against the victim because the crew erroneously believed the victim was cooperating with law enforcement. Basilici filmed the kidnapping and assault on Otero’s cell phone. Otero’s phone was later recovered with the video on it.
On Jan. 18, 2023, Otero and Joseph each pleaded guilty to conspiracy to distribute and possession with intent to distribute 100 grams or more of heroin; possession of a firearm in connection with a drug trafficking crime; kidnapping conspiracy; and witness retaliation conspiracy. Otero also pleaded guilty to being a felon in possession of a firearm and witness intimidation. They are both scheduled to be sentenced on April 27, 2023.
On Jan. 26, 2023, after a week-long trial, Basilici was convicted by a federal jury of conspiracy to distribute and possession with intent to distribute 100 grams or more of heroin; possession and discharge of a firearm in connection with a drug trafficking crime; kidnapping conspiracy; witness intimidation; and witness retaliation conspiracy. He is scheduled to be sentenced on April 26, 2023.
United States Attorney Rachael S. Rollins; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Barnstable Police Chief Matthew K. Sonnabend; and Barnstable County Sheriff James M. Cummings made the announcement. Assistant U.S. Attorneys Christopher Pohl and Lauren Graber of Rollins’ Criminal Division prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Two Defendants Sentenced for Conspiring to Distribute Methamphetamine in Central Alabama PrisonRead the Press Release
Montgomery, Alabama – Today, United States Attorney Sandra J. Stewart announced that two defendants received prison sentences for conspiring to bring methamphetamine into an Alabama prison. On February 1, 2023, a judge sentenced Lamar Graves, Jr., 42, from Attala, Alabama, to 168 months in prison, followed by five years of supervised release. Previously, on January 27, 2023, Derrick Antwon Traylor, 44, a resident of Gadsden, Alabama, received a sentence of 262 months in prison, followed by five years of supervised release. Before their sentencing hearings, Graves and Traylor pleaded guilty to conspiracy to possess methamphetamine with the intent to distribute.
According to court records, sometime prior to 2019, the Drug Enforcement Administration (DEA) and the Alabama Department of Corrections (ADOC) began to suspect that Graves, then an inmate at Staton Correctional Facility in Elmore, was involved in an effort to bring drugs into the facility. Further investigation revealed that Graves was using friends and family members, including Traylor, who were not incarcerated to assist him in smuggling drugs into the prison. Two other co-defendants have federal cases that are still pending.
“The presence of drugs in a prison creates an immediate threat to the safety of prisoners and corrections officers alike,” stated United States Attorney Stewart. “Corrections officers have challenging jobs. Those challenges increase exponentially when inmates are using methamphetamine and other dangerous controlled substances. I am grateful for the work of the DEA and the Alabama Department of Corrections in identifying this drug trafficking organization and putting a stop to its activities.”
“The presence of illegal drugs is a challenge faced by correctional systems across the country,” said Alabama Department of Corrections Commissioner John Hamm. “Criminals often go to significant lengths to bypass our security systems and seek to introduce drugs and other types of illegal contraband into our system. The ADOC is committed to enforcing our zero-tolerance policy on contraband and works very hard to eradicate it from our facilities, including referral for prosecution of those interdicted.”
“The successful prosecution and sentencing of members of this drug trafficking organization should put on notice those who engage in this type of illegal activity,” stated DEA Assistant Special Agent in Charge Towanda Thorne-James. “DEA will continue to collaborate with our state and local counterparts to ensure that those who attempt to flood the prison system with illicit substances face federal charges and a lengthy prison sentence.”
As noted, this case was investigated by the DEA and the Alabama Department of Corrections Law Enforcement Services Division. Assistant United States Attorney Mark E. Andreu is prosecuting the case.
Trotwood man sentenced to more than 12 years in prison for methamphetamine, fentanyl, cocaine crimesRead the Press Release
DAYTON, Ohio – Rasean J. Piner, 35, of Trotwood, Ohio, was sentenced in U.S. District Court to 151 months in prison for possessing with the intent to distribute bulk amounts of narcotics.
Piner admitted in a May 2022 plea agreement to possessing with the intent to distribute 500 grams or more of methamphetamine, 500 grams or more of cocaine and 40 grams or more of fentanyl.
According to court documents, in May 2021, Dayton police officers executed a search warrant at Piner’s residence on Patrick Street in Trotwood. They discovered drug paraphernalia and processing equipment in the kitchen and a firearm in the primary bedroom.
In total, officers seized more than 1.7 kilograms of methamphetamine, 842 grams of cocaine and approximately 42 grams of fentanyl.
Investigators also discovered more than $8,000 in cash, some of which was hidden in the bathroom wall.
Piner was indicted by a federal grand jury in July 2021.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Dayton Police Chief Kamran Afzal and members of the FBI’s Southern Ohio Safe Streets Task Force announced the sentence imposed on Feb. 15 by U.S. District Court Judge Michael J. Newman. Assistant United States Attorney Ryan A. Saunders is representing the United States in this case.
This investigation was conducted as part of an Organized Crime Drug Enforcement Task Force (OCDETF) initiative. OCDETF identifies, disrupts and dismantles criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about OCDETF can be found at https://www.justice.gov/OCDETF.
This case was prosecuted as part of the Department of Justice’s Project Safe Neighborhoods (PSN). Through the violent-crime reduction program, a broad spectrum of stakeholders works 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.
# # #
Tampa Man Sentenced to 30 Months in Federal Prison for COVID-19 FraudRead the Press Release
Tampa, FL – U.S. District Judge Kathryn Kimball Mizelle has sentenced Jorge Gutierrez Echeverria (34, Tampa) to two years and six months in federal prison for wire fraud in connection with his fraudulent receipt of Covid-19 funds. The court also ordered Gutierrez Echeverria to forfeit $149,900, which are traceable to proceeds of the offense. Gutierrez Echeverria had pleaded guilty on August 11, 2022.
According to court documents, in July 2020, Gutierrez Echeverria falsely and fraudulently claimed in a federal application for Covid-19 funding that he was the sole proprietor of a business suffering an economic injury due to the Covid-19 pandemic when in fact Gutierrez Echeverria had no such business. He further claimed that he had no felony convictions when in fact he had two felony convictions. Gutierrez Echeverria submitted a fraudulent 2018 tax return, including a fraudulent Schedule C, in support of his application as purported proof that his claimed business was real. As a result of his false and fraudulent representations, Gutierrez Echeverria received a $149,900 loan to which he was not entitled. He spent the money on extravagant personal expenses.
“The Secret Service remains committed to holding individuals accountable that attempt to exploit taxpayer funded pandemic relief programs,” said Special Agent in Charge Robert Engel of the United States Secret Service – Tampa Field Office. “The outcome of this case is the direct result of the coordination with our partners at the Florida Department of Law Enforcement.”
This case was investigated by the U.S. Secret Service and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Jennifer L. Peresie.
St. Paul Felon Pleads Guilty to Illegal Possession of FirearmsRead the Press Release
MINNEAPOLIS – A St. Paul man has pleaded guilty to illegal possession of firearms, announced United States Attorney Andrew M. Luger.
According to the defendant’s guilty plea and court documents, on May 28, 2019, Travis Malik Galtney, 38, possessed two semiautomatic pistols and an extended magazine. He also possessed a semiautomatic pistol, with an attached high-capacity magazine, at the time of his arrest on January 8, 2020. Because Galtney has previous felony convictions in Ramsey and Olmsted Counties, he is prohibited from possessing a firearm or ammunition at any time.
Galtney pleaded guilty today in U.S. District Court before Judge Michael J. Davis to two counts of possessing a firearm as a felon. A sentencing hearing has not yet been scheduled.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the St. Paul Police Department and the United States Marshals Service.
Assistant U.S. Attorneys Benjamin Bejar and Chelsea A. Walcker are prosecuting the case.
St. Charles County Man Who Hid Camera in Bathroom Sentenced to 16 ½ Years for Child PornographyRead the Press Release
ST. LOUIS – U.S. District Judge Stephen R. Clark on Thursday sentenced a St. Charles County, Missouri man who received and distributed child pornography via social media and placed a hidden camera in a bathroom to record nude minors to 16 and one-half years in federal prison.
Scott A. Falkner, 38, will also have to pay $21,000 to victims depicted in the child sexual exploitation material.
A search of the Walker's home on March 21, 2021 led to the discovery of 423 images and 91 videos containing child sexual abuse material on his cellphone, all but five of which Falkner had downloaded. Falkner admitted creating those five videos by secretly recording girls ranging in age from 10 to 17 in his bathroom.
The investigation was triggered when Falkner sent six files containing child pornography via Kik Messenger, leading to a tip to the National Center for Missing and Exploited Children.
Falkner pleaded guilty in January to a felony charge of receiving child pornography.
“We are proud to have such strong law enforcement partnerships to be able to bring child predators like Scott Falkner to justice,” said Special Agent in Charge Jay Greenberg of the FBI St. Louis Division. “Unfortunately, exploitation of children is so despicably prolific, the FBI relies on task forces where local law enforcement officers are deputized as special federal officers to help address such crimes.”
The case was investigated by the St. Charles County Cyber Crime Task Force and Missouri Internet Crimes Against Children in partnership with the FBI St. Louis Child Exploitation Task Force. Assistant U.S. Attorney Jillian Anderson is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
South Carolina Man Pleads Guilty to CarjackingRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on February 14, 2023, defendant WILLIAM NELSON, age 21, a resident of South Carolina, pled guilty before U.S. District Court Judge Jay C. Zainey to committing a carjacking in New Orleans, Louisiana on January 2, 2022.
In Count 1 of the indictment, NELSON is charged with a carjacking, in violation of Title 18, United States Code, Section 2119. NELSON faces a maximum sentence of 15 years imprisonment, a fine of up to $250,000, a period of up to 3 years supervised release, and a mandatory special assessment fee of $100.00. NELSON’S sentencing is scheduled for May 16, 2023.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation, the Louisiana State Police, and the New Orleans Police Department. The case is being prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime Unit.
* * *
Seven Defendants Charged with Million-Dollar Identity Theft and Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Daniel B. Brubaker, Inspector in Charge of the New York Division of the United States Postal Inspection Service (“USPIS”), J. Russell George, the Treasury Inspector General for Tax Administration (“TIGTA”), Francis J. Russo, the Director of the New York Field Office of U.S. Customs and Border Protection (“CBP”), and Ivan J. Arvelo, Special Agent in Charge for Homeland Security Investigations ("HSI") New York, announced today the unsealing of a seven-count Complaint charging seven participants in an identity theft and fraud scheme, through which they are alleged to have stolen at least $1 million from victims’ bank accounts. Six of the seven defendants were arrested yesterday and today in Georgia, Florida, and Illinois. GILBERT HUERTAS, a/k/a “Bully,” and ANAYDA HUERTAS were presented in federal court yesterday in the Middle District of Florida. CHRISTOPHER PEEPLES, a/k/a “Jerry Chen,” a/k/a “Reginald Griffin,” a/k/a “Charles Richardson,” a/k/a “Robert Wolff,” and MALCOLM REASONOVER, a/k/a “Uncle,” were presented in federal court yesterday in the Northern District of Illinois, and DEMETRIUS TORRY, a/k/a “Meechie,” will be presented today in the Northern District of Illinois. KHALIL BEY-MUHAMMAD will be presented today in federal court in the Northern District of Georgia. GERALD LEE, a/k/a “Pimp,” remains at large.
U.S. Attorney Damian Williams said: “These defendants allegedly developed a sophisticated scheme to steal money from innocent victims’ bank accounts. The defendants allegedly stole victims’ identities, hijacked their bank accounts and cellphones, brazenly impersonated them at bank branches throughout the country, and drained their accounts. Thanks to our partners at USPIS, TIGTA, CBP, and HSI, the defendants’ alleged crimes have been brought to a halt.”
USPIS Inspector in Charge Daniel B. Brubaker said: “Peeples allegedly led a crew that perpetrated a complex, multi-state fraudulent scheme that involved identity theft and bank account takeovers. But today, Peeples and the alleged actions of his co-conspirators are leading them all straight to federal court. These alleged criminals are charged with draining their victims’ accounts of a fortune. In some cases, allegedly stealing tens of thousands of dollars at a time. As part of the charged scheme, Peeples and his crew allegedly stole the identities of unknowing third parties, to hide their crimes behind the good names of their victims. In total, they allegedly caused at least a $1 million loss, to first the individual victims, and then the banking industry. We hope all the fraudsters out there are listening: if you plan to commit identity theft and bank fraud, Postal Inspectors and our law enforcement partners will use every resource at our disposal to investigate you and bring you to justice – and we are very good at it.”
TIGTA Treasury Inspector General J. Russell George said: “The Treasury Inspector General for Tax Administration is committed to aggressively pursuing those individuals who use Internal Revenue Service systems to facilitate their fraudulent activity. Fraudulent schemes such as this undermine the integrity of tax administration. We would like to thank the United States Postal Inspection Service, Customs and Border Protection, Homeland Security Investigations, and the United States Attorney’s Office for their continued partnership in the pursuit of justice.”
CBP Director Francis J. Russo said: “U.S. Customs and Border Protection is proud to have contributed to this ongoing investigation that resulted in the takedown of an elaborate conspiracy to defraud innocent victims. CBP will continue to collaborate with our law enforcement partners to uncover and dismantle nefarious criminal networks that seek to defraud innocent victims for illicit gain.”
HSI Special Agent in Charge Ivan J. Arvelo said: "As technology has advanced and become part of our everyday lives, fraudsters too have evolved with the times. Instances of internet based identity theft are on the rise and criminal organizations falsely operate under the impression that they are immune from prosecution. These arrests should send a clear message that HSI and our partners will continue to work tirelessly to identify these fraud crews no matter where they may be located and aggressively pursue justice for innocent victims.”
According to the allegations in the Complaint:[1]
Since in or about 2020, law enforcement has been investigating a fraud crew (the “Crew”) led by CHRISTOPHER PEEPLES and whose members also include KHALIL BEY-MUHAMMAD, GERALD LEE, MALCOLM REASONOVER, DEMETRIUS TORRY, GILBERT HUERTAS, and ANAYDA HUERTAS.
From at least 2020 up to and including at least 2022, CHRISTOPHER PEEPLES, and/or KHALIL BEY-MUHAMMAD, purchased or otherwise obtained, through the Internet, personally identifiable and financial information belonging to victims of their scheme. Such information would generally include victims’ names, dates of birth, home addresses, social security numbers, driver’s license numbers, bank account information (sometimes including passwords), and phone numbers (the “Stolen Information”).
Once PEEPLES and/or BEY-MUHAMMAD obtained Stolen Information for a victim, they would provide that information to co-conspirators responsible for forging identification documents (the “ID Forgers”). Using the Stolen Information, the ID Forgers would manufacture a counterfeit driver’s license and sometimes a secondary form of false identification (each a “Fake ID”) in the victim’s identity. If the Fake ID was a form of photo identification, it would bear the photograph of one of the Crew’s members, typically LEE, REASONOVER, or ANAYDA HUERTAS.
In some cases, the Crew would take over the victim’s phone number through a “SIM swap” fraud — that is, by tricking the victim’s cellphone service provider to switch service for the victim’s cellphone number to a SIM card or cellphone controlled by the Crew. Members of the Crew would either impersonate the victim and claim that the victim’s existing cellphone had been lost or would enlist the assistance of corrupt cellphone store employees who would agree to process the SIM swap in exchange for payment. The purpose of the SIM swap was to take control of the victim’s cellphone number in order to gain access to the victim’s bank accounts — for example, to receive two-factor authentication or security text messages intended for the victim.
In some cases, the Crew would use the Stolen Information to log into victims’ online banking profiles, create new accounts in a victim’s name at the banks, and transfer funds from a victim’s existing accounts to the newly created accounts. The purpose of doing so was to divide the victims’ funds among as many bank accounts as possible and steal those funds through smaller withdrawals, which would be less likely to attract scrutiny from individual bank tellers processing single withdrawals in a single account.
Following the preparatory steps described above, the Crew would fly to a city in the United States to fraudulently withdraw funds from victims’ accounts over a period of days. During these trips, a Crew member (the “Runner”) would enter different bank locations impersonating a particular victim. The Runner would bring Fake IDs in the victim’s identity (and bearing a photograph of the Runner). At the teller window, the Runner would request a withdrawal, typically for less than $5,000 at a time to avoid triggering heightened bank scrutiny. In cases in which the Crew also obtained a “SIM-swapped” cellphone, that cellphone could also be used to intercept and impersonate the victim in response to the bank’s identification verification procedures. After a successful withdrawal, the Runner — and any Crew members participating in that trip — would drive to another bank branch location nearby to repeat the process until the victim’s bank accounts were substantially drained of funds. On a given trip, the Crew typically targeted multiple different victims’ accounts and typically stole tens of thousands of dollars or more.
The Crew has stolen at least approximately $1 million from bank accounts belonging to victims.
* * *
PEEPLES, 33, of Chicago, Illinois, BEY-MUHAMMAD, 25, of Oswego, Illinois, LEE, 64, of New York, New York, REASONOVER, 56, of Chicago, Illinois, TORRY, 33, of Chicago, Illinois, GILBERT HUERTAS, 28, of Tampa, Florida, and ANAYDA HUERTAS, 51, of Tampa, Florida, are each charged with one count of conspiracy to commit wire and bank fraud, which carries a maximum sentence of 30 years in prison; one count of conspiracy to commit access device fraud, which carries a maximum sentence of five years in prison; and one or more counts of aggravated identity theft, which carries a mandatory sentence of two years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by a judge.
Mr. Williams praised the outstanding investigative work of the USPIS, TIGTA, CBP, and Special Agents and Analysts of the United States Attorney’s Office for the Southern District of New York. Mr. Williams also thanked the HSI New York Darkweb and Cryptocurrency Task Force for their assistance in this matter.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Jun Xiang, Matthew R. Shahabian, and Justin Horton are in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
Savage Life Boys Gang Members Found Guilty of Racketeering ChargesRead the Press Release
DAVENPORT, IA – A federal jury convicted Davenport men, Najawaun Marcus Quinn, 26, and Dimetri Alexander Smith, 30, yesterday following a 7-day jury trial for racketeering related charges. Quinn was convicted of Assault With a Dangerous Weapon in Aid of Racketeering, Using and Carrying a Firearm During and In Relation to a Crime of Violence, and Felon in Possession of a Firearm. Smith was convicted of two counts of Assault With a Dangerous Weapon in Aid of Racketeering and two counts of Using and Carrying a Firearm During and In Relation to a Crime of Violence.
According to court documents and evidence presented at trial, in 2016 and 2017, as members of Savage Life Boys (SLB), a Davenport-based street gang, Quinn and Smith were involved in multiple shootings, including at a residence on the 5400 block of North Division Street in October 2016, at the NorthPark Mall in January 2017, and at Centennial Park in April 2017. These shootings were due to a feud with a rival gang and responses to perceived disrespect to the SLB gang.
Quinn and Smith were also involved in a February 2017 homicide at the Hotel Davenport for which Darion Gardner, 27, of Davenport, another SLB member, pleaded guilty to racketeering related charges and was sentenced to 450 months in prison.
Quinn and Smith committed these acts with the intent to maintain or increase position in the SLB gang.
Quinn and Smith will be sentenced at a later date.
United States Attorney Richard D. Westphal stated “We will continue to pursue and aggressively prosecute those individuals and groups of individuals that choose to commit violent crimes. This investigation, trial and hard work of our partners at the Davenport Police Department exemplifies our joint commitment to using every tool available to combat gun violence and protect the communities we serve.”
Davenport Police Chief Jeffery E. Bladel said “The tremendous work of our investigators and federal partners delivered justice for those impacted by these violent crimes. This case demonstrates the outstanding partnership and collaboration between federal prosecutors and local law enforcement that is vital to keeping our community safe. The Davenport Police Department is dedicated to the safety and wellbeing of our community and bringing those who commit violent crimes to justice.”
Rushville Woman Sentenced to 15 Years in Federal Prison for Methamphetamine DealingRead the Press Release
INDIANAPOLIS- Jacqueline Anderson, 37, of Rushville, Indiana, was sentenced to 15 years in federal prison for possession of methamphetamine with intent to distribute.
According to court documents, on May 6, 2021, Rush County Sheriff’s Deputies stopped Jacqueline Anderson after observing a traffic violation. As officers were running Anderson’s information through their database, a K9 officer indicated the presence of drugs in Anderson’s Chevy Blazer. Deputies asked Anderson to remove the keys that were around her neck. Attached to the keys were brass knuckles and a zipper pouch containing methamphetamine.
Deputies searched the vehicle and located numerous sealed bags of pure methamphetamine on the rear passenger floorboard. Deputies also located two scales in the vehicle. In all, Anderson possessed approximately 267 grams of pure methamphetamine and intended to distribute the drugs to others.
In 2017, Anderson was convicted of Arson, a serious violent felony, in Henry County, Indiana.
The sentence was announced by said Zachary A. Myers, United States Attorney for the Southern District of Indiana, Michael Gannon, Assistant Special Agent in Charge of Indianapolis Field Office of the Drug Enforcement Administration (DEA), and Rush County Sheriff Allan Rice.
“Methamphetamine dealers like this defendant fuel the scourge of substance abuse disorders and drug poisonings afflicting our communities,” said U.S. Attorney Myers. “The serious federal prison sentence imposed here demonstrates that law enforcement agencies will hold criminals accountable for pushing deadly drugs in our neighborhoods. We will continue to work with our excellent partners in the Rush County Sheriff’s Office and the DEA to make our communities safer.”
“The sentencing of Ms. Anderson was justified. Individuals who deal large quantities of debilitating drugs such as methamphetamine must be held accountable for their actions,” said DEA Assistant Special Agent in Charge Michael Gannon. “DEA remains committed to working hand in hand with our state and local partners to keep our communities safe. DEA commends the outstanding work by the Rush County Sheriff’s Department and the United States Attorney’s Office during the course of this investigation.”
The DEA and Rush County Sheriff’s Office investigated this case. The sentence was imposed by U.S. District Court Judge Sarah Evans Barker. Judge Barker also ordered that Anderson be supervised by the U.S. Probation Office for 10 years following her release from federal prison, and be subject to a $500.00 fine.
U.S. Attorney Myers thanked Assistant United States Attorney Patrick G. Gibson, who prosecuted this case.
Rochester Man Indicted for Attempting to Fraudulently Obtain More Than $1 Million in CARES Act FundsRead the Press Release
CONCORD – Heath Gauthier, 46, of Rochester, New Hampshire, was indicted by a federal grand jury on Wednesday and charged with multiple counts of wire fraud, attempted wire fraud, and aggravated identity theft, United States Attorney Jane E. Young announced today.
Gauthier was arrested this morning and has been temporally detained pending trial.
The indictment alleges that, between February 2020 and March 2021, Gauthier fraudulently applied for more than a dozen loans under the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) programs. Congress had authorized the PPP and EIDL relief programs to help the millions of Americans and many small businesses adversely affected by the early stages of the COVID pandemic. PPP loans were issued by private lenders but fully guaranteed by the government, and EIDL funds were issued by the Small Business Administration.
According to the indictment, Gauthier applied for loans for non-existent companies and used the identities of deceased individuals in his applications, listing them in some applications as owners or employees of the fictitious companies. He also submitted false documents, including fabricated tax documents and counterfeit driver’s licenses, in support of the applications. In total the indictment alleges that Gauthier applied for more than $1 million in CARES Act loan funds.
The charges in the indictment are only allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by IRS Criminal Investigations, the Federal Bureau of Investigations and the Treasury Inspector General for Tax Administration. It is being prosecuted by Assistant U.S. Attorney Matthew T. Hunter.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
###
Readout of Deputy Attorney General Lisa Monaco’s Trip to LondonRead the Press Release
Deputy Attorney General (Deputy AG) Lisa Monaco traveled to London this week to reaffirm and build upon the strong partnership between the United States and Great Britain in countering threats to our national security.
On Wednesday, the Deputy AG met with Permanent Home Secretary Matthew Rycroft to continue the strong working relationship between the Home Office and the Justice Department and to establish a new high-level forum to identify and address emerging threats. Senior representatives from both offices will convene the forum around key law enforcement areas to develop strategies that reflect the combined expertise, strengths and capabilities of U.S. and U.K. authorities.
That evening, Ambassador Jane Hartley hosted a reception in honor of the Deputy AG’s visit and to celebrate the collaboration between the U.S. and U.K. on the Russian Elites, Proxies and Oligarchs Task Force. As the one-year anniversary of Russia’s unprovoked and unjustified invasion of Ukraine approaches, the Deputy AG delivered remarks reaffirming the commitment of the two nations to stand together with the people of Ukraine and to enforce the global sanctions levied against Russia.
On Thursday, at Chatham House, the Deputy AG joined two counterparts from her former role as Homeland Security and Counterterrorism Advisor — former British Ambassador Sir Peter Westmacott and former British Deputy National Security Advisor Paddy McGuinness — to discuss how autocratic governments are acquiring and abusing disruptive technologies to project power and engage in illicit activity and how the U.S. and U.K. can collaborate to combat these trends.
In her remarks at Chatham House, the Deputy AG announced the launch of the Disruptive Technology Strike Force, a collaboration of U.S. law enforcement – led by the Departments of Justice and Commerce – bringing together top experts to attack tomorrow’s national security threats today. The Strike Force will employ intelligence and data analytics to target illicit actors, harden supply chains, and protect critical technological assets. “Our goal is simple but essential,” she said, “to strike back against adversaries trying to siphon off our most advanced technology.” Read her full remarks here.
While in London, the Deputy Attorney General also met with Deputy National Security Advisor Matt Collins and the Deputy Director of MI5 to thank them for their continued partnership on a host of national security issues facing the two countries – particularly the challenges posed by hostile nation states. She also visited the American Embassy for a briefing with U.S. officials on their work in-country and to thank them for their dedicated public service.
On Thursday evening, Deputy AG Monaco departed London for Munich, Germany, where she will participate in the Munich Security Conference and the Munich Cyber Security Conference.
Deputy Attorney General Lisa Monaco (right) with Former British Ambassador Sir Peter Westmacott (left) and Former British Deputy National Security Advisor Paddy McGuinness (center) Deputy Attorney General Lisa Monaco (center) with Former British Ambassador Sir Peter Westmacott (right) and Former British Deputy National Security Advisor Paddy McGuinness (left) Deputy Attorney General Lisa Monaco (right) with Permanent Home Secretary Matthew Rycroft (left) Deputy Attorney General Lisa Monaco (center) with U.S. Ambassador to the U.K. Jane Hartley (left) and Permanent Home Secretary Matthew Rycroft (right)Queens Man Pleads Guilty and is Sentenced for Unlawfully Transporting AliensRead the Press Release
ALBANY, NEW YORK – Eddie Galicia-Bravo, age 28, of Elmhurst, New York, pled guilty and was sentenced today to time served for unlawfully transporting two aliens.
United States Attorney Carla B. Freedman and Chief Patrol Agent Robert N. Garcia, United States Border Patrol, Swanton Sector, made the announcement.
Galicia-Bravo admitted that on September 25, 2022, he drove from New York City to the vicinity of Churubusco, New York, to pick up two Mexican citizens who had recently illegally crossed the international border from Canada into the United States. Galicia-Bravo also admitted that he planned to drive the two people to New York City.
The United States Border Patrol investigated the case. Assistant U.S. Attorney Rick Belliss prosecuted the case.
Pottawattamie County Man Sentenced for Firearm OffenseRead the Press Release
COUNCIL BLUFFS, IA – Cornelius Lavaughn David, age 35, of Council Bluffs, was sentenced on February 15, 2023, to 30 months in prison following his plea of guilty to being a felon in possession of a firearm. After he is released from prison, David will serve three years of supervised release.
In January 2022, David possessed and sold a firearm that was reported stolen. Prior to possessing the firearm, David was convicted of a felony which prohibited him from possessing firearms.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Omaha Police Department, Council Bluffs Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. In May 2021, the Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Pottawattamie County Man Sentenced for Firearm OffenseRead the Press Release
COUNCIL BLUFFS, IA – Alan Scott Lawton, age 42, of Council Bluffs, was sentenced on February 15, 2023, to 66 months in prison following his plea of guilty to being a prohibited person in possession of a firearm. After he is released from prison, Lawton will serve three years of supervised release.
On June 8, 2022, a law enforcement observed Lawton putting items in a storage unit. Lawton fled in his Jeep and drove through a security fence, then took off on foot. After a short chase, he was apprehended. Along Lawton’s flight path, law enforcement located a loaded pistol that had been reported stolen.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Council Bluffs Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. In May 2021, the Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Plaquemines Parish Woman Pleads Guilty to Drug Trafficking OffenseRead the Press Release
NEW ORLEANS, LOUISIANA – CALLEIGH AMOS, age 30, a resident of Plaquemines Parish, Louisiana, pled guilty on February 9, 2023, before U.S. District Judge Susie Morgan to conspiracy to distribute and possess with intent to distribute methamphetamine in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 846, announced U.S. Attorney Duane A. Evans.
According to court documents, AMOS was involved in a narcotics distribution conspiracy with several other co-conspirators between June 8, 2020, and June 5, 2021. As part of the conspiracy, AMOS regularly distributed amounts of methamphetamine.
AMOS faces up to twenty years imprisonment, a fine of up to $1,000,000.00, at least three years of supervised release following any term of imprisonment, and a mandatory $100 special assessment fee.
This case was investigated by the Drug Enforcement Administration and Plaquemines Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney J. Benjamin Myers of the Narcotics Unit.
Pittsburgh Man Sentenced to 25 Years in Prison for Attempted Enticement of a Child for SexRead the Press Release
PITTSBURGH - A former resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 25 years’ incarceration and lifetime supervised release on his conviction for four counts related to the sexual exploitation of minors, United States Attorney Cindy K. Chung announced today.
Senior United States District Judge Joy Flowers Conti imposed the sentence on Wayne Edward McNutt, age 58.
According to information presented to the court, from Feb. 25, 2021 until July 26, 2021, McNutt communicated with an individual whom he believed had a child available for sexual activity. In reality, McNutt was communicating with law enforcement agents acting in an undercover capacity to investigate the online sexual exploitation of children. During the communications, McNutt made plans to meet the purported child for sex and solicited advice from the child’s purported guardian about how to make the child trust him and feel comfortable during McNutt’s intended sexual abuse of the child. On two occasions, McNutt sent to the undercover agent images and a video depicting child sexual abuse. Ultimately, McNutt sent money for the purported child and the child’s guardian to travel from another state to Pittsburgh, where McNutt had booked a hotel room for all of them. McNutt was arrested by law enforcement on July 26, 2021, when he arrived to meet the purported child at the hotel that he had reserved. McNutt also possessed a cell phone that contained additional videos of minors, including prepubescent minors, engaging in sexually explicit conduct.
At the time of his arrest, McNutt was on Pennsylvania state probation for a 2012 conviction for the aggravated indecent assault of a child. In imposing sentence, Judge Conti stated that lifetime supervised release was necessary to protect the community from McNutt’s very serious and repetitive criminal conduct.
Assistant United States Attorney Heidi M. Grogan prosecuted this case on behalf of the government.
United States Attorney Chung commended the Federal Bureau of Investigation, the FBI Pittsburgh Child Exploitation and Human Trafficking Task Force, the FBI Albany Mid-State Child Exploitation Task Force, and the FBI Albany Child Exploitation and Human Trafficking Task Force for conducting the investigation that led to the prosecution of McNutt.
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.justice.gov/psc.
Phoenix Man Sentenced to 30 Years in Federal Prison for Sexual Exploitation of 12-Year-Old from Spokane AreaRead the Press Release
Spokane, Washington – On February 16, 2023, United States District Court Judge Thomas O.
Rice sentenced Miguel Antonio Mondaca, 25, of Phoenix, Arizona, to 360 months in federal prison following a jury’s guilty verdicts on charges of Child Sex Trafficking, Online Enticement, and Child Pornography Production and Receipt. Describing Mondaca’s victimization of a 12- year-old girl in the Spokane area as “egregious,” Judge Rice also imposed a lifetime of federal supervision upon Mondaca’s release from custody, and awarded the victim $30,000 in restitution for therapy.According to court documents and proceedings, Mondaca, who lived in Phoenix, communicated in extremely graphic sexual ways with his minor victim, who was in the Spokane area. After learning her true name and the fact that she was a minor, Mondaca convinced his victim to disclose exactly where she lived, and created a detailed plan to kidnap her from her home in order to rape and traffic her. He explained to her exactly how child sex trafficking “works,” telling her that he would advertise her online to “customers” for sex and then take her to a “spot” and leave her there to be sexually assaulted.
In connection with his plans, Mondaca bought a plane ticket from Phoenix to Spokane, posted images of his itinerary online, and told his minor victim that he was coming to kidnap and rape her on the specific dates of his planned travel. When officers with the Washington State Patrol and Homeland Security Investigations learned that Mondaca had purchased the plane ticket to travel to Spokane, they sought a nationwide extraditable warrant for his arrest. Officers in
Spokane worked closely with their law enforcement colleagues in Phoenix to obtain and execute search warrants for Mondaca’s residence. In his digital devices, officers recovered the images and communications he had solicited from his primary victim. They also discovered a large collection of other child pornography images that Mondaca had downloaded from the Internet, including images depicting bestiality, the sexual abuse of toddlers, and other sexual violations of children.“As a parent, I am chilled by the manipulative and exploitative conduct for which Mr. Mondaca has now been convicted by a jury and sentenced by the Court,” said United States Attorney
Vanessa R. Waldref. “My office takes sexual exploitation extremely seriously, whether online or in-person. Children in the Eastern District and elsewhere deserve to live in a world free from sexual predators. Today’s significant sentence will protect our community, and send a message to those who seek to harm children: justice is coming.”U.S. Attorney Waldref also praised the collaborative efforts of state, local, and federal law enforcement. “This investigation was successful because of the incredibly diligent teamwork of
Washington State Patrol and Homeland Security Investigations, with assists from the Phoenix
Police Department and numerous other law enforcement agencies. I commend Assistant United
States Attorneys Alison Gregoire and Ann Wick, who tried the case to the jury with professionalism and sensitivity for the victim and her family. I also commend Assistant United
States Attorney and Project Safe Childhood Coordinator David Herzog, who presented the indictment to the grand jury and handled today’s sentencing on behalf of the United States.
Finally, I sincerely thank Jolene Jones and Petra Frandsen, the U.S. Attorney’s Office’s victim witness specialists, for their tireless work on behalf of the victims of crime, in this case and so many others.”The case was investigated by Washington State Patrol, Homeland Security Investigations, and the Phoenix Police Department. Assistant United States Attorneys Alison Gregoire, Ann Wick, and David Herzog represented the United States.
2:21CR00130-TOR-1
Philadelphia Man Sentenced to over 10 Years in Prison for Conspiracy to Possess with Intent to Distribute MethamphetamineRead the Press Release
Jackson, Miss. – A Philadelphia, Mississippi man was sentenced to 130 months in federal prison for conspiracy to possess with intent to distribute methamphetamine, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Brad Byerley of the Drug Enforcement Administration.
According to court documents, beginning in August 2020, and continuing to October 19, 2020, Marice Keon Boler, 29, conspired with others to distribute methamphetamine in and around the Neshoba County, Mississippi area. The Court determined that Boler was responsible for the distribution of nearly 9 pounds of methamphetamine.
The case is the result of an extensive investigation, dubbed “Orlando Land,” which began as an operation targeting illegal drug trafficking in the Neshoba and Kemper County, Mississippi areas. “Orlando Land” is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The case was investigated by the Drug Enforcement Administration, U.S. Department of Homeland Security, Mississippi Bureau of Narcotics, Mississippi Attorney General’s Office, Kemper County Sheriff’s Office, Neshoba County Sheriff’s Office, Philadelphia Police Department and Mississippi Department of Wildlife, Fisheries and Parks. It was prosecuted by Assistant United States Attorney Keesha Middleton.
Philadelphia Man Sentenced to 5 Years in Prison for Distributing NarcoticsRead the Press Release
JOHNSTOWN, Pa. – A former resident of Philadelphia, PA, has been sentenced in federal court to a total of 60 months in prison followed by 3 years of supervised release on his conviction of distributing cocaine, heroin, and fentanyl, United States Attorney Cindy K. Chung announced today.
Senior United States District Judge Kim R. Gibson imposed the sentence on Troy Jamal Jones, age 36, on February 15, 2023.
According to information presented to the court, on or about August 21, 2019, Jones did distribute a quantity of a mixture and substance containing a detectable amount of cocaine base. Further, on or about August 27, 2019, Jones did distribute a quantity of a mixture and substance containing a detectable amount of cocaine base, heroin, and fentanyl.
Assistant United States Attorney Maureen Sheehan-Balchon prosecuted this case on behalf of the government.
Ms. Chung commended the Federal Bureau of Investigation and the Safe Streets Task Force for the investigation that led to the successful prosecution of Jones.
North Fort Myers Man Indicted After Brandishing Gun in Crowded BarRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Terrance Paul Snow (22, North Fort Myers) with possession of a firearm by a convicted felon. If convicted, Snow faces a maximum penalty of 15 years in federal prison. The indictment also notifies Snow that the United States intends to forfeit a Taurus Model 85 .38 Special revolver and 4 rounds of .38 ammunition, which are alleged to be traceable to the offense.
According to court proceedings, on January 8, 2023, Snow was at a bar in New Port Richey. After a verbal dispute with other patrons of the bar, Snow pulled a small black revolver out of his waistband and pointed it at the patrons. Officers from the New Port Richey Police Department responded to the scene and apprehended Snow a short distance from the bar. The officers located a black Taurus Model 85 .38 Special revolver hidden behind a dumpster near the location where Snow was apprehended. At the time of the incident, Snow was serving a 5-year probation term related to his prior federal felony conviction for conspiracy to interfere with commerce by robbery. As a convicted felon, Snow is prohibited from possessing a firearm or ammunition under federal law.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Port Richey Police Department. It will be prosecuted by Assistant United States Attorney David P. Sullivan.
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.
New Orleans Man Sentenced to over Nine Years for Violating the Federal Gun Control and the Federal Controlled Substances ActsRead the Press Release
NEW ORLEANS, LOUISIANA – United States District Judge Lance M. Africk sentenced JACOB BANKS, age 32, of New Orleans, yesterday to 111 months in the Bureau of Prisons for violating the Federal Gun Control Act and the Federal Controlled Substances Act, announced U.S. Attorney Duane A. Evans.
According to the court documents, BANKS was convicted in another federal case of being a felon in possession back in 2019 and sentenced accordingly. Only two weeks after completing that sentence, police observed BANKS in possession of a firearm during a repast for a murdered drug dealer. The police were not able to arrest BANKS then but a few weeks later found BANKS and several other men who were also felons in possession of firearms. BANKS admitted he possessed a Springfield Arms .45 caliber pistol after he had already been convicted of several felony offenses. BANKS also admitted to possessing crack cocaine with the intent to distribute it and that he possessed the firearm in furtherance of his drug trafficking activity.
Judge Africk sentenced BANKS to 111 months imprisonment to be followed by three years of supervised release. He was also ordered to pay a mandatory special assessment fee of $300.
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 Investigation. The prosecution is being handled by Assistant United States Attorney David Haller of the Violent Crimes Unit.
* * *
New Hampshire Man Pleads Guilty to Theft of a Firearm from a Federal Firearm LicenseeRead the Press Release
CONCORD – Ryan Woods, 33, of Concord, New Hampshire, pleaded guilty in federal court to theft of a firearm from a federal firearm licensee, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, Woods entered a federal firearms licensee in New Hampshire and stole a firearm and a firearm safe. He is scheduled to be sentenced on June 6, 2023.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives. The case is being prosecuted by Assistant U.S. Attorney Heather A. Cherniske.
###
Monmouth County Doctor Admits Harboring Undocumented Workers from IndiaRead the Press Release
NEWARK, N.J. – A Monmouth County, New Jersey, doctor pleaded guilty today to harboring two undocumented women from India and failing to pay taxes on their wages, U.S. Attorney Philip R. Sellinger announced.
Harsha Sahni, 66, of Tinton Falls, New Jersey, pleaded guilty before U.S. District Judge Georgette Castner in Trenton federal court to an information charging her with one count of conspiracy to conceal and harbor aliens and one count of filing a false tax return.
According to documents filed in this case and statements made in court:
From 2013 through August 2021, Sahni conspired with others to conceal and harbor two foreign nationals from India, who Sahni recruited to work for Sahni and her family in their homes in New Jersey. Sahni harbored the victims for her and her conspirators’ financial gain and paid the victims’ families in India in exchange for their labor.
Sahni caused the victims to believe that they would be arrested and deported if they interacted with law enforcement. Sahni instructed the victims to tell other people that they were related to Sahni, and Sahni used fake names and addresses in furtherance of the conspiracy. From 2013 to 2019, Sahni also failed to pay certain taxes notwithstanding that the victims were Sahni’s household employees.
As a part of the plea agreement, Sahni has agreed to pay the victims a combined $642,212 and has agreed to pay up to $200,000 towards the treatment of one of the victim’s brain aneurysm. Sahni has also agreed to pay restitution to the IRS.
The count of conspiracy to conceal and harbor aliens carries a maximum penalty of 10 years in prison and a fine of $250,000, or twice the gross profits or other proceeds to Sahni, whichever is greatest. The count of conspiracy to conceal and harbor aliens carries a maximum penalty of three years in prison and a fine of up to $100,000. Sentencing is scheduled for June 20, 2023.
U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, Newark Field Office, under the direction of Special Agent in Charge Ricky J. Patel; special agents of IRS - Criminal Investigation, New York Field Office, under the direction of Special Agent in Charge Thomas Fattorusso; and special agents of the U.S. Department of State, Diplomatic Security Service, New York Field Office, under the direction of Special Agent in Charge Keith J. Byrne, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jamie H. Solano of the U.S. Attorney’s Office Cybercrime Unit in Newark.
Mississippi Man and Woman Charged with Wire FraudRead the Press Release
NEW ORLEANS - U.S. Attorney for the Eastern District of Louisiana, Duane A. Evans announced today that JAMES “Jay” SINYARD and MARY “Gigi” SINYARD (“the SINYARDs”), residents of Brandon, Mississippi, were charged on February 14, 2023 with one count of wire fraud.
According to the charging document, the SINYARDs operated a company called VetAttend of Jackson where they purported to provide services to Veterans for home aid and assistance. The SINYARDs submitted, and caused to be submitted, fraudulent affidavits for home aid services provided, when they knew that those services were not actually provided. The affidavits were submitted to the Department of Veterans Affairs (VA) through the Eastern District of Louisiana. As a result of fictitious affidavits, from approximately August 2014 to approximately December 2020, the VA issued funds to over 70 veterans and/or their surviving spouses from whom VetAttend of Jackson appropriated approximately $2,136,329.68 in funds relating to false affidavits of services provided.
If convicted, the SINYARDs face a possible maximum sentence of 20 years imprisonment, up to three years of supervised release, a $250,000 fine, and a mandatory $100 special assessment fee per count.
U.S. Attorney Evans stated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case is being investigated by the Department of Veterans Affairs Office of Inspector General.
The prosecution of the case is being handled by Assistant United States Attorney Kathryn McHugh.
Michigan Man Sentenced to Prison for Fentanyl CrimeRead the Press Release
BECKLEY, W.Va. – Darion D. Jackson, also known as “D,” 23, of Michigan, was sentenced today to two years and six months in prison, to be followed by three years of supervised release, for distributing fentanyl.
According to court documents and statements made in court, on February 8, 2021, Jackson sold a quantity of fentanyl to a confidential informant at a Coal City, West Virginia, residence where Jackson was staying.
Jackson admitted to distributing that fentanyl and a separate quantity of fentanyl that he sold to another confidential informant in the Coal City area on May 27, 2021. On August 23, 2021, law enforcement officers stopped a vehicle driven by Jackson. The officers found approximately 21.1 grams of fentanyl in Jackson’s vehicle. Jackson admitted that he possessed the fentanyl and planned to distribute it within the Southern District of West Virginia.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Federal Bureau of Investigation (FBI), and the Beckley/Raleigh County Drug and Violent Crime Unit.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Timothy D. Boggess prosecuted the case.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:22-cr-30.
###
Michigan Man Sentenced for Drug and Firearm OffensesRead the Press Release
COUNCIL BLUFFS, IA – Her Tou Yang, age 42, of Detroit, Michigan, was sentenced on February 15, 2023, to 60 months and 1 day in prison following his plea of guilty to possession with intent to distribute marijuana and possession of a firearm in furtherance of a drug trafficking crime. After he is released from prison, Yang will serve two years of supervised release.
On August 15, 2021, Yang possessed approximately five pounds of marijuana and a firearm that was reported stolen and sold them to another individual in Council Bluffs. On September 9, 2021, Yang possessed and sold an AR-style rifle in Council Bluffs.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Council Bluffs Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. In May 2021, the Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Meth trafficking sends Billings woman to prison for six yearsRead the Press Release
BILLINGS — A Billings woman who admitted to bringing large quantities of methamphetamine from Las Vegas, Nevada, to the Miles City area for distribution was sentenced today to six years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said.
Denise Danielle Piccione, 38, pleaded guilty in October 2022 to possession with intent to distribute meth.
U.S. District Judge Dana L. Christensen presided.
In court documents, the government alleged that in June 2020, agents with the Montana Division of Criminal Investigation received information that Piccione was selling large amounts of meth in the Miles City area. An investigation led to a Montana Highway Patrol traffic stop of a vehicle driven by Piccione as she returned to Montana from Las Vegas. A search warrant was obtained for the vehicle, and officers seized 1,526 grams, or approximately 3.3 pounds, of meth. That quantity of meth is the equivalent of 11,959 doses. Piccione communicated with other co-conspirators about drug transactions and delivered meth to various locations and customers in Montana and North Dakota.
Assistant U.S. Attorney Julie R. Patten prosecuted the case, which was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force.
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.
XXX
Merrill Woman Sentenced to 3 Years for Trafficking MethamphetamineRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Nicole Elsholtz, 35, Merrill, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to three years in prison for conspiracy to distribute methamphetamine. Elsholtz pleaded guilty to this charge on March 14, 2022.
The government’s investigation revealed that Elsholtz purchased large amounts of methamphetamine from co-defendant Levi Bagne between July of 2019 and June of 2020. Bagne and co-defendant Krista Sparks routinely mailed packages containing methamphetamine from Arizona to co-defendant Cory Freyermuth in Oshkosh, Wisconsin. Once Bagne let her know that the methamphetamine had arrived, Elsholtz would drive to Oshkosh and get it from Freyermuth. After driving back to Merrill, Elsholtz sold the methamphetamine to a variety of customers.
Bagne, Freyermuth, and Sparks pleaded guilty to participating in this methamphetamine distribution scheme, and were sentenced by Judge Peterson to 16 years, 8 ½ years, and 2 ½ years, respectively.
The charge against Elsholtz is the result of a joint investigation by the Central Wisconsin Narcotics Task Force, Drug Enforcement Administration, Lake Winnebago Area Metropolitan unit, and Merrill Police Department. The investigation was conducted and funded by the Organized Crime Drug Enforcement Task Force (OCDETF), a multi-agency task force that coordinates long-term narcotics trafficking investigations. Assistant U.S. Attorney Aaron Wegner handled the prosecution.
Memphis Man Sentenced to 13 Years for Carjacking and Illegal Possession of a Stolen FirearmRead the Press Release
Memphis, TN – Kedric Reese, 21, has been sentenced to 13 years in federal prison for carjacking, discharge of a firearm during a crime of violence and illegal possession of a stolen firearm. United States Attorney Kevin G. Ritz announced the sentence today.
According to the information presented in court, on May 24, 2021, Memphis Police Officers responded to a carjacking at River Grove apartments. The victim advised officers that while traveling in a rental car, she stopped near Warford and Jackson Avenue to send a text message, when two occupants in a white Impala drove up next to her. The men approached the car and demanded she take them to River Grove apartments.
One of the men, Kedric Reese, brandished a gun that was visible to the victim. Afraid for her safety, the victim complied with their request. When they arrived, Reese pointed the gun at the victim and made her get out of the car. As she did so, the victim yelled at Reese, "I know what you look like!" Reese then fired a shot directly at the victim.
The rental car company tracked the vehicle to a residence on Rio Lobo in Memphis, Tennessee. Reese who was in possession of the stolen car and a stolen SAR 9mm pistol, was placed into custody. The gun was loaded with 12 rounds in the magazine and 1 round in the chamber.
The victim identified Reese as the man who shot at her and stole her rental car.
This case was investigated by the ATF and the Memphis Police Department.
On February 14, 2023, United States Chief Judge Sheryl H. Lipman sentenced Reese to 157 months in federal prison to be followed by three years of supervised release. There is no parole in the federal system.
United States Attorney Kevin Ritz thanked Assistant United States Attorney Raney Irwin, who prosecuted this case, as well as law enforcement partners who investigated the case.
###
For more information, please contact Public Information Officer Cherri Green at (901) 544-4231 or [email protected]. Follow @WDTNNews on Twitter for office news and updates.
Manager of Key West Labor Staffing Companies Sentenced for Immigration and Employment Tax FraudRead the Press Release
A Florida man was sentenced today to 96 months in prison for conspiring to harbor non-resident aliens and induce them to remain in the country and conspiring to defraud the IRS.
According to court documents, from 2016 through 2021, Oleksandr Morgunov helped operate a series of labor-staffing companies in South Florida, including Paradise Choice LLC, Paradise Choice Cleaning LLC, Tropical City Services LLC and Tropical City Group LLC. These staffing companies facilitated the employment of individuals in hotels, bars and restaurants in Key West and other locations, even though the employees were not authorized to work in the United States. Morgunov and his co-conspirators defrauded the IRS out of more than $7.9 million in employment taxes that should have been withheld and paid over in connection with the employment of these workers.
In addition to the term of imprisonment, U.S. District Court Judge Jose E. Martinez ordered Morgunov to serve three years of supervised release and to pay $7,958,421.50 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida made the announcement.
The DHS Homeland Security Investigations and IRS-Criminal Investigation investigated the case.
Senior Litigation Counsel Sean Beaty, Trial Attorneys Jessica A. Kraft, Nicholas J. Schilling Jr., Matthew C. Hicks, Wilson Rae Stamm and Assistant U.S. Attorney Chris Clark of the Southern District of Florida prosecuted the case.
Man Who Posed as Teenager Online Sentenced to 30 Years in Child Pornography CaseRead the Press Release
A 24-year-old man who posed as a high school student to recruit victims on social media was sentenced Thursday to 30 years in federal prison for child sexual exploitation, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Tyler Patrick Brown, now 25, of Lubbock, was charged via criminal complaint in June 2022 and indicted the following month. He pleaded guilty in September 2022 to production and attempted production of child pornography and was sentenced Thursday by U.S. District Judge James Wesley Hendrix, who ordered a lifetime of supervised release following his sentence and ordered him to pay $25,000 to the Amy, Vicky, and Andy Child Pornography Victim Assistance Act’s reserve fund.
According to plea papers, Mr. Brown admitted he gave multiple children gifts, money, and alcohol in exchange for sexual acts.
He told at least one of the victims, a 16-year-old girl, that he was 17 years old and went to high school online. When the girl spotted an ID that stated he was 24 years old, he claimed it was a fake. While she was under the influence of alcohol, he coerced the child into oral sex, recorded the encounter on his phone, and shared it. The child attempted to distance herself from the relationship, but Brown sent her a photo of his roommate’s gun and threatened to kill himself if she stopped seeing him.
According to court documents, Mr. Brown repeatedly referred to himself as a “sugar daddy.” When he video chatted with his victims, he seldom showed his face or obscured most of it.
In June 2022, Mr. Brown was spotted at a high school girls’ basketball game wearing a lanyard labeled “Press.” Concerned parents contacted law enforcement.
In an interview with law enforcement, Mr. Brown admitted to engaging in 14 sexual relationships with minors after he’d turned 18. At Thursday’s sentencing, it was noted that law enforcement had, in fact, identified 22 children between the ages 13 and 17 who had been victimized by Mr. Brown when he was 20 to 24 years old.
The Federal Bureau of Investigation’s Dallas Field Office – Lubbock Resident agency, the Texas Rangers, the Texas Department of Public Safety, and the Lubbock Police Department conducted the investigation with the significant assistance of local law enforcement agencies who helped identify and contact the victims. Assistant U.S. Attorney Callie Woolam prosecuted the case.
Man Caught with Counterfeit Designer Phone Cases Heads to Federal PrisonRead the Press Release
BENTON, Ill. – A U.S. District Court judge sentenced a man from Fairfield to 33 months in prison after he admitted to importing more than 800 counterfeit designer phone cases from Hong Kong to resell in the U.S.
Trevor J. Edwards, 21, pled guilty to two counts of trafficking counterfeit goods. In addition to his prison sentence, he will receive three years of supervised release and was ordered to pay $1,367.20 in restitution and $500 in fines.
“In two separate instances, the defendant knowingly attempted to obtain counterfeit goods in order to resell and manipulate consumers in downstate Illinois,” said U.S. Attorney Rachelle Aud Crowe. “Reselling counterfeit goods is not a victimless crime, and offenders face serious consequences.”
"Counterfeit goods traffickers like Edwards are looking to gain a profit but in reality, are committing a crime that results in American jobs lost, American business profits stolen and American consumers receiving substandard products,” said Sean Fitzgerald, special agent in charge of HSI Chicago. “HSI enforcement operations into intellectual property theft protect not only the companies who have copyrighted products, but the consumers who believe they are buying legitimate goods.”
In February 2021, Customs and Border Protection seized 500 counterfeit designer cellphone cases when the shipment reached the U.S. border from Hong Kong. According to court documents, Edwards was listed on the box as the recipient. The phone cases were counterfeit Chanel, Louis Vuitton, Burberry and Gucci and retailed an estimated $212,500. Once intercepted, the government sent a receipt to Edwards to notify him of his illegal activity.
Months later in May 2021, Edwards was pulled over by law enforcement in Washington County and a search of his vehicle found 336 counterfeit designer cell phone cases, $241,000 in cash and 2,909 vape pens and cartridges containing cannabis. The phone cases retailed an estimated $101,340.
Homeland Security Investigations led the investigation, and Assistant U.S. Attorney Peter T. Reed prosecuted the case.
Madison Man Sentenced to 6 Years for Cocaine ConspiracyRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Jason Hall, 27, Madison, Wisconsin was sentenced today by Chief U.S. District Judge James D. Peterson to six years in prison for conspiring to distribute 500 grams or more of cocaine. Hall pleaded guilty to this charge on October 31, 2022.
The government’s investigation revealed that Hall purchased large amounts of cocaine from co-defendants Winfield Agee and Darryl McDonald in Chicago, Illinois between 2018 and 2020. After returning to Madison, Hall would sell the cocaine to a variety of customers. The investigation also revealed that Hall’s girlfriend, co-defendant Kiayla Alston, and his mother, co-defendant Nikia Cannon, actively assisted his cocaine trafficking activity.
At the sentencing hearing, Judge Peterson concluded that a significant sentence was warranted because Hall was responsible for bringing a large amount of cocaine into the Madison area for a significant period of time. Judge Peterson stated that Hall “leaned into” the drug trafficking lifestyle and was motivated by the allure of easy money. Judge Peterson noted that Hall had multiple prior drug trafficking felony convictions and prior jail sentences had not deterred him from dealing drugs.
A total of eight individuals have been charged for participating in the cocaine distribution scheme. Seven individuals have pleaded guilty, including Winfield Agee, Kiayla Alston, and Nikia Cannon. The remaining defendant, Darryl McDonald, is scheduled for a plea hearing on March 15, 2023, at 10:00 a.m.
The charge against Hall is the result of a joint investigation by the Drug Enforcement Administration, Federal Bureau of Investigation, Wisconsin Department of Justice Division of Criminal Investigation, Madison Police Department, and the Dane County Narcotics Task Force. The investigation was conducted and funded by the Organized Crime Drug Enforcement Task Force (OCDETF), a multi-agency task force that coordinates long-term narcotics trafficking investigations. Assistant U.S. Attorney Aaron Wegner is handling the prosecution.