Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
14 February 2023
Springdale Man Sentenced to over 10 Years in Federal Prison for Drug TraffickingRead the Press Release
FAYETTEVILLE – A Springdale man was sentenced today to 125 months in prison followed by three years of supervised release on one count of Possession with Intent to Distribute Methamphetamine. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court documents, on August 20, 2021, Springdale Police Officers were dispatched to a hit and run accident. After receiving the vehicle description, officers were able to locate the vehicle parked in a nearby parking lot. Officers approached the driver’s door and immediately recognized the driver and sole occupant as, Prince Wayne Fondren, Jr., age, 43. Upon making contact, the officers observed that Fondren was passed out with the vehicle in drive mode. Fondren was then ran through dispatch where it was determined that he did not have a driver’s license and he was a parolee with an active search waiver. A search of the vehicle resulted in officers locating, a black zippered pouch in the front passenger floorboard that contained multiple baggies of suspected methamphetamine weighing approximately 100.58 grams, pills, a small amount of a marijuana, and drug paraphernalia.
The substance was later submitted to the Homeland Security investigations Crime Laboratory for testing where it was tested and determined to be methamphetamine.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Springdale Police Department, the 4th Judicial District Drug Task Force (DTF), and the Fayetteville Police Department investigated the case.
Assistant U.S. Attorney Sydney Butler prosecuted the case.
Sparks Man Sentenced to Prison for Distribution of FentanylRead the Press Release
RENO, Nev. – A Sparks resident was sentenced yesterday by Chief U.S. District Judge Miranda M. Du to five years in prison followed by four years of supervised release for distributing fentanyl pills out of his barbershop.
Jaime Collazo Munoz, aka “Chivo,” (36) was convicted by a jury in September 2022 of two counts of distribution of a controlled substance - fentanyl.
According to evidence presented at the five-day trial and court documents, from July to November 2020, Munoz distributed at least 80 grams of fentanyl in exchange for over $10,000. Munoz distributed the M30 fentanyl pills out of his barbershop “Stay Faded,” located in Sparks, Nevada. During the execution of a search warrant at Munoz’s residence, law enforcement located an electronic scale, cocaine and MDMA, an AR-15 rifle, and loaded firearms.
United States Attorney Jason M. Frierson for the District of Nevada and Assistant Special Agent in Charge Kevin Adams for the Drug Enforcement Administration (DEA) Las Vegas District Office made the announcement.
The case was investigated by the DEA, Washoe County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), United States Marshals Service (USMS), Lyon County Sheriff’s Office, and Regional Narcotics Unit. Assistant U.S. Attorneys Andolyn Johnson and Andrew Keenan prosecuted the case.
Fentanyl – a Schedule II controlled substance – is a synthetic opioid that is 50 times more potent than heroin. Just two milligrams of fentanyl, or the amount that could fit on the tip of a pencil, is considered a potentially lethal dose. According to the Centers for Disease Control and Prevention, in 2021, a record number of Americans – 107,622 – died from a drug poisoning or overdose. Sixty-six percent of those deaths can be attributed to synthetic opioids such as fentanyl.
If you have information of a potential violation of controlled substances laws and regulations, including the growing, manufacture, distribution or trafficking of controlled substances, please contact the DEA at https://www.dea.gov/submit-tip.
This case was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
###
South Carolina Man Sentenced for Role in International Elder Fraud SchemeRead the Press Release
RICHMOND, Va. – A Duncan, South Carolina man was sentenced today to 51 months in prison for conspiracy to commit mail and wire fraud.
According to court documents, from around February 2020 through June 2020, Jeel Patel, 22, was part of an international fraud scheme originating from call centers in India that disproportionately targeted elders. These call centers would initially contact victims using automated robocalls designed to create a sense of urgency with the recipients. After making initial contact with victims, conspirators known as closers would impersonate government officials such as FBI or DEA agents. These closers would trick and coerce victims into wiring funds to bank accounts controlled by the conspiracy, or shipping parcels of cash to addresses to which conspirators had access. Couriers working for the conspiracy would retrieve the victims’ stolen money, save a portion for themselves, and forward the remainder to the call center operators in India.
Jeel Patel was one such courier, working for a defendant previously prosecuted by the Eastern District of Virginia (Case No. 3:21-cr-47) named Bhavinkumar “Sunny” Patel. Sunny Patel, 28, of Richmond, operated a cell of couriers in several states that was responsible for losses exceeding $3 million to more than 120 victims. On April 8, 2022, “Sunny” Patel was sentenced to 10 years in prison.
During the brief, four-month period that Jeel Patel worked for Sunny Patel, the defendant retrieved or attempted to retrieve 14 packages from 10 different victims, with total actual losses of $485,020. Jeel Patel also participated in repeated home pickups during which he traveled to the residences of two different 80-year-old victims located in Michigan and South Carolina, and under the guise of being a DEA official took the money directly from the victims.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Wayne A. Jacobs, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division, made the announcement after sentencing by U.S. Senior District Judge Henry E. Hudson.
The Union County Sheriff's Office in South Carolina provided significant assistance on this case.
Assistant U.S. Attorneys Brian Hood and Kaitlin Cooke prosecuted the case.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. It is a term used to describe five subtypes of elder abuse: physical abuse, financial fraud, scams and exploitation, caregiver neglect and abandonment, psychological abuse, and sexual abuse. Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting at least 10 percent of older Americans every year. Together with our federal, state, local, and tribal partners, the Department of Justice is steadfastly committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, research, victim services, and public awareness. This holistic and robust response demonstrates the Department’s unwavering dedication to fighting for justice for older Americans.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:22-cr-92.
San Fernando Valley Pharmacist Sentenced to 2 Years in Prison for Knowingly Filling False Prescriptions for Opioids and Other NarcoticsRead the Press Release
LOS ANGELES – A San Fernando Valley pharmacist who used forged prescriptions to illegally sell narcotics, including opioids, to phony “patients” has been sentenced to 24 months in federal prison, the Justice Department announced today.
Gevork Danielian, 41, of Granada Hills, was sentenced on Monday by United States District Judge Mark C. Scarsi, who also ordered him to pay a $100,000 fine.
Danielian pleaded guilty in November 2022 to one count of conspiracy to distributed controlled substances.
From December 2014 to July 2020, Danielian owned and operated the Winnetka-based A&G Vitalife Inc., which did business as A&G Care Pharmacy, where he worked as the pharmacist-in-charge. From April 2018 to December 2018, Danielian conspired with others to unlawfully sell narcotics, including hydrocodone, oxycodone, methamphetamine salts, and alprazolam, an anxiety medication sold under the brand name Xanax.
A co-conspirator would obtain blank prescription papers, Danielian would then provide – usually by text message – the names and dates of birth of individuals to be falsely identified as patients, which the co-conspirator would then use to fill in the falsified prescriptions. The co-conspirator would bring the falsified prescriptions to Danielian, bearing the forged signatures of real physicians. Danielian would “fill” the prescriptions in exchange for money despite knowing the narcotics were not going to be used for a legitimate medical purpose, but rather were going to be illicitly sold by his co-conspirator.
Danielian filled prescriptions for hundreds of pills of opioids and other narcotics during the conspiracy.
For example, on October 29, 2018, Danielian filled prescriptions for approximately 120 pills of 30-milligram strength oxycodone each for two fictitious patients, using a forged prescription falsely purporting to have been written by a physician.
In November 2020, the California State Board of Pharmacy placed Danielian on probation for four years and discontinued his business after he was accused of record-keeping deficiencies and dispensing narcotics authorized by fraudulent prescriptions.
“Pharmacists, by training and education, should be gatekeepers to help prevent abuse, addiction, and overdose,” prosecutors argued in a sentencing memorandum. “[Danielian] flouted this responsibility and instead became an agent of addiction and abuse.”
The Drug Enforcement Administration investigated this matter.
Assistant United States Attorney Maria Jhai of the Terrorism and Export Crimes Section prosecuted this case.
San Antonio Man Arrested in Connection with Six National Chain Store RobberiesRead the Press Release
SAN ANTONIO – A San Antonio man was arrested in San Antonio on Monday on federal criminal charges related to his alleged robbery of six national chain stores around San Antonio between Jan. 28 and 31, 2023.
Court documents allege that James Anthony Kirkwood, 68, is responsible for the robberies of two Dollar General stores; two Dollar Trees; a PetSmart; and a Big Lots, over a three-day period. He was arrested on February 6 and had remained in custody at the Bexar County Jail before the arrest on federal charges.
Kirkwood is charged with robbery interfering with interstate commerce. If convicted, he faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jaime Esparza of the Western District of Texas and Special Agent in Charge Fred J. Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives Houston Field Division made the announcement.
The ATF and San Antonio Police Department are investigating the case.
Assistant U.S. Attorney William Calve is prosecuting the case.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Russian Businessman Found Guilty in $90 Million Hack-to-Trade ConspiracyRead the Press Release
BOSTON – A Russian businessman was convicted today by a federal jury in Boston for his involvement in an elaborate scheme that netted $90 million through securities trades based on non-public information stolen from U.S. computer networks.
Vladislav Klyushin, a/k/a “Vladislav Kliushin,” 42, of Moscow, Russia, was convicted following a 10-day jury trial of conspiring to obtain unauthorized access to computers, and to commit wire fraud and to commit securities fraud, and with substantive counts of obtaining unauthorized access to computers, wire fraud and securities fraud. U.S. District Court Judge Patti B. Saris scheduled sentencing for May 4, 2023. Klyushin was arrested in Sion, Switzerland in March 2021 and extradited to the United States in December 2021 to face federal charges in Boston.
Klyushin was charged along with two Russian co-conspirators: Ivan Ermakov and Nikolai Rumiantcev. Two others, Mikhail Vladimirovich Irzak and Igor Sergeevich Sladkov, were charged in a separate indictment. All four co-conspirators remain at large. In October 2018, Ermakov was also charged in federal court in Pittsburgh in connection with his alleged role in hacking and related disinformation operations targeting international anti-doping agencies, sporting federations, and anti-doping officials.
“The jury saw Mr. Klyushin for exactly what he is – a cybercriminal and a cheat. He repeatedly gamed the system and finally got caught. Now he is a convicted felon. For nearly three years, he and his co-conspirators repeatedly hacked into U.S. computer networks to obtain tomorrow’s headlines today. They used that nonpublic information to trade illegally in the shares of hundreds of publicly traded companies. He had the answer key and reaped enormous financial gains with stolen inside information. Mr. Klyushin compromised the integrity of our securities markets and cheated individual investors and pension funds,” said United States Attorney Rachael S. Rollins. “This case demonstrates the Department of Justice’s commitment to protecting our financial markets and computer networks by aggressively pursuing those who seek to profit unfairly through intrusive cyber-attacks. My office and our law enforcement partners will continue our work to identify, prosecute and hold accountable criminals like Klyushin regardless of where they reside or the manner in which they try to conceal their illegal activities. Cybercriminals be warned: we will use every tool at our disposal to track you down and you will end up as a defendant in a courtroom.”
“Today’s verdict proves Vladislav Klyushin used various illegal and malicious means to hack into computer systems with the goal of obtaining insider information to gain tens of millions of dollars in illegal profits,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “The FBI will not stand idly by and allow criminals like him to meddle in our financial systems or marketplace at the expense of American investors. We will aggressively investigate anyone who attacks the integrity of our country’s computer networks and capital markets and bring their criminal conduct to a halt.”
Klyushin, Ermakov and Rumiantcev worked at M-13, a Moscow-based information technology company that Klyushin owns. M-13 offered penetration testing and “Advanced Persistent Threat (APT) emulation,” – both services that seek exploitable vulnerabilities in a computer system via hacking techniques, purportedly for defensive purposes. M-13’s website indicated that the company’s “IT solutions” were used by “the Administration of the President of the Russian Federation, the Government of the Russian Federation, federal ministries and departments, regional state executive bodies, commercial companies and public organizations.” In addition to these services, Klyushin invested the money of several investors in his hack-to-trade scheme, and took a 60 percent cut of their profits.
Trial evidence showed that, between at least in or about January 2018 and September 2020, Klyushin, Ermakov, Irzak, Sladkov and Rumiantcev conspired to use stolen earnings information to trade in the securities of companies that are publicly traded on U.S. national securities exchanges, including the NASDAQ and the NYSE, in advance of public earnings announcements. Using the same malicious hacking techniques M-13 advertised to customers, Klyushin and his co-conspirators obtained inside information by hacking into the computer networks of two U.S.-based filing agents that publicly-traded companies used to make quarterly and annual filings through the U.S. Securities and Exchange Commission (SEC). Specifically, Klyushin and his co-conspirators deployed malicious infrastructure capable of harvesting and stealing employees’ login information and used proxy (or intermediary) computer networks outside of Russia to conceal the origins of their activities. With this access, Klyushin and his co-conspirators viewed and downloaded material non-public information, such as quarterly and annual earnings reports that had not yet been filed with the SEC or disclosed to the general public, for hundreds of companies – including Capstead Mortgage Corp., Tesla, Inc., SS&C Technologies, Roku and Snap, Inc. Many of the illegally obtained earnings reports were downloaded through a computer server located in downtown Boston.
Armed with this information before it was disclosed to the public, Klyushin and his co-conspirators knew ahead of time, among other things, whether a company’s financial performance would meet, exceed or fall short of market expectations – and thus whether its share price would likely rise or fall following the public earnings announcement. Klyushin then traded based on that stolen information in brokerage accounts held in his own name and in the names of others. Klyushin and his co-conspirators also distributed their trading across accounts they opened at banks and brokerages in several countries, including Cyprus, Denmark, Portugal, Russia and the United States, and misled brokerage firms about the nature of their trading activities.
Evidence presented at trial demonstrated that the times in which the filing agents were hacked corresponded with the times in which Klyushin and his co-conspirators made profitable trades. Additionally, of the more than 2,000 earnings events around which Klyushin and his co-conspirators traded between January 2018 and September 2020, more than 97 percent were filed with the SEC by the victim filing agents. Testimony at trial indicated that the odds of this trading pattern occurring in the absence of a relationship between the trading and the identity of the filing agent was less than one in a trillion.
In total, Klyushin and his co-conspirators earned close to $100 million in earnings trading from roughly $9 million in investments using inside information, even as they lost close to $10 million in non-earnings trading – representing a return of more than 900 percent during a period in which the broader stock market returned just over 25 percent. Of that amount, Klyushin individually netted more than $38 million, including nearly $23 million on his personal trading and trading for his company, in addition to more than $13 million on the money he invested for others.
The charge of conspiracy to obtain unauthorized access to computers, and to commit wire fraud and to commit securities fraud provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 fine, or twice or the gross gain or loss. The charge of unauthorized access to computers provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss. The charges of securities fraud and wire fraud each provide 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. Each of the charges also provide for restitution and forfeiture upon conviction. 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.
U.S. Attorney Rollins and FBI SAC Bonavolonta made the announcement today. The SEC, the Justice Department’s Office of International Affairs, the Swiss Federal Office of Justice, the Valais and Zurich Cantonal Police authorities, the Federal Bureau of Investigation’s Washington Field Office and the victim filing agents provided valuable assistance to the investigation. Stephen E. Frank and Seth B. Kosto, Chief and Deputy Chief respectively, of Rollins’ Securities, Financial & Cyber Fraud Unit are prosecuting the case.
Repeat Sacramento Sex Offender Pleads Guilty to Possessing Child PornographyRead the Press Release
SACRAMENTO, Calif. — Jason Michael Carlsen, 49, of Sacramento, pleaded guilty today to possession of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in July 2022, Carlsen possessed child pornography. At the time he possessed these images, Carlsen was on federal supervised release for a prior federal conviction for possession of child pornography.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Nicholas M. Fogg is prosecuting the case.
Carlsen is scheduled to be sentenced by U.S. District Judge John A. Mendez on May 23, 2023. Carlsen faces a mandatory minimum penalty of 10 years in prison up to a maximum of 20 years in prison and a fine of up to $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Providence Man Admits to Assaulting U.S. Postal CarrierRead the Press Release
PROVIDENCE – A 19-year-old Providence man admitted to a federal judge today that he was one of two men who assaulted a U.S. Postal Service letter carrier in November 2021, while the carrier was delivering mail in South Providence, announced United States Attorney Zachary A. Cunha.
According to information presented to the court, in November 2021, Ismael Colon Pena was one of two men seated inside a BMW sedan that had stopped on a narrow South Providence street that was only wide enough to allow one vehicle to pass at a time. As the postal driver maneuvered his truck past the stopped BMW, the postman smiled at the car’s driver in acknowledgement of the brief awkwardness. This was not the end of the interaction, however, as a short time later, when the letter carrier returned to his truck after delivering a package, he was allegedly met by the driver of the BMW, Branly Ferreras-Severino, 22, of Providence. As alleged in court documents, Ferreras-Severino allegedly said, “You think it’s funny? You almost hit me. You wanna get popped?” before striking the letter carrier with his fists. Colon admitted to the court that he also assaulted the postal employee with his fist.
Colon pleaded guilty today to a charge of assault of a federal employee. He is scheduled to be sentenced on May 18, 2023. Ferreras-Severino, charged similarly, is awaiting trial.
The matter was investigated by the United States Postal Inspection Service. United States Attorney Cunha thanks the Rhode Island High Intensity Drug Trafficking Area Task Force for their assistance in the investigation of this matter.
The case is being prosecuted by Assistant U.S. Attorney Zechariah Chafee.
###
Okemah Resident Sentenced for Assault, Firearm, and Drug Related Offenses in Indian Country and Escape from Federal CustodyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced today that Dustin Kyle Marris, age 34, of Okemah, Oklahoma, was sentenced to 282 months’ imprisonment after being found guilty by a federal jury on November 3, 2021, of Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country; Use, Carry, Brandish and Discharge of a Firearm During and in Relation to a Crime of Violence; Possession with Intent to Distribute Methamphetamine; and Felon in Possession of a Firearm. Marris was sentenced to an additional 12 months’ imprisonment for Escape from Custody.
The trial evidence showed that on or about November 9, 2020, a deputy with the Okmulgee County Sheriff’s Office attempted to conduct a traffic stop on the defendant for speeding. The defendant failed to comply and accelerated to speeds over 100 miles per hour. Shortly after the pursuit began, the defendant leaned out the driver’s side door, pointed a handgun at the deputy and fired 3-4 shots. The defendant, a convicted felon, was prohibited from possessing a firearm. Within a few minutes, the defendant crashed his car into a ditch and fled on foot. Law enforcement pursued the defendant but was unable to locate him. The following day, officers located and arrested the defendant. During a search of the defendant, officers found four baggies of methamphetamine weighing 49.38 grams.
On November 13, 2021, only ten days after being convicted of the November 2020 offenses, the defendant and another inmate escaped from federal custody at the Okmulgee County Detention Center in Okmulgee. They were apprehended the following day.
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted the November 2020 offenses because the defendant in this case is a member of a federally-recognized Indian tribe and the crimes occurred in Okmulgee County, within the boundaries of the Muscogee (Creek) Nation Reservation, and within the Eastern District of Oklahoma.
The case was the result of an investigation by the Okmulgee County Sheriff’s Office and the Federal Bureau of Investigation.
“The lengthy sentence imposed by the Court is fitting punishment,” said United States Attorney Christopher J. Wilson. “Methamphetamine and firearms are a dangerous combination. Thankfully, the Okmulgee County Deputy was not injured or killed during the attempted stop and pursuit. Marris has been a violent criminal the majority of his adult life and obviously has no respect for the law or law enforcement. Protecting the public and our law enforcement partners from dangerous offenders will continue to be a priority for the United States Attorney’s Office.”
“The FBI focuses its investigative resources on offenders who pose the greatest safety risk to the public, especially those like Marris who show a blatant disregard for the law and for human life,” said FBI Oklahoma City Special Agent in Charge Edward J. Gray. “Thanks to our combined efforts with the Okmulgee County Sheriff’s Office and the U.S. Attorney’s Office, another violent criminal has been removed from our community.”
The Honorable Ronald A. White, U.S. District Judge of the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the sentencing hearing. Marris was remanded to the custody of the United States Marshal to await commitment to a United States Bureau of Prisons facility to serve his non-paroleable sentence of incarceration.
Special Assistant United States Attorney Nathaniel Walters, Assistant United States Attorney Kevin Gross, and Department of Justice Criminal Division Organized Crime and Gang Section Trial Attorney Brian Lynch represented the United States.
Ohkay Owingeh man arraigned for assault with a dangerous weapon in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that Jerry Segura, Jr., 34, an enrolled member of the Pueblo of Ohkay Owingeh, was arraigned in federal court on Feb. 13 on a two-count indictment charging him with assault with a dangerous weapon and using and carrying a firearm during and in relation to a crime of violence. Segura will remain in custody pending trial, which is set for April 17, 2023.
A grand jury indicted Segura on Jan. 25. According to the indictment and other court records, on March 13, 2022, Segura and his father drunkenly drove to Segura’s then-girlfriend’s house. When they arrived at their destination, Segura fired at least 11 gunshots at or near her home from his car. Segura’s girlfriend, her daughter, and the daughter’s three-year-old son were in the home at the time. Segura fired directly at his girlfriend’s daughter when she spotted him through the living-room window. No one was hit by gunfire or otherwise injured.
The alleged assault occurred on the Pueblo of Ohkay Owingeh.
Segura was arrested on Feb. 8 and made an initial appearance in court on Feb. 9.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Segura faces up to 10 years in prison for assault with a dangerous weapon and a minimum of 10 years in prison for discharging a firearm during and in relation to a crime of violence.
The Bureau of Indian Affairs investigated this case with assistance from the Ohkay Owingeh Police Department and Espanola Police Department. Assistant United States Attorney Zachary C. Jones is prosecuting the case.
# # #
23-26
Ocala Convicted Felon Sentenced to More Than 17 Years in Federal Prison for Possessing Firearms and DrugsRead the Press Release
Ocala, FL – Senior United States District Judge Gregory A. Presnell has sentenced Aaron Haa (42, Ocala) to 17 years and 7 months in federal prison for possessing a firearm as a convicted felon, possessing with the intent to distribute methamphetamine, and possessing a firearm in furtherance of a drug trafficking crime. Haa had pleaded guilty on July 13, 2022.
According to information presented in court, on December 9, 2020, Haa was arrested by state authorities after being found with a firearm during a traffic stop. After being released from state custody, Haa was arrested again on January 22, 2021. During that second incident, Haa led police on a high-speed chase on U.S. 441 in Marion County. A deputy had to force Haa’s vehicle to stop when Haa started fleeing into the opposite lanes of traffic. After Haa flipped his vehicle, deputies took him into custody. Deputies found another firearm and 70 grams of methamphetamine in Haa’s vehicle.
Haa has at least 21 prior state felony convictions, including trafficking in a controlled substance, fleeing and eluding, and sale of a controlled substance. Therefore, he is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Sumter County Sheriff’s Office, the Marion County Sheriff’s Office, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Tyrie K. Boyer.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
New Orleans Man Sentenced on Drug and Weapons ChargesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that defendant, KEENAN CONLEY, age 25, a resident of Orleans Parish, was sentenced on February 9, 2023 by U.S. District Court Judge Eldon E. Fallon to 92 months imprisonment, 3 years supervised release, and a mandatory $400 special assessment fee on four counts of a five-count indictment. Additionally, Judge Fallon ran the federal sentence consecutive to the defendant’s state sentence in another matter.
In Count 1 of the indictment, CONLEY is charged with possession with the intent to distribute marijuana in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(D). In Counts 3 and 5, CONLEY is charged with being a felon in possession of a firearm in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). Finally, in Count 4, CONLEY is charged with possession with the intent to distribute heroin, cocaine, and marijuana in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(C), and (b)(1)(D).
On January 25, 2021, CONLEY was involved in a shooting in Harvey, LA. Pursuant to the shooting investigation, detectives conducted a search of his vehicle and found narcotics and a firearm. An arrest warrant was issued by Jefferson Parish Sheriff’s Office (JPSO), and CONLEY was subsequently arrested on May 17, 2021. During his arrest on May 17, 2021, JPSO located a firearm in his engine compartment near the battery as well as narcotics in his possession.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U. S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jefferson Parish Sherriff’s Office. The case was prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime Unit of the U.S. Attorney’s Office.
New Laguna woman pleads guilty to assault upon a federal officer in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that on Feb. 10, Lynnette Chavez pleaded guilty to assault upon a federal officer. Chavez, 36, of New Laguna, New Mexico, will remain in custody pending sentencing, which has not been scheduled.
In the plea agreement, Chavez admitted to assaulting a Laguna Police Officer by kicking them multiple times. The assault occurred on the Pueblo of Laguna.
At sentencing, Chavez faces up to two years in prison followed by up to three years of supervised release.
The Bureau of Indian Affairs investigated this case with the assistance of the Laguna Police Department. Assistant United States Attorney Alexander F. Flores is prosecuting the case.
# # #
23-28
Mountain View Man Sentenced to 21 Years for Murder in National ParkRead the Press Release
SPRINGFIELD, Mo. – A Mountain View, Mo., man was sentenced in federal court today for murdering his estranged wife during an argument when they met in a national park.
Dylan J. Hanger, 31, was sentenced by U.S. District Judge M. Douglas Harpool to 21 years and 10 months in federal prison without parole.
On May 10, 2022, Hanger pleaded guilty to one count of murder in the second degree. Hanger admitted that he met his estranged wife, Brittany Gorman, at the Buck Hollow Access Area, along the Jacks Fork River, within the Ozark National Scenic Riverways in Texas County, Mo., on May 20, 2020. An argument ensued, during which Hanger stabbed Gorman several times in the chest, which caused her death.
According to court documents, Hanger began planning to kill his wife (with whom he shared three children ages 5, 7, and 10) in the months leading up to May 2020. When they met at the Buck Hollow Access Area, Hanger stabbed his wife at least four times. He took her body and dumped it in a remote location.
For nine days, Hanger maintained to both Gorman’s family and law enforcement that Gorman was missing and suggested that it was due to her drug connections. He finally admitted what he had done and revealed the location of Gorman’s body on May 30, 2020.
This case was prosecuted by Assistant U.S. Attorney Josephine L. Stockard. It was investigated by the Texas County, Mo., Sheriff’s Department, the National Park Service Investigative Services Branch, and the Missouri State Highway Patrol.
Minnesota Department of Corrections Agrees to End Discrimination Against People with Disabilities in its GED Education ProgramRead the Press Release
The Justice Department announced today that it filed a complaint and proposed consent decree with the U.S. District Court for the District of Minnesota to resolve allegations that the Minnesota Department of Corrections (MNDOC) violates the Americans with Disabilities Act (ADA).
The department previously found that the MNDOC discriminated against incarcerated individuals with disabilities enrolled in its General Educational Development (GED) program by denying individuals with disabilities opportunities to apply for or receive needed modifications on the GED exam, courses or practice tests, such as extended time and frequent breaks. The proposed consent decree will provide damages to harmed individuals and requires the MNDOC to make changes to end this discrimination.
“Prisons and jails have an obligation to meet the needs of people with disabilities. This settlement agreement stands to impact hundreds of incarcerated people with disabilities, opening doors to higher education and other opportunities that have been unjustly closed to them for far too long,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “MNDOC is now firmly on a path to providing accommodations to students with disabilities on standardized exams and preparation courses, actions that will help promote rehabilitation and increase prospects for reentry.”
“We are pleased to reach a resolution with MNDOC that will help ensure incarcerated individuals with disabilities have equal opportunities to benefit from critical education programs in its facilities,” said U.S. Attorney Andrew M. Luger for the District of Minnesota.
The department’s complaint alleges that the MNDOC discriminates against individuals with disabilities in multiple ways: (1) failing to notify them about reasonable modifications for GED courses, practice tests and exams; (2) preventing them from applying for GED exam accommodations and (3) failing to give them reasonable modifications, such as extended time and breaks, in GED courses and on practice tests. Without reasonable modifications, many incarcerated individuals with disabilities repeatedly failed their practice tests or official exams, were denied access to other prison programs, and were released from incarceration without a GED.
Under the terms of the consent decree, which requires court approval, the MNDOC will revise its policies and procedures, train relevant personnel and educate incarcerated individuals on these revised policies and the ADA, hire an agency-wide ADA Compliance Officer and designate facility-level ADA and education coordinators, conduct a corrective action review to determine appropriate relief for currently-incarcerated individuals with disabilities and provide regular reports to the department. The MNDOC will also pay over $70,000 in compensatory damages to aggrieved individuals with disabilities.
The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living and economic self-sufficiency for people with disabilities. For more information on the Civil Rights Division, please visit the ADA website at http://www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. ADA complaints may be filed online at http://www.ada.gov/complaint/.
Michigan Property Manager Pleads Guilty to Money Laundering and Obstructing the IRSRead the Press Release
Michigan man pleaded guilty today to money laundering and obstructing the IRS.
According to court documents and statements made in court, from approximately 2008 through 2017, Matthew D. Adams, of Grosse Point Park, owned a property management company, MDA Property Services. Adams sold illegal narcotics to the president of Company A, who paid for the drugs using Company A’s funds. The buyer paid Adams with checks made out to MDA Property Services, and other entities Adams owned, so that they would appear to be legitimate payments for purported services rendered by Adams. From 2013 through 2017, the buyer paid Adams more than $10 million for illegal narcotics.
Adams deposited some of the checks into his personal and business bank accounts, and cashed the remainder, totaling approximately $5.3 million, at a local liquor store. For tax years 2013 through 2016, Adams caused his tax return preparer to prepare false business and individual tax returns by providing the return preparer solely business bank records, knowing that they did not reflect all of the illicit proceeds. In 2017 and 2018, during an audit of Adams’s business and individual tax returns, Adams falsely told the IRS that all income his business received was deposited into business bank accounts and that 90% percent of the funds MDA Property Services received from Company A through the buyer was for legitimate work, whereas Adams knew only three percent was, in fact, business-related.
During the course of his criminal conduct, Adams withdrew more than $1 million in cash of his illegal narcotics proceeds from business bank accounts and also used funds to acquire real estate. In addition, he spent over $1.25 million on private flights, golfing, jewelry, gambling, court-ordered child support, hotel stays and to purchase a firearm. Adams also bought a Cadillac Escalade, a Hummer and multiple classic cars.
Adams is scheduled to be sentenced on June 21, 2023 and faces a maximum penalty of three years in prison for obstructing the IRS and ten years in prison for money laundering. 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 Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Sam Bean and Jeffrey McLellan of the Justice Department’s Tax Division are prosecuting the case.
Michigan Insurance Salesman Convicted of Filing False Tax Returns and Making False Statements in BankruptcyRead the Press Release
A Michigan man was convicted today of filing false tax returns and making false statements to both a bankruptcy court and the Department of Justice.
According to court documents and evidence presented at trial, Donald Stanley LaVigne, formerly of Lake Orion, did not report insurance commissions and other income on tax returns he filed with the IRS for the years 2013 through 2019. In letters he sent to the IRS, LaVigne also falsely claimed that these commissions were not income to him.
When LaVigne filed for bankruptcy in 2018, he did not list the IRS as a creditor on the schedules attached to his bankruptcy petition even though he owed taxes to the IRS for the years 2008 and 2009 and 2013 through 2015. On one document he filed in the bankruptcy case, LaVigne also understated his income for the years 2016 and 2017.
Finally, LaVigne made a false statement to the Department of Justice. After he was notified that he was the target of a federal grand jury investigation, LaVigne sent a letter to the Department of Justice in which he falsely claimed that his bankruptcy attorney had reviewed his 2017 income tax return and advised him that it was “correct and complete.” In fact, his bankruptcy attorney testified that he had never advised LaVigne that his 2017 income tax return was accurate.
Sentencing is scheduled for June 1. LaVigne faces a maximum penalty of three years in prison on each of seven counts of filing false tax returns, five years in prison on each of two counts of making false statements in bankruptcy, and five years in prison for making a false statement to the Department of Justice. 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 Melissa S. Siskind and Catriona M. Coppler of the Justice Department’s Tax Division are prosecuting the case.
Mexican Man Sentenced to 156 Months for I-80 Traffic Stop Involving 20 Pounds of MethamphetamineRead the Press Release
United States Attorney Steven Russell announced that Jesus Sanchez-Meza, 26, of Mexico, was sentenced in federal court in Lincoln, Nebraska, on February 10, 2023, for Possession with Intent to Distribute Methamphetamine. Senior United States District Judge John M. Gerrard sentenced Sanchez-Meza to 156 months’ imprisonment. He was also ordered to serve five years of supervised release after his release from prison. There is no parole in the federal system.
On February 16, 2022, law enforcement photographed Sanchez-Meza, a U.S. citizen who resided in Mexico, driving a Ford F-150 truck with California license plates crossing the border from Mexico into the United States. On February 18, 2022, law enforcement observed Sanchez-Meza in the same F-150 truck driving too closely to vehicles on Interstate 80 in violation of Nebraska traffic laws. Law enforcement conducted a traffic stop of the truck. Sanchez-Meza gave false information to the officers regarding his travel plans. The truck was then searched by law enforcement, and they located 20 individual one-pound packages of methamphetamine.
This case was investigated by Lancaster County Sheriff’s Office and Homeland Security Investigations.
Maryland Man Sentenced to Prison for Unlawfully Transporting Illegal ImmigrantsRead the Press Release
SYRACUSE, NEW YORK – Alexander Guillen-Tamayo, age 32, of Lanham, Maryland, was sentenced yesterday to 12 months and one day in prison after previously pleading guilty to unlawfully transporting illegal immigrants.
United States Attorney Carla B. Freedman and Chief Patrol Agent Robert N. Garcia, United States Border Patrol, Swanton Sector, made the announcement.
In pleading guilty, Guillen-Tamayo admitted that, on a date prior to October 8, 2022, he was contacted by an individual who asked him to drive to Champlain, New York to pick up illegal immigrants and drive them to Maryland. On October 8, 2022, he drove to Champlain, New York from his home in Maryland, and picked up a group of illegal immigrants. The defendant’s vehicle was subsequently stopped near Plattsburgh, New York. The defendant admitted that he planned to drive the illegal immigrants to Maryland, and that he expected to be paid approximately $3,000.
The United States Border Patrol and the Clinton County (New York) Sheriff’s Office investigated the case, and it was prosecuted by Assistant U.S. Attorney Jessica N. Carbone.
Man Sentenced to over Nine Years for Conspiring to Distribute MethamphetamineRead the Press Release
A man who possessed over 150 grams of methamphetamine in Eldora, Iowa, was sentenced today to serve over nine years in federal prison.
Shane Anthony Johnson, age 45, from St. Anthony, Iowa, was convicted of conspiracy to distribute methamphetamine.
In a plea agreement, Johnson admitted to being involved in the transport of 165 grams of methamphetamine before being apprehended by Eldora police officers. It was later discovered Johnson had obtained approximately four ounces of methamphetamine from the same supplier before the date of his arrest. Johnson’s criminal history included methamphetamine-related convictions in 2019 and 2014, several theft convictions, and other offenses.
Sentencing was held before United States District Court Judge C.J. Williams. Johnson was sentenced to serve 109 months’ imprisonment and must serve a five‑year term of supervised release following his term of incarceration. There is no parole in the federal system. Johnson remains in the custody of the United States Marshal until he is transported to federal prison.
This case was investigated by the Iowa Division of Narcotics Enforcement and was prosecuted by Assistant United States Attorney Jason Dorval Norwood.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-00031-CJW.
Follow us on Twitter @USAO_NDIA.
Louisville Man Sentenced to over 15 Years for Trafficking MethamphetamineRead the Press Release
NEW ALBANY- Christopher Hill, 35, of Louisville Kentucky, was sentenced to 188 months in federal prison for distributing methamphetamine. Hill was convicted on all charged counts at the conclusion of a two-day jury trial.
According to court documents and evidence introduced at trial, on November 5, 2020, Jeffersonville Police (JPD) Officers stopped Christopher Hill for a suspected traffic violation. At the time, Hill was the subject of two outstanding arrest warrants from Louisville, Kentucky, for being a felon in possession of a firearm and for crimes of violence involving drug trafficking. During the arrest, two baggies filled with approximately 101.6 grams of methamphetamine fell from Hill’s pocket. A further search of Hill’s vehicle uncovered multiple cellular devices, marijuana, and $5,000 in cash. Further investigation revealed that Hill used Facebook messages to advertise that he had controlled substances for sale, and used Facebook and text messaging to arrange drug transactions.
“Drug dealers must be held accountable for the harm that their methamphetamine does to people and families impacted by substance use disorders,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “The sentence imposed here reflects the seriousness of these crimes and the need to protect the community. I commend the work of the FBI and the Jeffersonville Police Department for their efforts to get this meth trafficker off our streets.”
The FBI investigated this case with valuable assistance provided by the Jeffersonville Police Department. The sentence was imposed by U.S. District Court Judge Chief Tanya Walton Pratt. Judge Pratt also ordered that Hill be supervised by the U.S. Probation Office for 5 years following his release from federal prison.
U.S. Attorney Myers thanked Assistant United States Attorneys William L. McCoskey and Jeremy C. Fugate, who prosecuted this 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
Louisiana Woman Charged with Cares Act FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that CHANEL GALLE, of New Orleans, LA, age 44, was indicted on February 10, 2023 by a federal grand jury for two counts of making false statements related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
On March 27, 2020, The CARES Act became effective and established several new temporary programs and provided for the expansion of others to address the COVID-19 pandemic. Among these programs, the Paycheck Protection Program (PPP) authorized forgivable loans backed by the U.S. Small Business Administration (SBA) to small businesses to retain workers and maintain payroll, make mortgage interest payments, lease payments, and utility payments. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
According to the charging documents, GALLE made false statements to an approved lender on or about February 18, 2021, for the purpose of fraudulently obtaining a PPP loan. GALLE falsely claimed in her PPP application that she had a certain number of employees and incurred payroll expenses for an LLC called Coco’s Companion Care. GALLE thereafter received approximately $20,833.00 based upon the misrepresentations. GALLE then made false statements to an approved lender on or about March 30, 2021, for the purpose of fraudulently obtaining a second PPP loan. GALLE received approximately $20,832.00 after falsely claiming that she operated a beautician service.
GALLE faces a sentence of up to five years in prison, up to $250,000 in fines, and up to three years of supervised release for each false statements count. There is also a $100 mandatory special assessment fee per count due after conviction. U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
For more information on the Department of Justice’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorney Edward J. Rivera of the Financial Crimes Unit is in charge of the prosecution.
Local Man Posed as Dead Father to Steal Social Security and Pension BenefitsRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Timothy Gritman, 55, of Brodheadsville, PA pled guilty in U.S. District Court today to wire fraud and Social Security fraud for concealing the death of his father to steal his Social Security Administration Retirement Benefits ("SSA") and New York State pension benefits ("pension”) totaling approximately $204,985.
The defendant's father, Ralph Gritman, was 79 years old and in poor health in 2016 when he was last seen alive by relatives at defendant Gritman's Pennsylvania residence. In the summer of 2017, defendant Gritman relocated to Wyoming with his father. After that, the defendant posed as his dead father numerous times to continue receiving the SSA retirement benefits and the New York State pension.
Gritman obtained a Pennsylvania State identification card from the Department of Transportation Driver License Center in his father's name. Defendant Gritman was then photographed trying to disguise himself as an older man, holding the Pennsylvania State identification card he obtained of his father and appearing to use make-up to whiten his hair and eyebrows.
According to Medicare records, Ralph Gritman's health insurance was last used in September 2017 for an emergency visit to a Wyoming hospital. After that, his Medicare health benefits were never used again, but he was not reported deceased. Thus, his SSA and pension benefits continued to be paid to a joint account with the defendant. From approximately October 2017 to October 2022, defendant Gritman took Social Security and pension benefits intended for his father for his own personal use. While law enforcement has determined that Ralph Gritman is now deceased, his remains have not been found.
"Representing the United States in court means protecting taxpayer funds, including pursuing cases where there is an attempt to obtain money from the SSA fraudulently," said U.S. Attorney Romero. "Defendant Gritman physically represented himself as his elderly father to steal funds from the SSA. His guilty plea should serve as a warning that defrauding the SSA or any other government agency will never be worth money fraudulently obtained."
“Over several years, Timothy Gritman collected hundreds of thousands of dollars to which he knew he wasn’t entitled,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Needless to say, defrauding the government is a criminally bad idea and the FBI and our partners will continue to pursue anyone bold enough, and foolish enough, to do so.”
“Mr. Gritman’s admission holds him accountable for the intentional concealment of his father’s death to steal government funds for his personal gain,” said Gail S. Ennis, Inspector General for the Social Security Administration. “I thank each agency for their investigative efforts, as well as the NYS Comptroller’s office for their work in this investigation, and the U.S. Attorney’s Office for prosecuting this case.”
“Timothy Gritman hid his father’s death to collect his pension and social security payments for more than four years, going so far as posing as his deceased father to keep his fraud going,” Thomas P. DiNapoli said. “Thanks to the work of my investigative team and our partners in law enforcement, he has been brought to justice. My office will continue to hold anyone who seeks to defraud the pension system accountable no matter who or where they are.”
“Timothy Gritman hid his father’s death to collect his pension and social security payments for more than four years, going so far as posing as his deceased father to keep his fraud going,” DiNapoli said. “Thanks to the work of my investigative team and our partners in law enforcement, he has been brought to justice. My office will continue to hold anyone who seeks to defraud the pension system accountable no matter who or where they are.”
The defendant faces a maximum possible sentence of 285 years' imprisonment, a three-year period of supervised release, a $3,750,000 fine, and a $1,500 special assessment.
The case was investigated by the FBI, Social Security Administration-Office of the Inspector General, U.S. Postal Inspection Service, and the New York State Office of the Comptroller and is being prosecuted by Special Assistant United States Attorney Megan Curran.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Livestock Dealer and Four of Its Managers Sentenced in Widespread Pig Fraud SchemeRead the Press Release
An Iowa corporation and four of its high-level managers have been sentenced in federal court after law enforcement uncovered a wide-ranging scheme to defraud that victimized livestock producers throughout the Midwest, caused over $3 million in loss, and spanned nearly two decades.
Lynch Family Companies, Inc., of Waucoma, Iowa, also known as “Lynch Livestock,” pled guilty on July 29, 2022, to one count of Failing to Comply with an Order of the Secretary of Agriculture. On February 10, 2023, Lynch Livestock was sentenced to five years of probation, fined $196,000, and ordered to pay over $3 million in restitution to livestock producers and farmers.
Billie Joe Wickham, age 51, of Waucoma, Iowa, pled guilty on July 15, 2022, to one count of Conspiracy to Defraud the United States. On January 13, 2023, Wickham was sentenced to six months of imprisonment and fined $3,000. Wickham must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Charlie Lynch, age 65, of Fort Atkinson, Iowa, pled guilty on July 25, 2022, to one count of Conspiracy to Defraud the United States. On January 13, 2023, Lynch was sentenced to five years of probation and fined $3,000.
Leland “Pete” Blue, age 60, of Fredericksburg, Iowa, pled guilty on July 28, 2022, to one count of Conspiracy to Defraud the United States. On January 13, 2023, Blue was sentenced to five years of probation and fined $1,000.
Tyler Thoms, age 31, of Fayette, Iowa, pled guilty on August 9, 2022, to one count of Causing a Livestock Dealer to Keep Inaccurate Accounts and Records. On January 13, 2023, Thoms was sentenced to one year of probation.
In its plea agreement, Lynch Livestock admitted that it was registered with the Secretary of the United States Department of Agriculture (“USDA”) as a dealer under the Packers and Stockyards Act of 1921 (“the Act”). Lynch Livestock operated buying stations in the Northern District of Iowa and elsewhere. Lynch Livestock bought swine from livestock producers and sellers at these stations, and the prices Lynch Livestock paid was based on the numbers, classifications, and weights of the swine.
Beginning in about the early 2000s, and continuing through at least late March 2017, Lynch Livestock’s second-ranking official directed other managers and employees to falsely reduce and downgrade the numbers, quality classifications, and weights of swine that producers and sellers had delivered to Lynch Livestock’s buying stations throughout the Midwest, including but not limited to stations in the Northern District of Iowa. These practices largely concerned large, corporate swine producers who brought their swine for sale to Lynch Livestock. To effectuate the fraud, managers at Lynch Livestock’s headquarters created false and fraudulent scale tickets bearing the initials of the managers at the buying stations. By falsifying the producers’ accounts of purchase, Lynch Livestock and its managers created false and fraudulent invoices to pay less than what was due and owing to those producers. Lynch Livestock managers and employees then routinely shredded and burned evidence of the fraud and document destruction was a routine practice of the company and a specific response when it was anticipated that USDA officials were investigating the company’s practices.
In late 2017, Lynch Livestock and the USDA entered an administrative consent decision under the Act in which Lynch Livestock agreed to pay nearly $800,000 in restitution to two of its corporate customers on account of fraud committed at two Iowa buying stations. In its plea agreement, Lynch Livestock agreed the amount of loss from the fraudulent conduct prior to 2018 was greater and not isolated to the two corporate customers or two buying stations.
Between about 2018 and March 2021, Lynch Livestock’s managers and employees used a crowbar or other similar object to manipulate the scales on which livestock producers’ swine was weighed at its buying stations. As a result, Lynch Livestock created, kept, and provided to livestock producers scale tickets that contained false information because they understated the actual weight of the swine. Consequently, Lynch Livestock paid livestock producers less than what was owed and violated the 2017 consent decision with the USDA. In 2021, Lynch Livestock and the USDA entered a second administrative consent decision. Lynch Livestock agreed to pay over $400,000 in restitution to various farmers and producers.
Evidence at various hearings in the cases established that Wickham reported directly to the second-ranking official and participated in the fraud for over fifteen years. Wickham also had a leadership role in the conspiracy, directing other employees to stamp fraudulent scale tickets and to manipulate the sorting of swine to lower the values for producers. Charlie Lynch was involved in sow procurement and marketing for Lynch Livestock and, from no later than 2013 until about 2017, reduced classifications on sows that producers sold to Lynch Livestock. Blue managed Lynch Livestock’s sow inventory and, no later than 2012, joined the scheme. Thoms initially worked as a bookkeeper in Lynch Livestock’s headquarters building with Wickham, Lynch, and Blue and then, from about 2018 to early 2021, managed Lynch Livestock’s buying station at Waucoma, Iowa. While working in the headquarters building as a bookkeeper, Thoms participated in forging scale tickets and then, as a manager, used a crowbar to lift up on a scale to cheat producers.
The defendants were sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Wickham was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set. During the various sentencing hearings, Judge Williams referred to Lynch Livestock’s fraud scheme as “a systematic method of cheating and stealing” from livestock producers and sellers and noted “the nature of the fraud [was] to rip off people little by little, day by day.” Lynch Livestock cooperated with the government’s criminal investigation and has agreed to various compliance measures as a part of its plea agreement.
In its plea agreement, Lynch Livestock agreed to pay over $3 million in restitution with credit for approximately $1.2 million that Lynch Livestock has already paid because of the 2017 and 2021 USDA consent decisions. With respect to the $1.8 million in new restitution that will be available for livestock producers and sellers, Judge Williams indicated further proceedings will be scheduled to allocate the restitution among Lynch Livestock’s victims.
United States Attorney Timothy Duax stated, “Lynch Livestock and its managers defrauded livestock producers throughout the Midwest for nearly two decades. These prosecutions help restore the victims by requiring Lynch Livestock to pay 3 million dollars in restitution and make clear that our office is committed to rooting out agriculture fraud in this state.”
The case was prosecuted by Assistant United States Attorneys Timothy L. Vavricek and Matthew J. Cole and investigated by the United States Department of Agriculture, Office of Inspector General, and the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 21-CR-2074 (Wickham and Lynch), 21-CR-2042 (Blue), 22-CR-2043 (Lynch Family Companies, Inc.), and 22-CR-2044 (Thoms).
Follow us on Twitter @USAO_NDIA.
Leader of Criminal Organization Sentenced to Six Years in Prison for Role in Operation of Illegal Gambling DensRead the Press Release
SAN DIEGO – Long Ngoc Tran (42) was sentenced in federal court yesterday to 72 months in prison for his role in the operation of dozens of illegal gambling dens that fostered drug trafficking, violent crime, and gang activity within a small San Diego neighborhood.
On April 9, 2021, Tran was indicted for Conspiracy to Operate an Illegal Gambling Business and Maintaining a Drug-Involved Premises; in violation of 18 U.S.C. § 371; Operating an Illegal Gambling Business; in violation of 18 U.S.C. § 1955; and Maintaining a Drug-Involved Premises; in violation of 21
U.S.C. § 856(a)(1). On April 14, 2021, Tran was arrested, made his initial appearance, and pled not guilty.
On July 28, 2022, pursuant to a plea agreement, Tran pled guilty to the first three counts of the Indictment, admitting to committing all three crimes.
During his sentencing, United States District Court Judge Marilyn Huff noted that Tran was affiliated with numerous gambling premises, and that drug trafficking was prevalent at these dens. Judge Huff also took into consideration Tran’s prior 2015 state court conviction for operating or maintaining a drug house. According to the indictment, Tran operated at least nine illegal gambling dens.
Based on publicly available filings, as far back as 2013, San Diego Police Department (SDPD) Street Gang Unit Detectives began to observe a steady increase in the prevalence of illegal gambling dens. Investigators learned that Asian gang members and associates were often involved in operating these illegal gambling dens and that methamphetamine was being used and sold at these illegal gambling dens. The illegal gambling dens were often located inside houses, apartments, and outbuildings in residential neighborhoods predominantly in City Heights, in the East San Diego area. It was common for gambling den owners to pay rent in cash to the owners of these properties and, in some cases, a percentage of the profits, as incentive to cast a blind eye to all the foot traffic.
In 2015, these locations began to draw more attention due to the frequency of violent crimes occurring in and around them, including robberies, shootings, stabbings, and assaults. Investigators learned that the patrons were often gang members, career criminals, habitual drug users, and fugitives.
In the fall of 2019, the San Diego Violent Crime Task Force - Gang Group (VCTF-GG) initiated an investigation dubbed “Marble Lion,” into the illegal gambling dens operating in the City Heights neighborhood of San Diego, often within homes and small businesses. At the time, more than 24 such dens were operating on any given day. These gambling dens attracted other criminal activity, including the use and distribution of illegal of narcotics, sales of weapons, and prostitution.
From July 2018 through July 2020, there were over four hundred crime cases and over three hundred arrests within 150 feet of the thirty-six illegal gambling locations investigated, causing this area to be the highest crime neighborhood in the East San Diego area. Law Enforcement investigated homicides, shootings, stabbings, felony assaults, robberies, arson, auto thefts, burglaries, identity theft, firearm possession, drug sales/possession, and other crimes in and around these locations.
The illegal gambling dens were equipped with electronic gambling machines which were programmed with several games of chance such as poker, blackjack, keno, jacks or better, and slot games. Most locations of these establishments were open 24 hours a day, seven days a week, with some shutting down in the early morning hours and starting up again in the afternoons. Investigators were also aware that most of these locations were outfitted with exterior and interior video surveillance cameras, which were often monitored remotely by the establishment owners and managers.
Investigators learned that these illegal gambling dens were also drug involved premises, commonly involving methamphetamine use and sales, as well as other drugs, which were sold by both employees and independent drug dealers. It was also common for employees to hand out small amounts of methamphetamine and “comp” customers who were playing. One owner described how he would give methamphetamine to patrons because it drew them to the location and kept them playing on gambling machines.
Between the fall of 2019 and the spring of 2021, VCTF-GG conducted more than 30 controlled drug and weapons purchases, performed extensive surveillance, and executed numerous search warrants. This culminated, in April 2021, with a large-scale midnight arrest and search operation involving more than 450 law enforcement officers from the FBI, HSI, BOP, DEA, ATF, IRS, San Diego Police Department, San Diego Sheriff’s Office, Chula Vista Police Department, National City Police Department, California Department of Corrections & Rehabilitation, and the San Diego District Attorney’s Office. This operation alone resulted in 37 arrests, the seizure of 287 gambling machines, pound quantities of methamphetamine, 2 firearms, and over $200,000. Subsequent operations have resulted in total arrests of more than 100 federal and local subjects, as well as total seizures of 13 pounds of methamphetamine, 47 firearms, over $590,000, over 400 gambling machines, and ounce quantities of cocaine, fentanyl, heroin, and MDMA.
On April 9, 2021, the Grand Jury returned 17 related indictments (21CR1109-H through 21CR1124-H) charging 47 defendants for offenses related to illegal gambling, firearm offenses, and drug distribution.
“This operation shows the real public safety benefits that can be achieved through strong local and federal law enforcement partnerships,” said U.S. Attorney Randy Grossman. “It is telling and rewarding that law- abiding residents noticed a positive impact on their communities and have expressed gratitude for law enforcement’s efforts.” Grossman praised the federal and county prosecutors as well as the team of FBI Special Agents, San Diego Police Department detectives/officers and other law enforcement agencies who worked so hard on this investigation.
"Today, the sentencing of Tran represents not only the end of the illegal gambling network he operated, but the termination of all violent crimes perpetrated due to the existence of these illegal gambling dens,” said Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office. “Our focus is and always will be on protecting our communities from violence. We thank our partners that make up the Violent Crime Task Force – Gang Group for their coordination in ensuring that Tran returns to where he belongs—behind bars.”
“The top priority of the San Diego Police Department is violent crime. The success of this operation means safer neighborhoods for our City Heights community and our city as a whole,” said Police Chief David Nisleit. “I want to thank our officers and partner agencies for their hard work on this investigation.”
“By working together, we were able to bring peace back to a neighborhood that was being overrun with crime because of these illegal gambling dens, which are magnets for gang violence,” said San Diego County District Attorney Summer Stephan. “The District Attorney’s Office investigated and filed criminal charges against 30 defendants on the state side for a murder, robberies, shootings, illegal possession of firearms, and drug sales. I am grateful to the U.S. Attorney, FBI, San Diego Police Department and the Violent Crimes Task Force for their commitment to shutting down these illegal operations.”
DEFENDANTS
Case Number 21CR1109-H
Name
Age
Hometown
Sentence
LONG NGOC TRAN (1),aka “Long Tu,”
42
San Diego
72 months
TUNG THANH NGUYEN (2),aka “Ang,”
52
San Diego
30 months
THANH LAN THI NGUYEN (3),aka “Lan,”
43
San Diego
Case still pending
DENNIS MICHAEL DIBLASI (4),aka “Drago,”
49
San Diego
21 months
WAYNE JONATHAN CLAYTON Jr. (5),aka “G-Wayne,”
52
San Diego
18 months
YVONNE MICHELLE AGUILAR (6),aka “Michelle,”
43
San Diego
Case still pending
ROBERT JAMES WRIGHT (7),
40
San Diego
Case still pending
TAM ONH ONG (8), aka “Fireball,”
45
San Diego
Case still pending
SAENGAMPHAY M. PHOMMASANE (9) aka “Melinda,”
40
San Diego
Case still pending
KAREN RENE ANN PRANGSAMPHAN- PORTER (10), aka “KK,”
33
Arizona
15 months home confinement
SUMMARY OF CHARGES
Conspiracy (Title 18, U.S.C., Sec. 371 – Conspiracy) Illegal Gambling Business (Title 18, U.S.C., Sec. 1955)
Maintaining a Drug-Involved Premises (Title 21, U.S.C., Sec. 856(a)(1)) Distribution of Methamphetamine (Title 21, U.S.C., Sec. 841(a)(1))
Maximum Penalties: For Conspiracy Charge: Five years’ imprisonment and a $250,000 fine.
Maximum Penalties: For Illegal Gambling Business Charge: Five years’ imprisonment and a $250,000 fine. Maximum Penalties: For Maintaining Drug Involved Premises Charges: Five years’ imprisonment and a $500,000 fine.
Maximum Penalties: For Distribution of Methamphetamine Charges: Life in prison with a mandatory minimum sentence of 10 years and a $10 million fine.
Case Number 21CR1110-H
Name
Age
Hometown
Sentence
JIMMY HUI BANH (1),
45
San Diego
57 months
JOSE ANTONIO TORRESDAY (2),aka “Pepe,”
31
San Diego
Time served
TINA SENKET (3),
35
San Diego
387 days
JIMMY LU (4),aka “Nam Van Lu,” aka “Nam Thao,”
56
San Diego
Case still pending
ARCADIO MAMURI CRUZ (5),aka “Bangsta,” aka “Archie,”
38
San Diego
Case still pending
MARK ANONAS ARCELAO (6), aka “Lil Tipsy,”
30
Jacksonville, Florida
41 months
SUMMARY OF CHARGES
Conspiracy (Title 18, U.S.C., Sec. 371 – Conspiracy) Illegal Gambling Business (Title 18, U.S.C., Sec. 1955)
Maintaining a Drug-Involved Premises (Title 21, U.S.C., Sec. 856(a)(1)) Felon in Possession of a Firearm (18, U.S.C., Secs. 922(g)(1) and 924(a)(2))
Maximum Penalties: For Conspiracy Charge: Five years’ imprisonment and a $250,000 fine. Maximum Penalties: For Illegal Gambling Business Charge: Five years’ imprisonment and a $250,000 fine.
Maximum Penalties: For Maintaining Drug Involved Premises Charges: Five years’ imprisonment and a $500,000 fine.
Maximum Penalties: For Felon in Possession of Firearm Charges: Ten years’ imprisonment and a $250,000 fine.
Case Number 21CR1111-H
Name
Age
Hometown
Sentence
*TRI MINH VO, (1),
39
San Diego
fugitive
TIEN HONG HONG LE (2),aka “Mr. Le,”
59
Phoenix, AZ
24 months
DONG VAN NGUYEN (3),
45
San Diego
36 months
DANG VAN NGUYEN (4),
55
San Diego
Case still pending
MICHELLE SALVADORE EDWARDS (5),
49
San Ysidro
41 months
KHANG DINH NGUYEN (6), aka “K-Y,”
47
San Diego
Time served
LEETRI DANG (7),
38
San Diego
Time served
KE VAN TRAN (8), aka “Kevin,”
59
San Diego
Case still pending
KIARA PORSHA EASLEY (9),
30
San Diego
Time served
TO VAN LAI (10), aka “Took,”
44
San Diego
60 months
CU VAN HUYN (11), aka “Cucu,”
41
San Diego
Time served
DAPHNE NICOLE RIVERA (12),
47
El Cajon
33 months
WILLIAM VANNA BOUNSAVATH (13) aka “Ray Ray,”
36
San Diego
46 months
ALMA SOCORRO SILVA (14),
50
San Diego
Case still pending
TONY NGUYEN (15) aka “Lucky,”
42
San Diego
63 months
SUMMARY OF CHARGES
Conspiracy (Title 18, U.S.C., Sec. 371 – Conspiracy) Illegal Gambling Business (Title 18, U.S.C., Sec. 1955)
Maintaining a Drug-Involved Premises (Title 21, U.S.C., Sec. 856(a)(1)) Distribution of Methamphetamine (Title 21, U.S.C., Sec. 841(a)(1))
Possession with Intent to Distribute Methamphetamine (Title 21, U.S.C., Sec. 841(a)(1))
Maximum Penalties: For Conspiracy Charge: Five years’ imprisonment and a $250,000 fine.
Maximum Penalties: For Illegal Gambling Business Charge: Five years’ imprisonment and a $250,000 fine. Maximum Penalties: For Maintaining Drug Involved Premises
Charges: Five years imprisonment and a $500,000 fine.
Maximum Penalties: For Possession with Intent to Distribute and Distribution of Methamphetamine Charges: Life in prison with a mandatory minimum sentence of 10 years and a $10 million fine.
Case Number 21CR1112-H
Name
Age
Hometown
Sentence
*LE THI LE (1), aka “Chi Le,”
72
San Diego
10 months
PHOUNG THANH BUI (2)
47
San Diego
40 months
SUMMARY OF CHARGES
Conspiracy (Title 18, U.S.C., Sec. 371 – Conspiracy) Illegal Gambling Business (Title 18, U.S.C., Sec. 1955)
Maintaining a Drug-Involved Premises (Title 21, U.S.C., Sec. 856(a)(1)) Distribution of Methamphetamine (Title 21, U.S.C., Sec. 841(a)(1))
Maximum Penalties: For Conspiracy Charge: Five years’ imprisonment and a $250,000 fine. Maximum Penalties: For Illegal Gambling Business Charge: Five years’ imprisonment and a $250,000 fine.
Maximum Penalties: For Maintaining Drug Involved Premises Charges: Five years’ imprisonment and a $500,000 fine.
Maximum Penalties: For Distribution of Methamphetamine Charges: Forty years’ imprisonment with a mandatory minimum sentence of five years and a $5 million fine.
Case Number 21CR1113-H
Name
Age
Hometown
Sentence
ARTHUR MARCELINO CASTILLO
42
San Diego
51 months
SUMMARY OF CHARGES
Distribution of Methamphetamine (Title 21, U.S.C., Sec. 841(a)(1))
Maximum Penalties: For Distribution of Methamphetamine Charge: life in prison with a mandatory minimum sentence of 10 years and a $10 million fine.
Case Number 21CR1114-H
Name
Age
Hometown
Sentence
*ENRIQUE SAMUEL DUENAS, aka “Kiki,”
30
San Diego
fugitive
SUMMARY OF CHARGES
Distribution of Methamphetamine (Title 21, U.S.C., Sec. 841(a)(1))
Felon in Possession of a Firearm (18, U.S.C., Secs. 922(g)(1) and 924(a)(2))
Importation of Methamphetamine (Title 21, U.S.C., Secs. 952 & 960)
Maximum Penalties: For Distribution of Methamphetamine Charges: Forty years’ imprisonment with a mandatory minimum sentence of five years and a $5 million fine.
Maximum Penalties: For Felon in Possession of Firearm Charges: Ten years’ imprisonment and a $250,000 fine.
Maximum Penalties: Importation of Methamphetamine Charges: life in prison with a mandatory minimum sentence of 10 years and a $10 million fine.
Case Number 21CR1115-H
Name
Age
Hometown
Sentence
JULIUS GREENOGE
41
San Diego
15 months
SUMMARY OF CHARGES
Felon in Possession of a Firearm (18, U.S.C., Secs. 922(g)(1) and 924(a)(2))
Maximum Penalties: For Felon in Possession of Firearm Charge: 10 years’ imprisonment and a $250,000 fine.
Case Number 21CR1116-H
Name
Age
Hometown
Sentence
*MARTA LIDIA GUTIERREZ
29
San Diego
fugitive
SUMMARY OF CHARGES
Importation of Methamphetamine (Title 21, U.S.C., Secs. 952 & 960)
Maximum Penalties: Importation of Methamphetamine Charges: Life in prison with a mandatory minimum sentence of 10 years and a $10 million fine.
Case Number 21CR1117-H
Name
Age
Hometown
Sentence
*KEOUDONE INTHAVONG
49
San Diego
41 months
SUMMARY OF CHARGES
Possession with Intent to Distribute/Distribution of Methamphetamine (Title 21, U.S.C., Sec. 841(a)(1))
Maximum Penalties: For Possession with Intent to Distribute and Distribution of Methamphetamine Charges: Forty years’ imprisonment with a mandatory minimum sentence of five years and a $5 million fine.
Case Number 21CR1118-H
Name
Age
Hometown
Sentence
*PHONETHIP PETE INTHAVONG
52
San Diego
40 months
SUMMARY OF CHARGES
Possession with Intent to Distribute (Title 21, U.S.C., Sec. 841(a)(1))
Maximum Penalties: For Possession with Intent to Distribute Charge: Forty years’ imprisonment with a mandatory minimum sentence of five years and a $5 million fine.
Case Number 21CR1119-H
Name
Age
Hometown
Sentence
PHINATH PETER KHVANN, aka “Peanut,”
46
San Diego
18 months
SUMMARY OF CHARGES
Felon in Possession of a Firearm (18, U.S.C., Secs. 922(g)(1) and 924(a)(2))
Maximum Penalties: For Felon in Possession of Firearm Charge: Ten years’ imprisonment and a $250,000 fine.
Case Number 21CR1120-H
Name
Age
Hometown
Sentence
THANH NGUYEN, aka “Poway,”
46
Poway
Case still pending
SUMMARY OF CHARGES
Felon in Possession of a Firearms and Ammunition (18, U.S.C., Secs. 922(g)(1) and 924(a)(2))
Maximum Penalties: For Felon in Possession of Firearm and Ammunition Charges: years’ imprisonment and a $250,000 fine.
Case Number 21CR1121-H
Name
Age
Hometown
Sentence
DAVID LIBANAN OPHEIM, aka “Casper,”
48
San Diego
48 months
SUMMARY OF CHARGES
Possession with Intent to Distribute (Title 21, U.S.C., Sec. 841(a)(1))
Maximum Penalties: For Possession with Intent to Distribute Charge: 40 years’ imprisonment with a mandatory minimum sentence of 5 years and a $5 million fine.
Case Number 21CR1122-H
Name
Age
Hometown
Sentence
SEAN MICHAEL RIED (1)
36
San Diego
46 months
TUNG NGOC NGUYEN (2)
26
San Diego
60 months
SUMMARY OF CHARGES
Distribution of Methamphetamine (Title 21, U.S.C., Sec. 841(a)(1))
Maximum Penalties: For Distribution of Methamphetamine Charge: Forty years’ imprisonment with a mandatory minimum sentence of five years and a $5 million fine.
Case Number 21CR1123-H
Name
Age
Hometown
Sentence
*WILLIAM HENRY SCOVALL, aka “Cap,”
30
San Diego
24 months
SUMMARY OF CHARGES
Felon in Possession of a Firearm (18, U.S.C., Secs. 922(g)(1) and 924(a)(2))
Maximum Penalties: For Felon in Possession of Firearm Charge: Ten years’ imprisonment and a $250,000 fine.
Case Number 21CR1124-H
Name
Age
Hometown
Sentence
CESAR ALONZO VALLADOLID, aka “Playboy,”
38
San Diego
Case still pending
SUMMARY OF CHARGES
Possession with Intent to Distribute Methamphetamine (Title 21, U.S.C., Sec. 841(a)(1))
Felon in Possession of a Firearm (18, U.S.C., Secs. 922(g)(1) and 924(a)(2))
Importation of Methamphetamine (Title 21, U.S.C., Secs. 952 & 960)
Maximum Penalties: For Possession with Intent to Distribute Methamphetamine Charges: Life in prison with a mandatory minimum sentence of 10 years and a $10 million fine.
Maximum Penalties: For Felon in Possession of Firearm Charges: Ten years’ imprisonment and a $250,000 fine.
Maximum Penalties: Importation of Methamphetamine Charges: Forty years’ imprisonment with a mandatory minimum sentence of five years and a $5 million fine.
AGENCIES
Members on the Violent Crimes Task Force
FBI
San Diego Police Department San Diego Sheriff’s Department Internal Revenue Service Homeland Security Investigations National City Police Department Chula Vista Police Department Federal Bureau of Prisons
California Department of Corrections and Rehabilitation San Diego County Probation
San Diego County District Attorney’s Office
Additional partner agencies participating in the takedown
Drug Enforcement Administration
Bureau of Alcohol, Tobacco, Firearms and Explosives
U.S. Marshals Service
California Bureau of Gambling Control San Diego City Attorney’s Office
The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Lead defendant sentenced to 20 years in federal prison for role in major Augusta-area drug trafficking operationRead the Press Release
AUGUSTA, GA.: The lead defendant in a major methamphetamine-trafficking organization has been sentenced to two decades in federal prison after admitting his participation in a conspiracy related to at least one overdose death.
Jayson Dwayne Wheatley, 42, of Augusta, was sentenced to 240 months in prison after previously pleading guilty to Conspiracy to Possess with Intent to Distribute, and to Distribute, 50 Grams or More of Methamphetamine, and an Amount of Heroin, said David H. Estes, U.S. Attorney for the Southern District of Georgia. U.S. District Court Chief Judge J. Randal Hall also fined Wheatley $2,500 and ordered him to serve five years of supervised release upon completion of his prison term.
There is no parole in the federal system.
“The epidemic of drug overdoses and deaths continues to ravage our nation, and traffickers like Jayson Wheatley pour gasoline on this raging fire while enabling violent crime from the illicit drug trade,” said U.S. Attorney Estes. “Thanks to the hard work of our law enforcement partners and prosecutors, he and his co-conspirators are being held accountable for their crimes.”
As described in court documents and testimony, Wheatley and his co-defendants were indicted in April 2022 in USA v. Wheatley et. al, based on evidence gathered during the investigation in Operation Wheat Fields. The Organized Crime Drug Enforcement Task Forces investigation began in early 2018 and identified a pipeline of illegal drugs from Mexico routed through Atlanta and into the Augusta area. The investigation led to multiple searches of residences and hotel rooms, and linked at least one overdose death in the Augusta area to drugs distributed by the conspiracy.
In addition to Wheatley, six other defendants were named in the federal indictment. Two have been sentenced to federal prison; three defendants await sentencing after pleading guilty to related charges. One defendant awaits further court proceedings.
A related indictment in Operation Wheat Fields, USA v. Fields et. al, named 10 additional defendants in October 2022. One of those defendants has entered a guilty plea; the remaining defendants await further court proceedings and are considered innocent unless and until proven guilty.
“ATF will continue to work alongside our federal, state and local partners in furtherance of reducing violent crime,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
“These criminal drug organizations deliver misery and death to communities everywhere,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division. “This defendant will no longer be able to distribute the poison that destroys our communities.”
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
Operation Wheat Fields was investigated by the Richmond County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Drug Enforcement Administration; the Columbia County Sheriff’s Office; and the Swainsboro Police Department, and prosecuted for the United States by Southern District of Georgia Assistant U.S. Attorney and Criminal Division Chief Patricia G. Rhodes.
Lawrence Man Sentenced to 8 Years in Prison for Distributing Fentanyl Pills Produced Using Multiple Pill Press MachinesRead the Press Release
BOSTON – A Lawrence man was sentenced today in federal court in Boston for distributing counterfeit prescription pills containing fentanyl, made using multiple pill press machines.
Miguel Angel Fajardo, 32, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to eight years in prison and two years of supervised release. In October 2022, Fajardo pleaded guilty to one count of possession with intent to distribute 400 grams or more of fentanyl.
In March 2022, law enforcement searched Fajardo’s apartment and seized approximately 7.3 kilograms worth of fentanyl pills, an industrial pill press and “M” and “30” pill stamps consistent with markings on pharmaceutical-grade Oxycodone pills. Pill stamps are commonly used to make counterfeit pills appear to be legitimate pharmaceutical-grade pills. Approximately 1.4 kilograms of fentanyl powder, two individual finger presses, 50 rounds of .40 caliber ammunition concealed in a microwave, four kilograms of cutting agent and two air purifying respirators – which are commonly used when working with fentanyl powder were also found. Additionally, two one-kilogram pill press machines and another large pill press were found.
U.S. Attorney Rachael S. Rollins; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Lawrence Acting Police Chief Michael McCarthy made the announcement. Assistant U.S. Attorneys Craig E. Estes and Evan D. Panich of Rollins’ Narcotics & Money Laundering Unit prosecuted the case.
Lakeland Man Pleads Guilty to Conspiracy to Commit Wire FraudRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Ramon Paz (52, Lakeland) has pleaded guilty to one count of conspiracy to commit wire fraud. Paz faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Paz owned and managed a construction company which he registered with the State of Florida in December 2016. This company purported to supply construction services and labor to work for construction site contractors. In order to comply with Florida law, Paz’s company was required to secure and maintain adequate worker’s compensation insurance coverage. Providers of worker’s compensation insurance base the premiums they charge and the amount of coverage they provide on the number of employees a company has and the total annual payroll of those employees. Paz’s company had agreements with contractors and subcontractors to use workers purported to be Paz’s employees at construction sites and these workers were often undocumented aliens who were actually working for and under the daily supervision and direction of the contractors. Paz or others would then regularly receive “payroll checks” from contractors that were cashed at various financial institutions to pay Paz’s purported “employees” and other related expenses.
During the time period charged in the criminal information, Paz falsely and fraudulently represented in insurance applications that his company had a very limited payroll and a very limited number of employees that worked on construction jobsites. Paz also falsely and fraudulently sent wire communications to numerous contractors representing that his company’s employees had full worker’s compensation coverage. In reality, Paz’s company received and cashed more than $21 million in checks from various construction contractors for these purported “employees.” These payroll figures far exceeded the very limited payroll figures that Paz had reported to his worker’s compensation insurance company. As a result, the employees of Paz’s company, in reality the employees of other entities, performed work on jobsites without adequate insurance coverage. In addition, the insurers lost premiums they would have charged had they been aware of the true number of workers their policies were thus being manipulated to cover.
As a result of these misrepresentations, Paz’s company also disclaimed responsibility for ensuring that jobsite workers were legally authorized to work in the United States and that required state and federal payroll taxes were being paid for these workers. The contractors who actually paid these workers’ wages and used their services were thus also able to avoid responsibility for those duties as well.
This case was investigated by Homeland Security Investigations (HSI) and the State of Florida Department of Financial Services. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Koreksyon: Kat Individi La Florid Arete nan yon Konplo pou Touye Prezidan Ayisyen a, Jiri Tabli a Emèt Akizasyon Ofisyèl kont 11Read the Press Release
KOREKSYON: Kominike de laprès orijinal ap korije pou reflete ke twa sitwayen ameriken ak yon rezidan pèmanan legal te arete jodiya. Akize Intriago se yon sitwayen ameriken (Venezyelyen/Ameriken), pa yon rezidan pèmanan legal.
MIAMI - Maten a, Fòsdelòd Federal Lèzetazini arete yon sitwayen ameriken ansanm ak de rezidan pèmanan ki abite LaFlorid ansanm ak yon sitwayen ameriken ki abite Tampa, konfòm ak plent kriminèl yo pou patisipasyon yo nan evènman asasina Prezidan Jovenel Moise d'Ayiti ki te fèt le 7 jiyè 2021. Aprè arestsyon yo, yon Jiri Tabli LaFlorid emèt yon nouvo akizasyon ki akize kat endividi sa yo, ansanm ak sèt lòt ki te deja arete ak akize Ozetazini pou swadizan wòl yo nan konplo a.
Men Kat endividi yo arete jodiya nan LaFlorid: Arcangel Pretel Ortiz, 50 lane, sitwayen Kolonbyen rezidan Miami epi rezidan pèmanan Lèzetazini; Antonio Inttriago, 59 lane sitwayen Venezyelyen rezidan Miami epi rezidan pèmanan Lèzetazini; Walter Veintemilla, 54 lane de Weston; ak Frederick Bergmann, 64 lane de Tampa.
Yap fè konparisyon inisyal yo jodiya a 2:00 de laprè midi nan Miami devan Jij Majistra Lauren Louis.
Ak tout arestasyon sa yo ki fèt jodiya, 11 moun pral fè fas a akizasyon sa yo nan Distri Sid LaFlorid ki gen rapò ak asasina a. Twazyèm nouvo akizasyon ofisyèl la akize Ortiz, Intriago ak Veintemilla ansanm ak James Solages de 37 lane, Joseph Vincent de 57 lane, ansanm ak German Alejandro Rivera Garcia de 44 lane, ke yo transfere ba otorite Lèzetazini mwa pase; Mario Antonio Palacios Palacios de 43 lane ke yo te arete an janvye 2022; Rodolphe Jaar, de 49 lane ke yo te arete an janvye 2022; ak Joseph Joel John, de 51 lane ke yo te arete an Me 2022. Akize sa yo ------Ortiz, Intriago, Veintemilla, Solages, Vincent, Rivera, Palacios, Jaar, ak John-----akize de konplo pou founi sipò ak resous esansyèl nan yon konplo pou kidnape oswa touye andeyò Lèzetazini, ki abouti nan lanmò; founi sipò ak resous esansyèl nan yon konplo pou kidnape oswa touye andeyò Lèzetazini ki abouti nan lanmò; ak konplo pou touye oswa kidnape yon moun andeyò Lèzetazini.
Nouvo akizasyon ofisyèl la akize tou Christian Emmanuel Sanon de 64 lane, ansanm ak Bergmann de: konplo pou komèt enfraksyon kont ekspòtasyon; soumèt ak bay fo enfòmasyon sou ekspòtasyon; ak kontrebann jilè parabal sòti Lèzetazini pou Haiti. Kankou Solages, Vincent ak Rivera, yo transfere Sanon de detansyon Ayisyèn pase a detansyon Lèzetazini mwa pase.
Daprè dokiman jiridik yo, depi apeprè fevriye 2021 a jiyè 2021, LaFlorid di Sid te sèvi antan ke lokasyon santral pou planifikasyon ak finansman konplo pou dechouke Moïse de pouvwa a ak ranplase l pa yo moun ki ta itil tout bi politik ak enterè finansye konplotè yo.
Ortiz ak Intriago an Tèt Counter Terrorist Unit Federal Academy ak Counter Terrorist Unit Security (ki fè ansanm CTU), Veintemilla an Tèt de Worldwide Capital Lending Group (Worldwide). CTU ak Worldwide se yon konpayi etabli nan LaFlorid di Sid. Bergmann, ki te abite Tampa te gen lyen ak Sanon, yon sitwayen ak doub nasyonalite Ayisyen-Ameriken ki te gen aspirasyon politik an Ayitti, daprè akizasyon ofisyèl yo.
Jan yo pretann la, an avril 2021, Ortiz, Intriago, John, Solages ak Sanon reyini nan le Sid LaFlorid epi mete yo dakò sou yon plan: Ortiz ak Intriago ---atravè CTU--- tap sipòte dechoukay Prezidan Ayisyen Moïse epi ranplase li ak Sanon. An echanj, yon fwa Sanon ta vinn Prezidan, li tap akòde kontra avantaje ba CTU pou pwojè enfrastrikti an Ayiti, mizandisponibilite fòs sekirite, ak mizandisponibilite ekipman tip militè ba gouvènman Ayisyen dirije pa Sanon, daprè sa yo pretann.
Yo pretann ke vè lafen avril 2021, Veintemilla ak konpayi liya Worldwide, konsanti pou ede finanse koudeta a, kote yo te pwolonje liy kredi CTU a, a $175,000 ak voye lajan ba konplotè yo an Ayiti pou minisyon. Veintemilla te prevwa yon gwo benefis finansye atravè Worldwide si yo ta ranplase Prezidan Moïse, menm jan ak Ortiz ak Intriago te prevwa jwenn atravè CTU.
Planifikasyon ak depans adisyonèl kontinye ap dewoule nan le Sid Laflorid de avril a jwen 2021, daprè akizasyon ofisyèl yo. Pa egzanp, Ortiz ak Intriago, antan ke Tèt CTU, reklite yon gwoup dapeprè 20 Kolonbyen ak fòmasyon militè (enkli Rivera ak Palacios) pou bay Sanon Sekirite. Bergmann te vinn tounnen yon sipòtè ak envestisè ki ede finanse lòjman Kolonbyen yo an Ayiti, epi li travay ansanm ak Sanon ak Intriago pou ekspedye 20 jilè parabal CTU soti nan le Sid LaFlorid ale an Ayiti ak falsifikasyon egizans dokimantasyon pou ekspòtasyon.
An jwen 2021, plan a vinn chanje lè Ortiz, Intriago, Veintemilla ak zòt aparaman vinn reyalize ke Sanon pat gen ni kalifikasyon konstitisyonèl yo ni sipò popilè ansyen Jij Tribinal Siprèm Haiti a. Yo chavire sipò yo de Sanon pou Jij Lakou Siprèm la. Nouvo kandida sa a siyen yon kontra ak CTU epi Worldwide pou sèvi enterè finansye konpayi yo yon fwa li ta vinn Prezidan.
Yo pretann tou, ke an jwen 2021, konplo a pase de yon plan pou retire Moïse pa lafòs de pouvwa a, a asasine li. Espesyalman, konplo a komanse konsantre sou asasina aprè yon efò rate pou yo te kenbe Prezidan Moïse lè l tounnen de youn nan vwayaj li yo ak fouke l nan yon avyon voye l nan yon lòt kote andeyò peyi a.
Daprè akizasyon ofisyèl yo de LaFlorid di Sid, Ortiz ak Intriago jere ak dirije tout lòt manm konplo a- enkli Solages, yon Reprezantan CTU an Ayiti (ki te kowòdine ak Vincent epi Sanon) ansanm ak Kolonbyen ki te patisipe nan asasina a (atravè Riviera ak/oswa yon lòt lidè Kolonbyen an Ayiti ke yo te touye pandan li tap eseye chape de lye asasina a).
Yo pretann ke John, yon ansyen Senatè Ayisyen, ak Jaar ede sekirize zam yo ak founi lòt sipò.
Le 6 jiyè 2021, tout konplotè yo reyini nan yon kay tou pre rezidans Prezidan Moïse kote distribisyon zam afe ak ekipman te fèt, ak kote yo anonse ke misyon an se touye Prezidan Moīse, daprè sa yo swadizan di. Le 7 jiyè 2021, plizyè endividi rive deyò rezidans Prezidan Moïse la, kote kèk ladann yo te gen jilè parabal mak CTU sou yo. Yo rantre nan kay Prezidan a epi yo touye l.
Si yo ta deklare Ortiz, Intriago, Veintemilla, Solages, Vincent, Garcia, Palacios, Jaar ak John koupab yap kontanple yon santans a vi nan prizon. Bergmann ak Sanon ap kontanple 20 lane si yo ta deklare yo koupab. Yon Jij Tribinal Distri Federal va detèmine ki santans yap resevwa aprè li finn konsidere Direktiv Sou Santans Lézetazini ak lòt faktè de lalwa.
Se Pwokirè Distri Sid LaFlorid la, Markenzy Lapointe, Adjwen Komisè Gouvènman Jeneral Matthew G. Olsen de Seksyon Sekirite Depatman Lajistis la, Ajan Espesyal Responsab Entèrimè Maged Behman de Biwo Lokal FBI nan Miami, Ajan Espesyal Responsab ak Direktè Egzekitif Asosye Adjwen Envestigasyon Sekirite Nasyonal Anthony Salisbury ki fè anons la.
FBI ak HSI envestige dosye sa yo, ak bon jan asistans founi pa Depatman dEta, Biwo Alkòl, Taba, Zam afe ak Eksplozif, Biwo Endistri ak Sekirite, ak Sèvis Envestigasyon Kriminèl Depatman la Defans.
Adjwen Komisè Gouvènman Andrea Goldbarg ak Monica Castro de Distri Sid LaFlorid, Avoka Litij Frank Russo ak Jessica Fender de Seksyon Anti-Teworis Sekirite Nasyonal, ak Emma Ellenrieder de Seksyon Kont-entelijans ak Kontwòl Ekspò Sekirite Nasyonal kap jere dosye sa a. Adjwen Komisè Gouvènman Joshua Paster ap jere tout koze konfiskasyon byen yo. Biwo Afè Entènasyonal Depatman Lajistis te bay bon jan asistans.
Yon akizasyon ofisyèl se tou jis yon swadizan, tout akize prezime inosan jiskaske yo pwouve yo antò o dela de yon dout rezonab nan yon tribinal.
W ap jwenn tout lòt dokiman jidisyè ak enfòmasyon sou sit web Tribinal Distri pou Distri Sid LaFlorid sou www.flsd.uscourts.gov oswa sou http://pacer.flsd.uscourts.org.
Justice Department Investments in State Crisis Intervention Include More Than $1.7 million for West VirginiaRead the Press Release
CHARLESTON, W.Va. – United States Attorney Will Thompson announced today that the Justice Department has awarded $1,755,887 to West Virginia as part of the Byrne State Crisis Intervention Program. This investment in community safety is authorized by the Bipartisan Safer Communities Act of 2022, historic legislation to address and reduce gun violence.
The funding will help the state develop and staff a new advisory board known as the West Virginia Crisis Intervention Advisory Board, to inform and guide the state’s related gun violence reduction programs and initiatives. This board will include representatives from law enforcement, the community, courts, prosecution, behavioral health providers, victim services, and legal counsel.
“This award will support a collaborative partnership with an overall goal of reducing gun-related violence throughout the state, including the Southern District of West Virginia,” Thompson said. “The funding will help the advisory board assess such evidence-based strategies as extreme risk protection order (ERPO) programs, behavioral health deflection, and drug, mental health, and veterans’ treatment courts.”
The Justice and Community Services (JCS) Section of the West Virginia Division of Administrative Services (DAS) successfully applied for the award, as the State Administrative Agency (SAA) for criminal justice-related activities in the state. The award is part of an announced investment of over $231 million nationally that 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.
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.
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 are the latest effort from the Department of Justice’s Office of Justice Programs to implement this historic legislation.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia.
###
Justice Department Announces over $200 Million in Investments in State Crisis InterventionRead the Press Release
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.
Justice Department Announces over $200 Million in Investments in State Crisis InterventionRead the Press Release
PHOENIX, Ariz. – 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. The Department awarded $6,111,652 to the Arizona Criminal Justice Commission, which carries out various coordinating, monitoring, and reporting functions regarding the administration and management of criminal justice programs in Arizona. 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.
“We have too many firearms and not enough mental health services in America,” said United States Attorney Gary Restaino. “Our state and local social services agencies and law enforcement partners have lots of good ideas to intervene early and reduce gun violence. I look forward to seeing how the best practices developed through this grant can help to protect Arizona’s communities.”
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.
RELEASE NUMBER: 2023-020_ACJC-Grant-Recipient
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Justice Department Announces over $200 Million in Investments in State Crisis InterventionRead the Press Release
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.
As part of the grant awards, the Oklahoma Attorney General’s Office and the Oklahoma District Attorneys Council received $3,557,418. The funding could possibly be used for specialized court-based programs, such as drug, mental health, and veterans treatment courts, including those that specifically accept clients with firearms violations; behavioral health deflection for those at risk to themselves or others; funding for law enforcement agencies to safely secure, store, track and return relinquished guns; and more.
“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.”
“I am thankful for the more than $3.5 million dollar grant awarded to the Oklahoma Attorney General’s Office. The Byrne State Crisis Intervention Program funding will support vital, evidence-based state and local programs that help save lives by reducing and preventing gun violence in communities across Oklahoma,” said U.S. Attorney Clint Johnson.
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.
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.
Justice Department Announces over $200 Million in Investments in State Crisis InterventionRead the Press Release
WASHINGTON – 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.”
“Washington state is a leader in the development of Extreme Risk Protection Orders – and this DOJ funding will improve implementation and knowledge of the program in courts and communities across the state,” said U.S. Attorney Nick Brown. “Just today the shooting at Michigan State brings home to need to keep firearms away from those who are troubled and pose a risk to themselves or others. I’m pleased to see DOJ getting these funds out where they can make an impact.”
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.
Jody Lathrop Pleads Not Guilty to Mail, Wire and Tax Fraud ChargesRead the Press Release
Burlington, Vermont - The United States Attorney’s Office announced that Jody Lathrop, 53, of Bristol, pleaded not guilty today in United States District Court in Burlington to an indictment charging her with mail and wire fraud, tax evasion and aiding the preparation of falsified tax returns. U.S. Magistrate Judge Kevin J. Doyle released Lathrop on conditions pending trial, which has not been scheduled.
On January 24, 2023, a federal grand jury returned a nineteen-count indictment charging Lathrop with eleven counts of mail and wire fraud; four counts of personal tax evasion and four counts of aiding the preparation of false corporate tax returns. The indictment alleges that between 2014 and 2020, Lathrop served as office manager and bookkeeper for Claire Lathrop Band Mill, Inc., a logging and wood chipping business in Bristol, Vermont. The family business was owned jointly by Lathrop’s husband and her husband’s brother. As office manager, Lathrop handled the company’s accounts payables and receivables and maintained its books and records, including its accounting software. According to the indictment, between 2014 and 2020, Lathrop embezzled more than $400,000 by using company credit cards to make personal purchases of goods and services; by using company funds to pay the personal credit card obligations of Lathrop and other family members; and by using company money to pay for other personal expenses. The indictment accuses Lathrop of trying to conceal the embezzlement by miscoding the personal expenditures in the firm’s accounting system as legitimate business expenses.
The indictment further alleges that Lathrop aided and abetted the preparation and submission to the Internal Revenue Service of falsified corporate tax returns for tax years 2016-2019. It charges that Lathrop submitted to the firm’s corporate tax preparer false information that overstated the company’s legitimate business expenses because they included non-deductible personal expenses incurred by Lathrop. These false submissions caused the tax preparer unwittingly to claim over $400,000 in business expenses more than the company was legally entitled to. Finally, the indictment charges that Lathrop caused her personal tax preparer to submit falsified tax returns for 2016-2019 that significantly understated her income because they did not include the amounts she embezzled during each of those tax years. According to the indictment, Lathrop thereby evaded approximately $141,000 in personal income taxes. The indictment does not accuse Lathrop’s husband or either tax preparer of wrongdoing.The United States Attorney emphasizes that the charges in the indictment are merely accusations and that the defendant is presumed innocent unless and until she is proven guilty.
If convicted on the mail and wire fraud charges, Lathrop faces up to 20 years of imprisonment and a fine of up to $250,000 or twice the gross gain or loss. The tax evasion and aiding and abetting charges are punishable by up to five and three years of imprisonment, respectively, and fines of up to $100,000. The actual sentence would be determined with reference to federal sentencing guidelines.
This case was investigated by the Vermont office of the Internal Revenue Service Criminal Investigation (CI) and by Homeland Security Investigations.Lathrop is represented by Mark Kaplan, Esq. The prosecutors are Assistant U.S. Attorneys Kimberly Ang and Gregory Waples.
Jacksonville Man Pleads Guilty to COVID Relief Fraud and Money LaunderingRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Kenneth Steven Landers (57, Jacksonville) today pleaded guilty to wire fraud and engaging in an illegal monetary transaction. Landers faces a maximum penalty of 30 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, during 2020 and 2021, Landers applied for federally backed Paycheck Protection Program (PPP) loans ten times, requesting a total of $1,410,000. He submitted the applications on behalf of four different corporate entities that he controlled, specifically, the American Fallen Veterans Service Project Inc., Tire Empire LLC, Maypops LLC, and Florida United Inc. In support of each application, Landers electronically submitted false information and documents, including fictitious or altered Internal Revenue Service tax forms.
Notwithstanding Landers’s use of fraudulent documents, seven of his ten PPP loan applications were approved and funded in the total amount of $910,000, which was deposited into financial accounts that he controlled. Rather than use the loan proceeds exclusively to pay employees or for other allowable expenses under the PPP, Landers used funds for his personal benefit. For example, he paid off the mortgages on his home and a business property, purchased an 18kt gold Rolex watch, and bought a vintage Jaguar XKE Roadster. He also wrote checks to himself, transferred funds electronically to personal accounts, paid down personal debt, and made approximately $113,000 in cash withdrawals of funds traceable to PPP loan proceeds.
As part of his plea agreement, Landers agreed to forfeit $910,000, the proceeds of the wire fraud, as well as two pieces of real estate that he purchased or funded with the proceeds.
This case is being prosecuted as part of the Department of Justice’s prosecution of fraud schemes that exploit the CARES Act relief programs. The CARES Act is a federal law enacted in March 2020, designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. One of the two programs that were developed through CARES Act is the PPP. It provides funding to businesses through PPP loans for payroll costs, interest on mortgages, rent and utilities. PPP allows the interest and principal on loans to be forgiven if the business spends proceeds on certain expense items within a designated time and uses a certain percentage of the loan on payroll expenses. The Department of Justice remains vigilant in detecting, investigating, and prosecuting wrongdoing related to the crisis.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Mai Tran and Michael J. Coolican.
Insulation Contracting Firm Co-Owner Sentenced to Fifteen Months in Prison and Ordered to Pay more than $1 Million to Victims of Bid Rigging and FraudRead the Press Release
Michael S. Flynn was sentenced on Feb. 10 in Bridgeport, Connecticut to fifteen months’ imprisonment and restitution of $1,062,155 for his participation in bid-rigging and fraud schemes targeting public and private entities in Connecticut. This is the seventh sentencing arising out of the investigation into the insulation contracting industry.
According to a guilty plea entered on May 1, 2019, the defendant conspired with other insulation contractors to rig bids and engage in fraud on contracts for installing insulation around pipes and ducts on construction projects at universities, hospitals, and other public and private entities in Connecticut. According to public court filings, the victims of the scheme included the University of Connecticut, the City of Hartford, PepsiCo. Inc., Stamford Hospital, and Yale University. The conspiracy ran for nearly seven years, beginning as early as June 2011 and continuing until as late as March 2018. Six other individuals and companies have pled guilty to criminal conduct arising out of this investigation. Flynn was the last of the seven defendants sentenced.
“Bid rigging and fraud are serious crimes with serious consequences,” said Assistant Attorney General Jonathan Kanter of the Justice Department's Antitrust Division. “This sentence reflects the division’s commitment to seeking appropriate punishment for criminal antitrust violations and ensuring that victims of antitrust crimes are made whole.”
“This defendant’s collusive conduct victimized hospitals, universities and businesses throughout Connecticut,” said U.S. Attorney Vanessa Roberts Avery for the District of Connecticut. “This prison term and the penalties imposed on all individuals and companies involved in this scheme should deter others from engaging in such criminal, anti-competitive behavior. I thank the FBI, DCIS, and the Antitrust Division for their efforts in bringing these perpetrators to justice.”
“This fraud and deception of the public and commercial consumer has ended with this sentence,” said Acting Special Agent in Charge Jean Pierre Njock of the FBI New Haven Field Office. “We at the FBI along with our law enforcement partners will continue to pursue those that choose to engage in antitrust crimes.”
"This sentencing is the result of a successful joint effort to ensure that the markets for services provided to the Department of Defense (DoD) are legitimate and competitive," stated Special Agent in Charge Patrick J. Hegarty of the Northeast Field Office for the Defense Criminal Investigative Service (DCIS). “The DCIS, the law enforcement arm of the DoD Office of Inspector General, is committed to investigating and prosecuting companies that corrupt the DoD procurement system.”
Flynn previously pleaded guilty to one count of bid rigging under Section 1 of the Sherman Antitrust Act and one count of conspiracy to commit wire fraud. Flynn was also ordered to pay a special assessment of $200.
This investigation was conducted by the Antitrust Division’s New York Office, the U.S. Attorney’s Office for the District of Connecticut, the FBI’s New Haven Division, and the DCIS’s New Haven Resident Agency.
In November 2019, the Department of Justice created the PCSF, a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant, and program funding at all levels of government – federal, state and local. For more information, visit https://www.justice.gov/procurement-collusion-strike-force.
Indianapolis Man Indicted for Making False Statements to Federal Officers About the Armed Robbery of a Postal WorkerRead the Press Release
INDIANAPOLIS – Carl Davis, 24, of Indianapolis, has been indicted by a federal grand jury for making false statements to the United States Postal Inspection Service. The indictment was unsealed on February 13, 2022, following Davis’s arrest and initial appearance.
According to court documents, on April 8, 2022, Carl Davis falsely claimed to members of the United States Postal Inspection Service that he had witnessed the April 1, 2022, armed robbery of a postal worker. Davis provided the name of an individual who he claimed was the robber and stated that the alleged robber later confessed to Davis that he had committed the robbery. At the time Davis made these statements to the U.S. Postal Inspection Service, he knew they were false because he did not witness the robbery and the person Davis claimed was responsible never confessed to Davis.
If convicted of making false statements, Davis faces up to five years in prison, a fine of up to $250,000, and up to three years of supervised release by the U.S. Probation Office. A federal district court judge will determine the actual sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Rodney Hopkins, Inspector-in-Charge, U.S. Postal Inspection Service Detroit Division, made the announcement.
This case was a result of an investigation led by the U.S. Postal Inspection Service. U.S. Attorney Myers thanked Assistant U.S. Attorney Adam Eakman, who is prosecuting this 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.
Idaho I.T. Professional Sentenced to 28 Months in Prison for Insider Trading SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that DAVID STONE was sentenced by U.S. District Judge Mary Kay Vyskocil to 28 months in prison for his participation in an insider trading scheme. STONE previously pled guilty to one count of securities fraud.
U.S. Attorney Damian Williams said: “David Stone unlawfully accessed pre-publication stock picks from an investment advice service so that he could beat the markets and generate millions in trading profits for himself. Today’s sentence reflects that this Office will find and prosecute those who seek to profit at the expense of the integrity and fairness of our financial markets.”
According to the allegations in the Information and statements made in public court proceedings and filings:
From 2020 up to at least March 2022, DAVID STONE exploited market-moving stock recommendations made by an investment recommendation service (“Advisor-1”) before those recommendations were released to paying subscribers. STONE, an I.T. professional, accessed Advisor-1’s computing system using log-in credentials he obtained without authorization and used his improperly obtained access to view information relating to Advisor-1’s recommendations before they were announced to Advisor-1’s paying subscribers.
Advisor-1’s stock recommendations typically lead to higher closing prices for the recommended stock as compared to the prior day’s closing price. By trading on those recommendations before they were announced, STONE was able to obtain significant profits unavailable to other market participants. In fact, across all the brokerage accounts he traded in, STONE realized gains of at least $4.8 million.
In addition to his own trading, STONE supplied these stolen trading tips to another person (“Tippee-1”). From in or about January 2021 up to and including in or about March 2022, on approximately 45 different days, STONE sent emails to Tippee-1 providing stock names and/or ticker symbols ahead of Advisor-1 announcements of stock recommendations to its paying subscribers. A brokerage account associated with Tippee-1 traded ahead of Advisor-1’s recommendations on more than a dozen occasions. As a result of that trading, Tippee-1 profited more than approximately $2.7 million.
* * *
In addition to the prison sentence, DAVID STONE, 37, of Nampa, Idaho, was sentenced to three years of supervised release and ordered to forfeit $2,883,800 and particular shares of stock, to pay $344,000 in restitution to Advisor-1, and to pay a $20,000 fine.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation. Mr. Williams also thanked the U.S. Securities and Exchange Commission, which has filed a parallel civil action.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Samuel P. Rothschild and Andrew Thomas are in charge of the prosecution.
Idaho Falls Man Sentenced to over 15 Years in Federal Prison for Attempted Methamphetamine DistributionRead the Press Release
POCATELLO – Jacob James Martinez, 33, of Idaho Falls, was sentenced to federal prison for attempted possession with the intent to distribute methamphetamine, U.S. Attorney Josh Hurwit announced today. Chief U.S. District Judge David C. Nye sentenced Martinez to 188 months in federal prison.
According to court records, on September 29, 2020, Idaho State Police made a traffic stop of an individual found to be in possession of five pounds of methamphetamine. That individual informed law enforcement that he was going to deliver the methamphetamine to three individuals in southeast Idaho, naming Martinez as the intended recipient of two pounds. The individual had a drug ledger that showed Martinez owing $5,950 in past drug debts. Idaho State Police identified Martinez and stopped him at the location he was set to receive the two pounds of methamphetamine. Martinez was arrested on an outstanding arrest warrant. Law enforcement searched Martinez’s vehicle and found him to be in possession of $6,280 in United States currency, a loaded Ruger 9mm handgun, a drug pipe, and baggies containing methamphetamine and marijuana. Martinez was prohibited from possessing a firearm at the time of his arrest.
U.S. Attorney Hurwit commended the Idaho State Police, Drug Enforcement Administration, and the BADGES/HIDTA Taskforce for their collaborative work on the case.
###
Girls’ Softball Coach Sentenced to 151 Months in Prison for Transportation of a Minor with Intent to Engage in Criminal Sexual ActivityRead the Press Release
SAN JUAN, Puerto Rico – Dennis Cotto-Alvarado, 45 years old, of Ponce, was sentenced to 151 months (12 years and seven months) in prison and 15 years of supervised release for transporting a female minor with the intent to engage criminal sexual conduct in violation of Title 18, United States Code, Section 2423(a). The FBI investigated the complaint with the collaboration of the Puerto Rico Police Bureau and the Puerto Rico Department of Justice.
According to court documents, Cotto-Alvarado sexually abused a female minor for two years, from on or about June 2017 through February 2019, starting when she was approximately 12 years old. The defendant was a coach for the minor’s softball team and a father figure to her.
“Investigating and prosecuting those who exploit and sexually abuse minors is and will always be a top priority for the Department of Justice,” said W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. “I commend the prosecution team and our law enforcement partners who worked tirelessly to seek justice for the victim and hold the defendant accountable for his crimes.”
“The FBI is committed to protecting our most innocent and helpless victims,” said Joseph González, Special Agent in Charge of the FBI San Juan Field Office. “This sentence highlights the efforts by the US Attorney’s Office, who worked alongside the FBI, to bring the fullest brand of justice to the victims in this case. We remain vigilant and urge anyone who believes they have witnessed a crime such as this to call 787-987-6500 or leave an anonymous tip by visiting https://tips.fbi.gov/. Our children are counting on us.”
Assistant U.S. Attorney Ginette Milanés prosecuted the case.
###
Four Florida Men Arrested in Plot to Kill Haitian President, Grand Jury Returns Indictment Against 11Read the Press Release
MIAMI – This morning, U.S. federal law enforcement arrested a U.S. citizen and two legal permanent residents living in South Florida and one U.S. citizen living in Tampa pursuant to criminal complaints on charges relating to their participation in the events leading to the July 7, 2021, assassination of President Jovenel Moise of Haiti. Following the arrests, a South Florida grand jury returned a third superseding indictment charging these four individuals, along with seven others previously arrested and charged in the U.S., for their alleged roles in the plot.
The four men arrested in Florida today are: Arcangel Pretel Ortiz, 50, a Colombian national and U.S. permanent resident of Miami; Antonio Intriago 59, a Venezuelan national and U.S. permanent resident of Miami; Walter Veintemilla, 54, of Weston; and Frederick Bergmann, 64, of Tampa.
They are scheduled for initial federal court appearances today in Miami before U.S. Magistrate Judge Lauren F. Louis.
With today’s arrests, 11 people now face charges in the Southern District of Florida in connection with the assassination. The third superseding indictment charges Ortiz, Intriago, and Veintemilla as well as James Solages, 37, Joseph Vincent, 57, and German Alejandro Rivera Garcia, 44, who were transferred into U.S. custody last month; Mario Antonio Palacios Palacios, 43, arrested January 2022; Rodolphe Jaar, 49, arrested January 2022; and Joseph Joel John, 51, arrested May 2022. These defendants—Ortiz, Intriago, Veintemilla, Solages, Vincent, Rivera, Palacios, Jaar, and John—are charged with conspiracy to provide material support and resources to a conspiracy to kidnap or kill outside the United States, resulting in death; providing material support and resources to a conspiracy to kidnap or kill outside the United States, resulting in death; and conspiracy to kill or kidnap a person outside the United States.
The superseding indictment additionally charges Christian Emmanuel Sanon, 64, and Bergmann with: conspiracy to commit export violations; submitting false and misleading export information; and smuggling ballistic vests from the United States to Haiti. As with Solages, Vincent, and Rivera, Sanon was transferred from Haitian custody into U.S. custody last month.
According to court documents, from at least February 2021 to July 2021, South Florida served as a central location for planning and financing the plot to oust President Moïse from power and replace him with someone who would serve the coconspirators’ political goals and financial interests.
Ortiz and Intriago are principals of Counter Terrorist Unit Federal Academy and Counter Terrorist Unit Security (collectively, CTU), and Veintemilla is a principal of Worldwide Capital Lending Group (Worldwide). CTU and Worldwide are South Florida companies. Bergmann, who lived in Tampa, had ties to Sanon, a dual Haitian-American citizen who held political aspirations in Haiti, say the charging documents.
As alleged, in April 2021, Ortiz, Intriago, John, Solages and Sanon met in South Florida and agreed to a plan: Ortiz and Intriago – through CTU – would support ousting Haitian President Moïse and replacing him with Sanon. In exchange, once Sanon became President, he would award lucrative contracts to CTU for infrastructure projects in Haiti, the provision of security forces, and the provision of military type equipment to a Sanon-led Haitian government, according to the allegations.
It is alleged that in late April 2021, Veintemilla and his company Worldwide, agreed to help finance the coup d’etat, extending a $175,000 line of credit to CTU and sending money to co-conspirators in Haiti to purchase ammunition. Veintemilla expected to reap significant financial benefits through Worldwide should President Moise be replaced as president, as did Ortiz and Intriago through CTU.
Further planning and spending continued in South Florida from April to June 2021, according to the charging documents. For example, Ortiz and Intriago, as principals of CTU, retained a group of about 20 Colombian nationals with military training (including Rivera and Palacios) to provide security to Sanon. Bergmann became a supporter and investor who helped fund the Colombians’ lodging in Haiti and worked with Sanon and Intriago to ship 20 CTU-branded ballistic vests from South Florida to Haiti by falsifying the required export documentation.
By June 2021, the plan evolved as Ortiz, Intriago, Veintemilla and others apparently realized that Sanon had neither the constitutional qualifications nor the popular support of the Haitian people to become President. They shifted their support from Sanon to a former Haitian Supreme Court judge. This new candidate contracted with CTU and Worldwide to serve the companies’ financial interests upon becoming President.
It is also alleged that by June 2021, the plot progressed from forcibly removing Moïse from power to assassinating him. In particular, the conspiracy began to focus on assassination after an unsuccessful effort to seize President Moïse on a return trip to Haiti and spirit him away by airplane to a location outside the country.
According to the charging documents, from South Florida, Ortiz and Intriago managed and directed other members of the conspiracy – including Solages, a CTU representative in Haiti (who coordinated with Vincent and Sanon) and the Colombian nationals who participated in the assassination (through Rivera and/or another Colombian leader in Haiti who was killed while attempting to leave the scene of the assassination).
It is alleged that John, a former Haitian Senator, and Jaar both helped secure weapons and provided other support.
On July 6, 2021, co-conspirators met at a house near President Moïse’s residence, where firearms and equipment were distributed, and it was announced that the mission was to kill President Moïse, according to the allegations. On July 7, 2021, several individuals arrived outside President Moïse’s residence, some of whom were wearing CTU-branded ballistic vests. They entered the President’s home and killed him.
If convicted, Ortiz, Intriago, Veintemilla, Solages, Vincent, Garcia, Palacios, Jaar, and John face up to life in prison. Bergmann and Sanon face up to 20 years, if convicted. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, Acting Special Agent in Charge Maged Behnam of the FBI Miami Field Office, and Acting Deputy Executive Associate Director for Homeland Security Investigations Anthony Salisbury.
FBI and HSI investigated these cases, with valuable assistance provided by Department of State, Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Department of Commerce, Bureau of Industry and Security Office of Export Enforcement, and the Department of Defense’s Criminal Investigative Service.
Assistant U.S. Attorneys Andrea Goldbarg and Monica Castro of the Southern District of Florida, Trial Attorneys Frank Russo and Jessica Fender of the National Security Division’s Counterterrorism Section, and Emma Ellenrieder of the National Security Division’s Counterintelligence and Export Control Section are prosecuting this case. Assistant U.S. Attorney Joshua Paster is handling asset forfeiture. The Justice Department’s Office of International Affairs provided valuable assistance.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
###
Four Florida Men Arrested in Plot to Kill Haitian President, Grand Jury Returns Indictment Against 11Read the Press Release
This morning, U.S. federal law enforcement arrested two U.S. citizens and a legal permanent resident living in South Florida and one U.S. citizen living in Tampa pursuant to criminal complaints on charges relating to their participation in the events leading to the July 7, 2021, assassination of President Jovenel Moïse of Haiti. Following the arrests, a South Florida grand jury returned a third superseding indictment charging these four individuals, along with seven others previously arrested and charged in the United States for their alleged roles in the plot.
The four men arrested in Florida today are: Arcangel Pretel Ortiz, 50, a Colombian national and U.S. permanent resident of Miami; Antonio Intriago 59, a Venezuelan-American of Miami; Walter Veintemilla, 54, of Weston; and Frederick Bergmann, 64, of Tampa.
They made their initial federal court appearances today at 2:00 p.m. in Miami before U.S. Magistrate Judge Lauren Louis.
“Today, individuals who we allege participated in the planning, financing, and orchestration of the assassination of Haitian President Jovenel Moïse will face justice in an American courtroom,” said Attorney General Merrick B. Garland. “The court documents unsealed today outline an alleged plan by the defendants, some of whom were operating within the United States, to remove President Moise from office by either killing or kidnapping him in order to replace him with a candidate who would serve their political goals and financial interests. The Justice Department will not tolerate individuals plotting violent attacks from U.S. soil that undermine the rule of law abroad.”
“Today’s arrests show the FBI’s commitment to vigorously pursue the individuals involved in the brazen plot to kidnap or kill the former Haitian president,” said FBI Director Christopher Wray. “As demonstrated by this case, the men and women of the FBI will work tirelessly across borders and oceans to uphold the rule of law. The FBI will not tolerate these acts of violence perpetrated abroad against our international partners.”
“Today marks the culmination of a nearly two-year investigation into the assassination of President Moïse. Homeland Security Investigations special agents leveraged their authority to further investigative efforts with whole-of-government partners to bring justice to the Moïse family and people of Haiti,” said Deputy Secretary John K. Tien of the Department of Homeland Security. “The Department of Homeland Security is deeply committed to combating transnational organized crime. To those engaged in illicit activities, let today stand as a reminder that we remain relentless and vigilant in holding you accountable and dismantling your unlawful operations.”
With today’s arrests, 11 people now face charges in the Southern District of Florida in connection with the assassination. The third superseding indictment charges Ortiz, Intriago, and Veintemilla as well as James Solages, 37, Joseph Vincent, 57, and German Alejandro Rivera Garcia, 44, who were transferred into U.S. custody last month; Mario Antonio Palacios Palacios, 43, arrested January 2022; Rodolphe Jaar, 49, arrested January 2022; and Joseph Joel John, 51, arrested May 2022. These defendants – Ortiz, Intriago, Veintemilla, Solages, Vincent, Rivera, Palacios, Jaar and John – are charged with conspiracy to provide material support and resources to a conspiracy to kidnap or kill outside the United States, resulting in death; providing material support and resources to a conspiracy to kidnap or kill outside the United States, resulting in death; and conspiracy to kill or kidnap a person outside the United States.
The superseding indictment additionally charges Christian Emmanuel Sanon, 64, and Bergmann with conspiracy to commit export violations; submitting false and misleading export information; and smuggling ballistic vests from the United States to Haiti. As with Solages, Vincent and Rivera, Sanon was transferred from Haitian custody into U.S. custody last month.
“A central tenet of every democracy in the world is that those who want to change their government, must do so peacefully — through ballots, not bullets. These defendants thought they could secure immunity for their crimes,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “We will now deliver justice in a U.S. courtroom.”
“Haiti is no stranger to hardship and suffering. While most human beings would consider events that destroy hundreds of thousands of lives, homes, schools and infrastructure tragedies, there are others who consider them opportunities to gain money and power,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “When greed and ambition lead to violations of U.S. law, we will prosecute.”
“Homeland Security Investigations (HSI) leveraged its expertise in investigating transnational crime to identify the international network of co-conspirators who allegedly sought to overthrow the Haitian government through violence,” said Deputy Director and Senior Official Performing the Duties of the Director Tae D. Johnson of the U.S. Immigration and Customs Enforcement. “HSI continues to work with domestic and international law enforcement partners to investigate transnational criminal organizations that pose a significant threat to global security.”
According to court documents, from at least February 2021 to July 2021, South Florida served as a central location for planning and financing the plot to oust President Moïse from power and replace him with someone who would serve the coconspirators’ political goals and financial interests.
Ortiz and Intriago are principals of Counter Terrorist Unit Federal Academy and Counter Terrorist Unit Security (collectively, CTU), and Veintemilla is a principal of Worldwide Capital Lending Group (Worldwide). CTU and Worldwide are South Florida companies. According to charging documents, Bergmann, who lived in Tampa, had ties to Sanon, a dual Haitian-American citizen who held political aspirations in Haiti.
As alleged, in April 2021, Ortiz, Intriago, John, Solages and Sanon met in South Florida and agreed to a plan: Ortiz and Intriago – through CTU – would support ousting Haitian President Moïse and replacing him with Sanon. In exchange, once Sanon became President, he would award lucrative contracts to CTU for infrastructure projects in Haiti, the provision of security forces, and the provision of military type equipment to a Sanon-led Haitian government, according to the allegations.
It is alleged that in late April 2021, Veintemilla and his company Worldwide, agreed to help finance the coup d’etat, extending a $175,000 line of credit to CTU and sending money to co-conspirators in Haiti to purchase ammunition. Veintemilla expected to reap significant financial benefits through Worldwide should President Moïse be replaced as president, as did Ortiz and Intriago through CTU.
Further planning and spending continued in South Florida from April to June 2021, according to the charging documents. For example, Ortiz and Intriago, as principals of CTU, retained a group of about 20 Colombian nationals with military training (including Rivera and Palacios) to provide security to Sanon. Bergmann became a supporter and investor who helped fund the Colombians’ lodging in Haiti and worked with Sanon and Intriago to ship 20 CTU-branded ballistic vests from South Florida to Haiti by falsifying the required export documentation.
By June 2021, the plan evolved as Ortiz, Intriago, Veintemilla and others apparently realized that Sanon had neither the constitutional qualifications nor the popular support of the Haitian people to become President. They shifted their support from Sanon to a former Haitian Supreme Court judge. This new candidate contracted with CTU and Worldwide to serve the companies’ financial interests upon becoming President.
It is also alleged that by June 2021, the plot progressed from forcibly removing Moïse from power to assassinating him. In particular, the conspiracy began to focus on assassination after an unsuccessful effort to seize President Moïse on a return trip to Haiti and spirit him away by airplane to a location outside the country.
According to the charging documents, from South Florida, Ortiz and Intriago managed and directed other members of the conspiracy – including Solages, a CTU representative in Haiti (who coordinated with Vincent and Sanon) and the Colombian nationals who participated in the assassination (through Rivera and/or another Colombian leader in Haiti who was killed while attempting to leave the scene of the assassination).
It is alleged that John, a former Haitian Senator, and Jaar both helped secure weapons and provided other support.
On July 6, 2021, co-conspirators met at a house near President Moïse’s residence, where firearms and equipment were distributed, and it was announced that the mission was to kill President Moïse, according to the allegations. On July 7, 2021, several individuals arrived outside President Moïse’s residence, some of whom were wearing CTU-branded ballistic vests. They entered the President’s home and killed him.
If convicted, Ortiz, Intriago, Veintemilla, Solages, Vincent, Garcia, Palacios, Jaar and John face up to life in prison. Bergmann and Sanon face up to 20 years if convicted. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Acting Special Agent in Charge Maged Behnam of the FBI Miami Field Office, and Acting Special Agent in Charge Michael E. Buckley of HSI Miami made the announcement.
The FBI and HSI investigated these cases, with valuable assistance provided by the Department of State; Bureau of Alcohol, Tobacco, Firearms and Explosives; the Department of Commerce, Bureau of Industry and Security Office of Export Enforcement; and the Department of Defense’s Criminal Investigative Service.
Assistant U.S. Attorneys Andrea Goldbarg and Monica Castro for the Southern District of Florida, Trial Attorneys Frank Russo and Jessica Fender of the National Security Division’s Counterterrorism Section, and Emma Ellenrieder of the National Security Division’s Counterintelligence and Export Control Section are prosecuting this case. Assistant U.S. Attorney Joshua Paster is handling asset forfeiture. The Justice Department’s Office of International Affairs provided valuable assistance.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Union Treasurer Charged with Fraud and EmbezzlementRead the Press Release
PITTSBURGH, PA - A resident of Chisago City, Minnesota,, formerly of Western Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of embezzlement and fraud in violation of federal labor laws, United States Attorney Cindy K. Chung announced today.
The two-count Indictment named Donald W. Byers, age 48, as the sole defendant.
According to the Indictment, Byers, who is the former Treasurer for Division 287 of the Brotherhood of Locomotive Engineers and Trainmen (BLET) which is located in Ashville, Pennsylvania, embezzled over $45,000 from union funds, and created fraudulent records to conceal his embezzlement.
The law provides for a maximum total sentence of not more than five years in prison, a fine of $10,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The U.S. Department of Labor, Office of Labor-Management Standards conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Owner and General Manager of Oregon Dump Truck and Concrete Companies Sentenced to Federal Prison for Failing to Pay Employment TaxesRead the Press Release
PORTLAND, Ore.—The former owner and general manager of dump truck hauling and concrete companies based in Damascus, Oregon, was sentenced to federal prison today for willfully failing to pay employment taxes despite withholding them from employee paychecks.
Rebekah Joy Williams, 44, a resident of Damascus, was sentenced to eight months in federal prison and three years’ supervised release. She was also ordered to pay $725,492 in restitution to the IRS.
According to court documents, until the third and fourth quarters of 2017, Williams owned and operated Anbasa Transport LLC and Kelaye Conrete LLC, commercial dump truck hauling and concrete companies registered in Oregon that formerly operated in both Oregon and Washington State. As the sole owner and general manager of both companies, Williams was responsible for collecting, reporting, and paying federal income, Medicare, and Social Security taxes (also known as FICA taxes) on behalf of her employees.
Over at least a three-year period, from 2015-2017, Williams withheld these taxes from her employees’ paychecks and provided them with paystubs reflecting the withholdings. Despite doing so, IRS records showed that Williams made no payroll tax payments on behalf of either company from the third quarter of 2015 through the fourth quarter of 2017. In total, Williams failed to pay approximately $112,257 in employment taxes to the IRS.
In 2016, Williams hired an accountant to address her employment tax issues, but hid documentation the accountant needed to complete and file required payroll tax returns. Williams further lied to the accountant, claiming her companies’ payroll records had been damaged when a neighboring business caught fire. The accountant later told investigators that Williams was financially savvy and aware of her responsibility to pay payroll taxes.
Williams opened accounts at several different banks to hide her business proceeds from the IRS. Shortly after meeting with an IRS Revenue Officer in 2015, Williams began churning bank accounts, opening and closing accounts every 12 to 18 months. Meanwhile, Williams spent lavishly from both her personal and business bank accounts. She spent the payroll taxes withheld from her employees to fund vacations, pay her children’s private school tuition, attend professional sporting events, and fund an upscale lifestyle.
On October 19, 2021, a federal grand jury in Portland returned a 19-count indictment charging Williams with willfully failing to collect or pay over employment taxes. On November 14, 2022, she pleaded guilty.
This case was investigated by IRS-Criminal Investigation. It was prosecuted by Claire M. Fay, Assistant U.S. Attorney for the District of Oregon.
Former Memphis, Tennessee, Police Officer Pleads Guilty to a Civil Rights Violation for Assaulting a Man in his CustodyRead the Press Release
Memphis, TN – A former Memphis Police Department (MPD) officer pleaded guilty in federal court in the Western District of Tennessee to one felony count of deprivation of rights under color of law for assaulting an arrestee in January 2021.
According to the defendant’s admissions at the plea hearing, Armando Bustamante was working as an MPD officer in January 2021. While on duty, Bustamante struck a man in the head using his service weapon and his hands, without legal justification. Bustamante’s assault caused bodily injury to the man.
“This former Memphis police officer abused his authority by violently assaulting a man without basis,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Officers who willfully use excessive force without basis are not above the law and will be held accountable. Whether in Memphis or any corner of the country, the Justice Department stands ready to vigorously prosecute those law enforcement officers who defy the Constitution and violate people’s civil rights.”
“The United States cares deeply about violations of civil rights, here in Memphis and throughout America,” said U.S. Attorney Kevin Ritz for the Western District of Tennessee. “The overwhelming majority of police officers do their jobs honorably and lawfully. As this case shows, we will not hesitate to hold those who violate civil rights laws to account.”
“This plea is the result of the efforts of law enforcement to ensure that any officer who violates the civil rights of those they are sworn to protect is brought to justice,” said Douglas S. DePodesta, Acting Special Agent in Charge of the Memphis Field Office of the Federal Bureau of Investigation. “The FBI is committed to protecting the civil rights of all people and wearing a badge does not make one above the law."
Bustamante faces a maximum penalty of up to 10 years in prison and three years of supervised release. A sentencing date has been set for June 15.
Assistant Attorney General Clarke, U.S. Attorney Ritz, Assistant Director Quesada and Special Agent in Charge DePodesta made the announcement.
The FBI Memphis Field Office investigated the case.
Assistant U.S. Attorney David Pritchard for the Western District of Tennessee and Trial Attorney Nikhil Ramnaney of the Civil Rights Division’s Criminal Section are prosecuting the case.
###
For more information, please contact Public Information Officer Cherri Green at (901) 544-4231 or [email protected]. Follow @WDTNNews on Twitter for office news and updates.
Former Memphis, Tennessee, Police Officer Pleads Guilty to a Civil Rights Violation for Assaulting a Man in his CustodyRead the Press Release
A former Memphis Police Department (MPD) officer pleaded guilty in federal court in the Western District of Tennessee to one felony count of deprivation of rights under color of law for assaulting an arrestee in January 2021.
According to the defendant’s admissions at the plea hearing, Armando Bustamante was working as an MPD officer in January 2021. While on duty, Bustamante struck a man in the head using his service weapon and his hands, without legal justification. Bustamante’s assault caused bodily injury to the man.
“This former Memphis police officer abused his authority by violently assaulting a man without basis,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Officers who willfully use excessive force without basis are not above the law and will be held accountable. Whether in Memphis or any corner of the country, the Justice Department stands ready to vigorously prosecute those law enforcement officers who defy the Constitution and violate people’s civil rights.”
“The United States cares deeply about violations of civil rights, here in Memphis and throughout America,” said U.S. Attorney Kevin Ritz for the Western District of Tennessee. “The overwhelming majority of police officers do their jobs honorably and lawfully. As this case shows, we will not hesitate to hold those who violate civil rights laws to account.”
“There is no place in law enforcement for officers who use excessive force,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “Civil rights are at the core of the FBI’s mission, and we are dedicated to ensuring that those who are sworn to protect their communities do so without violating the civil rights of those they serve.”
“This plea is the result of the efforts of law enforcement to ensure that any officer who violates the civil rights of those they are sworn to protect is brought to justice,” said Acting Special Agent in Charge Douglas S. DePodesta of the FBI Memphis Field Office. “The FBI is committed to protecting the civil rights of all people and wearing a badge does not make one above the law."
Bustamante faces a maximum penalty of up to 10 years in prison and three years of supervised release. A sentencing date has been set for June 15.
Assistant Attorney General Clarke, U.S. Attorney Ritz, Assistant Director Quesada and Special Agent in Charge DePodesta made the announcement.
The FBI Memphis Field Office investigated the case.
Assistant U.S. Attorney David Pritchard for the Western District of Tennessee and Trial Attorney Nikhil Ramnaney of the Civil Rights Division’s Criminal Section are prosecuting the case.
Former Founder and CEO of Supply-Chain Logistics Company Charged with $20 Million Wire FraudRead the Press Release
The founder of Slync, a supply-chain management software startup, has been charged for misappropriating $20 million from the company, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Christopher Kirchner, 35, was charged via criminal complaint with wire fraud and arrested at his home in Westlake early Tuesday morning. He made his initial appearance before U.S. Magistrate Judge Hal R. Ray, Jr. later in the day.
“This defendant flaunted his apparent wealth while allegedly diverting millions from company coffers into his private bank account,” said U.S. Attorney Leigha Simonton. “Slync investors and employees are understandably outraged, and we sympathize. We look forward to holding Mr. Kirchner accountable in federal court.”
“As the criminal complaint alleges, Mr. Kirchner used his position as a CEO to defraud investors and the company he worked for by diverting funds for his personal benefit. He did this to fund a lavish lifestyle at the expense of those that trusted him to act responsibly and ethically,” said FBI Dallas Acting Special Agent in Charge James J. Dwyer. “The FBI will remain persistent in our efforts to hold individuals accountable that commit such brazen acts of corporate greed.”
According to the complaint, Mr. Kirchner – who served as Slync’s CEO from 2017 until 2022, when he was suspended by the Board of Directors due to allegations of misconduct – allegedly wired $20 million from Slync’s bank account to his personal checking account.
In text messages, Mr. Kirchner told an employee that he was transferring money received from an investor into “an investment account” and a “chase” account. He then instructed the employee to approve the wires. But Mr. Kirchner did not transfer money into an “investment account” or a “chase” account. He instead transferred $20 million of Slync funds into his personal account.
Meanwhile, in emails, Mr. Kirchner told private bankers that the $20 million represented “a distribution from my company.” Slync’s Board of Directors never authorized such a distribution.
Mr. Kirchner allegedly used the $20 million – which amounted to roughly 40 percent of $50 million raised from private equity investors and venture capital groups during the company’s Series B investment round – to fund a lavish lifestyle, including a $16 million private Gulfstream jet and a $495,000 luxury suite at a local sports stadium.
A criminal complaint is merely an allegation of wrongdoing, not evidence. Like all defendants, Mr. Kirchner is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to 20 years in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorneys Joshua Detzky, John de la Garza, and Blake Ellison are prosecuting the case.
Federal Jury Returns Guilty Verdict Against Sabine Parish Man for Making ThreatsRead the Press Release
SHREVEPORT, La. - United States Attorney Brandon B. Brown announced that a federal jury has returned guilty verdicts against Aaron Wade Knight, 31, of Noble, Louisiana, on two counts of making threats of violence against employees with the Sabine Medical Center (SMC) and the Veterans Administration (VA). United States District Judge Elizabeth E. Foote presided over the trial.
The two counts in this case stem from incidents which both occurred on June 1, 2022, when Knight made threats of violence against employees of the SMC in Many, Louisiana, and the VA in Shreveport and Alexandria. The first incident occurred in the morning hours of June 1 when Knight, who was living in Virginia at the time, called the VA hot line in Alexandria and spoke to a nurse who was working the call center. Knight proceeded to tell the nurse that he was upset about a bill he had received for a hospital visit a few weeks earlier at the SMC. As the conversation continued, Knight became more agitated and made the comment to her, “What do I need to do, do I need to blow up this place to get some help?” Out of concern about the threatening comments Knight made to her, the nurse contacted a patient advocate with the VA in Shreveport who had worked with Knight before.
The patient advocate then contacted Knight out of concern about the comments he had made moments earlier to the nurse. During the phone call, Knight became angry with the patient advocate and began to shout and made the following threatening statement to her, “do I need to go up there and shoot these motherf****rs in the f***ing face.”
Knight faces up to 5 years in prison for each count, three years of supervised release, and a fine of up to $250,000. Sentencing has been set for June 26, 2023, at 1:15 p.m.
The case was investigated by the Federal Bureau of Investigation and Many Police Department and prosecuted by Assistant U.S. Attorneys J. Aaron Crawford and Andrew Weber.
# # #
Federal Indictment Returned Charging Maryland Woman and Florida Man for Conspiring to Destroy Energy FacilitiesRead the Press Release
Baltimore, Maryland – A federal grand jury in Maryland today returned an indictment charging Sarah Beth Clendaniel, age 34, of Catonsville, Maryland, and Brandon Clint Russell, age, 27, of Orlando, Florida, with conspiracy to destroy an energy facility. The defendants have been detained since their arrest on February 3, 2023, on related charges.
The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Thomas J. Sobocinski, of the Federal Bureau of Investigation, Baltimore Field Office.
The single-count indictment alleges that Russell and Clendaniel conspired to willfully damage the property of an energy facility, causing damage exceeding $100,000 and causing a significant interruption and impairment of a function of the facility.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings. If convicted, Russell and Clendaniel each face a maximum sentence of 20 years in federal prison for conspiracy to damage an energy facility. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Erek L. Barron commended the Baltimore FBI Field Office for its outstanding work in the investigation and praised the Joint Terrorism Task Force, the Maryland State Police, the Baltimore County Police Department and the Tampa, Washington, and New York Field Offices of the FBI for their valuable assistance. Mr. Barron also thanked the Department of Justice’s National Security Division and the United States Attorney’s Office for the Middle District of Florida for their assistance. Mr. Barron thanked Assistant U.S. Attorney Kathleen O. Gavin, who is prosecuting the case and thanked Assistant U.S. Attorney Christina Hoffman for her assistance. For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach. To report a Maryland-based hate crime, contact the FBI Baltimore field office at (410) 265-8080 or www.tips.fbi.gov.
# # #