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Wednesday 9 November 2022
Richmond Man Indicted in Connection with Attempted Kidnapping and Assault at Pelosi ResidenceRead the Press Release
SAN FRANCISCO – A federal grand jury returned an indictment today charging a Richmond man with assault and attempted kidnapping in connection with the break in at the Pelosi residence on Oct. 28 in San Francisco.
The indictment supersedes the federal criminal complaint filed on Oct. 31.
According to the indictment, David DePape, 42, was arrested on Oct. 28 inside the Pelosi residence by San Francisco Police Department (SFPD) police officers responding to a 911 call from Paul Pelosi, husband of U.S. House of Representatives Speaker Nancy Pelosi. Paul Pelosi later described to police that he had been asleep when DePape, whom he had never seen before, entered his bedroom looking for Nancy Pelosi.
According to the indictment, minutes after the 911 call, two police officers responded to the Pelosi residence where they encountered Paul Pelosi and DePape struggling over a hammer. Officers told the men to drop the hammer, and DePape allegedly gained control of the hammer and swung it, striking Pelosi in the head. Officers immediately restrained DePape, while Pelosi was injured on the ground. As set forth in the indictment, once DePape was restrained, officers secured a roll of tape, white rope, a second hammer, a pair of rubber and cloth gloves, and zip ties from the crime scene, where officers also observed a broken glass door to the back porch.
DePape is charged with one count of assault upon an immediate family member of a United States official with the intent to retaliate against the official on account of the performance of official duties, which carries a maximum sentence of 30 years in prison. DePape is also charged with one count of attempted kidnapping of a United States official on account of the performance of official duties, which carries a maximum sentence of 20 years in prison.
U.S. Attorney Stephanie M. Hinds, Special Agent in Charge Robert K. Tripp of FBI San Francisco, and Chief J. Thomas Manger of the U.S. Capitol Police made the announcement.
The charges contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty in a court of law.
The Special Prosecutions Section of the U.S. Attorney’s Office for the Northern District of California is prosecuting the case. FBI San Francisco, the U.S. Capitol Police, and the San Francisco Police Department are investigating the case.
Rapid City Man Indicted on Firearm ChargesRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Possession of an Unregistered Firearm and Possession of a Firearm with an Obliterated Serial Number.
Christopher Fullen, age 29, was indicted in October of 2022. He appeared before U.S. Magistrate Judge Daneta Wollmann on November 8, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
In April of 2022, in Rapid City, Fullen was found in possession of a Sturm, Ruger, & Company Incorporated, model 10/22, .22 Long Rifle caliber, semi-automatic rifle with an obliterated serial number and a barrel length of less than 16 inches, which was found after Fullen came into contact with law enforcement.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The charges are merely an accusation and Fullen is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Pennington County Sheriff’s Office, and the South Dakota Highway Patrol. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
Fullen was released pending trial. A trial date has not been set.
Providence Man Sentenced for Fraudulently Applying for COVID Unemployment BenefitsRead the Press Release
PROVIDENCE, R.I. – A Providence man who filed a fraudulent application for unemployment benefits under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the Pandemic Unemployment Assistance (PUA) program, and received more than $7,000 in ill-gotten payments, was sentenced on Tuesday to thirty days of incarceration to be followed by three months home confinement, announced United States Attorney Zachary A. Cunha and Rhode Island Attorney General Peter F. Neronha.
Deeshawn Gadson, 32, pled guilty in January to a charge of wire fraud.
In April 2020, Gadson, who lived and worked in Rhode Island, submitted online applications to the Rhode Island Department of Labor and Training (RIDLT) for benefits that had been made available by the CARES Act. In May 2020, Gadson began receiving benefits from RIDLT. He received approximately $20,302 in unemployment benefits.
Shortly after he began receiving these benefit payments from the RIDLT, Gadson submitted a fraudulent online application to the Arizona State Department of Economic Security, falsely stating that he lived and worked in Arizona. As a result, Gadson was paid $7,170 in PAU program benefits that he was not legally entitled to receive.
Gadson was sentenced today by U.S. District Court Judge William E. Smith to thirty days of incarceration to be followed by three years of federal supervised release, with the first three months to be served in home confinement with electronic monitoring. Gadson was also ordered to pay $7,170 in restitution to the Arizona State Department of Economic Safety.
This case, as well as other instances of criminal activity related to fraudulent applications for pandemic-related unemployment insurance benefits are being investigated jointly by the FBI, Rhode Island State Police, and the U.S. Department of Labor – Office of Inspector General. Cases are jointly reviewed, charged, and prosecuted by a team of prosecutors that include Assistant U.S. Attorneys Denise M. Barton, Stacey P. Veroni, and G. Michael Seaman, and Rhode Island Assistant Attorney General John M. Moreira, chief of the Rhode Island Attorney General’s Public Integrity Unit.
Rhode Islanders who believe their personal identification has been stolen and used to fraudulently obtain unemployment benefits are urged to contact the Rhode Island State Police at [email protected] or the FBI Providence office at (401) 272-8310.
On May 17, 2021, the United States Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID- 19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Previously convicted felon sentenced to 15 years in prison for federal drug trafficking, firearms offensesRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that Gabriel “Karma” Blea was sentenced on Nov. 8 to a term of 15 years in prison. Blea, 25, of Albuquerque, pleaded guilty on July 13 to conspiracy to distribute methamphetamine, possession with intent to distribute 50 grams and more of methamphetamine, and possessing a firearm during and in furtherance of a drug trafficking crime.
In May of 2021, Blea set up a deal to trade approximately half a pound of methamphetamine for five firearms. Unbeknownst to Blea at the time, the other parties in the transaction were undercover agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). On May 5, 2021, in Albuquerque, Blea, driven by his co-defendant, Gabriel Villasenor, arrived at the arranged meeting location with the methamphetamine in a backpack and a loaded .45 caliber pistol in his waistband. Agents took Blea into custody, and apprehended Villasenor after a brief chase.
In his plea agreement, Blea admitted that on June 4, 2021, he fled from federal custody in an effort to avoid prosecution and sentencing in this case.
On Sept. 2, Villasenor pleaded guilty to conspiracy to distribute methamphetamine and being a felon in possession of a firearm and ammunition. As a previously convicted felon, Villasenor cannot legally possess a firearm or ammunition. By the terms of his plea agreement, Villasenor faces 92 to 115 months in prison. Sentencing is scheduled for Jan. 12, 2023.
Upon his release from prison, Blea will be subject to five years of supervised release.
ATF and the FBI Albuquerque Field Office investigated this case. Assistant United States Attorney Jaymie L. Roybal prosecuted the case.
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Phoenix Woman Sentenced to Prison for Paycheck Protection Loan FraudRead the Press Release
PHOENIX, Ariz. – Celestine Coletta Strong, 46, of Phoenix, Arizona, was sentenced October 31, 2022, by United States District Court Judge Susan M. Brnovich to five years in prison. The court also ordered Strong to pay $327,448 in restitution and surrender her 2016 Mercedes-Benz E400 and 2018 Dodge Challenger. Strong previously pleaded guilty to one count of Conspiracy to Commit Wire Fraud.
Strong fraudulently obtained loans from the CARES Act Paycheck Protection Program, a program designed to help small businesses meet their payroll obligations during the COVID-19 pandemic. Strong conspired to submit loan applications with falsified employee and wage information, fake bank statements, and other false information in an attempt to obtain 17 different loans totaling more than $3.5 million in loan proceeds. She fraudulently obtained approximately $400,000 and used the proceeds to purchase, among other items, luxury cars.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts.
Homeland Security Investigations conducted the investigation in this case, with assistance from the Treasury Inspector General for Tax Administration and the Small Business Administration Office of the Inspector General. Assistant U.S. Attorney Kevin M. Rapp, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-21-00335-PHX-SMB
RELEASE NUMBER: 2022-203_Strong# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Owner of Cryptocurrency Company Charged with COVID-19 Paycheck Protection Program FraudRead the Press Release
A Dallas man who allegedly devised a scheme to defraud a pandemic-era financial program out of hundreds of thousands of dollars has been federally charged, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
John Corbin Corona, 35, was indicted on October 5, 2022, on one count of wire fraud and one count of money laundering. He was arrested on Monday and made his initial appearance before U.S. Magistrate Judge Toliver today.
“As millions of small business owners grappled with the fallout from the pandemic, this defendant raked in a couple hundred thousand bucks at his fellow citizens’ expense,” said U.S. Attorney Chad Meacham. “The Paycheck Protection Program, funded by taxpayers, was designed to help small businesses stay afloat during the pandemic. The Justice Department will relentlessly pursue those who defrauded the PPP.”
According to the indictment, Mr. Corona – the owner of HODL LLC, a cryptocurrency company operating a purported bitcoin pooled investment fund known as Bitcoin Bank America – fraudulently applied for two Paycheck Protection Program (PPP) loans totaling over $413,000 through BlueVine Inc. and FundBox, Inc., financial technology companies that partnered with third-party PPP lenders, including Celtic Bank.\
According to the indictment, Mr. Corona inflated HODL LLC’s payroll and misrepresented his business’s number of employees in the PPP loan applications that he submitted to BlueVine and Fundbox. In support of the PPP loan applications, he also submitted IRS Form 941s (Employer’s Quarterly Federal Tax Return) that allegedly contained false information about his business.
The indictment also alleges that after Celtic Bank deposited $206,902 in PPP loan proceeds into Mr. Corona’s bank account, Mr. Corona transferred over $155,000 in PPP loan funds to Coinbase Inc., a cryptocurrency exchange platform.
An indictment is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Corona is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to 20 years in federal prison on the count of wire fraud, and 10 years on the money laundering count. Upon conviction, he will be required to forfeit the financial proceeds of the scheme or property traceable to it.
The FBI’s Wichita Falls and Dallas field offices conducted the investigation. Assistant U.S. Attorney Fabio Leonardi is prosecuting the case.
The Paycheck Protection Program (PPP) was authorized under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law enacted on March 29, 2020, to provide emergency financial assistance to Americans suffering economic hardship due to the COVID-19 pandemic. The PPP provided forgivable loans to small businesses to cover payroll, rent, and certain -other expenses.
Omega Healthcare Investors, Inc. Agrees to Pay $3 Million to Settle Civil False Claims Act AllegationsRead the Press Release
AUSTIN – Omega Healthcare Investors, Inc., as successor-in-interest to MedEquities Realty Trust, Inc. (MedEquities), has agreed to pay $3 million to resolve allegations that MedEquities violated the False Claims Act by submitting false claims to the Medicare and Medicaid programs. MRT of Lakeway TX – ACH, LLC (MRT-Lakeway) and Lakeway Realty, LLC (Lakeway Realty) are also parties to the settlement agreement.
The United States alleges that MedEquities paid kickbacks to physicians to induce them to refer patients to a hospital developed by Lakeway Regional Medical Center, LLC (LRMC). MedEquities offered the physicians a low-risk, high-reward investment in Lakeway Realty, a joint venture formed by MRT-Lakeway to purchase the hospital and lease it back to LRMC. The government contends that claims for reimbursement based on these referrals and submitted by LRMC to the Medicare and Medicaid programs between March 2, 2015 and August 31, 2016 were unlawful under the federal Anti-Kickback Statute.
The allegations in this case were initially brought by Robert Van Boven, M.D. and Sharon Van Boven in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery. The Van Boven’s qui tam suit remains under seal, subject to an order of the Court permitting the United States to disclose this settlement.
The United States previously announced a settlement with LRMC to resolve allegations regarding the hospital’s role in the alleged kickback scheme.
U.S. Attorney Ashley C. Hoff of the Western District of Texas made the announcement and thanked the Department of Health and Human Services Office of Inspector General and the Civil Medicaid Fraud Division of the Office of the Attorney General of Texas for their assistance.
Assistant U.S. Attorneys Thomas Parnham and Samuel Shapiro represented the United States in the settlement.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
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Old Saybrook Contractor Pleads Guilty to Tax EvasionRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Joleen D. Simpson, Special Agent in Charge of IRS Criminal Investigation in New England, announced that DIMITRIOS KASSIMIS, also known as Jimmy Kassimis, 58, of Old Saybrook, waived his right to be indicted and pleaded guilty today before U.S. District Judge Omar A. Williams in Hartford to one count of tax evasion.
According to court documents and statements made in court, Kassimis owns and operates various entities related to his construction business, including Allstate Contracting Group and JRC Renovations. Between 2018 and 2021, Kassimis received substantial income from his businesses but did not file any personal or business federal income tax returns, and also did not file any employment tax returns for his businesses. The investigation revealed that Kassimis did not have any personal bank accounts and paid all of his personal expenses through his business bank accounts, and also made cash withdrawals from the business accounts at casinos for personal expenses. He also cashed checks made payable to his businesses at a check cashing business in New York and failed to report that income. In addition, he did not issue IRS Forms 1099 or W-2 to his employees and paid at least some employees in cash.
The tax loss to the IRS for the 2018 through 2021 tax years was $233,086.87.
At sentencing, which is not scheduled, Kassimis faces a maximum term of imprisonment of five years.
This investigation has been conducted by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney David T. Huang.
Northern Michigan Man Sentenced for Leaving Pipe Bombs at Cell Phone Stores as Part of a $5 Million Extortion PlotRead the Press Release
BAY CITY – A Whittemore, Michigan, resident was sentenced today to 75 months on two separate criminal cases related to a $5 million extortion plot using shrapnel-filled pipe bombs the defendant placed outside cellphone stores in Cheboygan, and Sault Ste Marie, Michigan, announced Eastern District of Michigan United States Attorney Dawn N. Ison and Western District of Michigan United States Attorney Mark Totten. Whittemore and Cheboygan are in the Eastern District and Sault Ste. Marie is in the Western District.
Ison and Totten were joined in the announcement by Special Agent in Charge James A. Tarasca, Federal Bureau of Investigation, Detroit Division.
John Douglas Allen, 76, was sentenced before United States District Judge Thomas Ludington in Bay City, Michigan. Allen had pleaded guilty to extortion by wrongful use of force, violence, and fear, as well as two counts of attempted destruction of a building using an explosive device in July.
According to court records, Allen admitted that on September 15, 2021, at approximately 7:36 pm, he placed a United States Postal Service (USPS) box with black tape on it and a wire coming out of it outside an AT&T Store in Sault Ste. Marie, Michigan. Later that evening, Allen placed another USPS box with black tape on it and a wire coming out of it outside of a Verizon Store in Cheboygan, Michigan. The two devices were examined by the FBI laboratory Explosive Unit, which concluded that the two devices were improvised explosive devices (IEDs), also commonly referred to as pipe bombs. Both pipe bombs contained shrapnel. In addition, threat notes demanding $5 million were placed on cell phone towers in the area as well as mailed to the telecommunications companies. Based on video footage taken from the cell phone stores and other nearby businesses, as well as an exhaustive investigation by law enforcement, agents were able to determine that Allen was the person who left the packages outside of the stores. The defendant claimed that he was motivated by what he viewed as immoral content being spread on the internet and cellphones.
In addition, Allen pleaded guilty to placing letters containing threats aimed at telecommunications providers at cell towers located in the Upper Peninsula.
“This defendant sought to use terror, threats, and bombs to scare ordinary people going about their business,” stated U.S. Attorney Ison. “We will not tolerate individuals who use fear to try to line their own pockets.”
“A top priority for my office is ensuring the safety of our communities,” said U.S. Attorney Mark “Totten. “Allen’s actions in placing pipe bombs in front of commercial businesses endangered not only the lives of innocent individuals, but also our first responders and the bomb technicians who rendered those devices safe. My office will continue to aggressively pursue individuals for crimes like this that put our first responders and communities at risk.”
“Today’s sentence demonstrates the gravity of the defendant’s egregious behavior to place the lives of innocent citizens at risk in order to extort money from companies,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “This coordinated effort by local, state, tribal, and federal law enforcement agencies across Michigan helped protect communities from being further victimized and sends a clear message that crime does not pay.”
This case was investigated by special agents, intelligence analysts, troopers, deputies, and officers from the FBI, Michigan State Police, Cheboygan County Sheriff's Office, Cheboygan Police Department, Sault Ste. Marie Police Department, Sault Ste. Marie Tribal Police, the US Coast Guard Investigative Service, US Border Patrol and ATF.
Assistant U.S. Attorneys J. Michael Buckley, Jerome Gorgon, Christopher O’Connor and Theodore Greeley are prosecuting the case in their respective districts.
Northern Michigan Man Sentenced for Leaving Pipe Bombs at Cell Phone Stores as Part of A $5 Million Extortion PlotRead the Press Release
BAY CITY – A Whittemore, Michigan, resident was sentenced today to 75 months on two separate criminal cases related to a $5 million extortion plot using shrapnel-filled pipe bombs the defendant placed outside cellphone stores in Cheboygan, and Sault Ste Marie, Michigan, announced Eastern District of Michigan United States Attorney Dawn N. Ison and Western District of Michigan United States Attorney Mark Totten. Whittemore and Cheboygan are in the Eastern District and Sault Ste. Marie is in the Western District.
Ison and Totten were joined in the announcement by Special Agent in Charge James A. Tarasca, Federal Bureau of Investigation, Detroit Division.
John Douglas Allen, 76, was sentenced before United States District Judge Thomas Ludington in Bay City, Michigan. Allen had pleaded guilty to extortion by wrongful use of force, violence, and fear, as well as two counts of attempted destruction of a building using an explosive device in July.
According to court records, Allen admitted that on September 15, 2021, at approximately 7:36 pm, he placed a United States Postal Service (USPS) box with black tape on it and a wire coming out of it outside an AT&T Store in Sault Ste. Marie, Michigan. Later that evening, Allen placed another USPS box with black tape on it and a wire coming out of it outside of a Verizon Store in Cheboygan, Michigan. The two devices were examined by the FBI laboratory Explosive Unit, which concluded that the two devices were improvised explosive devices (IEDs), also commonly referred to as pipe bombs. Both pipe bombs contained shrapnel. In addition, threat notes demanding $5 million were placed on cell phone towers in the area as well as mailed to the telecommunications companies. Based on video footage taken from the cell phone stores and other nearby businesses, as well as an exhaustive investigation by law enforcement, agents were able to determine that Allen was the person who left the packages outside of the stores. The defendant claimed that he was motivated by what he viewed as immoral content being spread on the internet and cellphones.
In addition, Allen pleaded guilty to placing letters containing threats aimed at telecommunications providers at cell towers located in the Upper Peninsula.
“A top priority for my office is ensuring the safety of our communities,” said U.S. Attorney Mark “Totten. “Allen’s actions in placing pipe bombs in front of commercial businesses endangered not only the lives of innocent individuals, but also our first responders and the bomb technicians who rendered those devices safe. My office will continue to aggressively pursue individuals for crimes like this that put our first responders and communities at risk.”
“This defendant sought to use terror, threats, and bombs to scare ordinary people going about their business,” stated U.S. Attorney Ison. “We will not tolerate individuals who use fear to try to line their own pockets.”
“Today’s sentence demonstrates the gravity of the defendant’s egregious behavior to place the lives of innocent citizens at risk in order to extort money from companies,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “This coordinated effort by local, state, tribal, and federal law enforcement agencies across Michigan helped protect communities from being further victimized and sends a clear message that crime does not pay.”
This case was investigated by special agents, intelligence analysts, troopers, deputies, and officers from the FBI, Michigan State Police, Cheboygan County Sheriff's Office, Cheboygan Police Department, Sault Ste. Marie Police Department, Sault Ste. Marie Tribal Police, the US Coast Guard Investigative Service, US Border Patrol and ATF.
Assistant U.S. Attorneys J. Michael Buckley, Jerome Gorgon, Christopher O’Connor and Theodore Greeley are prosecuting the case in their respective districts.
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North Carolina Man Convicted in Scheme to Use Stolen Identities to Obtain COVID-19 Relief MoniesRead the Press Release
New Bern, N.C. – Dexter Duncan, 24, pleaded guilty yesterday to conspiracy to commit money laundering with respect to the fraudulent proceeds of Economic Injury Disaster Loan (“EIDL”) COVID-19 loans guaranteed by the Small Business Administration. Duncan faces up to 20 years in prison when sentenced next year in addition to restitution and a potential fine.
“This defendant used stolen identities to pilfer money our nation set aside to help small businesses crippled by the pandemic,” said U.S. Attorney Michael Easley. “He squirreled the funds into bank accounts under his control for his personal benefit and or under the control of his co-conspirators. My office will continue to partner with law enforcement at every level to hold COVID fraudsters accountable for their misuse and abuse of taxpayer dollars.”
As part of his scheme to defraud, Duncan used stolen personal identities to apply for EIDL benefits. Each loan application submitted by Duncan contained false statements, misrepresentations and omissions related to, among other things, income, employment, and claimed business entities. Duncan signed various financial documents, including loan and security agreements, using stolen identities that Duncan obtained from a co-conspirator. Duncan deposited the loan funds into his personal bank account and other bank accounts within his control. In total, Duncan received $180,900 in fraudulent loan proceeds.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after United States Magistrate Judge Robert B. Jones, Jr. accepted the plea. Internal Revenue Service (IRS) Criminal Investigation is leading the investigation. Special Assistant U.S. Attorney Lisa K. Labresh and Assistant U.S. Attorney Aakash Singh are prosecuting the case.
The Eastern District of North Carolina’s COVID Task Force is a part of an effort to coordinate COVID-related fraud investigations and prosecutions in Eastern North Carolina. On May 17, 2021, the United States Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
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-00196-FL.
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Niagara Falls Woman Pleads Guilty to Stealing Hundreds of Thousands of Dollars from Investment Firm ClientsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Jennifer Campbell, 47, of Niagara Falls, NY, pleaded guilty to wire fraud before U.S. District Judge Lawrence J. Vilardo. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Douglas A. C. Penrose, who is handling the case, stated that Campbell was employed as the Office Manager and Chief Compliance Officer at an investment advisory firm based in Buffalo, with access to client accounts. Between November 2018, and May 2021, Campbell used this access to steal over $500,000 from several clients and from the firm itself, primarily by writing checks from client accounts, forging the signatures of either the client or a principal at the firm, and then depositing the checks into her own personal account.
Campbell took various steps to conceal her theft. In one instance, she sent a victim a falsified account statement that purported to show an account balance of approximately $148,000, when in fact the account at the time had a balance of only $93. In another instance, Campbell took funds from a client and transferred them to the bank account of one of her earlier victims. Finally, Campbell gained access to the email accounts of the firm’s principals and diverted emails that they received from anti-money laundering and financial crimes personnel at the firm’s broker-dealer, who had begun to raise questions about some of the transactions that Campbell had engaged in. In an effort to put off these inquiries, Campbell sent several emails using the email account of a firm principal. In these emails, Campbell made various false statements and submitted fake documentation in an effort to make the transactions appear legitimate.
The plea is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge Thomas Fattorusso, and the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Michael Stansbury.
Sentencing is scheduled for February 27, 2023, at 1:00 p.m. before Judge Vilardo
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New Orleans Man Sentenced for Theft of Mail and Unlawful Possession of a Postal KeyRead the Press Release
NEW ORLEANS, LA – United States District Judge Susie Morgan sentenced KYLE ARMSTRONG, 20, of New Orleans, Louisiana, on November 8, 2022 to three (3) years probation for theft or receipt of stolen mail matter in violation of Title 18, United States Code, Sections 1708 and 2 and with unlawful possession of a postal key in violation of Title 18, United States Code, Sections 1704 and 2, announced U.S. Attorney Duane A. Evans.
In July, 2022, ARMSTONG was indicted for theft or receipt of stolen mail matter and unlawful possession of a postal key
District Judge Morgan sentenced ARMSTRONG to three (3) years probation. She also ordered that ARMSTRONG pay a $200 mandatory special assessment fee.
U. S. Attorney Evans praised the work of the U.S. Postal Service Inspection Service and the Jefferson Parish Sheriff’s Office in investigating this matter. The case is being prosecuted by U. S. Attorneys Rachal Cassagne and Dall Kammer.
Navajo Nation Women Sentenced to Prison for Child AbuseRead the Press Release
SALT LAKE CITY – Teresa Red Bird, 52, and her daughter, Ocianna Red Bird, 23, both of Montezuma Creek, and enrolled members of the Navajo Nation living within the boundaries of the Navajo Nation, were sentenced to federal prison after pleading guilty to felony child abuse within Indian Country. Teresa Red Bird was sentenced to 10 months in federal prison followed by 36 months of supervised release. Ocianna Red Bird was sentenced to six months in federal prison followed by 24 months of supervised release.
According to the information contained in the plea agreements, Teresa Red Bird admitted that on numerous occasions, she knowingly and intentionally hit a 14-year-old victim who was living with her and who was under her care; that she failed to ensure that the victim ate properly; and that she caused serious physical injury to the victim. Ocianna Red Bird admitted to knowingly and intentionally hitting, confining, and withholding food, from the same 14-year-old victim who was living in her mother’s home. Ocianna Red Bird also admitted that she was aware that her conduct caused serious physical injury to the victim.
This case was prosecuted by Assistant United States Attorney Tad May from the District of Utah and was investigated by the Navajo Nation Police and the FBI.
Naschitti man charged with involuntary manslaughter in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Donavan Henry made an initial appearance in federal court on Nov. 8 facing a charge of involuntary manslaughter in Indian Country. Henry, 39, of Naschitti, New Mexico, and an enrolled member of the Navajo Nation, will remain on conditions of release pending a preliminary hearing scheduled for Nov. 14.
According to a criminal complaint, on Nov. 2, Henry allegedly was driving east on Route 134 in Sheep Springs, New Mexico, with two passengers when he lost control of his vehicle. The vehicle went off the road into shrubs, rocks and boulders. The vehicle flipped when it hit a boulder, and all three passengers were ejected from the vehicle. A Navajo Police officer arrived to find Henry underneath the vehicle and his passengers lying on the ground near the vehicle.
Henry was airlifted to San Juna Regional Medical Center. The passenger from the front seat, John Doe 1, who is also a member of the Navajo Nation, was placed in an ambulance bound for Northern Navajo Medical Center. The passenger from the back seat, John Doe 2, was placed in an ambulance going to Gallup Indian Medical Center. John Doe 1 died of his injuries while in the back of the ambulance before it left the scene.
Henry’s blood alcohol content allegedly was .16.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Henry faces up to eight years in prison.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and the New Mexico Office of the Medical Investigator. Assistant United States Attorney Zachary Jones is prosecuting the case.
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Missouri Man Charged in Bank RobberiesRead the Press Release
KANSAS CITY, KAN. – A Missouri man has been charged by criminal complaint with one count of bank robbery and one count of attempted bank robbery.According to the complaint, Lucas John Royce Spies, 27, of Harrisonville, Missouri, allegedly used an intimidating note in an attempt to rob Bank Midwest on West 119th Street in Olathe, Kansas, on November 7, 2022. Spies is also accused of robbing U.S. Bank on West 119th Street in Olathe, Kansas, a short time later the same day.
The Federal Bureau of Investigation (FBI) and the Olathe Police Department are investigating the case.
Assistant U.S. Attorney Kim Flannigan is prosecuting the case.
A complaint or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Mission Man Charged with Failure to Register as a Sex OffenderRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Jeffery Leo Larvie, age 40, was indicted in November of 2022. He appeared before U.S. Magistrate Judge Veronica L. Duffy on November 9, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that Larvie, who had previously been convicted of a sex crime and required to register under the Sex Offender Registration and Notification Act, failed to do so between August 5, 2022, and October 20, 2022.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
The charge is merely an accusation and Larvie is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Larvie was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Meridian Man Sentenced to 37 Months in Prison for Possession with Intent to Distribute CocaineRead the Press Release
Jackson, Miss. - A Meridian man was sentenced today to three years and one month in prison for possession with intent to distribute cocaine, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
According to court documents, James Arther Williams, 71, was found in possession of crack cocaine, which he intended to sell, in his residence by officers of the Meridian Police Department on August 28, 2019, during the execution of a search warrant.
The Meridian Police Department and the FBI investigated the case.
Assistant U.S. Attorney Charles W. Kirkham prosecuted the case.
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.
Maryland Nuclear Engineer and his wife sentenced for Espionage-Related OffensesRead the Press Release
WASHINGTON – A Maryland man and his wife were sentenced today for conspiracy to communicate Restricted Data related to the design of nuclear-powered warships.
Jonathan Toebbe, 44, of Annapolis, was sentenced today to 19 years and 4 months of incarceration and fined $45,700. His wife, Diana Toebbe, 46, was sentenced to 21 years and 10 months of incarceration and fined $50,000. The Toebbes pleaded guilty to the conspiracy in August 2022.
“If not for the remarkable efforts of FBI agents, the sensitive data stolen by Mr. Toebbe could have ended up in the hands of an adversary of the United States and put the safety of our military and our nation at risk,” said U.S. Attorney Ihlenfeld. “The FBI keeps American citizens safe from enemies both foreign and domestic and this case is an excellent reminder of their important work.”
“The Toebbes were willing to compromise the security of the nation by selling information related to naval nuclear propulsion systems. They are now being held accountable for their actions,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “The FBI and our federal partners have an unwavering commitment to protect U.S. secrets and will continue to aggressively investigate and expose espionage activities conducted on U.S. soil.”
According to court documents, at the time of his arrest, Jonathan Toebbe was an employee of the Department of the Navy who served as a nuclear engineer and was assigned to the Naval Nuclear Propulsion Program, also known as Naval Reactors. He held an active national security clearance through the Department of Defense, giving him access to “Restricted Data” within the meaning of the Atomic Energy Act. Restricted Data concerns design, manufacture or utilization of atomic weapons, or production of Special Nuclear Material (SNM), or use of SNM in the production of energy – such as naval reactors. Jonathan Toebbe worked with and had access to information concerning naval nuclear propulsion including information related to military sensitive design elements, operating parameters and performance characteristics of the reactors for nuclear powered warships.
According to court documents, Jonathan Toebbe sent a package to a foreign government, listing a return address in Pittsburgh, Pennsylvania, containing a sample of Restricted Data and instructions for establishing a covert relationship to purchase additional Restricted Data. Jonathan Toebbe began corresponding via encrypted email with an individual whom he believed to be a representative of the foreign government. The individual was really an undercover FBI agent. Jonathan Toebbe continued this correspondence for several months, which led to an agreement to sell Restricted Data in exchange for thousands of dollars in cryptocurrency.
On June 8, 2021, the undercover agent sent $10,000 in cryptocurrency to Jonathan Toebbe as “good faith” payment. Shortly afterwards, on June 26, Jonathan Toebbe serviced a dead drop by placing an SD card, which was concealed within half a peanut butter sandwich and contained military sensitive design elements relating to submarine nuclear reactors, at a pre-arranged location. After retrieving the SD card, the undercover agent sent Jonathan Toebbe a $20,000 cryptocurrency payment. In return, Jonathan Toebbe emailed the undercover agent a decryption key for the SD Card. A review of the SD card revealed that it contained Restricted Data related to submarine nuclear reactors. On Aug. 28, Jonathan Toebbe made another “dead drop” of an SD card in eastern Virginia, this time concealing the card in a chewing gum package. After making a payment to Jonathan Toebbe of $70,000 in cryptocurrency, the FBI received a decryption key for the card. It, too, contained Restricted Data related to submarine nuclear reactors. The FBI arrested Jonathan Toebbe and his wife on Oct. 9, after he placed yet another SD card at a pre-arranged “dead drop” at a second location in West Virginia.
The FBI and NCIS are investigating the case.
Trial Attorneys Matthew J. McKenzie and S. Derek Shugert of the National Security Division's Counterintelligence and Export Control Section, Assistant U.S. Attorneys Jarod J. Douglas and Lara Omps-Botteicher of the Northern District of West Virginia, and Special Assistant U.S. Attorney Jessica Lieber Smolar for the Western District of Pennsylvania prosecuted the case.
Maryland Nuclear Engineer and Wife Sentenced for Espionage-Related OffensesRead the Press Release
A Maryland man and his wife were sentenced today for conspiracy to communicate Restricted Data related to the design of nuclear-powered warships.
Jonathan Toebbe, 44, of Annapolis, was sentenced today to 232 months, over 19 years, of incarceration. His wife, Diana Toebbe, 46, was sentenced to 262 months, more than 21 years, of incarceration. The Toebbes pleaded guilty to the conspiracy in August 2022.
“The Toebbes conspired to sell restricted defense information that would place the lives of our men and women in uniform and the security of the United States at risk,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Department of Justice remains committed to protecting U.S. defense technology.”
“If not for the remarkable efforts of FBI agents, the sensitive data stolen by Mr. Toebbe could have ended up in the hands of an adversary of the United States and put the safety of our military and our nation at risk,” said U.S. Attorney William J. Ihlenfeld II for the Northern District of West Virginia. “The FBI keeps American citizens safe from enemies both foreign and domestic and this case is an excellent reminder of their important work.”
“These actions are a betrayal of trust, not only to the U.S. Government, but also to the American people,” said Assistant Director Alan E. Kohler Jr. of the FBI’s Counterintelligence Division. “All U.S. Government employees swear to support and defend the Constitution of the United States, and with that oath comes the obligation to protect sensitive information. Those entrusted with such grave responsibility must be held accountable if they violate their oath and betray their country. The investigation which led to today’s sentencing is a reminder that the FBI and our partners will continue to doggedly pursue those who betray their sworn oath and those who aid them.”
“The Toebbes were willing to compromise the security of the nation by selling information related to naval nuclear propulsion systems, they are now being held accountable for their actions,” said Special Agent in Charge Mike Nordwall of the FBI Pittsburgh Field Office. “The FBI and our federal partners have an unwavering commitment to protect U.S. secrets and will continue to aggressively investigate and expose espionage activities conducted on U.S. soil.”
“Naval nuclear engineer Jonathan Toebbe was entrusted with our nation’s critical secrets and, along with his wife Diana Toebbe, put the security of our country at risk for financial gain,” said U.S. Attorney Cindy Chung for the Western District of Pennsylvania. “Their serious criminal conduct betrayed and endangered the Department of the Navy’s loyal and selfless service members. The seriousness of the offense in this case cannot be overstated.”
“The Toebbes betrayed the American people and put our national security at significant risk when they selfishly attempted to sell highly sensitive information related to nuclear-powered warships for their own financial benefit,” said Special Agent in Charge Brice Miller of the Naval Criminal Investigative Service (NCIS) Office of Special Projects. “As the law enforcement arm of the Department of the Navy responsible for preventing terrorism, reducing crime, and protecting secrets, NCIS remains committed to protecting vital information and technology that ensures the superiority of the U.S. Navy and Marine Corps.”
According to court documents, at the time of his arrest, Jonathan Toebbe was an employee of the Department of the Navy who served as a nuclear engineer and was assigned to the Naval Nuclear Propulsion Program, also known as Naval Reactors. He held an active national security clearance through the Department of Defense, giving him access to “Restricted Data” within the meaning of the Atomic Energy Act. Restricted Data concerns design, manufacture or utilization of atomic weapons, or production of Special Nuclear Material (SNM), or use of SNM in the production of energy – such as naval reactors. Jonathan Toebbe worked with and had access to information concerning naval nuclear propulsion including information related to military sensitive design elements, operating parameters and performance characteristics of the reactors for nuclear powered warships.
According to court documents, Jonathan Toebbe sent a package to a foreign government, listing a return address in Pittsburgh, Pennsylvania, containing a sample of Restricted Data and instructions for establishing a covert relationship to purchase additional Restricted Data. Jonathan Toebbe began corresponding via encrypted email with an individual whom he believed to be a representative of the foreign government. The individual was really an undercover FBI agent. Jonathan Toebbe continued this correspondence for several months, which led to an agreement to sell Restricted Data in exchange for thousands of dollars in cryptocurrency.
On June 8, 2021, the undercover agent sent $10,000 in cryptocurrency to Jonathan Toebbe as “good faith” payment. Shortly afterwards, on June 26, Jonathan Toebbe serviced a dead drop by placing an SD card, which was concealed within half a peanut butter sandwich and contained military sensitive design elements relating to submarine nuclear reactors, at a pre-arranged location. After retrieving the SD card, the undercover agent sent Jonathan Toebbe a $20,000 cryptocurrency payment. In return, Jonathan Toebbe emailed the undercover agent a decryption key for the SD Card. A review of the SD card revealed that it contained Restricted Data related to submarine nuclear reactors. On Aug. 28, 2021, Jonathan Toebbe made another “dead drop” of an SD card in eastern Virginia, this time concealing the card in a chewing gum package. After making a payment to Jonathan Toebbe of $70,000 in cryptocurrency, the FBI received a decryption key for the card. It, too, contained Restricted Data related to submarine nuclear reactors. The FBI arrested Jonathan Toebbe and his wife on Oct. 9, 2021 after he placed yet another SD card at a pre-arranged “dead drop” at a second location in West Virginia.
The FBI and NCIS are investigating the case.
Trial Attorneys Matthew J. McKenzie and S. Derek Shugert of the National Security Division's Counterintelligence and Export Control Section, Assistant U.S. Attorneys Jarod J. Douglas and Lara Omps-Botteicher for the Northern District of West Virginia and Special Assistant U.S. Attorney Jessica Lieber Smolar for the Western District of Pennsylvania prosecuted the case.
Martin Man Charged with Failure to Register as a Sex OffenderRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that a Martin, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Steven Flood, age 37, was indicted in November of 2022. He appeared before U.S. Magistrate Judge Veronica L. Duffy on November 8, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that Flood, who had previously been convicted of a sex crime and required to register under the Sex Offender Registration and Notification Act, failed to do so between June 15, 2022, and August 4, 2022.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
The charge is merely an accusation and Flood is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Flood was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Maplewood Man Pleads Guilty to Illegal Possession of an Unregistered Pipe BombRead the Press Release
MINNEAPOLIS – A Maplewood man has pleaded guilty to illegal possession of a pipe bomb, announced U.S. Attorney Andrew M. Luger.
According to court documents, on April 28, 2022, law enforcement executed a search warrant at the Maplewood residence of Dylan Raymond Orr, 27, after discovering photos of two pipe bombs sent from Orr’s phone to a third-party. The images showed that there were small BBs affixed to the exterior casing of the pipe bombs. During the execution of the search warrant, law enforcement discovered two six-inch pipes – one with BBs affixed, 4 end caps, and explosive powder, components which could be readily converted to a destructive device. Orr did not have a registration to possess these devices from the National Firearms Registration and Transfer Record as required by law.
Orr pleaded guilty today before U.S. District Judge Nancy E. Brasel to one count of possession of an unregistered destructive device. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Savage Police Department.
Assistant U.S. Attorney LeeAnn K. Bell is prosecuting the case.
Man Sentenced to More Than 17 Years in Prison for Attempting to Provide Material Support to ISISRead the Press Release
A Pennsylvania man was sentenced yesterday to 208 months, more than 17 years, in federal prison, followed by a lifetime of supervised release, for attempting to provide material support to the Islamic State of Iraq and al-Sham, aka ISIS, a designated foreign terrorist organization.
Mustafa Mousab Alowemer, 24, of Pittsburgh, pleaded guilty in the Western District of Pennsylvania on Sept. 16, 2021 to one count of attempting to provide material support to ISIS in connection with his plan to attack a church in Pittsburgh.
“Alowemer admitted to planning a deadly bombing of a Pittsburgh church in the name of ISIS,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The National Security Division was created to protect the nation from terrorist threats and we remain vigilant against those who would plot violent attacks on U.S. soil in furtherance of an extreme ideology.”
“The defendant’s plan to bomb a Pittsburgh church and risk death or injury to residents in the area in the name of ISIS was thwarted by the extraordinary work of the Pittsburgh Joint Terrorism Task Force,” said U.S. Attorney Cindy K. Chung for the Western District of Pennsylvania. “Our office will continue to hold accountable individuals who threaten the safety of our communities.”
“I want to commend the great work of our Joint Terrorism Task Force, and that of their partners and sources, in successfully thwarting a planned terrorist attack in the name of ISIS,” said Assistant Director Robert R. Wells of the FBI’s Counterterrorism Division. “Alowemer’s plan to conduct an attack at a church in Pittsburgh and inspire other ISIS supporters in the United States was unsuccessful thanks to the efforts of law enforcement officials at both the federal and state level. This sentencing demonstrates the commitment we share with our partners to pursuing justice against those who violate our laws and seek to harm innocents in our communities.”
According to court documents, Alowemer plotted to bomb a church located on the north side of Pittsburgh using an explosive device. His stated motivation to conduct such an attack was to support the cause of ISIS and to inspire other ISIS supporters in the United States to join together and commit similar acts in the name of ISIS. Alowemer also targeted the church, which he described as a “Nigerian Christian” church, to “take revenge for our [ISIS] brothers in Nigeria.” Alowemer was aware that numerous people in the proximity of the church could be killed by the explosion.
In furtherance of the plot to bomb the church, in May 2019, Alowemer distributed multiple instructional documents related to the construction and use of explosives and improvised explosive devices (IEDs) to an individual Alowemer believed to be a fellow ISIS supporter, but who was in fact an FBI employee. Alowemer distributed these documents with the intent that the information be used in the assembly of a destructive device and in furtherance of conducting an attack in support of ISIS. In or around June 2019, Alowemer purchased several items, including nails and acetone (nail polish remover), with the belief that they were necessary to assemble a destructive device and with the intention they be used to construct the explosives that would be detonated in the vicinity of the church.
Between April 16 and June 11, Alowemer met four times in person with an FBI Undercover Employee (UCE) and/or an FBI Confidential Human Source (CHS). At the June 11 meeting with the UCE and CHS, Alowemer provided additional details about the bomb plot and provided the materials, including boxes of nails, he had purchased for construction of the device. Alowemer provided printed copies of detailed Google satellite maps, which included hand-written markings identifying the church and routes of arrival and escape. Alowemer also wrote and provided a 10-point handwritten plan outlining details related to his plot to personally deliver explosives in a backpack. Alowemer expressed a desire to meet one more time to conduct planning and coordination prior to carrying out the attempted bombing in July 2019. That meeting was later scheduled for June 19 in the Pittsburgh area, at which time Alowemer was arrested.
Assistant U.S. Attorney Soo C. Song for the Western District of Pennsylvania and Trial Attorneys Brenda Sue Thornton and S. Elisa Poteat of the National Security Division’s Counterterrorism Section are prosecuting this case on behalf of the government.
The FBI’s Joint Terrorism Task Force members who were directly involved in this investigation include: FBI, U.S. Immigration and Customs Enforcement (ICE), U.S. Citizen and Immigration Services (USCIS), Homeland Security Investigations (HSI), IRS – Criminal Investigation, U.S. Secret Service, U.S. Postal Inspection Service, Pennsylvania State Police, Allegheny County Police Department, Pittsburgh Bureau of Police, Allegheny County Port Authority Police, Allegheny County Probation, University of Pittsburgh Police Department and UPMC Police Security.
Man Sentenced to 14 Years in Federal Prison for Possessing a Firearm in Furtherance of a Drug Trafficking OffenseRead the Press Release
CHICAGO — A man who possessed and brandished a loaded firearm to protect his heroin, fentanyl, and approximately $3,100 in cash has been sentenced to 14 years in federal prison.
On February 23, 2019, LONDON GROVER, 32, of Chicago pointed a firearm at someone attempting to steal the heroin and fentanyl that Grover held for sale. When Chicago Police Department officers responded to a call for shots fired, Grover drove away from the officers at a high rate of speed. After Grover crashed the vehicle, officers found him hiding underneath a nearby parked car. From the driver’s side floorboard of the crashed vehicle, officers recovered a loaded firearm and packages of mixed fentanyl and heroin. Grover pleaded guilty earlier this year to knowingly and intentionally possessing with the intent to distribute approximately 1.3 grams of packaged heroin and fentanyl and possession of a firearm in furtherance of a drug trafficking crime. At the time of the offense, GROVER had six prior felony convictions, and was on parole for an offense involving a firearm.
On November 7, 2022, U.S. District Judge Edmond E. Chang imposed a 14-year prison sentence.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey L. Matthews, Acting Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; and David Brown, Superintendent of the Chicago Police Department. The government was represented by Assistant U.S. Attorney William Dunne, Deputy Chief of the U.S. Attorney’s Office’s Gun Crimes Prosecution Team. The team works collaboratively with federal and local law enforcement to enhance the prosecution of illegal firearm possession in certain police districts in Chicago.
Man Pleads Guilty to Committing Second Degree Murder in Indian CountryRead the Press Release
A defendant who killed another man just outside a Walmart store in Tulsa pleaded guilty Wednesday in federal court, announced U.S. Attorney Clint Johnson.
Terry Danell Limose, 37, pleaded guilty to second degree murder in Indian Country.
Limose admitted in his plea agreement that he killed victim Jessie Childers by strangulation around 4 am on Nov. 13, 2021. He stated that he strangled the victim for several minutes before the victim died.
Tulsa Police officers were called to the scene after receiving reports that a deceased man was found just outside of the store. Several witnesses reported seeing a man, later identified as Limose, in the parking lot during the time of the crime. One witness even observed the two men fighting. Officers later located Limose hiding in a grassy creek area behind the store with apparent minor injuries.
During the investigation, officers located surveillance video from a nearby business that showed Limose following the victim prior to the murder and throwing rocks and chunks of pavement at him, hitting him multiple times. The victim attempted to scare Limose away with a metal rod and piece of wood he was carrying.
The defendant followed the victim, who had picked up one of the chunks of rock, to the Walmart parking lot. Walmart surveillance video showed the victim throw the rock toward the store’s door and attempt to get help by banging on the window, to no avail. Limose appeared to have trapped the victim by the front door. After approximately six minutes, Limose began fighting the victim and eventually threw the victim to the ground. Limose was on top of the victim for approximately seven minutes before he got off of him. During that time, he strangled the victim, killing him. He then started to walk away when he encountered two other men. They checked on the victim. The other two men left the scene, and Limose attempted to perform CPR on the victim.
The victim was a citizen of the Muscogee Nation, and the crime occurred within the Muscogee Nation reservation.
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Aaron M. Jolly prosecuted the case.
Man Indicted in Connection with Attempted Kidnapping and Assault at Pelosi ResidenceRead the Press Release
A federal grand jury returned an indictment today charging a California man with assault and attempted kidnapping in connection with the break in at the Pelosi residence on Oct. 28 in San Francisco.
The indictment supersedes the federal criminal complaint filed on Oct. 31.
According to the indictment, David DePape, 42, of Richmond, was arrested on Oct. 28 inside the Pelosi residence by San Francisco Police Department (SFPD) police officers responding to a 911 call from Paul Pelosi, husband of U.S. House of Representatives Speaker Nancy Pelosi. Paul Pelosi later described to police that he had been asleep when DePape, whom he had never seen before, entered his bedroom looking for Nancy Pelosi.
According to the indictment, minutes after the 911 call, two police officers responded to the Pelosi residence where they encountered Paul Pelosi and DePape struggling over a hammer. Officers told the men to drop the hammer, and DePape allegedly gained control of the hammer and swung it, striking Pelosi in the head. Officers immediately restrained DePape while Pelosi was injured on the ground. As set forth in the indictment, once DePape was restrained, officers secured a roll of tape, white rope, a second hammer, a pair of rubber and cloth gloves, and zip ties from the crime scene, where officers also observed a broken glass door to the back porch.
DePape is charged with one count of assault upon an immediate family member of a U.S. official with the intent to retaliate against the official on account of the performance of official duties. He is also charged with one count of attempted kidnapping of a U.S. official on account of the performance of official duties. If convicted, he faces a maximum sentence of 30 years in prison for the assault count and 20 years in prison for the attempted kidnapping count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Stephanie M. Hinds for the Northern District of California, Special Agent in Charge Robert K. Tripp of the FBI San Francisco Field Office, and Chief J. Thomas Manger of the U.S. Capitol Police made the announcement.
The FBI San Francisco Field Office, the U.S. Capitol Police, and the San Francisco Police Department are investigating the case.
The Special Prosecutions Section of the U.S. Attorney’s Office for the Northern District of California is 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.
Man Indicted for Smuggling 71 Pounds of Fentanyl Pills Across the US-Mexico BorderRead the Press Release
PHOENIX, Ariz. – On October 25, 2022, a federal grand jury returned a two-count indictment against Edwin Francisco Cubillas, 27, of Mexico, for Possession with Intent to Distribute Fentanyl and Importation of Fentanyl into the United States from Mexico.
The indictment alleges that, on September 26, 2022, Cubillas entered the United States through San Luis, Arizona. At the Port of Entry, Customs and Border Protection Officers discovered 16 packages, containing blue circular pills that tested positive for fentanyl, hidden in Cubillas’s car. The combined weight of the packages exceeded 32 kilograms (71 pounds).
A conviction for each of the charged offenses carries a maximum penalty of life in prison and a $10,000,000 fine.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
Homeland Security Investigations is conducting the investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix, is handling the prosecution.
CASE NUMBER: CR-22-01400-PHX-DWL
RELEASE NUMBER: 2022-204_Cubillas# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Man Found Guilty of 19 Counts of Child PornographyRead the Press Release
SAN JUAN, Puerto Rico – After a seven-day jury trial, Francisco Xavier Ortiz-Colón was found guilty of 19 counts, including nine counts of production of child pornography, eight counts of coercion and enticement of a minor to engage in sexual conduct, one count of receipt of child pornography, and one count of possession of child pornography. United States District Court Chief Judge Raúl Arias Marxuach presided over the trial.
According to the Superseding Indictment, from August 2019 through June 2020, Ortiz-Colón induced, enticed, and coerced nine female victims, ranging from nine (9) to fourteen (14) years of age, to engage in sexually explicit conduct for the purpose of producing child pornography. Ortiz‑Colón used multiple Instagram accounts to commit these crimes.
During trial, the government presented evidence to prove that Ortiz-Colón used three Instagram accounts, while impersonating a female user, to procure armpit photos of the minor victims. After obtaining photos of the minors’ armpits and breasts, he used those photos to extort further explicit pornographic photos of the minors. HSI law enforcement agents executed several search warrants of the address where Ortiz-Colón’s Instagram account IP Address was identified and found him in possession of the smartphone through which he exercised control of the Instagram accounts used to extort the minor victims.
“The materials this defendant produced through his Instagram accounts are evidence of the intentional sexual abuse of these minors. The U.S. Attorney’s Office and our law enforcement partners will relentlessly investigate and prosecute the misuse of social media platforms to perpetrate these heinous crimes,” said W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. “I commend the investigative and prosecution team that effectively secured this meaningful conviction.”
“The guilty verdict not only concludes a long emotional week of victim testimonies which impacted everybody present in the courthouse, but most importantly provides closure to all the minors who this predator attacked without mercy,” said HSI Acting Special Agent in Charge Rebecca González‑Ramos. “This man once told one of his victims that he would never get caught by law enforcement. He preyed on our children, believing he was above the law. HSI arrested him and a jury found him guilty. It’s now time for him to face the consequence of his transgressions.”
Assistant U.S. Attorney Jenifer Y. Hernández-Vega, Project Safe Childhood Coordinator in the Child Exploitation and Immigration Unit, prosecuted the case. The defendant faces a mandatory minimum sentence of fifteen (15) years’ imprisonment, and a statutory maximum sentence of 30 years’ incarceration for the production of child pornography counts; a mandatory minimum sentence of ten (10) years’ imprisonment and a maximum penalty of life for the coercion and enticement of a minor counts; and a statutory maximum of twenty (20) years’ imprisonment for the receipt and possession of child pornography counts. The sentencing hearing is scheduled for February 6, 2023, at 10:00 am. The defendant was ordered detained pending sentencing.
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Lynn Man Sentenced for Mail TheftRead the Press Release
BOSTON – A Lynn man was sentenced today in federal court in Boston for stealing money from the mail.
Juan Murillo, 32, was sentenced by U.S. District Court Judge Allison D. Burroughs to one year of probation and was ordered to pay restitution of $2,400. On Aug. 9, 2022, Murillo pleaded guilty to one count of theft of mail by an employee of the U.S. Postal Service.
On June 22 and 30, 2021, while serving as a City Carrier for the United States Postal Service, Murillo stole two iPads which had been previously delivered to a Harvard University dorm while on his route delivering other mail. Additionally, on or about Sept. 23, 2021, Murillo stole cash from mail that he was supposed to deliver to postal customers.
United States Attorney Rachael S. Rollins and Matthew Modafferi, Special Agent in Charge of the United States Postal Service Office of Inspector General, Northeast Area Office made the announcement today. Valuable assistance was provided by the Harvard University Police Department. Assistant U.S. Attorney Eugenia M. Carris, Deputy Chief of Rollins’ Public Corruption & Special Prosecutions Unit, prosecuted the case.
Lower Brule Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that a Lower Brule, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on November 7, 2022, by U.S. District Judge Karen E. Schreier.
Russell Dean Wright, age 54, was sentenced to two and a half years in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Wright was indicted by a federal grand jury in May of 2022. He pled guilty on August 15, 2022.
The conviction stems from Wright failing to register as a sex offender as required by federal law between November 1, 2021, and April 4, 2022. Wright had previously been convicted of a sex offense in federal court which requires him to register for 25 years upon his release from federal prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Wright was immediately remanded to the custody of the U.S. Marshals Service.
Long Island Businesswoman Convicted of Obstructing the Internal Revenue Service, Filing False Tax Returns, and Structuring Cash DepositsRead the Press Release
Earlier today, a federal jury in Central Islip returned a guilty verdict on all five counts of superseding indictment charging Lorraine Pilitz, also known as “Lorraine Christie,” and “Lorraine Storms” with illegally structuring financial transactions, corruptly obstructing the Internal Revenue Service (IRS), and filing false tax returns. The verdict followed a two-week trial before United States District Judge Joanna Seybert.
Breon Peace, United States Attorney for the Eastern District of New York, and Thomas Fattorusso, Acting Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), announced the verdict.
“For years the defendant thought she could get away with hiding substantial amounts of cash and income, impeding the Internal Revenue Service, and cheating her employees, but the jury saw through the lies and has held her responsible for her actions,” stated United States Attorney Peace. “Business owners who place greed above following the rule of law will face the consequences.”
Mr. Peace thanked the Suffolk County Police Department’s Treasury Enhanced Prosecution Program for their assistance with the case.
“Lorraine Pilitz set up a complicated scheme to hide hundreds of thousands of dollars from the IRS by grossly underreporting her income and having an ‘off-the-books’ payroll. As the investigative arm of the IRS, IRS Criminal Investigation is strategically positioned to track down all those who look to steal from the U.S. Treasury and the American public to line their own pockets,” said Thomas M. Fattorusso, Special Agent in Charge of IRS-CI New York.
As proven at trial, Pilitz owned and operated several automobile-related businesses on Long Island. Financial institutions are required to file a Currency Transaction Report (CTR) with the IRS for each transaction in excess of $10,000. Between 2011 and 2013, the defendant routinely structured cash deposits to avoid the required CTR filings – depositing cash amounts just under $10,000. As a result of Pilitz’s scheme, hundreds of thousands of dollars were concealed from the IRS. As part of the same scheme to conceal her income, Pilitz also diverted hundreds of thousands of dollars of business checks into her and her family’s personal bank accounts, maintained “off-the-books” payrolls, failed to file personal and corporate tax returns, and filed false tax returns that severely underreported her income.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Burton T. Ryan, Jr., Adam R. Toporovsky, Madeline O’Connor and Diane Leonardo are in charge of the prosecution with assistance from Paralegal Specialist Michael Compitello.
The Defendant:
LORRAINE PILITZ
Age: 64
Merrick, New YorkE.D.N.Y. Docket 17-CR-53 (S-2) (JS)
Licking County man sentenced to 15 years in prison for armed bank robberiesRead the Press Release
DAYTON, Ohio – A Heath, Ohio, man was sentenced in U.S. District Court to 180 months in prison for committing three armed bank robberies in Ohio in July and August 2021.
Stefan Chadwick Crawmer, 54, knowingly brandished a firearm during crimes of violence and stole nearly $8,000 total from three different banks.
According to court documents, on July 1, 2021, Crawmer stole $3,350 from People Savings Bank in Urbana, Ohio. On Aug. 7, 2021, he stole more than $3,000 from Richwood Bank in Springfield, Ohio. Finally, on Aug. 17, 2021, the defendant stole approximately $1,300 from Civista Bank in West Liberty, Ohio.
During these robberies, Crawmer entered the banks wearing a face mask. He approached a teller and demanded cash, removing a handgun from his pocket, and placing it in front of the teller.
On each occasion, Crawmer pointed the gun at the teller and during at least two of the robberies he racked the slide to indicate the firearm was real and loaded.
As part of his conviction, the defendant forfeited two pistols and a rifle.
Federal agents arrested Crawmer in October 2021 and he pleaded guilty to armed robbery in July 2022.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Urbana Police Chief Matthew D. Lingrell; Springfield Police Chief Lee Graf; Logan County Sheriff Randall J. Dodds; and West Liberty Police Chief Shane Oelker announced the sentence imposed on Nov. 8 by Senior U.S. District Court Judge Walter H. Rice. Assistant United States Attorneys Amy M. Smith and Nicholas A. Dingeldein are representing the United States in this case.
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Leader of Midwest Drug Ring Found Guilty of Drug Conspiracy and Money Laundering ChargesRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced announced that Ray Noel Camacho, a/k/a “Pato,” age 38, from Nebraska, but currently serving a 31 to 64-year prison sentence for terroristic threats and use of a firearm to commit a felony, was found guilty of Conspiracy to Distribute a Controlled Substance and Conspiracy to Commit Money Laundering, as a result of a federal jury trial in Sioux Falls, South Dakota. The verdict was returned on November 3, 2022.
The charges, due to sentencing guidelines in Camacho’s case, carry a mandatory minimum of 10 years in prison and a maximum penalty of life in custody and/or a $10 million fine, life of supervised release, and a $200 special assessment to the Federal Crime Victims Fund.
Camacho was indicted by a federal grand jury in August of 2021.
Ray Camacho, a/k/a “Pato”, was the leader of a large drug trafficking organization based in the Sioux Falls area, which was responsible for the distribution of at least 120 pounds of methamphetamine. This consisted of approximately 70 lbs. of methamphetamine seized in South Dakota alone. In May of 2019, one traffic stop led to a search and seizure of 50 pounds of methamphetamine, which was stored within a spare tire and hidden compartments within the vehicle.
Mr. Camacho arranged and strategically orchestrated multi-pound deliveries of methamphetamine from Mexico, and payment for said deliveries, through three-way phone calls made from the South Dakota State Penitentiary. Said calls were recorded by the prison and used as key evidence in his trial. Camacho recruited numerous co-conspirators to aid him in his organization, which included current and former inmates and individuals known to them from the outside community. Camacho is the last of 22 defendants involved in this drug trafficking organization to be found guilty.
This case was investigated by the Drug Enforcement Administration, South Dakota Department of Criminal Investigation, Sioux Falls Area Drug Task Force, and the IRS Criminal Investigation team. Assistant U.S. Attorneys Mark Hodges and Paige Petersen prosecuted the case.
A presentence investigation was ordered and a sentencing date has not yet been set. The defendant was remanded to the custody of the U.S. Marshals Service.
Kanawha County Man Sentenced to Prison for Fentanyl CrimeRead the Press Release
CHARLESTON, W.Va. – Danise Maurice Fortune, 41, of St. Albans, was sentenced today to seven years and three months in prison, to be followed by three years of supervised release, for distribution of fentanyl.
According to court documents and statements made in court, on January 25, 2022, Fortune sold approximately 11 grams of suspected heroin for $1,300 to a confidential informant in St. Albans. The West Virginia State Police Forensic Laboratory confirmed the controlled substance was approximately 9.2 grams of fentanyl and also contained phencyclidine, also known as PCP.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Charleston Police Department, and the Kanawha County Sheriff’s Office.
Chief United States District Judge Thomas E. Johnston imposed the sentence. Assistant United States Attorney Ryan A. Keefe prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-69.
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Jury Convicts Schenectady Man of Drug Charges and Possessing a Firearm in Furtherance of Drug TraffickingRead the Press Release
ALBANY, NEW YORK – Brandon Prawl, age 28, of Schenectady, New York, was convicted today of four counts of distributing heroin, possessing heroin with the intent to distribute, and possessing a firearm in furtherance of a drug trafficking crime, following a 3-day jury trial.
The announcement was made by United States Attorney Carla B. Freedman; John B. DeVito, Special Agent in Charge of the New York Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and New York State Police Acting Superintendent Steven A. Nigrelli.
The evidence at trial established that on four dates in September 2019, Prawl distributed heroin out of a residence in Schenectady. On October 4, 2019, Prawl was found in possession of a .45 caliber pistol and loaded magazine, more than 21 grams of heroin, and drug distribution paraphernalia at the same residence. The jury concluded that Prawl possessed the heroin for distribution, and the firearm in furtherance of his drug trafficking activities.
Prawl faces at least 5 years and up to life in prison when he is sentenced by United States District Judge Glenn T. Suddaby on March 30, 2023. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the ATF and New York State Police, and is being prosecuted by Assistant United States Attorneys Ashlyn Miranda and Emmet O’Hanlon.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Jefferson Parish Felons Sentenced for Drug Trafficking and Firearm OffensesRead the Press Release
NEW ORLEANS, LA – United States Attorney Duane A. Evans announced that ANTHONY PITTMAN, age 33, of Metairie, Louisiana, was sentenced on November 1, 2022. His co-defendant, JOSEPH WOODS, age 31, of Metairie Louisiana, was sentenced on November 7, 2022. They both previously pleaded guilty as charged to a three-count indictment. Count 1 charged the defendants with possession with intent to distribute controlled substances in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C); Count 2 charged them with possession of a firearm in furtherance of a drug trafficking crime in violation of Title 18, United States Code, Section 924(c)(1)(A)(i); and Count 3 charged them with possession of a firearm by a convicted felon in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
According to court documents, PITTMAN and WOODS were both previously convicted of drug trafficking, among other felony firearm and drug offenses in Jefferson Parish. Due to these convictions, it is unlawful for either of them to possess a firearm. They are now convicted of possessing multiple firearms and possessing with the intent to distribute cocaine, cocaine base (“crack”), and heroin. The two were apprehended after a high-speed chase during an attempted traffic stop on October 4, 2020 in Westwego, Louisiana. The drugs were found in two camouflage bags which were originally seen by officers inside the car but thrown on the side of the road as the defendants tried to escape. Additional evidence consistent with drug trafficking was found in the center console of the vehicle.
PITTMAN was sentenced to a total term of imprisonment of 322 months. This consists of 240 months for Count 1, 262 months for Count 2, and 60 months for Count 3. Counts 1 and 2 are to run concurrently, while Count 3 will run consecutively. Upon release from prison, he will serve a term of three years of supervised release.
WOODS was sentenced to a total term of imprisonment of 262 months. This consists of 202 months for Count 1, 120 months for Count 2, and 60 months for Count 3. Counts 1 and 2 are to run concurrently, while Count 3 will run consecutively. Upon release from prison, he will serve a term of three years of supervised release.
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.
The case was investigated by the Westwego Police department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Charles D. Strauss is in charge of the prosecution.
Jamestown Man Pleads Guilty to Selling Fentanyl That Led to A DeathRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Garson E. Butcher, 30, of Jamestown, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to with distribution of fentanyl causing death, narcotics conspiracy, and using and maintaining a drug-involved premises. The charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that according to the indictment, between March 2020, and June 2021, Butcher and co-defendant Alisha Centi conspired with others to possess and sell heroin, fentanyl, and methamphetamine. On March 29, 2020, Butcher and Centi sold fentanyl which resulted in the death of an individual identified as T.R. On September 28, 2020, Butcher and Centi sold heroin to an individual identified as K.K., who overdosed but regained consciousness after receiving multiple doses of Narcan. In addition, Butcher and Centi used residences on Fairview Avenue and Roland Road to manufacture and distribute heroin, fentanyl, and methamphetamine.
Charges remain pending against Alisha Centi.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division, the Jamestown Police Department, under the direction of Chief Timothy Jackson, and the Chautauqua County Sheriff’s Office, under the direction of Sheriff James B. Quattrone.
Sentencing is scheduled for March 14, 2023, at 10:00 a.m. before Judge Sinatra.
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Jackson Man Pleads Guilty to Possessing a Firearm as a Convicted Felon after Selling AR-Style Rifle to FBIRead the Press Release
Jackson, Miss. – A Jackson man pled guilty today to possessing a firearm as a convicted felon, announced Acting U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
According to court documents, Malcolm Undrea Spires, 55, sold a semiautomatic AR-style rifle pursuant to a sting operation conducted by the Federal Bureau of Investigation on November 22, 2021. Spires has two prior felony convictions, one of which is for possessing a firearm as a convicted felon.
Spires pled guilty to a violation of Title 18, United States Code, Section 922(g)(1) which criminalizes the possession of firearms by convicted felons. He is scheduled to be sentenced on February 16, 2023, and faces a maximum penalty of 10 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Federal Bureau of Investigation is investigating the case.
Assistant U.S. Attorney Bert Carraway is prosecuting the case.
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.
Jackson Man Pleads Guilty to Being a Convicted Felon in Possession of a FirearmRead the Press Release
Jackson, Miss. – A Jackson man pleaded guilty today to being a convicted felon in possession of a firearm, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
According to court documents, Earnest Guise, 41, was found in possession of a firearm by a Jackson Police Department Officer on June 6, 2021, during an investigation into a reported shooting. Guise has multiple prior felony convictions. As a convicted felon it is contrary to federal law for Guise to possess any firearm.
On February 8, 2022, a federal grand jury indicted Guise for possession of a firearm as a convicted felon. He will be sentenced on February 13, 2022 and faces a maximum penalty of ten years in prison and a $250,000 fine. 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 FBI and the Jackson 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.
Indiana School Teacher Charged with Traveling to Kentucky to Engage in Sexual Conduct with a MinorRead the Press Release
Bowling Green, KY – A federal grand jury in Bowling Green, Kentucky returned a three-count indictment today charging an Evansville, Indiana high school teacher with traveling across state lines to Owensboro, Kentucky, for the purpose of engaging in illicit sexual conduct with a person he believed to be a fifteen-year-old child, attempted enticement of a minor, and attempted transfer of obscene material to a minor.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Robert Holman of the United States Secret Service Louisville Field Office, Kentucky Attorney General Daniel Cameron, Commissioner Phillip Burnett, Jr. of the Kentucky State Police, and Chief Art Ealum of the Owensboro Police Department made the announcement.
The charges were the result of a joint federal, state, and local operation called Operation Angel, aimed at making federal arrests of sexual predators who prey upon children in the Owensboro area. The operation, which was led by the United States Secret Service, included the United States Attorney’s Office for the Western District of Kentucky, the Kentucky Office of the Attorney General, the Kentucky State Police, and the Owensboro Police Department.
According to court documents, Cody McCormick, 27, of Evansville, Indiana, was charged with one count of attempted enticement of a minor, one count of interstate travel to engage in illicit sexual activity with a minor, and one count of attempted transfer of obscene material to a minor. McCormick faces a minimum sentence of 10 years in prison and a maximum sentence of life in prison for the enticement charge. McCormick also faces a maximum sentence of 30 years in prison for the charge of interstate travel to engage in illicit sexual conduct with a minor and a maximum sentence of 10 years in prison for the obscenity charge. If convicted, a federal district court judge will determine any sentence imposed upon McCormick after considering the sentencing guidelines and other statutory factors. There is no parole in the federal system.
The defendant will make an initial court appearance on a later date before a U. S. Magistrate Judge of the U. S. District Court for the Western District of Kentucky in Owensboro.
The United States Secret Service, the Kentucky Office of the Attorney General, the Kentucky State Police, and the Owensboro Police Department are investigating the case.
Assistant United States Attorney A. Spencer McKiness is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
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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Indian National Charged in $8 Million COVID-19 Relief Fraud SchemeRead the Press Release
A federal grand jury in Newark, New Jersey, returned an indictment today charging an Indian national for fraudulently obtaining millions of dollars in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, Abhishek Krishnan, 40, previously resided in Wake County, North Carolina, before returning to his home country of India. After returning to India, Krishnan allegedly submitted numerous fraudulent PPP loan applications to federally insured banks, including on behalf of purported companies that were not registered business entities. The fraudulent PPP loan applications allegedly included false statements about the companies’ employees and payroll expenses, as well as falsified tax filings. As part of the fraud scheme, Krishnan allegedly used the name of another person without that person’s authority. Krishnan allegedly submitted at least 17 PPP loan applications seeking over $8.2 million and received more than $3.3 million in loan proceeds. Following receipt of the funds, Krishnan allegedly laundered the proceeds of the fraud.
Krishnan is charged with two counts of wire fraud, two counts of money laundering, and two counts of aggravated identify theft. If convicted, Krishnan faces a maximum penalty of 20 years in prison on each of the top counts and a mandatory minimum of two years in prison on each count of aggravated identify theft. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Philip R. Sellinger for the District of New Jersey; Special Agent in Charge Mark Morini of the U.S. Treasury Inspector General for Tax Administration (TIGTA), Southeast Field Division; Special Agent in Charge Kyle A. Myles of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), Atlanta Region; U.S. Marshal Michael East for the Eastern District of North Carolina; and Special Agent in Charge Amaleka McCall-Brathwaite of the Small Business Administration Office of Inspector General (SBA-OIG), Eastern Region made the announcement.
The TIGTA, FDIC-OIG, U.S. Marshals Service, and SBA-OIG are investigating the case.
Assistant Chief Justin Woodard and Trial Attorney Thomas D. Campbell of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Katherine M. Romano for the District of New Jersey are prosecuting the case, with assistance from Assistant U.S. Attorney Susan B. Menzer for the Eastern District of North Carolina.
In a separate case, Krishnan was recently charged in the Eastern District of North Carolina with theft of government property and aggravated identity theft regarding his alleged receipt of unemployment insurance benefits funded by the federal government in response to the COVID-19 pandemic.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 150 defendants in more than 95 criminal cases and has seized over $75 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Illinois Man Sentenced to 33 Months in Prison for $157,000 Bank FraudRead the Press Release
ST. LOUIS – U.S. District Judge John A. Ross on Tuesday sentenced a man from Granite City, Illinois to 33 months in prison for a fraud scheme that cost Commerce Bank at least $157,000. Judge Ross also ordered Wigfall to repay the money.
Beginning in 2018, Clarence Wigfall Jr., 33, deposited hundreds of worthless checks into at least 55 separate accounts. He started by asking Commerce Bank account holders in public Facebook posts and elsewhere to give him their debit cards and account information in exchange for cash. Wigfall then deposited worthless checks into their accounts via ATMs in eastern Missouri and southern Illinois, often shielding himself from view of surveillance cameras with a piece of paper. He and his associates then withdrew money before the bank detected the fraud. The checks had been written on frozen accounts, blocked accounts, closed accounts, fake accounts and accounts with insufficient funds. Some of the checks also had forged signatures.
At least ten of the checking account holders did not authorize Wigfall to use their information in his scheme.
Wigfall pleaded guilty in August to a bank fraud charge.
The case was investigated by the U.S. Secret Service. Assistant U.S. Attorney Derek Wiseman is prosecuting the case.
Huron Man Sentenced to 10 Years in Federal Custody for Role in Drug ConspiracyRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that a Huron, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on November 7, 2022, by U.S. District Judge Karen E. Schreier.
Jeffrey Pomerico, 27, was sentenced to 10 years in federal prison, followed by five years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Pomerico was indicted for conspiracy to distribute a controlled substance by a federal grand jury in December of 2021. He pleaded guilty on August 15, 2022.
Beginning on an unknown date and continuing until on or about December 7, 2021, Pomerico reached an agreement to distribute methamphetamine, a Schedule II controlled substance, in the District of South Dakota. He voluntarily and intentionally joined the methamphetamine conspiracy sometime around the summer of 2021.
During his involvement, Pomerico personally participated in the handling and distribution of over 500 grams of a mixture and substance containing methamphetamine. He had an agreement with a co-conspirator to obtain methamphetamine from him on a regular basis, for redistribution in South Dakota.
On October 27, 2021, Pomerico and another co-conspirator agreed to meet with Christopher Daniels, who is being sentenced for his role in this conspiracy on November 14, 2022, for the purpose of purchasing one pound of methamphetamine. After they purchased the pound of methamphetamine from Mr. Daniels at his home in Trent, South Dakota, law enforcement tried to stop their vehicle and his co-conspirator did not stop for the police. Eventually, they pulled into a cornfield, and threw the pound of methamphetamine out of the window. Pomerico then got out of the vehicle and tried to hide from law enforcement officers. Eventually, the officers found both him and the one pound of methamphetamine in the cornfield.
This case was investigated by the Sioux Falls Police Department, Drug Enforcement Administration, U.S. Postal Inspection Service, and the South Dakota Highway Patrol. Assistant U.S. Attorney Mark Hodges prosecuted the case.
Pomerico was immediately remanded to the custody of the U.S. Marshals Service.
Houston woman charged for filing false tax returns for othersRead the Press Release
HOUSTON – A local tax preparer is set to make her initial appearance in federal court on charges of aiding and assisting in the preparation and filing of false income tax returns, announced U.S. Attorney Jennifer B. Lowery.
Krystal Wright made her initial appearance before U.S. Magistrate Judge Palermo at 2 p.m. today.
A federal grand jury sitting in Houston returned an 18-count indictment Sept. 27.
According to the charges, Wright assisted in the preparation and filing of false income tax returns from 2016 to 2019.
If convicted, she faces up to three years in prison and a possible $100,000 maximum fine.
IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Rodolfo Ramirez is prosecuting the case.
An information is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Houma Man Sentenced to Seventeen and a Half Years for Enticing Teen Boys to Create Sexually Explicit Images and VideosRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that STEVE C. MERGEY (“MERGEY”), age 52, of Houma, Louisiana, was sentenced on November 8, 2022 for Production of Child Pornography, in violation of Title 18, United States Code, Sections 2251(a) and (e).
According to documents filed in federal court, the case against MERGEY developed as a result of a complaint to the U.S. Department of Homeland Security (“HSI”) Tip Line. On June 4, 2020, HSI Agents executed a federal search warrant at MERGEY’S residence located in Houma, LA. HSI’s investigation revealed that MERGEY groomed and coerced young male victims, as young as ten years old, who were living in Pennsylvania, New York, and Michigan to create and send sexually explicit images of themselves to MERGEY.
U.S. District Judge Wendy B. Vitter sentenced MERGEY to 210 months imprisonment, a life-term of supervised release and registration as a sex offender.
“The sentence is a gratifying outcome for the HSI special agents and law enforcement partners who are committed to protecting our nations’ innocense,” said Special Agent in Charge Dave Denton, HSI New Orleans. “We hope this serves as part of the healing process for the victims, and a reminder to those who harm children - HSI will not stop pursuing and bringing you to justice.”
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.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the U. S. Department of Homeland Security, Houma RAC and Pittsburg Office; Terrebonne Parish Sheriff’s Office; Houma Police Department; Louisiana State Police, Criminal Investigative Division; and Oswego County Sheriff’s Office, NY with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.
Harrisonburg Bank Robber Sentenced to 105 Months in PrisonRead the Press Release
HARRISONBURG, Va. – A Harrisonburg, Virginia man, who used a BB gun to rob First Citizen Bank on University Boulevard in Harrisonburg on January 4, 2022, was sentenced yesterday to 105 months in federal prison.
Charles Joseph Hood, 63, pleaded guilty in August 2022 to one count of armed bank robbery.
According to court documents, on January 4, 2022, Hood walked into the bank wearing a dark mask, sunglasses, hat, wig, and brown work boots and initially inquired about opening an account with the manager of the bank. Once inside the manager’s office, Hood brandished what appeared to be a firearm, but was later found to be a Daisy Powerline 426 .177 caliber BB gun and instructed the manager to walk over to the tellers’ station. Hood then demanded that the manager put on a gray glove and retrieve large bills only, no dye packs, and not to trigger the bank’s alarm system. The manager and two tellers separately collected $15,908 in cash and placed it in a makeshift bag provided by Hood while one of the tellers pressed the bank’s silent alarm system alerting law enforcement.
Hood exited the bank, got onto a bicycle, and fled the scene. Approximately a half-mile away, Hood discarded the bike, wig, and his outer jacket, and walked into a restaurant where he entered the bathroom and lifted an oil painting off the wall. After placing the BB gun behind the painting where it was out of view and undetectable, Hood walked to the nearby Walmart Supercenter and bought a pair of shoes. He then discarded his work boots and attempted to call a taxi.
Meanwhile, the Harrisonburg Police Department had responded to the silent alarm and were in the area searching for individuals who matched Hood’s description. An officer, seeing Hood outside the Walmart, approached him, but Hood began to walk away from the officer, telling him that his wife was in labor before eventually running away from the officer.
When officers caught up to him, they found the makeshift bag stuffed into Hood’s pants that contained $15,606 in cash and a gray glove that matched the one left with the bank manager.
United States Attorney Christopher R. Kavanaugh and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Division made the announcement.
The Harrisonburg Police Department and the Federal Bureau of Investigation investigated the case.
Assistant U.S. Attorneys Sean Welsh and Jordan E. McKay prosecuted the case.
Grant County man admits to drug and firearms chargesRead the Press Release
ELKINS, WEST VIRGINIA – Christian Adam Fisher, of Petersburg, West Virginia, has admitted to distributing a large amount of methamphetamineand having a firearm during the crime, United States Attorney William Ihlenfeld announced.
Fisher, 43, pleaded guilty today to one count of “Possession with Intent to Distribute Methamphetamine” and one count of "Possession of a Firearm in Futherance of a Drug Crime." Fisher admitted to having more than 50 grams of methamphetamine and having a 9mm pistol during the crime in February 2022 in Grant County.
Fisher faces at least 10 years and up to life in prison and a fine of up to $10 million for the drug charge and faces at least five years and up to life incarceration for the firearms charge . Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, investigated. The task force consists of the FBI, the Drug Enforcement Administration, West Virginia State Police, Mineral County Sheriff’s Office, Hampshire County Sheriff’s Office, Grant County Sheriff’s Office, the Hardy County Sherifff's Office, and the Keyser Police Department.
U.S. Magistrate Judge Michael John Aloi presided.
Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. - A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Janesville Woman Charged with CARES Act Fraud Scheme
Olivia Spellman, 35, Janesville, Wisconsin, is charged with seven counts of mail fraud. The indictment alleges that from August 2020 to April 2021, Spellman engaged in a fraud scheme to collect unemployment insurance (UI) benefits authorized by the Coronavirus Aid, Relief, and Economic Security Act. The indictment alleges that Spellman used the names of other individuals, as well as her own name, to obtain UI benefits from multiple state workforce agencies in Alabama, California, Colorado, Illinois, Indiana, Massachusetts, Nevada, Ohio, Texas, and Wisconsin. The indictment alleges that she attempted to cause a fraud loss amount of $1,026,508 and caused an actual fraud loss amount of $506,097 in requests and payments for unauthorized UI benefits from the aforementioned states.
If convicted, Spellman faces a maximum penalty of 20 years in federal prison on each count. The charges against her are the result of an investigation by the U.S. Postal Inspection Service and the U.S. Department of Labor - Office of Inspector General. Assistant U.S. Attorney Daniel Graber is handling the prosecution.
Madison Woman Charged with Wire Fraud & Money Laundering Related to CARES Act Loans
Sharon Johnson, 54, Madison, Wisconsin, is charged with two counts of wire fraud and one count of money laundering related to applications for Payroll Protection Program (PPP) loans available to small businesses for job retention and other expenses, and for an Economic Injury Disaster Loan (EIDL) for small businesses that experienced substantial financial hardship due to the COVID-19 pandemic, both authorized by the Coronavirus Aid, Relief, and Economic Security Act.
The indictment alleges that Johnson applied for and received two PPP loans and an EIDL for Gray Enterprises, LLC, a company incorporated by Johnson in 2018. The indictment alleges that Johnson provided fraudulent information in the applications concerning the number of people employed by Gray Enterprises and the company’s payroll and other expenses. The indictment alleges that the Internal Revenue Service has no records showing Gray Enterprises reported business income or employed any people in the tax years 2018 through 2020. The indictment alleges that Johnson received approximately $109,773 as a result of the fraudulent applications and that she used some of these proceeds for personal expenses.
If convicted, Johnson faces a maximum penalty of 20 years in federal prison on each wire fraud count and 10 years on the money laundering count. The charges against her are the result of an investigation by IRS Criminal Investigation, the Small Business Administration – Office of Inspector General, and the Federal Bureau of Investigation. Assistant U.S. Attorney Chadwick Elgersma is handling the prosecution.
Sun Prairie Man Charged with Producing Child Pornography
Robert D. Sutton, Jr., 51, Sun Prairie, Wisconsin, is charged with four counts of producing child pornography and four counts of committing these felony offenses involving a minor while he was an individual required by federal or other law to register as a sex offender. The indictment alleges that on four occasions between March 2019 and May 2021, Sutton used a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of the conduct. Specifically, the indictment alleges that Sutton used a cellular telephone to produce videos of a minor engaged in sexually explicit conduct.
If convicted, Sutton faces a mandatory minimum of 15 years and a maximum of 30 years in federal prison on each production charge, and a mandatory penalty of 10 years on each charge of committing a felony offense involving a minor while he was an individual required to register as a sex offender.
The charges against Sutton are the result of an investigation by the Sun Prairie Police Department and the Wisconsin Department of Justice Division of Criminal Investigation, with assistance from the Dane County District Attorney’s office. Assistant U.S. Attorney Elizabeth Altman is handling the prosecution.
Trempealeau County Man Charged with Producing Child Pornography
Stephen Hans Jenkins, 37, Trempealeau, Wisconsin, is charged with three counts of producing child pornography and two counts of committing a felony offense involving a minor while he was an individual required by federal or other law to register as a sex offender. The indictment alleges that on December 31, 2020, Jenkins used a minor to engage in sexually explicit conduct for the purpose of producing two visual depictions of the conduct and that the visual depictions were transferred in interstate commerce from Nevada or Utah to Wisconsin. The indictment also alleges that on July 4, 2017, he used a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of the conduct and that the visual depiction was transferred in interstate commerce from Utah to Wisconsin.
If convicted, Jenkins faces a mandatory minimum of 15 years and a maximum of 30 years in federal prison on each production charge, and a mandatory penalty of 10 years on each charge of committing a felony offense involving a minor while he was an individual required to register as a sex offender.
The charges against Jenkins are the result of an investigation by the Federal Bureau of Investigation, Village of Trempealeau Police Department, Trempealeau County Sheriff’s Office, Wisconsin Department of Justice Division of Criminal Investigation, and the Ogden City (Utah) Police Department. Assistant U.S. Attorney Elizabeth Altman is handling the prosecution.
Madison Man Charged with Distributing Methamphetamine
Matthew J. Yancey, 22, Madison, Wisconsin, is charged with five counts of distributing methamphetamine. The indictment alleges that Yancey distributed methamphetamine on five occasions in June and July 2022, and that one of the distributions involved 50 grams or more of methamphetamine.
If convicted, Yancey faces a mandatory minimum penalty of 5 years and a maximum of 40 years in federal prison on the count alleging the distribution of 50 grams or more of methamphetamine, and a maximum of 20 years on each of the other four distribution counts. The charges against him are the result of an investigation by the Madison Police Department. Assistant U.S. Attorney Kathryn Ginsberg is handling the prosecution.
California Woman Charged with Attempting to Possess Methamphetamine for Distribution
Heather Carter, 49, Santa Monica, California, is charged with attempting to possess 50 grams or more of methamphetamine with intent to distribute. The indictment alleges that she attempted to possess the methamphetamine on September 23, 2022.
If convicted, Carter faces a mandatory minimum penalty of 5 years and a maximum of 40 years in federal prison. The charge against her is the result of an investigation by the Crawford and Vernon County Sheriffs’ Offices, West Central Metropolitan Enforcement Group, Wisconsin Department of Justice Division of Criminal Investigation, U.S. Postal Inspection Service, and Drug Enforcement Administration. Assistant US. Attorney Chadwick Elgersma is handling the prosecution.
Mexican Citizen Charged with Illegally Reentering U.S.
Obed Sargento-Cruz, 30, a citizen of Mexico found in Portage County, Wisconsin, is charged with reentering the United States after previously being deported and removed. The indictment alleges that he was found in the United States on November 4, 2022.
If convicted, Sargento-Cruz faces a maximum penalty of 20 years in federal prison. The charge against him is the result of an investigation by U.S. Immigration and Customs Enforcement. Assistant U.S. Attorney Aaron Wegner is handling the prosecution.
Georgia Man Pleads Guilty to Conspiring to Steal USDA-Mortgaged HousesRead the Press Release
Jackson, Miss. – A Georgia man was convicted today before Senior U.S. District Judge David C. Bramlette for conspiring to steal houses from the United States Department of Agriculture, announced U.S. Attorney Darren J. LaMarca and New Orleans Special Agent in Charge Dax Roberson of United States Department of Agriculture, Office of the Inspector General.
According to court documents, Barry Martin, 47, originally from Tylertown, conspired with others to identify and steal USDA-mortgaged properties. The targeted properties were mortgaged through the Brookhaven office of USDA Rural Development, an agency which helps rural residents buy or rent safe, affordable housing, especially low and very-low income individuals. Co-conspirators had access to a list of abandoned, foreclosed, nearly-foreclosed, or similarly distressed USDA-mortgaged properties and would create fraudulent warranty deeds designed to convey ownership of those properties to co-conspirators and others. The fraudulent deeds included forged signatures from former homeowners, including at least one deceased individual. The fraudulent deeds were then filed in Chancery Courts around Mississippi with the intent to deprive the actual owners of the use and benefit of the properties and to deprive the United States Government of the actual value of the properties.
Martin pleaded guilty to a violation of Title 18, United States Code, Section 371, which criminalizes conspiracies against the laws of the United States. He is scheduled to be sentenced on March 9, 2023 and faces a maximum penalty of five years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The USDA OIG and the Federal Bureau of Investigation investigated the case.
Assistant U.S. Attorney Andrew W. Eichner is prosecuting the case.
Gary Man Sentenced to 46 Months in PrisonRead the Press Release
HAMMOND- Marlon Phillips, 29 years old, of Gary, Indiana, was sentenced by United States District Court Senior Judge James T. Moody after pleading guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Phillips was sentenced to 46 months in prison followed by 2 years of supervised release.
According to documents in the case, on July 1, 2021, while at a gas station in Gary, Indiana, Phillips possessed a loaded AK pistol style firearm. Phillips’ criminal history revealed he has prior Indiana felony convictions for robbery and resisting law enforcement, and as such is prohibited from possessing any firearm or ammunition.
This case was investigated by the Federal Bureau of Investigation’s Gang Response Investigative Team and the Gary Police Department. This case was prosecuted by Assistant United States Attorney Kevin F. Wolff.
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.