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Tuesday 22 November 2022
Tonawanda Man Pleads Guilty to Selling Meth and A Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Jason Cartwright, 41, of Tonawanda, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of methamphetamine and possession of firearms in furtherance of drug trafficking, which carry a mandatory minimum penalty of five years in prison, a maximum of life and a $10,000,000 fine.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that in October 2021, Cartwright conspired with others to sell methamphetamine. On November 1, 2021, the Lackawanna Police Department and FBI executed a search warrant at Cartwright’s Dunlop Avenue residence. Investigators seized approximately 1.2 kilograms of methamphetamine, five firearms, loaded magazines, three bulletproof vests, three digital scales, a 2021 Chevrolet Traverse, and $48,367 in United States currency.
The plea is the result of an investigation by the Lackawanna Police Department, under the direction of Chief Mark Packard and the Federal Bureau of Investigation, under the direction of Acting Special Sergeant-in-Charge Michael Stansbury.
Sentencing is scheduled for February 8, 2023, at 10:00 a.m. before Judge Sinatra.
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Toledo Man Sentenced to More Than 21 Years in Prison for Receipt and Distribution of Thousands of Files of Child PornographyRead the Press Release
TOLEDO – Thomas K. Tetreau, 48, of Toledo, Ohio, was sentenced on Monday, Nov. 21, 2022, to more than 21 years in prison by U.S. District Judge Jeffrey J. Helmick after Tetreau pleaded guilty to two counts of receipt and distribution of child pornography.
According to court documents, on Aug. 10, 2021, law enforcement authorities with the United States Secret Service (USSS) executed a search warrant at Tetreau’s Toledo-area residence after an investigation determined that Tetreau had shared numerous files of child pornography over the internet. During the execution of the warrant, authorities seized multiple electronic devices from Tetreau’s residence, including a desktop computer and hard drives that were later found to contain over 220 videos and over 5,600 images of child pornography.
At sentencing, prosecutors raised Tetreau’s criminal history of sexually abusing minors as relevant information for the Court to consider, which includes two separate convictions in the Lucas County Court of Common Pleas for attempted gross sexual imposition of a minor.
This case was investigated by the United States Secret Service (USSS) and was prosecuted by Assistant U.S. Attorney Tracey Ballard Tangeman.
Tobyhanna Man Charged with Drug Trafficking OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Darius Jamal Scott, age 45, of Tobyhanna, Pennsylvania, was indicted by a federal grand jury for drug trafficking offenses involving heroin, fentanyl, and cocaine.
According to United States Attorney Gerard M. Karam, the indictment alleges that from approximately April 2022 until June 15, 2022, Scott conspired with others to distribute heroin, fentanyl, and cocaine in the Monroe County area.
The matter was investigated by Homeland Security Investigations (HSI) and the Pennsylvania Office of the Attorney General’s Bureau of Narcotics Investigations (BNI). Assistant United States Attorney Jeffery St John is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case is also being brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
The maximum penalty under federal law for this offense is 40 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Tennessee State Senator Pleads Guilty to Campaign Finance SchemeRead the Press Release
Tennessee State Senator Brian Kelsey pleaded guilty today to violating campaign finance laws and conspiring to defraud the Federal Election Commission (FEC) as part of a scheme to benefit his 2016 campaign for U.S. Congress.
According to court documents, Kelsey, 44, of Germantown, admitted that he conspired to, and did, secretly and unlawfully funnel money from multiple sources, including his own Tennessee State Senate campaign committee, to his authorized federal campaign committee. Kelsey, who was a practicing attorney, and his co-conspirators, including Joshua Smith, also caused a national political organization to make illegal and excessive contributions to Kelsey’s federal campaign committee by secretly coordinating with the organization on advertisements supporting Kelsey’s federal candidacy, which caused false reports of contributions and expenditures to be filed with the FEC.
Kelsey and his co-conspirators orchestrated the concealed movement of $91,000 – $66,000 of which came from Kelsey’s State Senate campaign committee, and $25,000 of which came from a nonprofit corporation that publicly advocated on legal justice issues – to a national political organization for the purpose of funding advertisements that urged voters to support Kelsey in the August 2016 primary election. Kelsey and his co-conspirators also caused the political organization to make $80,000 worth of contributions to Kelsey’s federal campaign committee in the form of coordinated expenditures.
Kelsey pleaded guilty to conspiracy to defraud the FEC and aiding and abetting the acceptance of excessive contributions on behalf of a federal campaign. He is scheduled to be sentenced on June 9, 2023, and faces a maximum penalty of five years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Joshua Smith pleaded guilty last month to aiding and abetting the solicitation, receipt, direction, transfer, and spending of soft money in connection with a federal election. He is awaiting sentencing.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee, the U.S. Attorney’s Office for the Western District of Tennessee, and Special Agent in Charge Douglas Korneski of the FBI Memphis Field Office made the announcement.
The FBI is investigating the case.
Trial Attorney John Taddei of the Criminal Division’s Public Integrity Section, Assistant U.S. Attorney Amanda Klopf for the Middle District of Tennessee, and Assistant U.S. Attorney David Pritchard for the Western District of Tennessee are prosecuting the case.
Tennessee Home Business Owner Convicted of Filing False Tax ReturnsRead the Press Release
A federal jury convicted a Tennessee man on Nov. 21 of filing false tax returns that omitted income he earned from his business.
According to court documents and evidence presented at trial, David Haley, 65, of Clarksville, owned Haley & Associates Mechanical Contractors, a heating and plumbing business. From 2014 through 2017, Haley & Associates was hired as the subcontractor on commercial projects in middle Tennessee and was paid more than $1,000,000 for each year. The contractors that hired Haley & Associates generally paid via check and reported the payments to the IRS on Forms 1099-MISC as non-employee compensation. Even though Haley personally received a portion of the company’s earnings as business income and nonemployee compensation, he reported earning no income on his 2014-2017 tax returns. By not reporting income on his tax returns for tax years 2015 through 2017, Haley caused the IRS a loss of approximately $186,290.
Haley was convicted of three counts of filing false tax returns for tax years 2015, 2016, and 2017. The jury acquitted Haley of one count of filing a false tax return relating to his 2014 tax filing.
Haley will be sentenced at a later date. He faces a maximum penalty of three years in prison for each of three counts of filing false tax returns. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee made the announcement.
IRS-Criminal Investigation investigated the case.
Assistant U.S. Attorney Kathryn W. Booth and Trial Attorney Mitchell T. Galloway of the Justice Department’s Tax Division are prosecuting the case.
Tarpon Springs Man Charged with Distributing and Possessing Sexual Abuse MaterialsRead the Press Release
Tampa, Florida –United States Attorney Roger B. Handberg announces the return by a grand jury of an indictment charging Ian Grantz (24, Tarpon Springs) with distribution of sexual abuse materials and possession of child sexual abuse materials. If convicted on all counts, Grantz faces a mandatory minimum penalty of 5 years, and up to 20 years in federal prison. The indictment also notifies Grantz that the United States intends to forfeit an iPhone, which is alleged to be traceable to proceeds of the offense.
According to the indictment and court proceedings, an investigation began due to Grantz posting child sexual abuse material images depicting infants and toddlers being sexually abused on his Tumblr account. Agents conducted a residential search warrant, during which Grantz provided his cell phone for forensic review. An analysis of the cell phone revealed additional child sexual abuse material images, including pornographic images of a child living in the Tampa Bay area. Grantz admitted to distributing and possessing child sexual abuse images.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Abigail K. King.
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), 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.projectsafechildhood.gov.
State Senator Brian Kelsey Pleads Guilty to Campaign Finance ChargesRead the Press Release
NASHVILLE – Tennessee State Senator Brian Kelsey pleaded guilty today to violating campaign finance laws and conspiring to defraud the Federal Election Commission (FEC) as part of a scheme to benefit his 2016 campaign for U.S. Congress.
Kelsey and Joshua Smith, of Nashville, were indicted by a federal grand jury in Nashville in October 2021 and charged with violating multiple campaign finance laws.
According to court documents, Kelsey, 44, of Germantown, admitted that he conspired to and did secretly and unlawfully funnel money from multiple sources, including his own Tennessee State Senate campaign committee, to his authorized federal campaign committee. Kelsey and his co-conspirators, including Joshua Smith, also caused a national political organization to make illegal, excessive contributions to Kelsey’s federal campaign committee by secretly coordinating with the organization on advertisements supporting Kelsey’s federal candidacy and to cause false reports of contributions and expenditures to be filed with the FEC.
Kelsey and the other conspirators orchestrated the concealed movement of $91,000 — $66,000 of which came from Kelsey’s State Senate campaign committee, and $25,000 of which came from a nonprofit corporation that publicly advocated on legal justice issues — to a national political organization for the purpose of funding advertisements that urged voters to support Kelsey in the August 2016 primary election. Kelsey, Smith, and others also caused the political organization to make $80,000 worth of contributions to Kelsey’s federal campaign committee in the form of coordinated expenditures.
Kelsey pleaded guilty to conspiracy to defraud the FEC and aiding and abetting the acceptance of excessive contributions on behalf of a federal campaign. He is scheduled to be sentenced on June 9, 2023 and faces a maximum penalty of five years in prison on each count. Chief U.S. District Court Judge Waverly D. Crenshaw, Jr. will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Joshua Smith pleaded guilty last month to aiding and abetting the solicitation, receipt, direction, transfer, and spending of soft money in connection with a federal election and is awaiting sentencing.
U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee; Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; the U.S. Attorney’s Office for the Western District of Tennessee; and Special Agent in Charge Douglas Korneski of the Federal Bureau of Investigation’s Memphis Field Office made the announcement.
The FBI is investigating the case.
Assistant U.S. Attorneys Amanda Klopf of the Middle District of Tennessee and David Pritchard of the Western District of Tennessee and Trial Attorney John Taddei of the Justice Department’s Public Integrity Section are prosecuting the case.
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St. Louis Man who Carjacked Mother, Infant Sentenced to 11 Years in PrisonRead the Press Release
ST. LOUIS – U.S. District Judge John A. Ross on Tuesday sentenced a man who stole a car at gunpoint from a mother and infant to 11 years in prison.
On Oct. 28, 2021, a woman was placing her infant in a car seat in her 2014 Hyundai Elantra in south St. Louis when Bryant Carless pointed a gun at her and demanded the keys. Carless was spotted by police soon after and then fled from the Elantra. After he was caught, police found the woman’s wallet, keys and a Taurus 9mm pistol, Carless’ plea agreement says.
Carless, now 32, of St. Louis, pleaded guilty in August to one carjacking charge and a charge of possession and brandishing a firearm in furtherance of a crime of violence.
The case was investigated by the St. Louis Metropolitan Police Department and the FBI. Assistant U.S. Attorney Cassandra Wiemken prosecuted the case.
St. Louis County Man Sentenced to 88 Months in Prison for Multiple FraudsRead the Press Release
ST. LOUIS –U.S. District Judge Catherine D. Perry on Tuesday sentenced a man who committed a series of frauds that cost victims $285,998 to 88 months in prison and ordered him to repay the money.
From October 2019 through November 2021, Michael Worsham orchestrated a series of frauds. He bought vehicles using stolen identities, took out bank loans in the names of others and stole checks and then altered and cashed them.
“He was ripping off everyone,” Assistant U.S. Attorney Edward Dowd III said in court.
Worsham admitted using stolen or false identification to buy a 2015 Mustang, a black Chevy Avalanche and a 2021 Suzuki motorcycle. He also paid a friend to use a stolen identity to buy a 2021 Honda motorcycle. He unsuccessfully tried to buy a $17,841 Ford Mustang GT.
Worsham also took out a series of four to five-figure loans, and he altered checks and then deposited them, again reaping thousands of dollars.
Worsham told O’Fallon, Missouri police that he bought stolen personal information online before applying for loans online, estimating that he’d committed $200,000 in fraudulent activity, his plea agreement says. Worsham said he committed fraud to buy drugs and gamble.
Worsham, now 34, pleaded guilty in August to two counts of wire fraud, seven counts of bank fraud and one count of aggravated identity theft.
"Worsham engaged in a multitude of fraudulent activities that not only caused financial hardships and loss of funds to those whose identities he stole, but to businesses and taxpayers as well,” said Special Agent in Charge of Homeland Security Investigations Kansas City Katherine Greer. “These type of crimes are often minimalized by those not directly involved, but often there is a snowball effect that could result in increased fees that are unfortunately then passed along to consumers and taxpayers. HSI and our law enforcement partners are dedicated to seeking criminals, like Worsham, who are victimizing for their own gain.”
The case was investigated by Homeland Security Investigations, aided by a number of police departments including those in Maryland Heights, Arnold, O’Fallon, St. Louis County and St. Louis. Assistant U.S. Attorney Edward Dowd III is prosecuting the case.
St. Louis County Man Admits Possessing MethamphetamineRead the Press Release
ST. LOUIS – A man from St. Louis County on Tuesday admitted selling roughly a pound of methamphetamine per week and now could face up to 20 years in prison.
Justin Vernon Neilsen, 38, pleaded guilty in front of U.S. District Judge Henry E. Autrey to one felony count of distribution of methamphetamine. He admitted that during an investigation of him by the Drug Enforcement Administration, investigators bought 166 grams of methamphetamine from him while he was armed with a handgun.
The Bureau of Alcohol, Tobacco, Firearms and Explosives joined the investigation, and they learned that Neilsen had three storage units in St. Louis. During a court-authorized search of those units, investigators found three rifles, a Kevlar vest, high-capacity magazines, military-style ammunition cans and hundreds of rounds of ammunition. Neilsen was arrested at his home with the help of an ATF K-9. They found 447 grams of methamphetamine and a shotgun. Neilsen told investigators that he sold about one pound of methamphetamine per week, his plea agreement says.
Neilsen is set to be sentenced February 22 and could face up to 20 years in prison.
The case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Charles County Regional Drug Task Force.
This effort is part of an Organized Crime Drug Enforcement Task Force (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.
St. Francis Man Sentenced on Firearm ChargeRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that a St. Francis, South Dakota, man convicted of Prohibited Person in Possession of a Firearm was sentenced on November 21, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Justin Eagle Pipe, age 38, was sentenced to 15 months in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Eagle Pipe was indicted for Prohibited Person in Possession of a Firearm by a federal grand jury in April 2022. He pleaded guilty on August 23, 2022.
On January 1, 2022, Rosebud Sioux Tribal Law Enforcement Services officers conducted a traffic stop of Eagle Pipe’s vehicle due to erratic driving. Officers found Eagle Pipe intoxicated behind the wheel. During a pat down search of Eagle Pipe, officers located a Glock handgun and methamphetamine syringe. Eagle Pipe’s urinalysis was positive for methamphetamine and marijuana. Eagle Pipe was interviewed and admitted to being a regular methamphetamine user. He also admitted that his prior federal felony conviction made it illegal for him to posses firearms.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Eagle Pipe was immediately remanded to the custody of the U.S. Marshals Service.
Springfield, Illinois, Man Sentenced to 120 Months in Federal Prison for Attempted Enticement of a MinorRead the Press Release
SPRINGFIELD, Ill. – A Springfield, Illinois, man, Stacey Furlow, 61, of the 3000 block of North Peoria Road, was sentenced today concurrent terms of 120 months’ imprisonment for attempted enticement of a minor, 60 months’ imprisonment for use of interstate facilities to attempt to transmit information about a minor, and 120 months’ imprisonment for attempted transfer of obscene material to a minor. Upon release from prison, Furlow will serve a five-year term of supervised release.
At the sentencing hearing in front of U.S. District Judge Sue E. Myerscough, the government established that between August 27 and August 29, 2020, Furlow met an individual online whom he believed was a fifteen-year-old child. Despite learning the individual’s age, Furlow discussed engaging in sexual activity with that person, asked for the individual’s address on numerous occasions, and sent inappropriate pictures of himself. On August 29, 2020, after confirming that the person he believed to be a minor was alone, he asked for the child’s address and drove to the residence expecting to engage in sexual conduct; he was then arrested.
Furlow was indicted in September 2020 and was convicted in June 2022 following a two-day jury trial. Furlow has remained in the custody of the U.S. Marshals since his arrest.
The statutory penalties for attempted enticement of a minor are 10 years to life imprisonment, a possible fine of $250,000, and a five-year to life term of supervised release. The statutory penalties for use of interstate facilities to attempt to transmit information about a minor are up to five years’ imprisonment, a possible fine of $250,000, and a five-year to life term of supervised release. The statutory penalties for attempted transfer of obscene material to a minor are up to ten years’ imprisonment, a possible fine of $250,000, and up to a three-year term of supervised release.
The Federal Bureau of Investigation, Springfield Field Office – with assistance from the Sangamon County Sheriff’s Office; U.S. Immigration and Customs Enforcement Homeland Security Investigations; the Springfield Police Department; and the Illinois State Police – investigated the case. Assistant U.S. Attorneys Tanner K. Jacobs and Sierra Senor-Moore represented the government in the prosecution.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (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.projectsafechildhood.gov.
Somerset County Man Admits $850,000 Paycheck Protection Program Fraud SchemeRead the Press Release
TRENTON, N.J. – A Somerset County, New Jersey, man admitted fraudulently obtaining over $850,000 in federal Paycheck Protection Program (PPP) loans U.S. Attorney Philip R. Sellinger, announced today.
Butherde Darius, 50, of North Plainfield, New Jersey, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court on Nov. 21, 2022, to an information charging him with one count of conspiracy to commit bank fraud, and one count of money laundering.
According to documents filed in this case and statements made in court:
Darius conspired with at least one individual to submit a fraudulent PPP loan application to a lender on behalf of a purported business that he controlled, obtaining over $850,000. He engaged in various financial transactions with the fraudulently obtained loan proceeds. The application Darius and his conspirator submitted contained fraudulent representations to the lender – a Federal Home Loan Bank member – and the SBA, including bogus federal tax documents purportedly from the IRS. Darius also fabricated the existence of employees and wages paid through the purported businesses. According to IRS records, however, none of the purported tax documents that were submitted in support of the loan applications were ever filed with the IRS. Darius loan application for his purported business was approved for approximately $852,000 in federal COVID-19 emergency relief funds meant for distressed small businesses. Darius then used a portion of the proceeds for various personal expenses.
The count of conspiracy to commit bank fraud carries a maximum penalty of 30 years in prison and a $1 million fine. The count of money laundering carries a maximum penalty of 10 years in prison and a maximum fine of $250,000. Sentencing is scheduled for March 6, 2023.
U.S. Attorney Sellinger credited special agents of IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy L Tomlins; special agents of the Social Security Administration, Office of Inspector General, under the direction of Special Agent in Charge Sharon MacDermott; special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney; postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Acting Inspector in Charge Raimundo Marrero, Philadelphia Division; special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak; special agents of the Board of Governors of the Federal Reserve System Consumer Financial Protection Bureau, Office of Inspector General, under the direction of Acting Special Agent in Charge Stephen Donnelly; special agents of the Federal Deposit Insurance Corporation – Office of Inspector General, under the direction of Special Agent in Charge Patricia Tarasca in New York; and special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel in Newark, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorneys David E. Dauenheimer and Katherine M. Romano of the U.S. Attorney’s Office’s Health Care Fraud Unit in Newark.
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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Sioux Falls Man Sentenced for Illegal Possession of FirearmRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that a Sioux Falls, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on November 18, 2022, by U.S. District Judge Jeffrey L. Viken.
Sage Yellow Thunder, 31, was sentenced to 48 months in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Yellow Thunder was indicted for Possession of a Firearm by a federal grand jury in June of 2021. He pleaded guilty on July 29, 2022.
In January of 2021, in Rapid City, Yellow Thunder, a previously convicted felon who is prohibited from possessing firearms, knowingly possessed a Remington Arms Company Incorporated, model 1911 R1, .45 AUTO caliber, semi-automatic pistol, which was found after Yellow Thunder came into contact with law enforcement.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by Bureau of Alcohol, Tobacco and Firearms, and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Yellow Thunder was immediately remanded to the custody of the U.S. Marshals Service.
Sioux Falls Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that a Sioux Falls, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on November 21, 2022, by U.S. District Judge Karen E. Schreier.
Ricky Jason Bedlingon, age 43, was sentenced to three years of probation and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Bedlington was indicted by a federal grand jury in September of 2021. He pled guilty on August 29, 2022.
The conviction stems from Bedlington failing to register as a sex offender as required by federal law between May 28, 2021, and May 31, 2021. Bedlington had previously been convicted of a sex offense in state court. Bedlington failed to provide information required by the Sex Offender Registration and Notification Act relating to intended travel to a foreign country.
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 the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Second Anchorage Man Sentenced to 35 Years in Federal Prison for Kidnapping and Drug TraffickingRead the Press Release
ANCHORAGE – A second Anchorage man was sentenced late yesterday by Chief U.S. District Judge Sharon Gleason to 35 years in prison for kidnapping and drug trafficking.
According to court documents, Faamanu Vaifanua, aka “Junior,” 31, and his brother Macauther Christmas Vaifanua, aka “Mac,” 35, distributed heroin in the Anchorage area through the kidnapped victim between January 2015 and August 2017.
Believing that the victim had stolen drugs from them, Mac lured the victim to his home on August 13, 2017. As the victim was leaving the residence, he was led instead into the garage where he was forcibly bound and gagged. The victim was then beaten and tortured for nearly an hour by Junior and Mac and two other co-defendants in an assault that was captured on Mac’s home video surveillance system. The Vaifanua brothers and their co-defendants used an aluminum baseball bat, a metal broom stick and their hands and feet to beat the defendant into unconsciousness, causing severe injuries and permanent disability. After a certain point, believing that the victim was either dead or near death, they placed the victim inside a metal dog kennel while still bound and gagged.
The Vaifanua brothers and co-defendants then threatened a person in the area at gunpoint to back his pickup truck to the garage door. The group loaded the kennel into the back of the truck with the victim still in it. The driver was told at gunpoint to leave and never be seen again. After driving away from the area, the driver stopped to see what had been loaded into his truck. Upon seeing the victim, he immediately drove to a hospital emergency room where the victim received life-saving medical attention including brain surgery.
“Junior” Vaifanua pleaded guilty to federal kidnapping and drug trafficking charges in June 2021.
“This was a calculated act of savagery against another human being, not a random act of violence,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “The Vaifanua brothers will spend decades in federal prison for their complete disregard for human life. Drug dealers across the state should take note – vicious attacks will not be tolerated for any reason. My office is committed to working tirelessly with our law enforcement partners to ensure justice is served.”
“The defendant’s cruel disregard to human life and suffering is appalling,” said Assistant Special Agent in Charge Donald W. Lee II of the FBI Anchorage Field Office. “When individuals, such as the defendant and his co-conspirators, threaten the safety of our neighborhoods and communities, they will be met with a certain justice.”
“The abuse suffered by the victim is heinous,” stated Anchorage Police Chief Michael Kerle. “The physical, emotional, and psychological effects of this magnitude of trauma are incomprehensible. It is our sincere hope today’s sentencing will aid in the victim’s life-long healing process.”
Co-defendants in this case include:
- Macauther Christmas Vaifanua, 35, aka “Mac” was sentenced to 50 years in federal prison on kidnapping and drug trafficking charges.
- Jeffrey Ahvan, 33, pleaded guilty to kidnapping in October 2019 and is awaiting sentencing.
- Rex Faumui, 28, pleaded guilty to kidnapping in October 2022 and is awaiting sentencing.
- Tamole Lauina, 25, was sentenced to seven years in prison on being an accessory after the fact charge.
The Anchorage Police Department (APD), the Federal Bureau of Investigation (FBI), U.S Marshals Service (USMS) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated the case.
Assistant U.S. Attorneys Stephan A. Collins and Adam Alexander prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), 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.
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Roswell fentanyl dealer and his supplier sentenced to federal prison for causing overdose deathRead the Press Release
ATLANTA - Hubert Nathans has been sentenced to federal prison for selling fake Roxicodone pills containing fentanyl to multiple people in Roswell, Georgia, in 2017 and 2018, including pills that resulted in the death of one buyer and serious bodily injury to another. Nathans’ drug supplier, Edward Culton, was sentenced to federal prison earlier this year.
“Nathans and Culton remorselessly sought to profit from drug addiction at any cost,” said U.S. Attorney Ryan K. Buchanan. “Their greed resulted in the tragic death of one person and the near-death of another. As the opioid epidemic continues to rage nationwide, these significant sentences should make clear that opioid suppliers and dealers will be held accountable for the devastation they wreak in our communities.”
“Last year, more than 100,000 people died of drug poisoning, many of which were caused by fentanyl – that’s more than double the occupancy of Truist Park” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “These two defendants contributed to this staggering statistic and will therefore spend a lengthy time behind bars.”
“The success of this investigation is a result of the collaborative efforts of ATF and our local partners,” said ATF Assistant Special Agent in Charge Beau Kolodka “ATF will continue to dedicate federal resources in conjunction with the crucial contributions of local agencies towards the eradication illegal drug and firearm activity.
“Each and every pill distributed by Nathans and Culton in our community represented the potential for another life lost. We remain committed to working hand-in-hand with our law enforcement partners to stem the tide of overdose deaths, and to aggressively pursuing the entire criminal ecosystem that contributes to them,” said Roswell Police Chief James Conroy.
According to U.S. Attorney Buchanan, the charges, and other information presented in court: In the fall of 2017, the Roswell Police Department began an investigation after reports that Nathans was distributing opioids that had led to overdoses. Law enforcement eventually confirmed that Nathans was distributing fake Roxicodone pills containing fentanyl and that Edward Culton, who was living in a high-rise apartment in the Buckhead section of Atlanta, was his supplier.
On February 15, 2018, agents arrested Culton and Nathans. Agents seized almost 1000 pills containing fentanyl during a search of Culton’s apartment. The investigation further revealed that Nathans sold fentanyl pills supplied by Culton to 24-year-old T.C. on October 2, 2017, and that those pills caused T.C.’s overdose death.
After learning of T.C.’s death, Nathans egregiously returned to dealing fentanyl and, three months later, sold pills to 30-year-old E.M., who also would have died had she not received emergency treatment at a local hospital.
Hubert Nathans, 33, of Roswell, Georgia, was sentenced by U.S. District Judge Timothy C. Batten, Sr., to 12 years in prison followed by 15 years of supervised release. He was convicted of these charges on August 13, 2018, after he pleaded guilty to conspiring to distribute and possessing with intent to distribute fentanyl that caused overdoses resulting in death and serious bodily injury.
Edward Culton, 29, of Atlanta, Georgia, was sentenced to 18 years, three months in prison to be followed by five years of supervised release. He was convicted of these charges on September 8, 2022, after he pleaded guilty to conspiring to possess fentanyl with intent to distribute and aiding and abetting the distribution of fentanyl.
This case was investigated by the Drug Enforcement Administration, the Roswell Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Assistant U.S. Attorneys Tyler Mann and Nicholas Hartigan prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Rockford Man Convicted of Robbing Banks in Rockford and BelvidereRead the Press Release
ROCKFORD — A federal jury has convicted a Rockford man of robbing banks in Rockford and Belvidere last year.
DEMONTRION DESHAN PHILLIPS, 28, stole $5,930 in a robbery of Midland States Bank, 1700 N. Alpine Rd. in Rockford, on Apr. 7, 2021, and $4,408 in a robbery of Midland States Bank, 600 S. State St. in Belvidere, on May 3, 2021.
After a four-day trial in federal court in Rockford, the jury on Thursday found Phillips guilty of both counts of bank robbery. Phillips faces a maximum sentence of 40 years in federal prison and a total fine of up to $500,000, plus restitution. U.S. District Judge Iain D. Johnston set sentencing for March 16, 2023, at 1:30 p.m.
The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; John S. Morales, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI; Carla Redd, Chief of the Rockford Police Department; and Shane Woody, Chief of the Belvidere Police Department. The government is represented by Assistant U.S. Attorneys Talia Bucci and Vincenza L. Tomlinson.
Evidence at trial showed that Phillips entered the banks posing as a legitimate customer. After handing a deposit slip to the teller, Phillips announced a robbery and demanded money. In the Belvidere robbery, Phillips threatened a teller by saying, “Don’t make me come over the counter,” after the teller did not give Phillips as much money as he demanded.
Three days after the Rockford robbery, law enforcement executed a search warrant at Phillips’s residence in Rockford and found $5,090 in cash hidden in a sock. The cash included numerous bills that were identified by serial numbers as having been stolen from the banks during the two heists.
Phillips committed the robberies while on court-supervised release following a prior federal conviction for robbing two banks in Rockford in 2017.
Quincy, Illinois, Man Sentenced to 120 Months in Prison for Distributing MethamphetamineRead the Press Release
SPRINGFIELD, Ill. – A Quincy, Illinois, man, Michael Bell, 39, of the 800 block of North 8th Street, was sentenced on November 18, 2022, to 120 months’ imprisonment for distributing methamphetamine in Quincy.
At the sentencing hearing in front of U.S. District Judge Sue Myerscough, the government presented evidence that on August 30 and September 2, 2021, Bell knowingly and intentionally distributed 50 grams or more of methamphetamine (actual), a Schedule II controlled substance. Bell has multiple prior drug convictions.
Bell was indicted in October 2021 and pleaded guilty in July 2022. He has remained in the custody of the United States Marshal since his arrest.
The statutory penalties for distributing 50 grams or more of methamphetamine (actual) are up to life imprisonment, up to a $10,000,000 fine, and up to a life term of supervised release.
The West Central Illinois Task Force, Quincy Police Department, and Illinois State Police investigated the case. Assistant U.S. Attorney Matthew Z. Weir represented the government in the prosecution.
The case against Bell 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.
Pittsburgh Man Sentenced to 10 Years for Possessing Crack and FentanylRead the Press Release
PITTSBURGH, PA – A former resident of Pittsburgh’s Troy Hill neighborhood has been sentenced in federal court to 120 months’ imprisonment and six years of supervised release on his conviction of violating federal narcotics laws, United States Attorney Cindy K. Chung announced today.
United States District Judge Cathy Bissoon imposed the sentence on Romeo Price, 34.
According to information presented to the Court, on or about Nov. 15, 2018, detectives executed a state search warrant for Price’s residence. During the search, detectives found plastic bags containing crack cocaine and several bundles and stamp bags containing fentanyl.
Assistant United States Attorney Yvonne M. Saadi prosecuted this case on behalf of the government.
United States Attorney Chung commended the Pittsburgh Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Price.
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.
Philadelphia Woman Sentenced to 18 Months in Prison for Pandemic Unemployment FraudRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Alexis Figueroa, age 32, of Philadelphia, was sentenced to 18 months in prison for conspiring to steal pandemic funds. She was sentenced by United States District Court Judge Christopher C. Conner.
According to United States Attorney Gerard M. Karam, Figueroa pled guilty to conspiring with five others to file false claims for unemployment assistance during the pandemic. These defendants gathered personal identification information from inmates housed within the Pennsylvania Department of Corrections system and filed unemployment claims. The payments were mailed to particular addresses in New Cumberland, Pennsylvania, where the funds were accessed. The conspirators arranged for the payment of approximately $94,000 in benefits which they were not entitled to obtain.
Andrew Marszalek, age 24, of New Cumberland, entered a guilty plea to the fraud conspiracy. He was sentenced to 18 months in prison. Nicholas Baggio, age 32, an inmate at the State Correctional Institution at Mahanoy, entered a guilty plea to conspiracy to commit mail fraud. He was sentenced to one year and day in prison. Jeovanny Shultz, age 28, an inmate at the State Correctional Institution at Mercer, entered a guilty plea and is awaiting sentencing. Oscar Martinez, age 30, an inmate at State Correctional Institution at Rockview, has also entered a guilty plea and is awaiting sentencing.
Joshua Powles, age 33, of Philadelphia, is wanted as a fugitive.
The case was investigated by the U.S. Postal Inspection Service and the United States Department of Labor Office of Inspector General. Assistant U.S. Attorney Michael Consiglio is prosecuting the case.
All persons charged are presumed to be innocent unless and until found guilty in court.
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Philadelphia Man Sentenced to 10 Years in Prison for Methamphetamine ConspiracyRead the Press Release
CAMDEN, N.J. – A Philadelphia man was sentenced to 120 months in prison for conspiring to distribute 50 grams or more of methamphetamine, U.S. Attorney Philip R Sellinger announced today.
Nasir White, 30, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of knowingly and intentionally conspiring to distribute and to possess with intent to distribute 50 grams or more of methamphetamine. Judge Kugler imposed the sentence on Nov. 21, 2022, in Camden federal court.
According to documents filed in this case and statements made in court:
On Oct. 9, 2019, White and Shawn McGuriman were arrested with 204 grams of methamphetamine, which they planned to sell to another person. McGuriman previously pleaded guilty to his role in the conspiracy and was sentenced in August 2021 to 10 years in prison.
In addition to the prison term, Judge Kugler sentenced White to five years of supervised release.
U.S. Attorney Philip R. Sellinger credited special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to today’s sentencing.
The government is represented by Deputy U.S. Attorney Andrew Carey of the U.S. Attorney’s Office.
Philadelphia Man Pleads Guilty to Drug ChargesRead the Press Release
PITTSBURGH – A Philadelphia, Pennsylvania, resident pleaded guilty in federal court today to violating federal narcotics laws, United States Attorney Cindy K. Chung announced today.
Zion Elam-Sturgis, age 23, of Philadelphia, pled guilty before United States District Judge Robert J. Colville.
According to information provided to the Court, Elam-Sturgis admitted to conspiring to possess with intent to distribute and distribute 28 grams or more of a mixture and substance containing a detectible amount of cocaine base, in Butler, Pennsylvania, between January 2017 and June 2020; and to possessing with intent to distribute 28 grams or more of a mixture and substance containing a detectible amount of cocaine base on June 2, 2020.
Judge Colville scheduled sentencing to occur on March 21, 2023, at 10:00 a.m. The law provides for a minimum of five years’ imprisonment and a maximum sentence of not more than 40 years in prison and a fine of up to $5,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Yvonne M. Saadi and Craig W. Haller are prosecuting this case on behalf of the United States.
The Pennsylvania State Police, the Federal Bureau of Investigation, and the Butler County District Attorney’s Drug Task Force led the investigation leading to the conviction in this case.
Papillion Man Sentenced for Receipt of Child PornographyRead the Press Release
Acting United States Attorney Steven Russell announced the Ramzi Yassine, 44, of Papillion, Nebraska, was sentenced today by Chief United States District Judge Robert F. Rossiter, Jr. for receipt of child pornography. Yassine was sentenced to 96 months’ imprisonment and was ordered to pay $15,000 in restitution. There is no parole in the federal system. After his release, Yassine will begin a five-year term of supervised release and will be required to register as a sex offender.
On May 1, 2017, the Nebraska State Patrol received a cyber-tip from an internet website known as Chatstep. Chatstep reported that one of its users had an account that uploaded an image identified as child pornography. Chatstep captured the Internet Protocol (IP) address of the identified user that had uploaded the image of child pornography. Law enforcement obtained information related to the IP addresses, which ultimately identified Yassine’s residence as the subscriber. On October 4, 2018, law enforcement executed a search of Yassine’s residence and seized computers. Forensic analysis of the computers found images of minors engaging in sexually explicit conduct. Some of the minors were under the age of 12.
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.
This case was investigated by the Nebraska State Patrol.
Owners of Franklin Gun Shop Plead Guilty to Federal ChargesRead the Press Release
NASHVILLE – The owners of Franklin Gun Shop pleaded guilty today in U.S. District Court to obstruction of justice and making false entries regarding the disposition of firearms, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
Alan Hassler, 49, Brian Hassler, 52, and Michael Hassler, 45, all of Franklin, Tennessee, and co- owners of Franklin Gun Shop, a Federal Firearms Licensee (FFL) in Williamson County, Tennessee, were charged in September following a federal regulatory inspection by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
“Proper record keeping is an essential requirement of all Federal Firearms Licensees,” said U.S. Attorney Wildasin. “When the firearms record-keeping process breaks down, the resulting implications can be disastrous and hinder law enforcement’s ability to properly investigate gun crimes or keep firearms out of the hands of violent criminals and disqualified persons. I commend the ATF for their vigorous attention to this matter.”
Court documents reflect that in 2016, the ATF performed a compliance inspection of the Franklin Gun Shop and numerous violations of applicable federal regulations regarding record keeping were found. A follow-up inspection by the ATF in 2020 found that hundreds of firearms, out of the more than 10,000 firearms in Franklin Gun Shop’s inventory, were unaccounted for in the business’s internal records. Over the course of the following year, hundreds of the previously unaccounted-for firearms were located within the business, but as of July 2021, approximately 144 firearms could not be located.
The Hasslers later provided fraudulent documentation to the ATF in an attempt to account for the missing firearms. In many cases, the Hasslers would take a completed, legitimate 4473 form —from a prior purchase — and would add one or more of the missing firearms to the form to make it appear to regulators that these firearms had been purchased as part of that original transaction. The goal was to deceive the ATF into believing that the firearms were not missing but had been sold. Subsequent interviews by the ATF with multiple customers identified on these fraudulent forms established that these customers had not purchased the firearms attributed to them. Several of these customers produced original receipts showing that the missing firearms had not been purchased as the falsified forms indicated.
“ATF’s core mission is to protect the public from violent crime, particularly crimes involving the use of firearms,” said Marcus Watson, Special Agent in Charge of ATF’s Nashville Division. “An essential part of this mission is ensuring that federal firearms licensees comply with applicable federal laws and regulations, particularly the implementing regulations of the Gun Control Act. This FFL committed numerous violations with the intentional disregard of their known legal duty and with plain indifference to their legal obligations. The ATF remains committed to ensuring public safety and compliance and enhancing the traceability of firearms.”
If the plea agreements are accepted by the Court, the Hasslers have agreed to a term of three months of home detention and two years of supervised release. The Hasslers have also surrendered their Federal Firearms License and will complete the audit in progress by the ATF.
Sentencing is scheduled for May 25, 2023.
This case is being investigated by the ATF and prosecuted by Assistant U.S. Attorney Robert E. McGuire.
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Ohio Woman Sentenced to 168 Months for Methamphetamine ConspiracyRead the Press Release
COVINGTON, Ky – A Mason, Ohio, woman, Amanda Baker, 38, was sentenced on Tuesday to 168 months in prison, by U.S. District Judge David Bunning, for conspiracy to distribute 50 grams or more of methamphetamine.
According to her plea agreement, Baker was involved in a conspiracy that distributed multiple kilograms of crystal methamphetamine in Northern Kentucky and Southern Ohio. Law enforcement seized almost two kilograms of crystal methamphetamine from Baker and a co-conspirator, Jeremy Anderson, on April 26, 2021, at a hotel in Covington, Kentucky.
Baker pleaded guilty in August 2022.
Anderson was sentenced to 138 months in prison on August 16, 2022.
Under federal law, each Defendant must serve 85 percent of their prison sentence. Both will also be under the supervision of the U.S. Probation Office for five years after their release from prison.
Carlton S. Shier IV, United States Attorney for the Eastern District of Kentucky; Keith Martin, Special Agent in Charge, DEA Detroit Field Division; Scott Hardcorn, Director of the Northern Kentucky Drug Strike Force; and Brian Valenti, Chief of the Covington Police Department, jointly announced the sentences.
The investigation was conducted by the Drug Enforcement Administration, the Northern Kentucky Drug Strike Force, and the Covington Police Department. The United States was represented by Assistant U.S. Attorney Tony Bracke.
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Ohio Gambling Business Owner Sentenced for Tax Fraud ConspiracyRead the Press Release
A Florida man was sentenced today to 36 months in prison for conspiring to defraud the IRS in connection with his ownership and operation of illegal gambling businesses in the Canton, Ohio area.
According to court documents and statements made in court, from 2009 through 2018, Larry Dayton, along with other co-conspirators, owned and operated two illegal gambling businesses, Skilled Shamrock and Redemption. As part of his guilty plea, Dayton admitted to conspiring with the other owners to defraud the IRS by filing false tax returns that omitted the cash income he received from illegal gambling. In 2013, Dayton stopped participating in the daily operation of the illegal gambling businesses. Between 2013 and 2018, Dayton nonetheless continued to receive his share of the profits from the businesses, in cash, even though he no longer was a declared owner of the enterprises. Dayton also admitted to fraudulently placing the gambling businesses in the names of others to conceal the true ownership interests of the other co-conspirators and himself. In total, Dayton did not report to the IRS more than $2 million in income.
In addition to the term of imprisonment, U.S. District Judge Donald Nugent ordered Larry Dayton to serve three years of supervised release and pay $938,000 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and First Assistant U.S. Attorney Michelle M. Baeppler for the Northern District of Ohio made the announcement.
IRS-Criminal Investigation, the U.S. Department of the Treasury, Office of the Inspector General, the Ohio Casino Control Commission, and the Ohio Casino Control Commission investigated the case. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations provided substantial assistance in the investigation.
Trial Attorneys Richard M. Rolwing and Sam Bean of the Tax Division and Assistant U.S. Attorneys Robert Patton and David Toepfer for the Northern District of Ohio prosecuted the case.
Ohio Company Settles False Claims Act Allegations of Billing for Non-Existent Construction MaterialsRead the Press Release
COLUMBIA, SOUTH CAROLINA — Wise Services Inc. (Wise), located in Dayton, Ohio, has agreed to pay $302,500 to resolve allegations that it violated the False Claims Act by causing the submission of false and fraudulent invoices for non-existent materials to the Department of Energy (DOE) and paying improper kickbacks. The settlement amount was negotiated based on Wise’s lack of ability to pay.
Wise was a subcontractor at the Mixed Oxide Fuel Fabrication Facility at the DOE Savannah River Site in Aiken, South Carolina. The United States alleged that Wise knowingly submitted to the prime contractor — MOX Services LLC, formerly known as CB&I AREVA MOX Services LLC (MOX) — hundreds of invoices charging millions of dollars for materials that did not exist. MOX presented those false invoices to DOE. The United States also alleged that Wise employees paid kickbacks to MOX employees involved in the scheme.
“The government expects both contractors and subcontractors to adhere to their contractual commitments,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Those who violate their commitments and undermine the integrity of the government’s procurement process will face appropriate consequences.”
“This settlement puts subcontractors on notice that they will be held accountable for submitting false invoices and paying kickbacks to contractors on federal contracts with the United States,” said U.S. Attorney Adair F. Boroughs for the District of South Carolina. “We are grateful to the Department of Energy’s Office of Inspector General and the National Nuclear Security Administration for their important work in this case.”
“The lawsuit filed by Justice Department and this settlement will serve as a deterrent to others who seek to defraud the Department of Energy,” said Inspector General Teri L. Donaldson for the Department of Energy. “We are always seeking out those who develop illegal schemes designed to harm the government and the American taxpayers and we will continue to do everything we can to detect and deter these fraudsters.”
The civil settlement includes the resolution of claims against Wise brought under the False Claims Act by the United States in the case captioned United States v. CB&I AREVA MOX Services LLC and Wise Services Inc., No. 19-cv-444 (D.S.C.). MOX paid $10 million in a settlement with the government earlier this year for its participation in the scheme.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of South Carolina, with assistance from the DOE Office of Inspector General and the National Nuclear Security Administration.
The matter was handled by Fraud Section Attorneys Don Williamson and Rory Skaggs, and Assistant U.S. Attorneys Johanna Valenzuela, James Leventis and Sheria Clarke for the District of South Carolina.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
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North Redington Shores Man Pleads Guilty in Murder-For-Hire and Fraud SchemesRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Alexander Lesczcynski (24, North Redington Beach) has pleaded guilty in two cases against him. In a case pending before U.S. District Judge Mary Scriven, Lesczcynski pleaded guilty to wire fraud, bank fraud, and money laundering. In a second case pending before U.S. District Judge James Moody, Lesczcynski pleaded guilty to murder-for-hire and obstruction of justice. Lesczcynski faces a maximum penalty of 30 years in federal prison in the fraud case, and up to, 10 years’ imprisonment in the murder-for-hire case.
According to the court documents, Lesczcynski used fictitious charitable entities, including Love & Bliss, Inc., to engage in numerous frauds. The schemes included fraudulently applying for and receiving two Payroll Protection Plan (“PPP”) loans totaling approximately $195,910, and engaging in a check-kiting scheme and attempting to deposit $2.7 million of worthless checks into the Love & Bliss, Inc. business account. Lesczcynski laundered the proceeds of the PPP and check-kiting schemes through multiple accounts in an effort to conceal those proceeds from the United States and forestall its recovery. The United States ultimately seized $337,000 from an account Lesczcynski controlled and, when he discovered that the money had been frozen, he attempted to have it released by producing a fabricated pardon purportedly signed by former President Donald Trump.
In a separate fraud scheme, Lesczcynski filed fraudulent warranty deeds purporting to deed to himself and his businesses ten properties around the United States collectively valued at more than $300 million. When property owners and attorneys attempted to correct the fraudulent deeds, Lesczcynski responded by sending harassing and threatening letters, emails, and faxes. Among the victims of Lesczcynski’s deed scheme were Victim 1 and Victim 2.
In April 2022, a grand jury in the Middle District of Florida charged Leszczynski with several crimes related to the above-described fraud scheme, including fraud related to the property owned by Victim 1 and Victim 2, in case, United States v. Alexander Leszczynski, 8:22-cr-155-MSS-SPF. He was arraigned on May 17, 2022, and ordered detained.
In August 2022, the FBI became aware that while incarcerated at the Pinellas County Jail, Leszczynski sought out a hitman to kill Victim 1 and Victim 2. Leszczynski reported to a confidential informant that he had $45,000 hidden at his residence available to pay someone to kill the victims. Leszczynski relayed to the confidential informant that his pending criminal case (the fraud case) would have to be dropped if the victims were dead. The confidential informant agreed to put Leszczynski in contact with a purported hitman, who was an undercover agent.
On September 8 and 9, 2022, Lesczcynski had calls with the undercover agent. Among other details, Lesczcynski shared Victim 1 and Victim 2’s name, address, physical descriptions, approximate ages, and provided additional details that would allow the undercover agent to find photographs of Victim 1 and Victim 2 online. Lesczcynski also negotiated price, settled on paying $30,000, and repeatedly ensured the undercover agent that he wanted Victim 1 and Victim 2 dead.
The fraud case was investigated by the Federal Bureau of Investigation, the Largo Police Department, the Indian Shores Police Department, and the Palm Beach Police Department. It will be prosecuted by Assistant United States Attorney Rachel Jones. The murder-for-hire case was investigated by the Federal Bureau of Investigation and the Pinellas County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Shauna S. Hale.
North Chili Man Convicted by A Federal Jury of 37 Counts of COVID Relief FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that a federal jury has convicted Michael Rech, 49, of North Chili, NY, of 37 counts of bank fraud, wire fraud, and money laundering. Each charge carries a maximum penalty of 30 years in prison and a fine of $500,000.
Assistant U.S. Attorneys Meghan K. McGuire and Sean C. Eldridge, who handled the prosecution of the case, stated that Rech was the Director, President, and CEO of Guardian of Humanity, Inc., a nonprofit corporation, as well as the sole member of Eclipse, a limited liability company. Rech applied for eight different Payroll Protection Program loans, fraudulently claiming that Guardian and Eclipse had employees and that he had been paying wages to these employees, which qualified him for the PPP loans. In total, he attempted to obtain over $880,000 in PPP funds. Subsequent investigation revealed that Rech’s companies did not have any employees and did not pay wages to anyone. Rech himself was unemployed and collecting unemployment benefits from the State of New York at the time.Rech received three PPP loans totaling approximately $277,500. Once he received the loans, Rech took the money out of the bank in amounts less than $10,000 to avoid federal reporting requirements. The Internal Revenue Service recovered all of the funds from two safes in Rech’s home and a bank account that Rech had sole control over. As a result of the trial, all $277,500 was forfeited back to the government.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29, 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
The verdict is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Thomas Fattorusso, Special Agent-in-Charge, New York Field Office, Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino, the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter, and the Small Business Administration.
Sentencing is scheduled for March 27, 2023, at 9:30 a.m. before U.S. District Judge Charles J. Siragusa, who presided over the trial of the case.
# # # #New Orleans Man Convicted of Drug Trafficking Charges at TrialRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on November 18, 2022 after a four (4) day trial before United States District Judge Eldon E. Fallon, GEORGE BENNETT, aka “G,” 39, from the greater New Orleans area, was convicted of three counts of drug trafficking charges.
At the conclusion of the trial, the jury found BENNETT guilty of conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin and a quantity of fentanyl, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B), and 846, distribution of a quantity of heroin and a quantity of fentanyl, and possession with intent to distribute a quantity of heroin and a quantity of fentanyl, both in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C).
At sentencing, BENNETT faces a mandatory minimum term of imprisonment of 10 years, a maximum term of life imprisonment, up to a $10,000,000 fine, and at least 5 years supervised release. BENNETT must also pay a mandatory special assessment fee of $100 for each count of conviction at sentencing. Sentencing in this matter is to be determined at a later date by the Court.
The case was investigated by the Jefferson Parish Sheriff’s Office and the Federal Bureau of Investigation New Orleans Gang Task Force. It was prosecuted by Assistant United States Attorneys André Jones, Melissa Bücher, and Christopher D. Usher of the U.S. Attorney’s Office.
New Jersey Man Sentenced to 57 Months in Prison for Threatening Federal Law Enforcement OfficersRead the Press Release
NEWARK, N.J. – A New Jersey man was sentenced to 57 months in prison for threatening to assault and murder federal law enforcement officers, U.S. Attorney Philip R. Sellinger announced today.
Frank Monte, 51, of New Jersey, was previously convicted following a one-week trial before U.S. District Judge John Michael Vazquez of three counts of threatening a federal law enforcement officer, and of two counts of transmitting threats in interstate commerce. Judge Vazquez imposed the sentence on Nov. 21, 2022, in Newark federal court.
According to documents filed in the case and the evidence at trial:
On July 21, 2019, Monte repeatedly called the emergency line of the U.S. Department of Veterans Affairs (VA) Police at the VA Lyons hospital campus. During one of those calls, Monte threatened to “shoot up” a VA Police officer. On Oct. 15, 2019, Monte called the office of a U.S. Congressman and spoke with a staff member. During that call, Monte threatened that if he ever saw a particular special agent of the U.S. Secret Service in New Jersey, Monte would assault him. On Oct. 18, 2019, Monte called a special agent of the U.S. Capitol Police. During that call, Monte once again threatened to assault the same special agent of the U.S. Secret Service.
In addition to the prison term, Judge Vazquez sentenced Monte to three years of supervised release.
U.S. Attorney Sellinger credited special agents of the U.S. Secret Service, Newark Field Office, under the direction of Special Agent in Charge Jose Riera, with the investigation leading to today’s sentencing. He also thanked the U.S. Department of Veterans Affairs Police, VA New Jersey Health Care System, under the direction of Acting Chief Minelli Torres-Sukola; members of the U.S. Capitol Police, Threat Assessment Section, under the direction of Assistant Special Agent in Charge Chad Beckett; members of the U.S. Marshals Service, under the direction of Marshal Juan Mattos Jr.; and members of the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Anthony P. Torntore and Assistant U.S. Attorney Andrew M. Trombly of the Cybercrime Unit in Newark.
Murrieta Man Sentenced to 5 Years in Prison for Misusing COVID-Relief Business Loans on Personal Expenses Such as Luxury CarsRead the Press Release
LOS ANGELES – A Riverside County man was sentenced today to 60 months in federal prison for using hundreds of thousands of dollars from the Paycheck Protection Program (PPP) for personal expenses such as luxury cars after he obtained a COVID-business relief loan for more than $7 million on behalf of his pothole-repair company.
Oumar Sissoko, 59, of Murrieta, was sentenced by United States District Judge John F. Walter, who also ordered him to pay $499,827 in restitution.
On April 15, at the conclusion of a three-day trial, a jury found Sissoko guilty of four counts of wire fraud.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted in March 2020 and is 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 of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized more than $300 billion in additional PPP funding.
Sissoko obtained a $7.25 million loan for his downtown Los Angeles-based company, Road Doctor California LLC, after submitting a PPP loan application in April 2020.
In the loan application, Sissoko claimed that Road Doctor was in the process of hiring 450 full-time employees and would have average monthly payroll expenses of $2.9 million. When he applied for the loan, Sissoko acknowledged the funds would be used to retain workers and maintain payroll, or make mortgage interest payments, lease payments and utility payments.
In the days after the PPP loan was funded on May 1, 2020, Sissoko misappropriated hundreds of thousands of dollars of the loan proceeds to use for impermissible purposes, including purchasing a Mercedes-Benz for $113,000, paying off a loan on a BMW, and buying an Apple computer for more than $5,000.
The illegal uses of the loan also included a non-refundable down payment of approximately $100,000 to purchase a company located in New Hampshire and the attempted transmission of approximately $150,000 to accounts in the African nation of Mauritania associated with a mineral-exploration company for which Sissoko purported to serve as CEO.
On March 24, a federal jury deadlocked on the charges against Sissoko and a mistrial was declared. A second trial resulted in Sissoko’s criminal conviction.
Assistant United States Attorney Carolyn S. Small of the Major Frauds Section and DOJ Trial Attorney Theodore Kneller of the Criminal Division’s Fraud Section are prosecuting this case. Assistant United States Attorney Jonathan S. Galatzan, Chief of the Asset Forfeiture and Recovery Section, is providing substantial assistance, including with the seizure and forfeiture of two luxury automobiles purchased with PPP loan funds.
Anyone with general information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Multiple Defendants Sentenced in Major Organized Crime Operation Spanning Multiple StatesRead the Press Release
GREENSBORO – Three defendants were sentenced this week in federal court for conspiracy to commit drug trafficking offenses after a major, multi-state organized crime operation, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina.
MICHAEL DALE BLACKMON, age 40 of Benson, North Carolina, and JEFFERY SCOTT JONES, age 59, of Wilkesboro, North Carolina, were sentenced to a 114-month term of imprisonment and a 192-month term of imprisonment, respectively, by the Honorable William L. Osteen, Jr., United States District Judge in the United States District Court for the Middle District of North Carolina on November 21, 2022. In addition to prison time, JONES was ordered to serve five years of supervised release and to pay a $4,000 fine, and BLACKMON was ordered to serve three years of supervised release and pay a $3,000 fine. They were charged under indictment along with five co-defendants in case number 1:22CR177 for conspiracy to possess with intent to distribute methamphetamine. TAMMY LYNN WAGONER, age 48, of Wilkesboro, North Carolina, was sentenced today to a 120-month term of imprisonment for the same offense. In addition to prison time, WAGONER was ordered to serve five years of supervised release. BLACKMON, JONES, WAGONER, and their 4 other codefendants were indicted separately from an additional 14 individuals for the same offenses, with the others being indicted in case number 1:22CR25. Those defendants were also charged under federal indictment on February 22, 2022, with conspiracy to distribute methamphetamine, fentanyl, cocaine, and heroin, a violation of Title 21, United States Code, Sections 846 and 841(b)(1)(A), 841(b)(1)(B), and 841(b)(1)(C). Defendants in this case have received sentences of 41 to 300 months’ imprisonment, with additional sentencings scheduled for February, 2023.
According to court records, beginning in 2020, several local and federal law enforcement agencies began an investigation into a multi-jurisdictional drug trafficking organization that was coordinating shipments of methamphetamine, cocaine, fentanyl, and heroin into the Middle District of North Carolina. The poly-drug trafficking organization, based in Mexico, was operating in several jurisdictions within the United States, including North Carolina, South Carolina, Georgia, and California. Members of this organization had previously been convicted in the Middle District of North Carolina for drug trafficking through multiple jurisdictions across various states.
“I am thankful for the work of our law enforcement partners in taking down a drug trafficking organization that has impacted so many communities in North Carolina and our neighboring states,” said U. S. Attorney Sandra J. Hairston. “The impact of illegal drug trafficking reaches all corners of our community, and the pursuit of these organizations remains a top priority in the Department of Justice.”
The investigation was jointly undertaken by the Federal Bureau of Investigation and the Drug Enforcement Administration with assistance from Homeland Security Investigations, the North Carolina State Highway Patrol, and sheriffs’ offices and police departments across North Carolina. The case was prosecuted by Assistant United States Attorney Jake Pryor.
This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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Mother Accused of Using Children to ‘Mule’ Fatal FentanylRead the Press Release
An Albuquerque mother who allegedly concealed a deadly dose of fentanyl inside her children’s luggage has been charged with a federal drug crime, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Magdalena Silva Banuelos, 46, was indicted on distribution of a controlled substance resulting in death.
According to court documents, she allegedly gave her boyfriend the fentanyl that killed him.
At a detention hearing in New Mexico on Nov. 17, prosecutors revealed that Ms. Banuelos and her boyfriend, who was also her sons’ father, were in an on-again, off-again relationship.
On May 31, she allegedly put the boys, ages 8 and 10, onto a flight from Albuquerque to Texas's Dallas Love Field Airport to visit their dad.
Surveillance video shows that the father picked up the boys from the gate, rifled through their luggage, and then entered the airport restroom at around 10:26 p.m. A few minutes later, he overdosed and died in a restroom stall, just steps away from his sons.
From inside the stall, investigators recovered a Clinique brand makeup container containing more than a gram of fentanyl.
They also recovered text messages between the victim and defendant, suggesting that the defendant knew the victim planned on ingesting the fentanyl and was aware of the risk it posed.
“Hey you need to be careful,” she wrote a few hours before he died.
“Yes ma’am. Very slow and easy,” he replied.
“Just one and then wait you’ll see,” she said. “Just one.”
“Ok cool. Thank you. Will do,” he said.“No passing out on the kitchen floor,” she responded. “Seriously you could od. No dying on the kitchen floor… It’s going to f**k you up!!!
At the hearing, the prosecutor argued the defendant allegedly “used her minor children to mule drugs.” Ms. Banuelos was ordered detained pending trial.
“I feel for these children. To lose one parent due to the actions of the other is a calamity for a child,” said U.S. Attorney Chad Meacham. “This defendant allegedly concealed fentanyl – a synthetic opioid 50 times more potent than heroin – in her own minor sons’ luggage. This drug has stolen too many futures and ruined too many lives. The Justice Department remains determined to hold accountable those who spread it.”
“This arrest and detention is yet another example of the devastation that fentanyl continues to reap on families throughout the country. The actions of Ms. Banuelos risked the lives of her minor children by concealing a highly potent drug in their luggage during a flight from Albuquerque to Dallas”, said Acting Special Agent in Charge W. Guy Baker of the DEA Dallas Field Division. “The DEA will continue to work side-by-side with our state and local partners in investigating drug related poisonings and overdose deaths to hold those accountable for their actions.”
An indictment is merely an allegation of criminal conduct, not evidence. The defendant is presumed innocent until proven guilty in a court of law.
If convicted, she faces up a mandatory minimum of 20 years and up to life in federal prison.
The Drug Enforcement Administration’s Dallas Field Division and the Dallas Police Department conducted the investigation. Assistant U.S. Attorney Courtney Coker is prosecuting the case with the assistance of the U.S. Attorney’s Office for the District of New Mexico.
Moldovan National and Technical Mastermind of xDedic Marketplace Extradited from SpainRead the Press Release
Tampa, Florida –United States Attorney Roger B. Handberg along with Special Agent in Charge Brian Payne, IRS-Criminal Investigation, Tampa Field Office, and Special Agent in Charge David Walker, FBI-Tampa Division, announces the arrest and extradition from Spain of Alexandru Habasescu (30, Moldova). Habasescu is charged in a superseding indictment with conspiracy to commit access device fraud and substantive counts of access device fraud, for his role as an administrator of the xDedic Marketplace. If convicted on all counts, Habasescu faces a maximum penalty of 15 years in federal prison. The indictment also notifies the defendant that the United States is seeking an order of forfeiture of the proceeds and facilitating property of the fraud.
Habasescu was taken into custody by Spanish authorities in Tenerife, Canary Islands on March 14, 2022, and extradited to the United States pursuant to the extradition treaty between the United States and Spain.
According to public documents, the xDedic Marketplace, established around October 2014, illegally sold login credentials (usernames and passwords) to compromised servers and social security numbers belonging to U.S. citizens. Habasescu, who resided in Chisnau, Moldova, acted as the lead developer and technical mastermind for the Marketplace.
Under U.S. law, fraudulently obtained passwords and social security numbers are considered unauthorized access devices. Once purchased, criminals used these credentials to facilitate a wide range of illegal activity that included tax fraud, credit card fraud, and ransomware attacks. In total, Marketplace offered over 700,000 compromised credentials for sale—including at least 150,000 in the United States and at least 8,000 in the State of Florida. The victims span the globe and all industries, including local, state, and federal government infrastructure, hospitals, 911 call centers and emergency services, major metropolitan transit authorities, accounting and law firms, pension funds, and universities.
The xDedic Marketplace operated across distributed infrastructure and utilized Bitcoin in order to hide the locations of its underlying servers and the identities of its administrators, buyers, and sellers. Buyers could search for compromised computer credentials on xDedic by desired criteria, such as price, geographic location, and operating system. On January 24, 2019, seizure orders were executed against the domain names of the xDedic Marketplace, effectively ceasing the website’s operation. The international operation to dismantle and seize this infrastructure was the result of close cooperation with law enforcement authorities in Belgium and Ukraine, the European law enforcement agency Europol, the National High Tech Crime Unit from the Dutch National Police and the German Bundeskriminalamt provided assistance in the operation to seize xDedic’s infrastructure.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
The U.S. investigation was led by the IRS-Criminal Investigation and the FBI-Tampa Division, with assistance from the IRS-Criminal Investigation’s Cyber Crimes Unit from the Washington D.C Field Office. Substantial assistance was also provided by the Department of Justice’s Office of International Affairs and Homeland Security Investigations (HSI).
The investigation is being overseen by Assistant United States Attorneys Rachel Jones and Carlton Gammons. Asset forfeiture will be handled by Assistant United States Attorney Suzanne Nebesky.
Mobile Man Sentenced to 97 Months in Fentanyl Distribution ConspiracyRead the Press Release
MOBILE, AL – The Hon. Callie V. S. Granade has sentenced Christopher Porter Seals to 97 months’ imprisonment in a fentanyl distribution conspiracy. The sentence consists of a five-year mandatory minimum for the amount of fentanyl involved and an additional 37 months resulting from Seals’ violation of his supervised release conditions from a prior federal conviction.
According to court documents, Seals possessed over 100 grams of a mixture and substance containing fentanyl which he intended to distribute.
U. S. Attorney Sean P. Costello said, “Fentanyl remains one of the most significant threats to public safety, and I commend the work of our law enforcement partners at DEA and the Mobile County Sheriff’s Office for their dedicated work to keep this drug off the streets. We will continue our partnership and our coordinated efforts to mitigate this deadly threat through aggressive investigation and prosecution.”“The successful prosecution and sentencing of Christopher Seals sends a message to all who engage in the distribution of illegal drugs: we will work together to see that anyone involved in this illicit trade will be brought to justice, face federal charges and a lengthy prison sentence” said Drug Enforcement Administration Assistant Special Agent in Charge Towanda Thorne-James.
The case was investigated by the Drug Enforcement Administration in partnership with the Mobile County Sheriff’s Office. Assistant U.S. Attorney Kasee Heisterhagen prosecuted the case on behalf of the United States.
Missoula meth trafficker sentenced to eight years in prisonRead the Press Release
MISSOULA — A Missoula man who admitted to selling methamphetamine in the community for more than a year was sentenced today to eight years in prison, to be followed by four years of supervised release, U.S. Attorney Jesse Laslovich said.
Devin Neil Farley, 40, pleaded guilty in August to distribution of meth.
U.S. District Judge Dana L. Christensen resided.
In court documents, the government alleged that Farley was involved in distributing meth throughout 2021 and early 2022. Farley sold a total of three ounces in two separate transactions to a confidential informant in April 2021. In November 2021, Farley was stopped in a vehicle and was in possession of a handgun, fentanyl pills and meth. And in March 2022, Farley was found in a hotel room with another handgun, additional fentanyl pills and meth.
Assistant U.S. Attorney Tara J. Elliott prosecuted the case, which was investigated by the FBI’s Montana Regional Violent Crime Task Force, Missoula County Sheriff’s Office, Missoula Police Department, Flathead Tribal Police and Northwest Drug Task Force.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Minnesota Man Sentenced in South Dakota Drug ConspiracyRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that a Minneapolis, Minnesota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on November 21, 2022, by U.S. District Judge Karen E. Schreier.
Philavanh Soukhanouvong, a/k/a “Joe,” 46, was sentenced to 17 years and six months in federal prison, followed by five years of supervised release. He was also ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Soukhanouvong was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury in October of 2021. He pleaded guilty on August 30, 2022.
Beginning at an unknown date and continuing to on or about October of 2021, in the District of South Dakota and elsewhere, Soukhanouvong, a/k/a “Joe,” knowingly and intentionally combined, conspired, confederated, and agreed with others known and unknown, to distribute 500 grams or more of a mixture and substance containing methamphetamine, in the Sioux Falls area. The methamphetamine involved in this conspiracy was being sourced in Mexico and Soukhanouvong was receiving it in multiple-pound quantities.
This case was investigated by Homeland Security Investigations and the Drug Enforcement Administration. Assistant U.S. Attorney Mark Hodges prosecuted the case.
Soukhanouvong was immediately remanded to the custody of the U.S. Marshals Service.
Mexican National Sentenced to More Than 12 Years for Role in Methamphetamine Importation ConspiracyRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced Ubertino Zavala-Perez (59, Plant City, Florida) to more than 12 years in federal prison for conspiracy to distribute methamphetamine. Zavala-Perez pleaded guilty on August 31, 2022.
According to court documents, Ubertino Zavala-Perez conspired with individuals in Mexico and others to distribute and import methamphetamine from Mexico. On March 30, 2022, Zavala-Perez sold half a kilogram of methamphetamine imported from Mexico in a controlled purchase for $3,750. On April 1, 2022, Zavala-Perez agreed to sell one kilogram of methamphetamine in another controlled purchase. A search of his residence, including a storage shed on the property revealed two loaded firearms and additional quantities of methamphetamine. The defendant further admitted to storing his methamphetamine in an off-site storage unit and inside a shed located on his residence. Inside the shed, law enforcement discovered freeze-dried bags containing methamphetamine. After his arrest, Zavala-Perez admitted to receiving methamphetamine from co-conspirators in Mexico and elsewhere in the United States.
This case was investigated by the Drug Enforcement Administration and the Plant City Police Department. It was prosecuted by Assistant United States Attorney David W.A. Chee.
Meriden Man Sentenced to Nearly 8 Years in Federal Prison for Trafficking CocaineRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that KERVIN DIAZ, 39, of Meriden, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 95 months of imprisonment, followed by four years of supervised release, for trafficking cocaine.
According to court documents and statements made in court, an investigation by the Drug Enforcement Administration New Haven Tactical Diversion Squad determined that Harvey Lapan, of East Haven, illegally distributed a variety of prescription and non-prescription drugs, including oxycodone, steroids and cocaine. The investigation also revealed that Diaz coordinated shipments of kilograms of cocaine from Puerto Rico and also received from cocaine from another source in New York, and distributed the cocaine to New Haven-area drug sellers, including Lapan. In March 2020, Lapan purchased 250 grams of cocaine from Diaz, and in May 2020, he purchased 500 grams of cocaine from Diaz.
Diaz and his girlfriend, Alba Nieves, distributed cocaine and marijuana from Diaz’ business, Nino’s Mini Market, located on Washington Avenue in New Haven, and from Nieves’ business, Middletown Café, located on Middletown Avenue in New Haven.
Diaz was arrested on August 24, 2020. On that date, a search of his and Nieves’ Meriden residence revealed narcotics trafficking paraphernalia, including a large scale hydraulic press, an electronic money counter, and 10 digital scales, many of which that contained cocaine residue. Investigators also seized from the residence a loaded high capacity 9mm gun magazine, and $5,130 in cash.
Diaz has been detained since his arrest. On February 28, 2022, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine, and one count of conspiracy to distribute and to possess with intent to distribute cocaine.
Lapan and Nieves pleaded guilty to related charges. Lapan awaits sentencing. On May 19, 2022, Nieves was sentenced to three years of probation.
his investigation is being conducted by the Drug Enforcement Administration New Haven Tactical Diversion Squad and the New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr., Amanda S. Oakes, and Conor M. Reardon.
Mercer County Man Sentenced to 12 Years in Prison for Participating in Armed Robbery Spree Spanning Multiple Counties in New Jersey and PennsylvaniaRead the Press Release
TRENTON, N.J. – A Mercer County, New Jersey, man was sentenced today to 144 months in prison for his role in a string of armed robberies of businesses in New Jersey and Pennsylvania in May and June of 2019, U.S. Attorney Philip R. Sellinger announced.
Omar Feliciano-Estremera, 45, of Trenton, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to a five-count information charging him with one count of conspiracy to commit Hobbs Act robbery, three substantive counts of Hobbs Act robbery, and one count of aiding and abetting the possession of a firearm which was discharged during a crime of violence. Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Feliciano and his conspirator, who is now deceased, committed a string of armed robberies in May and June of 2019 of businesses located in Mercer County, New Jersey, Union County, New Jersey, and Bucks County, Pennsylvania. The conspirator entered the businesses, brandished a handgun, and demanded money from the store clerks working the register. After stealing the money, the conspirator fled the scene with the assistance of Feliciano, who acted as the getaway driver. While fleeing the scene of one of the robberies, in Union County, New Jersey, the conspirator fired a handgun at passing witnesses, shortly before being picked up by Feliciano. Feliciano admitted to conspiring to commit eight robberies and aiding and abetting three robberies, including the Union County robbery at which a firearm was discharged.
In addition to the prison term, Judge Sheridan sentenced Feliciano to five years of supervised release.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s sentencing. He also thanked officers of the Hamilton Township, Trenton, Rahway, Morrisville, Bristol Township, and Lawrence Township Police Departments for their assistance.
The government is represented by Assistant U.S. Attorney Alexander E. Ramey of the U.S. Attorney’s Office Criminal Division in Trenton.
McKees Rocks Felon Sentenced to Prison for Gun OffenseRead the Press Release
PITTSBURGH, PA -- A former resident of McKees Rocks, Pennsylvania, has been sentenced in federal court to 57 months of imprisonment and three years of supervised release on his conviction of violating a federal firearm law, United States Attorney Cindy K. Chung announced today.
United States District Judge Marilyn J. Horan imposed the sentence on D’Avery Williams, age 25.
On October 18, 2021, law enforcement encountered Williams, who was known to have an active arrest warrant. When officers approached Williams, he fled. After detaining him, officers located a bag that Williams possessed while in flight. Within the bag, officers recovered a loaded handgun and suspected controlled substances. At the time of the offense, Williams had already been convicted of two felony firearm offenses and a drug offense. Under federal law, felons are prohibited from the possession of firearms and ammunition.
Assistant United States Attorney Brendan J. McKenna prosecuted this case on behalf of the government.
United States Attorney Chung commended the McKees Rocks Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives for the investigation leading to the successful prosecution of Williams.
Mason City Man Found Guilty of Possession of Child PornographyRead the Press Release
A Mason City, Iowa man who possessed large amounts of child pornography was convicted by a jury on November 17, 2022, after a 4-day trial in federal court in Sioux City.
Brandon Manning, age 41, from Mason City, Iowa, was convicted of two counts of possession of child pornography. The verdict was returned following more than four hours of jury deliberations.
The evidence at trial showed that Manning possessed thousands of images and videos of child pornography, including pornography of children under the age of 12 years old, on an SD card in a cellphone he attempted to destroy when being served with a search warrant on March 12, 2022, and on an internal hard drive for a laptop that was found in his home, hidden in his bedroom.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Manning remains in custody of the United States Marshal pending sentencing. Manning faces, for each count, a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, and 5 years up to life of supervised release following any imprisonment.
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.”
The case is being prosecuted by Assistant United States Attorney Ron Timmons and was investigated by the Mason City Police Department and the State of Iowa Division of Criminal Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-3002.
Follow us on Twitter @USAO_NDIA.
Luzerne County Man Sentenced to 60 Months in Prison for Drug Trafficking OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Al-Salaam I. Hale, age 46, of Hanover Township, Pennsylvania, was sentenced to 60 months in prison by U.S. District Court Judge Malachy E. Mannion, for distributing heroin.
According to United States Attorney Gerard M. Karam, Hale was intercepted during a DEA wire investigation communicating with coconspirators regarding heroin trafficking in the Wilkes-Barre, Pennsylvania area. Hale also sold heroin to a confidential informant who was working with agents as part of the investigation. The investigation determined that Hale was responsible for distributing between 100 and 400 grams of heroin.
The DEA investigated the case. Assistant U.S. Attorney Todd K. Hinkley was the prosecutor.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun
violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Long Island MS-13 Gang Member Sentenced to More Than 27 Years in Prison for Murder of Brentwood Teen and Subsequent ShootingRead the Press Release
Earlier today, in federal court in Central Islip, Nelson Argueta-Quintanilla, also known as “Mendigo”, a member of the violent transnational criminal organization La Mara Salvatrucha, also known as the “MS-13,” was sentenced by United States District Judge Gary R. Brown to 327 months in prison for his role in the murder of Oscar Acosta, whose body was found on the grounds of an abandoned psychiatric hospital in Brentwood, and a subsequent attempt to shoot and kill rival gang members on Lukens Avenue in Brentwood. The defendant, a self-admitted member of the Sailors Locos Salvatruchas Westside (Sailors) clique, pleaded guilty in September 2021 to racketeering and admitted to his involvement in the Acosta murder and Lukens Avenue shooting, as well as narcotics trafficking on behalf of the MS-13.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Rodney K. Harrison, Commissioner, Suffolk County Police Department (SCPD), announced the sentence.
“Demonstrating the defendant’s complete disregard for human life, today’s sentence is a fitting punishment for a brutal murder followed by another reckless shooting,” stated U.S. Attorney Peace. “This Office and our law enforcement partners remain committed to holding violent actors, including gang members, accountable for the fear, destruction, and death they bring to our communities.”
Argueta-Quintanilla and other MS-13 members targeted Acosta for death because he previously had associated with the MS-13, but later began associating with the rival 18th Street gang. On April 29, 2016, a group of MS-13 members, including the defendant, gathered in a wooded area near an elementary school in Brentwood where they learned a fellow MS-13 member was meeting Acosta to smoke marijuana. When Acosta arrived in the woods, the defendant and the other gang members repeatedly struck Acosta with a large tree branch, knocking him unconscious. They then called the leader of the Sailors clique who arrived at their location with additional members of the gang. The MS-13 members decided to move Acosta to a more isolated area. They tied his hands and feet together and carried Acosta into the trunk of a car. Two cars of gang members, one with Acosta’s body in the trunk, ultimately drove to a secluded wooded area in Brentwood behind several warehouses and adjacent to the grounds of an abandoned psychiatric hospital. Once they arrived, the MS-13 members carried Acosta, still alive, into the woods. Once in the woods, the defendant and three other MS-13 members took turns striking Acosta with a machete. The MS-13 members then put Acosta in a shallow grave, covered him with dirt, and fled the area. On September 16, 2016, while searching for the victim of a different MS-13 murder, law enforcement found Acosta’s body, which was in a shallow grave, and his hands and feet were still bound.
Separately, on the evening of August 10, 2016, the defendant agreed with other Sailors clique members to drive around Brentwood hunting for rival gang members to kill. After observing a number of men standing outside of a house on Lukens Avenue, who they believed were members of the rival gang Goon Squad, the defendant and another MS-13 member, armed with .45 and .40 caliber handguns, respectively, got out of their car, approached the house and opened fire at the group. The defendant fired multiple shots with the .45 caliber handgun. One of the .40 caliber bullets fired by the other MS-13 member traveled through the bedroom wall of an adjacent house and struck the headboard of an elderly woman’s bed. Fortunately, no one was injured in the shooting.
On May 2, 2018, the defendant was arrested on a federal warrant in connection with this case. At the time, he was in immigration custody and had been since June 27, 2017.
Today’s sentencing is the latest accomplishment in a series of federal prosecutions by the USAO-EDNY targeting members and associates of the MS-13, a violent, transnational criminal organization. The MS-13’s leadership is based in El Salvador, Honduras, Guatemala and Mexico, but the gang has thousands of members across the United States. With numerous branches, or “cliques,” the MS-13 is the most violent criminal organization on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders, and assaults. Since 2010, this Office has obtained indictments charging MS-13 members and associates with carrying out more than 60 murders in the district, and has convicted dozens of MS-13 leaders, members, and associates in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, which is comprised of agents and officers of the FBI, SCPD, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation Office, Suffolk County Sheriff’s Office, New York State Police, Hempstead Police Department, Rockville Centre Police Department, and New York State Department of Corrections and Community Supervision.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys John J. Durham, Paul G. Scotti, Justina L. Geraci, and Megan E. Farrell are in charge of the prosecution.
The Defendant:
NELSON ARGUETA-QUINTANILLA (also known as “Mendigo”)
Age: 25
Residence: formerly of Central Islip and Brentwood, New YorkE.D.N.Y. Docket No.: 16-CR-403 (S-7) (GRB)
Lincoln Man Sentenced to 15 Years in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Steven Russell announced that Esequiel Guerrero, 36, of Lincoln, Nebraska, was sentenced today in federal court in Lincoln. United States District Judge John M. Gerrard sentenced Guerrero to 180 months in prison for conspiracy to distribute 500 grams of methamphetamine mixture, a mixture or substance containing cocaine and a mixture or substance containing marijuana. After serving his sentence, Guerrero will be placed on supervised release for five years. There is no parole in the federal system.
Information provided to law enforcement indicated that Guerrero was involved in the distribution of at least five kilograms, (11 pounds), of methamphetamine mixture in the Lincoln area between August of 2020 and February of 2021. Guerrero served as a Spanish-language translator during negotiations for the sale of methamphetamine from sources in Texas and Mexico to distributors in the Lincoln area. Law enforcement further determined that at least two ounces of methamphetamine seized from a vehicle during a traffic stop in February of 2021 was intended to be provided to Guerrero and one of his partners.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force.
Leader of Drug Conspiracy Sentenced to 20 Plus Years in Federal Prison and Fined $100,000Read the Press Release
Bowling Green, KY – A Bowling Green man was sentenced yesterday to 20 years and 10 months in prison and fined $100,000, for conspiring with multiple people to possess with the intent to distribute 500 grams or more of a methamphetamine mixture.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office, Director Tommy Loving of the Bowling Green/Warren County Drug Task Force, and Commissioner Phillip Burnett, Jr. of the Kentucky State Police made the announcement.
According to court documents, Tyrecus J. Crowe, 30, conspired and agreed with Andre Graham, Raymond Derouse, Brandon Cherry, Nathan Jackson, and others, to possess with the intent to distribute 500 grams or more of a methamphetamine mixture. Crowe was one of the leaders of this conspiracy and was responsible for ordering and arranging the transportation of approximately 34.32 kilograms of methamphetamine. Approximately 17 kilograms of methamphetamine was seized in Texas on July 2, 2020, and approximately 17 kilograms of methamphetamine was seized in Simpson County, KY, on August 30, 2020. Both of these methamphetamine shipments were headed to Bowling Green, KY.
Crowe also made a considerable amount of money from the conspiracy and purchased a trucking business, a tow truck business, and a home with a cash down payment of approximately $130,000. Crowe made numerous jail phone calls which were recorded. In one of these phone calls, Crowe admitted to making and spending over $1,000,000 in Las Vegas and that he never knew “cleaning money” would be so hard.
Crowe is the last defendant of the conspiracy to be sentenced. The other defendants in the case who were previously sentenced, received the following sentences:
Andre Graham – 12 years in prison;
George Sanchez – 17 years in prison;
Jeremy Quezada – 10 years in prison;
Raymond Derouse Jr. – 12 months and 1 day in prison;
Nathan Jackson – 7.25 years in prison;
Brandon Cherry – 8 years in prison; and
Michael Padilla – 7 years in prison.
“The investigation of this case and the sentences imposed on the defendants reflect the unwavering commitment of our prosecutors and law enforcement partners who work tirelessly to prevent illicit narcotics from entering our communities and harming our citizens,” said U.S. Attorney Bennett. “I am thankful for the outstanding work of the FBI’s Bowling Green Resident Agency, the Bowling Green/Warren County Drug Task Force, and the Kentucky State Police.”
“Drug trafficking is a multibillion-dollar criminal enterprise that targets our friends, our neighbors and even our family members,” said Special Agent in Charge Cohen. “The sentences handed down to Crowe and his co-conspirators illustrate the danger these networks are to our community. FBI Louisville will continue to diligently work alongside our partners to investigate and dismantle these criminal organizations.”
“Complex investigations and prosecutions like this help make our community a safer place to live,” said Director Loving. “The Bowling Green/Warren County Drug Task consists of state, local and federal partners working together as a team which is the key to successful investigations. Working with our local U.S. Attorney’s Bowling Green Branch Office brings these major drug traffickers to justice.”
The FBI Louisville Field Office’s Bowling Green Resident Agency, the Bowling Green/Warren County Drug Task Force, and the Kentucky State Police DESI/West investigated the case.
Assistant U.S. Attorneys Mark J. Yurchisin II and Corinne Keel prosecuted the case.
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Key West Labor Staffing Conspirator Pleads Guilty to Immigration FraudRead the Press Release
A former Key West resident pleaded guilty today to an immigration conspiracy related to the operation of several Key West labor staffing companies.
According to court documents and statements made in court, from January 2016 through at least January 2021, Oleksandr Morgunov, formerly of Key West, helped operate Paradise Choice LLC, Paradise Choice Cleaning LLC, Tropical City Services LLC and Tropical City Group LLC, all of which were labor staffing companies in southern Florida. The staffing companies facilitated the employment of individuals in hotels, bars and restaurants in Key West and other locations, even though the employees were not authorized to work in the United States.
Morgunov acknowledged that he and his co-conspirators defrauded the IRS out of more than $7.9 million in employment taxes.
Morgunov is scheduled to be sentenced on January 31, 2023. He faces a maximum penalty of ten years in prison for conspiring to harbor aliens and induce them to remain in the United States. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida made the announcement.
The U.S. Department of Homeland Security’s Homeland Security Investigations and IRS-Criminal Investigation are investigating the case.
Senior Litigation Counsel Sean Beaty and Trial Attorneys Jessica A. Kraft and Nicholas J. Schilling, Jr., of the Tax Division and Assistant U.S. Attorney Chris Clark of the Southern District of Florida are prosecuting the case.
Kalamazoo Man Arrested and Charged with Federal Drug and Gun CrimesRead the Press Release
GRAND RAPIDS – The U.S. Attorney’s Office for the Western District of Michigan filed a criminal complaint to arrest and charge Tyrone Henderson, 50, of Kalamazoo, Michigan for possession with intent to distribute fentanyl, heroin, and methamphetamine; felon in possession of firearms; and possession of firearms in furtherance of drug trafficking. After a preliminary hearing and detention hearing on Friday, before Magistrate Judge Sally J. Berens, Henderson was bound over and detained pending the return of an indictment by the Grand Jury. Henderson made his initial appearance in U.S. District Court on November 15, 2022.
“Given the extreme danger posed by fentanyl, we are in a fight to save lives,” said U.S. Attorney Mark Totten. “According to the Kalamazoo Valley Enforcement Team, this is the largest seizure of fentanyl in the Kalamazoo area. My office, in coordination with our local and federal partners, is committed to disrupting the distribution of fentanyl, illegal drugs, and guns into our communities.”
According to court documents, the Kalamazoo Valley Enforcement Team (KVET), a multi-jurisdictional narcotics task force, has been investigating Henderson for his involvement with fentanyl and methamphetamine distribution in Kalamazoo. KVET obtained a warrant to search Henderson’s residence. A search of the residence yielded 2.3 kilograms of pure fentanyl, 1.3 kilograms of a heroin and fentanyl mixture, 516 grams of heroin, and 489 grams of methamphetamine. Much of the methamphetamine seized from Henderson’s residence was in pill form, disguised to look like the party drug ecstasy. Henderson’s residence also contained four assault rifles; multiple magazines; ammunition; a loaded, stolen handgun; digital scales; presses; and, other implements used for processing narcotics. Henderson has multiple prior felony convictions and is prohibited from possessing firearms. For more information, please see the continuation in support of the criminal complaint available on the public docket. United States v. Henderson, No. 1:22-MJ-472 (SJB), ECF No. 1-1 (W.D. Mich.)
“The Kalamazoo Valley Enforcement Team is committed to reducing gun violence often fueled by the illegal distribution of controlled substances most notably Fentanyl,” said KVET Captain Rafael Diaz. “This case represents many hours of investigation and collaboration with our federal partner, the DEA. And we look forward to continuing that relationship to support the greater Kalamazoo area in reducing the damaging effects of lost lives due to gun violence and overdoses.”
U.S. Attorney Mark Totten of the Western District of Michigan, Special Agent in Charge Orville O. Greene of the U.S. Drug Enforcement Administration’s Detroit Field Division, and Kalamazoo Department of Public Safety Acting Chief David Boysen made the announcement.
The U.S. Drug Enforcement Administration and Kalamazoo Valley Enforcement Team are investigating the case. A photograph of some of the items seized from Henderson’s residence is below.
Under the United States Constitution, the government must present felony cases to a grand jury and obtain indictments to proceed with prosecution. The charges in the complaint are merely accusations and are not evidence of guilt. The defendant is presumed innocent unless and until proven guilty in a court of law. The government has the burden of proving guilt beyond a reasonable doubt.
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