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15 February 2023
Jefferson County Man Sentenced for Federal Firearms ViolationRead the Press Release
BEAUMONT, Texas - A Beaumont man has been sentenced to federal prison for a firearms violation in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Jared Javon Bias, 28, pleaded guilty on March 2, 2022, to possession of a firearm by a prohibited person and was sentenced to 96 months in federal prison by U.S. District Judge Marcia A. Crone on Feb. 14, 2023.
According to information presented in court, on Jan. 21, 2021, Bias was arrested pursuant to a parole violation. During the arrest he was observed trying to hide an object. Further investigation revealed a backpack in the back seat which contained a loaded semiautomatic firearm. Bias was indicted by a federal grand jury on August 4, 2021.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Rachel Grove.
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Jefferson County Man Sentenced for Federal Drug Trafficking ViolationsRead the Press Release
ABEAUMONT, Texas - A Beaumont man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Patrick Dwayne Gipson, 38, pleaded guilty on March 2, 2022, to conspiracy to possess with intent to distribute 50 grams or more of a mixture or substance containing methamphetamine and was sentenced to 119 months in federal prison by U.S. District Judge Marcia A. Crone on Feb. 14, 2023.
According to information presented in court, on Feb. 6, 2020, local law enforcement officers executed a search warrant at a Beaumont residence controlled by Gipson and others. Through the investigation, law enforcement seized thousands of pills, purported to be ecstasy, that contained methamphetamine.
Gipson is the last defendant of the conspiracy to be sentenced. Earlier this month, Travion Dewayne Parkerson was sentenced to 97 months in federal prison; Wendall James Kirtman was sentenced to 84 months in federal prison; and Kobe Jashawn Grimes was sentenced to 70 months in federal prison.
This case was investigated by the Beaumont Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jefferson County Regional Crime Laboratory. This case was prosecuted by Assistant U.S. Attorney Jonathan C. Lee.
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Jacksonville Man Arrested and Charged with Attempting to Entice and Meet A 12-Year-Old Child to Engage in Sexual ActivityRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Zachary Ray Ellis (45, Jacksonville) has been arrested and charged with using the internet to attempt to entice a 12-year-old child to engage in sexual activity. Ellis faces a minimum mandatory penalty of 10 years, up to life, in federal prison, and a potential life term of supervised release. At the time of his arrest on February 14, 2023, Ellis was an employee of a media and technology company.
According to court documents, on August 26, 2022, an undercover FBI agent, who was posing online as the mother (the “mother”) of an 11-year-old “child,” received a message from the user “Twiztd,” subsequently identified as Ellis, on a particular social media application. During the conversation, which eventually switched to text messages, the “mother” advised that she was looking for the “child” to get some experience and Ellis stated that he “love[s] young girls. 10-12 fav age.” Ellis detailed his sexual interest in the “child,” telling the “mother” about the sexual acts he wanted to perform on the “child.” During the messaging, Ellis spoke directly with the “child” via text message, grooming her, and directing her on how to perform a sex act. The conversation then continued on and off throughout September, October, and November 2022, with Ellis reinitiating contact each time, checking to see if the “mother” had found anyone to help her with the “child” yet.
On February 5, 2023, Ellis again reached out to the “mother” to find out about her progress with finding someone for the “child.” From February 6 through February 13, 2023, Ellis detailed his interest in the “child,” who was now 12 years old, including specific sexual activities he wanted to engage in with her. Ellis discussed meeting the “mother” first and then if the meeting went well, taking the “child” out separately on his own. On February 13, 2023, Ellis made arrangements to meet with the “mother” at a prearranged location and was arrested by FBI agents when he arrived.
This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Ashley Washington.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Information Technology Company Owner and Former NSA Contractor Convicted After Month-Long Trial for Submitting False Claims for Hours Worked on a Government ContractRead the Press Release
Baltimore, Maryland – A federal jury convicted Jacky Lynn McComber (formerly Jacky Lynn Kimmel), age 50, of Elkridge, Maryland, on federal charges of submitting false claims and making false statements, in connection with the hours she claimed to have worked on a federal contract with the National Security Agency (NSA). McComber was the CEO and owner of InfoTeK, an information technology (IT) services corporation, which had an ongoing contract with the NSA.
The guilty verdict was announced by Erek L. Barron, United States Attorney for the District of Maryland; Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Kevin Gerrity, Acting Inspector General of the National Security Agency; and Robert P. Storch, Inspector General of the Department of Defense.
According to evidence presented at trial, from July 2011 until March 2018, the NSA had an ongoing contract, known as the Ironbridge contract, with InfoTeK to provide maintenance and enhancement support for the information technology and software requirements of the NSA’s National Security Operations Center (NSOC) and the Counter Terrorism Mission Management Center (CTMMC). Because the subject matter of these contracts involved classified information, most of the work had to be performed at secure, access-controlled locations and there were severe limitations on the amount of work that could be performed off-site. InfoTeK billed the NSA monthly for the hours worked by its employees and contractors.
According to the evidence presented at the four-week trial, the Ironbridge contract required InfoTeK to identify a Program Manager (PM) who would be responsible for overseeing InfoTeK’s performance of its contractual obligations and serve as InfoTeK’s point of contact with government officials. From 2011 to 2013, several individuals, including McComber, served as the PM on the Ironbridge contract. Starting in the summer of 2013, Individual A held the position of Senior Program Manager on the Ironbridge contract, until she was replaced by McComber in mid-March 2016. McComber held the position through September 2017. According to trial testimony, for 17 months, beginning in mid-March 2016 when McComber took over the PM position, she billed an average of 144 hours per month to the NSA for her supposed work. In all, between March 14, 2016 and September 30, 2017, InfoTeK billed NSA for 2,603.5 hours of work on the Ironbridge contract purportedly performed by McComber in her role as Senior Program Manager. NSA paid these charges in full, at a total cost of $388,878.78.
A subsequent review and comparison by the NSA OIG in the fall of 2017 of McComber’s NSA access control records with the time InfoTeK billed for her work on the Ironbridge contracts established that McComber was not within access control at the NSA’s Fort Meade location for 2,342.5 (90%) of the 2.603.5 hours she had recorded on her timesheets and that InfoTeK subsequently billed to NSA. In addition to not being physically present at the worksite for the vast majority of hours she billed to the Ironbridge contract, the evidence showed that McComber did not work the number of hours on the Ironbridge contract that she recorded on her timesheet. For example, on occasions when McComber billed a full eight-hour day to the Ironbridge contract, she participated in charity events, attended her high school reunion, vacationed in Texas and in Ocean City, Maryland, and performed business development efforts on behalf of InfoTeK that were unrelated to the Ironbridge contract. Other testimony by former InfoTeK officers indicated that McComber was only in InfoTeK’s Columbia, Maryland offices irregularly and when she was there, she did not appear to be working on Ironbridge-related matters. As a result of McComber’s false claims as to the time she worked on the Ironbridge contract between March 2016 and September 2017, the NSA substantially overpaid InfoTeK.
As further detailed in trial testimony, on October 3, 2017, McComber participated in a voluntary interview with NSA OIG investigators concerning allegations received from a whistleblower that she had charged the government for hours that she did not actually work. McComber falsely claimed that her consistent billings of eight hours per day spent on Ironbridge-related work most days were legitimate and that she did not falsely fill out her timesheet or put any false information on it.
McComber faces a maximum sentence of five years in federal prison for each of 19 counts of submitting false claims and for one count of making false statements. U.S. District Judge Ellen L. Hollander has scheduled sentencing for May 12, 2023.
United States Attorney Erek L. Barron and Assistant Attorney General Kenneth A. Polite commended the National Security Agency Office of Inspector General and DCIS for their work in the investigation. Mr. Barron and Mr. Polite thanked Assistant U.S. Attorney Jefferson M. Gray and Trial Attorney Peter L. Cooch of the Justice Department’s Fraud Section, who are prosecuting the case.
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Indictment Charges 3 Men with Fentanyl Trafficking OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that a federal grand jury has returned an indictment charging ISSACHAMIL TORRES, also known as “Chamil,” 35, of Hartford; EFRAIN CHEVEREZ, 32, of Hartford; and ENRIQUE RODRIGUEZ RIVERA, 23, of East Hartford, with fentanyl trafficking offenses.
As alleged in court documents and statements made in court, an investigation revealed that Torres was using an apartment on Nutmeg Lane in East Hartford to store, process and package narcotics for street sale. On January 25, 2023, investigators conducted a court-authorized search of the apartment and seized approximately 5,400 dose bags of fentanyl, approximately one kilogram of unpackaged fentanyl, and items used to process and package narcotics. Torres, Cheverez and Rodriguez, who were present in the apartment, were arrested at that time. That same day, a search of Torres’s residence on Crown Street in Hartford revealed distribution quantities of fentanyl and crack cocaine, and approximately $30,000 in cash.
On February 8, 2023, a grand jury in Hartford returned an indictment charging the three defendants with one count of conspiracy to distribute, and to possess with intent to distribute, 40 grams or more of fentanyl, and one count of possession with intent to distribute 40 grams or more of fentanyl. These offenses carry a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years. The indictment also charges Torres with one count of possession with intent to distribute fentanyl and cocaine, an offense that carries a maximum term of imprisonment of 20 years.
Rodriguez appeared yesterday before U.S. Magistrate Judge Thomas O. Farrish in Hartford and pleaded not guilty to the charges. Torres and Cheverez are scheduled to be arraigned next week.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the DEA’s Hartford Task Force, which includes personnel from the DEA Hartford Resident Office, the Connecticut State Police, and the Bristol, Hartford, East Hartford, Enfield, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Illinois Man Caught with AR-15 in St. Louis Convicted of Federal Gun CrimeRead the Press Release
ST. LOUIS – A convicted felon from Belleville, Illinois caught in St. Louis with an AR-15-style rifle after a high-speed chase was convicted Tuesday of a federal gun charge.
Ryan Fleming, 31, was found guilty after a two-day trial of being a felon in possession of a firearm. He is scheduled to be sentenced May 23 and could face up to 10 years in prison.
Early in the morning of Sept. 24, 2021, a Hyundai Sonata being sought by police in Illinois in connection with an alleged assault on a law enforcement officer was spotted and pursued by Saint Louis Metropolitan Police Department officers, according to charging documents. Fleming, who was driving at speeds reaching 100 m.p.h. on Interstate 70, crashed into a concrete barrier while trying to exit in downtown St. Louis. He got out with a Palmetto State Armory PA-15 semi-automatic rifle but dropped it and ran. He was arrested nearby after a foot chase.
Fleming has prior convictions in Illinois including drug possession and two charges of unlawful possession of a firearm by a felon.
The case was investigated by the Saint Louis Metropolitan Police Department and the Illinois State Police. Assistant U.S. Attorney Ryan Finlen is prosecuting the case.Hudson County Man Admits Participation in Conspiracy to Distribute FentanylRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man today admitted that he conspired to possess fentanyl with the intent to distribute, U.S. Attorney Philip R. Sellinger announced.
Miguel Polanco, 31, of Union City, New Jersey, pleaded guilty before U.S. District Court Judge Madeline Cox Arleo to an information charging him with one count of conspiracy to distribute and possess with intent to distribute 40 grams or more of a substance containing a detectable amount of fentanyl.
According to documents filed in this case and statements made in court:
In May 2021, U.S. Customs and Border Protection agents intercepted a package being shipped from Mexico City, Mexico, to Polanco at his apartment. Inspection of the package revealed that it contained a substance that tested positive for the presence of fentanyl.
Prior to receiving the package, Polanco received a video from a conspirator explaining how to properly remove the bags of fentanyl concealed inside the package to minimize the damage to its contents. Polanco also engaged in multiple conversations with conspirators where he learned of the quantity of fentanyl that would be sent to him as well as instruction on where to deliver the package after he received it. In exchange for receiving and transporting the package containing fentanyl, Polanco was to be paid.
The conspiracy charge carries a statutory minimum of five years in prison, a maximum of 40 years in prison and a maximum fine of $5 million, or twice the gross amount of any pecuniary gain, whichever is greater. Sentencing is scheduled for June 28, 2023.
U.S. Attorney Sellinger credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel in Newark and Deputy Special Agent in Charge Alejandro Amaro in Laredo, Texas; U.S. Custom and Border Protection – (Laredo) under the direction of Port Director Albert Flores in Laredo and Port Director Tenavel Thomas in Newark; postal inspectors with the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division; and the Elizabeth Police Department, under the direction of Chief Giacommo Sacca, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office Special Prosecutions Unit in Newark.
Defense counsel: Adam Axel Esq., Assistant Federal Public Defender, Newark
Houston-Area Woman Sentenced to 24 Months Imprisonment for Obstructing the Enforcement of Federal Criminal Sex Trafficking StatuteRead the Press Release
NEW ORLEANS – DAJANAE DRAKE, age 29, from Missouri City, Texas, was sentenced today by United States District Judge Mary Ann Vial Lemmon to 24 months imprisonment, 3 years of supervised release and a mandatory special assessment fee of $100.00 after previously pleading guilty as charged to a one-count bill of information charging her with obstruction, attempted obstruction, and interference with the enforcement of the federal criminal sex trafficking statute, in violation of Title 18, United States Code, Section 1591(d) announced U.S. Attorney Duane A. Evans.
According to court documents, Person 1, then a female of approximately sixteen years old, met Randi Lewis in about early 2020. Lewis recruited Person 1 to engage in commercial sex acts under his direction, and she complied. In about June 2021, Lewis and Person 1 met the minor victim, who was thirteen years old, in the Houston, Texas area. At Lewis’s direction, Person 1 recruited the victim to perform commercial sex acts under Lewis’s direction. Thereafter, Lewis arranged for he, Person 1, and the minor victim to travel to New Orleans on a Greyhound bus for the purpose of his co-conspirator and the victim to engage in commercial sex acts. Between June 22, 2021, and June 24, 2021, Person 1 and the minor victim performed multiple commercial sex acts in the New Orleans area. On June 24, 2021, law enforcement authorities recovered the victim and arrested Person 1 and Lewis at a hotel in Terrytown, Louisiana. Thereafter, Person 1 and Lewis were charged criminally and incarcerated.
Between June 25, 2021, and about November 28, 2021, DRAKE held numerous telephone conversations with Person 1 and Lewis, including several conversations during which DRAKE knowingly encouraged Person 1 to sign a false affidavit saying that Lewis played no role in recruiting and trafficking the minor victim. DRAKE did so with the purpose of obstructing the enforcement of criminal law, including Title 18, United States Code, Section 1591.
Federal criminal charges against both Person 1 and Lewis are pending. Lewis has pleaded guilty and is scheduled to be sentenced on March 8, 2023, by United States District Judge Lance M. Africk.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the Jefferson Parish Sheriff’s Office in this matter. Assistant United States Attorney Jordan Ginsberg, Chief of the Public Corruption Unit is in charge of the prosecution.
Houston County Man Sentenced to 10 Years in Solicitation of Murder PlotRead the Press Release
TYLER, Texas – A Grapeland, Texas man, and his girlfriend, have been sentenced to federal prison for violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Reynaldo Campos, Jr., 45, pleaded guilty on August 12, 2022, to murder for hire and was sentenced to 120 months in federal prison today by U.S. District Judge Jeremy D. Kernodle.
According to the indictment, on Feb. 9, 2022, Campos contacted an individual who he believed was a hitman, but who was in fact an undercover federal agent, and solicited the “hitman” to murder a former associate of Campos, claiming the intended victim had either stolen drugs from him or owed him money. Campos discussed the intended murder with the agent on multiple occasions over the next several weeks. On April 8, 2022, Campos and his girlfriend, Robin Pittman, traveled together from Houston County to Tyler to discuss the murder, to provide the “hit man” with a handgun to be used for the murder, and to provide the “hit man” with information about the intended victim. On April 13, 2022, Campos and Pittman again traveled together from Houston County to Tyler to discuss the murder and to provide the “hit man” with approximately one gallon of Phenylacetone/P2P, which is a chemical used in the manufacture of methamphetamine, and a shotgun as partial payment for the murder of the intended victim.
Campos and Pittman were indicted by a federal grand jury on April 21, 2022. Pittman, also known as Robin Hill, 42, of Grapeland, pleaded guilty on August 9, 2022, to possession of a firearm in furtherance of a drug trafficking crime and was sentenced to 60 months in federal prison today by Judge Kernodle.
This case was investigated by the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Jim Noble.
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Holmen Man Sentenced to 12 Years for Methamphetamine TraffickingRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Todd Valentine, 53, Holmen, Wisconsin was sentenced today by Chief U.S. District Judge James D. Peterson to 12 years in federal prison for distributing 500 grams or more of methamphetamine. The prison term will be followed by 5 years of supervised release. Valentine pleaded guilty to this charge on October 24, 2022.
In early 2021, law enforcement officers were made aware that Valentine was distributing significant quantities of methamphetamine. On April 19, 2021, Marquette County Sheriff’s Office deputies conducted a traffic stop on a vehicle in which Valentine was a passenger. After a positive K9 alert, officers searched the vehicle and found 71 grams of methamphetamine.
The next day, La Crosse law enforcement officers conducted a search of Valentine’s residence in Holmen, allowed under state law because he was on state supervision for a prior gun and drug case. In Valentine’s bedroom, officers found over 7 pounds of methamphetamine and $5,800 in U.S. currency. In a detached shed on the property, officers located a Ruger .22 caliber handgun with a scratched off serial number. Valentine was prohibited from legally possessing a firearm based on multiple prior felony convictions.
Valentine was interviewed twice by law enforcement. He admitted to possessing the methamphetamine found in his room and to dealing up to multiple pounds of methamphetamine per day. He also admitted to possessing the Ruger handgun.
At the time of these events, Valentine was on state supervision for possessing methamphetamine with the intent to distribute and possessing a firearm as a convicted felon. His supervision was revoked in August of 2021, and he was ordered to serve 2 years in state prison.
At sentencing, Judge Peterson highlighted the significant quantities of methamphetamine that Valentine was trafficking, as well as his history of unrelenting criminal activity which included 32 prior convictions over the past three decades.
The charge against Valentine was the result of an investigation conducted by the La Crosse Police Department, La Crosse County and Marquette County Sheriffs’ Offices, Federal Bureau of Investigation, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Steven P. Anderson and Chadwick M. Elgersma prosecuted this case.
HSI Arrest Teacher for Transferring Obscene Material to a Minor and Attempted Receipt of Child Exploitation MaterialRead the Press Release
SAN JUAN, Puerto Rico – On Friday, February 10, 2023, Homeland Security Investigations (HSI) arrested an Arecibo man for violation to Title 18, United States Code, Section 2252 (a)(2), which criminalizes the attempted receipt of any visual depiction that involves a minor engaging in sexually explicit conduct and Title 18, United States Code, Section 1470, which criminalizes the transfer of obscene material to a minor. The arrest follows an investigation by HSI, in cooperation with the Puerto Rico Department of Education and the United States Attorney’s Office for the District of Puerto Rico.
According to the indictment, on or about May 17, 2020, Jonathan Ortiz-Medina, 36, did knowingly transfer obscene matter to an individual who had not attained the age of sixteen and attempted to receive from a female minor via messaging services images depicting the minor engaging in sexually explicit conduct.
“As a teacher, the defendant held a position of trust in our society – which he betrayed when he committed the alleged illegal conduct,” said W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. “We will continue to work with our law enforcement partners to aggressively investigate and prosecute persons who exploit minors for sexual purposes and use technology to further victimize these children.”
“Individuals in positions of trust need to understand that there is no place in our society to abuse that trust and taint the position of our teachers. Our schools have no place for predators, our children need to feel safe at school,” said Acting Special Agent in Charge Rebecca González-Ramos. “To those contemplating abusing positions of public trust, we will continue working with our local and federal partners and using all resources available and robust investigative authorities to identify you, arrest you and prosecute you.”
“The Department of Education will not tolerate any criminal act that affects our school community where an atmosphere of harmony and learning must prevail. We invite any student or employee to report suspicious activity to the social-emotional team, teachers, and security officers in each of our schools,” said Eliezer Ramos Parés, Puerto Rico Department of Education Secretary. “We will continue to collaborate with law enforcement agencies in all investigations, specifically those who threaten our students’ safety.”
On Friday, Ortiz-Medina had his initial hearing before U.S. Magistrate Judge Marcos López. The defendant was transferred to the Guaynabo Metropolitan Detention Center to await further judicial proceedings.
If convicted, Ortiz-Medina faces a statutory minimum sentence of five years up to 20 years of imprisonment followed by a term of supervise release of 5 years up to life for the attempted receipt of child pornography; and up to 10 years imprisonment followed by a term of supervised release of three years for the transfer of obscene material to a minor. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney Jenifer Y. Hernández-Vega, Chief of the Child Exploitation and Immigration Unit is prosecuting the case.
HSI is the principal investigative arm of U.S. Department of Homeland Security and a vital U.S. asset in combatting transnational crime and threats. One of HSI’s top priorities is to protect the public from crimes of victimization, and HSI’s child exploitation investigations program is a central component of this mission. HSI is recognized as a global leader in this investigative discipline. HSI utilizes its vast authorities, international footprint and strong interagency and public-private partnerships to identify and rescue child victims, identify and apprehend offenders, prevent transnational child sexual abuse and help make the internet a safer place for children.
For more information about HSI’s efforts to protect children from online sexual abuse, visit https://www.ice.gov/topics/iGuardians.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Guatemalan Man Charged with Illegal ReentryRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced Bartolo De Jesus Felipe-Morales, age 39, of Guatemala, was indicted yesterday by a federal grand jury with illegal re-entry into the United States by a previously removed alien.
According to United States Attorney Gerard M. Karam, the indictment alleges that Felipe-Morales was previously removed from the United States to Guatemala on five (5) prior occasions dating back to 2003, and it is alleged that Felipe-Morales illegally reentered the United States sometime after his most recent removal in February of 2014. The indictment also alleges that on December 17, 2022, Felipe-Morales was encountered in Lackawanna County, Pennsylvania.
This matter was investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Assistant United States Attorney Brian Gallagher is prosecuting the case.
Felipe-Morales faces a maximum penalty of 2 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Franklin County Drug Dealer Sentenced as Career OffenderRead the Press Release
NEW BERN, N.C. – Jermaine Carlton Jones, 45, was sentenced today to 160 months in prison for possession with intent to distribute cocaine and marijuana and being a felon in possession of a firearm. On February 7, 2022, Jones pled guilty to the charges. Jones is a convicted felon and is considered a Career Offender under federal sentencing law because of previous convictions for violent crimes.
According to court documents and other information presented in court, the Franklin County Sheriff’s Office (FCSO) Drug Unit began an investigation into Jones in October 2020 after responding to a report of a gunshot victim. When they arrived on scene, officers encountered Jones who stated he had been shot in the head. During the investigation of the crime scene, officers with FCSO recovered 56.5 grams of cocaine and a loaded 9mm handgun loaded with ammunition. Thereafter, the FCSO utilized a confidential informant to make four controlled purchases of cocaine from Jones at his residence on Halifax Road in Louisburg, North Carolina. In January 2021, the FCSO executed a search warrant on that residence and recovered 372 grams of marijuana, 100 grams of cocaine, a digital scale, $10,615 in cash, and a loaded revolver. On June 2, 2021, the FCSO attempted to serve Jones with a federal arrest warrant based on the above conduct and observed him conduct a hand-to-hand drug transaction. A later search of Jones’ residence upon his arrest yielded an additional amount of cocaine, cocaine base (crack), and marijuana.
Jones prior convictions include assault with a deadly weapon with intent to kill, selling or delivering cocaine, possession with intent to sell or deliver marijuana, and several misdemeanor convictions.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Franklin County Sheriff’s Office investigated the case and Assistant U.S. Attorney Robert J. Dodson prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:21-CR-223-FL.
Former Winchester Man Sentenced to 41 Months for Bank FraudRead the Press Release
LEXINGTON, Ky.— Christopher “Rusty” Custer, 55, formerly of Winchester, Ky., but now residing in Conroe, Texas, was sentenced to 41 months in federal prison on Wednesday, by Chief U.S. Judge Danny C. Reeves, after pleading guilty to bank fraud.
According to Custer’s plea agreement, he admitted to lying to Traditional Bank to obtain two loans, totaling more than $1.5 million, for the purchase of a home and property to be used for an equine business. He also admitted to lying to victim P.H., to obtain a $75,000 personal loan. Custer conceded that he provided the bank and P.H. with false personal financial statements, supported by falsely manipulated documentation from well-known financial institutions, suggesting he was worth more $6 million. Actual records from these financial institutions showed at most a $100.00 closing balance in one account. He also exaggerated the value of his personal assets, claiming to own roughly $300,000 in household goods and furniture, when seeking loans from Traditional Bank and P.H.; but he then admitted he owned roughly $20,000 worth of these same items in his bankruptcy filing.
After repaying P.H. and the foreclosure on the property he bought with the proceeds of the Traditional Bank loans, Custer still owes more than $500,000 in restitution.
Custer pleaded guilty on October 21, 2022.
Under federal law, Custer must serve 85 percent of his prison sentence, upon his/her/their release from prison will be under the supervision of the U.S. Probation Office for five years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and Kathy Enstrom, Special Agent in Charge, Office of Inspector General, Federal Deposit Insurance Corporation, jointly announced the sentence.
The investigation was conducted by the FDIC Office of Inspector General. The United States was represented by Assistant U.S. Attorneys Kathryn Dieruf and Kate Smith.
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Former VP and Chief Operating Officer of Chicago Area Hospital Indicted for FraudRead the Press Release
CHICAGO — A federal grand jury in Chicago, Illinois, returned an indictment on February 15, charging the former Vice President and Chief Operating Officer of a Chicago area hospital with three counts of mail fraud and three counts of money laundering.
According to the indictment, beginning in or around December 2013 and continuing until in or around July 2021, ROBERT SPADONI, 58, of Darien defrauded the Chicago area hospital out of approximately $622,500. Despite being required to comply with the hospital’s conflict of interest policy, which prohibited, among other things, employees and their family members from having a financial interest in an organization doing and seeking to do business with the hospital, Spadoni caused the hospital to enter into a professional services agreement with Medical Education Solutions (MES), a company established by Spadoni. The contract between the hospital system and MES was for MES to provide administrative support and compliance services to the hospital’s podiatry residency program.
The indictment alleges that, under the terms of the MES agreement, the hospital agreed to pay $6,500 per month for the purported services Spadoni knew would not be provided by MES. Spadoni concealed, and attempted to conceal, his and a family member’s financial interest in MES, providing a direct report with a $1,500 monthly cash payment in order to perform the administrative support and compliance services that were covered by the MES agreement. Spadoni and the family member are alleged to have used the remaining funds obtained from the hospital for their own personal benefit and the personal benefit of others.
Arraignment in federal court has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Robert W. Wheeler, Jr, Special Agent-in-Charge of the Chicago Field Office of the FBI; and Kwame Raoul, Illinois Attorney General. The government is represented by Assistant U.S. Attorney Chester Choi.
The public is reminded that an indictment contains only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of mail fraud is punishable by up to 20 years in federal prison and each count of money laundering is punishable by up to 10 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Former Office Manager of New Jersey Medical Practice Admits Conspiring with Doctor to Divert Controlled SubstancesRead the Press Release
NEWARK, N.J. – A former office manager of a New Jersey medical practice admitted conspiring with the doctor who owned the practice to distribute prescription amphetamine to patients without a legitimate medical reason, U.S. Attorney Philip R. Sellinger announced.
Noel DeLeon, 55, of North Arlington, New Jersey, pleaded guilty by videoconference before U.S. District Judge Claire C. Cecchi to an information charging him with one count of knowingly and intentionally conspiring to distribute dextroamphetamine-amphetamine (brand name Adderall), a Schedule II controlled substance, outside the usual course of professional practice and not for a legitimate medical purpose.
According to documents filed in this case and statements made in court:
From January 2018 to March 2021, DeLeon worked as an office manager for a New Jersey medical practice owned by a doctor. The doctor performed no meaningful evaluation of patients and the interactions between the doctor and patients generally took less than five minutes. The medical practice kept inadequate patient medical records. For some patients, the patient files only contained contact and prescription information, but did not detail any meaningful evaluation or assessment. For other patients, no patient files were kept.
After prescribing medications to a patient, including high dosage amphetamines, DeLeon or the doctor would typically collect a cash payment from the patient before providing the prescription. For prescription refills, patients would also contact DeLeon directly by sending text messages to his personal cellular phone. DeLeon would order the prescription refill at the patient’s pharmacy and collect payment from the patient, typically through an electronic payment application on DeLeon’s personal cellular phone. At times, certain patients provided cash bribes to DeLeon in order to receive their prescription refills faster.
The charge of conspiracy to distribute amphetamines carries a maximum penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for June 22, 2023.
U.S. Attorney Sellinger credited diversion investigators and special agents of the Drug Enforcement Administration, under the direction of Acting SAC Daniel J. Kafafian, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Adam Baker of the Opioid Abuse Prevention and Enforcement Unit in Newark.
Defense counsel: Tess Cohen Esq., New York
Former New Bedford Man Extradited for Wire Fraud and Money Laundering Arising from Alleged "Romance Scam"Read the Press Release
BOSTON – A former New Bedford man has been extradited to the United States from the United Kingdom to face wire fraud and money laundering charges involving funds obtained from “romance scam” victims.
Chukwunonso “Douglas” Umegbo, a/k/a James Abbott, a/k/a Michael Philips, a/k/a Richard Armani, 37, formerly of New Bedford, was arrested in London on April 4, 2022 and was extradited to the United States on Feb. 10, 2023. Following an initial appearance in federal court in Boston on Feb. 13, 2023, Umegbo was detained pending a hearing set for March 2, 2023. Umegbo was indicted in February 2021 on six counts of making a false statement to a bank, two counts of wire fraud and one count of money laundering.
According to the charging documents, between no later than 2018 through at least 2019, Umegbo opened bank accounts in the greater Boston area using fake identity documents. It is alleged that the bank accounts were used to receive fraudulently obtained funds from a number of victims of romance scams, in which perpetrators create fictitious online personas to develop online romantic relationships with individuals in the U.S., and then leverage those relationships to obtain money and/or property. Once the fraudulently obtained funds reached the accounts controlled by Umegbo, Umegbo allegedly withdrew the money in cash, used the funds to purchase cashier’s checks, or spent the money on personal purchases. Altogether, the fraudulent accounts received more than $560,000.
The charge of making a false statement to a bank provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of $1 million. The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss from the scheme, whichever is greater. The charge of money laundering provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $500,000, or twice the value of the criminally derived property. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Darnell Edwards, Acting Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. The Justice Department’s Office of International Affairs provided valuable assistance. Assistant U.S. Attorney Kristen A. Kearney of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former MPD Lieutenant Pleads Guilty to Assault with a Dangerous WeaponRead the Press Release
WASHINGTON – Brahm Persaud, 69, a Maryland resident, pleaded guilty today to assault with a dangerous weapon for an incident in which he confronted Mr. Kevin Pinkett and other civilians with a firearm while attending a birthday party in Southeast Washington, DC, announced U.S. Attorney Matthew M. Graves and Chief Robert J. Contee III, of the Metropolitan Police Department. Persaud pleaded guilty in the Superior Court of the District of Columbia, to a charge of Assault with a Dangerous Weapon. He will be sentenced by the Honorable Lynn Leibovitz on September 21, 2023.
According to court documents, on October 4, 2019, at approximately 10:30pm, at 1253 Sumner Road SE, the defendant, a former lieutenant of the Metropolitan Police Department (MPD), pulled out a firearm and pointed the firearm at a house where civilians were attending a birthday party. While pointing the firearm at the house in front of innocent civilians, the defendant repeatedly yelled that someone would die that night and eventually fired one shot in the air.
MPD officers arrived on scene and arrested the defendant. During the course of the arrest, the defendant admitted to possessing the firearm and to firing a shot in the air. Alongside the street of 1253 Sumner Road, officers located a single shell casing and a single round of ammunition.
In announcing the plea, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Allison Daniels. Finally, they commended the efforts of Assistant U.S. Attorney Omeed A. Assefi, who investigated and prosecuted the case.
Former Digital Interactive Whiteboards Salesman Pleads Guilty to Rigging Bids to the Largest Public-School System in the United StatesRead the Press Release
A former salesman pleaded guilty today for his leading role in a bid rigging scheme involving the sales of certain brands of digital interactive whiteboards to the New York City Department of Education Public Schools (NYCDOE).
According to court documents filed in the U.S. District Court for the Southern District of New York, Dwayne Johnson, of Islandia, New York, engaged in a conspiracy from late 2018 through at least October 2020, to subvert the NYCDOE’s competitive bidding process and ensure that companies controlled by his co-conspirators submitted winning bids for the sale of digital interactive white boards to the NYCDOE. Johnson’s scheme ensured that all members of the conspiracy profited at the NYCDOE’s expense: Johnson sold boards to his co-conspirator that won the bid, the winning co-conspirator made the sale to the NYCDOE, and the losing co-conspirator was paid to install the boards in the classrooms. Johnson also created and submitted sham bids in order to ensure his co-conspirator won the bid.
“This crime targeted the country’s largest public school system, which serves more than a million school children every day,” said Acting Director of Criminal Enforcement Emma Burnham of the Justice Department’s Antitrust Division. “We will work tirelessly to prevent and punish any bid-rigging schemes that victimize our local governments and our schools. The division and our partners remain committed to protecting the government procurement process at all levels of government.”
“As he admitted today, Johnson deliberately conspired to manipulate a competitive bidding process for his own benefit,” said Assistant Director-in-Charge Michael J. Driscoll for the FBI New York Field Office. “The NYCDOE and ultimately the children of our city were victimized by this illicit scheme. The FBI will continue to investigate and hold accountable anyone willing to engage in anti-competitive corruption.”
“As charged, the defendant interfered with a fair and competitive process; actions that undermine the public trust," said Special Commissioner Anastasia Coleman of the Office of the Special Commissioner of Investigation (SCI) for the New York City School District. “This investigation demonstrates the commitment of SCI and its partners to protecting New York City public schools from schemes that undermine competition among vendors, and which ultimately affect the learning environment of all New York City students.”
Johnson pleaded guilty to a violation of Section 1 of the Sherman Act. For individuals, the maximum penalty is 10 years in prison and a $1 million criminal fine. The fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Antitrust Division’s New York Office is prosecuting the case, which was investigated with the assistance of the FBI New York Field Office and the SCI for the New York City School District.
Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.
Former Bond Trader and Hedge Fund Founder Jeffrey Soberman Parket Pleads Guilty to $65 Million Ponzi Lending SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Daniel B. Brubaker, Inspector in Charge of the New York Division of the U.S. Postal Inspection Service (“USPIS”), announced that JEFFREY SOBERMAN PARKET, a former bond trader and the former principal of several hedge funds, pled guilty today in Manhattan federal court to wire fraud and bank fraud. PARKET obtained over $65 million in loans from individual and institutional lenders by fabricating assets, doctoring bank and brokerage statements, and forging business correspondence and signatures, resulting in over $37 million in victim losses. PARKET pled guilty before United States District Judge Mary Kay Vyskocil.
U.S. Attorney Damian Williams said: “Parket traded on his reputation as a respected financier and fabricated paper assets to defraud lenders of millions of dollars in loans that they never would have made if not for his lies and the sophisticated ruses he used to support those lies. His scheme cost some of his victims everything they had. He will now be held accountable for his deceit.”
USPIS Inspector in Charge Daniel B. Brubaker said: “Parket took advantage of his investors’ trust, among them his friends and family members, and perpetrated an intricate scheme involving fraudulent documents and identity theft to hide his fraud from them. However, Postal Inspectors and our law enforcement partners unraveled Parket’s web of deceit and exposed all his crimes. Parket’s conviction today vindicates the investors he defrauded of almost $40 million. His conviction should also serve as a warning to would-be fraudsters: Postal Inspectors will dedicate every resource in our arsenal to protect the integrity of the mail and pursue anyone who betrays the public trust and preys on innocent investors.”
As alleged in the Complaint and Information and based on other filings and statements made in court:
From at least 2016 through December 2021, PARKET fraudulently obtained over $65 million in short-term loans from individuals and financial institutions by materially misrepresenting his financial condition and pledging fake collateral. Claiming that he needed short-term liquidity for investment opportunities or real estate purchases, PARKET constructed elaborate stories and submitted hundreds of pages of supporting documents to obtain loans he had no intention of repaying. Among other things, he falsified bank and brokerage statements and contracts allegedly reflecting his significant assets and ownership interests in valuable investment accounts. To furnish proof of some of these ownership interests, PARKET also used the names, titles, and forged signatures of actual company executives he falsely claimed were his business associates. He created fake email addresses for them and forged lengthy email correspondence regarding measures supposedly taken by PARKET and his purported business associates to secure the loans.
To perpetuate the scheme, PARKET used loans from new lenders to pay back earlier lenders. He also made fraudulent representations about delayed acquisitions and temporary liquidity issues to induce his existing lenders to extend the maturity date of his loans or to provide him millions of dollars in additional loans.
PARKET’s individual victims included friends and professional acquaintances, some of whom he persuaded to provide him numerous loans. His institutional victims included short-term bridge lenders, a real estate services company, a bank insured by the Federal Deposit Insurance Corporation, and an insurance company focused on helping clients save for retirement.
Throughout the offense period, PARKET also persuaded family members to transfer funds to his personal accounts by falsely promising to safely invest their life savings on their behalf. He then used the funds to pay down fraudulently obtained loans.
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PARKET, 59, of Great Neck, New York, pled guilty to one count of wire fraud affecting a financial institution and one count of bank fraud, each of which carries a maximum potential sentence of 30 years in prison.
The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. Sentencing has been scheduled for June 28, 2023.
Mr. Williams praised the outstanding investigative work of USPIS.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Jane Y. Chong is in charge of the prosecution.
Foreign woman gets substantial sentence for importing methRead the Press Release
McALLEN, Texas - A 36-year-old Mexican national has been ordered to federal prison for attempting to enter the United States with more than 50 kilograms of meth concealed within her vehicle, announced U.S. Attorney Alamdar S. Hamdani.
Miriam Nayely Lopez-Hernandez pleaded guilty to importation of a controlled substance July 28, 2021.
Today, District Judge Micaela Alvarez sentenced her to 135 months in federal prison. Not a U.S. citizen, Lopez-Hernandez is expected to face removal proceedings following her imprisonment. In handing down the sentence, the court noted her role in the offense was not a minimal nor minor one and emphasized the dangerousness perpetuated by drug trafficking in both the United States and in Mexico.
On March 24, 2022, Lopez-Hernandez attempted to enter the United States from Mexico via the Hidalgo Port of Entry in a motor vehicle, at which time a K-9 alerted to the vehicle. An x-ray examination ultimately resulted in the discovery of 24 packages containing 51.78 kilograms of meth concealed within the tires of the vehicle.
Further investigation revealed Lopez-Hernandez’s vehicle had crossed into the United States seven days prior. Authorities had discovered no abnormalities. Messages on her phone indicated she had delivered the vehicle to others the night before her attempted arrival.
She has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with assistance from Customs and Border Protection. Assistant U.S. Attorney Lee Fry prosecuted the case.
Five-Time Convicted Felon Found Guilty of Drug Trafficking and Firearm OffensesRead the Press Release
COLUMBUS, Ga. – A Columbus resident with a violent criminal history was convicted by a federal jury on charges related to armed methamphetamine trafficking.
Karzarta Piett, 41, was convicted on Feb. 14 of possession of more than five grams of methamphetamine with intent to distribute and illegal possession of a firearm by a convicted felon following a two-day trial that began on Feb. 13 before U.S. District Judge Clay Land. Piett faces a maximum of 40 years in prison to be followed by at least four years of supervised release and a maximum fine of $5,000,000 for distribution of methamphetamine and a maximum of ten years in prison to be followed by at least three years of supervised release and a $250,000 fine for illegally possessing a firearm.
“Violent re-offenders engaged in armed drug trafficking will face federal prosecution,” said U.S. Attorney Peter D. Leary. “Local, state and federal law enforcement agencies are committed to stopping violent, repeat offenders in our district and holding them accountable for their crimes.”
“This meth dealer brazenly continued his drug trafficking activities despite being a five-time convicted felon,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “His conviction removes yet another dangerous criminal from our streets and sends a clear message to others who may choose to follow the same perilous path. DEA and its law enforcement partners will relentlessly pursue criminals like Mr. Piett.”
“This case exemplifies our commitment to prevent drugs and criminal activity from poisoning our communities,” stated ATF Special Agent in Charge Beau Kolodka. “It also sends a clear message that we will relentlessly pursue and prosecute members of these drug enterprises.”
“One of our main goals is to protect our community from violent offenders like Karzarta Piett, who was engaged in reckless and destructive offenses. Piett will face the consequences of his actions because of the hard work of our Columbus Police Department Investigators and the U.S. Attorney’s Office. We are grateful for the critical support of our law enforcement partners, without whom this conviction would not have been possible. This investigation demonstrates our continued commitment to removing violent criminals and drug traffickers from our streets,” said Columbus Police Department Chief Freddie D. Blackmon, Columbus Police Department
According to court documents and evidence presented at trial, Piett was pulled over by Columbus Police Department (CPD) officers for multiple traffic violations on Jan. 7, 2021, after he was observed leaving a bar known for its drug trafficking activity. Piett was driving with a suspended license. Officers observed drug residue in the car; a K-9 unit was requested and a drug detection canine alerted to the presence of narcotics. A search of the defendant’s vehicle based on probable cause recovered two ounces of methamphetamine, a loaded pistol, a digital scale, plastic bags and approximately $1500 cash in the center console, plus more than $2,000 cash in Piett’s pocket. A check of the defendant’s criminal background revealed a lengthy criminal history spanning 20 years, with five prior felony convictions including two separate convictions for aggravated assault and convictions for kidnapping, false imprisonment, robbery, terroristic threats and multiple drug distribution charges.
Following Piett’s June sentencing in the Middle District of Georgia, he will be transferred to the Middle District of Alabama where he is currently under indictment for conspiracy to distribute more than 50 grams of methamphetamine. An indictment is merely an allegation of criminal conduct and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by DEA, ATF and the Columbus Police Department.
The case is being prosecuted by Assistant U.S. Attorney Crawford Seals.
Federal Inmate Sentenced to More Than Seven Years in Prison for Assaulting Federal Correctional OfficerRead the Press Release
ROCKFORD — A former inmate of the United States Penitentiary in Thomson, Ill. was sentenced today to more than seven years in federal prison for assaulting a federal correctional officer.
JOSEPH VAN SACH, 50, was found guilty of the offense on March 15, 2022, following a seven-day jury trial in federal court in Rockford.
According to evidence at trial, on April 2, 2019, while in custody at USP Thomson, Van Sach forcibly assaulted a correctional officer who was engaged in the performance of his official duties. Van Sach made physical contact and inflicted bodily injury to the officer.
U.S. District Judge John Robert Blakey imposed the sentence after a hearing in federal court in Rockford.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government was represented by Assistant U.S. Attorneys Jessica Maveus and Vincenza L. Tomlinson.
East Lansing Man Indicted for Kidnapping and Raping Italian Teen, Attempting to Rape Another Teen, and Sexually Exploiting Two MinorsRead the Press Release
GRAND RAPIDS, MICHIGAN —U.S. Attorney for the Western District of Michigan Mark Totten announced that yesterday a federal grand jury returned an indictment containing five charges against Arisknight Arkin-Everett Winfree of East Lansing, Michigan. The charges include kidnapping, coercing and enticing someone to travel for the purposes of illegal sexual activity, attempted coercion and enticement, and two counts of sexual exploitation of a minor. If convicted, Winfree faces a maximum of life in prison.
“These alleged crimes, and the facts behind them, portray an online predator who methodically planned and executed his criminal scheme,” said U.S. Attorney Mark Totten. “We are handling this case with the utmost seriousness and will continue to work every day to protect the public – and especially our young people – from those online who would do them harm.”
The Indictment alleges Winfree posted a false advertisement for an au pair, arranged for a teenager to travel from Italy to East Lansing to work for him, and then kidnapped and raped her. In luring the Italian teen to West Michigan, Winfree told her his fictional family loved nature and the outdoors, and that she was going to have so much fun:
Once she arrived, Winfree demanded the Italian teen clean his house before handcuffing her, placing a ball gag in her mouth, and raping her. Winfree used his false au pair advertisement to lure another teenager to travel to his house, this one from Kansas. When her family realized the situation was not safe, they contacted the police, who then responded and removed her from Winfree’s house.
Winfree is also charged with sexual exploitation of two minor girls for producing child pornography of them. The defendant recorded himself having sexual intercourse with one of the girls, and he convinced the other to send him pornographic videos through the smartphone application SnapChat. In speaking with a friend, Winfree stated he wanted to use one of the girls to recruit more high school girls for him to sexually exploit:
The United States filed a criminal complaint against Winfree on January 23, 2023, he was arrested the next day, and a magistrate judge ordered him detained pending grand jury review.
“While the harm Mr. Winfree is alleged to have inflicted on these victims cannot be undone, the charges announced are a first step towards getting justice for the brave young women who came forward to tell their stories,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “More young women would have undoubtedly been victimized but for the hard work of the FBI and the East Lansing Police Department. We remain committed to working with our partners to pursue those who seek to harm members of our community.”
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney’s Office for the Western District of Michigan; county prosecutor’s offices; HSI; Michigan State Police’s Internet Crimes Against Children task force; the West Michigan Based Child Exploitation Task Force (WEBCHEX); and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. Anyone with information or concerns about possible child exploitation should contact local law enforcement. For more information about Project Safe Childhood in West Michigan, including resources for children and parents, please visit: https://www.justice.gov/usao-wdmi/project-safe-childhood
The FBI and East Lansing Police Department are investigating this case, and Assistant U.S. Attorney Davin Reust is handling the prosecution of Winfree.
The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
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Duluth Nail Salon Proprietors Charged with Tax Fraud ConspiracyRead the Press Release
MINNEAPOLIS – A Duluth couple has been charged with conspiracy and tax fraud after failing to pay taxes on their nail salon business income, announced U.S. Attorney Andrew M. Luger.
According to court documents, An Ngoc “Ritchie” Nguyen, 44, was the operator and sole proprietor of Q Nails salon located in Duluth. Tram Anh “Ann” Nguyen, 41, was the operator and sole proprietor of Crystal Nails salon located in Superior, Wisconsin. From at least 2016 through at least October 2020, the defendants unlawfully conspired with each other and others to defraud the Internal Revenue Service by reporting on their individual income tax returns only the credit card sales, or including a false, nominal amount of cash sales, from their Q Nails and Crystal Nails salons. The defendants also falsely claimed to reside at two different addresses and agreed to divide their three children—with whom they jointly resided—as dependents in order to fraudulently claim head of household status on both of their individual income tax returns.
Ritchie Nguyen is charged with one count of conspiracy to defraud the United States and four counts of making and subscribing a false tax return. Ann Nguyen is charged with one count of conspiracy to defraud the United States and three counts of making and subscribing a false tax return. The defendants are scheduled to make their initial appearances in U.S. District Court on March 7, 2023, before Magistrate Judge Leo I. Brisbois in Duluth.
This case is the result of an investigation conducted by IRS – Criminal Investigations.
Assistant U.S. Attorney Kimberly A. Svendsen is prosecuting the case.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Doctor Admits Health Care Fraud ConspiracyRead the Press Release
CAMDEN, N.J. – A doctor who owns a medical clinic in Newark today admitted defrauding New Jersey state and local health benefits programs and other insurers by submitting fraudulent claims for medically unnecessary prescriptions, Attorney for the United States Vikas Khanna announced.
Saurabh Patel, 51, of Woodbridge, New Jersey, pleaded guilty by videoconference before U.S. District Judge Robert B. Kugler to a superseding information charging him with one count of conspiring to commit health care fraud. Saurabh Patel was previously charged by indictment with conspiring in the health care fraud scheme with a family member, Kaival Patel, 52, of West New York, New Jersey. Kaival Patel was also charged with conspiracy to commit money laundering, substantive counts of money laundering, and making false statements to federal agents. The charges against Kaival Patel are merely accusations, and he is presumed innocent unless and until proven guilty. He is scheduled to proceed to trial later this year.
According to court documents and statements made in Court:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
Patel is a medical doctor who owns and operates a clinic in Newark. Despite having no background in pharmaceuticals or medicine, Kaival Patel and his wife created and operated a company called ABC Healthy Living LLC (ABC) to market medical products and services, including compound prescription medications. A pharmaceutical sales representative, Paul Camarda, also created a company and worked with Kaival Patel to promote compound medications. Camarda pleaded guilty before Judge Kugler in Camden federal court on July 6, 2021, to health care conspiracy and conspiring to commit money laundering and obstruct justice. He awaits sentencing.
The conspirators learned that certain state and local government employees had insurance that would reimburse up to thousands of dollars for a one-month supply of certain compound medications. Kaival Patel and Camarda approached Saurabh Patel and convinced him to authorize prescriptions for the compound medications for which they received commissions, regardless of whether or not those prescriptions were medically necessary. The conspirators steered individuals who were paid to receive the compound medications to Saurabh Patel’s medical practice for the purpose of receiving his authorization on the fraudulent prescriptions. This enabled Saurabh Patel to receive insurance payments for those patient visits and procedures. In addition to the people steered to Saurabh Patel’s medical practice as part of the scheme, Kaival Patel also instructed Saurabh Patel on which insurance companies covered the compound medications and requested that he prescribe those medications to existing patients of his practice with those insurance plans in order to further benefit Kaival Patel and his wife.
Saurabh Patel faces a maximum penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for June 27, 2023.
Attorney for the United States Khanna credited agents of the IRS Office of Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins in Newark; FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; and the U.S. Department of Labor Office of Inspector General, New York Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to today’s guilty plea.
The government is represented by Christina O. Hud, Senior Trial Counsel in the Health Care Fraud Unit; R. David Walk Jr., Chief of the Opioid Abuse Prevention and Enforcement Unit; and Assistant U.S. Attorney Daniel A. Friedman of the Criminal Division in Camden.
The charges and allegations against Kaival Patel are merely accusations, and he is presumed innocent unless and until proven guilty.
Defense counsel:
Mary E. Toscano Esq. and Joseph B. Shumofsky Esq., Newark
Dayton man sentenced to more than 20 years in prison for dealing fentanyl cocaine mixture that caused multiple fatal & nonfatal overdosesRead the Press Release
DAYTON, Ohio – A Dayton man was sentenced in U.S. District Court to 250 months in prison for distributing fentanyl and cocaine that resulted in overdoses in the late hours of New Year’s Eve and into the early hours of New Year’s Day 2019.
Kelsey V. Williams, Jr., 41, was indicted by a federal grand jury in the Southern District of Ohio in May 2021 and arrested in June 2021 in Minnesota. He pleaded guilty in federal court in Dayton in January 2022.
According to court documents, on New Year’s Eve 2018 and New Year’s Day 2019, the defendant distributed a fentanyl and cocaine mixture responsible for six total fatal and nonfatal overdoses. Of those six, four died from overdosing, and one was revived by Narcan following a vehicle crash that brought law enforcement and medics to his aid.
“Williams trafficked in drugs that directly resulted in overdoses,” said U.S. Attorney Kenneth L. Parker. “His crimes could not be more serious and have had a devastating impact on families in the Dayton area.”
Parker was joined by J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Dayton Police Chief Kamran Afzal in announcing the sentence imposed yesterday by Senior U.S. District Judge Walter H. Rice. Assistant United States Attorneys Amy M. Smith and Ryan A. Saunders are representing the United States in this case.
This case is being prosecuted as part of Operation S.O.S. In July 2018, the Department of Justice announced the launch of Operation Synthetic Opioid Surge (S.O.S), a program aimed at reducing the supply of synthetic opioids in 10 high impact areas and identifying wholesale distribution networks and international and domestic suppliers.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (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.
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Convicted Felon Sentenced for Possessing AmmunitionRead the Press Release
BOSTON – A Cambridge man was sentenced today in federal court in Boston for illegally possessing ammunition as a previously convicted felon. Multiple guns, ammunition and cash were found in the rental vehicle that the defendant was the sole occupant of.
Kyle Evans, 36, was sentenced by U.S. District Court Judge Richard G. Stearns to 45 months in prison and three years of supervised release. In November 2022, Evans pleaded guilty to one count of being a felon in possession of ammunition.
In August 2020 Evans was pulled over in the City of Everett for failing to stop at a red light. When asked for his license and registration, Evans stated that he did not have a license. Upon confirming that Evans’ driver’s license was suspended and that the car was neither registered to nor leased by him, Evans was arrested. During a subsequent search of the vehicle, $2,344 in cash, a 9 mm loaded semi-automatic pistol, a .380 loaded semi-automatic pistol, a homemade loaded 9 mm semi-automatic pistol with no serial number and a Glock handgun carry case – with a serial number for a Glock that was reported stolen from California – containing a .22 caliber semi-automatic pistol with an obliterated serial number and a 9 mm caliber semi-automatic pistol, and other ammunition, were recovered. Four rounds of .22LR caliber ammunition was also found in Evans’ pants pocket.
Due to a prior conviction punishable by at least one year in prison – including armed robbery with a knife, resisting arrest, heroin possession, assault and battery on a police officer and intimidation – Evans is prohibited from possessing firearms and ammunition.
United States Attorney Rachael S. Rollins; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Everett Police Chief Steven A. Mazzie made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Rollins’ Major Crimes Unit 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.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
Colorado to Receive More Than 4.5 Million Dollars to Combat Gun ViolenceRead the Press Release
DENVER - The United States Attorney’s Office for the District of Colorado announces the Colorado Department of Public Safety will receive $4,564,438 awarded by the U.S. Department of Justice to fund efforts combatting gun violence.
The Justice Department announced 49 awards to states, territories, and the District of Columbia as part of the Byrne State Crisis Intervention Program. The total investment of more than $231 million will fund state crisis intervention court proceedings, including but not limited to, extreme risk protection order (ERPO) programs that work to keep guns out of the hands of those who pose a threat to themselves or others. This investment in community safety is authorized by the Bipartisan Safer Communities Act of 2022, historic legislation to address and reduce gun violence.
“The Justice Department is working relentlessly to protect communities from violent crime and the gun violence that often drives it, and the Byrne State Crisis Intervention Program is an important part of that effort,” said Attorney General Merrick B. Garland. “These awards will support the kinds of crisis intervention programs that we know save lives and help protect children, families, and communities across the country from senseless acts of gun violence.”
“The Department of Justice’s strategy to reduce violent crime and gun violence includes prioritizing support for successful, evidence-based programs,” said Deputy Attorney General Lisa O. Monaco. “The grants announced today invest in and highlight proven state and local violence prevention and intervention programs, that will make our communities safer.”
These awards, administered by the Department’s Office of Justice Programs’ Bureau of Justice Assistance (BJA), provide funding to states for the creation and implementation of extreme risk protection order programs, state crisis intervention court proceedings, and related gun violence reduction initiatives. Extreme risk protection order programs empower family members, health care providers, school officials and law enforcement officers to petition a court to temporarily prevent a person from accessing firearms if they are found to be a danger to themselves or others. Funds can also support interventions like drug, mental health and veterans’ treatment courts, gun violence recovery courts, behavior health deflection and outpatient treatment centers.
“Protecting communities from gun crime is an urgent public safety challenge and a critical part of the Justice Department’s work to ensure that everyone in this country can live free from the fear of violence,” said Associate Attorney General Vanita Gupta. “The resources we are announcing today will give communities the tools they need to prevent firearm violence and deliver support to those who are at risk of committing or being victimized by gun crime.”
The Bipartisan Safer Communities Act also seeks to ensure that extreme risk protection order laws and programs are implemented in accordance with the Constitution and provide for adequate due process protections. Projects funded under this program will need to demonstrate that they have taken measures to safeguard the constitutional rights of an individual subject to a crisis intervention program or ERPO initiative. The Justice Department has long supported state efforts to increase the use of ERPOs and in 2021 the Department released model legislation to help states create their own extreme risk protection order systems and provide for intervention before warning signs turn into tragedy.
"The fight against violent crime and gun violence is a priority for the U.S. Attorney’s Office. We recognize this effort requires an innovative approach, including effective enforcement, prosecution, prevention, and meaningful community engagement. We are confident this funding will help create safer communities, while promoting responsible gun ownership," said United States Attorney Cole Finegan.
“The Colorado Attorney General’s Office is committed to ensuring that our state red flag law saves as many lives as possible. These federal funds from the Byrne State Crisis Intervention Program will help us achieve that goal by improving our training for law enforcement and our outreach to the public,” said Colorado Attorney General Phil Weiser.
"We are excited to partner with the Justice Department to help protect communities across Colorado through this grant program by providing law enforcement and district attorney offices with the resources and tools they need to make an impact in reducing volent crime and gun violence," said Colorado Department of Public Safety Director Stan Hilkey.
Signed into law by President Biden in June 2022, the Bipartisan Safer Communities Act is the most significant piece of federal gun safety legislation in almost three decades and comes as a response to recent mass shootings and to the far more common, but no less tragic, incidents of community gun violence. Including the Byrne State Crisis Intervention Program, the law allocates a total of $1.4 billion to OJP over five years to develop, implement, and sustain meaningful investments in safer communities.
“These awards will help meet two monumental public safety challenges — the alarming proliferation of gun violence in our country and the clear need for front-end interventions to slow the cycle of violence and victimization in our most underserved communities,” said BJA Director Karhlton F. Moore. “The Bureau of Justice Assistance is proud to make these resources available to states as a critical part of its mission to reduce and prevent crime and to promote a fair and effective criminal justice system.”
For a full list of awards, please visit: https://data.ojp.usdoj.gov/stories/s/O-BJA-2023-171458/b5xz-as5z/. These awards are the latest effort from the Department of Justice’s Office of Justice Programs to implement this historic legislation.
Colorado man sentenced to more than 11 years in prison for trafficking meth, fentanyl to MontanaRead the Press Release
BILLINGS — A Colorado man who was convicted of trafficking methamphetamine and fentanyl after Yellowstone County law enforcement found the drugs and a firearm in his vehicle during a traffic stop was sentenced today to 11 years and three months in prison, to be followed by four years of supervised release, U.S. Attorney Jesse Laslovich said.
James Robert Harrelson, 49, of Colorado Springs, Colorado, pleaded guilty in September 2022 to possession with intent to distribute controlled substances.
U.S. District Judge Susan P. Watters presided.
The government alleged in court document that in April 2022, officers with the Eastern Montana High Intensity Drug Trafficking Area Task Force received information that Harrelson was trafficking drugs from Colorado to Billings. An investigation led to a traffic stop of Harrelson by Yellowstone County Sheriff’s deputies. Task force officers searched the vehicle and found meth, fentanyl pills, drug scales, plastic baggies, smoking devices, hypodermic needles and a 9mm handgun. Harrelson admitted that he was transporting the drugs from Colorado to Billings and that the handgun was his.
Assistant U.S. Attorney Colin M. Rubich 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.
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Co-Owner of Multiple Companies Sentenced to 12 Months and A Day in Prison for Failing to Pay over $1 Million in Payroll TaxesRead the Press Release
A co-owner of multiple businesses was sentenced today to 12 months and a day in prison and two years of supervised release for failing to pay over $1 million in payroll taxes for his companies. Omar Mostafa, 57, of New Jersey, pleaded guilty on Aug. 8, 2022, before U.S. District Judge Georgette Castner to an information charging him with willful failure to collect or pay taxes.
California Residents Indicted for Defrauding Architecture Firm of More Than $91,000 by Using Fictitious Law Firm and Fraudulent Target LetterRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Daniel B. Brubaker, Inspector in Charge of the New York Division of the United States Postal Inspection Service (“USPIS”), announced the return of an Indictment today by a grand jury charging MATTHEW BLAKE MORROW-WU and SHANGZHEN WU, a/k/a “Daniel Wu,” with perpetrating a scheme to defraud a Manhattan architecture firm (the “Company”) at which WU was employed as a business manager. MORROW-WU and WU were arrested on February 1, 2023, in Los Angeles, California, pursuant to a criminal Complaint and presented in the Central District of California. The case has been assigned to U.S. District Judge Alvin K. Hellerstein.
U.S. Attorney Damian Williams said: “Morrow-Wu and Wu brazenly used an architecture firm, at which Wu worked, as their personal ATM. They transferred over $91,000 from the architecture firm to a fictitious law firm that they incorporated, forged false documentation that appeared to authorize the fraudulent transactions, and ultimately sent a fake target letter — purportedly from this Office — to the architecture firm threatening it with criminal prosecution after the architecture firm continued to dispute the fraudulent transactions. Morrow-Wu and Wu now face a harsh reality as a result of their elaborate lies and false threats of prosecution: a real prosecution by the Southern District of New York.”
USPIS Inspector in Charge Daniel B. Brubaker said: “Morrow-Wu and Wu conspired to allegedly steal nearly $100,000 from a Manhattan-based business. Their misguided aim was to make money and conceal their scheme by allegedly duping innocent victims into believing they were the target of a federal investigation. By mailing their fictitious letter, Morrow-Wu and Wu attracted the attention of the U.S. Attorney’s Office and Postal Inspectors. In an ironic twist, they became the targets of a federal criminal investigation. Today’s indictment is the next step on the road to justice for this couple. This indictment should serve as a stern warning to anyone who would use the U.S. Mail to commit fraud: Postal Inspectors and our law enforcement partners will tirelessly pursue you across the country, from one coast to another, to bring you to justice.”
According to the allegations contained in the Complaint, the Indictment, and statements at public court proceedings in the case:[1]
From at least in or about January 2022 through in or about October 2022, MORROW-WU and WU perpetrated a scheme to steal more than $91,000 from the Company, where WU was employed as a business manager, through the fraudulent and unauthorized use of a credit card held by the Company. MORROW-WU and WU took extensive steps to conceal the fraud, which included the following:
- Forming a sham law firm named Morrow Law Group (“MLG”) to receive the funds under the guise of receiving legal fees from the Company, despite the fact that neither MORROW-WU nor WU appear to be licensed attorneys.
- Fabricating a retainer agreement between MLG and the Company that purported to pre-authorize payments from the Company to MLG, as well as other correspondence from the Company to MLG purportedly authorizing the fraudulent transactions, and forging the signatures of Company representatives in these documents.
- Using a payment processing provider to process the credit card transactions, enabling MORROW-WU and WU to manually input the names of legitimate vendors of the Company as false recipients of the funds and further disguise the true recipients of the funds.
After the Company confirmed the credit card transactions were fraudulent and unauthorized, it disputed the transactions with the credit card company, leading MORROW-WU and WU to attempt to deter any further action by sending the Company a fake “target letter” from the U.S. Attorney’s Office for the Southern District of New York (the “Fraudulent Target Letter”). The Fraudulent Target Letter purported to be signed by a Special Assistant U.S. Attorney on behalf of the U.S. Attorney and threatened the Company with criminal prosecution for wire fraud, conspiracy to commit wire fraud, and the fraudulent use of credit cards.
* * *
MORROW-WU, 38, and WU, 29, both of Los Angeles, California, are each charged with one count of conspiracy to commit wire and mail fraud, which carries a maximum penalty of 20 years in prison; one count of wire fraud, which carries a maximum penalty of 20 years in prison; one count of mail fraud, which carries a maximum penalty of 20 years in prison; one count of impersonating a federal officer, which carries a maximum penalty of three years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the Special Agents of the United States Attorney’s Office for the Southern District of New York and the U.S. Postal Inspectors of the USPIS.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Jerry J. Fang is in charge of the prosecution.
The charges contained in the Complaint and the Indictment 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 Indictment and the descriptions of the Complaint and the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
California Man Sentenced to 15 Years in South Dakota Meth and Money ConspiracyRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Los Angeles, California, man convicted of Conspiracy to Distribute a Controlled Substance and Conspiracy to Launder Monetary Instruments. The sentencing took place on February 6, 2023.
Daniel Fiero Navarrette, 54, was sentenced to 15 years in federal prison, followed by 10 years of supervised release. He was also ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
Navarrette was indicted for Conspiracy to Distribute a Controlled Substance and Conspiracy to Launder Monetary Instruments by a federal grand jury in September of 2022. He pleaded guilty on October 7, 2022.
In March of 2021, Navarrette reached an agreement to distribute 500 grams or more of a mixture and substance containing methamphetamine in the District of South Dakota.
During his involvement in the conspiracy, he reached an agreement to provide a co-conspirator in South Dakota with large amounts of methamphetamine, and also assisted his co-conspirator in meeting other individuals so that he could obtain multi-pound quantities of methamphetamine. As part of his conspiracy to distribute methamphetamine in South Dakota, the defendant also engaged in Money Laundering.
This case was investigated by the Drug Enforcement Administration, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, IRS Criminal Investigations, South Dakota Highway Patrol, Minnehaha County Sheriff’s Office, and the Sioux Falls Area Drug Task Force. Assistant U.S. Attorney Mark Hodges prosecuted the case.
Navarrette was immediately remanded to the custody of the U.S. Marshals Service.
Armed Wilmington Drug Dealer with Sawed-Off Semiautomatic Rifle Sentenced to 10 Years in Federal PrisonRead the Press Release
NEW BERN, N.C. – Ronesha Greene-McNeil, 36, of Wilmington North Carolina, was sentenced to 120 months in prison for conspiracy, distribution of methamphetamine, and possession of a sawed-off semiautomatic rifle with a 110-round drum magazine.
According to court documents and other information presented in court, between April 7, 2021, and May 26, 2021, Greene-McNeil, on five separate occasions sold a total of more than a kilogram of methamphetamine to an undercover Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) agent in Brunswick County North Carolina. On June 7, 2021, Greene-McNeil also sold a 9mm handgun and a sawed-off .22 caliber semiautomatic rifle with a 110-round drum magazine to undercover ATF agents at the same location in Brunswick County.
On June 23, 2021, Greene-McNeil was stopped in a vehicle she was driving for a traffic violation, and, during a search of her vehicle, Brunswick County Sheriff’s deputies located a kilogram of methamphetamine.
This is part of operation “Golfer” which is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Bureau of Alcohol, Tobacco and Firearms and the New Hanover and Brunswick County Sheriffs’ Office investigated the case and Assistant U.S. Attorney Timothy Severo and Gabe Diaz prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:22-CR-00025-FL.
Anthon, Iowa Man Pleads Guilty to Drug Conspiracy ChargesRead the Press Release
Brett Sauser, 38, from Anthon, Iowa, pled guilty February 10, 2023, in federal court in Sioux City. Sauser was convicted of one count of conspiracy to distribute methamphetamine, cocaine, and fentanyl and one count of possession with intent to distribute methamphetamine within a protected location. Sauser resided within 1000 feet of Memorial Park and Anthon Elementary School in Anthon, Iowa.
At the plea hearing, Sauser admitted that from January 2019 through August 2022, he participated in the distribution of at least 350 grams of methamphetamine and possessed more than 20 grams each of cocaine; fentanyl; ketamine; and MDMA. Sauser obtained the controlled substances through the dark web and would receive the drugs through the U.S. Postal Service. In August of 2022, law enforcement executed a search warrant at Sauser’s residence after a covert delivery of a package containing ¼ pound of methamphetamine. The evidence seized included 3 separate baggies of methamphetamine, approximately 3.5 grams each, plus small amounts of MDMA, heroin, ketamine, LSD, marijuana (including a nearly full-sized marijuana plant), three bags of mushroom roots (for manufacture of psilocybin mushrooms) and various drug use and distribution paraphernalia.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Sauser remains in custody of the United States Marshal pending sentencing. On the conspiracy conviction, Sauser faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least five years of supervised release following any imprisonment. On the possession with intent conviction, Sauser faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 80 years’ imprisonment, a $10,000,00 fine, and at least eight years of supervised release.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4065.
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3 women indicted for conspiring to place arson device in local nail salonRead the Press Release
CINCINNATI – A federal grand jury indicted three women today on charges related to the attempted arson of a nail salon in Monroe, Ohio.
It is alleged that Kim Lien Vu, 45, of Liberty Township, Ohio; Cierra Marie Bishop, 29, of Hamilton, Ohio; and Makahla Ann Rennick, 18, of Hamilton, Ohio, were responsible for initiating an incendiary device at Bora Bora Nail Salon on Hamilton-Lebanon Road in Monroe with the intent of destroying the facility.
It is alleged that Vu enlisted the other defendants to build and help plant the device. Ohio Secretary of State records show that Vu owns two nail salons: Allure Nails Vu LLC and Love Nail Vu LLC.
An affidavit filed in support of a criminal complaint details that on Feb. 5, surveillance camera footage shows Bishop and Rennick entering the salon. Rennick had made an appointment for a pedicure under the name “Katelynn,” allegedly at the direction of Vu for Rennick to get the latest nail appointment she can and to “Just use another name. Sound white.” Rennick is shown receiving her nail services.
Bishop allegedly sat near Rennick during the pedicure and is then seen walking toward the rear of the salon holding two white bags. Bishop placed one of the bags behind a desk before leaving the salon.
A salon employee then found the suspected device, which smelled like gasoline. The employee opened the package, seeing that it looked like an explosive device, and took it outside near the salon’s dumpsters. The employee later went back outside to check on the device and noticed that it was burning.
Monroe police officers responded to a call reporting a dumpster fire near the salon.
Text messages on Bishop’s and Rennick’s phones show the co-defendants planning the incident for at least one week.
Maliciously damaging or destroying property, or attempting to maliciously damage or destroy property, via a fire or explosive device is a federal crime punishable by a range of five to 20 years in prison. Conspiring to commit malicious destruction via fire is punishable by up to five years in prison.
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; Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); Angie Salazar, Special Agent in Charge, U.S. Homeland Security Investigations (HSI); and Monroe Police Chief Bob Buchanan. Assistant United States Attorney Timothy S. Mangan is representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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14 February 2023
Wilmington Man Who Sold 3-D Printed “Ghost Gun” to Undercover Agent Gets More than Six Years in Federal PrisonRead the Press Release
NEW BERN, N.C. – David Hedge, 22, of Wilmington North Carolina, was sentenced to 75 months in prison for distribution of methamphetamine and possession of a firearm in furtherance of a drug trafficking offense, including selling a stolen gun and a privately manufactured firearm, commonly referred to as a “Ghost Gun,” which he bragged did not have any serial numbers and couldn’t be traced by law enforcement.
“Non-serialized ghost guns are increasingly getting into the hands of drug traffickers and contributing to the violence in our communities,” said U.S. Attorney Michael Easley. “Working with the ATF and local law enforcement, we are holding accountable those pushing illegal guns and drugs. The ‘untraceable’ gun the defendant once bragged about has led to a very traceable prison sentence.”
According to court documents and other information presented in court, on September 1, 2021, Hedge sold an ounce of methamphetamine to an undercover Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) agent. The agent asked Hedge if he was armed while he was dealing. Hedge produced a handgun with a high-capacity magazine loaded with 25 rounds. Hedge informed the undercover officer that it was a “Ghost Gun,” and described how the gun had been made on a 3-D printer. The agent purchased the gun from Hedge. On September 8, 2021, Hedge sold the undercover agent 2 loaded firearms, one of which had been reported stolen and almost a half-ounce of methamphetamine.
This is part of operation “Golfer” which is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Bureau of Alcohol, Tobacco and Firearms and the New Hanover and Brunswick County Sheriffs’ Office investigated the case and Assistant U.S. Attorney Timothy Severo and Gabe Diaz prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:22-CR-00037-FL.
Wichita Man Pleads Guilty to Conspiracy to Commit Odometer TamperingRead the Press Release
OKLAHOMA CITY – MICHAEL MARKS, 31, of Wichita, Kansas, pleaded guilty today to conspiracy to commit odometer tampering, announced U.S. Attorney Robert J. Troester.
Public records reflect that on February 10, 2023, Marks was charged by Information with one count of conspiring to alter the odometers of motor vehicles. The Information alleges that between August 2017 and July 2022, Marks and his coconspirators purchased 15 used vehicles, altered their odometers to register lower mileages, and then resold the vehicles to unsuspecting buyers. Federal law prohibits conspiring to knowingly and willfully disconnect, reset, and alter an odometer of a motor vehicle intending to change the registered odometer mileage.
Today, Marks pleaded guilty to the Information. Marks will be sentenced in approximately 90 days. At sentencing, Marks faces up to three years of imprisonment and a fine of $250,000. Under the terms of his plea agreement with the government, Marks has also agreed to pay restitution to the victims who purchased the 15 vehicles.
This case is the result of an investigation by the U.S. Department of Transportation’s Office of Odometer Fraud Investigation. The case is being prosecuted by Assistant U.S. Attorney D.H. Dilbeck.
Reference is made to the Information and other public court filings for further information.
Wheeling man gets 16 years for cocaine traffickingRead the Press Release
WHEELING, WEST VIRGINIA – A Wheeling, West Virginia man was sentenced to more than 16 years in prison today after trafficking cocaine while on federal probation.
Christopher Park, age 51, was sentenced to 198 months for possessing cocaine with the intent to deliver and for violating his supervised release. According to court documents, in May 2022 agents working parcel interdiction identified a package from Phoenix, Arizona containing nearly a kilogram of cocaine meant to be delivered to a Wheeling home. Further investigation connected the package to Park and agents obtained a search warrant for his home, where they seized an additional kilogram of cocaine. Agents also recovered $4,800 in cash.
The Ohio Valley Drug Task Force, a HIDTA-funded initiative; the Wheeling Police Department; and the Belmont County, Ohio Sheriff’s Office investigated.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government.
U.S. District Judge John Preston Bailey presided.
West Palm Beach Healthcare Operator Charged in Employment Tax SchemeRead the Press Release
A federal grand jury in Miami returned an indictment today charging a Florida man with willfully failing to pay over employment taxes and to file individual income tax returns.
According to the indictment, from 2009 to 2019, Paul Walczak of Palm Beach Gardens owned multiple health care companies, including NuVista, Palm Health Partners and a health care employment company called PHP Employment Services, LLC (PHPES), which he formed in July 2010. As the owner of PHPES, Walczak allegedly exercised control over the business’s finances and was responsible for paying over to the IRS the employment taxes, including federal income, Social Security, and Medicare taxes, withheld from his employees’ wages. The indictment alleges that from 2016 to 2019, Walczak did not pay over to the IRS more than $6 million in withholdings.
The indictment further charges that from 2016 through 2018 Walczak received a gross annual salary of at least $360,000 from the health care companies. In addition to his salary, he allegedly received significant wire transfers from his companies. Rather than pay over the withheld funds to the IRS, the indictment alleges Walczak used funds to invest in his businesses, purchase a yacht, lease luxury vehicles and charter private international flights.
Finally, the indictment charges Walczak with not filing personal income tax returns for 2018, 2019 and 2020.
If convicted, Walczak faces a maximum penalty of five years in prison for each employment tax count and one year for each failure to file a tax return count. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Francesca Bartolomey and Mitchell Galloway of the Justice Department’s Tax Division are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Washington, Illinois, Woman Sentenced to 44 Months in Federal Prison for Making False Statement During Purchase of Firearm Later Used in a Violent CrimeRead the Press Release
PEORIA, Ill. – A Washington, Illinois, woman, Kirstin Sue Jackson, 40, of the 300 block of North Summit Drive, was sentenced on February 13, 2023, to 44 months in federal prison for making a false statement during the purchase of a firearm. Upon release from imprisonment, Jackson will serve a three-year term of supervised release.
At the sentencing hearing before U.S. District Judge James E. Shadid, the government presented evidence that in May 2021, Jackson acquired a Glock Model 19x, 9mm pistol from Pekin Gun and Sporting Goods in Pekin, Illinois. Jackson knowingly made a false and fictitious written statement when purchasing the gun. Specifically, Jackson represented she was the actual buyer of the firearm, when in fact, she was purchasing the pistol for her 18-year-old son, Eric Jackson, who could not legally buy or possess the gun.
Following the transfer of the gun from Jackson to her son, the gun was fired at the scene of a July 2021 shooting in the 600 block of Haungs Avenue in Peoria in which 3 individuals were shot. One of the victims, 21-year-old Michael Johnson, was shot in the head and ultimately succumbed to his injuries. The homicide investigation conducted by the Peoria Police Department resulted in the arrest of Eric Jackson and a search of his car, home, and cellphone. During searches of the car and home, police located the Glock 19x pistol purchased by Jackson, as well cannabis, several thousand dollars cash, two boxes of 9mm ammunition, a silver handgun magazine, and a 50-round drum-style magazine loaded with 33 rounds of ammunition. On Eric Jackson’s phone, investigators located text messages that revealed that Jackson knew her son was involved in drug trafficking when she purchased the Glock for him. In a message in May 2021, Jackson asked her son, “Please. Do not let me get my [FOID] card taken or my name on someone’s body.”
Jackson was interviewed by ATF agents in August 2021 and admitted that she lied on the forms at the gun store and had purchased the gun for her son. She stated that her son had paid for the gun, and she purchased it for him because he needed protection due to being in “risky situations.” Jackson admitted that she knew her son was selling drugs and would be in possession of large amounts of money. She also admitted to buying ammunition for him.
Also at the hearing, Judge Shadid stated, “I don’t believe you intended this harm to occur to another person – but you have to be sentenced for your conduct which set in motion the chain of events where a gun was used on a certain night, and at a certain location, where a death resulted and others were shot – all foreseeable consequences of the purchase of this gun for your son.”
Jackson, then residing in South Pekin, Illinois, was indicted in September 2021 and was released on bond under United States Pretrial Supervision. Jackson entered a guilty plea in September 2022 and has remained on bond pending sentencing. She was taken into custody at the conclusion of the sentencing hearing to immediately begin serving her sentence.
The statutory penalties for a false statement during the purchase of a firearm are not more than 10 years’ imprisonment, up to three years of supervised release, and a potential fine of up to $250,000.
“Straw purchasing is not a victimless crime,” said Assistant U.S. Attorney Ronald L. Hanna. “Violence in our communities is being fueled by individuals who are willing to assume the risk of lying during the purchase of a gun and supplying a lethal weapon to someone else. This case should send a message to those thinking about straw purchasing firearms – you have no control over how that gun is used once it leaves your hands – and you will be subject to federal prosecution if you lie when you buy.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Peoria Police Department investigated the case. Assistant U.S. Attorney Hanna represented the government in the prosecution.
The case against Jackson 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.
ATF’s campaign “Don’t Lie for the Other Guy” is a part of PSN aimed at reducing firearm “straw purchases”, the illegal purchase of a firearm by one person for another, and to educate would-be straw purchasers of the penalties of knowingly participating in an illegal firearm purchase. More information about the campaign can be found at: www.dontlie.org.
Violent Drug Dealer Gets More Than 10 Years in Federal Prison for Trafficking MethamphetamineRead the Press Release
NEW BERN, N.C. – Naulege Johnson, 24, of Wilmington, was sentenced to 121 months in prison for distribution of 50 grams or more of methamphetamine. He pled guilty to the charge on October 4, 2022.
According to court documents and other information presented in court, on July 8, 2021, Johnson sold 32 grams of methamphetamine to an undercover Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) agent in Brunswick County, North Carolina. On July 14, 2021, Johnson sold more than 100 grams of actual methamphetamine to the same agent at the same location and more than 160 grams of actual methamphetamine on July 22, 2021. The investigation revealed that Johnson had been validated a member of the United Blood Nation by law enforcement.
Johnson has prior convictions for possession of a stolen firearm (2017) and possession with intent to manufacture, deliver or sell heroin (2020). He was on probation for the heroin charge at the time he committed the current offense. Johnson also has a pending First-Degree Murder charge in New Hanover County.
This is part of “Operation Golfer” which is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Bureau of Alcohol, Tobacco and Firearms and the New Hanover and Brunswick County Sheriffs’ Office investigated the case and Assistant U.S. Attorney Timothy Severo and Gabe Diaz prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:22-CR-00028-FL.
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Vietnamese National Sentenced to 14 Years for Meth Trafficking, Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – A Vietnamese national has been sentenced in federal court for illegally possessing methamphetamine to distribute and a firearm.
Hon Chau, 44, no known address, was sentenced by U.S. District Judge M. Douglas Harpool on Monday, Feb. 13, to 14 years and two months in federal prison without parole.
On Aug. 16, 2022, Chau pleaded guilty to one count of possessing methamphetamine with the intent to distribute and one count of possessing a firearm in furtherance of a drug-trafficking crime.
Chau was arrested on Feb. 27, 2020, when he drove a Chrysler 200 and parked in the driveway of a Springfield residence while law enforcement offices were executing a search warrant. Officers ordered Chau to get out of his vehicle, but he refused. Instead, Chau backed his vehicle into the officers’ vehicles parked behind him. Officers broke out the driver’s side window and attempted to remove Chau from his vehicle, but Chau continued to resist and reach towards his right hip. Officers used a Taser and were able to get him out of the vehicle. Chau had a loaded IMEZ .380-caliber semi-automatic pistol in a holster on his right hip. This pistol had been reported as stolen.
Chau had a baggie that contained 287 grams of pure methamphetamine inside his sweater pocket. Officers found $6,943 in cash inside Chau’s vehicle.
Chau, who had a dozen prior state felony convictions prior to this federal case, had been released from the Missouri Department of Corrections less than a year earlier.
This case was prosecuted by Assistant U.S. Attorney Jessica R. Eatmon. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Springfield, Mo., Police Department.
U.S. Justice Department Announces over $200 Million in Investments in State Crisis InterventionRead the Press Release
Louisville, KY – The Justice Department announced today 49 awards to states, territories, and the District of Columbia as part of the Byrne State Crisis Intervention Program. This investment of over $231 million will fund state crisis intervention court proceedings, including but not limited to, extreme risk protection order (ERPO) programs that work to keep guns out of the hands of those who pose a threat to themselves or others. This investment in community safety is authorized by the Bipartisan Safer Communities Act of 2022, historic legislation to address and reduce gun violence.
“The Justice Department is working relentlessly to protect communities from violent crime and the gun violence that often drives it, and the Byrne State Crisis Intervention Program is an important part of that effort,” said Attorney General Merrick B. Garland. “These awards will support the kinds of crisis intervention programs that we know save lives and help protect children, families, and communities across the country from senseless acts of gun violence.”
“The Department of Justice’s strategy to reduce violent crime and gun violence includes prioritizing support for successful, evidence-based programs,” said Deputy Attorney General Lisa O. Monaco. “The grants announced today invest in and highlight proven state and local violence prevention and intervention programs, that will make our communities safer.”
These awards, administered by the Department’s Office of Justice Programs’ Bureau of Justice Assistance (BJA), provide funding to states for the creation and implementation of extreme risk protection order programs, state crisis intervention court proceedings, and related gun violence reduction initiatives. Extreme risk protection order programs empower family members, health care providers, school officials and law enforcement officers to petition a court to temporarily prevent a person from accessing firearms if they are found to be a danger to themselves or others. Funds can also support interventions like drug, mental health and veterans’ treatment courts, gun violence recovery courts, behavior health deflection and outpatient treatment centers.
“Protecting communities from gun crime is an urgent public safety challenge and a critical part of the Justice Department’s work to ensure that everyone in this country can live free from the fear of violence,” said Associate Attorney General Vanita Gupta. “The resources we are announcing today will give communities the tools they need to prevent firearm violence and deliver support to those who are at risk of committing or being victimized by gun crime.”
The Bipartisan Safer Communities Act also seeks to ensure that extreme risk protection order laws and programs are implemented in accordance with the Constitution and provide for adequate due process protections. Projects funded under this program will need to demonstrate that they have taken measures to safeguard the constitutional rights of an individual subject to a crisis intervention program or ERPO initiative. The Justice Department has long supported state efforts to increase the use of ERPOs and in 2021 the Department released model legislation to help states create their own extreme risk protection order systems and provide for intervention before warning signs turn into tragedy.
Signed into law by President Biden in June 2022, the Bipartisan Safer Communities Act is the most significant piece of federal gun safety legislation in almost three decades and comes as a response to recent mass shootings and to the far more common, but no less tragic, incidents of community gun violence. Including the Byrne State Crisis Intervention Program, the law allocates a total of $1.4 billion to OJP over five years to develop, implement, and sustain meaningful investments in safer communities.
“These awards will help meet two monumental public safety challenges — the alarming proliferation of gun violence in our country and the clear need for front-end interventions to slow the cycle of violence and victimization in our most underserved communities,” said BJA Director Karhlton F. Moore. “The Bureau of Justice Assistance is proud to make these resources available to states as a critical part of its mission to reduce and prevent crime and to promote a fair and effective criminal justice system.”
For a full list of awards, please visit: https://data.ojp.usdoj.gov/stories/s/O-BJA-2023-171458/b5xz-as5z/. These awards are the latest effort from the Department of Justice’s Office of Justice Programs to implement this historic legislation.
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U.S. Attorney Mark Totten Statement on MSU Campus Shootings MondayRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney for the Western District of Michigan Mark Totten issued the following statement concerning the shootings on the campus of Michigan State University Monday evening.
“Last night’s shootings on the campus of Michigan State University were senseless, tragic, and horrible. Thousands of students and their loved ones endured a terror that no one should ever, ever experience. As a former MSU law professor and fellow Michigander, my heart goes out to the Spartan community and especially to the families of the students killed or injured. I’m grateful for the hundreds of first responders who turned out last night and bravely did their work. And my office and I stand ready to assist in any way we can.”
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Two Zuni men charged with assault in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Christopher Hannaweeke Sr. and Christopher Hannaweeke Jr. made an initial appearance in federal court facing a charge of assault resulting in serious bodily injury in Indian Country. Hannaweeke Sr., 48, and Hannaweeke Jr., 29, of Zuni, New Mexico, and an enrolled member of the Pueblo of Zuni, will remain detained pending a preliminary hearing scheduled for Feb. 16.
According to a criminal complaint, on Jan. 27, the victim’s mother witnessed a car hit the family’s dog. The victim exited his residence on foot and chased the vehicle suspected of hitting the dog. When the vehicle stopped, the victim recognized the occupants as the defendants. The defendants and a third individual exited the vehicle and Hannaweeke Sr. struck the victim over the head with an unknown object. Once the victim was on the ground, the defendants assaulted the victim by punching and kicking the victim. Multiple witnesses observed the assault as it occurred and intervened. A witness identified one of the assailants as Hannaweeke Jr. The victim suffered serious bodily injury as a result and required surgery.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Hannaweeke Sr. and Hannaweeke Jr. face up to ten years in prison.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Zuni Police Department. Assistant United States Attorney Caitlin L. Dillon is prosecuting the case.
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Two Las Cruces men face federal firearms charges relating to the killing of womanRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that Margarito Serena and David Aguilar made an initial appearance in court where they were charged by criminal complaints with federal firearms violations. Aguilar, 26, of Las Cruces, is charged with being a felon in possession of a firearm and ammunition. Serena, 29, of Las Cruces, is charged with being a felon in possession of a firearm and ammunition. Both men will remain in custody pending a preliminary and detention hearing scheduled for this week.
According to the complaints, on Jan. 30, Las Cruces Police Officers responded to a report of a gunshot victim at an apartment in Las Cruces, New Mexico. Upon arrival, officers located a deceased victim. The victim’s neighbor told officers that they went to the victim’s apartment after hearing sounds of an argument followed by a loud bang because they knew the victim has previous arguments and altercations with Aguilar. The neighbor stated that Aguilar opened the door holding a black 12-guage shotgun and asked the neighbor to call the police because the victim had shot herself. The neighbor saw Serena sitting on a couch in the apartment’s living room. The neighbor returned to their apartment to dial 911 and later witnessed Aguilar and Serena fleeing the scene.
Following the interview, Las Cruces Police Officers apprehended Aguilar and Serena. When questioned, both Serena and Aguilar admitted to handling the shotgun.
In 2016, Aguilar was convicted of Armed Robbery and Attempted Armed Robbery. In 2013, Serena was convicted of Possession of an Unregistered Firearm. As previously convicted felons, neither Aguilar nor Serena can legally possess firearms or ammunition.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Aguilar and Serena face up to 15 years in prison.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case with assistance from the Las Cruces Police Department. Assistant United States Attorney Maria Y. Armijo is prosecuting the case.
Anyone experiencing domestic violence or who knows someone experiencing domestic violence can reach an advocate at the National Domestic Violence Hotline at 1-800-799-SAFE (7233) or 1-800-787-3224 (TTY). In New Mexico, the Domestic Violence Resource Center is available by telephone at (505) 843-9123 or online at https://dvrcnm.org/.
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Two Columbia Residents Plead Guilty to $1.2 Million Insurance Fraud ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Two Columbia, Mo., residents pleaded guilty in federal court today to their roles in a $1.2 million insurance fraud conspiracy that involved false claims of injuries suffered in car accidents.
Latoya Marie Brown, 37, who also lived in the Kansas City, Mo., area, and Cedrick Shawndale Goldman, 46, each pleaded guilty in separate appearances before U.S. Magistrate Judge Willie J. Epp, Jr., to one count of conspiracy to commit wire fraud and one count of conspiracy to commit mail fraud.
By pleading guilty today, Brown and Goldman admitted they were part of a conspiracy that defrauded six insurance companies of a total of $1,234,581 from June 2017 to July 2020. Conspirators submitted false claims that they had suffered bodily injuries and that they would be personally liable for any medical bills related to insurance claims. Conspirators, some of whom were involved in multiple incidents, received thousands of dollars, and in some cases tens of thousands of dollars, based on these false claims. However, none of the conspirators made any payments to medical providers and instead used the funds for their personal expenses.
Brown admitted she was involved in three incidents and received a total of $44,269 in insurance payments. Goldman admitted he was involved in one incident and received a $14,900 insurance payment. Neither Brown nor Goldman have paid any of their hospital or medical bills with the insurance proceeds they received.
Under federal statutes, Brown and Goldman each are subject to a sentence of up to 40 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Aaron M. Maness. It was investigated by the FBI and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Texas Man Sentenced to 42 Months in Prison for Role in Scheme to Fraudulently Obtain over $30 Million in COVID-19 Relief LoansRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that AMOS MUNDENDI, a/k/a “Mos,” a/k/a “El Ashile Mundi,” was sentenced today in Manhattan federal court by United States District Judge Paul A. Engelmayer to 42 months in prison for his participation in a scheme to fraudulently obtain over $30 million in Government-guaranteed loans designed to provide relief to small businesses during the COVID-19 pandemic. MUNDENDI is the last of five defendants to be sentenced in the case. MACKENZY TOUSSAINT, APOCALYPSE BELLA, a/k/a “Dias Yumba,” BRANDON JACKSON, and ALVIN MAXWELL were previously sentenced by Judge Engelmayer.
U.S. Attorney Damian Williams said: “Amid the outbreak of the COVID-19 pandemic that wreaked havoc on economies worldwide, Amos Mundendi and his co-defendants illegally plundered funds meant to financially support struggling businesses. All defendants in this case will now serve substantial prison time for stealing much-needed relief intended for legitimately deserving companies.”
According to allegations in the Complaints, the Indictments, the Superseding Information, and statements made during court proceedings:
TOUSSAINT, BELLA, MAXWELL, and MUNDENDI were involved in an extensive scheme to prepare and submit fraudulent applications to the Small Business Administration (“SBA”) and to at least one company which processed loan applications under the SBA’s Paycheck Protection Program (“PPP”). Over the course of the scheme, TOUSSAINT, BELLA, MAXWELL, and MUNDENDI attempted to fraudulently obtain over $30 million in Government-guaranteed loans for various companies through the PPP, designed to provide financial relief to qualifying companies during the COVID-19 pandemic. The scheme resulted in over $15 million in actual loss.
The defendants’ scheme included the submission of fraudulent applications for PPP loans for several companies, including two companies (“Company‑1” and “Company-2”) both located in the Southern District of New York. The loan proceeds for Companies-1 and -2 totaled approximately $4 million, and the fraudulent funds were distributed to a series of bank accounts located in the United States and elsewhere, including bank accounts controlled by TOUSSAINT and BELLA.
The PPP loan applications for Company-1 and Company-2 were false, containing lies designed to maximize proceeds to the fraud scheme. Specifically, applications for both Company-1 and Company-2 contained material differences from loan applications submitted for both companies under the Economic Injury Disaster Loan (“EIDL”) program just months earlier. For instance, the PPP loan application for Company-1 — which was submitted on June 30, 2020 — represented that Company-1 had over 100 employees. However, an earlier EIDL loan application for Company-1 dated on or about March 30, 2020, represented that Company-1 had only four employees.
TOUSSAINT, BELLA, and MUNDENDI devised and executed the fraud scheme by conspiring with individuals who owned, operated, or otherwise were affiliated with businesses such as Company-1 and Company-2. MAXWELL was one such individual — a business-owner who participated in the scheme to fraudulently obtain over $1.6 million for his own business.
In addition, TOUSSAINT and JACKSON engaged in a separate scheme to submit fraudulent EIDL applications, often through the use of synthetic identities (i.e., a fake name used in combination with true personal identifying information of another person). TOUSSAINT and JACKSON used Social Security Numbers belonging to minors as part of the synthetic identities created for use in the fraud scheme. At least approximately $1.7 million in EIDL loan funds were disbursed as a result of TOUSSAINT’s and JACKON’s EIDL loan fraud scheme.
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In addition to the prison sentence, MUNDENDI, 33, of Irving, Texas, was ordered to pay $9,315,418.00 in restitution.
On October 27, 2022, BELLA, 48, of Clackamas, Oregon, was sentenced to 40 months in prison and ordered to pay $4,088,084.42 in restitution.
On November 10, 2022, TOUSSAINT, 40, of Irving, Texas, was sentenced to 90 months in prison and ordered to pay $12,402,676.92 in restitution.
On December 6, 2022, MAXWELL, 46, of Lancaster, Texas, was sentenced to 18 months in prison and ordered to pay $1,696,534.63 in restitution.
On February 3, 2023, JACKSON, 35, of Farmer’s Branch, Texas, was sentenced to 33 months in prison and ordered to pay $1,772,453.00 in restitution.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation, the Small Business Administration’s Office of the Inspector General, and the Internal Revenue Service, Criminal Investigation.
The case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Dina McLeod is in charge of the prosecution.
Steinhatchee Church Deacon Sentenced to 22 Years in Federal Prison for Production of Child PornographyRead the Press Release
TALLAHASSEE, FLORIDA –Jonathan High, 31, of Steinhatchee, Florida, was sentenced to twenty-two years in federal prison after having been found guilty at a bench trial on October 4, 2022, of two counts of use of a child to produce child pornography. Prior to the trial, High pleaded guilty to one count of possession of child pornography. The sentence was announced by Jason R. Coody, Unites States Attorney for the Northern District of Florida.
“Child predators seek to prey upon our children in any setting imaginable – in this instance from inside a house of worship,” said U.S. Attorney Coody. “As such, we must remain vigilant. This sentence is yet another example of the unwavering commitment to the protection of our most vulnerable and should serve as a significant deterrent to those who would attempt to harm them. We will continue to work tirelessly with our law enforcement partners to investigate and prosecute those who engage in such heinous conduct.”
In August 2021, law enforcement officers received a Cybertip from the National Center for Missing and Exploited Children (NCMEC) that a user of a cloud storage account uploaded files constituting child pornography. An investigation revealed the account was High’s. Law enforcement officers obtained a search warrant for High’s cell phones and desktop computer, and after an examination of their contents, confirmed that High was in possession of multiple child pornography images and videos that depicted prepubescent boys engaged in sex acts or exposing their genitals in a lascivious manner. Further investigation revealed that some of these images and videos were produced by High personally; High produced separate video recordings of two young boys using the restroom in a Perry, Florida church where High served as a deacon.
“This sentence is yet another example of the unwavering dedication and commitment of HSI special agents, who work tirelessly to protect our most vulnerable,” said HSI Jacksonville Assistant Special Agent in Charge K. Jim Phillips. “Our clear-cut message is, HSI will work tirelessly with our law enforcement partners and the United States Attorney’s Office to bring to justice those who prey upon our children.”
High’s imprisonment prison sentenced will be followed by lifetime supervised release and he will be required to register as a sex offender and will be subject to all sex offender conditions. The Court ordered restitution to provide for counseling to victims in the case and forfeiture of electronic devices used in the commission of the offenses, including two cellular phones and one computer.
Florida Department of Law Enforcement Special Agent in Charge Mark Perez said, “Our law enforcement partnerships are critical in helping to identify and stop the abuse and exploitation of our most vulnerable population. These crimes will not be tolerated, and it’s my hope that the guilty verdict will help the victims begin the healing process.”
This conviction was the result of a joint investigation conducted by Homeland Security Investigations, the Florida Department of Law Enforcement, and the North Florida Internet Crimes Against Children (ICAC) Task Force. Assistant United States Attorneys Justin M. Keen and Kaitlin Weiss prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.