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5 January 2023
Rocheport Woman Indicted for $1.5 Million Fraud SchemeRead the Press Release
JEFFERSON CITY, Mo. – A Rocheport, Mo., woman has been indicted by a federal grand jury for using her payroll services business in a $1.5 million fraud and embezzlement scheme.
Kathryn L. Cunningham, also known as “Kat,” 62, was charged in a 38-count indictment returned under seal by a federal grand jury in Jefferson City, Mo., on Dec. 13, 2022. That indictment was unsealed and made public today following Cunningham’s arrest. Her initial court appearance and arraignment will be held this afternoon.
Cunningham is the former owner and CEO of Moresource, Inc., in Columbia, Mo., which provided payroll services for approximately 141 clients when it closed in June 2020. Moresource contracted with each of these clients to accurately calculate the client’s payroll and the state and federal payroll and income taxes for the client’s employees, to obtain funds from the client to cover that payroll, to disburse payroll funds to the client’s employees, to remit payroll and income tax payments to state departments of revenue and the IRS, and to generate and submit all required state and federal payroll tax forms.
Cunningham allegedly embezzled money from the payroll account held in trust for Moresource’s clients. She took her clients’ money for her personal benefit, the indictment says, as well as to fund her company’s operations. Cunningham allegedly embezzled approximately $1,545,427 of payroll deposits from 24 Moresource clients.
As part of her fraud scheme, the indictment says, Cunningham also used money from Moresource’s operating account for her personal use. Cunningham borrowed money on multiple occasions from at least two non-bank lenders to cover shortfalls in the client funds in the Moresource payroll account. She also paid the principal and interest on several of those loans from the client funds in Moresource payroll account.
According to the indictment, Cunningham fraudulently obtained a guaranteed loan and a line of credit from the Small Business Administration by concealing a financial liability. On multiple occasions, Cunningham caused SBA guaranteed funds to be disbursed into Moresource’s operating account and then transferred into Moresource’s payroll account to replace client funds she had embezzled rather than use the SBA funds for working capital.
According to the indictment, Cunningham embezzled federal funds from Abilities for Business, Inc. (subsequently known as Mid-Missouri Business Leadership Network, Inc.), an organization of which she was president. Cunningham deposited funds embezzled from this organization into Moresource’s payroll account to replace client funds she had also embezzled. Cunningham also deposited funds embezzled from Abilities for Business into her personal bank accounts.
Cunningham attempted to conceal her embezzlement of client funds by causing Moresource to stop making timely and accurate IRS filings, the indictment says, and to stop making regular payments to the IRS for the employment taxes owed by her clients. Cunningham caused documents to be transmitted to her clients that falsely stated all payroll tax obligations had been satisfied. Cunningham falsely told her clients that the IRS sent them tax deficiency notices because the IRS was behind in processing tax payments, because the IRS misapplied the tax payments, and because of issues with Moresource’s payroll software.
The federal indictment charges Cunningham with 24 counts of bank fraud, four counts of stealing from an organization that receives federal funds, and 10 counts of wire fraud.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the FBI and IRS-Criminal Investigation.
Restaurant manager sentenced to prison for embezzling $300,000 from employerRead the Press Release
ATLANTA - Scott Spilberg has been sentenced to prison for embezzling over $300,000 from his employer by using his company charge card for personal visits to adult entertainment clubs.
“Spilberg was trusted by his employer and betrayed that trust by shelling out more than $300,000 of company funds at adult entertainment clubs,” said U.S. Attorney Ryan K. Buchanan.
“This greedy defendant abused his position to fund his own lifestyle. Because of his actions, the restaurant, and people he was chosen to lead suffered the impacts,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “People who brazenly steal from their employers should expect to be held accountable.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Spilberg was hired as the manager at Houck's Grille in August 2020. Beginning in October 2020, at the height of the COVID-19 pandemic, Spilberg began using his company issued debit card to pay for his visits to two adult entertainment clubs. Ultimately, he visited the clubs more than 50 times during an 11-month period, charging over $300,000 to the company debit card. The loss of this money caused a significant hardship to the restaurant and threatened the livelihood of its 40 employees and forced it to borrow COVID-relief funds to stay in business.
Scott Spilberg, 56, of Canton, Georgia, was sentenced to two years, six months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $300,533.78. Spilberg was convicted on September 19, 2022, after he pleaded guilty to the offense of wire fraud.
This case was investigated by the Federal Bureau of Investigation with the assistant of the Roswell Police Department.
Assistant U.S. Attorney Christopher J. Huber prosecuted the case.
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.
Repeat Gastonia Drug Trafficker Is Found Guilty of Drug DistributionRead the Press Release
CHARLOTTE, N.C. – A federal jury in Charlotte delivered a guilty verdict against Kenter O’Neal Ruff, 43, of Gastonia, N.C., for drug distribution, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn Jr. presided over the three-day trial which ended today.
Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Interim Chief Trent Conrad of the Gastonia Police Department join U.S. Attorney King in making today’s announcement.
According to filed court documents, evidence introduced at trial and witness testimony, over the course of an investigation into drug trafficking in Gaston County, law enforcement identified Ruff as a local drug distributor. According to trial evidence, on multiple occasions between October 2020 and April 2021, Ruff sold cocaine base to an individual cooperating with law enforcement. At the time, Ruff was on supervised release stemming from a prior federal drug conviction and had additional state convictions related to drug trafficking and drug possession.
The federal jury convicted Ruff of four counts of distribution of cocaine base. Ruff remains in federal custody. A sentencing date has not been set.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
U.S. Attorney King thanked the FBI and the Gastonia Police Department for their investigation of the case.
Assistant United States Attorneys Thomas Kent and Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte and Special Assistant United States Attorney (SAUSA) William Wiseman are prosecuting the case. Mr. Wiseman is a state prosecutor with the office of the 26th Prosecutorial District and was assigned by District Attorney Spencer Merriweather to serve as a SAUSA with the U.S. Attorney’s Office in Charlotte. Mr. Wiseman is sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the office of the 26th Prosecutorial District and the United States Attorney’s Office.
Readout of Congressional Visit to the FBI’s Criminal Justice Information Services DivisionRead the Press Release
Today, Deputy Attorney General Lisa O. Monaco, Director Christopher A. Wray, and Senators John Cornyn (TX), Joe Manchin (WV), Christopher Murphy (CT), Shelley Capito (WV) and Thom Tillis (NC) visited the Criminal Justice Information Services Division (CJIS) of the Federal Bureau of Investigation (FBI) in Clarksburg, West Virginia.
While in Clarksburg, they received a series of briefings and demonstrations on how the recent changes made to the National Instant Criminal Background Check System (NICS), following the passage of the NICS Denial Notification Act and the Bipartisan Safer Communities Act (BSCA), are protecting Americans across the country. NICS is the FBI's national system that, as required by law, conducts a background check on people in over 40 states and territories who want to purchase or possess a firearm or explosive. NICS assists 13 additional states that conduct their own checks, which often rely on data held by CJIS.
Implemented this past September, the NICS Denial Notification Act now requires NICS to alert state and local law enforcement to background check denials, so that these authorities can decide whether to investigate or prosecute these denied individuals.
Building on that, BSCA further expanded and strengthened NICS background checks, including by enhancing checks for young adults, aged 18 to 21, to now require contacting state agencies and local law enforcement for disqualifying juvenal criminal history and mental health records. The legislation also closed the so-called “boyfriend loophole” by expanding the “misdemeanor crimes of domestic violence” prohibitor. Now, persons convicted on or after June 25, 2022, of a qualifying offense against a person with whom they are or were in a “dating relationship” will be denied their purchase of a firearm as a result of their background check.
Separately, CJIS Assistant Director Michael A. Christman and his executive staff provided the group with an overview of the National Threat Operations Center, which serves as the primary communication channel for the public to provide information pertaining to federal violations and threats to national security and operates out of CJIS.
Raleigh Man Sentenced to 14 Years in Prison After a Domestic Dispute Ended in Shots Fired at his GirlfriendRead the Press Release
RALEIGH, N.C. – Steven Antonio Peterson, 32, of Raleigh, was sentenced yesterday to 168 months in prison for two counts of being a felon in possession of a firearm. Peterson pled guilty to the charges.
According to court documents and other information presented in court, Peterson possessed a firearm on August 29, 2021 when he got into an argument with his girlfriend after he broke into her house through the window, hit her in the face with a pistol, and then fired a round at her as she tried to walk away. The round nearly hit her. Peterson then threatened the victim. On September 1, 2021, Raleigh Police arrested Peterson who was carrying a 9-millimeter handgun at the time of arrest. Ballistics determined that the same firearm was used in the shooting on August 29th. Peterson had previously been convicted of a felony and is not legally permitted to possess a firearm or ammunition.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Raleigh Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case and Assistant U.S. Attorney Philip Aubart prosecuted the case.
The conviction is a result of the ongoing Violent Crime Action Plan (VCAP) initiative which is collaborative effort with local, state, and federal law enforcement agencies, working with the community, to identify and address the most significant drivers of violent crime. VCAP involves focused and strategic enforcement, and interagency coordination and intelligence-led policing.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:22-CR-00145-BO-001.
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Providence Man Sentenced to Federal Prison for Participating in Fraud Schemes Before and After His Initial Arrest for Bank FraudRead the Press Release
PROVIDENCE – A Providence man who admitted to participating in check cashing fraud schemes, and who continued to do so while on federal pre-trial release after his arrest on related charges, was sentenced today to three years in federal prison, announced United States Attorney Zachary A. Cunha.
Rachon Waite, 32, previously admitted to a federal judge that, from December 2020 to June 2021, and then again, after his August 2, 2021, arrest, from October 2021 through April 2022, he recruited individuals on social media to use their personal identifying information and bank accounts to cash fraudulently-created checks. Members of the conspiracy working with Waite stole checks of multiple Rhode Island and Massachusetts business from the U.S. Mail stream and then used the information from those checks to create fraudulent checks using the names and personal identifying information of individuals recruited by Waite. Waite, his co-conspirators, and, in some instances, the individuals Waite recruited deposited these fraudulent checks in their bank accounts and quickly withdrew the funds, or attempted to, before banks determined that the deposited checks were fraudulent. In other instances, individuals recruited by Waite cashed the fraudulent checks.
Waite was first arrested on a federal complaint in August 2021 for participating in the fraudulent check cashing scheme. He was released on bail and placed on pretrial supervision by the Court. Despite this, in October 2021, Waite recommenced his role in the check cashing fraud scheme. On May 24, 2022, Waite was charged for his role in the fraudulent check cashing activity that followed his release on bail on the first complaint.
According to information presented to the court, criminal conduct attributed to the defendant caused a loss to banks and businesses totaling more than $169,000.
Waite pleaded guilty on August 22, 2022, to conspiracy to commit bank fraud, aggravated identity theft, and commission of an offense while on release. He was sentenced today by U.S. District Court Judge William E. Smith to thirty-six months in federal prison to be followed by three years of federal supervised release. Restitution will be determined at a later date.
The case was prosecuted by Assistant United States Attorney Denise M. Barton.
The matter was investigated by the FBI and the Bristol and Narragansett, RI, and Wrentham, MA, police departments.
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Port Arthur Man Guilty of Glock Auto-Switch ViolationRead the Press Release
BEAUMONT, Texas - A Port Arthur man has pleaded guilty to federal firearms violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Javier Jesus Morales, 26, pleaded guilty to possession of an unregistered firearm today before U.S. District Judge Marcia A. Crone.
According to information presented in court, on Oct. 27, 2020, Morales sold a Glock .9mm pistol to a federal agent acting in an undercover capacity after the agent responded to a posting on the social media forum “Snapchat” advertising for the sale. The Glock pistol was outfitted with an attached aftermarket “auto-switch.” The auto-switch is a device used to convert a standard, legal handgun into a fully automatic machine gun, which if not registered in the National Firearms Registration and Transfer Record is illegal to possess. The firearm was not registered to Morales.
Morales was indicted by a federal grand jury on Feb. 2, 2022. He faces up to 10 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is being investigated by the Beaumont Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case is being prosecuted by Assistant U.S. Attorney Joseph R. Batte.
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Pennsylvania Man Sentenced to 5 Years in Federal Prison for Role in Connecticut Drug RingRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that MYRON BROWN, also known as “Farid,” 49, of Chester, Pennsylvania, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 60 months of imprisonment, followed by four years of supervised release, for trafficking cocaine.
This matter stems from an investigation led by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force into a drug trafficking organization headed by Tajh Wiley of Norwalk. The investigation, which included a court-authorized wiretap of Wiley’s phone, revealed that Wiley conspired to distribute large quantities of fentanyl, cocaine and marijuana and distributed drugs throughout Connecticut and elsewhere with the assistance of several associates. In April 2021, Brown transported approximately 900 grams of cocaine to an associate of Wiley’s in Manhattan.
Wiley and seven co-conspirators were arrested on June 9, 2021. In association with their arrests, investigators executed multiple search warrants and seized approximately a kilogram of fentanyl, a kilogram of cocaine, approximately 83 grams of crack cocaine, more than 12 pounds of marijuana, two press machines and other items and materials used by Wiley and his co-conspirators to process and package illegal drugs. Investigators also seized from Wiley jewelry valued at more than $100,000, and a 2021 Mercedes-Benz valued at approximately $146,000.
On May 2, 2022, Brown pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine.
Brown was incarcerated in Pennsylvania on state drug and firearm charges when he was indicted in this case. Brown’s state case was later adopted by the U.S. Attorney’s Office for the Eastern District of Pennsylvania, and is pending.
On July 25, 2022, a jury found Wiley guilty of drug trafficking offenses. On December 28, 2022, Judge Arterton sentenced him to 12 years of imprisonment.
This investigation was conducted by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force, Federal Bureau of Investigation, Bridgeport Police Department, Fairfield Police Department, Norwalk Police Department, Stamford Police Department, Stratford Police Department, Yonkers (New York) Police Department and the U.S. Marshals Service. The HIDTA Task Force includes personnel from the DEA Bridgeport Resident Office, the Connecticut State Police, and the Bridgeport, Norwalk, Stamford, Stratford, Milford and Danbury Police Departments.
This case is being prosecuted by Assistant U.S. Attorneys Patrick J. Doherty, Robert S. Dearington, Margaret M. Donovan and Elena L. Coronado through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Orange County Convicted Felon Guilty of Federal Firearms ViolationRead the Press Release
BEAUMONT, Texas – A Vidor man has pleaded guilty to a federal firearms violation in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Job Allen Smith, 49, pleaded guilty to possession of a firearm by a prohibited person today before U.S. District Judge Marcia A. Crone.
According to court documents, on Nov. 18, 2021, law enforcement officers conducted a search warrant at a residence in Vidor where they believed Smith would be in possession of narcotics. During the search, officers discovered two firearms in the master bedroom closet. Smith, a convicted felon, is prohibited by federal law from owning or possessing firearms or ammunition.
Smith was indicted by a federal grand jury on Sep 7, 2022. He faces up to 10 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is being investigated by the Orange County Sheriff’s Office, Orange County SWAT, FBI and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Russell James.
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Omaha Man Sentenced to 10 Years for Child Pornography Receipt and DistributionRead the Press Release
United States Attorney Steven Russell announced that Jame Rodriguez-Ramirez, 21, of Omaha, Nebraska, was sentenced today in federal court in Omaha for receipt and distribution of child pornography. United States District Judge Brian C. Buescher sentenced Rodriguez-Ramirez to 120 months’ imprisonment. There is no parole in the federal system. After his release from prison, Rodriguez-Ramirez will begin a five-year term of supervised and will be required to register as a sex offender.
Rodriguez-Ramirez has been the subject of multiple investigations resulting from NCMEC cybertips for child pornography materials. The cybertips were generated by DropBox, a file sharing service, in 2017; Instagram in 2019; and Omegle in 2021. Each cybertip resulted in a separate search of his Omaha residence and seizure of his electronic devices by investigators.
In 2017, during an investigation by Homeland Security Investigations (HSI), Rodriguez-Ramirez admitted to viewing images and videos of child pornography on his cell phone and to using Omegle to obtain links to the child pornography, stating he had shared links with others to obtain additional links. During the September of 2019 search by the Federal Bureau of Investigation, Rodriguez-Ramirez’s devices were seized and forensically examined. The examination yielded 8 images containing nude or semi-nude prepubescent and pubescent minor females ranging in the approximate ages of 10-15 years old and 12 videos depicting prepubescent females, ranging from infant/toddler age to 8 years old, as well as pubescent teenage girls, approximately 12-14 years old, engaged in sexually explicit conduct and lascivious viewing of their vagina and anus.
The Nebraska State Patrol began its investigation based on a July 2021 cybertip received from Omegle, after which it learned of the earlier HSI and FBI investigations. On October 26, 2021, while forensics were still pending in the FBI case, NSP investigators searched Rodriguez-Ramirez’s residence again. Rodriguez-Ramirez admitted to viewing images and videos using Omegle on his cell phone. Investigators also seized more devices (and iPhone and an Apple MacBook) for examination. Forensic review revealed additional evidence of possession and distribution of child pornography on Rodriguez-Ramirez’s cell phone which occurred after the home was searched in 2019. Investigators confirmed that videos and two images from his cell phone depicted sexual conduct involving children younger than 16 years old.
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 United States Attorney’s 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.
This case was investigated by the Omaha FBI's Child Exploitation and Human Trafficking Task Force, Nebraska State Patrol and Homeland Security Investigations.
Omaha Man Sentenced for Distributing Child PornographyRead the Press Release
United States Attorney Steven Russell announced that Gregory Lukassen, 50, of Omaha, Nebraska, was sentenced today in federal court in Omaha for distribution and receipt of child pornography. The Honorable Brian C. Buescher sentenced Lukassen to 240 months’ imprisonment. There is no parole in the federal prison system. After his release from prison, Lukassen will serve 5 years of supervised release. Lukassen was also ordered to pay $12,000 in restitution.
In October, Lukassen was found guilty after a two-day jury trial. The evidence at trial showed that officers contacted Lukassen at a residence in Bellevue, Nebraska, after receiving Cybertip Reports from the National Center for Missing and Exploited Children (NCMEC) indicating that online service providers had reported uploads of child pornography. Lukassen admitted to chatting online regarding sexual fantasies and claimed to have received child pornography unintentionally during those chats. Forensic examinations of devices seized from Lukassen showed cache and/or thumbnail files of at least 38 unique images of child pornography on the devices, including some of the images reported in the Cybertips.
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 United States Attorney’s 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.
This case was investigated by the Bellevue Police Department and Homeland Security Investigations..
Omaha Business Owner Sentenced for Failing to Pay over Payroll TaxesRead the Press Release
United States Attorney Steven Russell announced that Bryan A. Erdman, 52, of Omaha, Nebraska, was sentenced today in federal court in Omaha for failing to pay over payroll taxes. United States District Judge Brian C. Buescher sentenced Erdman to 12 months and 1 day of imprisonment. There is no parole in the federal system. After his release from prison, Erdman will begin a 3-year term of supervised release. Judge Buescher ordered Erdman to pay $462,644.93 in restitution.
An investigation conducted by the Internal Revenue Service Criminal Investigation Division determined that BSJ CO, Inc. (“BSJ CO”) was a Nebraska corporation doing business as It’s a Wonderful World Childcare within the District of Nebraska. Erdman was the president and owner of BSJ CO, and exercised control over the business affairs, including authorizing business expenses, authorizing payment of employee paychecks, signing of employee paychecks, approval of payments made by the corporation, and approval of payment of payroll taxes to the Internal Revenue Service. BSJ CO was required to withhold taxes from its employees’ paychecks, including federal income taxes, and Medicare and Social Security taxes. BSJ CO was also obligated to pay an employer’s share of these “payroll taxes.” Erdman had the responsibility to collect, truthfully account for, and pay over BSJ CO “payroll taxes” to the Internal Revenue Service.
Throughout calendar years 2015 to 2017, BSJ CO withheld tax payments from its employees’ paychecks; however, failed to account for and pay over approximately $295,463.91 of the employee share of “payroll taxes.” For tax years 2015 to 2017 Erdman also failed to pay over approximately $167,181.02 of the employer share of “payroll taxes.” During the time period that Erdman failed to account for and failed to pay over “payroll taxes,” Erdman used at least some of the funds within the BSJ CO’s bank account to pay for personal expenses not associated with BSJ CO.
“Employers have a responsibility to withhold the proper amount of taxes from their employees’ wages and pay those taxes over to the IRS,” said IRS Criminal Investigation Acting Special Agent in Charge, Thomas Murdock, St. Louis Field Office. “Not only is it their legal duty to the United States, they also owe it to their workers to protect their Medicare and Social Security benefits.”
This case was investigated by the Internal Revenue Service Criminal Investigation Division.
North Dakota man admits fentanyl trafficking in Great FallsRead the Press Release
GREAT FALLS — A North Dakota man admitted to trafficking charges today after law enforcement found hundreds of fentanyl pills and a loaded firearm in a vehicle he was driving in Great Falls, U.S. Attorney Jesse Laslovich said.
Kelly Sterling Wait, 45, of Williston, North Dakota, pleaded guilty to possession with intent to distribute controlled substances. Wait faces a maximum of 20 years in prison, a $1 million fine and at least three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for May 18. Wait was detained pending further proceedings.
The government alleged in court documents that in October 2022, Russell Country Drug Task Force agents were surveilling a motel room in Great Falls as part of an ongoing drug investigation. Two men, including Wait, left the room, entered a vehicle, drove a short distance and park. Wait was the driver. His male passenger got out of the vehicle and appeared to steal several items from trucks in the lot. The investigation led to the Montana Highway Patrol stopping the vehicle. Wait was removed from the driver’s seat and a loaded pistol was removed from his waistband, along with a fanny pack he had. The vehicle was searched on a state warrant. Approximately 186 fentanyl pills were found in the fanny pack, and six bags, each containing 100 fentanyl pills, were found in the trunk. Another 60 fentanyl pills were found in the passenger seat area.
Assistant U.S. Attorney Ethan R. Plaut is prosecuting the case, which was investigated by the Russell Country Drug Task Force, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, Montana Highway Patrol and Great Falls Police Department.
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Non-Fungible Token (NFT) Developer Charged in Multi-Million Dollar International Fraud SchemeRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Aurelien Michel, a French national residing in the United Arab Emirates (UAE), with defrauding purchasers of “Mutant Ape Planet” NFTs, a type of digital asset, of more than $2.9 million in cryptocurrency. The defendant was arrested last night at John F. Kennedy International Airport. His initial appearance is scheduled for this afternoon before United States Magistrate Judge James R. Cho.
As part of the scheme, NFTs were marketed to purchasers, who were falsely promised numerous rewards and benefits designed to increase demand for, and the value of, their newly acquired NFTs. After selling out of the NFTs, the purchasers were “rug pulled” – a cryptocurrency scam in which a developer attracts investors, but pulls out before the project is complete, leaving buyers with a worthless asset – as none of the promised benefits were provided. Instead, millions worth of the NFT purchasers’ cryptocurrency was diverted for Michel’s personal benefit.
Breon Peace, United States Attorney for the Eastern District of New York, Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations (HSI), New York and Thomas Fattorusso, Acting Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), announced the charges.
“As alleged, the defendant used a traditional criminal scheme to defraud consumers eager to participate in a new digital asset market,” stated United States Attorney Peace. “Protection from fraud and manipulation extends to all consumers and investors, including those participating in the fast-evolving market for NFTs and other crypto assets. Our Office is committed to bringing to justice any criminal actor abusing any markets for their own gain.”
“As alleged, Aurelien Michel perpetrated a ‘rug pull’ scheme - stealing nearly $3 million from investors for his own personal use. Purchasers of Mutant Ape Planet NFTs thought they were investing in a trendy new collectible, but they were deceived and received none of the promised benefits,” said Ivan J. Arvelo, Special Agent in Charge of Homeland Security Investigations (HSI) in New York. “HSI uses our extensive experience investigating financial crime in conjunction with our cutting edge cyber capabilities to uncover fraud and bring the perpetrators to justice.”
“It’s alleged that Michel defrauded investors by making false representations of, amongst other things, giveaways, tokens with staking features, and merchandise collections. Once the NFTs were sold-out, Michel allegedly ceased communications and withdrew purchasers’ funds from the company’s cryptocurrency wallets, lining his pockets with nearly $3 Million of investors’ money,” stated IRS-CI Fattorusso. “Michel can no longer blame the NFT community for his criminal behavior. His arrest means he will now face the consequences of his own actions.”
As alleged in the criminal complaint, Mutant Ape Planet NFTs were a digital asset stored on the Ethereum blockchain. As an NFT, each Mutant Ape Planet NFT was unique, freely transferrable, and gave purchasers exclusive ownership over each NFT. The NFTs were marketed with promises of exclusive benefits potential purchasers would receive. Those benefits included exclusive opportunities for additional investments, giveaways, merchandise, and other rewards. However, after sending their cryptocurrency and obtaining the NFT, purchasers received nothing while their cryptocurrency was diverted from the Mutant Ape Planet NFT project to cryptocurrency wallets controlled by the defendant Aurelien Michel. In total, more than $2.9 million in purchasers’ cryptocurrency was diverted as part of the Michel’s scheme.
As alleged, in a social media chat with current and prospective purchasers, Michel admitted to the fraudulent “rug pull,” but blamed the community of NFT purchasers for his actions, stating, “We never intended to rug but the community went way too toxic.”
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorneys Drew Rolle and Dylan Stern of the Office’s Business and Securities Fraud Section with assistance from Paralegal Specialist William Daniels.
If you believe that you have been a victim of this crime, please call the HSI Tip Line at 1-866-347-2423.
The Defendant:
AURELIEN MICHEL
Age: 24
Dubai, United Arab EmiratesE.D.N.Y. Docket No. 23-MJ-7
Nine Men Charged with Roles in Gang-Led Drug and Gun Trafficking NetworkRead the Press Release
NEWARK, N.J. – Nine members of a drug and gun trafficking network led by Latin King gang members in Union and Middlesex counties have been charged with drug and weapons offenses, U.S. Attorney Philip R. Sellinger announced today.
The defendants are charged by complaint with conspiracy to distribute and possess with intent to distribute narcotics, including fentanyl and cocaine, possession with intent to distribute narcotics, conspiracy to traffic firearms, including several privately made firearms (PMFs or “ghost guns”), and the unlawful possession of firearms.
“The charges we’re announcing today describe an illegal network that was actively distributing guns and drugs, including fentanyl and cocaine, around New Jersey,” U.S. Attorney Sellinger said. “In addition to bringing illegal weapons into New Jersey from other states, these defendants are charged with manufacturing untraceable gun parts that could be used to convert weapons for automatic firing. Thanks to the excellent work of our federal, state and local law enforcement partners, we’ve dealt a substantial blow to this criminal operation.”
“ATF has a zero-tolerance policy for those engaged in firearms-related violence, violent drug gangs, and those who facilitate the illegal manufacturing and trafficking of firearms,” Acting Special Agent in Charge of ATF Bryan Miller said. “We are committed to doing the necessary work to protect our neighborhoods from criminals who jeopardize the public’s safety and lessen the quality of life in our communities. This investigation demonstrates ATF’s dedication to working with our local, state, and federal partners in identifying and incarcerating violent offenders who threaten the peace that our neighborhoods so deserve.”
“The arrest of these defendants, and the seizure of drugs and guns has made our community safer,” Acting Special Agent in Charge of the DEA’s New Jersey Division Daniel J. Kafafian said. “This network was pushing deadly fentanyl and cocaine, and there is no doubt the weapons being produced and seized would have led to violence and misery. This is another example of law enforcement partners at all levels working towards the common goal of protecting the citizens of New Jersey.”
According to the allegations in the complaint, the defendants below are members and associates of the Latin Kings street gang:
- Justin Aponte, 28, of Elizabeth, New Jersey;
- Victor Barrios, 28, of Bayonne, New Jersey;
- Jose Fontanez, 28, of Carteret, New Jersey;
- Jonathan Lakomy, 32, of Ringwood, New Jersey;
- Christian Rodriguez, 32, of Chesterfield, Virginia;
- Jeziel Romero, 27, of Old Bridge, New Jersey;
- Christopher Soto, 30, of Matawan, New Jersey;
- Angel Valentin, 34, of Carteret, and
- Ian Wooten, 30, of Carteret.
All New Jersey resident defendants appeared before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court. Rodriguez appeared before U.S. Magistrate Judge Mark R. Colombell, in Richmond, Virginia, federal court. Soto remains at large.
According to documents filed in this case and statements made in court:
Beginning in May 2022, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration, along with state and local law enforcement agencies, began investigating a drug and firearms trafficking network that included Aponte, Barrios, Fontanez, Lakomy, Rodriguez, Romero, Valentin and Wooten. Many members of the trafficking network were members or associates of the Almighty Latin Kings & Queens Nation, commonly known as the “Latin Kings.” The trafficking network operated largely in neighborhoods in Elizabeth and Carteret, New Jersey.
Law enforcement officers identified members of the trafficking network who were responsible for the distribution of controlled substances, including substantial quantities of fentanyl and cocaine, from residences in Elizabeth and Carteret and elsewhere. Investigators were able to collect evidence that Lakomy supplied fentanyl to Aponte, who in turn provided the drugs to other members of the trafficking network for redistribution. Fontanez, Romero, Valentin, and Wooten were identified as responsible for street-level distribution of the fentanyl and cocaine.
Aponte, Barrios, Rodriguez and Wooten conspired to illegally traffic firearms, including traditional firearms and PMFs. In November 2022, investigators determined that Aponte and Barrios were working to produce PMFs at Barrios’ residence. A search warrant executed at that time resulted in the seizure of:
- One Glock-26-style PMF 9x19mm semi-auto handgun;
- one .40 caliber S&W handgun with a Polymer-80 frame with a slide from a Glock model 22 handgun;
- 21 rounds of 5.56 caliber ammunition;
- 45 rounds of .40 caliber ammunition;
- 13 partially manufactured firearms;
- two 3D printers; and
- 3D printing materials.
When law enforcement agents entered Barrios’ residence, they observed that the two 3D printers were in the process of manufacturing PMFs.
Investigators also determined that Aponte was conspiring with Rodriguez to traffic firearms from Virginia to New Jersey. In one meeting between Aponte, Rodriguez, and an undercover law enforcement agent at a location in Virginia, Rodriguez agreed to sell several firearms to Aponte. Subsequently, Aponte told the undercover agent that the firearms were ready to be transported from Rodriguez to Aponte and then sold to the agent.
From May 2022 to December 2022, law enforcement officers seized more than 15,000 individual doses of fentanyl, approximately 14 grams of cocaine base, 26 firearms including 24 PMFs, and three machine gun conversion devices, which are parts designed to convert a semiautomatic firearm into a fully automatic machinegun.
In addition, during the course of lawful searches conducted by law enforcement on January 4, 2023, law enforcement recovered:
- four firearms, including one FIE Titan .25 caliber semiautomatic handgun and three PMFs consistent with those seized by law enforcement during the investigation from Soto’s residence;
- 3,500 individual doses of suspected fentanyl, a separate 125 grams of suspected powdered fentanyl, and narcotics packaging materials from Lakomy’s residence; and
- 5,000 individual doses of suspected fentanyl, two firearms, including a Springfield model XD 9mm semiautomatic handgun, and a Smith & Wesson model SD40 VE .40 caliber semiautomatic handgun, and six Glock-brand firearm slides consistent with those used by members of the conspiracy to manufacture PMFs, and 100 bricks of suspected fentanyl from Wooten’s residence.
The maximum penalties per count in the filed complaint are:
Count
Charge
Defendant(s)
Maximum Penalty
One
Conspiracy to Distribute Controlled Substances
Aponte, Fontanez, Lakomy, Romero, Valentin, Wooten
Life in prison
Two
Firearms Trafficking Conspiracy
Aponte, Barrios, Rodriguez, Wooten
15 Years
Three
Firearms Trafficking
Aponte, Barrios
15 Years
Four
Possession of Machine Guns
Aponte
10 Years
Five
Possession of a Firearm by a Convicted Felon
Aponte
15 Years
Six
Possession of a Firearm by a Convicted Felon
Soto
15 Years
Seven
Possession with Intent to Distribute Fentanyl
Lakomy
40 Years
Eight
Possession with Intent to Distribute Fentanyl
Wooten
40 Years
Nine
Possession with Intent to Distribute Cocaine Base
Fontanez
20 Years
U.S. Attorney Sellinger credited special agents of the ATF, under the direction of Acting Special Agent in Charge Miller in Newark and Acting Special Agent in Charge Christopher Amon in Richmond, Virginia; special agents of the DEA, under the direction of Acting Special Agent in Charge Kafafian in Newark; the Union County Prosecutor’s Office, under the direction of Prosecutor William A. Daniel; the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Yolanda Ciccone; the Plainfield Police Department, under the direction of Director James Abney; the Elizabeth Police Department, under the direction of Police Director Earl Graves and Chief Giacommo Sacca; the Perth Amboy Police Department, under the direction of Chief Lawrence Cattano; the Woodbridge Police Department, under the direction of Police Director Robert Hubner; the Union County Sheriff’s Department, under the direction of Sheriff Peter Corvelli; and the Scotch Plains Police Department, under the direction of Chief Theodore D. Conley, with the investigation. He also thanked the Hudson County Prosecutor’s Office and the New Jersey Department of Corrections for their assistance.
The government is represented by Assistant U.S. Attorneys John Mezzanotte and Robert Frazer of the Organized Crime and Gangs Unit in Newark, and by Assistant U.S. Attorney Angela Mastandrea-Miller of the U.S. Attorney’s Office, Eastern District of Virginia.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Newport News Attorney Sentenced for Tax FraudRead the Press Release
NEWPORT NEWS, Va. – A Newport News woman was sentenced today to 52 months in prison and ordered to pay a $200,000 fine for evading the assessment of her 2015 and 2016 income tax returns.
According to court documents, Nosuk Kim, 61, was formerly a licensed attorney, substitute judge, and member of the disciplinary committee for the Virginia State Bar. While serving in these capacities, she and her husband laundered more than $2.2 million in fraud proceeds through an entity in China and her attorney-trust account. The defendant used these funds to pay down a home equity line of credit on the family home and to purchase other real estate investments.
The laundered funds were proceeds of her husband’s extensive procurement fraud scheme involving more than $7 million in government contracts. The defendant’s husband, Beyung Kim, was previously prosecuted in the Eastern District of Virginia and sentenced to 58 months in prison in August 2021.
Despite laundering approximately $970,000 of taxable income in 2015 and approximately $1,250,000 of taxable income in 2016, the defendant did not report any of this income on her federal income taxes for those tax years. As a result of her tax fraud, the defendant caused approximately $868,924.54 in lost tax revenue to the United States.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Derek Gordon, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Chris Dillard, Special Agent in Charge for the Department of Defense Office of Inspector General, Defense Criminal Investigative Service; Cynthia L. Hearn, Acting Special Agent in Charge of the Washington D.C. Field Office, IRS-Criminal Investigation (IRS-CI); and Peter J. Tolentino, Special Agent in Charge of the NCIS Economic Crimes Field Office made the announcement after sentencing by U.S. District Judge David J. Novak.
Significant assistance was provided by the Defense Contract Audit Agency.
Assistant U.S. Attorneys Brian J. Samuels and D. Mack Coleman prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:22-cr-52.
Milwaukee Man sentenced to 60 months’ imprisonment for fraudulent tax refund scheme.Read the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on January 4, 2023, Francis T. Burns (52) was sentenced to 60 months’ imprisonment for orchestrating a fraudulent tax refund scheme. Burns was also ordered to pay restitution to the Internal Revenue Service (IRS) in the amount of $1,127,960.45 and to spend two years on supervised release following his prison term.
In November 2020, a superseding indictment charged Burns with committing wire fraud, mail fraud, money laundering, and submitting a false claim to the IRS, in violation of 18 U.S.C. §§ 1341, 1343, 1957, and 287. Burns went to trial and was convicted of all counts by a jury on October 5, 2022.
At trial, the United States proved that between 2016 and 2019, Burns engaged in a scheme to defraud the IRS into paying millions of dollars in refunds to which Burns was not entitled. To obtain those refunds, Burns claimed to be filing returns on behalf of a non-existent estate or a trust he made up. Burns’ false tax returns attached and were based on fake 1099s that falsely claimed significant sums of income were withheld for federal taxes by third parties such as banks. In reality, Burns was unemployed and there was no estate, no trust, and no income.
Over the period of the scheme charged in the indictment, Burns filed false tax returns asking for refunds totaling more than $80 million. Burns also subsequently filed additional false returns asking for over $2 billion. Although Burns did not receive the majority of the money, he spent the refunds he did receive on an expensive house in Chicago, a Mercedes, and other personal expenses. The IRS later seized and forfeited a significant percentage of the money, the house, and the car. Burns’ fraudulent scheme ultimately caused over $1 million in losses to the IRS.
In announcing the sentence, United States District Court Judge Lynn Adelman focused on the egregious nature of Burns’ continuing conduct despite receiving multiple warnings and communications from the IRS alerting him to the frivolous nature of his filings.
Judge Adelman noted that it was important to impose a significant sentence in order to send a message to other rational actors who might consider defrauding the IRS, particularly given that the United States’ tax system depends on the honesty of its tax-paying citizens.
“Today’s sentence is the direct result of Burns’ relentless efforts to defraud the IRS and line his own pockets at the expense of his fellow citizens,” states U.S. Attorney Haanstad. “I commend the hard work of all involved in seeking to hold Burns responsible for his actions and to seek justice for every individual in this country who pays his or her fair share of taxes.”
"Francis Burns engaged in a deliberate scheme to steal from the U.S. Treasury. In the process, he displayed a complete disregard for his fellow citizens," said Justin Campbell, Special Agent in Charge of IRS - Criminal Investigation, Chicago Field Office. "We are pleased that justice was served on behalf of honest taxpayers."
The Criminal Investigation Division of the Internal Revenue Service investigated this case, which Assistant United States Attorneys Julie F. Stewart and John P. Scully prosecuted.
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Michigan man indicted for setting fire to nine commercial trailers in New MexicoRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Brendan Iber, Special Agent in Charge of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), announced that a federal grand jury on Dec. 20 indicted Viorel Pricop on nine counts of arson.
Pricop, 64, of Allen Park, Michigan, is currently in custody in the Central District of California, where Pricop is charged with arson.
According to a criminal complaint, Pricop allegedly set fire to 25 semi-truck trailers owned by Swift Transportation, a trucking company based in Phoenix, Arizona. In addition to the nine fires in New Mexico, Pricop allegedly is responsible for fires in California, Arizona, Texas, Oklahoma, Louisiana, Arkansas and Alabama. On Dec. 21, Pricop was indicted in the District of Arizona on three counts of arson.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Pricop faces up to 10 years in prison.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case. Assistant United States Attorney Jack E. Burkhead is prosecuting the case for the District of New Mexico.
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Meriden Man Pleads Guilty to Fentanyl Distribution ChargeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that GERARDO NUNEZ-IRIZARRY, also known as “Indio,” 44, of Meriden, pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to possession with intent to distribute 40 grams or more of fentanyl.
According to court documents and statements made in court, between June and August 2021, law enforcement made multiple controlled purchases of fentanyl from Nunez-Irizarry. In November 2021, Nunez-Irizarry agreed to sell a 50-gram quantity of fentanyl. On November 18, 2021, investigators stopped Nunez-Irizarry’s car in Meriden as he drove to an arranged location to complete the transaction and seized approximately 50 grams of fentanyl. He was arrested on state charges at that time.
Nunez-Irizarry was arrested on federal charges on March 24, 2022.
Judge Meyer scheduled sentencing for March 30, at which time Nunez-Irizarry faces a maximum term of imprisonment of 40 years.
Nunez-Irizarry is released on a $100,000 bond pending sentencing.
This matter is being investigated by the DEA’s New Haven Task Force, which includes personnel from the DEA, U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, and the New Haven, East Haven, West Haven, Meriden, Waterbury, Branford, Ansonia, and Middletown Police Departments as well as from the Connecticut State Police. The investigation has been supported by the Meriden Police Department and the U.S. Postal Inspection Service’s Narcotics and Bulk Cash Trafficking Task Force, which includes members from the U.S. Postal Inspection Service, the U.S. Postal Service – Office of the Inspector General, the Connecticut Army National Guard, and the Hartford, New Britain, Meriden and Town of Groton Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Konstantin Lantsman through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Melrose Man Indicted for Child Pornography OffensesRead the Press Release
BOSTON – A Melrose man has been indicted in connection with possession and receipt of child sexual abuse material (CSAM).
Patrick Baxter, 42, was indicted on one count of possession of child pornography and one count of receipt of child pornography. Baxter will appear in federal court in Boston at a later date. He was previously arrested and charged by criminal complaint in December 2022.
According to the charging documents, Baxter downloaded CSAM from the internet on three occasions in June and July 2021. A computer hard drive seized during a search of Baxter’s residence was allegedly found to contain approximately 427 video files depicting CSAM.
The charge of receipt of child pornography provides for a sentence of at least five years and up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. The charge of possession of child pornography provides for a sentence of up to 10 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and the Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Valuable assistance was provided by the Melrose Police Department. Assistant U.S. Attorney David G. Tobin of Rollins’ Major Crimes Unit is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. 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 www.projectsafechildhood.gov/.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
McKeesport Man Pleads to Possessing Multiple DrugsRead the Press Release
PITTSBURGH - A resident of McKeesport, Pennsylvania, pleaded guilty in federal court to one count of possession with the intent to distribute fentanyl, heroin and crack cocaine, United States Attorney Cindy K. Chung announced today.
Vincent Chambers, age 42, pleaded guilty to one count before United States District Judge Scott Hardy.
In connection with the guilty plea, the court was advised that Allegheny County Police detective were conducting surveillance in the McKeesport area and encountered Chambers. Chambers fled, but the detectives caught up with Chambers and found in his person quantities of fentanyl, heroin and crack cocaine that Chambers intended to distribute.
Judge Hardy scheduled sentencing for May 12, 2023, at 9:30 am. The law provides for a total sentence of thirty years in prison, a fine of $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Allegheny County Police conducted the investigation that led to the prosecution of Chambers.
Massachusetts Man Pleads Guilty to Conspiracy to Steal FirearmsRead the Press Release
CONCORD – Johariel Quezada, 19, of Methuen, pleaded guilty in federal court today to conspiring to steal firearms from federal firearms licensees, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, between August 29, 2021 and October 4, 2021, Quezada conspired with others to steal firearms from three New Hampshire Federal Firearms Licensees. During the course of the conspiracy, more than 40 firearms were stolen from Milford Firearms in Milford, Second Amendment Arms in Windham, and MacPhearson Firearms in Brentwood. Multiple stolen firearms were recovered from Quezada’s residence. Videos recovered from Quezada’s phone showed numerous stolen firearms and admissions of his involvement in the conspiracy.
Quezada is scheduled to be sentenced on April 13, 2023.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Andover Police Department, the Brentwood Police Department, the Haverhill Police Department, the Lawrence Police Department, the Massachusetts State Police, the Rockingham County Sheriff’s Office, the Salem (NH) Police Department, the Somersworth Police Department, the Saugus Police Department, the Wellesley Police Department, and the Windham Police Department. The case is being prosecuted by Assistant U.S. Attorneys Anna Z. Krasinski and John J. Kennedy.
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Married Couple Arrested for Producing Child PornographyRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a Federal Criminal Complaint and Arrest Warrants were returned on a Vale, South Dakota, husband and wife charging Production of Child Pornography.
Timothy Scott White, age 42, and Leslie Marie White, age 24, were arrested on the Complaint on December 19, 2022. They appeared before U.S. Magistrate Judge Daneta Wollmann on December 21, 2022, and pleaded not guilty.
If convicted of the charge, the defendants each face a mandatory minimum sentence of 15 years in federal prison, up to a maximum possible penalty of 30 years in federal prison and/or a $250,000 fine, a lifetime term of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Whites were arrested pursuant to an ongoing investigation involving online child pornography production and distribution. The charge relates to the Whites, being the parents of a minor, permitting or encouraging the minor to engage in or assist another person in engaging in sexually explicit conduct, for the purpose of producing a visual depiction of such conduct. The visual depictions of a minor engaged in sexually explicit conduct were then transmitted over the Internet. The conduct is alleged to have occurred between February 1, 2022, and December 19, 2022.
Timothy White was employed by the Spearfish Emergency Ambulance Service and the Piedmont Fire Department.
The charge is merely an accusation and the Whites are presumed innocent unless and until proven guilty.
The investigation is being conducted as part of a joint effort between the South Dakota Division of Criminal Investigation’s Internet Crimes Against Children Task Force, the Federal Bureau of Investigation, and the Butte County Sheriff’s Office. Assistant U.S. Attorney Heather Sazama is prosecuting the case.
The Whites were remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for February 28, 2023.
Marion, Indiana Man Sentenced to 240 Months in PrisonRead the Press Release
FORT WAYNE –David Hueston, 45 years old, of Marion, Indiana, was sentenced by United States District Court Judge Holly A. Brady after pleading guilty to possessing with intent to distribute methamphetamine, carrying a firearm during a drug trafficking crime and being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Hueston was sentenced to 240 months in prison followed by 5 years of supervised release.
According to documents in the case, in February 2021, law enforcement executed a search warrant on a residence where Hueston possessed over 2 pounds of methamphetamine and a firearm. Other items associated with drug distribution were found in the residence in addition to $17,000 cash and amounts of fentanyl, heroin and marijuana. Hueston is a convicted felon and, as such, was prohibited from possessing the firearm.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Grant County Jean (Joint Effort Against Narcotics) Team Drug Task Force which is comprised of Grant County Sheriff’s Department and Marion Police Department. The case was prosecuted by Assistant United States Attorney Brent Ecenbarger.
Marinette Man Arrested for Online Crimes Targeting Children.Read the Press Release
United States Attorney Gregory J. Haanstad of the Eastern District of Wisconsin announced that on January 4, 2023, a criminal complaint was issued charging David A. Johnson (age: 36) of Marinette, Wisconsin, with attempted production of child pornography and the transfer of obscene material to a minor in violation of Title 18, United States Code, Sections 2251(a) and 1470.
The attempted production of child pornography charge carries a mandatory minimum sentence of 15 years and up to 30 years of incarceration in federal prison upon conviction. The transfer of obscene material charge carries up to ten years’ imprisonment. A conviction on either charge would require Johnson to register as a sexual offender.
According to the criminal complaint, Johnson engaged in sexual conversations with minors located in Ohio and Florida using various social media applications. Johnson sent digital images of his genitals to the minors and urged the minors to send sexually explicit images of themselves to him. Johnson also engaged with an individual whom he believed to be a minor child located in Wisconsin. That individual was in fact an undercover law enforcement agent investigating Johnson’s online activities.
This case is being investigated by the Green Bay and Milwaukee offices of the Federal Bureau of Investigation (FBI) with the assistance of the Marinette Police Department and the Marinette County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Daniel R. Humble
A criminal complaint is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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Man sentenced to 17 and a half years in prison in New Mexico truck stop fraud caseRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that Bruce Beckner was sentenced on Jan. 4 to 17 years and six months in prison. A federal jury convicted Beckner, 60, on April 7, 2022, on one count of bank fraud, one count of wire fraud and one count of conspiracy to commit fraud.
Beckner was convicted of major financial crimes in California before relocating to New Mexico, where he assumed the alias “Bill Evans” and orchestrated a new multimillion-dollar fraud scheme involving a truck stop business. Beckner recruited co-defendant Arthur Herlihy, 74, of Santa Fe, New Mexico, in 2007 to join him in developing a business plan and securing financing to renovate a truck stop in Deming, New Mexico.
On July 7, 2009, Beckner and Herlihy obtained a loan for $135,165 from First New Mexico Bank. The stated purpose of the loan was to pay off a prior loan secured by a liquor license, and Beckner and Herlihy pledged the liquor license as collateral for the new loan as part of the transaction. At the time it received the loan from First New Mexico Bank, the truck stop business did not own the liquor license outright, but still owed money to the broker who financed the earlier liquor license transaction, which occurred in December 2008. Herlihy and Beckner falsely represented to the bank that the liquor license would be held free and clear of any liens or lawsuits. Beckner also signed the transaction documents using his alias, “Bill Evans,” and submitted an inaccurate personal financial statement to the bank concealing outstanding restitution debt he owed as the result of his prior criminal conviction. Rather than pay off the license, Beckner and Herlihy used the loan for other expenses and the license remained encumbered to the previous loan. In 2011, the truck stop business defaulted on the loan from First New Mexico Bank.
On Oct. 2, 2009, Beckner and his associates obtained over $16 million in loans for Fuel4Less, LLC, through the New Mexico Finance Authority, including $12 million from Virtual Realty Enterprises and $4 million from U.S. Bank Development Corporation. Beckner signed several documents associated with the loan under the false name “Bill Evans,” representing himself as facilities and operating manager of Fuel4Less. Beckner also submitted a false résumé under the name “Bill Evans” that omitted material information and claimed experience and previous employment he did not have. These loans also went into default in 2011, after which a New Mexico state judge turned the business over to a court-appointed receiver, who filed a bankruptcy petition.
Beckner and others solicited money from various investors purportedly to be used in a “fuel factoring opportunity.” They told investors that this opportunity would involve one component of the enterprise purchasing fuel from outside suppliers that would then be sold back to another component at a higher price, and the profits from the internal sales would be shared by the investors. Instead, there were no internal sales, and the investments, some of which were sent by wire transfers, were used to repay other investors or to cover various operational expenses, including Becker’s salary.
Beckner and his associates sent investors promissory notes and other documents stating their investments were secured by truck stop assets. They did not tell investors that the pre-existing loans made the promissory notes essentially worthless.
Soon after law enforcement confronted him in 2011, Beckner fled the United States and relocated permanently to the island of Roatan in Honduras. Beckner was arrested by the Honduras Transnational Criminal Investigative Unit (TCIU) of Homeland Security Investigations (HSI) on March 7, 2019, at the San Pedro Sula airport in Honduras. At the time of his arrest, Beckner had been residing on Roatan for several years. Honduras approved his extradition on April 11, 2019, and he was transferred into U.S. custody on April 16, 2019.
Upon his release from prison, Beckner will be subject to five years of supervised release.
Herlihy pled guilty in Feb. 2017, to making a false statement to a bank on a loan document, and was sentenced on Aug. 11, 2017, to three years of supervised release.
HSI, IRS Criminal Investigation and the Special Investigations Division of the New Mexico Office of the Attorney General investigated this case. Assistant U.S. Attorneys Sean J. Sullivan and Taylor F. Hartstein are prosecuting the case. The U.S. Department of Justice’s Office of International Affairs, HSI Honduras TCIU, and the HSI ICE Country Attaché in Honduras assisted with the extradition.
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Macy Man Sentenced for Sexual AssaultRead the Press Release
United States Attorney Steven Russell announced that Talis Dale, 23, of Macy, Nebraska, was sentenced today for sexual abuse of a minor. Chief United States District Court Judge Robert F. Rossiter, Jr. sentenced Dale to 6½ years’ imprisonment. There is no parole in the federal system. After his release from prison, Dale will begin a six-year term of supervised release.
In May of 2022, Dale intentionally touched, not through the clothing, the genitalia of a minor female who was 12 years old. Dale admitted to touching the minor to arouse or gratify the sexual desire of any person. The minor was in her room going to sleep when Dale touched her. The minor had to raise her voice to get Dale to stop. The following morning, the minor reported what happened and law enforcement were notified. Investigation revealed Dale returned later and attempted to commit another sexual act with the minor.
This case was investigated by the Federal Bureau of Investigation.
Long Island Medical Doctor Sentenced to 30 Months in Prison for Medicare Billing Fraud SchemeRead the Press Release
Earlier today, in federal court in Central Islip, Morris Barnard, a gastroenterologist practicing in Great Neck, New York, was sentenced by United States District Judge Gary R. Brown to 30 months in prison for health care fraud. Barnard pleaded guilty to the charge in March 2022. The Court also ordered over $1.4 million in restitution to Medicare.
Breon Peace, United States Attorney for the Eastern District of New York and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI) and Susan A. Frisco , Acting Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), announced the sentence.
“Today, Dr. Barnard learned the consequences for his greed-driven scheme in which he took advantage of patients who are disabled and living in residential group homes by falsely billing Medicare for medical procedures on them that he never actually performed,” stated United States Attorney Peace. “The defendant was not entitled to one penny of the $1.4 million in precious public health care funds that he pocketed and will now have to pay back as part of his sentence.”
“As the defendant learned today, defrauding Medicare does not pay - it has consequences. The FBI is committed to eradicating all fraud and schemes that abuse government-sponsored health care programs,” stated FBI Assistant Director-in-Charge Driscoll.
“Health care professionals who fraudulently bill Medicare for services never actually provided divert taxpayer funding meant to pay for medically necessary services for people enrolled in Medicare,” stated Acting Special Agent in Charge Susan A. Frisco of HHS-OIG. “OIG will continue to work with our law enforcement partners to protect the integrity of federal health care programs.”
From October 2015 through February 2020, the defendant submitted over $3 million in billings to Medicare for colonoscopy and gastroenterological procedures that were not performed. Most of these billings indicated that the services were rendered to disabled beneficiaries, who were living in residential group homes. Medicare reimbursed approximately $1.4 million of these false claims, none of which the defendant was entitled to receive.
The government’s case is being prosecuted by Assistant United States Attorneys Charles P. Kelly and Madeline O’Connor.
The Defendant:
Morris Barnard
Age: 59
Great Neck, New YorkE.D.N.Y. Docket No. 21-018(GRB)
- Lengthy Prison Sentences for Three Nashville Drug Dealers
Las Vegas Man Guilty of Conspiring to Advertise the Distribution of Child Pornography Sentenced to 30 Years in Federal PrisonRead the Press Release
SHREVEPORT, La. - United States Attorney Brandon B. Brown announced that Alexander D. Pennington, 35, of Las Vegas, Nevada, has been sentenced by United States District Judge S. Maurice Hicks, Jr. to 30 years in prison, followed by a lifetime of supervised release, on child pornography charges. Pennington was also ordered to pay restitution in the amount of $10,000.
Pennington was charged in a superseding indictment in November 2021 with conspiracy to advertise the distribution of child pornography. He pleaded guilty to the charge on August 30, 2022. According to information introduced in court, from on or about May 1, 2021 through July 7, 2021, Pennington was a sub-administrator of private chat groups on the Kik Messenger app and had his own username. These private chat groups were dedicated to the advertisement and distribution of child pornography. As a sub-administrator, Pennington enforced the rules of the private chat groups, one of which required members of the private chat groups to post child pornography or be removed from the groups.
On or about June 1, 2021, Pennington a.k.a. “grimka00” published an advertisement in the private chat group titled “Sneak & Peak” for the purpose of receiving and displaying child pornography. The advertisement consisted of a notice which stated, “Any babies?” along with an image of a nude female baby.
The case was investigated by the Department of Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Jessica D. Cassidy.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines 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.
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Kanawha County Man Pleads Guilty to Child Pornography CrimeRead the Press Release
BLUEFIELD, W.Va. – Christopher Stephen Taylor, 52, of St. Albans, pleaded guilty today to possession of prepubescent child pornography.
According to court documents and statements made in court, on May 19, 2022, Taylor attempted to print images depicting prepubescent child pornography from two compact disks he brought to the self-service photo kiosk of a St. Albans pharmacy. Taylor was unable to obtain the prints and left the store. A pharmacy employee found the child pornography uploaded to the kiosk and contacted law enforcement.
Taylor admitted to possessing 1,769 images and videos of prepubescent child pornography. Many of the children in the images were under the age of 12. Several of the images depict children subjected to sadistic or masochistic conduct. Taylor admitted that one of the images depicts an adult male sexually assaulting a prepubescent girl.
Taylor is scheduled to be sentenced on April 18, 2023, and faces a maximum penalty of 20 years in prison, five years and up to a lifetime of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), the St. Albans Police Department, and the West Virginia State Police Internet Crimes Against Children (ICAC) Task Force.
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Julie M. White is prosecuting the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-181.
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Jet Medical and Related Companies Agree to Pay More Than $700,000 to Resolve Medical Device AllegationsRead the Press Release
WASHINGTON – Pennsylvania-based medical device distributor Jet Medical Inc. (Jet) agreed to pay $200,000 to resolve criminal allegations relating to a migraine headache treatment, and Jet and two related companies agreed to pay another $545,000 in a civil settlement involving the same device.
In a criminal information filed Wednesday in the Southern District of Illinois, the government alleged that, between April 2014 and April 2019, Jet introduced into interstate commerce devices that were misbranded under the Federal Food, Drug and Cosmetic Act (FDCA) because Jet did not obtain approval or clearance from the U.S. Food and Drug Administration (FDA) prior to distributing the devices. Jet’s device, the Allevio SPG Nerve Block Catheter (Allevio), was intended to treat migraine headaches by administering nerve blocks to the sphenopalatine ganglion (SPG), a collection of nerves located deep in the midface of the skull. The information alleges that Jet never sought approval or clearance from FDA to distribute the Allevio for this intended use, nor did Jet conduct an investigational study regarding the Allevio’s safety and effectiveness when used as intended.
The resolution includes a deferred prosecution agreement and criminal penalties totaling $200,000. As part of the deferred prosecution agreement, which must be approved by the court, Jet admitted that it distributed misbranded devices in violation of the FDCA and agreed to implement enhanced compliance measures. The resolution also includes a civil settlement with the federal government under the False Claims Act (FCA) totaling $545,133. Along with Jet, related companies Medical Components Inc. (MedComp) and Martech Medical Products Inc. (Martech) are parties to the civil settlement.
“The FDA approval and clearance process serves an important role in ensuring that devices used to treat patients are safe, effective, and medically appropriate,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will not permit companies to circumvent that process and put profits over patient safety.”
“Medical device companies put vulnerable patients at risk when they fail to follow FDA’s standards and requirements,” said U.S. Attorney Rachelle Aud Crowe for the Southern District of Illinois. “This resolution reflects our commitment to holding companies accountable for violating the integrity of the FDA approval process and placing profits over people.”
“Doctors and their patients rely on FDA oversight to ensure that the medical devices they depend upon are safe and effective for their intended uses. Device manufacturers who circumvent the proper regulatory path in bringing their products to market endanger patients and put the public health at risk,” said Assistant Commissioner for Criminal Investigations Catherine A. Hermsen of the FDA Office of Criminal Investigations. “We will continue to investigate and bring to justice companies that ignore the law and jeopardize the public health.”
“This medical device distributor undermined the integrity of the FDA approval process and disregarded patient safety for personal profit,” said Special Agent in Charge Curt L. Muller of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “Working closely with our law enforcement partners, we will continue to investigate and hold accountable those who put the health and safety of patients at risk and waste valuable taxpayer dollars.”
The civil settlement resolves a lawsuit filed under the qui tam or whistleblower provision of the False Claims Act in the Southern District of Illinois. That lawsuit alleged that Jet, MedComp, and Martech violated the FCA by causing medical providers to submit false claims to the Medicare Program for procedures using the Allevio. The lawsuit alleged the Allevio was not approved or authorized by the FDA for use in SPG nerve blocks for the treatment of headaches, and that the procedure was not covered by Medicare. The suit alleged that Jet, MedComp, and Martech instructed, coached, and encouraged medical providers to submit improper billing codes to Medicare for reimbursement of services using the Allevio device.
The resolution of this matter illustrates the government’s emphasis on combating health care fraud. The FCA is one of the most powerful tools in this effort. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 900-HHS-TIPS (800-447-8477).
Assistant U.S. Attorney Luke Weissler for the Southern District of Illinois and Trial Attorney David Hixson of the Civil Division’s Consumer Protection Branch, with assistance from the FDA’s Office of Chief Counsel, represented the government in the criminal case. Assistant U.S. Attorney Laura Barke for the Southern District of Illinois represented the government in the civil case. The FDA’s Office of Criminal Investigations conducted the investigation.
Except as to conduct admitted in connection with the deferred prosecution agreement, the claims settled by the civil agreement are allegations only and there has been no determination of civil liability.
For more information about the ConsUmer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Illinois, visit https://www.justice.gov/usao-sdil.
Jackson Man Pleads Guilty to Carjacking and Brandishing a Firearm in Relation to a Crime of ViolenceRead the Press Release
Jackson, Miss. – A Jackson man pleaded guilty today to carjacking and brandishing a firearm in relation to a crime of violence, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
According to court documents, David Demazzio Tyler, 32, carjacked an 81-year-old victim at gunpoint in Clinton, Mississippi on December 2, 2021.
On March 22, 2022, a federal grand jury indicted Tyler for armed carjacking and brandishing a firearm in relation to a crime of violence.
Tyler will be sentenced on April 18, 2023 in U.S. District Court in Jackson. He faces a minimum sentence of seven years in prison and a maximum sentence of life in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Clinton Police Department. It is being prosecuted by Assistant United States Attorney Jessica S. Terrill.
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.
Hombre de Fresno acusado de posesión ilegal de municionesRead the Press Release
FRESNO, Calif. — Un gran jurado federal emitió hoy una acusación de un cargo contra Emmanuelle Padilla, de 26 años, de Fresno, acusándolo de ser un delincuente en posesión de municiones, anunció el fiscal federal Phillip A. Talbert.
Según documentos judiciales, se encontró a Padilla en posesión de municiones el 24 de octubre de 2022. Tiene antecedentes penales por posesión de sustancias controladas mientras estaba armado y por ser un delincuente en posesión de un arma de fuego y tiene prohibido poseer armas de fuego y municiones.
Este caso fue producto de una investigación del Departamento de Policía de Fresno y la Oficina Federal de Investigaciones. El fiscal federal adjunto Arin C. Heinz está procesando el caso.
Si es declarado culpable, Padilla enfrenta una pena legal máxima de 15 años de prisión y una multa de $250,000. Sin embargo, cualquier sentencia se determinaría a discreción del tribunal después de considerar cualquier factor legal aplicable y las Pautas de sentencias federales, que tienen en cuenta una serie de variables. Los cargos son solo acusaciones; el acusado se presume inocente hasta que se pruebe su culpabilidad más allá de una duda razonable.
Este caso es parte del Proyecto Vecindarios Seguros (PSN), un programa que reúne a todos los niveles de las fuerzas del orden y las comunidades a las que sirven para reducir los delitos violentos y la violencia armada, y hacer que nuestros vecindarios sean más seguros para todos. El 26 de mayo de 2021, el Departamento lanzó una estrategia de reducción de delitos violentos que fortalece a PSN con base en estos principios básicos: fomentar la confianza y la legitimidad en nuestras comunidades, apoyar a las organizaciones comunitarias que ayudan a prevenir que ocurra la violencia en primer lugar, establecer las prioridades de aplicación y la medición de los resultados.
Hombre de Bakersfield acusado de posesión de armas de fuego y metanfetaminaRead the Press Release
FRESNO, Calif. — Un gran jurado federal emitió hoy una acusación de dos cargos contra Arturo Márquez, de 45 años, de Bakersfield, acusándolo de posesión de más de 50 gramos de metanfetamina con la intención de distribuir y posesión de tres armas de fuego, dijo el fiscal federal Phillip Anunció A. Talbert.
Según documentos judiciales, después de realizar un registro en la residencia de Márquez en Bakersfield, los oficiales descubrieron trece armas de fuego, grandes cantidades de municiones y aproximadamente 936 gramos de metanfetamina. Márquez tiene condenas por delitos graves por posesión previa de armas de fuego y, por lo tanto, tiene prohibido poseer armas de fuego o municiones.
Este caso fue producto de una investigación realizada por la Oficina del Sheriff del Condado de San Luis Obispo, la Patrulla de Carreteras de California y la Oficina Federal de Investigaciones. El fiscal federal adjunto Arin C. Heinz está procesando el caso.
Si es declarado culpable de posesión con la intención de distribuir metanfetamina, Márquez enfrenta una pena máxima legal de cadena perpetua y una multa de $10 millones. Este cargo también conlleva una sentencia mínima obligatoria de diez años. Si es declarado culpable de ser un delincuente en posesión de un arma de fuego, Márquez enfrenta una pena legal máxima de 15 años de prisión y una multa de $250,000. Sin embargo, cualquier sentencia se determinaría a discreción del tribunal después de considerar cualquier factor legal aplicable y las Pautas de sentencias federales, que tienen en cuenta una serie de variables. Los cargos son solo acusaciones; el acusado se presume inocente hasta que se pruebe su culpabilidad más allá de una duda razonable.
Este caso es parte del Proyecto Vecindarios Seguros (PSN), un programa que reúne a todos los niveles de las fuerzas del orden y las comunidades a las que sirven para reducir los delitos violentos y la violencia armada, y hacer que nuestros vecindarios sean más seguros para todos. El 26 de mayo de 2021, el Departamento lanzó una estrategia de reducción de delitos violentos que fortalece a PSN con base en estos principios básicos: fomentar la confianza y la legitimidad en nuestras comunidades, apoyar a las organizaciones comunitarias que ayudan a prevenir que ocurra la violencia en primer lugar, establecer las prioridades de aplicación y la medición de los resultados.
Holly Springs Man Sentenced to 14 Years in Prison on Child Pornography ChargesRead the Press Release
NEW BERN, N.C. – Wayne Kenneth Dare, 41, of Holly Springs was sentenced yesterday to 14 years in prison followed by 10 years supervised release for receipt of child pornography. Dare pled guilty to the offense.
According to court documents and other information presented in court, detectives with the Cary Police Department conducted a proactive investigation on a peer-to-peer sharing network trying to identify individuals trading and collecting child sexual abuse material. Detectives were able to download child pornography from the computer with an IP address associated with an address in Cary.
The detectives obtained a search warrant for the home associated with the IP address used to distribute child pornography. Dare lived at this address. When officers and agents arrived at the home to execute the search warrant, Dare was present. He agreed to speak to law enforcement and confessed to having received child pornography and continuing to possess it. Dare told law enforcement he had been viewing child pornography since 2009.
A forensic analysis was performed on his digital devices that were seized pursuant to the search warrant. Agents found 1,236 images and 488 videos of child sexual abuse material. Some of the images depicted toddlers and sadistic and masochistic conduct. At least two of the videos Dare possessed were over an hour in length.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after the sentencing was concluded. U.S. District Judge Louise W. Flanagan presided over the sentencing. Homeland Security Investigation, the Cary and Holly Springs Police Departments, and the United States Marshals Service investigated the case and Assistant U.S. Attorneys Charity Wilson and Jacob Pugh prosecuted the case.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:21-CR-430.
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Heart Butte admits strangling woman on Blackfeet Indian ReservationRead the Press Release
GREAT FALLS — A Heart Butte man accused strangling a woman in the Browning area on the Blackfeet Indian Reservation admitted to charges today, U.S. Attorney Jesse Laslovich said.
Brandon Thomas Weatherwax, 31, pleaded guilty to strangulation. Weatherwax faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for May 18. Weatherwax was detained pending further proceedings.
The government alleged in court documents that in October 2022, Weatherwax was at home with the victim, Jane Doe. Weatherwax assaulted Jane Doe for hours, including strangling her until she could no longer breathe. Photographs of Jane Doe after the assault showed bruising on her neck from being strangled.
Assistant U.S. Attorney Ryan G. Weldon is prosecuting the case, which was investigated by the FBI and Blackfeet Law Enforcement Services.
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Hardin County Man Guilty of Child Pornography ViolationsRead the Press Release
BEAUMONT, Texas – A Silsbee man has pleaded guilty to federal child pornography violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Michael Joseph Fontenot, 50, pleaded guilty to possession of child pornography today before U.S. District Judge Marcia A. Crone.
According to public information, Fontenot was found in possession of over 600 images of child pornography, including some images depicting a prepubescent minor engaging in sexual activity.
Fontenot faces up to 10 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (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 is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Rachel Grove.
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Fresno Man Indicted for Illegally Possessing AmmunitionRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Emmanuelle Padilla, 26, of Fresno, charging him with being a felon in possession of ammunition, United States Attorney Phillip A. Talbert announced.
According to court documents, Padilla was found in possession of ammunition on October 24, 2022. He has prior felony convictions for possessing controlled substances while armed and being a felon in possession of a firearm and he is prohibited from possessing firearms and ammunition.
This case was the product of an investigation by the Fresno Police Department and Federal Bureau of Investigation. Assistant United States Attorney Arin C. Heinz is prosecuting the case.
If convicted, Padilla faces a maximum statutory penalty of 15 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This 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.
Fourteen Firearms to be Forfeited as Convicted Felon Admits to Federal Firearm ChargeRead the Press Release
PROVIDENCE, R.I. – A California man who leaped into the Providence River in a bid to evade arrest pled guilty today in federal court in Providence to a charge of being a felon in possession of firearms; fourteen guns will be forfeited and destroyed as a result, announced United States Attorney Zachary A. Cunha.
The firearms were seized from James Darosa, 29, in February 2022, during an East Providence Police Department Special Investigations Unit (SIU) firearms investigation.
According to information presented to the court, members of the SIU established surveillance of a residence from which Darosa was seen exiting, placing a suitcase in the trunk of a vehicle, and entering the vehicle as a passenger. A short time later, East Providence Police initiated a traffic stop of the vehicle for a tinted window violation.
As officers approached the vehicle, Darosa got out of the rear passenger side and jumped off a bridge into the Providence River. With the assistance of Providence Police and Rhode Island State Police, Darosa was located along the shoreline and arrested. The suitcase that Darosa had placed in the trunk of the vehicle was found to contain 14 guns- thirteen handguns and one .22 caliber rifle.
According to court records, at the time of his arrest in February 2020, Darosa was serving a term of federal supervised release, having recently completed a term of incarceration of sixty months imposed in May 2016 in the U.S. District Court for the Eastern District of California on a conviction for distribution of methamphetamine.
Darosa, previously charged by way of indictment, today pleaded guilty in federal court to being a felon in possession of firearms. No plea agreement has been filed in this matter. Upon his conviction, Darosa must forfeit the fourteen firearms seized by East Providence Police.
Darosa is scheduled to be sentenced on April 5, 2023. The defendant’s sentence will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
The case is being prosecuted by Assistant United States Attorney Zechariah Chafee.
United States Attorney Cunha thanks the Bureau of Alcohol, Tobacco, Firearms and Explosives for their assistance in the investigation of the firearms seized in this matter, as well as the Rhode Island State Police, and the East Providence and Providence Police Departments for their investigation of this case and the apprehension of the defendant.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Former Judge Arrested for Bribery and Obstruction of JusticeRead the Press Release
WASHINGTON – A former local district court judge in Arkansas was arrested today in Little Rock on criminal charges related to his alleged solicitation of sex in exchange for agreeing to take action on a criminal case pending before his court.
According to court documents, Thomas David Carruth, 63, of Clarendon, was an elected judge of the Monroe County district court. In April 2022, Carruth allegedly solicited sex from the girlfriend of a defendant in exchange for expediting that defendant’s trial date. Carruth allegedly lied to FBI agents when questioned about the incident.
Carruth is charged by indictment with three counts of honest services wire fraud, three counts of using a facility in interstate commerce in furtherance of unlawful activity, one count of bribery, one count of making false statements, and one count of obstruction of justice. If convicted, Carruth faces up to 20 years in prison on the top counts.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Jonathan D. Ross for the Eastern District of Arkansas, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Special Agent in Charge James A. Dawson of the FBI Little Rock Field Office made the announcement.
The FBI Little Rock Field Office is investigating the case with the assistance of the Arkansas State Police.
Trial Attorney Lauren Britsch Slater of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney J. William Crow for the Eastern District of Arkansas are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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If you have questions, please call the Office of Public Affairs at 202-514-2007.
Former Judge Arrested for Bribery and Obstruction of JusticeRead the Press Release
A former local district court judge in Arkansas was arrested today in Little Rock on criminal charges related to his alleged solicitation of sex in exchange for agreeing to take action on a criminal case pending before his court.
According to court documents, Thomas David Carruth, 63, of Clarendon, was an elected judge of the Monroe County district court. In April 2022, Carruth allegedly solicited sex from the girlfriend of a defendant in exchange for expediting that defendant’s trial date. Carruth allegedly lied to FBI agents when questioned about the incident.
Carruth is charged by indictment with three counts of honest services wire fraud, three counts of using a facility in interstate commerce in furtherance of unlawful activity, one count of bribery, one count of making false statements, and one count of obstruction of justice. If convicted, Carruth faces up to 20 years in prison on the top counts.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Jonathan D. Ross for the Eastern District of Arkansas, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Special Agent in Charge James A. Dawson of the FBI Little Rock Field Office made the announcement.
The FBI Little Rock Field Office is investigating the case with the assistance of the Arkansas State Police.
Trial Attorney Lauren Britsch Slater of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney J. William Crow for the Eastern District of Arkansas are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former DSP Trooper Sentenced to Six Months Imprisonment for Civil Rights ViolationRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced today that former Delaware State Trooper Jamal Merrell, 32, of Newark, was sentenced today to six months in prison for federal civil rights violations. Chief U.S. Magistrate Judge Mary Pat Thynge pronounced the sentence.
According to court documents, Merrell stole various electronic items while on duty from TotalTransLogistics, an international reshipping company in New Castle, under the ruse that he was conducting an active fraud investigation. Merrell then sold the stolen items while in uniform and from his DSP patrol vehicle.
U.S. Attorney Weiss stated, “Mr. Merrell’s crimes are unacceptable. This country was founded on the protection of an individual’s civil rights and liberties. We task our police officers to uphold those rights and liberties. Instead, Merrell chose to routinely disregard his duties as an officer. This sentence serves a warning to police officers who choose to abuse their power.”
“Delaware State Troopers are entrusted to uphold the law and protect the public’s safety while safeguarding morals that are held near and dear to our hearts. In fact, we take an oath to do so. Although we will never be able to fully comprehend Mr. Merrell’s betrayal of trust to both the public and his former colleagues, one thing is certain, the women and men of this agency will continue to serve the citizens of this great state with honor and integrity,” said Delaware State Police Superintendent, Colonel Melissa Zebley.
“Law enforcement officers vow to uphold the rights of our citizens,” said Special Agent in Charge Thomas J. Sobocinski of the FBI's Baltimore field office. “Mr. Merrell’s actions are an egregious violation of public trust. His sentencing shows the FBI is committed to investigating allegations of criminal misconduct, no matter who the subject is or what position they hold in their community.”
The FBI and the Delaware State Police Internal Investigations Unit investigated the case. Assistant U.S. Attorney Kevin P. Pierce prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER.
Final defendant sentenced in gang-related South Georgia meth-trafficking conspiracyRead the Press Release
SAVANNAH, GA: The final sentence in a major methamphetamine trafficking operation signals the end of a prosecution that saw nearly three dozen defendants sent to prison after pleading guilty.
Kristin Sheppard, a/k/a “Kristin Shine,” a/k/a “K Shine,” 32, of Savannah, was sentenced 111 months in prison followed by five years of supervised release after pleading guilty to Conspiracy to Possess with Intent to Distribute and to Distribute 5 Grams or More of Methamphetamine, said David H. Estes, U.S. Attorney for the Southern District of Georgia.
Prior to Sheppard’s sentencing, Michael Brandon Sharpe, 46, of Pembroke, Ga., was sentenced to 210 months in prison followed by three years of supervised release after previously pleading guilty to Possession with Intent to Distribute 50 Grams or More of Methamphetamine, and Possession of a Firearm by a Convicted Felon, while William Hamilton, a/k/a “Hambone,” 42, of Guyton, Ga., was sentenced to 126 months in prison followed by five years of supervised release after previously pleading guilty to Conspiracy to Possess with Intent to Distribute and to Distribute 5 Grams or More of Methamphetamine.
There is no parole in the federal system.
“Our law enforcement partners built Operation Stranded Bandit on the foundation of prior investigations dismantling a network of drug traffickers operating inside and outside prisons to bring large quantities of methamphetamine to coastal Georgia,” said U.S. Attorney Estes. “Getting gun-carrying drug traffickers off our streets, particularly those with gang affiliations, is a vital part of protecting our communities from violent crime.”
Sheppard, Sharpe and Hamilton are among 35 defendants indicted in USA v. Baker et. al, dubbed Operation Stranded Bandit. Unsealed in December 2020, the indictment describes an investigation that grew from other major gang-related drug trafficking prosecutions in Operation Vanilla Gorilla and Operation Who’s Laughing Now, and targeted conspiracies to import illegal drugs from Mexico and route them through Atlanta and into the greater Savannah area. The investigations and prosecutions, coordinated under the Organized Crime Drug Enforcement Task Forces (OCDETF), determined that multiple criminal street gangs, including the Ghost Face Gangsters, collaborated from inside and outside prisons using contraband cell phones to arrange drug transportation, delivery and distribution throughout coastal Georgia.
Sheppard and Sharpe admitted to serving as a methamphetamine couriers and dealers, while Hamilton served as an armed bodyguard for other drug couriers. All three defendants have multiple prior felony convictions involving drugs.
Of the 35 defendants indicted in Operation Stranded Bandit, 34 pled guilty and were sentenced to terms of incarceration of up to 292 months in prison, while one defendant’s case was transferred to state court.
“This case brought down a significant methamphetamine distribution network operating in and around Savannah,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “The citizens of Savannah are no doubt safer because of this prosecution. I applaud the thorough investigation conducted by our federal, state, and local partners which resulted in 35 convictions and lengthy sentences in this case.”
“DEA’s involvement in dismantling this notoriously violent gang set is a prime example of how federal, state and local law enforcement partnerships work collaboratively to confront, engage and eliminate drug trafficking,” said Robert J. Murphy, Special Agent in Charge of the U.S. Drug Enforcement Administration’s Atlanta Field Division. “Agents left no stone unturned and pursued every investigative lead to ensure these criminals were brought to justice.”
“Illegal drugs and criminal street gangs have no place in Georgia,” said Georgia Bureau of Investigation Director Mike Register. “These defendants were part of a criminal enterprise that has been threatening the safety of communities for years. We will continue to work diligently along with our local and federal partners to investigate and dismantle drug trafficking organizations and criminal street gangs.”
The case was investigated by agencies including the ATF, the DEA, the GBI, and the Savannah-Chatham Counter Narcotics Team, the Jones County Sheriff’s Office, the Bryan County Sheriff’s Office, the Effingham County Sheriff’s Office, and the Richmond Hill Police Department, and prosecuted for the United States by Assistant U.S. Attorneys E. Greg Gilluly Jr. and Jennifer J. Kirkland.
Film Producer Pleads Guilty to Bank RobberyRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces that Nacoe Ray Brown (54, Baltimore, MD) has pleaded guilty to bank robbery and to violating the terms of his supervised release. Brown faces a maximum penalty of 20 years in federal prison for the bank robbery offense and up to 3 years’ imprisonment for violating the terms of his supervised release. A sentencing date has not yet been set.
According to the plea agreement and other court documents, Brown was previously convicted of robbing three banks in the Baltimore area in 2001. After a federal jury convicted him of the robberies, he was sentenced to 25 years in federal prison. In 2020, Brown was granted an early release from prison. Brown then began serving his term of supervised release under the U.S. Probation Office in Baltimore.
On June 28, 2022, while visiting Florida, Brown robbed the McCoy Federal Credit Union in Belle Isle. Wearing a baseball cap, sunglasses, a surgical style facemask, and plastic gloves, Brown passed a note to the teller threatening that he had a gun and demanding money. He fled the bank with $4,296 in stolen cash. Surveillance cameras captured Brown as he appeared to the teller during the robbery:
A witness watched Brown flee the bank and enter a nearby gas station where he had a change of clothes staged. The witness reported this to the Belle Isle Police Department, who quickly responded and located Brown at a hotel where he was staying. Police recovered the demand note and the stolen cash from Brown’s bag. They also recovered the disguise he had discarded in the restroom of the gas station.
After Brown was arrested, he told authorities that he committed the bank robbery because he was filming a movie in Florida and had run out of money to pay for the production.
This case was investigated by the Federal Bureau of Investigation and the Belle Isle Police Department. It is being prosecuted by Assistant United States Attorney Michael P. Felicetta.
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.
Federal Grand Jury Indicts Louisville Man for Possession of Machine GunRead the Press Release
Louisville, KY – A federal grand jury in Louisville, Kentucky, returned an indictment on December 21, 2022, charging a local man with illegally possessing a machine gun.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division made the announcement.
According to the indictment, Cameron Jaimes, 19, of Louisville, Kentucky, was charged with one count of illegal possession of a machine gun. Jaimes possessed or transferred a machine gun, that is a Glock Switch. A Glock Switch device allows a semi-automatic handgun to function as an automatic. A Glock Switch is defined as a machine gun under federal law.
Jaimes made his initial court appearance this week before a U.S. Magistrate Judge in the U.S. District Court for the Western District of Kentucky. If convicted, Jaimes faces a maximum sentence of 10 years in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors. There is no parole in the federal system.
This case is being investigated by the ATF with assistance from the Louisville Metro Department of Corrections.
Assistant U.S. Attorney Josh Porter is prosecuting this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Ex-Signal Peak Mine safety official admits conspiring to make false statement about mine injuryRead the Press Release
BILLINGS — The former mine safety director at the Signal Peak Energy LLC coal mine near Roundup today admitted to charges that he conspired to not report as required an incident in which a mine employee injured his fingers, resulting in partial amputation, U.S. Attorney Jesse Laslovich said.
Curtis Floyd, 47, of Billings, pleaded guilty to an information charging him with conspiracy to submit false statements in mine records. Floyd faces a maximum of five years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. A sentencing date will be set before U.S. District Judge Dana L. Christensen. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Floyd was released pending further proceedings.
The government alleged in court documents that in 2018, Floyd was the Director of Mine Safety at the Signal Peak Energy coal mine and was responsible for overseeing safety related accidents and injuries, ensuring that all safety-related incidents at the mine were properly reported in accordance with federal law. In early 2018, John Doe 1, an employee under Floyd’s area of responsibility, had his fingers crushed while loading mining materials. The injury eventually required partial amputation. As Floyd was taking John Doe 1 to the hospital, John Doe 1 received a phone call from Dale Musgrave, the former vice president of underground operations. Musgrave directed John Doe 1 to falsely claim that the injury was unrelated to his work at the mine. Musgrave also said he would make it worth John Doe’s while. Floyd told John Doe 1 he would support whatever decision was made. John Doe 1 eventually agreed to not report the incident. Both Floyd and John Doe 1 subsequently admitted to investigators that this occurred. Floyd and Musgrave were required to complete a U.S. Department of Labor Mine Safety and Health Administration Mine Accident, Injury and Illness report. They never completed or submitted the form for this incident. They also failed to report John Doe 1 as an “MSHA reportable injury or illness” on another MSHA quarterly mine employment and coal production report.
This prosecution was part of a broad corruption investigation into Signal Peak Energy’s management and operations that resulted in not only misdemeanor convictions of the company for willful violation of health and safety standards, but also in individual convictions and charges for some former mine officials and associates for embezzlement, tax evasion, bank fraud, money laundering, drugs and firearms violations. Musgrave was sentenced to probation and fined $20,000 for his conviction in the case.
Assistant U.S. Attorneys Colin M. Rubich, Zeno B. Baucus and Timothy Tatarka are prosecuting the case, which was investigated by IRS, FBI and Environmental Protection Agency.
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Everett Man Pleads Guilty to Armed RobberyRead the Press Release
BOSTON – An Everett man pleaded guilty today to committing the February 2021 armed bank of a TD Bank branch in Allston.
Jamaine Howell, 36, pleaded guilty to one count of bank robbery and one count of using and carrying a firearm during and in relation to, and possessing a firearm in furtherance of, a crime of violence. U.S. District Court Judge Richard G. Stearns scheduled sentencing for May 10, 2023. Howell was charged by criminal complaint in March 2021.
On Feb. 7, 2021, Howell entered a branch of TD Bank on Commonwealth Avenue in Allston and handed a demand note and a plastic bag to the teller. Howell threatened the teller and stated that he had a gun. Howell then threatened two bank customers and displayed a firearm. After taking the plastic bag –containing approximately $5,900 – from the teller, Howell instructed one of the customers to leave the bank with him. After walking about a block with Howell, the customer managed to flee while Howell was distracted.
Later that week, police received a report that Howell brandished a firearm at a guest at a hotel in Sharon. On Feb. 16, 2021, police officers arrested Howell, and found him armed with a loaded .45 caliber Ruger handgun. Police also found a loaded semi-automatic shotgun in a vehicle that had previously been rented to Howell.
The charge of bank robbery provides for a sentence of up to 25 years in prison, up to five years of supervised release and a fine of up to $250,000. The charge of using a firearm in furtherance of a crime of violence provides for an additional sentence of five years to be served consecutively to any other sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. The Boston, Sharon and Lynn Police Departments provided valuable assistance with the investigation. Assistant U.S. Attorney Charles Dell’Anno of Rollins’ Major Crimes Unit is prosecuting the case.
Doddridge County man who engaged in shootout with police indicted on federal gun chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Doddridge County, West Virginia, man was indicted on federal firearm charges after engaging in a shootout with law enforcement last spring.
Richard Edward America, III, age 45, of Salem, was charged yesterday by a Clarksburg grand jury with illegally possessing a small arsenal of weapons despite having a prior conviction for domestic violence. He was also indicted for possessing silencers that were unregistered and lacked serial numbers as required by law.
According to court documents, America fired shots at officers who were attempting to execute a search warrant at his house on May 5, 2022. Officers were there because they suspected that America had firearms on his property despite his prior conviction. America fled the scene but was later apprehended. Officers reported finding eleven firearms, two silencers, and assorted ammunition. Among the firearms recovered, officers seized an assault-style rifle in the area near where America fired shots at law enforcement.
“Oftentimes the most dangerous individuals encountered by law enforcement are those with histories of domestic violence,” said United States Attorney William Ihlenfeld. “We will continue to work with our state and local partners to bring federal charges whenever possible against gun-carrying domestic abusers.”
America is being held in the North Central Regional Jail and will appear in federal court on the charges in the near future.
The investigation was led by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the West Virginia State Police; the Doddridge County Sheriff’s Office; and the Salem Police Department.
The case is being handled by Assistant U.S. Attorney Sarah Wagner for the government.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Digital Advertising Business Owner and Operator Sentenced to Prison for $5 Million Ponzi SchemeRead the Press Release
LAS VEGAS – A Las Vegas business owner and operator who pleaded guilty to wire fraud was sentenced yesterday by U.S. District Judge Jennifer A. Dorsey to 34 months in prison followed by two years of supervised release for fraudulently soliciting more than $5 million in investments for his digital advertisement business.
According to court documents, Robert Cortez Marshall, 43, operated a Ponzi scheme between January 2014 and April 2015 by fraudulently soliciting over $5 million for his business R.B.J. Generational Wealth Management LLC d/b/a Adz on Wheelz from more than 200 unwitting investors. He devised a scheme to defraud victims by falsely claiming that: (1) Adz on Wheelz owned and operated a fleet of luxury vehicles that could be customized for digital advertising; (2) Adz on Wheelz had already received millions of dollars in contracts from advertisers; (3) investors would receive a guaranteed weekly royalty payment; and (4) investors could cancel at any time or receive a refund of their investment.
In reality, Marshall would use money solicited from new investors to make the “royalty payments” owed to prior investors. He also transferred investor funds to other accounts under his control and used investor money for his own personal expenses. Through this scheme, investors lost approximately $3.5 million.
“The defendant wined and dined his investors, and he promised annual returns of more than 200% on investments,” said U.S. Attorney Jason M. Frierson for the District of Nevada. “The U.S. Attorney’s Office is committed to prosecuting individuals who take advantage and defraud others for profit.”
“Financial crimes like Ponzi schemes may not be violent, but they certainly are not victimless,” said Special Agent in Charge Spencer L. Evans for the FBI. “Under the guise of an established business Mr. Marshall solicited investments from individuals and secured their trust, swindling more than 200 victims out of more than $5 million for his personal benefit. The FBI will continue to work with our partners to investigate financially devastating schemes and seek justice for victims of fraud.”
The case was investigated by the FBI. Assistant U.S. Attorneys Jim Fang and Tony Lopez prosecuted the case.
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