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Monday 28 November 2022
St. Pete Armed Career Criminal Sentenced to More Than 22 Years in Prison for Possessing A FirearmRead the Press Release
Tampa, FL – U.S. District Judge Katherine Kimball Mizelle has sentenced Aunyis Cherry (27, Clearwater) to 22 years and 11 months in prison, followed by 5 years of supervised release, for being a felon in possession of a firearm. Cherry also has been ordered to forfeit the firearm. A jury found Cherry guilty on June 16, 2022.
According to testimony and evidence presented at trial, Cherry drove a car with a counterfeit license plate in the area of 14th Street South in St. Petersburg. A uniformed detective with the St. Petersburg Police Department arrived in the area to conduct a traffic stop and Cherry fled from the car but was apprehended. The vehicle’s owner couldn’t be determined, and an inventory search revealed a loaded FN Herstal pistol. The jury heard testimony that Cherry’s DNA was located in three places on the firearm, including the handle and trigger. As a previously convicted felon, Cherry is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the St. Petersburg Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorneys Mike Gordon and Craig Gestring and was tried by Assistant United States Attorneys Samantha Beckman and James Preston.
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.
St. Louis Woman Accused of Conspiring in $291,000 Pandemic FraudRead the Press Release
ST. LOUIS – A woman from St. Louis has been indicted and accused of conspiring to fraudulently obtain $291,000 from a COVID-19 pandemic relief program.
Jeannine R. Buford, 44, pleaded not guilty Monday to three felonies: wire fraud conspiracy, wire fraud and money laundering.
Within days of the passage of the Coronavirus Aid, Relief, and Economic Security ("CARES") Act in March of 2020, Jeannine Buford sent a text to another woman saying, “I'm tired of struggling it's time to put the ski mask on,” her indictment says, adding, “Especially while nobody's paying attention lol [d]ue to corona[.]"
In April of 2020, Buford changed the name of an existing company to Couture Trading Inc. with the Montana Secretary of State’s Office, the indictment says. She listed herself as the company president and Porshia L. Thomas as the director, vice president, secretary and treasurer, the indictment says.
On July 15, 2020, Thomas, with the assistance of Buford, electronically submitted a fraudulent Paycheck Protection Program loan application for the company, falsely claiming that it was an operating business located in California, had 15 employees and an average monthly payroll of $120,000, the indictment says. The application said the money would be used to pay workers and business expenses, including lease and utility payments, the indictment says.
When the bank sought six months of company bank records, Buford told Thomas how to falsify the bank statements, the indictment says.
The bank issued a $291,000 PPP loan on Sept. 8, 2020. Thomas then wired $10,000 to Buford and wrote her a $65,000 check, the indictment says. In text messages, Buford celebrated, writing “PPP Party” adding that she was going to get a luxury apartment, the indictment says.
In the next five months, Buford spent the money on personal items including food, clothes, the $14,000 deposit on a BMW X6, a couch that cost nearly $5,000 and $1,855 to rent that luxury apartment, the indictment says.
Buford was indicted November 9. The wire fraud charges carry a maximum penalty of 20 years in prison, a $250,000 fine, or both and the money laundering charge is punishable by up to 10 years in prison or the same fine.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Thomas pleaded guilty to a bank fraud charge in June and is scheduled to be sentenced December 29.
The case was investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney Derek J. Wiseman is prosecuting the case.
St. Louis Man Sentenced to 14 Years for Selling Fatal Dose of FentanylRead the Press Release
ST. LOUIS – U.S. District Judge Sarah E. Pitlyk on Monday sentenced a St. Louis man to 14 years in prison for selling fentanyl, including the fentanyl that killed a man in 2018.
Antonio D. Hubbard, 44, pleaded guilty in July to four felony charges of distribution of fentanyl and one charge of possession with intent to distribute fentanyl. Hubbard admitted selling fentanyl to a man, identified in the plea agreement as “J.L.” J.L.’s mother found him dead on Nov. 9, 2018 with a needle in his arm after he’d fallen from his wheelchair. He died of acute fentanyl, hydrocodone and ethanol intoxication.
Police investigated and traced the fentanyl to Hubbard. Investigators then purchased fentanyl from Hubbard on four occasions in April and May of 2019.
Hubbard was arrested May 15, 2019 at a local mall where he was planning to sell fentanyl to an undercover investigator again, his plea agreement says. He had 609 capsules containing fentanyl and $3,707 in cash. At his apartment on Olive Street, they found $12,781 in cash, a pill press and methadone.
“Hubbard seized upon the vulnerabilities of a victim who had already suffered a terrible injury resulting in paralysis and developed an addiction to opiates. He did so for his own profit,” Assistant U.S. Attorney Tiffany Becker wrote in a sentencing memo. In court Monday, she pointed out that Hubbard continued to sell fentanyl after learning of J.L.’s death.
The case was investigated by the St. Louis County Police Department and the FBI. Assistant U.S. Attorney Tiffany Becker is prosecuting the case.
Sex Offender Who Possessed Millions of Child Sex Abuse Images and Videos Pleads GuiltyRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that RICHARD E. SMITH, 67, of Southington, pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to possession of child pornography.
According to court documents and statements made in court, Smith’s criminal history includes convictions related to his sexual assault of boys in 1990 and 1998.
On October 1, 2020, Homeland Security Investigations (HSI) special agents conducted a court-authorized search of Smith’s Southington residence. At the time of the search, Smith’s computer was running and connected to a website dedicated to child pornography, and one of Smith’s four computer monitors displayed a Microsoft Excel spreadsheet containing numerous child pornography filenames and internet hyperlinks. Investigators seized Smith’s computer and electronic devices. Forensic analysis of the seized devices revealed millions of images and videos depicting the sexual abuse of children.
Smith has been detained since his arrest on October 1, 2020.
Judge Meyer scheduled sentencing for February 17, 2023, at which time Smith faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of 20 years. The penalties in this case are enhanced based on Smith’s criminal history.
This matter has been investigated by Homeland Security Investigations (HSI) with the assistance of the Southington Police Department. The case is being prosecuted by Assistant U.S. Attorneys Patrick J. Doherty and Nancy V. Gifford through the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation.
For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Repeat Offender Sentenced to More Than 10 Years in Federal Prison for Possessing Child Sex Abuse ImagesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that ROBERT J. MOSLEY, 55, formerly of Bridgeport, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 121 months of imprisonment for possessing and distributing numerous images depicting the sexual abuse of children.
According to court documents and statements made in court, in 2016, Mosley was convicted in Connecticut Superior Court of possession of child pornography in the second degree. He was sentenced for that offense to 10 years in jail, execution suspended after six years, and 20 years of probation. Mosley was released on parole in November 2018.
On January 28, 2020, Connecticut parole officers and Connecticut state troopers conducted a home visit at Mosley’s residence. During the visit, Mosley was found in possession of an unapproved smart phone, and an approved mobile phone that contained suspected child pornography. Investigators seized both phones and Mosley was remanded to custody. Subsequent analysis of the seized phones and a cloud storage account maintained by Mosley revealed thousands of images and hundreds of video depicting the sexual abuse of children, primarily boys between the ages of 2 and 14. In addition, analysis of Mosley’s e-mail account revealed that he sent numerous e-mails soliciting child pornography, sent images of child pornography to others, and sent links to his cloud storage account.
Mosley has been detained since January 28, 2020. On September 22, 2021, he pleaded guilty to possession of child pornography.
The penalties in this case were enhanced based on Mosley’s criminal history.
This matter was investigated by Homeland Security Investigations (HSI) and the Connecticut State Police, with the assistance of the Connecticut Department of Correction Division of Parole and Community Services. The case was prosecuted by Assistant U.S. Attorney Nathaniel J. Gentile.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Prince George’s County Man Pleads Guilty to a Federal Wire Fraud Conspiracy to Obtain over $750,000 in COVID-19 CARES Act Loans and Unemployment Insurance BenefitsRead the Press Release
Greenbelt, Maryland – Jaleel Phillips, age 25, of Capital Heights, Maryland, pleaded guilty today to a federal wire fraud conspiracy, in relation to a scheme to unlawfully obtain COVID-19 relief loans and unemployment benefits.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge Troy W. Springer, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General; Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Special Agent in Charge Amaleka McCall-Brathwaite of the Small Business Administration - Office of Inspector General, Eastern Region, and Acting Special Agent in Charge Quenton Sallows, of the Mid-Atlantic Region, Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG).
According to his plea agreement, electronic records linked Jaleel Phillips and his co-conspirator to a number of fraudulent Paycheck Protection Program loan applications (PPP), Economic Injury Disaster loan applications (EIDL), and unemployment insurance claims. As detailed in the statement of facts, Phillips and his co-conspirator created fictitious aliases, used the personal identifying information of real people, and used defunct corporate entities or new business entities with no actual business operations to apply for EIDL and PPP loans, and unemployment benefits.
Phillips admitted that as part of the conspiracy, several financial accounts and email accounts were opened using aliases that had been used to apply for the fraudulent benefits, including “Kenneth Williams,” “Allen Gator,” “Lawrence Robinson,” and “Jordan Gilmore.” The fraudulently obtained PPP and EIDL loans and unemployment insurance claims were deposited into the bank accounts opened in the names of the aliases. The money was then withdrawn by Phillips and his co-conspirator through ATM withdrawals and purchases made on the associated debit and credit cards or transferred between the various financial accounts established in the aliases’ names. For example, Phillips engaged in multiple online and in-store transactions using debit cards embossed with the names of multiple fake identities and tied to bank accounts used in the fraud. Phillips admitted that he had access to accounts and debit cards receiving more than $750,000 in fraudulently obtained COVID-19 benefits.
“This was a brazen scheme of staggering proportions,” said Darrell J. Waldon, IRS Criminal Investigation Special Agent in Charge of the Washington D.C. Field Office. “The defendant and his co-conspirator prioritized their own greed, submitting a number of fraudulent Paycheck Protection Program loan applications, Economic Injury Disaster loan applications, and unemployment insurance claims. Today’s plea sends a clear message that the IRS Criminal Investigation Special Agents and our law enforcement partners, remain vigilant and will vigorously pursue those who attempt to enrich themselves through fraudulent means.”
Jaleel Phillips faces a maximum sentence of 30 years in federal prison for the wire fraud conspiracy. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. No sentencing date has been set by the Court.
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 DOL-OIG, IRS-CI, SBA-OIG, FDIC-OIG, and the Mississippi Attorney General’s Office for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Harry M. Gruber, who is prosecuting the federal case. He also thanked the Office of Mississippi Attorney General Lynn Fitch-Public Integrity Division, for its assistance.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to report fraud, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud.
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Pharr man heads to prison for trafficking over $600K of narcoticsRead the Press Release
McALLEN, Texas – A 31-year-old Texan has been sent to prison following his conviction of smuggling heroin and meth, announced U.S. Attorney Jennifer B. Lowery.
Gerardo Jimenez pleaded guilty May 12.
Today, U.S. District Judge Micaela Alvarez ordered Jimenez to serve 188 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence regarding Jimenez’s smuggling attempt and how the large amounts of heroin and meth Jimenez smuggled were a danger to the community. In handing down the sentence, the court noted that drug transportation is a serious offense and that Jimenez willingly participated as a transporter on behalf of the cartel.
At the time of his plea, Jimenez admitted that on Nov. 3, 2020, he knowingly entered the Hidalgo Border Patrol (BP) Port of Entry with drugs in his car.
Upon inspection, a K-9 alerted authorities to the hood of Jimenez’s vehicle. There, they discovered four kilograms of heroin and two kilograms of 100% pure meth concealed in the battery of his car.
The drugs had an estimated street value of $654,000.
Jimenez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Eliza Carmen Rodriguez prosecuted the case.
Nashua Woman Pleads Guilty to Fraudulently Obtaining Food Stamps and Medicaid BenefitsRead the Press Release
CONCORD – Kaylie Esquivel Arizmendi, 32, of Nashua, pleaded guilty in federal court to making false statements, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, Arizmendi was receiving Supplemental Nutritional Agricultural (SNAP) benefits, better known as food stamps, and Medicaid benefits. In New Hampshire, the state Department of Health and Human Services administers the food stamp and Medicaid programs. Because eligibility is tied to household resources, applicants are required to provide truthful information to the state and timely notify the state if their household’s composition or income changes.
Arizmendi married her spouse in February 2015. On March 3, 2015, she applied to the Department of Health and Human Services for food stamps and Medicaid benefits. She claimed under penalty of perjury that she was unmarried. Between March 2015 and November 2020, Arizmendi continued to falsely represent to the state that she was unmarried and claimed she and her spouse had no personal relationship to one another. For example, she provided a fraudulent “Rental Verification Request” identifying her spouse as a “Landlord, Manager or Housing Official.”
If Arizmendi truthfully disclosed her marital status, her spouse’s income would have reduced her eligibility for benefits. In total, Arizmendi obtained $64,401 in food stamps and Medicaid benefits she was not entitled to receive.
Arizmendi is scheduled to be sentenced on March 13, 2023.
This matter was investigated by the New Hampshire Department of Health and Human Services, with assistance from the U.S. Department of Labor’s Office of the Inspector General and U.S. Department of Agriculture’s Office of the Inspector General. The case is being prosecuted by Assistant U.S. Attorney Alexander S. Chen.
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Mogadore Man Sentenced to Prison for Threatening to Retaliate Against WitnessRead the Press Release
CLEVELAND – Andrew F. Dodson, 33, of Mogadore, Ohio, was sentenced today to more than four years – or 55 months – in prison by U.S. District Judge Donald C. Nugent. Judge Nugent pronounced the sentence after Dodson was convicted by a federal jury on July 27, 2022, of obstructing justice by retaliating against a witness.
“Threatening a witness is a serious offense and, as evident by this sentence, it is a crime that can lead to significant time in a federal prison,” said First Assistant U.S. Attorney Michell M. Baeppler. “Ensuring the safety of federal witnesses is a critical part of the mission of the Justice Department.”
“The FBI is committed to safeguarding witnesses upholding their civic responsibility. Today’s sentence serves as a message to others who believe they can skirt the law and subvert the judicial process without implication,” said FBI Cleveland Special Agent in Charge Gregory Nelsen.
According to court records and evidence presented at trial, in July 2021, federal authorities began an investigation into Dodson following his arrest for OVI and possession of chemicals that could be used to make explosive devices. During the arrest and the impounding of his vehicle, court documents state that authorities discovered a large cache of explosive precursors and a black tactical bag with the words “POLICE” on it containing ear protection and safety glasses.
Authorities later obtained records that showed Dodson had purchased approximately 50 pounds of explosive materials. Court documents state that Dodson claimed that these materials were used to make smoke bombs.
During the investigation, federal authorities obtained records that showed Dodson engaged in online conversations with others, including one conversation in which he stated that “people call me the Unabomber.” Dodson also sent a user a photograph of 157 improvised explosive devices, screenshots of a remote detonator and 12 radio antenna devices. Court documents state that Dodson told other users in online conversations that he had improvised explosive devices that contained approximately 1,000 BBs per device and later tried to sell users body armor and a flamethrower.
On August 4, 2021, FBI agents executed a search warrant at Dodson’s Mogadore area residence and seized various items, including a tactical vest, a firearm, ammunition and a black flame thrower. Authorities also searched a storage unit in Akron belonging to Dodson and seized several gas masks, a shirt with a swastika, a detonator with the remote, a box of pyrotechnic signal shells, fusing with safety igniters and a bag of pyrotechnic fuses. Dodson was later arrested.
During the investigation, court documents state that it was determined that Dodson had lied to federal authorities, and he subsequently pleaded guilty in October 2021 to making false statements to an agency of the United States.
Court records show that Dodson was allowed to remain on bond and in the community following his guilty plea. During this time, Dodson came into possession of a witness statement given to federal authorities during the prior investigation. Court records state that Dodson then contacted and threatened the witness with the intent to retaliate due to the witness’s cooperation.
Dodson’s sentence of 55 months will be served consecutive to his previous sentence of 8 months for making false statements.
This case was investigated by the Cleveland FBI and was prosecuted by Assistant U.S. Attorneys Brian S. Deckert and Jason W. White.
Mobile Drug Dealer Sentenced to Ten Years in PrisonRead the Press Release
MOBILE, AL – A Mobile man was sentenced to ten years in prison for conspiring to distribute methamphetamine.
According to court documents, Broderick J. Carson, 40, was arrested by narcotics detectives in January 2021, following the execution of search warrants at his home and a storefront that he maintained in Mobile. Detectives obtained the search warrants after conducting several controlled purchases of drugs from Carson using a confidential informant. At Carson’s home, detectives recovered a shoebox containing more than $15,000 in cash, some of which had serial numbers matching money that detectives had used during a previous controlled purchase of drugs. At Carson’s storefront, detectives recovered, among other things, more than a pound of 99% pure methamphetamine, 43 grams of crack cocaine, 81 grams of powder cocaine, digital scales, and other drug paraphernalia. Detectives interviewed Carson, who confessed to possessing the drugs with intent to distribute them. A later search of Carson’s cell phone revealed dozens of messages regarding drug trafficking dating to at least July 2020.
Chief United States District Judge Jeffrey U. Beaverstock ordered Carson to serve a five-year term of supervised release upon his release from prison, during which time he will undergo drug testing and treatment. The court did not impose a fine, but Chief Judge Beaverstock ordered Carson to pay $100 in special assessments.
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
The Mobile Police Department’s Narcotics and Vice Unit and the Drug Enforcement Administration investigated the case.
Assistant U.S. Attorney Justin Roller prosecuted the case on behalf of the United States.
Michigan Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Dashea Lasal Thomas, also known as “Dye,” 27, of Inkster, Michigan, was sentenced today to three years and 10 months in prison, to be followed by three years of supervised release, for distribution of methamphetamine.
According to court documents and statements made in court, on November 6, 2019, Thomas sold approximately 24 grams of methamphetamine to a confidential informant in Huntington. Thomas admitted to the transaction and also admitted to selling approximately 23 grams of methamphetamine on October 28, 2019, and approximately 4 grams of fentanyl on December 4, 2019, each time to a confidential informant in Huntington.
On May 11, 2021, Thomas was a passenger in a vehicle stopped by law enforcement officers in Huntington. Thomas admitted to possessing approximately 4 grams of cocaine base, also known as “crack,” and $3,500 found in the vehicle. Thomas further admitted that he intended to sell the crack for money, and that the cash was drug proceeds.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Huntington Violent Crime and Drug Task Force and the Huntington Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Courtney L. Cremeans 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. 3:22-cr-37.
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Miami Business Owner Pleads Guilty to Payroll Tax CrimeRead the Press Release
A Miami business owner pleaded guilty today to willfully failing to pay over employment taxes to the IRS. The proceeding was held before U.S. Magistrate Judge Lauren Louis. A sentencing date will be set by U.S. District Judge K. Michael Moore.
According to court documents and statements made in court, Ari Weingrad owned and operated two car rental companies, Rent Max Miami, Inc. and Rent Max North, Inc., both of which had locations throughout Florida. As the sole owner and CEO of Rent Max Miami, and as the co-owner and president of Rent Max North, Weingrad knew he was responsible for collecting, accounting for and paying over payroll taxes withheld from his employees’ wages to the IRS. Between 2011 and 2016, however, Weingrad withheld from his employees but did not pay over more than $850,000 in employment taxes owed to the IRS. Instead, he caused Rent Max Miami to spend corporate funds to pay discretionary expenses, including a $50,000 cashier’s check to himself, a $45,000 in cashier’s checks payable to his wife, and expenses related to a 55-foot yacht.
Weingrad faces a maximum penalty of five years in prison for willful failure to pay over employment taxes. He also faces, as well as a period of supervised release restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Tax Division, and U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida, and Special Agent in Charge Matthew D. Line of IRS-Criminal Investigation Miami Field Office made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorney Patrick Elwell of the Tax Division and Assistant U.S. Attorney Ana Maria Martinez of the Southern District of Florida are prosecuting the case.
Miami Business Owner Pleads Guilty to Payroll Tax CrimeRead the Press Release
MIAMI – Today Miami resident Ari P. Weingrad, 51, pled guilty to willfully failing to pay over employment taxes to the Internal Revenue Service (IRS). The proceeding was held before U.S. Magistrate Judge Lauren Louis.
According to court documents, Weingrad owned and operated two car rental companies, Rent Max Miami Inc. and Rent Max North Inc., both of which had locations throughout Florida. As the sole owner and chief executive officer of Rent Max Miami and as the co-owner and president of Rent Max North, Weingrad knew he was responsible for collecting, accounting for, and paying over payroll taxes withheld from his employees’ wages to the IRS. Between 2011 and 2016, however, he withheld from his employees but failed to pay approximately $850,000 in employment taxes owed to the IRS. Instead, he caused Rent Max Miami to spend corporate funds to pay discretionary expenses, including a $50,000 cashier’s check to himself, $45,000 in cashier’s checks payable to his wife, and expenses related to a 55-foot yacht.
Weingrad faces a maximum penalty of five years in prison as well as a period of supervised release and monetary penalties. A sentencing date will be set by U.S. District Judge K. Michael Moore.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida; acting Deputy Assistant Attorney General Stuart M. Goldberg, Tax Division, U.S. Department of Justice; and Special Agent in Charge Matthew D. Line, IRS Criminal Investigation, Miami Field Office, made the announcement.
IRS Criminal Investigation, Miami Field Office, investigated the case. Assistant U.S. Attorney Ana Maria Martinez and Trial Attorney Patrick Elwell of the Tax Division are prosecuting it.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 22-CR-20342.
Member of Baltimore Gang Sentenced to 40 Years in Federal Prison for Racketeering Conspiracies, Including Murders, Attempted Murders, Carjackings, and Armed RobberiesRead the Press Release
Baltimore, Maryland – U.S. District Judge Stephanie A. Gallagher today sentenced Rashaud Nesmith, a/k/a Shaud, age 21, of Baltimore, Maryland, to 40 years in federal prison, followed by five years of supervised release, for a racketeering conspiracy charge in connection with Nesmith’s participation in a group that conspired to commit multiple armed carjackings and robberies throughout Baltimore City, as well as for a second racketeering charge in connection with his participation in the violent street gang known as Cruddy Conniving Crutballs or Triple C, a group that conspired to commit other violent acts, including attempted murder and murder, in Baltimore City.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and Commissioner Michael Harrison of the Baltimore Police Department.
“Rashaud Nesmith’s mayhem is over and he’s now being held responsible for his actions,” said United States Attorney Erek L. Barron. “I want to express my appreciation to our law enforcement partners for the tremendous investigation that led to this prosecution. We will hold accountable those who commit violence in our communities, but we also offer a helping hand to assist at-risk individuals to avoid this result.”
“Rashaud Nesmith participated in murders, non-fatal shootings, carjackings, armed robberies, and more. The victims were innocent, simply going about their lives in the city and attacked without provocation. Now he will spend decades in prison what he’s done,” said ATF Baltimore Special Agent in Charge Toni M. Crosby. “By applying the crime gun intelligence model of investigating, ATF and our law enforcement partners will continue to do everything in our power to remove violent offenders from Baltimore's streets.”
“I want to extend my gratitude to the U.S. Attorney’s Office and all of our law enforcement partners for their tireless efforts. This case is another great example of the collaborative work in using all the tools in our toolbelt to continue to identify, arrest and convict violent offenders,” said Commissioner Michael Harrison. “I hope that this sentence will bring some closure to the families, friends and loved ones.”
Nesmith admitted that in connection with the carjacking and robbery conspiracy, he participated in a carjacking, two armed robberies and an attempted armed robbery. During the commission of the crimes, two victims were shot and killed, and one victim was shot and seriously injured. Specifically, Nesmith participated in a carjacking on April 19, 2019, where a firearm was brandished; the July 23, 2019 robbery of Devon Chavis during which at least one member of the conspiracy discharged a firearm, striking and killing Chavis; the August 1, 2019, attempted robbery of Kendrick Sharpe, during which at least one member of the conspiracy fired a gun, striking and killing Sharpe; and the August 8, 2019 robbery of a victim, during which at least one member of the conspiracy fired a gun, striking and severely injuring the victim. In addition, Nesmith knew that his co-conspirators would commit other acts that he did not participate in, including a carjacking on June 12, 2019, where an individual was shot and killed, and five additional carjackings committed from June 12, 2019, through July 29, 2019.
Nesmith also admitted to participating in the Triple C conspiracy. According to Nesmith’s plea agreement, as a member of Triple C, Nesmith and other gang members engaged in a pattern of criminal racketeering activity between 2015 and 2020, including more than a dozen murders and numerous non-fatal shootings, robberies, and carjackings, in order to promote the reputation of Triple C and to command respect from the neighborhood. Other spin-offs of the gang are “SCL” and recently, “TRD.”
As detailed in the plea agreement, the gang benefitted financially from, and affected interstate commerce by, selling narcotics, murdering drug dealers, taking contract killings, and engaging in street robberies. Nesmith acknowledged that as part of his activities with Triple C, he distributed controlled substances, including crack cocaine. Triple C members also robbed dice games for cash and occasionally carjacked vehicles. Members divided the proceeds of the robberies and murders among members who participated, and they often contacted each other to commit a robbery if that member needed money.
Also, according to the plea agreement, Triple C members routinely used social media to identify and locate victims and to communicate with each other and share information concerning possible retaliation for violent crimes committed by gang members. Triple C members and associates used at least 14 firearms to commit crimes, often trading firearms with each other or other groups to avoid detection through ballistic evidence. They limited conversations about criminal plans to members of Triple C and critiqued each other after committing crimes regarding ways to improve their actions. Nesmith admitted that it was reasonably foreseeable to him that members of the conspiracy would commit additional murders, attempted murders, carjackings, and robberies.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
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 make our neighborhoods safer for everyone. Project Safe Neighborhoods (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.
United States Attorney Erek L. Barron commended the ATF and the Baltimore Police Department for their work in these investigations and thanked the FBI and the Office of the Baltimore City State’s Attorney for their assistance in the investigations and prosecution. Mr. Barron thanked Assistant U.S. Attorneys Patricia C. McLane and Brandon K. Moore, who prosecuted the case.
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Medical Doctor to Pay $86,506.30 to Resolve Civil Liability for Alleged Violations of the False Claims ActRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Dr. Musaddiq Nazeeri, of Lebanon, Pennsylvania, has agreed to pay the United States $86,506.30 to resolve civil liability for alleged violations of the False Claims Act.
According to the United States Attorney Gerard M. Karam, between February 10, 2021 and January 21, 2022, Dr. Nazeeri billed Medicare for certain services that were not supported by the medical record. During the above timeframe, Dr. Nazeeri submitted Evaluation & Management (E&M) claims when the only service rendered was the administration of the COVID-19 vaccine. It is those type claims that were not supported by the medical record. Dr. Nazeeri cooperated with the investigation.
“The U.S. Attorney’s Office is dedicated to combatting fraud and abuse impacting taxpayer-funded programs,” said United States Attorney Karam. “We use every tool at our disposal to do so, and this resolution reflects that commitment.”
“Investigating violations of the False Claims Act is a top priority,” said Maureen R. Dixon, Special Agent in Charge for the Office of the Inspector General, U.S. Department of Health and Human Services. “We will continue to work with the U.S. Attorney’s Office to ensure the integrity of the Medicare program.”
This Settlement Agreement is neither an admission of liability by Dr. Nazeeri nor a concession by the United States that its claims are not well founded.
This matter was investigated by the U.S. Department of Health and Human Services Office of Inspector General. The investigation was handled by Assistant United States Attorney, Tamara Haken, and the Affirmative Civil Enforcement (ACE) Unit within the U.S. Attorney’s Office.
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Maryland Man Pleads Guilty to Defrauding Medicaid of More than $700,000 in Scheme Involving Personal Care ServicesRead the Press Release
WASHINGTON – Joseph Tamjong, 51, of Lanham, Maryland, pleaded guilty today to defrauding the D.C. Medicaid program out of $733,405.
The announcement was made by U.S. Attorney Matthew M. Graves, Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division, Maureen R. Dixon, Special Agent in Charge of the U.S. Department of Health and Human Services’ Office of Inspector General for the region that includes Washington, D.C., and Daniel W. Lucas, Inspector General for the District of Columbia.
Tamjong pleaded guilty in the U.S. District Court for the District of Columbia to health care fraud, which carries a statutory maximum penalty of 10 years in prison. Under federal sentencing guidelines, Tamjong faces a likely recommended sentence of between 27 and 33 months in prison. He has agreed to pay $733,405 in restitution and $396,155 in a forfeiture money judgment. The Honorable Christopher R. Cooper, who accepted Tamjong’s guilty plea, scheduled sentencing for March 7, 2023.
In court documents, Tamjong admitted that between December 2014 and February 2022, he was employed as a Personal Care Aide and/or a Participant-Directed Worker to provide personal care aide services to residents of the District of Columbia who needed assistance performing activities of daily living, such as getting in and out of bed, bathing, dressing, and eating. Tamjong admitted that he submitted false timesheets that claimed he provided these personal care services when in fact he did not.
As part of his scheme, he even caused Medicaid to be billed for approximately 3,400 hours of services that he purportedly provided when he actually was traveling internationally. On 156 separate occasions, he also caused Medicaid to be billed for 24 hours of services that he allegedly provided in one day.
The FBI, the Department of Health and Human Services’ Office of Inspector General, the District of Columbia’s Office of the Inspector General’s Medicaid Fraud Control Unit, and the U.S. Attorney’s Office are committed to investigating and prosecuting individuals who defraud the D.C. Medicaid program.
Tamjong is the twelfth former personal care aide since August 2018 to plead guilty to defrauding Medicaid in the U.S. District Court for the District of Columbia. Six of those aides were sentenced to 13 months in prison; a seventh and eighth were sentenced respectively to 15 months and 10 months.
The government urges the public to provide tips and assistance to stop health care fraud. If you have information about individuals committing health care fraud, please call the Department of Health and Human Services’ Office of Inspector General hotline at (800) HHS‑TIPS [(800) 447-8477] or the D.C. Office of the Inspector General at (800) 724-TIPS [(800) 274-8477].
This case is being prosecuted by Assistant U.S. Attorney Kondi Kleinman with assistance from Paralegal Specialist Michon Tart.
Liberty County Man and Woman Behind My Buddy Loans Sentenced for Fraud Related to COVID ReliefRead the Press Release
TEXARKANA, Texas– A Cleveland, Texas man and woman have been sentenced to federal prison for wire fraud violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Clifton Pape, 47, and Sally Jung, 59, each pleaded guilty on May 6, 2022 to wire fraud violations and were sentenced to federal prison today by U.S. District Judge Robert W. Schroeder III. Pape was sentenced to 121 months in federal prison and Jung received a sentence of 66 months in federal prison. They were also ordered to forfeit $680,710.31 and pay more than $3.7 million in monetary penalties.
According to court documents, Pape and Jung operated a sophisticated telemarketing scheme under the name My Buddy Loans from a house in Cleveland, Texas. In exchange for a fee, My Buddy Loans took personal identifying information from victims and promised to file an application for an agricultural grant, which they said was available to those who owned as little as one acre of land. Instead, Pape and Jung actually filed fraudulent EIDL applications with the SBA that contained the victims’ personal identification information. Based on these fraudulent applications, the SBA issued more than $1.56 million in EIDL Advances to people who were not eligible. Pape and Jung also submitted applications for an additional $1.44 million in EIDL Advances that were not funded because--among other reasons--the congressionally appropriated funds for the EILD Advance program were exhausted.
Pape and Jung used Square’s credit and debit card processing service to charge third parties the fee. Pape and Jung completed at least 700 successful charges, obtaining at least $700,000 in fees. Pape and Jung then transferred the proceeds of the fraud scheme into a bank account they controlled. On one occasion, Pape used the fraud proceeds to pay a traffic ticket. On another occasion, Pape and Jung used more than $3600 from the fraud scheme to pay for a stay at La Cantera Resort in San Antonio. A picture from that stay shows Pape and Jung celebrating over sparkling wine and other beverages.
“This investigation closed down one of the largest COVID fraud schemes in the country in terms of the number of fraudulent EIDL applications,” said U.S. Attorney Brit Featherston. “Well intended and needed economic assistance (taxpayer dollars) was brazenly stolen from legitimate deserving applicants. We are asking those with information about the My Buddy Loan fraud scheme, including those who believe they may be victims, to call the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or file a complaint using the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.”
“The Small Business Administration’s Economic Injury Disaster Loan program (EIDL) was designed to help businesses adversely affected by the pandemic,” said Resident Special Agent in Charge William Mack of the U.S. Secret Service Tyler Resident Office. “Clifton Pape and Sally Jung, however, viewed the government’s direct response to the unprecedented size and scope of pandemic relief fraud as an opportunity to illicitly line their own pockets. As this sentencing illustrates, the Secret Service, along with its law enforcement partners, is committed to holding these criminals accountable for their fraudulent activities.”
“Conspiring to defraud SBA’s programs is a flagrant attempt to rob the nation’s small businesses of vital funds that are used to assist in building the economy,” said SBA OIG’s Central Region Special Agent in Charge Sharon Johnson. “OIG is focused on rooting out bad actors in these vital SBA programs. I want to thank the Department of Justice and our law enforcement partners for their dedication to justice.”
The CARES Act is a federal law enacted in March 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization or EIDL advances and low-interest loans to small businesses to meet financial obligations and operating expenses that could have been met had the disaster not occurred. Under the EIDL program applicants were eligible for a forgivable advance of up to $10,000 if the applicant had ten or more employees.
This case was investigated by the U.S. Secret Service and the Small Business Administration-Office of Inspector General and prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.
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Las Vegas Man Sentenced to Prison for Fraud Scheme Targeting Church FundsRead the Press Release
LAS VEGAS — A Las Vegas man was sentenced today by U.S. District Judge Gloria M. Navarro to 45 months in prison followed by three years of supervised release for his role in a conspiracy to fraudulently obtain money from accounts held by members of the Pension Fund of the Christian Church and the Lutheran Church Extension Fund.
Oluremi Akinleye (42) pleaded guilty in June 2022 to conspiracy to commit wire fraud, possession of 15 or more counterfeit and unauthorized access devices, and aggravated identity theft.
According to court documents, from November 2017 to July 2018, Akinleye and his co-conspirators conspired to fraudulently obtain money from pension accounts held by members of the Pension Fund of the Christian Church and the Lutheran Church Extension Fund by impersonating those members. The funds provide pension and retirement systems for members of the religious community, including ministers. As part of the scheme, Akinleye and his co-conspirators obtained the names and personal identifying information of account holders, and then used that information to make withdrawals and transfers from the victim accounts to accounts the conspirators controlled. As a result of the scheme, Akinleye and his co-conspirators attempted to fraudulently obtain over $400,000 from the two funds.
U.S. 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 investigated the case; and Assistant U.S. Attorney Jim Fang prosecuted the case.
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Kyle Man Indicted for Second Degree MurderRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced a federal grand jury has indicted a Kyle man for Second Degree Murder.
Scotty Old Horse, age 27, was indicted in November of 2022. He appeared before U.S. Magistrate Judge Daneta Wollmann on November 23, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on November 2, 2022, at Kyle, South Dakota, Old Horse killed a man by striking him with a vehicle.
The charge is merely an accusation and Old Horse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Oglala Sioux Tribe Department of Public Safety and the Federal Bureau of Investigation. Assistant U.S. Attorney Kelsey Blair is prosecuting the case.
Old Horse was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Kentucky Oil Operator Pleads Guilty to Negligent Violation of Clean Water ActRead the Press Release
A Kentucky man pleaded guilty today to a negligent violation of the Clean Water Act. The charge stems from a 2018 discharge of oil and brine water into a small creek near an oil tank battery and eventually into other downstream creeks.
According to court documents, Joshua M. Franklin, 33, of Columbia, was an operator at an oil lease tank battery in Columbia. His duties included ensuring that brine water, a waste product from oil production, was separated from the oil before it was sold to customers. On Aug. 22, 2018, the oil/water separator at the tank battery used to remove brine water from a tank holding oil ready for sale was not functioning. To separate the brine water from the oil tank, Franklin instead attached a conduit to the oil tank’s discharge valve, opened the valve and left the site. As a result, approximately 100 barrels (4,000 gallons) of oil were discharged into a nearby tributary, which led to other creeks. The oil could be seen in a downstream creek, Brush Creek, over a mile away from the tank battery.
“This prosecution sends a clear and deterrent message to those who would cut corners and cause significant pollution of our nation’s waters,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division.
“The Clean Water Act was designed to protect our nation’s waters from pollution that can damage the environment and threaten human health,” said Acting Assistant Administrator Larry Starfield of the U.S. Environmental Protection Agency (EPA) Office of Enforcement and Compliance Assurance. “This case shows that those who violate the law can expect to be held accountable by EPA and our law enforcement partners.”
The Kentucky Department of Environmental Protection (KDEP) conducted the initial cleanup immediately after the oil spill. The EPA then assumed cleanup tasks for the spill, which took until April of 2019.
Franklin entered a plea agreement where he agrees to pay a restitution of $10,000 to the EPA and KDEP, based on a limited ability to pay. He is scheduled to be sentenced on March 1, 2023, and faces a maximum penalty of one year in prison and a fine of $100,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The EPA Criminal Investigation Division investigated the case.
Senior Trial Attorneys Ryan Connors and Daniel Dooher of the Environment and Natural Resources Division’s Environmental Crimes Section prosecuted the case.
Inmate admits to the stabbing of another inmateRead the Press Release
CLARKSBURG, WEST VIRGINIA – Ronnie Legette, an inmate at United States Penitentiary Hazleton, in Bruceton Mills, West Virginia, has admitted to stabbing another inmate, killing him, United States Attorney William Ihlenfeld announced.
Legette, 39, pleaded guilty today one count of “Voluntary Manslaughter.” Legette admitted to stabbing Demario Porter, another inmate, in a heat of passion on September 17, 2018, in Preston County.
Legette faces up to 15 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Jennifer M. Conklin is prosecuting the case on behalf of the government. The Bureau of Prisons investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Huntington Man Sentenced to Prison for Federal Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – Donnie Earl Jefferson Jr., 35, of Huntington, was sentenced today to one year and nine months in prison, to be followed by three years of supervised release, for being a felon in possession of a firearm.
According to court documents and statements made in court, Jefferson admitted to possessing a Remington, model RM380, .380-caliber pistol found by law enforcement officers in his pants pocket when they arrested him in Huntington on September 28, 2021.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Jefferson knew he was prohibited from possessing a firearm because of his felony conviction for first-degree robbery in Cabell County Circuit Court on December 17, 2012.
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 United States Marshals Service.
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. 3:22-cr-48.
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Home Health Aide Sentenced to 57 Months in Prison for Stealing U.S. Savings Bonds from Elderly WomanRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JHANANNIE SINGH, also known as “Jasmine” and “Sharmala Persaud,” 52, a citizen of Guyana last residing in Queens, New York, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 57 months of imprisonment for stealing hundreds of thousands of dollars in U.S. Savings Bonds from an elderly woman who had purchased the bonds for her grandchildren and other family members.
According to court documents and statements made in court, Singh stole hundreds of thousands of dollars in U.S. Savings Bonds from an elderly woman for whom she provided home health services. The victim had purchased the bonds for her grandchildren and other relatives. After the victim died, Singh contacted Glen Campbell, also known as “Nick,” who enlisted the help of another individual to redeem the stolen bonds at a financial institution and provide Singh and Campbell with a portion of the proceeds. Between October 2020 and January 2021, as part of an undercover investigation, law enforcement coordinated the purchase of more than 100 savings bonds, with face values ranging from $50 to $1,000, from Singh and Campbell. Campbell traveled to Connecticut to complete the transactions.
Singh and Campbell were arrested on January 29, 2021. At the time of Singh’s and Campbell’s arrests, the value of the bonds they had delivered during the undercover investigation was $287,312.39.
In June and July 2021, Singh attempted to obstruct the investigation and prosecution of this matter by offering to pay a witness if he agreed to lie and provide false testimony. Singh has been detained since August 4, 2021. On August 19, 2022, she pleaded guilty to one count of conspiracy.
Campbell pleaded guilty to the same charge on June 15, 2022, and awaits sentencing.
Singh faces immigration proceedings when she completes her prison term.
This matter has been investigated by the Federal Bureau of Investigation and the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorneys Tara E. Levens, Michael S. McGarry and Robert S. Ruff.
The Justice Department has established a National Elder Fraud Hotline to provide services to seniors who may be victims of financial fraud. The Hotline is staffed by experienced case managers who can provide personalized support to callers. Case managers assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll-free number is 833-FRAUD-11 (833-372-8311).
Fruitland man faces federal assault chargeRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced that Anderson Buck made an initial appearance in federal court on Nov. 25 where he was charged by criminal complaint with assault resulting in serious bodily injury in Indian Country. Buck, 39, of Fruitland, New Mexico, and an enrolled member of the Navajo Nation, will remain in custody pending a preliminary and detention hearing scheduled for Nov. 29.
According to a criminal complaint, on Nov. 17, Buck allegedly beat his girlfriend, identified in court records as Jane Doe, so badly she needed immediate medical care at San Juan Regional Medical Center. Jane Doe’s injuries included a blowout of fractured bones around her left eye, with the possibility of losing function in the eye. Jane Doe also suffered significant blunt force trauma to the face including a broken nose, brain bleeding, and blunt force trauma to the abdomen. Jane Doe was later transferred to the University of New Mexico Hospital in Albuquerque.
The assault allegedly occurred in Nenahnezad, New Mexico, on the Navajo Nation.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Buck faces up to 10 years in prison.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Nation Department of Criminal Investigations. Assistant United States Attorney Alexander F. Flores is prosecuting the case.
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Fresno Man Charged in $4+ Million Ponzi and COVID-19 Benefits Fraud SchemesRead the Press Release
FRESNO, Calif. — Royce Newcomb, 60, of Fresno, charged in connection with schemes estimated to have defrauded investors and the government out of more than $4.2 million was arrested today in Fresno, U.S. Attorney Phillip A. Talbert announced.
The indictment, unsealed following Newcomb’s arrest, charges him with five counts of wire fraud and one count of money laundering for running Ponzi, COVID-19 benefits, and other fraud schemes through his company, Strategic Innovations LLC.
According to court records, beginning in 2017, Newcomb owned and operated Strategic Innovations that purported to make smart home and business products meant to stop package theft, prevent weather damage to packages, and make it easier for delivery services and emergency responders to find homes and businesses. He created prototypes for his products, applied for and was issued patents and trademarks, and received local and national media attention that he used to secure millions of dollars from investors.
Newcomb told his investors that he had been awarded a grant by the National Science Foundation and that he would use their money to further develop and bring his products to market. He also promised them significant returns in as little as three months. But none of these representations were true. Instead, Newcomb used the investors’ money to pay for his personal expenses such as gambling, luxury vehicles, and a mansion, to pay for refunds to other investors, and to pay for new, unrelated projects without the investors’ authorization.
In the midst of Newcomb’s Ponzi scheme, he also received a fraudulent COVID-19 loan for over $70,000 from the Small Business Administration and fraudulent loans for over $190,000 from private lenders. He lied about his company having hundreds of thousands and even millions in revenues to get these loans.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Joseph Barton and Jeffrey Spivak are prosecuting the case.
If convicted, Newcomb faces maximum statutory penalties of 20 years in prison and a $250,000 fine for each of the wire fraud counts, and 10 years in prison and a $250,000 fine for the money laundering count. Any sentence, however, would 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This effort is part of a California COVID-19 Fraud Enforcement Strike Force operation, one of three interagency COVID-19 fraud strike force teams established by the U.S. Department of Justice. The California Strike Force combines law enforcement and prosecutorial resources in the Eastern and Central Districts of California and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces use prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds.
Freeport Woman Guilty of “Straw Purchasing” Firearms on Behalf of Convicted FelonRead the Press Release
ROCKFORD — A Freeport, Ill., woman admitted in federal court today that she “straw purchased” multiple firearms for a convicted felon whom she knew could not legally purchase the guns.
FELICYA KNOX, 31, pleaded guilty to making false statements in connection with the acquisition of firearms. Knox faces a maximum sentence of ten years in federal prison. Sentencing is set for May 10, 2023, at 9:00 a.m., before U.S. District Judge Philip G. Reinhard in Rockford.
Knox admitted in a plea agreement that on multiple dates she knowingly made false and fictitious written statements to a firearms dealer in connection with the acquisition of the firearms. She then transferred those guns to a known felon whom Knox knew could not legally purchase or possess them.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey L. Matthews, Acting Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives. The Stephenson County Sheriff’s Office and the Freeport Police Department assisted in the investigation. The government is represented by Assistant U.S. Attorney Jessica S. Maveus.
Disrupting illegal firearms trafficking is the focus of the Department of Justice’s Chicago Firearms Trafficking Strike Force. As part of the strike force, the U.S. Attorney’s Office collaborates with ATF and other federal, state, and local law enforcement partners in the Northern District of Illinois and across the country to help stem the supply of illegally trafficked firearms and identify patterns, leads, and potential suspects in violent gun crimes.
Holding firearm offenders accountable through federal prosecution is also a centerpiece of Project Safe Neighborhoods. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Former Hillsborough County Elementary School Head Custodian Sentenced for Receiving and Possessing Child Sexual Abuse MaterialsRead the Press Release
Tampa, Florida– U.S. District Judge Charlene Honeywell has sentenced Charles Currie (66, Tampa) to eight years and one month in federal prison, followed by 15 years of supervised release, for receipt and possession of child sexual abuse material. Currie is required to register as a sex offender. The court also ordered Currie to forfeit multiple electronic devices, which were used to commit the offenses. Restitution will be ordered by the Court at a hearing scheduled for February 3, 2023. Currie had pleaded guilty on August 19, 2022.
According to court documents, in February 2016, Currie received a video approximately 6 minutes in length via a peer-to-peer networking application that depicted prepubescent minors being sexually abused. As of January 2021, Currie also possessed multiple electronic devices containing approximately 2,452 images and 1,595 videos of child sex abuse material, including images and videos depicting toddlers and bondage.
“Removing this predator from the streets, and out of the school where he was employed, is a win for the community,” said Homeland Security Investigations (HSI) Tampa Assistant Special Agent in Charge Kristopher Pagitt. “We appreciate our partners at the Tampa Police Department in the successful investigation and prosecution of this case.”
This case was investigated by Homeland Security Investigations (HSI), with assistance from the Tampa Police Department. It was prosecuted by Assistant United States Attorney Ilyssa M. Spergel.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former CEO of Iconix Brand Group Convicted at Trial of Accounting FraudRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced earlier today that a federal jury found NEIL COLE, the former Chief Executive Officer of Iconix Brand Group, Inc. (“Iconix”), guilty of participating in a scheme to fraudulently inflate Iconix’s revenue and earnings per share, making false filings with the U.S. Securities and Exchange Commission (“SEC”), and misleading the conduct of audits. The defendant was found guilty following a four-week retrial before U.S. District Judge Edgardo Ramos. Sentencing has not yet been scheduled.
U.S. Attorney Damian Williams said: “As a unanimous jury has now found, Neil Cole deceived his company’s investors and auditors in order to make his company appear to be performing better than it was. Cole tried to hide his conduct behind tricks and lies, but the truth is now clear: Cole cooked the books. This verdict sends a message that this Office is committed to holding corporate executives accountable when they resort to fraud, no matter how long it takes. Wall Street should know that we will not be deterred from seeking justice in tough cases.”
According to the allegations contained in the Indictment, the evidence offered at trial, and matters included in public filings:
Iconix, whose shares traded on the NASDAQ, was in the business of acquiring various brands, including clothing and fashion brands, and then licensing those brands to retailers, wholesalers, and suppliers who, in turn, produced and sold clothing and other products bearing the brand names.
Iconix utilized joint ventures (“JVs”) to profit from its brands in foreign markets. With respect to these JVs, Iconix transferred ownership of a trademark or brand to the JV while maintaining a 50 percent ownership interest in the JV itself. The other party involved in the JV purchased a 50 percent interest in the JV from Iconix. As part of the JV agreements, each JV partner was generally entitled to 50 percent of the JV’s licensing revenue. When it entered into a JV, Iconix recognized as revenue the buy-in purchase price paid by the JV partner, less Iconix’s cost basis in the trademarks.
Among the most critical financial metrics disclosed in Iconix’s public filings with the SEC were Iconix’s quarterly and annual revenue and non-GAAP diluted earnings per share (“EPS”). Iconix executives, including COLE, publicly identified revenue and EPS as the principal metrics demonstrating Iconix’s growth. They also touted Iconix’s consistent record of revenue and earnings growth and of meeting or exceeding Wall Street analyst consensus with respect to these metrics.
The Accounting Fraud Scheme
COLE engaged in a scheme to falsely inflate Iconix’s reported revenue and EPS by orchestrating a series of “round trip” transactions in which COLE and a senior Iconix executive induced a JV partner, a Hong Kong-based international apparel licensing company (“Company-1”), to pay artificially inflated buy-in purchase prices for JV interests, with the understanding that Iconix would then reimburse Company-1 for the overpayments. COLE executed the scheme for the purpose of enabling Iconix to report fraudulently inflated revenue and EPS figures based on the inflated buy-in purchase prices it obtained from Company-1.
COLE arranged for Iconix to enter into at least two JVs with Company-1 that included inflated buy-in purchase prices from Company-1: (1) an amendment to a preexisting Southeast Asia joint venture, which closed on or about June 30, 2014 (“SEA-2”), and (2) a second amendment to the Southeast Asia joint venture, which closed on or about September 17, 2014 (“SEA-3”) (collectively, the “SEA JVs”). SEA-2 and SEA-3 involved a fraudulent “round trip” transaction, lacking in economic substance, in which Company-1 paid an artificially inflated buy-in purchase price for its interest in the JV, in exchange for COLE’s agreement that Iconix would give back the inflated portion of the purchase price to Company-1. COLE and a senior Iconix executive hid from Iconix’s lawyers and outside auditors that COLE had reached an understanding with Company-1 to artificially increase the consideration Company-1 paid Iconix in exchange for COLE’s agreement to round-trip the overpayment back to Company-1.
Through the scheme, COLE caused Iconix to report fraudulently inflated revenue and EPS figures to the investing public. COLE did so, in part, to ensure that the reported figures met analyst consensus and to fraudulently convey the impression to the investing public that Iconix was growing quarter after quarter, as COLE had touted to the investing public.
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COLE, 65, of New York, New York, was convicted of one count of securities fraud, six counts of making false filings with the SEC, and one count of improperly influencing the conduct of audits. Each count carries a maximum prison term of 20 years.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentence will be determined by the judge.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation and the SEC Office of the Inspector General. Mr. Williams also thanked the SEC Division of Enforcement, which previously brought a separate civil action.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Jared Lenow, Justin V. Rodriguez, and Andrew Thomas are in charge of the prosecution.
Florida Man Pleads Guilty to Bank Fraud in Maine and Oregon and Illegal Gun Possession in FloridaRead the Press Release
PORTLAND, Maine: A Fort Lauderdale, Florida man pleaded guilty in federal court today to committing bank fraud, conspiracy to commit bank fraud, aggravated identity theft, and being a felon in possession of a firearm.
According to court records, in November 2020, Leonardo Cameron, 27, and coconspirators broke into unattended vehicles in southern Maine and New Hampshire and stole personal identifying information, such as driver’s licenses and checkbooks. They then used the identifications to cash stolen checks using multiple bank drive-through lanes in southern Maine. As part of the scheme, checks from one theft victim’s account were made payable to another identity theft victim, and a female coconspirator impersonated the identity theft victims to cash the stolen checks. In July 2020, Cameron engaged in similar conduct in Oregon with different coconspirators. When he was arrested in Florida months later on Oregon federal bank fraud and identity theft charges, he possessed a firearm and ammunition. He has a prior felony conviction that precludes him from possessing firearms or ammunition. Cameron agreed to transfer jurisdiction over the Florida and Oregon charges to the District of Maine for the purpose of entering guilty pleas to all pending federal charges.
Cameron faces up to 30 years in prison and a $1 million fine followed by up to five years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Eliot, Maine Police Department; the FBI in Portland, Maine; the U.S. Department of Homeland Security, Homeland Security Investigations (HSI) in Portland, Oregon; and Homeland Security Investigations (HSI) in Fort Lauderdale, Florida investigated these cases.
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Felony Lane Gang Participant Sentenced to Federal PrisonRead the Press Release
NASHVILLE – A Florida man was sentenced today in U.S. District Court in Nashville, Tennessee, to 57 months in federal prison for his role in a bank fraud conspiracy, while using methods associated with the tactics of what is commonly known as the Felony Lane Gang (FLG), announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
Melvin Brooks, 40, of Fort Lauderdale, was charged in November 2021 with conspiracy to commit bank fraud, bank fraud, and aggravated identity theft. He pleaded guilty to all charges in January.
The FLG typically is a group of thieves from Florida who travel the country and target unoccupied vehicles for “smash and grab” thefts, stealing purses and using stolen identification documents and credit cards to commit financial crimes. When cashing stolen checks, they typically use the drive-thru lane farthest from the bank in an attempt to avoid detection.
According to Court documents, Brooks conspired with Bobbie Lynn Riley, 39, of Dickson, Tenn., to obtain identification documents and checks stolen from others, to fraudulently obtain more than $30,000 in cash and gift cards from area banks and businesses. While travelling interstate, the pair used stolen license plates to mask the identity of rental cars used during the commission of these crimes, also a tactic of the FLG.
Riley was charged in 2019 and was sentenced to 22 months in prison in 2020 after pleading guilty to conspiracy and bank fraud.
This case was investigated by the FBI; the Franklin Police Department; The Brentwood Police Department; and the Williamson County Sheriff’s Department. The 21st Judicial District Attorney General’s Office was instrumental in obtaining the forfeiture of more than $29,000 which was seized from Brooks upon his arrest and will be used as restitution to the victims of his crimes. Assistant U.S. Attorney Taylor J. Phillips is prosecuting the case.
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Felon Previously Convicted and Incarcerated on Gun, ID Theft, and Domestic Assault Charges Sentenced for Bank RobberyRead the Press Release
PROVIDENCE – A Providence man with nine previous criminal convictions, including convictions on firearms, fraud, aggravated identity theft, and domestic assault charges, was sentenced today to nearly five years in federal prison for robbing a downtown Providence bank in April 2021 while on federal supervised release, announced United States Attorney Zachary A. Cunha.
Less than six months after his release from a twelve-year term of incarceration in federal prison, Roldy Francois, 38, brandished what appeared to be a firearm and threatened to “shoot this place up” as he robbed a downtown bank branch office. Providence Police located Francois using GPS trackers concealed in a stack of cash handed over to Francois, and he was arrested after a brief foot pursuit. Among the items dropped by Francois and recovered by police was a toy handgun.
Francois’ arrest followed a 144-month term of incarceration imposed for his 2011 conviction on four counts of being a felon in possession of a firearm; one count of possession of a firearm with an obliterated serial number; four counts of making false statements to a federally licensed firearms dealer in acquisition of firearms; four counts of possession of an identification document with intent to defraud the United States; and four counts of aggravated identity theft. Although prohibited from acquiring firearms by his 2007 conviction of felony domestic assault for stabbing his girlfriend in the leg, Francois illegally purchased five handguns using a stolen identity.
At the time of his arrest on these earlier charges, Francois pointed a handgun at U.S Marshals, causing a six-hour standoff with law enforcement prior to his being taken into custody.
At sentencing today on a charge of bank robbery and for violating the terms of federal supervised release, U.S. District Court Judge William E. Smith Sentenced Francois to fifty-seven months in federal prison to be followed by three years of federal supervised release – the first six months of supervised release to be served at a residential reentry center.
The case was prosecuted by Assistant United States Attorneys G. Michael Seaman, Sandra R. Hebert, and Paul F. Daly, Jr. The matter was investigated by the Providence Police Department, with the assistance of the FBI.
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Federal Jury Convicts Tampa Man of Double MurderRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that a federal jury has found Jy’Quale Samari Grable (20, Tampa) guilty of conspiracy, robbery, and first-degree premediated murder. Grable faces a mandatory minimum sentence of life in federal prison. His sentencing hearing is scheduled for February 16, 2023. Jy’Quale Grable was indicted on February 1, 2022.
According to testimony and evidence presented at trial, on December 22, 2020, Jy’Quale Grable, Elijah Bell and Aquavious Smith drove to the Valrico Station Apartments in Brandon, Florida to conduct a robbery. Grable and Smith went to the victim’s third floor apartment, while Bell stayed in the car. On the back patio of the apartment, Grable shot B.B. in the neck, severing his spinal cord, and killing him instantly. Grable then shot M.M. in the chest, perforating his heart and lung, which also lead to his death. At approximately 9:00 p.m., neighbors heard the gun shots, and observed blood dripping down from the third floor back balcony apartment. Hillsborough County Sheriff deputies immediately responded and secured the scene.
According to evidence presented at trial, Grable later deleted Snap Chat messages and phone calls from his phone, had family members dispose of the murder weapon, and burned his bloody clothing.
Elijah Bell pleaded guilty on April 13, 2022, and Aquavious Smith did so on June 7, 2022. Both are pending sentencing.
This case was investigated by the Drug Enforcement Administration and the Hillsborough County Sheriff’s Office, with assistance from the Hillsborough County Medical Examiner’s Office, Manatee County Sheriff’s Office, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney Diego F. Novaes and David P. Sullivan.
Fayette County Man Sentenced for Wire Fraud Related to COVID-19 ReliefRead the Press Release
LEXINGTON, Ky. – A Lexington man, Shaan Ti Diyali, 37, was sentenced on Monday to six months in federal prison, by U.S. District Judge Karen Caldwell, for wire fraud.
Evidence presented at trial established that Diyali’s personal information was used to apply for an Economic Injury Disaster Loan (EIDL) for an insurance business via an online portal. Diyali received an EIDL of $49,000. Once he received the funds, Diyali placed the funds in Robinhood, a stock exchange. Ultimately, Diyali lost all of the money he received from the EIDL. The evidence further established that the insurance business never conducted any business and never made income, rendering the income that was stated in the EIDL application false.
Diyali testified that he had no intent to defraud the United States, that a friend, whom he trusted, told him that the money was “free money,” and that his friend used Diyali’s personal information to apply for the loan. However, Diyali also admitted that he actually received the funds into his personal bank account and placed the funds into his Robinhood account.
Diyali was convicted in August 2022.
Under federal law, Diyali must serve 85 percent of his prison sentence. He will also be under the supervision of the U.S. Probation Office for two years after his release from prison. Diyali is also required to pay restitution to the United States.
Carlton S. Shier IV, United States Attorney for the Eastern District of Kentucky; and Jodi Cohen, Special Agent in Charge, FBI Louisville Field Office; and Daniel Cameron, Kentucky Attorney General, jointly announced the sentences.
The investigation was conducted by the FBI, the Kentucky Attorney General’s Office, and the United States Small Business Administration. The United States was represented by Assistant U.S. Attorneys Ken Taylor and Andrea Mattingly Williams.
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Ex-Naval petty officer sentenced to federal prison for distributing child pornographyRead the Press Release
BRUNSWICK, GA: A former U.S. Navy petty officer stationed at Submarine Base Kings Bay was sentenced to federal prison after admitting he distributed images of child sexual exploitation.
Anthony Gabriel Ortiz, 23, of Kings Bay, Ga., was sentenced to 74 months in prison after pleading guilty to Distribution of Child Pornography, said David H. Estes, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge Lisa Godbey Wood also ordered Ortiz to pay restitution of $19,000, to register as a sex offender, and to serve 15 years of supervised release after completion of his prison sentence.
There is no parole in the federal system.
“Distributing child pornography shares the pain of victimization endlessly for innocent children who have been exploited,” said U.S. Attorney Estes. “Anthony Ortiz is being held accountable for perpetuating the harm to these vulnerable victims.”
As described in court documents and testimony, Ortiz was in the U.S. Navy assigned to the Naval Nuclear Power Training Command, Naval Weapons Station in Charleston, S.C., when investigators with the Royal Canadian Mounted Police (RCMP) in early 2019 found online images of child pornography shared via a messaging application. RCMP alerted the Homeland Security Investigations (HSI) Cyber Crimes Center, and HSI contacted the Naval Criminal Investigative Service (NCIS).
Ortiz, a petty officer third class, transferred in April 2019 to Submarine Base Kings Bay in Kingsland, Ga., where he later was interviewed by HSI and NCIS investigators. He was taken into custody after admitting to possessing and distributing child pornography over the internet, and investigators found hundreds of images and videos of child sexual exploitation on electronic devices in his possession.
“Mr. Ortiz deserves to be held fully accountable for his reprehensible actions to possess and distribute child pornography,” said Special Agent in Charge Thomas Cannizzo of the NCIS Southeast Field Office. “NCIS exists to protect our Department of the Navy warfighters and their families from harm. We sincerely thank our partners at Homeland Security Investigations and the Department of Justice for their continued efforts to combat child sexual exploitation in communities where our DON families live and work.”
“Those who create, view and distribute images of child exploitation create an enduring cycle of trauma and victimization, which is why these crimes are so detrimental,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Catching and prosecuting the predators that traffic in these disturbing images takes a team effort and we are very thankful for the great relationships we have with our law enforcement partners.”
This investigation took place under the umbrella of the U.S. Department of Justice’s Project Safe Childhood, and was investigated by Homeland Security Investigations and the Naval Criminal Investigative Service. The case was prosecuted for the United States by Assistant U.S. Attorneys Jennifer Kirkland and Project Safe Childhood Coordinator Tara M. Lyons.
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 800-843-5678, or https://report.cybertip.org/.
Essex County Felon Sentenced to 93 Months in Prison for Possessing Two Firearms, Drug Trafficking, and Possession of Firearm in Furtherance of Drug TraffickingRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 93 months in prison on weapons and drug charges, U.S. Attorney Philip R. Sellinger announced.
Teriek Edwards, 44, of Newark, was previously convicted on two counts of possession of firearms and ammunition by a convicted felon; one count of possession with intent to distribute heroin, cocaine, and oxycodone; and one count of possession of a firearm in furtherance of his possession with intent to distribute heroin, cocaine, and oxycodone, following a six-day trial before U.S. District Judge John Michael Vazquez, who imposed the sentence today in Newark federal court.
According to documents filed in this case and the evidence at trial:
On May 25, 2018, members of the East Orange Police Department attempted to stop Edwards as part of an ongoing investigation. Upon being approached by law enforcement officers, Edwards fled, and a struggle ensued. Edwards was arrested and law enforcement officers recovered heroin, cocaine, oxycodone, and other illegal narcotics from his pants pockets, as well as a 9mm firearm loaded with 12 rounds of ammunition. A federal complaint was filed against Edwards and a federal arrest warrant was issued.
On Aug. 22, 2018, the U.S. Marshals Service Fugitive Task Force arrested Edwards on that federal arrest warrant, at which time they recovered a second handgun – a 9mm firearm loaded with eight rounds of ammunition.
In addition to the prison term, Judge Vazquez sentenced Edwards to three years of supervised release.
U.S. Attorney Sellinger credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge Bryan Miller; members of East Orange Police Department, under the direction of Chief Phyllis Bindi; members of the Newark Police Department, under the direction of Director Fritz Fragé; deputy marshals and task force officers with the U.S. Marshals Service in the District of New Jersey, under the direction of U.S. Marshal Juan Mattos Jr.; and special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to today’s conviction.
The government is represented by Assistant U.S. Attorneys Tracey Agnew and Samantha C. Fasanello of the U.S. Attorney’s Office Criminal Division.
Doctor Pleads Guilty to Using Misbranded and Adulterated Products Sold as Botox and JuvedermRead the Press Release
A San Francisco-area doctor pleaded guilty on Nov. 22 in connection with the use of unapproved products she sold as genuine Botox and Juvederm.
Dr. Lindsay Clark, 45, pleaded guilty to one misdemeanor count of violating the Federal Food, Drug, and Cosmetic Act (FDCA) by receiving and delivering misbranded drugs and misbranded and adulterated devices. Her medical practice, Lindsay Clark, M.D., Medical Corporation, also pleaded guilty to one felony count of receiving and delivering misbranded drugs and misbranded and adulterated devices.
Clark specialized in procedures using injectable drugs and devices for cosmetic purposes. In pleading guilty, Clark admitted that, from 2016 through 2020, she obtained and used with patients prescription drugs and devices that were not the subject of Food and Drug Administration (FDA) licenses or approvals, and that she took steps to conceal this conduct from patients, the FDA, and the authorized corporate distributor of the products. Clark further admitted that she and her practice obtained these products from sources outside of the United States. Specifically, the defendants purchased unapproved and unlicensed injectable botulinum toxin drugs and hyaluronic acid filler devices from online “pharmacies” outside the United States. Clark admitted that she then sold these products to patients, falsely representing the products to be the more expensive, FDA-approved products Botox and Juvederm. Clark’s practice received more than $1,069,880 in connection with the sale and use of misbranded and adulterated products.
“Consumers must have confidence that the prescription drugs and devices they use are authentic and safe,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “The Department of Justice will continue to work with its law enforcement partners to investigate and prosecute doctors who mislead patients for their own profit.”
“Health care professionals who dispense and administer misbranded and adulterated prescription drugs and devices of unknown origin put the health of their patients at significant risk,” said Acting Special Agent in Charge Robert M. Iwanicki of the FDA Office of Criminal Investigations Los Angeles Field Office. “We will continue to pursue and bring to justice those who choose to subvert the safeguards of the legitimate drug and device regulatory regime and supply chain and jeopardize the public health.”
Clark and Lindsay Clark, M.D., Medical Corporation pleaded guilty before District Judge Susan Illston in San Francisco. Sentencing is scheduled for April 7, 2023.
The case is being investigated by the FDA’s Office of Criminal Investigations.
Assistant U.S. Attorneys Joseph Tartakovsky and Kaitlin Paulson for the Northern District of California and Trial Attorney Rachael Doud of the Civil Division’s Consumer Protection Branch are prosecuting this case.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch.
District Man Sentenced to More Than 10 Years in Prison for Killing Man on Street in Southeast WashingtonRead the Press Release
WASHINGTON - Cecil Smith, 29, of Washington, D.C., was sentenced today to 10 years and nine months in prison for fatally shooting a man last year in Southeast Washington, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Smith pleaded guilty on April 1, 2022, in the Superior Court of the District of Columbia, to a charge of voluntary manslaughter while armed. The plea, which was contingent upon the Court’s approval, called for the sentence of 10 years and nine months in prison. The Honorable Milton C. Lee, Jr. accepted the plea and sentenced Smith accordingly. Following his prison term, Smith will be placed on five years of supervised release.
According to the government’s evidence, on Aug. 23, 2021, at approximately 11 p.m., Smith was standing immediately adjacent to a parking lot in the 3900 block of South Capitol Street SE, next to a vehicle along with Harold Castle. Mr. Castle then grabbed a bottle that Smith placed on the hood of the vehicle. Mr. Castle held the bottle in the air and looked at the contents of the bottle. He poured a portion of the remaining contents into his cup, then handed the bottle to the Smith. Smith reached towards his right pocket, turned away from Mr. Castle, and fired a gun towards him. Mr. Castle, 29, struck by the bullet, turned and ran towards the parking lot, where he collapsed and died from a gunshot wound to the chest.
Smith was arrested on Sept. 1, 2021. He has been in custody ever since.
In announcing the sentence, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Criminal Investigations Division Homicide Branch of the Metropolitan Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Lashone Samuels, former Victim/ Witness Specialist Marcia Rinker, Victim/Witness Advocate Latrice Washington-Williams, and Investigative Analyst Zachary McMenamin.
Finally, they commended the efforts of Assistant U.S. Attorney Shehzad Akhtar, who investigated and prosecuted the case.
Des Moines Sentenced to 20 Years in Federal Prison for Attempted Enticement of Minor to Engage in Illicit Sexual ActivitiesRead the Press Release
Des Moines, IA – An Iowa man was sentenced on November 22, 2022, to 20 years in prison for attempting to entice a minor to engage in illicit sexual activities.
According to court documents, Dennis Eugene Kimball, age 58 of Des Moines, communicated over the internet with an undercover officer posing as a 15-year-old female. During the messages, Kimball arranged to meet the person he believed to be a minor female at a hotel to engage in sex acts. Kimball was arrested by law enforcement in October 2021 when he arrived at the hotel expecting to meet the minor female for sex acts. Following his prison term, Kimball will be on supervised release for five years. There is no parole in the federal system.
U.S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Altoona Police Department, the Iowa Division of Criminal Investigation (DCI)’s Internet Crimes Against Children Task Force, and the Federal Bureau of Investigation Human Trafficking and Child Exploitation Task Force investigated the case.
This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the U.S. Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nationwide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children. Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Dallas Man Indicted for Trafficking Deadly FentanylRead the Press Release
PLANO, Texas – A Dallas man has been indicted for federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Brian Demarcus Davis, also known as “Tink”, 37, was named in a four-count indictment returned by a federal grand jury on Nov. 9, 2022 in the Eastern District of Texas. The indictment charges Davis with multiple federal violations including conspiracy to distribute fentanyl, heroin, and methamphetamine, and possession of a firearm in furtherance of narcotics trafficking. Davis made his initial appearance on Nov. 21, 2022, before U.S. Magistrate Judge Kimberly C. Priest Johnson.
According to the indictment, in September 2022, the North Texas OCDETF Strike Force 2 (SF2), with the assistance of the Dallas Police Department and the Collin County Sheriff's Office, began investigating Dallas-based drug traffickers selling fentanyl and fentanyl-laced heroin. Deconfliction efforts found that Dallas PD had previously executed a search warrant on a “trap” house run by the targets of the SF2 investigation, resulting in the recovery of kilograms of methamphetamine, a half kilogram of raw powdered fentanyl, firearms, and body armor. Davis was identified as a possible fentanyl & heroin source of supply and ultimately alleged to be responsible for an overdose death in Collin County.
If convicted, Davis faces up to life in federal prison.
This case is being investigated by the U.S. Postal Inspection Service; U.S. Marshals Service; IRS-Criminal Investigations; Dallas Police Department; Collin County Sheriff's Office; and Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorney Heather Rattan.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Child Sexual Predator Receives Maximum SentenceRead the Press Release
SAN ANTONIO – A San Antonio man was sentenced last week to 30 years in prison for the sexual exploitation of a young child.
According to court documents, Pedro Damian Martinez, 29, sexually assaulted the prepubescent minor on numerous occasions, and recorded the acts on video. Investigators also found that Martinez possessed more than 100 other child pornography videos on his phone, which he’d received via the internet.
In addition to the decades-long sentence, Martinez was ordered to pay $50,000 to the sexual assault victim in restitution and forfeit the cell phones used to produce the child sexual abuse material.
“The lengthy sentence imposed in this case is fitting in light of the unthinkable damage this individual inflicted on a child,” said U.S. Attorney Ashley C. Hoff. “Along with our partners, we will continue to hold those who harm the lives of innocents accountable for their actions.”
“This verdict illustrates the importance of law enforcement agencies working together in efforts to bring violent predators to justice and protect our communities,” said a spokesperson with the San Antonio Police Department Public Information Office.
The FBI, SAPD and Bexar County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Tracy Thompson 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 CEOS, 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.
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Chenango County Man Sentenced to 87 Months for Drug and Firearm OffensesRead the Press Release
SYRACUSE, NEW YORK – Jonas Whaley, age 37, of Chenango County, New York, was sentenced today to 87 months in prison for possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime.
The announcement was made by United States Attorney Carla B. Freedman; John B. Devito, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), New York Field Division; Chenango County District Attorney Michael D. Ferrarese; New York State Police Acting Superintendent Steven Nigrelli; Chenango County Sheriff Ernest R. Cutting Jr.; and Broome County Sheriff David E. Harder.
As part of his earlier guilty plea, Whaley admitted that he possessed with intent to distribute 50 grams or more of a mixture and substance containing methamphetamine. Whaley further admitted that he possessed two pistols and a revolver, which he used in furtherance of his drug trafficking to protect himself, the drugs he planned to distribute, and drug proceeds.
United States District Judge Glenn T. Suddaby also ordered Whaley to serve a 4-year term of post-imprisonment supervised release and the forfeiture of $3,600 in drug proceeds.
This case was investigated by ATF, New York State Police Violent Gang and Narcotics Enforcement Team (VGNET), Chenango County Sheriff’s Office, and the Broome County Sheriff’s Office, and was prosecuted by Assistant U.S. Attorney Matthew J. McCrobie.
Camden County Woman Sentenced to 159 Months in Prison for Role in Stolen Identity Refund Fraud SchemeRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, woman was sentenced today to 159 months in prison for her role in a scheme to obtain money through fraudulently obtained refund checks issued by the U.S. Treasury, U.S. Attorney Philip R. Sellinger announced.
Awilda Henriquez, 36, of Clementon, New Jersey, was convicted on Dec. 9, 2021, of one count of conspiracy to defraud the United States government and steal United States mail, 13 counts of theft of government money, and 13 counts of aggravated identity theft, following a 10-day trial before Senior U.S. District Judge Robert B. Kugler. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and the evidence at trial:
Stolen Identity Refund Fraud (SIRF) is a common type of fraud committed against the United States government that involves the use of stolen identities to commit tax refund fraud. The investigation revealed that for the 2013 tax year more than 3,300 SIRF tax returns were filed using the names and Social Security numbers of residents of Puerto Rico and the refunds were directed to be mailed to a small section of Pennsauken, New Jersey.
Henriquez and her conspirators recruited mail carriers from the U.S. Postal Service as part of the scheme to steal the tax refund checks from the mail. The mail carriers were paid for every U.S Treasury check that was stolen. Henriquez and her conspirators recruited and paid “check couriers” to cash the tax refund checks in a variety of ways, including at check cashing businesses in New Jersey, where Henriquez paid the tellers to also participate in the scheme. The check couriers presented fraudulent identifications at the check cashing businesses matching the names on the tax refund checks in order to cash the checks, which the tellers cashed because they were paid by Henriquez to do so. In total, the scheme caused $565,091 in losses to the U.S. Treasury.
In addition to the prison term, Judge Kugler sentenced Henriquez to three years of supervised release and ordered her to pay restitution of $565,091.
U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins in Newark and Special Agent in Charge Yury Kruty in Philadelphia; and special agents of the U.S. Postal Service Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi, with the investigation leading to today’s sentencing. He also thanked the U.S. Postal Inspection Service for its assistance.
The government is represented by Jason M. Richardson, Attorney in Charge of the Camden Office, and Assistant U.S. Attorney Christina O. Hud of the Criminal Division.
Brooklyn, New York Man Sentenced to 36 Months’ Imprisonment for Fentanyl Distribution in Rutland AreaRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Olayinka Babatunde (a.k.a. “Tom”), 23, of Brooklyn, New York, was sentenced by U.S. District Court Judge William K. Sessions III to 36 months of imprisonment to be followed by a three-year term of supervised release after previously pleading guilty to fentanyl distribution.
According to court records, on January 29, 2020, law enforcement executed a search warrant at 8 Sheldon Place in Rutland, Vermont. Court records show that Babatunde and Quadeim Mack, also from Brooklyn, used this residence as a base station to distribute drugs in the Rutland area. In an upstairs bedroom, law enforcement seized 9 grams of fentanyl, 57 grams of cocaine base, and 50 grams of cocaine. Law enforcement also seized a loaded .22 caliber revolver and $13,050 of drug proceeds. Judge Sessions previously sentenced Mack to 48 months’ imprisonment for possession with intent to distribute fentanyl, cocaine base, and cocaine.
In the plea agreement, the government and Babatunde agreed to a term of imprisonment of 36 months and that the federal sentence be served concurrently to the defendant’s state sentence in New York for attempted murder (2nd degree), a charge to which Babatunde previously pleaded guilty and agreed to an eight-year sentence.
U.S. Attorney Nikolas Kerest commended the investigative efforts of the Vermont State Police Drug Task Force, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), and the Rutland City Police Department.
This case was prosecuted by Assistant U.S. Attorney Joseph Perella. Babatunde was represented by Richard Goldsborough, Esq. of South Burlington, Vermont.
Babatunde’s prosecution was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.Bettendorf Man Sentenced for Attempted Transfer of Obscene Material to a MinorRead the Press Release
Davenport, IA – Gerald Brian Hoard, age 49 of Bettendorf, Iowa, was sentenced today to time-served following his plea of guilty to Attempted Transfer of Obscene Material to a Minor. Hoard went into custody on March 15, 2022. Hoard will serve three years of supervised release including one year at a residential re-entry center.
According to court documents, Hoard used the social media application Grindr, an online dating app, to communicate with an undercover officer posing as a 14-year-old. Hoard sent a picture of his genitals to the purported minor. Hoard agreed to meet the minor at a local store for the purpose of engaging in sexual activities.
U.S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Federal Bureau of Investigation investigated the case.
This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the U.S. Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nationwide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children. For more information about Internet safety education, please visit https://www.justice.gov/psc and click on the resources tab.
Baltimore Man Sentenced to 15 Years in Federal Prison for Sex Trafficking at Least Three WomenRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III today sentenced Ryan Odell Oliver, a/k/a “Dre,” “Fame,” and “Foreign,” age 40, of Baltimore, Maryland, to 15 years in federal prison, followed by 15 years of supervised release, for sex trafficking at least three victims.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; and Commissioner Michael Harrison of the Baltimore Police Department.
According to Oliver’s guilty plea, in December 2018 a female victim (Victim 1) texted a non-profit sex trafficking prevention agency that she was forced into prostitution and was being held against her will by Oliver. An Alexandria, Virginia Police Department undercover detective followed up on the report and made a commercial sex date with Victim 1 in order to find her. Officers located Victim 1 at the location given for the sex date. Oliver was also at the location, but fled before he could be arrested. A second female (Victim 2) was also found at that location.
During the investigation, law enforcement spoke with three women whom Oliver was trafficking or attempting to traffic. Victim 1 and Victim 2 told law enforcement that they were trying to leave but Oliver refused to let them go. The victims stated that Oliver had trafficked Victim 1 and a third woman, Victim 3, for his prostitution business and was attempting to sex traffic Victim 2. Oliver physically and sexually assaulted Victim 1 and Victim 2. Victim 1 and Victim 3 worked for Oliver in the Washington D.C. and Maryland area, including surrounding states. Oliver advertised all three victims online for commercial sex dates and kept all of the money made by his victims on their commercial sex dates. Oliver also arranged for a tattoo artist to tattoo his nicknames “Fame” and “Foreign” on one of his victims.
As detailed in his guilty plea, Oliver gave Victim 1 daily quotas for commercial sex dates and refused to provide for Victim 1 if she did not meet the quotas. Oliver also made Victim 1 take pictures of other sex trafficking victims to advertise them for commercial sex dates. Oliver used violence against Victim 1 when she did something he thought was wrong and Oliver told Victim 1 that she was his property. Victim 3 advised that Oliver provided her with drugs, including heroin.
According to Oliver’s plea agreement, after meeting Victim 2 on a social media platform in December 2018, Oliver paid for a car to drive Victim 2 from Pennsylvania to his Baltimore residence. There, Oliver forced Victim 2 to have sex with him and choked Victim 2 when she would not comply with his sexual demands. After the assault, Victim 2 met one of Oliver’s co-conspirators, now deceased, who took her to a hotel, forced her to watch another sex trafficking victim conduct a sex date, and warned Victim 2 not to try to escape because Oliver would find her and that Oliver had a gun.
Oliver was arrested on January 11, 2019, in Baltimore. A search warrant executed at his residence recovered three cell phones, a hand-held recorder, a laptop, a ledger, a 9mm firearm, and ammunition. Additionally, law enforcement discovered images of Victim 1 and Victim 3 on Oliver’s phone.
This case was investigated by law enforcement agencies that are members of the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state, and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Erek L. Barron commended HSI, the Baltimore Police Department, and the Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Colleen E. McGuinn, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Ankeny Man Sentenced to 30 years in Federal Prison for a Child Exploitation OffenseRead the Press Release
Des Moines, IA – An Iowa man was sentenced on November 22, 2022, to 30 years in prison for Production of Child Pornography.
According to court documents, Kyle Taylor Tremblay, age 30 of Ankeny, interacted with children on an online video-chat forum on multiple dates in early 2021. Tremblay directed the children to perform sexual acts to themselves, including children that Tremblay knew were 10 years old and 11 years old, and make explicit poses for the webcam. Tremblay video-recorded his online interactions with the children. Police located these recordings on Tremblay’s cell phone that was seized during a search warrant at Tremblay’s Ankeny residence in April 2021. Police also located videos and images of other child sexual abuse material stored on Tremblay’s cell phone. Tremblay sent numerous images of child sexual abuse material to multiple other persons via an online messenger application. Following completion of his prison term, Tremblay will be on supervised release for five years. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The case was investigated by the Ankeny Police Department, the Iowa Division of Criminal Investigation (DCI)’s Internet Crimes Against Children Task Force, and the Federal Bureau of Investigation Human Trafficking and Child Exploitation Task Force.
13 now in prison in investigation initially targeting Laredo area Mexican MafiaRead the Press Release
LAREDO, Texas – With the sentencing of a 37-year-old associate of the Texas Mexican Mafia, more than a dozen criminals are serving more than 1600 months combined for their respective roles in narcotics trafficking on the streets of Laredo, announced U.S. Attorney Jennifer B. Lowery.
Today, U.S. District Judge Marina Garcia Marmolejo sentenced Anthony “Tono” Mercado, Laredo, to serve 33 months in prison. The sentence will be immediately followed by three years of supervised release. At the hearing, the court heard additional testimony as to testing positive for cocaine while on bond for the offense.
The sentencing today brings to a conclusion a multi-agency operation which initially targeted the Texas Mexican Mafia prison gang in Laredo. Although not all were involved in gang activity, the resulting investigation led to indictments against 12 people. All were charged with narcotics trafficking with two facing additional firearms charges.
10 were convicted for their roles in distributing crack-cocaine from a home in Laredo aka Blue Point which was situated near a school and playground.
In addition, information obtained during this investigation also led to the arrest and conviction of a 36-year-old Corpus Christi area Texas Mexican Mafia member - Robert Loya Jr. aka Lil’ Rob. A jury convicted him of possessing over six kilograms of meth and several firearms including a stolen military grade .50 caliber rifle.
Along with Mercado, several ranking members of the Mexican Mafia were sentenced to lengthy prison terms, including the former “Captain” of the Laredo area Texas Mexican Mafia - Martin Perez Jr. aka Quince. Perez was convicted for his role in the crack cocaine distribution from the Blue-Point. At sentencing, the court heard that Perez was the leader of this activity and that he used threats of violence to control others involved as well as his rivals.
U.S. District Judge Marina Garcia Marmolejo previously sentenced Perez to serve 327 months in prison. At that hearing, the court heard that Perez directed at least five other subjects to assist with a 2009 murder. Evidence also showed he had an extensive criminal record and that he has been a member of the Texas Mexican Mafia for a significant amount of time. The remaining individuals convicted in the case received terms ranging from two years to 262 months for their respective roles in the conspiracy. In the Loya case, he received a 30-year sentence.
In total, all 13 individuals received a total of more than 1600 months in federal prison.
Mercado has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration; FBI; Bureau of Alcohol, Tobacco, Firearms and Explosives; Webb County Sherriff’s Office and the Laredo Police Department conducted the investigation.
Assistant U.S. Attorney Brittany L. Jensen prosecuted the case which was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven and multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF
Friday 25 November 2022
Springfield Man Sentenced to 19 Years for Child Sexual ExploitationRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man who was the subject of an undercover investigation in the United Kingdom has been sentenced in federal court on child sexual exploitation charges.
Kody Ryan Kelso, 31, was sentenced by U.S. District Judge Stephen R. Bough to 19 years and seven months in federal prison without parole. The court also sentenced Kelso to spend 15 years on supervised release following incarceration.
On July 6, 2022, Kelso pleaded guilty to one count of the sexual exploitation of a child to produce child pornography and to one count of using the internet and a cell phone to coerce and entice a child under the age of 14 to engage in illicit sexual activity.
Both of the offenses to which Kelso pleaded guilty are related to an undercover law enforcement operation in the United Kingdom. Kelso used an online service named My LOL, a teen dating site with chat features, to contact a person he believed to be a 13-year-old girl, but in reality was an undercover law enforcement officer. Kelso asked her to have sexual intercourse with him and repeatedly requested sexually explicit images during online chats from Jan. 7 to Feb. 2, 2021. Kelso also provided his email address and asked her to use Google hangouts to send sexually explicit photos outside the MYLOL platform.
In addition to the information from Europol, investigators received two Cybertips from the National Center for Missing and Exploited Children regarding Kelso’s online activity and posting a child pornography video online.
On June 16, 2021, Springfield police officers executed a search warrant at Kelso’s apartment and he was arrested. Officers seized 19 electronic devices. Investigators found 26 images and 39 video files of child pornography on Kelso’s computers. According to court documents, Kelso had multiple conversations with other users who had clearly identified themselves as minors and sought to have them produce sexually explicit images and entice them into engaging in sexual conduct. The records from MyLOL reveal that Kelso had contacted 560 additional MyLOL users, all of which were listed as being between the age of 13 and 17 years old. He started each conversation by asking if the child had an “age limit” and would introduce sexual topics.
Kelso’s behavior was not limited to MyLOL. On his devices, law enforcement discovered approximately 7,900 different chat threads with different users, over multiple social media applications, including Discord, Facebook Messenger, Google Hangouts, Instagram, Kik, Skype, and Text Now. Kelso sometimes sent child pornography, or pornographic images of himself, to these children and requested nude images.
This case was prosecuted by Assistant U.S. Attorney Stephanie L. Wan. It was investigated by the Springfield, Mo., Police Department, the FBI, and Homeland Security Investigations.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Lincoln Man Sentenced for Distributing Methamphetamine and Possessing FirearmsRead the Press Release
Acting United States Attorney Steven Russell announced that Chase Bass, 28, of Lincoln, Nebraska, was sentenced on November 23, 2022, by United States District Court Judge John M. Gerrard to a term of 170 months’ imprisonment following his convictions for possession of methamphetamine with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime. After he completes his prison sentence, Bass will also serve four years on supervised release. There is no parole in the federal system.
While investigating a shooting that happened in Lincoln on July 8, 2021, Lincoln Police Department investigators located a cell phone conversation in which Bass talked about providing a gun to a convicted felon. That led to a firearms and narcotics investigation involving Bass and his girlfriend at the time, Kylie Thompson.
Investigators obtained firearms purchase records showing that Thompson bought 12 handguns between March 18 and July 31, 2021, at various locations in Lancaster County, Nebraska. After purchasing these firearms, Thompson transferred some of these firearms to Bass who was a felon, and thus not permitted to possess firearms. Bass was also serving a term of post-release supervision, following prison sentence, as a result of a Lancaster County conviction for possession of a short shotgun.
On July 16, 2021, Bass was arrested in Cass County on an outstanding warrant for violating his post-release supervision. Thompson was also present but she was not arrested at that time. Bass was in possession of a distribution amount of methamphetamine, baggies containing methamphetamine residue, at least two functioning firearms, $1,347 cash, ammunition, drug ledgers, phones, gun magazines, pipes, and a scale. Investigators found six empty gun boxes in Thompson’s car. Bass was in the passenger seat of this car when arrested. The gun boxes in the car matched up with six of the firearm purchases Thompson had made in Lincoln between March 18 – July 31, 2021. Bass had a notebook in his possession containing his hand-written notes describing the firearms that were previously in the boxes found in the car. Bass was carrying a backpack containing ammunition and a pistol Thompson had purchased the day before at a Lincoln pawn shop. Bass also had keys to a safe located in Thompson’s car. Inside the safe investigators found a handgun with 12 rounds in the magazine. The box for this gun was found in the trunk and was the same handgun Thompson had purchased at a gun store in Lancaster County on July 1, 2021.
During the course of this investigation, investigators recovered three of the 12 firearms purchased by Thompson. Two of the three recovered were located in Bass’s belongings, while the third was recovered in an alleyway in downtown Lincoln on July 14, 2021.
Following his arrest, Bass bonded out of jail. Bass was again arrested in Lincoln on September 28, 2021, after being federally indicted in this case. At that time Bass possessed at least 17 grams of actual methamphetamine, a handgun, ammunition, baggies, a drug ledger, and scales.
Thompson was charged in federal court in connection with this investigation. She pled guilty on August 2, 2022, to transferring a firearm to a felon, and is scheduled to be sentenced on January 24, 2023.
This case was investigated by the Lincoln Police Department, the Cass County Sheriff’s Office, the Nebraska State Patrol, and the FBI. 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.
H-2 Cartel Lieutenant Extradited from Mexico to Face Narcotics Trafficking and Firearms ChargesRead the Press Release
Carlos Silva Arellano, also known as “Bolas,” was arraigned today before United States Magistrate Judge Lois Bloom at the federal courthouse in Brooklyn on an indictment charging him with participating in a large-scale narcotics distribution conspiracy and using one or more firearms in connection with narcotic offenses. The defendant, a Mexican citizen, was extradited from Mexico to the United States on November 23, 2022. Silva Arellano was ordered detained pending trial.
Breon Peace, United States Attorney for the Eastern District of New York, and Anne Milgram, Administrator, United States Drug Enforcement Administration (DEA), announced the extradition and arraignment.
“As alleged, the defendant, a trusted member of a notoriously violent drug cartel, participated in the importation of thousands of kilograms of dangerous drugs into our country for sale in our communities. He will now answer to the American justice system for his role in the crimes alleged,” stated United States Attorney Peace. “Our Office is committed to working with our international partners to dismantle destructive drug trafficking organizations, wherever they are.”
Mr. Peace extended his appreciation to the DEA’s Los Angeles and Mexico City, Mexico offices, the United States Marshals Service, the United States Department of State, the Department of Justice’s Office of International Affairs and the Government of Mexico.
“The H-2 Cartel and its associates have smuggled multi-ton quantities of heroin, cocaine, and methamphetamine into our country for years, using intimidation and violence to build and protect their criminal empire,” said DEA Administrator Milgram. “The continuous flood of addictive and dangerous drugs into the United States remains a threat to the safety and health of our communities. Today’s extradition highlights the important work of DEA, alongside our U.S. and global partners, to bring dangerous drug traffickers to justice.”
According to the indictment and court filings, the defendant was a member of the H-2 Cartel, a violent Mexican drug trafficking organization based in Nayarit and Sinaloa, Mexico, that was previously led by Juan Francisco Patron Sanchez. The H-2 Cartel had numerous distribution cells in the United States, including in Los Angeles, Las Vegas, Ohio, Minnesota, North Carolina and New York. The DEA estimates that between January 2013 and February 2017, the H-2 Cartel distributed, on a monthly basis, hundreds of kilograms of heroin, cocaine and methamphetamine, and thousands of kilograms of marijuana into the United States and earned millions of dollars in illegal proceeds in return. In furtherance of its drug trafficking operation, the H-2 Cartel used firearms and physical violence and is associated with numerous homicides.
Between June 2013 and December 2016, the defendant allegedly conspired with the H-2 Cartel to smuggle large quantities of cocaine, heroin, methamphetamine and marijuana from Mexico into the United States and distribute the drugs throughout the country, including in the Eastern District of New York. The defendant allegedly established heroin distribution networks on behalf of the H-2 Cartel, coordinating with and directing several individuals to receive and sell large amounts of heroin.
The extradition of Silva Arellano is the result of an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) investigation led by the United States Attorney’s Office for the Eastern District of New York and the DEA. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. 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.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces up to life in prison.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Craig R. Heeren, Ryan C. Harris and Andrew D. Wang are in charge of the prosecution.
The Defendant:
CARLOS SILVA ARELLANO
Age: 36
MexicoE.D.N.Y. Docket No. 16-CR-241 (S-2) (CBA)