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6 February 2023
Hyattsville Man Pleads Guilty to Scheme to Fraudulently Obtain at Least $1.3 Million in COVID-19 CARES Act BenefitsRead the Press Release
Baltimore, Maryland – Gladstone Njokem, age 36, of Hyattsville, Maryland, pleaded guilty on February 3, 2023, to federal charges of conspiracy to commit wire fraud and aggravated identity theft, in connection with a scheme to fraudulently obtain more than $1.3 million in COVID-19 CARES Act unemployment insurance (UI) benefits.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service - Washington Division; Acting Special Agent in Charge Troy W. Springer, of the National Capital Region, U.S. Department of Labor - Office of Inspector General (DOL-OIG); Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; and Special Agent in Charge Andrea Peacock of the U.S. Department of the Treasury - Office of Inspector General.
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was a federal law enacted in March 2020 to provide emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic. It expanded states’ ability to provide UI for many workers impacted by the COVID-19 pandemic, including for workers who are not ordinarily eligible for unemployment benefits.
According to his guilty plea, from February 2020 through February 2021, Njokem, co-defendants, Martin Tabe and Sylvester Atekwane, and others conspired to impersonate victims in order to obtain money, including by submitting fraudulent claims for UI benefits. Njokem and his co-conspirators collected the personally identifiable information (PII) of victims, without the victims’ knowledge or consent, then shared the PII amongst themselves and with others to facilitate the fraud and then used the victims’ PII to submit fraudulent applications for UI benefits in Maryland, Arizona, District of Columbia, Georgia, Illinois, Michigan, Tennessee, and Virginia.
In total, at least $1,313,325 in UI benefits, applied for using the names and PII of over 183 victims, are traceable to Njokem’s conspiracy based on common IP addresses, mailing addresses and/or email addresses used for the fraudulent UI claims.
Njokem and the government have agreed that, if the Court accepts the plea agreement, Njokem will be sentenced to between 24 and 70 months in federal prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for May 17, 2023 at 11:00 a.m.
Co-defendants Martin Tabe, age 34, of Bowie, Maryland and Sylvester Atekwane, age 33, of Hyattsville, Maryland previously pleaded guilty to their roles in the fraud scheme. Judge Bennett has scheduled sentencing for Atekwane on April 13, 2023 at 11:00 a.m. and for Tabe on May 2, 2023 at 11:00 a.m.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
United States Attorney Erek L. Barron commended the USPIS, the DOL-OIG, HSI, and the U.S. Department of the Treasury – OIG for their work in the investigation. Mr. Barron thanked the Prince George’s County Police Department, the Baltimore County Police Department, and the Maryland Department of Labor for their assistance. Mr. Barron also thanked Assistant U.S. Attorneys Sean R. Delaney and Darryl L. Tarver, who are prosecuting the federal case.
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.
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Huntington Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Jeremy Lee Pettry, 39, of Huntington, was sentenced today to seven years in prison, to be followed by four years of supervised release, for distributing 5 grams or more of methamphetamine.
According to court documents and statements made in court, on July 29, 2020, Pettry sold 28.13 grams of methamphetamine to a confidential informant in Huntington. On August 6, 2020, law enforcement officers executed a search warrant of Pettry’s 25th Street residence. Officers found 2.21 grams of cocaine, 15.73 grams of heroin, 5.78 grams of methamphetamine and a revolver. Pettry admitted that he possessed the controlled substances and intended to sell them. Pettry further admitted to selling approximately 30 ounces of methamphetamine in the months leading up to the search of his residence.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA).
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie S. Taylor prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-246.
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Haverhill Woman Sentenced to More Than Two Years in Prison for Conspiracy to Use Stolen Identities to Obtain Fraudulent Credit CardsRead the Press Release
BOSTON – A Haverhill woman was sentenced on Feb. 3, 2023 for her role in a scheme to use stolen identities to fraudulently apply for and utilize bank accounts and credit cards.
Neida Lopez, 45, was sentenced by U.S. Senior District Court Judge Timothy Hillman to 28 months in prison and three years of supervised release. Lopez was also required to pay restitution of $20,000. In May 2022, Lopez pleaded guilty to one count of conspiracy to commit wire fraud and one count of aggravated identity theft.
Lopez and multiple co-conspirators were charged by criminal complaint in September 2020. She was subsequently indicted by a federal grand jury later that month.
In furtherance of the scheme, in February 2020, Lopez appeared in person at a bank branch in South Portland, Maine and provided personal identifying information of a U.S. citizen on an application to open a checking account. She later used that same stolen identity to apply for and obtain a credit card which she and her co-conspirators maxed out the $20,000 limit.
At sentencing, Lopez was also held responsible for her role in a related conspiracy that used other stolen identities to apply for Economic Injury Disaster Loans, made available under the Small Business Administration (SBA). The co-conspirators used stolen identities to open fraudulent bank accounts, which were then linked to other fraudulent bank accounts set up to receive the SBA funds. Approximately $250,000 of the fraudulently obtained funds were then laundered through the purchasing of iPhones in Massachusetts and New Hampshire, which were then re-sold for cash. A portion of the funds was also wired to others in the Dominican Republic. In total, over $452,000 in SBA funds were fraudulently obtained in connection with the scheme. One of Lopez’s co-conspirators, Edwin Acevedo, pleaded guilty to his role in in the conspiracy on Jan. 5, 2023. He is scheduled to be sentenced on May 16, 2023.
United States Attorney Rachael S. Rollins; Matthew B. Millhollin, Acting Special Agent in Charge of Homeland Security Investigations in New England; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Brockton Police Chief Brenda Perez made the announcement today. Assistance was provided by the Lowell, Lawrence, Methuen, Haverhill, Woburn and Dartmouth Police Departments. Assistant U.S. Attorneys Elianna Nuzum and Adam Deitch of Rollins’ Criminal Division are prosecuting the case. The investigation was conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized investigative group comprising personnel from various state, local, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity and benefit fraud schemes.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.Grandview Felon Pleads Guilty to Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Grandview, Mo., man who used explosives in two failed attempts to break into ATMs at Overland Park, Kan., businesses pleaded guilty in federal court today to illegally possessing a firearm.
Josiah Ronnell Lewis, also known as “Joey,” 44, pleaded guilty before U.S. District Judge Roseann Ketchmark to being a felon in possession of a firearm.
Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives discovered Lewis’s Ruger 9mm semi-automatic firearm at his residence during their investigation into the failed ATM robberies. The firearm was found in the upstairs living room under a couch. Federal agents also found four improvised explosive devices, marijuana, drug paraphernalia, burglary tools, and clothing, gloves, and masks that matched those worn in one of the failed burglary attempts.
On April 29, 2021, Lewis used a crowbar to force the door open at Minit Mart, a convenience store located on 135th Street in Overland Park. Lewis held the door to the closed store open for an unknown accomplice, who placed a device with a fuse in the slot of an ATM inside the store. They left the store as an explosion occurred, then reentered the store and ran to the ATM. The explosion destroyed the ATM but did not breach the vault, which held approximately $25,000. Lewis and his accomplice left the store empty-handed.
In-store surveillance video footage showed both suspects were wearing dark clothing and masks. Lewis had shoes with white laces and white soles. Traffic camera footage led to the identification of a car registered to Lewis’s wife that he used as the get-away car. Investigators also secured a copy of in-store video footage from a nearby 7-Eleven where Lewis went right after the burglary of Minit Mart. One of Lewis’s former parole officers was able to positively identify Lewis from the 7-Eleven video footage.
On July 4, 2021, Lewis shattered a patio glass door with a rock at Maloney’s Sports Bar and Grill on West 79th Street in Overland Park. Lewis placed an explosive device on the ATM. The device detonated and destroyed the ATM and damaged the interior of Maloney’s. However, Lewis was not able to retrieve any money from the ATM, which contained approximately $2,440. Some of the ATM’s cash was damaged or destroyed in the explosion.
A vehicle seen leaving the area matched the vehicle used during the Minit Mart burglary and arson. Certain clothing items worn by the suspect matched the clothing worn by Lewis during the Minit Mart burglary and arson.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Lewis has three prior felony convictions for burglary of a motor vehicle, as well as prior felony convictions for robbery, felon in possession of a firearm, and theft.
On Nov. 15, 2022, Lewis was sentenced to five years in federal prison without parole after pleading guilty in the District of Kansas to committing arson during the failed burglary at Maloney’s on July 4, 2021.
Under federal statutes, Lewis is subject to a sentence of up to 10 years in federal prison without parole in this case. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office. The court will determine whether the sentence in this case must be served consecutively or concurrently with his sentence in the District of Kansas.
This case is being prosecuted by Assistant U.S. Attorney Trey Alford. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
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.
Fresno Man Sentenced to over Five Years in Prison for Using Elderly Victim’s Identity to Steal to Steal Hundreds of Thousands of DollarsRead the Press Release
FRESNO, Calif. — Brian Stoffel, 38, of Fresno, was sentenced today to five years and four months in prison for bank fraud and identity theft for stealing money from an elderly victim’s bank accounts and getting fraudulent loans in the victim’s name, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between September 2020 and August 2021, Stoffel obtained the personally identifiable information for an elderly victim and used it to drain the victim’s savings and apply for loans in the victim’s identity. This included a Department of Homeland Security Federal Emergency Management Agency (FEMA) loan for disaster assistance related to a wildfire. Stoffel’s scheme resulted in a loss of $420,000. He used the proceeds for personal expenses, including to buy a new motorcycle, attend an NFL playoff game, and make purchases at retail stores.
This case was the product of an investigation by the Fresno County Sheriff’s Office Elder Abuse Unit and the Federal Bureau of Investigation. Assistant U.S. Attorney Joseph Barton prosecuted the case.
Four Fresno Residents Sentenced as Part of Project Safe Neighborhoods Program to Reduce Violent Crime and Gun ViolenceRead the Press Release
FRESNO, Calif. — Four Fresno men were sentenced today for drug and/or firearm offenses, U.S. Attorney Phillip A. Talbert announced.
Mike Marty Hernandez, 26, of Fresno, was sentenced to three years and one month in prison for being a felon in possession of a firearm. According to court documents, on May 23, 2022, detectives arrested Hernandez after observing him in possession of a loaded firearm equipped with a large capacity magazine. Because of his criminal record, including a 2019 conviction for threatening a public official, Hernandez may not lawfully possess firearms or ammunition. This case was the product of an investigation by the FBI and the Fresno Police Department Multi-Agency Gang Enforcement Consortium (MAGEC).
Assistant U.S. Attorney Antonio J. Pataca prosecuted the case.
Oshay Laray Pullen, 26, of Fresno, was sentenced to three years and one month in prison for being a felon in possession of ammunition. According to court documents, on Oct. 21, 2020, Pullen was on parole for a prior conviction for assault with a firearm and found to be in possession of a firearm and a loaded magazine. Pullen is a felon who cannot lawfully possess firearms or ammunition. This case was the product of an investigation by the FBI and MAGEC.
Andres Nunez, 25, of Fresno, was sentenced today to seven years in prison for distributing fentanyl to a person under 21 years old and possessing a firearm in furtherance of a drug trafficking offense. According to court documents, in February 2021, Nunez delivered counterfeit M30 pills, laced with fentanyl, to a juvenile. During a search of Nunez’s residence, several firearms, including an automatic handgun were found. This case was the product of an investigation by FORT, a multi-agency team investigating fentanyl trafficking composed of Homeland Security Investigations (HSI), DEA, and the Fresno Police Department.
Leo Torres, 31, of Fresno, was sentenced to seven years and six months in prison for conspiring to distribute and possess with intent to distribute heroin and methamphetamine. According to court documents, in January 2021, Torres conspired to smuggle heroin and methamphetamine into the Fresno County Jail for further distribution among inmates. Recorded jail calls revealed the plan to sneak the drugs into the jail inside a pair of athletic shoes destined for an inmate. Officers at the jail intercepted the shoes and found heroin and methamphetamine in hidden compartments. This case was the product of an investigation by HSI, DEA, the Fresno County Sheriff’s Office, and the Fresno Police Department.
Assistant U.S. Attorney Justin J. Gilio prosecuted these three cases.
These cases are 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 U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Former City Clerk Admits Stealing $487,673 from Small North St. Louis County MunicipalityRead the Press Release
ST. LOUIS – The former city clerk of Flordell Hills, Missouri on Monday admitted stealing $487,673 from the small, struggling city.
Maureen Woodson, 68, pleaded guilty in front of U.S. District Judge Rodney W. Sippel to one count of mail fraud and one count of wire fraud. Woodson admitted that from roughly February 2016 to April 2022, she and the former assistant city clerk, Donna Thompson, wrote about 614 checks to themselves without the authority or knowledge of the mayor, the treasurer or the board of aldermen. They forged the signature of the mayor and/or the treasurer on the checks, the plea agreement says.
Woodson and Thompson cashed some checks and deposited others into their personal bank accounts, the plea says. Woodson and Thompson used the money to gamble both in person and online, and for personal expenses, the plea agreement says.
They also used city checks or wire transfers of city funds to directly pay the rent for their home in Florissant as well as for entertainment, their federal taxes and expenses at restaurants and stores, the plea says.
In her plea, Woodson admitted fraudulently obtaining $487,673.
Thompson has pleaded not guilty but has scheduled a change of plea February 7, according to court records.
Woodson and Thompson, 75, were indicted in August.
Woodson is scheduled to be sentenced May 16 in U.S. District Court in St. Louis. Each charge carries a penalty of up to 20 years in prison, a $250,000 fine, or both. She will also be ordered to repay the money.
Woodson was hired in 2010 and Thompson in 2012. Both women were terminated in May.
Flordell Hills is roughly six blocks square, has an annual budget of about $400,000 and a population of about 800. Approximately 53.9% of those residents live below the poverty line, according to the U.S. Census Bureau.The FBI investigated the case. Assistant U.S. Attorney Hal Goldsmith is prosecuting the case.
Former Caldwell Police Department Lieutenant Sentenced to Federal PrisonRead the Press Release
BOISE – Joseph Alan Hoadley, 42, of Caldwell, was sentenced to three months in federal prison for falsifying a record or document in a federal investigation, witness tampering by harassment, and destroying a record to impair its use in an official proceeding, U.S. Attorney Josh Hurwit announced today. The Honorable Scott W. Skavdahl, U.S. District Court Judge for the District of Wyoming, sitting by designation, also ordered Hoadley to serve 12 months of supervised release following his release from prison.
In September 2022, Hoadley, a former Caldwell Police Department Lieutenant, was convicted after a five-day jury trial before U.S. District Court Judge Skavdahl. The jury found Hoadley not guilty of willful deprivation of rights under color of law.
According to court records and evidence presented at trial, while employed as a Lieutenant with the Caldwell Police Department, Hoadley used force against B.H. in Caldwell in 2017 while he was detained and handcuffed. Hoadley falsified a subsequent police report detailing his actions during the incident. In 2021, knowing that he was the target of an FBI investigation, Hoadley harassed and intimidated C.H. with the intent to dissuade him from cooperating with the FBI investigation. In April 2022, after being indicted by a federal grand jury, Hoadley destroyed data on his city issued laptop and cellphone one day before turning them over to the acting Caldwell Police Chief, who had placed Hoadley on administrative leave because of the charges.
“This case is about an officer who criminally violated the oath he took to uphold the law,” said U.S. Attorney Hurwit. “In falsifying reports and tampering with a witness, the defendant offended the principles of the Caldwell Police Department and of law enforcement officers everywhere. This case shows that we will not hesitate to hold accountable police officers who violate the law—just like we do for everyone else. At the same time, it is important to emphasize that this investigation occurred because several Caldwell police officers refused to tolerate the defendant’s violations and stood up to his abuse of power. The integrity and bravery of these officers is something that the community can be proud of.”
“As law enforcement, we are bound by an oath to serve all citizens with equal compassion, professionalism, dignity, and respect,” said Special Agent in Charge Dennis Rice of the Salt Lake City FBI. “When a police officer commits a crime, it undermines the hard work of all officials and erodes the public’s trust. Today’s sentencing reinforces that no one is above the law.”
U.S. Attorney Hurwit commended the Federal Bureau of Investigation for its thorough investigation and thanked the Caldwell Police Department for its cooperation.
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Former Bank Vice President Sentenced to Fifteen Months in Prison After Falsifying Documents in Hopes of Attaining Leniency from Federal JudgeRead the Press Release
SAN JOSE– Former Silicon Valley Bank vice president Mounir Gad was sentenced today to fifteen months in prison after having submitted several falsified letters of reference in connection with his sentencing for a previous securities fraud conviction, announced U.S. Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp. Today’s sentence was handed down by the Hon. Edward J. Davila, United States District Judge.
Gad, 36, of Los Gatos, pleaded guilty to the document-falsification-related charges on October 27, 2022. In pleading guilty, Gad acknowledged he previously had been charged with, and pleaded guilty to, securities fraud violations in connection with an insider trading scheme. The securities case involved Gad’s decision as a trained investment banking professional to violate insider trading laws on two occasions. Gad made a federal court appearance on November 3, 2021, before United States District Judge Lucy H. Koh to be sentenced for his securities fraud crimes. At that time, Gad argued he should not be sent to prison, and instead should be sentenced only to probation, in part because “[Gad’s] friends and family—including his ex-fiancée—all roundly attest to Mr. Gad’s strength of character, loyalty, and dedication to his community.” In support of this argument, Gad submitted twelve letters of reference. Gad now acknowledges that six of the twelve letters he submitted to the judge in connection with his November 3, 2021, sentencing were not authentic. With respect to three of the letters, Gad made changes to the versions he had received from his references before submitting them to the court, without the references’ knowledge or permission. With respect to the three others, Gad submitted them on behalf of individuals who had not written any support letter in connection with his sentencing—two of the letters were written for reasons having nothing to do with the sentencing and were altered by Gad before they were submitted, and one, purportedly written by his ex-fiancée, was written by Gad in its entirety without the knowledge or permission of the purported author.
The inauthenticity of the letters came to light after Gad’s November 3, 2021, sentencing hearing. At the hearing, Judge Koh described on the record her thoughts regarding a story from a falsified portion of a letter—a letter purportedly written from someone who attended the hearing. The purported author later informed Gad’s attorney that she had not written the information that Judge Koh referenced at the hearing. A subsequent hearing took place on November 10, 2021, at which Judge Koh explained that the portions of the letter she found very compelling were “lies that Mr. Gad put in the letter.” Still, Gad did not admit during the November 10, 2021, hearing that six of his twelve reference letters were, in fact, falsified. Instead, he stated to Judge Koh, “I promise you, Your Honor, that was the only one. Every other letter is as it is.” A subsequent investigation revealed this statement was untrue.
On January 13, 2022, a federal grand jury indicted Gad, charging him with three counts of tampering with documents, in violation of 18 U.S.C. § 1512(c)(1); three counts of tampering, in violation of 18 U.S.C. § 1512(c)(2); six counts of identity theft, in violation of 18 U.S.C.§ 1028(a)(7) and (b)(2)(B); and one count of criminal contempt, in violation of 18 U.S.C. § 401(1). Gad pleaded guilty to all the charges without a plea agreement.
In addition to the prison term, Judge Davila also ordered Gad to serve thirty-six months of supervised release and imposed a $10,000 fine and a $1,300 special assessment. Judge Davila ordered Gad to surrender on or before May 24, 2023 to begin serving his prison term.
Special Assistant U.S. Attorney E. Wistar Wilson and Assistant U.S. Attorneys John Bostic and Sarah E. Griswold are prosecuting this case with assistance from Veronica Hernandez, Lynette Dixon, and Susan Kreider. The case is being investigated by the FBI.
Fishers Man Sentenced to 13 Years in Federal Prison for Trafficking Child Sexual Abuse Material via Omegle, Kik, and TelegramRead the Press Release
INDIANAPOLIS- Robert Ficzner, 27, of Fishers, Indiana has been sentenced to 13 years in federal prison for distributing child sexual abuse material.
According to court documents, the National Center for Missing and Exploited Children (NCMEC) received information from Omegle, a one-on-one random video chat application, that Robert Ficzner had displayed an image of a naked, prepubescent 5-year-old to other Omegle users. In March of 2022, Ficzner was approached by investigators and admitted that he showed the sexually explicit images of the child to elicit a “reaction” from other Omegle users. Additionally, Ficzner admitted to receiving and sharing child sexual abuse material via the Kik and Telegram instant messaging applications.
When investigators searched Ficzner’s cell phone, they found multiple files containing child sexual abuse material, as well as conversations between Ficzner and other participants discussing their desires and plans to kidnap and sexually abuse children.
Ficzner’s collection of child sexual abuse material contained well over 600 images and included depictions of the sexual abuse and torture of infants and toddlers, as well as sadistic and masochistic conduct.
“Civilized society will not tolerate the trafficking of images of the sexual torture of babies and toddlers,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Even worse, this defendant discussed his desires and plans to kidnap and sexually abuse children with likeminded offenders online. The serious sentence imposed here demonstrates that federal, state, and local law enforcement will root out those criminals who pose a danger to our children, prosecute them, and get them off our streets.”
“This sentencing shows just how damaging Ficzner’s crimes against children are and emphasizes HSI’s dedication to hold perpetrators accountable,” said HSI Special Agent in Charge of the Chicago area of operations Sean Fitzgerald. “We, alongside our law enforcement partners, are committed to keeping the most vulnerable of our communities safe. Child predators like Ficzner cannot escape justice and there will be serious consequences for their heinous actions.”
Homeland Security Investigations, the Hamilton County Metropolitan Child Exploitation Task Force, and the Department of Justice’s Child Exploitation and Obscenity Section investigated this case. The sentence was imposed by U.S. District Court Judge, Jane E. Magnus-Stinson. Judge Stinson also ordered that Ficzner be supervised by the U.S. Probation Office for 15 years following his release from federal prison and pay $8,000 in restitution to the victims. Ficzner must also register as a sex offender wherever he lives, works, or goes to school, as required by law.
U.S. Attorney Myers thanked Assistant United States Attorney Kristina M. Korobov and Trial Attorney Adam Braskich of the Department of Justice’s Child Exploitation and Obscenity Section, who prosecuted this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
Federal Jury Finds Pittsburgh Man Guilty of Robbery, Conspiracy and Firearms OffenseRead the Press Release
PITTSBURGH, PA - After deliberating for two days, a federal jury on Friday found Deon Reese guilty of three counts of robbery, conspiracy, and discharging a firearm during a crime of violence, United States Attorney Cindy K. Chung announced today.
Reese, 47, of Pittsburgh, was tried before United States District Judge J. Nicholas Ranjan in Pittsburgh, Pennsylvania.
According to Assistant United States Attorney Doug Maloney, who prosecuted the case, the evidence presented at trial established that on March 23, 2017, Reese conspired with others, both known and unknown, to rob the victim of drugs and money. During the robbery, the victim was shot and critically injured, nearly dying from his wounds. Reese then engaged in efforts to prevent the witness from testifying at trial, including soliciting a coconspirator to bribe the victim not to come to court, and requesting others to contact and follow the victim.
Judge Ranjan scheduled sentencing for May 18, 2023, at 10:00 a.m. The law provides for a total sentence of up to life in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered the defendant to remain detained.The Bureau of Alcohol, Tobacco, Firearm, and Explosives, and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Reese.
Evansville Man Sentenced to 8 Years in Federal Prison for Distributing Child Sexual Abuse Material via KikRead the Press Release
EVANSVILLE- Brandon Kyle Meredith Adcox, 39, of Evansville, Indiana, was sentenced to 8 years in federal prison for distribution of child sexual abuse material.
According to court documents, on August 30, 2021, the Indiana Internet Crimes Against Children (ICAC) Task Force and a detective with the Evansville Police Department (EPD) received a CyberTip stating that between June 10 and June 15, 2021, 36 files containing child sexual abuse material had been uploaded and distributed using Kik Messenger, an instant messaging app.
Kik provided investigators with the email address associated with the account. The email address associated with the Kik account was registered in Adcox’s name, and records indicated the account was accessed from the Evansville apartment complex where Adcox lived. EPD officers obtained and executed a warrant to search Adcox’s residence. During execution of the warrant, Adcox agreed to answer questions and provide the passcode to his iPhone. Adcox confirmed that he was the owner of the email and Kik accounts and admitted to distributing and receiving child sexual abuse material via Kik on several occasions. He also admitted that several images and videos depicting child sexual abuse material would be found on his cell phone.
Upon investigation of the files, detectives found child sexual abuse material, including a video of an adult female performing oral sex on an infant than one year old.
“Criminals like this defendant use online platforms to share child sexual abuse materials and seek affirmation from others who share their sexual interest in children,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “The dangerous predators who traffic in images of these horrific crimes re-victimize children for their own pleasure—and should take note of the sentence imposed today. The outstanding investigators and analysts at the Indiana ICAC, FBI, and EPD, will identify you and make our children safer by sending you to federal prison.”
“Those who sexually exploit children in this manner cause great harm to their young victims and deserve a strong punishment,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “The FBI and our law enforcement partners are dedicated to protecting children from offenders like him and will do everything we can to ensure such defendants are identified, investigated and prosecuted.”
The FBI and ICAC investigated this case with valuable assistance from the Evansville Police Department. The sentence was imposed by U.S. District Court Judge, Richard L. Young. Judge Young also ordered that Adcox be supervised by the U.S. Probation Office for 10 years following his release from federal prison. Adcox must also register as a sex offender wherever he lives, works, or goes to school, as required by law.
U.S. Attorney Myers thanked Assistant United States Attorney Todd Shellenbarger, who prosecuted this case.
This investigation was conducted by the Indiana Internet Crimes Against Children (ICAC) Task Force, a partnership of federal, state, and local law enforcement agencies led by the Indiana State Police. The Task Force is dedicated to investigating and prosecuting crimes involving the technology-facilitated sexual exploitation of children and the trafficking of child sexual abuse material. Each year, Indiana ICAC investigators evaluate thousands of tips, investigate hundreds of cases, and rescue dozens of children from ongoing sexual abuse.
In fiscal year 2019, the most recent year for which data is available, the Southern District of Indiana was second out of the 94 federal districts in the country for the number of child sexual exploitation cases prosecuted.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
Detroit Man Pleads Guilty to Fentanyl CrimeRead the Press Release
HUNTINGTON, W.Va. – Sylvester Roosevelt McNeil, also known as “Juan,” 50, of Detroit, Michigan, pleaded guilty today to distribution of fentanyl.
According to court documents and statements made in court, on August 27, 2022, McNeil sold approximately 1.3 grams of fentanyl to a confidential informant at a location on Nickel Plate Road in Huntington.
McNeil is scheduled to be sentenced on May 8, 2023, and faces a maximum penalty of 20 years in prison, three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Cabell County Sheriff’s Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams is prosecuting the case.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-165.
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Detroit Man Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Desmond Devon Magee, also known as “Rich,” 27, of Detroit, Michigan, pleaded guilty today to distribution of a quantity of a mixture and substance containing a detectable amount of methamphetamine.
According to court documents and statements made in court, on October 18, 2022, Magee sold approximately 29 grams of methamphetamine to a confidential informant inside an Eighth Street business in Huntington.
Magee is scheduled to be sentenced on May 8, 2023, and faces a maximum penalty of 20 years in prison, three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Cabell County Sheriff’s Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-210.
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Chicago Investment Advisor Indicted on Fraud Charges for Allegedly Swindling Clients Out of $683,000Read the Press Release
CHICAGO — A Chicago investment advisor has been indicted on federal fraud charges for allegedly swindling three clients out of approximately $683,000.
DAVID SHELDON WELLS, 32, of Chicago, was charged with three counts of wire fraud in an indictment returned Wednesday in U.S. District Court in Chicago. Arraignment is set for today at 2:00 p.m. before U.S. Magistrate Judge Heather K. McShain.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Douglas Zloto, Special Agent-in-Charge of the U.S. Secret Service Chicago Field Office. Valuable assistance was provided by the U.S. Securities and Exchange Commission. The government is represented by Assistant U.S. Attorney Brian Havey.
According to the indictment, Wells worked as an investment advisor in the Chicago branch of a subsidiary of a Midwestern bank. In 2020 and 2021, Wells falsely represented to three clients, including two elderly men suffering from dementia, that he would invest their money in publicly traded companies. Based on the false representations, the clients sent him checks made payable to “Wayne and Stark,” which Wells claimed was a publicly traded company. In reality, Wayne and Stark was a shell company set up and solely controlled by Wells, the indictment states.
Wells used the clients’ funds for his personal use, including rent and unauthorized trading in high-risk options contracts, the indictment states. Wells lost or otherwise spent all of the clients’ funds, the indictment states.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of wire fraud is punishable by up to 20 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Charlotte Duo Sentenced to Prison for Armed RobberiesRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that Keishaun Leroy Anderson, 20, and Kevin Matias Lopez, 29, both of Charlotte, were sentenced for robbing and attempting to rob multiple gas stations in Charlotte.
Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Johnny Jennings, of the Charlotte-Mecklenburg Police Department (CMPD), join U.S. Attorney King in making today’s announcement.
U.S. District Judge Robert J. Conrad Jr. sentenced Anderson to 111 months in prison, followed by three years of supervised release. Anderson pleaded guilty to Hobbs Act robbery and possession and brandishing of a firearm in furtherance of a crime of violence. Lopez was sentenced to 63 months in prison followed by three years of supervise release, after pleading guilty to conspiracy to commit Hobbs Act robbery and Hobbs Act robbery.
According to court documents and today’s court hearings, on November 1, 2020, Anderson and Lopez robbed and attempted to rob multiple gas stations in the Charlotte area in the span of a hour. Court records show that the first attempted robbery took place at a 7-Eleven on Nations Ford Road in Charlotte, at approximately 12:45 a.m. During this incident, the store clerk observed Anderson approach the store with what appeared to be rifle or a shotgun. The clerk was able to quickly activate the door’s remote control lock mechanism and call 911. Anderson and Lopez fled the scene in their vehicle.
The second attempted robbery took place at a Circle K on South Tryon Street in Charlotte at approximately 1:04 a.m. Court records show that, during this incident, Anderson attempted to enter the gas station which was closed at the time. The clerk who was inside the store observed Anderson attempting to enter the store and was able to further secure the closed doors with zip ties. Lopez then came to the door and attempted to cut the zip ties with a knife but was unsuccessful. Anderson and Lopez left the gas station in their vehicle.
According to court documents, at approximately 1:12 a.m., the defendants robbed a Circle K located on South Tryon Street. During this robbery, Anderson entered the store, pulled a shotgun and pointed it at the store clerk. Anderson then ordered the clerk to give him money from the safe and the register. Anderson and Lopez took the money and drove away in their vehicle.
The next robbery took place at a 7-Eleven on Steele Creek Road in Charlotte, at approximately 1:27 a.m. Court records show that Anderson came into the store with a shotgun and demanded money and other items from the store clerk. Anderson then cocked the shotgun and took money, cigarettes and cigars from the clerk before he fled the scene with Lopez.
While CMPD officers were responding to the most recent robbery incident, another CMPD officer anticipated the location of the next robbery and drove to a gas station on Steele Creek Road. While there, the officer observed Anderson and Lopez arrive in their vehicle at the gas station and leave shortly thereafter. Law enforcement followed the defendants’ vehicle into the parking lot of an apartment complex where Anderson and Lopez were arrested. Over the course of the arrest, law enforcement located the shotgun Anderson had used to carry out the spree of robberies and attempted robberies.
At today’s sentencing hearing, Judge Conrad noted that the crimes were committed in a “harrowing and menacing fashion.”
The defendants are currently in federal custody. They will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked the FBI and CMPD for their investigation of the case.
Assistant United States Attorneys Regina Pack and David Kelly of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Carrollton Pair Tied to as Many as 10 Juvenile Overdoses Charged with Fentanyl ConspiracyRead the Press Release
Two fentanyl dealers allegedly tied to as many as 10 juvenile overdoses, three of them fatal, have been federally charged, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Luis Eduardo Navarrete, 21, and Magaly Mejia Cano, 29, were charged via criminal complaint with conspiracy to distribute fentanyl. They were arrested at Mr. Navarrete’s residence in Carrollton on Friday and made their initial appearances Monday afternoon.
“To deal fentanyl is to knowingly imperil lives. To deal fentanyl to minors — naive middle and high school students — is to shatter futures. These defendants’ alleged actions are simply despicable. We can never replace the three teenagers whose lives were lost, nor can we heal the psychological scars of those who survived their overdoses. But we can take action to ensure these defendants are never allowed to hand a pill to a child again,” said U.S. Attorney Leigha Simonton.
“Selling drugs alone is a serious transgression, but to sell deadly fentanyl to a juvenile is one of the most shocking and callous ways to hurt a community,” said Eduardo A. Chavez, Special Agent in Charge of the DEA Dallas Field Division. “DEA Dallas and our partners from the Carrollton Police Department will work to identify and hold accountable every individual who thinks they can profit by exposing our neighborhoods, and our children, to this deadly substance.”
“I am very appreciative of our partnerships with all federal agencies. I am proud of the Carrollton Police Department’s work in providing the necessary evidence to the DEA. We continue to work with the DEA and other federal partners to rid our great community of this poison. We take this very seriously; there is nothing more precious than our children,” said Carrollton Police Chief Roberto Arredondo.
According to the complaint, Mr. Navarrete and Ms. Cano allegedly dealt fake Percocet and Oxycontin pills laced with fentanyl, commonly known as “M30s,” to multiple juvenile drug dealers, mostly students at RL Turner High School, who in turn sold the drugs to their fellow students at R.L. Turner High School and to younger students at Dewitt Perry and Dan F. Long Middle Schools.
Nine students at those schools – ranging in age from 13 to 17 – suffered ten overdoses, three of which were fatal, between September 2022 and February 2023.
One victim, a 14-year-old girl who overdosed twice and suffered temporary paralysis, told law enforcement the pills she ingested came from juvenile dealers who obtained the drugs from Mr. Navarrete. (She also confirmed she had purchased pills directly from Mr. Navarrete in the past.)
Law enforcement conducting surveillance at Mr. Navarrete’s home observed him engage in a hand-to-hand transaction with another 16-year-old dealer on January 12, 2023. Officers followed the juvenile into a bathroom at R.L. Turner, where he holed up in a stall to snort the drugs. He later admitted that he’d obtained the pills – which he called “perc pills” – from Mr. Navarrete.
A criminal complaint is merely an allegation of wrongdoing, not evidence. Both Mr. Navarrete and Ms. Cano are presumed innocent until proven guilty in a court of law.
If convicted, they each face up to 20 years in federal prison.
The Drug Enforcement Administration’s Dallas Field Office and the Carrollton Police Department conducted the investigation with the assistance of School Resource Officers from the Carrollton – Farmer’s Branch Independent School. Assistant U.S. Attorneys Rick Calvert and Phelesa Guy are prosecuting the case.
Note: Illicitly produced, fentanyl-laced pills often look similar to legitimate prescription pills like Oxycontin or Percocet, but can pose significantly more danger. On the street, these pills are often referred to as “M30s” (a reference to the markings on some of the pills), “blues,” “perks,” “yerks,” “china girls,” or “TNT.” DEA research shows that six out of ten pills laced with fentanyl contain a potentially lethal dose. One pill can kill. For resources, visit https://www.dea.gov/onepill.California Man Sentenced for Mailing Marijuana to Western PennsylvaniaRead the Press Release
PITTSBURGH, PA – A resident of Seiad Valley, California, has been sentenced in federal court to 24 months of imprisonment followed by one year of supervised release on his conviction for violating federal narcotics laws related to a nine-month Title III wiretap investigation into drug trafficking in and around the counties of Jefferson, Clearfield, and Allegheny, United States Attorney Cindy K. Chung announced today.
United States District Judge Christy Criswell Wiegand imposed the sentence on James White, age 40.
According to information presented to the court, White transported over 250 pounds of marijuana from Oregon to various post offices located in Nevada. White then mailed parcels containing marijuana on behalf of George Charlan, a supplier living in Oregon, to distributors living in the Western District of Pennsylvania.
Assistant United States Attorneys Jonathan D. Lusty and Michael R. Ball prosecuted this case on behalf of the government.
The Drug Enforcement Administration led the multi-agency investigation of this case, which also included the Homeland Security Investigations, United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Internal Revenue Services, Pittsburgh Bureau of Police, Allegheny County Police, and Pennsylvania State Police. Also assisting were the Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and the Clarion Borough Police Department.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
California Drug Traffickers Plead Guilty to Supplying Fentanyl Linked to Wise County Teen OverdosesRead the Press Release
ABINGDON, Va. – A California-based trio pled guilty last week to running a cross-country drug trafficking conspiracy that supplied fentanyl linked to teenage overdoses in Wise County, Virginia.
Alexander Ortiz, 25, of Fullerton, California, Destiny Raeann Perez, 23, of Turlock, California, and Jorge Efrain Perez Jr., 24, of Santa Ana, California, each pled guilty to one count of conspiring to distribute 400 grams or more of fentanyl. Ortiz also pled guilty to one count of possessing a firearm in furtherance of a drug trafficking crime. Ortiz faces a mandatory minimum term of imprisonment of 15 years. Jorge Perez and Destiny Perez each face a minimum of 10 years in prison.
According to court documents, at the time of Mr. Ortiz’s arrest on June 20, 2022, he was found in possession of both a FNH pistol and a Glock, Model 45 9mm pistol, as well as over $10,000 cash, fentanyl patches and thousands of Alprazolam pills and other controlled substances, digital scales, and drug packaging items. A search warrant executed at Ortiz and Destiny Perez’s residence in Los Banos, California resulted in the recovery of over 6,000 pressed pills containing fentanyl, approximately $60,000 cash, and 13 firearms.
The investigation revealed that between November 1, 2020, and June 20, 2022, the trio packaged and sold tens of thousands of fentanyl-laced pills to buyers throughout the country, including sales to co-conspirator Paul Mason Perkins and others in Southwest Virginia. Using the social media platforms Snapchat and Instagram, Perkins ordered 1,000 pills every few weeks from Ortiz, who had the pills mailed to Perkins at his residence in Big Stone Gap. From there, Perkins sold the pills to individuals in Wise County, some of which were linked to two teenage overdoses that occurred in November 2021.
United States Attorney Christopher R. Kavanaugh, Charlies J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division, and Tira A. Hayward, Acting Inspector in Charge of the U.S. Postal Inspection Service Washington Division made the announcement.
Assistant U.S. Attorney Lena Busscher is prosecuting the case.
The Wise County Sheriff’s Office, the Norton Police Department, the Southwest Drug Task Force, the United States Postal Inspection Service, and the Bureau of Alcohol, Tobacco, Firearms & Explosives investigated the case, with assistance from the Stanislaus and Orange County, California Sheriffs’ Offices, and the Patterson California Police Department.
Bridgeport Gang Member Sentenced to 14 Years in Federal PrisonRead the Press Release
JAMAR TRAYLOR, also known as “J-Hop,” 23, of Bridgeport, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 168 months of imprisonment, followed by three years of supervised release, for offenses related to his participation in a violent Bridgeport street gang.
Today’s announcement was made by Vanessa Roberts Avery, United States Attorney for the District of Connecticut; Joseph T. Corradino, State’s Attorney for the Fairfield Judicial District; Bridgeport Police Chief Roderick Porter; Jean Pierre Njock, Acting Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; James Ferguson, Special Agent in Charge, ATF Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, and Acting U.S. Marshal Lawrence Bobnick.
According to court documents and statements made in court, the FBI, ATF, DEA, U.S. Marshals Service and Bridgeport Police have been investigating multiple Bridgeport-based gangs whose members are involved in narcotics trafficking, murder and other acts of violence. Traylor was a member of the Original North End (“O.N.E.”), a gang based in the Trumbull Gardens area of Bridgeport that committed acts of violence against rival gang, including the East End gang, the East Side gang, and the PT Barnum gang. O.N.E. members also robbed drug dealers, sold narcotics, and stole cars from inside and outside Connecticut and used the cars to commit crimes.
On August 8, 2018, Traylor and other O.N.E. members stole a Jeep Grand Cherokee in Newburgh, New York, and drove it back to Bridgeport. In the following days, Traylor and others conspired to use the car to kill East End gang members and their allies who they had learned through social media were at a deli on Stratford Avenue in Bridgeport. Although that plan fell through, in the early morning hours of August 13, 2018, O.N.E. members drove the stolen Jeep to Stratford and Union Avenues in Bridgeport where they shot and killed Len Smith, 25, who they mistook for a rival East End group member, and shot and seriously wounded Smith’s female companion, both of whom were seated in a parked car. After the shooting, O.N.E. members transported the Jeep to Indian Wells State Park in Shelton where they burned the vehicle in an effort to destroy evidence of the murder.
On October 22, 2018, Traylor and other O.N.E. members committed a violent robbery of a marijuana dealer.
On June 1, 2021, Bridgeport Police arrested Traylor, who at the time was on state probation following a weapons conviction, when a search of his residence revealed five Glock handguns; 14 gun magazines, including a 50-round drum and three extenders; speed loaders; laser attachments; ammunition; body armor; bags of marijuana; and items use to process and package narcotics.
Traylor has been detained since his arrest. On June 10, 2022, he pleaded guilty to conspiring to engage in a pattern of racketeering activity.
This ongoing investigation is being conducted by the FBI’s Safe Streets and Violent Crimes Task Forces, ATF, DEA, U.S. Marshals Service, Bridgeport Police Department, Connecticut State Police and the Bridgeport State’s Attorney’s Office, with the assistance of the U.S. Postal Inspection Service, Connecticut Forensic Science Laboratory and the Waterbury Police Department. The case is being prosecuted by Assistant U.S. Attorneys Karen L. Peck, Rahul Kale, Jocelyn C. Kaoutzanis and Tara E. Levens.
This prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN), Project Longevity and Organized Crime Drug Enforcement Task Forces (OCDETF) programs.
PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it. If a group member elects to engage in gun violence, the focused attention of federal, state and local law enforcement will be directed at that entire group.
OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Boston Man Charged with Fentanyl Distribution OffenseRead the Press Release
BOSTON – A Boston man has been arrested and charged with a drug distribution offense involving fentanyl.
Csean Skerritt, a/k/a “Shizz Grimmy,” a/k/a “Black,” 34, was arrested yesterday and charged with one count of distribution of 40 grams or more of fentanyl. Following an appearance in federal court in Boston this afternoon, Skerritt was detained pending a hearing scheduled for Feb. 14, 2023 at 2:30 p.m.
According to the charging documents, on Feb. 1, 2023, Skerritt agreed to sell 50 grams of fentanyl to an individual in exchange for $1,500. It is alleged that, following a series of communications, Skerritt met the individual at a pre-arranged location. There, Skerritt allegedly entered the individual’s car and provided approximately 55 grams of fentanyl in exchange for the agreed-upon amount.
The charge of distribution of 40 grams or more of fentanyl provides for a sentence of at least 5 years and up to 40 years in prison, at least 4 years of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Boston Police Commissioner Michael Cox; and Suffolk County District Attorney Kevin Hayden made the announcement today. Assistant U.S. Attorney John T. Dawley of Rollins’ Organized Crime & Gang Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Benteler Steel & Tube Manufacturing Corp. Abandons Merger with Tenaris, S.A. After Justice Department InvestigationRead the Press Release
Tenaris, S.A. (Tenaris) confirmed that Benteler Steel & Tube Manufacturing Corp. (Benteler) has walked away from Tenaris’s planned $460 million take-over of Benteler’s state-of-the-art steel and tube manufacturing facility in Shreveport, Louisiana. The abandonment comes after the Justice Department’s Antitrust Division raised competition concerns about the deal.
The proposed transaction would have combined two domestic suppliers of seamless tubing and production casing, important types of steel pipe used in the extraction of oil and gas. The transaction would have increased concentration in an already concentrated industry, cementing Tenaris as the undisputed dominant player in the market.
“A competitive oil and gas industry is vital to the U.S. economy,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “The proposed acquisition would have eliminated Benteler as an independent competitor and threatened higher prices, lower quality, and less innovation in this market. I am grateful to the division’s hardworking staff who thoroughly investigated the transaction on behalf of the public.”
Tenaris, S.A. is a Luxembourg corporation listed on the New York, Italian, and Mexican stock exchanges operating a global network of steelmaking, including several Oil Country Tubular Goods (OCTG) mills in the United States, primarily through its subsidiary Maverick Tube Corp.
Benteler Steel & Tube Manufacturing Corp. operates a state-of-the-art seamless steel pipe mill in Shreveport, Louisiana. Benteler is a wholly-owned subsidiary of Benteler International AG, a privately-owned company registered in Austria, which provides steel pipes and products and services used in automotive manufacturing.
Belgrade Man Sentenced to 8+ Years for Manchester Bank RobberyRead the Press Release
PORTLAND, Maine: A Belgrade man was sentenced today in U.S. District Court in Portland for bank robbery.
U.S. District Judge John A. Woodcock, Jr. sentenced Clinton Damboise, 47, to 98 months in prison followed by three years of supervised release. He was ordered to pay $3,179 in restitution. Damboise pleaded guilty on September 27, 2021.
According to court records, in September 2016, Damboise entered the Camden National Bank in Manchester, Maine, telling the teller, “This is a robbery, not a joke.” He gestured to the waistband of his jacket and said he had a gun. The teller handed Damboise cash, and he fled. Damboise, who was not wearing a mask, was identified by the teller and by the bank’s security camera footage.
The FBI, Maine State Police, Kennebec County Sheriff’s Office and Southington (Connecticut) Police Department investigated the case.
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Aryan Brotherhood Associate Pleads Guilty to a Racketeering Conspiracy that Included Murders, Assaults, and Drug Trafficking from Within California PrisonsRead the Press Release
SACRAMENTO, Calif. — Justin Petty, 41, of Los Angeles, an associate of the Aryan Brotherhood (AB) prison gang, pleaded guilty today to conspiracy to participate in a racketeering enterprise and conspiracy to distribute heroin and methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between 2011 and 2016, AB members and associates engaged in racketeering activity, committing multiple acts involving murder and drug trafficking offenses. AB members Ronald Yandell and Billy Sylvester oversaw a significant heroin and methamphetamine trafficking operation from their shared prison cell. They used smuggled cellphones to direct their drug trafficking activity from their prison cell to the streets of Sacramento and other California cities. Using a contraband cellphone, Yandell and Sylvester communicated with AB members and associates to direct drug trafficking activities, membership in the AB, order murders, and oversee other criminal activities.
In June 2019, sixteen defendants were indicted for federal racketeering (known as the “RICO” statute) and other charges. The allegations include murders, drug trafficking and other violent crimes. Nine of the defendants were inmates in California prisons, and six of those were serving life sentences for murder.
According to the plea agreement, between August and September 2016, Petty conspired with AB members at two different state prisons – CSP-Sacramento and High Desert state prison – to send packages containing food stuffed with contraband items into each prison through Petty’s employer, a contractor authorized by CDCR to pack and send sealed packages to inmates.
On Sept. 6, 2016, Petty’s package was intercepted at CSP-Sacramento and found to contain three cellphones, two phone charging cables, six grinding discs, seven lighters, one cellphone battery, seven small screw drivers – five with flat heads and two with Phillips heads, two Bluetooth ear pieces, 10 small metal saw blades, more than 20 grams of methamphetamine, and 15 grams of heroin. The contraband items were hidden inside food packages, including a box of Quaker Oats, a box of Honey Buns snacks, a box of fudge brownies, and similar items. The contraband was concealed in a manner designed to avoid detection by prison staff who would have searched the box’s contents before giving them to the inmate.
Similarly, on Sept. 6, 2016, another package from Petty was intercepted [at which prison] and found to contain about 10 cellphones, more than 200 grams of heroin, and 120 grams of methamphetamine. The cellphones and controlled substances were hidden inside boxes of Oatmeal Creme Pies and fudge brownies. They were concealed in a manner designed to avoid detection by prison staff who would have searched the box’s contents before giving them to the inmate addressee.
Other defendants who have entered guilty pleas as part of this investigation include:
Nickolas Perez – RICO conspiracy and drug trafficking conspiracy;
Donald Mazza – RICO conspiracy and conspiracy to commit murder in aid of racketeering;
Travis Burhop – RICO conspiracy and conspiracy to commit murder in aid of racketeering;
Samuel Keeton – RICO conspiracy and drug trafficking conspiracy; and
Kristen Demar – RICO conspiracy and drug trafficking conspiracy.
This case is the product of an investigation by the DEA with assistance from the California Department of Corrections and Rehabilitation, the Vallejo Police Department, the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the El Dorado County District Attorney’s Office, and the Nevada County Sheriff’s Office.
Petty is scheduled for sentencing before U.S. District Judge Kimberly J. Mueller on May 8, 2023. Petty faces a maximum statutory penalty of life in prison and a fine up to $10 million. 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 is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
Armed Methamphetamine Dealer Sentenced to 20 Years in Federal PrisonRead the Press Release
INDIANAPOLIS- Dylan Ostrum, 29, of Indianapolis, Indiana, was sentenced to 20 years in federal prison for trafficking methamphetamine and illegally possessing a firearm. Ostrum was convicted on all charged counts at the conclusion of a three-day jury trial.
According to court documents, from August 2020 to February 2021, Dylan Ostrum conspired with others to distribute methamphetamine and marijuana in Indianapolis, Indiana. On February 3, 2021, investigators executed a search warrant at Ostrum’s Indianapolis residence, where they arrested Ostrum. Ostrum admitted to his involvement in drug trafficking but acknowledged that he had removed all contraband from his home after a trafficking associate had been arrested the previous week. Investigators later located Ostrum’s vehicle at a coconspirator’s residence and recovered a loaded 9mm pistol, an extended magazine, 513 grams of actual methamphetamine, marijuana, and a digital scale.
Zachary A. Myers, United States Attorney for the Southern District of Indiana and Daryl S. McCormick, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Columbus Field Division made the announcement.
At the time of his arrest, Ostrum was on home detention after a previous felony conviction for possession of methamphetamine in Madison County, Indiana. Ostrum is prohibited from possessing a firearm due to his multiple previous felony convictions, including burglary and drug possession.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) investigated this case. The sentence was imposed by U.S. District Court Judge Sarah Evans Barker. Judge Barker also ordered that Ostrum 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 Attorney’s Bradley A. Blackington and Michelle P. Brady, who prosecuted this case.
Arizona Man Arrested for Kidnapping a Utah Teenager is Facing Federal Charges Including Intent to Engage in Sexual Conduct with a MinorRead the Press Release
SALT LAKE CITY, Utah – A federal grand jury in Utah returned an indictment charging a Tucson, Arizona man with kidnapping a Utah teen and taking the victim across state lines with the intent to engage in illegal sexual activity.
According to court documents, Tadashi Kura Kojima, 26, also known as Aaron Michael Zeman, willfully and unlawfully kidnapped a 13-year-old, who he was not related to, or had legal custody of, and took the minor across state lines with the intent to engage in illegal sexual activity. The criminal conduct resulted in an Amber Alert and the arrest of Kojima in Nebraska. Kojima has been provided notice of the intent to seek forfeiture of property, including a cell phone, gaming devices, and a 1998 White Toyota Avalon, which were used or intended to be used to commit or to facilitate the commission of the violation.
The indictment charges Kojima with kidnapping and transportation with intent to engage in criminal sexual activity. The defendant appeared in a U.S. federal court in Nebraska and is in the custody of the U.S. Marshals Service, who will transfer Kojima to Utah. Upon his arrival in Utah, Kojima will appear on his indictment at the Orrin G. Hatch United States District Courthouse in Salt Lake City, Utah.
U.S. Attorney Trina A. Higgins for the District of Utah made the announcement.
Assistant U.S. Attorney, Carol A. Dain, is prosecuting the case. The investigation is being worked jointly by the FBI, Layton Police Department and Grand Island Police Department.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Agoura Hills Real Estate Developer Agrees to Plead Guilty to Lying on Bankruptcy Petition and Filing False Federal Income Tax ReturnsRead the Press Release
LOS ANGELES – An Agoura Hills-based real estate developer has agreed to plead guilty to federal charges for failing to disclose on a bankruptcy petition that he had earned nearly $2.3 million in income and for failing to report almost $6.9 million in income on his tax returns, the Justice Department announced today.
Mark Handel, 68, has agreed to plead guilty to a two-count information charging him with making a false statement in bankruptcy and subscribing to a false tax return. Both the information and Handel’s plea agreement were filed today in United States District Court.
Handel has agreed to forfeit approximately $3,545,712, which represents the proceeds of the sale of real estate in Alameda County. Handel also has agreed to pay to the IRS approximately $1,450,070 in tax liabilities, which include civil fraud penalties.
He is expected to enter a guilty plea in the coming weeks.
According to his plea agreement, in April 2015, Handel filed a bankruptcy petition in Los Angeles in which he knowingly made false statements. Under penalty of perjury, Handel stated that he had no income from 2013 until April 2015. In fact, Handel earned approximately $2,263,221 in income from DTMM Construction Inc., his West Los Angeles-based real estate development company. Handel caused DTMM, which, according to court documents, stands for “Don’t Touch My Money,” to be registered in his wife’s name but used DTMM to deposit the profits from his own work as a real estate developer and to pay for his and his family’s living expenses.
Handel concealed his income from his creditors by depositing it into DTMM’s accounts. Among the assets Handel hid from creditors included his interest in real estate in Livermore, California.
In October 2016, Handel signed and filed a false federal income tax return for the tax year 2015 that failed to disclose approximately $1,096,175 in additional income. Handel further admitted that for the tax years 2010 to 2017, he failed to report a total of approximately $6,886,877 of income on his federal tax returns.
Handel also falsely reported a net operating loss of $7,259,119 on his 2017 federal income tax return as well as underreported his income on his 2018 tax return by $1,411,050 and admitted to failing to pay $460,408 in additional tax.
Once Handel pleads guilty to both charges, he will face a statutory maximum penalty of eight years in federal prison.
IRS Criminal Investigation and the FBI investigated this matter with assistance from the Office of the United States Trustee.
Assistant United States Attorney Thomas F. Rybarczyk of the Public Corruption and Civil Rights Section is prosecuting this case.
4 February 2023
Former Yarmouth Resident Sentenced for Identity Theft and SBA Loan Fraud ChargesRead the Press Release
PORTLAND, Maine: A former Yarmouth resident was sentenced yesterday in U.S. District Court in Portland for aggravated identity theft and making a false statement to the Small Business Administration in a loan application.
U.S. District Judge Nancy Torresen sentenced John J. Cavanaugh, Jr., 53, to three years in prison and three years of supervised release. Cavanaugh was also ordered to pay over $244,000 in restitution to the victims of his crimes.
According to court records, in November 2016, Cavanaugh applied to the Social Security Administration (SSA) for disability insurance benefits on behalf of his minor son. During the application process, Cavanaugh falsely claimed that his son had resided with him since birth, and that he and his son lived together. In fact, neither his son nor his son’s mother had ever lived with Cavanaugh.
In December 2016, Cavanaugh submitted a typewritten letter to the SSA that was purportedly authored and signed by his son’s mother. The letter falsely stated that she and her son were living with Cavanaugh. The letter was provided in support of Cavanaugh’s application for disability insurance benefits on his son’s behalf. His son’s mother did not write the letter, and the signature on the letter was not hers. Cavanaugh did not have her permission to write the letter on her behalf. The SSA approved his application for benefits and he received them until June 2018, when his son’s mother learned that he was receiving them and notified the SSA.
Also according to court records, in April 2020, Cavanaugh applied for an Economic Injury Disaster Loan through the U.S. Small Business Administration. The loans were designed to support business owners negatively affected by the COVID-19 pandemic. The online application that Cavanaugh completed asked if he was currently subject to an indictment or other formal criminal charge. Cavanaugh falsely answered “No” to this question. In fact, he was under indictment in the U.S. District Court for the District of Maine, and was subject to an order setting conditions of release that informed him that if he committed a new federal felony while on release, he was subject to additional penalties.
The FBI investigated the case with assistance from the SSA Office of Inspector General and the U.S. Small Business Administration.
Armed Career Criminal Convicted of Drug Trafficking and Firearm OffenseRead the Press Release
PENSACOLA, FLORIDA – A federal jury in Pensacola convicted Michael Tyrone Lindsey, 38, of Pensacola, on possession with intent to distribute over 50 grams of methamphetamine, possession of a firearm in furtherance of drug trafficking, and possession of a firearm by a convicted felon. The guilty verdict, returned at the conclusion of a two-day trial, was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
The charges against Lindsey were based upon an execution of an outstanding arrest warrant for Lindsey at his hotel room in Pensacola. Evidence introduced during the trial revealed after seeing over $3000 in cash and drugs in plain view on one of the beds during the arrest, a state search warrant was obtained. Officers seized over 200 grams of pure methamphetamine in a large plastic bag and a loaded handgun between the mattresses of the bed where Lindsey was reaching when was arrested, along with small amounts of various other drugs. A discovery of a Facebook video Lindsey posted of himself 4 days prior to his arrest holding a bag of meth and a gun and “rapping” about them.
Lindsey’s sentencing hearing is scheduled for May 15, 2023, at 9:00 a.m., at the United States Courthouse in Pensacola before United States District Judge M. Casey Rodgers.
Due to prior convictions for both violent and drug-related felonies qualifying Lindsey as an Armed Career Criminal, he will be subject to mandatory enhanced sentences. Lindsey faces a mandatory 10 years to life imprisonment, 5 years of supervised release, a fine of up to $10,000,000, for possession with Intent to Distribute 50 grams or more of methamphetamine; mandatory/minimum 5 years imprisonment up to life imprisonment, five years of supervised release, a fine of up to $250,000, for possession of a firearm in furtherance of drug trafficking, and up to 10 years imprisonment, 3 years of supervised release, a fine of up to $250,000 for possession of a firearm by a convicted felon.
This conviction resulted from an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pensacola Police Department, and the United States Marshals. Assistant United States Attorney Jeffrey M. Tharp prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
3 February 2023
“Clyde” in Bonnie & Clyde Duo Pleads Guilty to Armed Bank RobberyRead the Press Release
DETROIT – A Waterford man pleaded guilty yesterday in federal court in Detroit to bank robbery and weapons offenses, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
Defendant David Johnson, 54, pleaded guilty before U.S. District Judge Stephen J. Murphy, III. According to court records, in June 2018, Johnson and an accomplice walked into the Dearborn Federal Savings Bank at 4111 Telegraph Road and announced a robbery. Johnson’s accomplice pointed a short-barreled shotgun at the tellers as Johnson demanded money. The two men were unable to access the teller area and left the bank empty-handed. The men fled the scene in a car driven by Johnson’s wife and co-defendant, who was waiting nearby. Johnson’s wife then took the two men to the Citizens Bank at 23455 Eureka Road in Taylor, where Johnson and his accomplice walked in with the shotgun and announced a robbery. More than $4,000 was stolen from the Taylor bank, but the money was immediately thrown from the getaway car’s window after red dye packs placed in the bags by tellers exploded while they were driving down Eureka Road. After her arrest, Johnson’s wife told authorities the robbery was exciting and compared herself and her spouse to “Bonnie and Clyde.”
Johnson faces a maximum penalty of 20 years in federal prison for the bank robbery offense and not less than 10 years’ imprisonment for utilizing a short-barreled shotgun during the robberies. The sentencing hearing is set for May 4, 2023.
“Armed bank robbery places the lives of bank employees and customers at risk. We will continue to remove violent actors who endanger public safety from our community,” said U.S. Attorney Dawn N. Ison.
“Violent criminals who use guns during bank robberies deprive employees of their right to feel safe and secure in their workplaces,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “Thank you to the Dearborn Heights and Taylor Police Departments for their collaborative efforts during this investigation. The FBI is committed to working with our law enforcement partners to bring violent offenders to justice and to make our communities safer places to live and work.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Federal Bureau of Investigation, Dearborn Heights Police Department, and Taylor Police Department. The case is being prosecuted by Assistant U.S. Attorneys Barbara Lanning and Tara Hindelang.
Utah County Residents and an Accounting Business Charged in $11 Million COVID-Related Tax Fraud SchemeRead the Press Release
UPDATE
The defendants in this case, Zachary Bassett, Mason Warr and COS Accounting & Tax LLC, were acquitted of the charges alleged in the indictment described in the press release below.
Salt Lake City, Utah – A federal grand jury in Salt Lake City, Utah returned an indictment Wednesday charging two Utah County men and COS Accounting & Tax LLC, dba 1099 Tax Pros with a COVID-related tax fraud scheme to defraud the United States of America of millions of dollars.
According to court documents, Zachary Bassett, 39, of Provo, Mason Warr, 37, of Vineyard and COS Accounting & Tax LLC, dba 1099 Tax Pros located in Provo, participated in a fraudulent tax scheme to seek COVID-related relief funds by preparing and submitting more than one thousand tax forms to the IRS, claiming in excess of $11 million in false and fraudulent Employee Retention Credit (ERC) and sick and family leave wage credits for clients of COS Accounting.
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), enacted in March 2020, provides an employee retention tax credit (ERC) and is designed to encourage businesses to keep employees on their payroll. The Families First Coronavirus Response Act (FFCRA) requires certain employers to provide employees with paid sick leave of up to 80 hours and expanded family and medical leave of up to 10 weeks for specified reasons related to COVID-19. FFCRA provides refundable tax credits that reimburse employers for the cost of providing paid sick and family leave wages to employees for leave related to COVID-19.
“During the pandemic, the defendants allegedly took advantage of a program intended to provide critical relief for businesses impacted by the COVID-19 outbreak,” said IRS Criminal Investigation Special Agent in Charge Albert Childress. "IRS CI is committed to bringing justice to those who have exploited the pandemic for personal gain and have stolen from America’s taxpayers.”
The indictment charges Bassett, Warr and COS Accounting & Tax LLC, dba 1099 Tax Pros with conspiracy to defraud the United States, wire fraud and aiding and assisting in filing false tax returns. According to the indictment, the scheme to defraud took place from at least April 2020 through at least August 2021 in the District of Utah. Defendants were also provided notice that if convicted of the charges, defendants would forfeit to the United States of America any property constituting or derived from proceeds traceable to the scheme to defraud. An initial appearance for the defendants is scheduled for February 22, 2023, at 1p.m. at the U.S. District Court in Salt Lake City.
U.S. Attorney Trina A. Higgins for the District of Utah made the announcement.
Assistant U.S. Attorney, Jennifer K. Muyskens, for the District of Utah is prosecuting the case.
The IRS-Criminal Investigation is investigating the case.
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.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Urbandale Man Sentenced for Child Pornography OffenseRead the Press Release
Des Moines, IA – Russell Glenn Crane, age 44, of Urbandale, was sentenced today to 78 months in prison following his guilty plea to a charge of Possession of Child Pornography. Crane must also serve a five-year term of supervised release following his prison term. There is no parole in the federal system.
According to court documents, on or about January 6, 2022, Crane knowingly possessed visual depictions of child pornography, including over 20,000 images and at least four videos, some of which depicted minors younger than 12 years old. Using several electronic devices, Crane had collected the child pornography over the course of at least a decade by downloading the material from various internet sites.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Urbandale Police Department, Iowa Internet Crimes Against Children Task Force, and the Federal Bureau of Investigation Human Trafficking and Child Exploitation Task Force investigated the case. Assistant U.S. Attorney Kyle Essley prosecuted the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorney’s Offices and the Department of Justice’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Union County Investment Advisor Admits Stealing Client MoneyRead the Press Release
NEWARK, N.J. – A former investment advisor who stole over $600,000 from his clients to fund his gambling and personal expenses has pleaded guilty, U.S. Attorney Philip R. Sellinger announced today.
Mario E. Rivero Jr., 39, of Elizabeth, New Jersey, pleaded guilty on Feb. 2, 2023, before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with one count each of wire fraud and securities fraud.
According to documents filed in this case and statements made in court:
From April 2018 through November 2020, Rivero, while serving in his capacity as an investment advisor employed by a large brokerage firm, misappropriated $626,478 from five clients. Rivero, who had been entrusted to manage client funds responsibly, instead perpetrated a scheme to defraud multiple clients. He obtained his clients’ money under the fraudulent pretense that he would invest the funds, but instead, Rivero unlawfully diverted the funds to enrich himself and others.
The wire fraud and security fraud counts each carry a maximum potential penalty of 20 years in prison and maximum fines of $1 million, and $5 million, respectively. Sentencing is scheduled for June 27, 2023.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher Nielsen, Philadelphia Division, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Shawn Barnes, Chief of the OCDETF/Narcotics Unit in Newark.
Undercover Operation Lands Alleged Utah Drug Trafficker Behind BarsRead the Press Release
Salt Lake City, Utah – A 25-year-old Taylorsville man has been arrested and charged in a federal criminal complaint for possessing with intent to distribute fentanyl to an undercover federal agent.
The United States Attorney’s Office for the District of Utah filed the complaint Tuesday, January 31, 2022, charging the defendant, Flavio Cesar Mazariegos Covarrubias with possession of fentanyl with intent to distribute.
According to court documents, the FBI’s Wasatch Metro Drug Task Force (WMDTF) initiated a criminal investigation into Covarrubias and a drug trafficking organization that agents believe to be distributing large quantities of narcotics in Utah. Recently, an undercover agent purchased fentanyl from the defendant which led to his arrest. Agents located and seized approximately 5,000 blue-colored pills and approximately 40 brightly-colored pills which field-tested positive for fentanyl, a schedule II controlled substance. Brightly-colored fentanyl pills, like the pills seized from Covarrubias, are also referred to as the common street name “rainbow fentanyl,” or “skittles,” and look like candy to entice young people.
U.S. Attorney Trina A. Higgins for the District of Utah made the announcement.
Assistant U.S. Attorney, Stephen L. Nelson, for the District of Utah is prosecuting the case.
The FBI is investigating the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence. Defendants are presumed innocent unless and until proven guilty.
FBITwo Individuals from Idaho Falls Each Sentenced to over 20 Years in Federal Prison for Trafficking Methamphetamine and FentanylRead the Press Release
POCATELLO – Ernestine Delafuente and Simon Martinez, of Idaho Falls, were sentenced to federal prison for possession with the intent to distribute methamphetamine, U.S. Attorney Josh Hurwit announced today. Chief U.S. District Judge B. Lynn Winmill sentenced Delafuente to 309 months in federal prison, and Martinez to 264 months in federal prison.
According to court records and evidence presented at sentencing, from January 2020, through December 2020, Delafuente, Martinez, and multiple other individuals engaged in large-scale methamphetamine trafficking in Idaho Falls, Pocatello, and the surrounding areas. Evidence established that Delafuente was the source of supply and leader of the drug trafficking organization. Evidence further established that Delafuente obtained hundreds of pounds of methamphetamine and other drugs from a California source of supply. Martinez was identified as working directly under Delafuente in the drug trafficking organization. In December 2020, a search warrant was executed at a storage unit in Idaho Falls and law enforcement recovered more than 56 pounds of methamphetamine, and approximately 12,000 fentanyl pills.
U.S. Attorney Hurwit commended the Drug Enforcement Administration, Idaho State Police, Idaho Falls Police Department, Bonneville County Sheriff’s Office, Pocatello Police Department, Power County Sheriff’s Office, Bannock County Sheriff’s Office, Bingham County Sheriff’s Office, and Homeland Security Investigations (HSI) for their close collaboration on the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Tomah Man Sentenced to 12 Years for Distributing MethamphetamineRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Victor Pennington, 27, Tomah, Wisconsin was sentenced today by U.S. District Judge William M. Conley to 12 years in federal prison for distributing 500 grams or more of methamphetamine as part of a conspiracy. This prison term will be followed by 5 years of supervised release.
Law enforcement began their investigation of Pennington in January 2021. Through the course of their investigation, officers utilized confidential informants to purchase over 100 grams of methamphetamine from him or his co-defendant Lucas Ellwart on three occasions. Officers also determined Pennington utilized another individual, Kyle Ritchie, to purchase guns on his behalf.
Pennington is prohibited from legally possessing or purchasing firearms as a result of several felony convictions, including two Wisconsin convictions related to methamphetamine from 2019. Judge Conley sentenced Ellwart in October 2022 to 72 months imprisonment for distribution of methamphetamine, and Ritchie in September 2022 to 24 months imprisonment for making false statements during the purchase of a firearm, which he provided to Pennington.
Pennington was arrested following a 33-mile high-speed car pursuit in September 2021. Officers attempted to pull him over on his return from Minnesota—purportedly where he had purchased a large quantity of methamphetamine—but the defendant fled. During the pursuit, he instructed Ellwart, who was also in the car, to throw methamphetamine out of the car window. Officers later recovered over 700 grams of methamphetamine along the route of the chase.
In sentencing Pennington, Judge Conley noted that the defendant was under Wisconsin supervision at the time of these offenses. Judge Conley reasoned that a significant sentence was warranted due to the sheer volume of methamphetamine the defendant distributed, including to lower-level dealers in central Wisconsin, and his decision to illegally obtain guns and flee from police.
The charge against Pennington was a result of an investigation conducted by the Federal Bureau of Investigation's Central Wisconsin Narcotics Task Force comprised of investigators from FBI, Marathon County Sheriff's Office, Wausau Police Department, Wisconsin Department of Justice Division of Criminal Investigation, the Lincoln County Sheriff's Office, Wisconsin State Patrol, Everest Metro Police Department, Wisconsin's National Guard Counterdrug Program, and the Marathon County District Attorney’s Office. Assistant U.S. Attorney Taylor L. Kraus handled the prosecution.
Three Individuals and One Company Indicted for Introducing Adulterated and Misbranded Devices into Interstate Commerce and Mail Fraud ConspiracyRead the Press Release
SAN JUAN, Puerto Rico – A federal grand jury in the District of Puerto Rico returned an indictment on February 1, 2023 charging Elberto Berdut-Teruel, Wanda L. Carballo-Cabrera, María Santos-Carballo, and Magnetic Healer of PR Inc. with conspiracy and introduction of adulterated and misbranded devices with intent to defraud and mislead, conspiracy to commit mail fraud, and alteration of a device after shipment in interstate commerce.
According to court documents, the defendants unlawfully enriched themselves and operated the company Magnetic Healer of PR Inc. to sell devices containing magnets (“healing magnets”) which were advertised as being effective in the cure, mitigation, treatment, and prevention of diseases in humans, which included COVID-19, migraines, depression, insomnia, Parkinson’s disease, Alzheimer’s disease, autism, and cancer, among others. The indictment alleges that the defendants generated proceeds from the unlawful sale of the devices, which were adulterated and misbranded for purposes of the Federal Food, Drug, and Cosmetic Act (the FDCA) and seeks the forfeiture of a money judgment totaling $327,047.56.
One purpose of the FDCA is to ensure that devices and drugs sold to prevent, cure, or treat diseases are safe and effective for their intended uses and bear labeling that contain true and accurate information and have adequate directions for use. The FDCA prohibits, among other things, the knowing introduction and delivery in interstate commerce of a device that is misbranded or adulterated.
The devices that the defendants sold were misbranded under the FDCA because the defendants marketed and sold devices without notifying and obtaining the necessary approval from the United States Food and Drug Administration (FDA). The lack of approval from the FDA also made the devices adulterated for purposes of the FDCA. Furthermore, the devices were misbranded because their the labeling was false and misleading; the labeling failed to bear adequate directions for use; and the labeling lacked adequate warnings.
The defendants obtained parts for the devices via the mail from vendors outside of Puerto Rico and assembled the devices in Puerto Rico. They promoted the devices on social media and websites, including www.elbertoberdut.com and www.magneticbiotherapy.com. The defendants falsely claimed that the devices did not require FDA approval, had been submitted for FDA approval, and were FDA Authorized, using an official “FDA authorized” logo. The defendants sold the devices via the same websites and at the company’s physical address in San Juan, Puerto Rico.
Elberto Berdut-Teruel was the president, secretary, treasurer, and resident agent of Magnetic Healer of PR Inc. Wanda L. Carballo-Cabrera and María Santos-Carballo were employees of the company.
“Companies that sell medical products put their customers at risk when they misrepresent the quality, safety, or effectiveness of those products,” said W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. “Working with the FDA and other law enforcement partners, we are committed to holding individuals and companies accountable for violating the integrity of the FDA approval process, which directly impacts public health and safety.”
“The FDA continues to actively monitor the marketplace for fraudulent products related to our battle against COVID-19 as well as other diseases and conditions,” said Special Agent in Charge Justin C. Fielder, FDA Office of Criminal Investigations Miami Field Office. “We will continue to take appropriate action against those who choose to mislead consumers and attempt to subvert the legitimate device regulatory regime.”
The defendants are scheduled for their initial court appearance today before U.S. Magistrate Judge Bruce McGiverin of the U.S. District Court for the District of Puerto Rico. If convicted, the defendants face a maximum penalty of 20 years in prison. A federal district court judge would determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FDA – Office of Criminal Investigations is investigating the case. Assistant U.S. Attorney Victor O. Acevedo-Hernández is prosecuting the case.
For more information about the FDA, the products it regulates, and public safety notices, please visit www.FDA.gov or www.FDA.gov/about-fda/fda-en-espanol.
To report an adverse event or serious problem to the FDA, please visit https://www.fda.gov/safety/reporting-serious-problems-fda/how-consumers-can-report-adverse-event-or-serious-problem-fda or https://www.fda.gov/safety/reporting-serious-problems-fda/como-los-consumidores-pueden-reportar-eventos-adversos-o-problemas-serios-la-fda.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Third Codefendant Sentenced for 2021 CarjackingsRead the Press Release
A Tulsa man who took part in two carjackings was sentenced in federal court Friday, announced U.S. Attorney Clint Johnson. His two codefendants were sentenced in January.
Chief U.S. District Judge John F. Heil III sentenced Carlos Alfredo Arroliga, 27, to 168 months in federal prison followed by five years of supervised release. He previously pleaded guilty to two counts of carrying, using, and brandishing a firearm during and in relation to a crime of violence.
“Carlos Arroliga took part in two armed carjackings at apartment complexes in Tulsa. He and his two cohorts are now headed to federal prison where they can no longer threaten, terrorize and put Tulsans’ lives at risk,” said U.S. Attorney Clint Johnson. “Protecting our community from violence is a top priority for the U.S. Attorney’s Office and our partners at the Tulsa Police Department. I appreciate Chief Franklin and the officers who have dedicated themselves to seeking justice and protecting this community. Their work is critical to bringing violent offenders to account for the harm they cause to victims.”
Codefendant Raul Hernandez-Moreno, 22, was sentenced to 225 months in federal prison after he was convicted at trial of two counts of carjacking; two counts of carrying, using and brandishing a firearm during and in relation to a crime of violence; and possession of a firearm and ammunition by an alien illegally in the United States.
Codefendant Nicole Marie Rumualdo, aka Nicole Hughes, 29, was sentenced to 144 months in federal prison after pleading guilty to two counts of carrying, using, and brandishing a firearm during and in relation to a crime of violence.
On Oct. 26, 2021, Hernandez-Moreno, Rumualdo, and Arroliga were responsible for two carjackings in Tulsa. At 7:30 am, Hernandez-Moreno and his two accomplices pulled alongside a gray 2006 Mazda 3 in the Echo Trails Apartments in Tulsa. The defendants exited their blue SUV, and Rumualdo pointed a loaded handgun at the victim. Hernandez-Moreno blocked the victim from behind. Speaking in Spanish, Rumualdo demanded the victim’s wallet and cell phone. When the victim responded that he did not have his wallet and cell phone, Rumualdo snatched the victim’s keys. Hernandez-Moreno and Rumualdo drove off in the Mazda, and Arroliga followed in the blue SUV.
A few hours later, the three defendants targeted a maintenance worker in his parked vehicle at Bristol Park Apartments in Tulsa. The victim was preparing to perform repairs at the complex when the defendants pulled into a nearby spot. Hernandez-Moreno then approached the victim and pointed a loaded gun at the victim, ordering him to hand over his money. Hernandez-Moreno then took the victim’s keys and drove off in the victim’s 2010 gray Chevrolet Silverado. Arroliga and Rumualdo followed in the blue SUV.
Officers were able to locate surveillance footage of the crimes from one of the apartment complexes. The video showed the vehicle used by the defendants, a bright blue Ford Escape with a paper tag and unique license plate frame. The same day of the crime, the blue Ford Escape was observed on Garnett Road, and a traffic stop was initiated because it matched the description of the SUV seen in the surveillance video. Arroliga was driving the vehicle and taken into custody for questioning. On Oct. 27, 2020, Hernandez-Moreno and Rumualdo were found in the stolen Mazda at the Echo Trails Apartment complex. They were immediately taken into custody.
The Tulsa Police Department and U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations conducted the investigation. Assistant U.S. Attorneys Gina S. Gilmore, Joel-lyn A. McCormick, and Thomas E. Buscemi prosecuted the case.
This case was prosecuted as 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 make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime.
Statement from United States Attorney Rachael S. Rollins on Restitution Judgment in U.S. v. Cromwell and DeQuattroRead the Press Release
“The Mashpee Wampanoags put their trust in Mr. Cromwell when they elected him to represent them. Mr. Cromwell violated and exploited that trust, lining his own pockets through a fraudulent business arrangement with Mr. DeQuattro. Their bribery scheme corrupted and stalled the most significant economic development project in the Tribe’s history. Last spring, a federal jury saw through the lies and found the defendants guilty of their shameful conduct. They were later held accountable at sentencing in November, with Mr. Cromwell receiving a three-year sentence.
Now, thanks to the Mashpee Wampanoag’s current leadership and tenacious legal counsel’s zealous advocacy, our office sought and secured restitution of $209,687.54 from Mr. Cromwell payable directly to the Tribe. This restitution judgment rightly addresses the immense harm these men inflicted upon the Mashpee Wampanoag Nation – harm to its reputation through Mr. Cromwell’s corruption; to its economic development through massive project delays and lost resources; and harm to its financial resources through the significant legal fees and expenses generated in their steadfast support and compliance with our investigation. It is my hope that this judgement closes the door on a dark chapter Mr. Cromwell wrote in the Wampanoag’s rich, extraordinary and profound history. With this corrupt member gone, I am hopeful the Tribe will thrive and flourish.”
St. Louis County Man Arrested on Child Pornography ChargeRead the Press Release
ST. LOUIS – A man from St. Louis County, Missouri was arrested Friday on a federal charge of receiving of child pornography.
Christopher D. Cotton, 32, appeared in U.S. District Court in St. Louis later Friday and pleaded not guilty. He was indicted this week.
The indictment alleges that Cotton used electronic devices to receive multiple videos and images containing child pornography, including videos featuring infants.
A motion seeking to have him jailed until trial says Cotton traded child pornography with others, possessed thousands of videos and images containing child pornography and had asked for and received sexual images from minors that he’d communicated with via social media.
The motion says the investigation began with a tip to the National Center for Missing and Exploited Children after someone uploaded files containing child sexual abuse material to Dropbox.
The case was investigated by the Maryland Heights Police Department, the St. Louis County Special Investigations Unit and the FBI. Assistant U.S. Attorney Jillian Anderson prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Sioux Falls Man Sentenced to 10 Years and 10 Months in Federal Prison for Firearm & Drug CrimesRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Sioux Falls, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person and Possession with Intent to Distribute a Controlled Substance. The sentencing took place on February 2, 2023.
For the firearm conviction, Olson received the statutory maximum penalty of 10 years in custody. For the controlled substance (methamphetamine) conviction, Olson was sentenced to 10 years and 10 months of imprisonment. The sentences will run concurrently for a total of 10 years and 10 months. Olson also was sentenced to four years of supervised release following his prison term and ordered to pay $200 special assessment to the Federal Crime Victims Fund and to forfeit the firearm and ammunition involved in the case.
Olson was indicted for Possession of a Firearm by a Prohibited Person and Possession with Intent to Distribute a Controlled Substance by a federal grand jury in June of 2022. He was convicted at a jury trial in November of 2022.
According to evidence presented during trial, in June of 2021, in Sioux Falls, South Dakota, Olson, having been convicted of a felony and being an unlawful user of a controlled substance, possessed a loaded semi-automatic handgun and ammunition. Olson also possessed with intent to distribute five grams or more of methamphetamine (actual), a Schedule II controlled substance.
This case was investigated by the Sioux Falls Police Department and the ATF. Assistant U.S. Attorney Jeremy R. Jehangiri and Special Assistant U.S. Attorney Beth Ebert prosecuted the case.
The defendant was immediately remanded to the custody of the U.S. Marshals Service.
Sioux City Woman Sentenced to Five Years in Federal Prison for Illegal Possession of FirearmsRead the Press Release
Alicia Loraine Robinson, 36, from Sioux City, Iowa, was sentenced February 2, 2023, in federal court in Sioux City, Iowa. On September 6, 2022, Robinson pled guilty to possession with intent to distribute methamphetamine and being a prohibited person in possession of firearms.
Evidence at the plea and sentencing hearings showed that on December 30, 2021, in Sioux City, Iowa, law enforcement conducted a traffic stop of a vehicle Robinson was driving. Law enforcement smelled marijuana emanating from the car and noted Robinson was clutching her purse tightly on her lap. Robinson admitted she smoked marijuana in the car and that she was suspended from driving. A search of the car found drug paraphernalia and a .380 firearm in Robinson’s purse. Law enforcement then searched Robinson’s home and found a 12-gauge shotgun, over 50 grams of methamphetamine, marijuana, and other distribution-related items. On July 6, 2021, law enforcement executed a search warrant at another home associated with drug distribution. Amongst other illicit items, law enforcement found a Glock .40 handgun that had been owned by Robinson. Robinson admitted to possessing the firearms and being a user of marijuana and methamphetamine. A person that uses controlled substances is prohibited from possessing firearms.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Robinson was sentenced to 62 months’ imprisonment and must serve a 4-year term of supervised release following imprisonment. There is no parole in the federal system. Robinson remains in custody of the United States Marshal until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4010.
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Several charged in deadly alien smuggling ringRead the Press Release
BROWNSVILLE, Texas – A total of six people have been arrested on charges of alien smuggling which resulted in the death of eight, announced U.S. Attorney Alamdar S. Hamdani.
Those charged and taken into custody over the last three days include Juan Manuel Tena, 39, Pharr; Julia Isairis Torres, 37, Israel Torres Jr., 33, Erasmo Garcia III, 21, and Alexis Rafael Adorno, all of Roma; and Jose Refugio Torres, 26, Austin.
The 11-count indictment was returned Jan. 10 and unsealed upon the arrests this week.
According to the indictment, Tena was the alleged leader of the alien smuggling ring and coordinated a network of co-conspirators throughout the Southern District of Texas. Tena and his co-conspirators allegedly conspired to transport illegal aliens from the Rio Grande Valley to destinations within the United States.
As a result of that conspiracy, a total of eight aliens were killed and two others seriously injured, according to the charges.
The indictment alleges all engaged in a conspiracy to transport illegal aliens resulting in death and committed multiple counts of transporting illegal aliens resulting in death.
Tena, Julia Torres, Israel Torres, Jose Torres and Garcia are all charged with the attempted smuggling of illegal aliens in March 2019 by motor vehicle from the Rio Grande Valley to Houston. The charges allege that during the failed attempt, a vehicle rolled over and caused the deaths of four non-U.S. citizens with serious injuries to one other.
The indictment also charges Tena along with Adorno with the attempted smuggling of illegal aliens in February 2022 by watercraft from South Padre Island to the Corpus Christi area. The watercraft allegedly capsized, four illegal aliens were killed and another seriously injured.
All face up to life in prison a possible $250,000 maximum fine for the conspiracy and up to 20 years for each count of transporting illegal aliens resulting in serious bodily injury.
The indictment also includes a notice of forfeiture identifying several properties allegedly purchased with illegal proceeds of criminal activity.
The arrests came as part of Homeland Security Investigations’ (HSI) Operation Justice for All.
HSI conducted the investigation with the assistance of Border Patrol; Coast Guard; Customs and Border Protection’s Air and Marine Operations; police departments in Port Mansfield and South Padre Island; Texas Rangers; Texas Game Wardens; sheriff’s offices in Kenedy, Duval and Willacy Counties; and the Willacy County District Attorney’s Office. Assistant U.S. Attorneys Edgardo J. Rodriguez and David A. Lindenmuth are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Rocky Mount Gang Members Sentenced for Heroin & Fentanyl DistributionRead the Press Release
RALEIGH, N.C. – Two Rocky Mount men were sentenced today in connection to their role in a violent drug trafficking organization with ties to the United Blood Nation gang. The investigation revealed that Tyrone Foreman a/k/a Tye Nitty, who is awaiting sentencing, obtained kilograms of heroin and fentanyl from various sources of supply, and that Benjamine Moss, Jr. and Dentrez Randell Thomas were the primary distributors of these drugs within Nash and Edgecombe County. Moss, 31 was sentenced to 246 months in prison after having pled guilty to conspiring to distribute heroin, fentanyl, and marijuana, and possessing a firearm in furtherance of drug trafficking. Thomas, 28 was sentenced to 151 months in prison after having pled guilty to conspiring to distribute heroin, fentanyl, and marijuana.
U.S. Attorney Michael Easley stated, “These individuals peddled poison to the communities in and around Rocky Mount. The law-abiding citizens in these communities are much safer now that this source of illegal drugs has been removed from the streets.”
According to court documents and other information presented in court, Moss and Thomas were identified during a multi-year investigation into a Rocky Mount based Blood gang set led by Tyrone Foreman. Through a series of controlled purchases, traffic stops, law enforcement surveillance, and interviews of witnesses, investigators also learned that Moss and Thomas routinely carried firearms while they sold heroin and fentanyl and were tasked with threatening lower-level drug distributors at gunpoint to ensure that the organization’s drug sales continued. The investigation culminated in a December 2020 traffic stop of Thomas and Foreman on I-95 in Maryland as they returned from meeting with a New York based drug supplier. Over 3,500 dosage units of heroin/fentanyl mixture were seized during that stop.
“Stopping the flow of drugs into our communities plays a significant role in helping to decrease violent crime overall,” said ATF Special Agent in Charge Bennie Mims. “These particular gang members have been responsible for a large number of violent crimes in the area. To have them in custody and off our streets is a huge win for public safety.”
“Our goal is to reduce crime in our city by strategically targeting those involved in violent crime. It is our vision to make Rocky Mount one of the safest cities in North Carolina. These convictions are the result of long investigative work that could not have succeeded without the collaboration between federal, state and local law enforcement;” said Rocky Mount Police Chief Robert Hassell.
"I would like to express my appreciation to the law enforcement and the U.S. Attorney’s Office who were involved in this case,” said Nash County Sheriff Keith Stone. “The long hours and hard work by each agency have tremendously impacted the violence and drug trafficking surrounding our communities. Through our local, state, and federal partnerships, we continue our fight to take problems like this away from our citizens."
Edgecombe County Sheriff Cleveland Atkinson stated, "This was definitely a collaboration between all agencies. When we work together as one, there is almost nothing we can't achieve."
Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Bureau of Alcohol, Tobacco, Firearms, and Explosive, Rocky Mount Police Department, the Nash County Sheriff’s Office, and the Edgecombe County Sheriff’s Office investigated the case and Assistant U.S. Attorney Caroline Webb prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:21-CR-88-D.
Rochester Man Pleads Guilty to Cocaine ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Tavares Wilson, 41, of Rochester, NY, pleaded guilty before U.S. District Judge Frank P. Geraci, Jr. to conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of cocaine. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years in prison and a $5,000,000 fine.
Assistant U.S. Attorney Katelyn M. Hartford, who is handling the case, stated that between November 2020, and October 26, 2021, Wilson conspired with others to sell cocaine. Wilson obtained kilogram quantities of cocaine, which he then broke down into smaller quantities and re-sold. On October 26, 2021, investigators executed a search warrant at Wilson’s residence on Genesee Park Boulevard, seizing approximately 642 grams of cocaine and drug trafficking paraphernalia, including a digital scale with cocaine residue, plastic baggies, and cutting agent. Investigators also found approximately $6,594 in cash, which were proceeds from Wilson’s drug trafficking activities.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division and the Internal Revenue Service, Criminal Investigation Division, under the direction of Thomas Fattorusso, Special Agent-in-Charge.
Sentencing is scheduled for May 1, 2023, at 2:30 p.m. before Judge Geraci.
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Riverton Tax Preparer Sentenced to Federal Prison for Tax FraudRead the Press Release
SPRINGFIELD, Ill. – A Riverton, Illinois, man, Jason Hines, 50, of the 100 block of East Menard Street, was sentenced on February 1, 2023, to 18 months in federal prison, to be followed by 36 months of supervised release, for fraudulently preparing 34 federal tax returns for 20 clients resulting in a state and federal tax loss of $194,910.00. He was also ordered to pay restitution in the full amount of the loss.
During the sentencing hearing in front of United States District Judge Sue E. Myerscough, the judge considered information including that Hines had willfully prepared fraudulent tax returns often falsifying information pertaining to business property loss amounts and education credits.
A federal grand jury returned a twelve-count indictment against Hines in March 2020, which included ten counts of aiding and assisting in the preparation and presentation of false and fraudulent individual income tax returns and two counts of wire fraud. Hines pleaded guilty to one count of false and fraudulent statements and one count of wire fraud in June 2022. Hines had remained on bond since his initial appearance in May 2020.
The statutory penalties for the most serious count of conviction – wire fraud – were up to 20 years in prison, up to 36 months of supervised release, and up to a $250,000 fine.
The case investigation was conducted by the Internal Revenue Service – Criminal Investigations Division and the Illinois Department of Revenue. Assistant U.S. Attorney Timothy Bass represented the government in the prosecution.
For help and assistance in choosing reputable tax professionals for preparing tax returns, or for assistance in preparation of individual tax returns, please visit the official IRS website: https://www.irs.gov/help-resources.
Reseda Man Pleads Guilty to Selling Pound Quantities of Methamphetamine and Running Unlicensed Firearms BusinessRead the Press Release
LOS ANGELES – A San Fernando Valley man pleaded guilty today to federal charges for selling a total of approximately 17 pounds of methamphetamine and 89 firearms, including dozens of “ghost guns,” or firearms that lack serial numbers.
Julio Ernesto Lopez-Menendez, 27, a.k.a. “Iroe,” of Reseda, pleaded guilty to one count of distribution of methamphetamine and one count of engaging in the business of dealing in firearms without a license.
Lopez-Menendez has been in federal custody since his arrest in this case in April 2022.
According to his plea agreement, from January 2022 to April 2022, Lopez-Menendez engaged in transactions in which large numbers of firearms and pound quantities of methamphetamine were sold. Many of the firearms sold were so-called “ghost guns,” named because of their lack of a serial number.
Ghost guns are often assembled from parts purchased separately or in a kit. Because the separate parts do not bear serial numbers, the assembled ghost guns do not bear serial numbers, and they cannot be registered or traced.
In one deal on January 20, 2022, Lopez-Menendez sold the buyer a dozen firearms, including 10 semi-automatic “ghost gun” pistols. In a February 10 transaction, Lopez-Menendez sold the same buyer nearly one pound of methamphetamine and 14 firearms, including nine semi-automatic ghost gun pistols, for $15,000.
During the final two drug deals, Lopez-Menendez sold the buyer approximately 4.2 kilograms (9.2 pounds) and 2.2 kilograms (4.8 pounds) of methamphetamine on March 8, 2022, and March 23, 2022, respectively.
In total, Lopez-Menendez admitted to selling approximately 17 pounds of methamphetamine and 89 firearms – including 53 ghost guns.
At no time did Lopez-Menendez have a federal firearms license, nor did he have any firearms registered to him in the National Firearms Registration and Transfer Record, the central registry for all items regulated under the National Firearms Act.
United States District Judge André Birotte Jr. scheduled a May 26 sentencing hearing, at which time Lopez-Menendez will face a statutory maximum sentence of life in federal prison.
The FBI investigated this case as part of the High Intensity Drug Trafficking Area (HIDTA) program, along with the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; and the Los Angeles Police Department.
Assistant United States Attorney Jennifer Chou of the Violent and Organized Crimes Section is prosecuting this case.
Repeat Offender Sentenced to Prison for Committing Robberies While on Supervised ReleaseRead the Press Release
LAS VEGAS – A Las Vegas resident was sentenced Wednesday by U.S. District Judge James C. Mahan to four years and nine months in prison followed by three years of supervised release for carrying out a series of commercial robberies while on supervised release.
Alfonzo Dale Lobas (34) pleaded guilty in November 2022 to three counts of interference with commerce by robbery.
According to court documents, on November 19, 2021, Lobas began a term of supervised release after an earlier conviction for a series of robberies. He admitted that, between January 16 and 28, 2022, he brandished an air pistol to intimidate cashiers at three gas station and convenience stores. During a robbery on January 20, 2022, Lobas told the cashier to “empty the register and hurry up,” and on January 24, when asked by a witness why he was robbing the store, he replied “because it’s fun.” At each of the robberies, he approached the cashier and demanded money while holding what the cashier believed to be a handgun.
United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.
The FBI and the Las Vegas Metropolitan Police Department investigated the case. Assistant United States Attorney Dan Cowhig prosecuted the case.
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Raleigh County Woman Sentenced to Prison for Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – Athena Grizzle, 37, of Beckley, was sentenced today to eight months in prison, to be followed by three years of supervised release, for distributing a quantity of heroin.
According to court documents and statements made in court, on October 15, 2020, Grizzle sold a quantity of heroin to a confidential informant at a Shady Spring residence where she was staying. The West Virginia State Police Forensic Laboratory confirmed the controlled substance contained heroin and fentanyl.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Beckley/Raleigh County Drug and Violent Crime Unit. The Beckley/Raleigh County Drug and Violent Crime Unit consists of officers from the West Virginia State Police, the Raleigh County Sheriff’s Department, and the Beckley Police Department.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorneys Alex Hamner and Timothy D. Boggess prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:22-cr-12.
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Raleigh County Woman Sentenced to 10 Years in Prison for Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – Jamie Vass, 45, of Beckley, was sentenced today to 10 years in prison, to be followed by five years of supervised release, for distributing 5 grams or more of methamphetamine.
According to court documents and statements made in court, on February 7, 2022, Vass sold approximately 1 ounce of methamphetamine to a confidential informant at her Beckley residence. Vass further admitted to selling approximately 47 grams of methamphetamine to the confidential informant at her residence on March 27, 2022.
On April 5, 2022, law enforcement officers executed a search warrant at Vass’ residence and found quantities of methamphetamine and fentanyl, as well as a Ruger LC 9mm pistol, a Lorcin L22 .22-caliber pistol and $827. Vass admitted to telling the officers that she had been selling approximately 4 ounces of methamphetamine every four days and approximately 7 grams of fentanyl per week from December 2021 until her arrest on April 5, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Beckley/Raleigh County Drug and Violent Crime Unit.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorneys Andrew D. Isabell and Alex Hamner prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:22-cr-115.
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