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Tuesday 8 November 2022
Federal Jury Finds Pasco County Man, Whose Victims Included Children and Foreign Nationals, Guilty of Human Trafficking ChargesRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that a federal jury has found David Alan Quarles (51, Odessa) guilty of conspiracy; sex trafficking by force, threats, fraud, and coercion; importation of an alien for the purpose of prostitution; transportation of an individual in interstate commerce for the purpose of prostitution; and using a facility of interstate commerce in aid of prostitution. Quarles faces a mandatory minimum of 15 years, and up to life, in federal prison. His sentencing hearing is scheduled for January 24, 2023. Quarles was indicted on January 13, 2021.
According to testimony and evidence presented at trial, for decades, Quarles recruited, enticed, harbored, transported, provided, obtained, advertised, and maintained young women and forced them to have sex with men in exchange for money. Quarles used physical violence, threats of violence, sexual abuse, psychological abuse, and financial abuse to force and coerce the victims to engage in commercial sex across the United States and throughout the Middle District of Florida. The evidence revealed Quarles frequented strip clubs and bikini bars to target and recruit young vulnerable women who were in difficult financial situations. Many of the victims lacked a stable home and had recently aged out of the foster care system. Quarles promised the victims he would provide everything they had been desiring – financial security, love and affection, and a family. Quarles and his conspirators directed the victims to engage in prostitution, posted advertisements featuring these victims, and arranged for the victims to travel across the United States to work. In addition to recruiting and obtaining women from the United States, Quarles also imported non-United States citizens into the country for the purposes of prostitution.
Quarles required that his victims send him the money that they earned or seek his permission to spend funds on necessities. The evidence demonstrated that while Quarles lacked any legitimate source of income, he benefited financially from the victims. He used their earnings to rent large homes, buy luxury clothing items, and purchase high-end cars, including a Range Rover and a Porsche Panamera. At trial, Quarles testified he had been working as a “pimp” since at least 1994 but denied needing to force or coerce the victims to engage in commercial sex.
As a result of his conviction, the United States is forfeiting multiple electronic devices that facilitated these offenses.
This case was investigated by Homeland Security Investigations and the U.S. Coast Guard Investigative Service. It is being prosecuted by Assistant United States Attorney Lisa M. Thelwell and former Assistant United States Attorney Colin McDonell. Assistant United States Suzanne Nebesky is handling the forfeiture.
This case resulted from the U.S. Attorney’s Office’s efforts to collaborate with local, state, and federal law enforcement agencies to detect, investigate, and prosecute coercive human trafficking in the Tampa area. This includes the trafficking of minors, forced labor, transnational sex trafficking, and sex trafficking of adults by force, fraud, or coercion. Information on the Department of Justice’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
Federal Indictment Charges Rockford Man with ArsonRead the Press Release
ROCKFORD — A Rockford man was indicted today by a federal grand jury on charges of arson for allegedly setting fire to two buildings in Rockford, Ill.
Marzavious Thomas, 27, of Rockford, was charged with two counts of maliciously damaging and destroying, and attempting to damage and destroy, by means of fire, two churches, both located on East State Street in Rockford, on or about October 19, 2022.
According to the indictment, on October 19, 2022, Thomas ignited a fire at two different churches. Following an investigation by law enforcement, Thomas was taken into custody and subsequently charged.
The charge was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, and Jeffrey L. Matthews, Acting Special Agent-in-Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives. The Rockford Police Department and Rockford Fire Department assisted in the investigation. The government is represented by Assistant U.S. Attorney Jessica S. Maveus.
The charge of maliciously damaging and destroying, and attempting to damage and destroy, by means of fire, real and personal property, carries a mandatory minimum penalty of 5 years in prison and a maximum penalty of up to 20 years in prison, in addition to a fine of up to $250,000. If convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Fake Oxycodone Pill Seller Sentenced to 10 Years in Federal PrisonRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that a Wilmington, Delaware man was sentenced last week to over 10 years in federal prison for possessing with intent to distribute fentanyl while also illegally possessing two firearms. U.S. District Judge Maryellen Noreika pronounced the sentence.
According to court documents, Mandingo Joseph, age 38, was arrested on December 23, 2021, by agents and officers with the Drug Enforcement Administration (“DEA”). DEA agents conducted a search of the defendant’s residence and found over 2,400 fake oxycodone pills containing fentanyl, fentanyl powder, pill cutting agents, and five digital scales, as well as two guns, one of which had a fully loaded extended magazine. Additionally, DEA agents intercepted a package the defendant mailed via the U.S. Postal Service containing over 1900 fake oxycodone tablets.
U.S. Attorney Weiss commented, “Hundreds of Delawareans succumb to fentanyl overdoses every year. For this reason, stopping the flow of fentanyl onto our streets remains a top priority of my office. Similarly, the illegal possession of firearms threatens the safety and security of our community. Such conduct will be prosecuted to the fullest extent of the law, and we will seek significant prison sentences for those who engage in this activity.”
“Fake pills containing illicit fentanyl are by far the biggest drug threat facing our communities today,” said Thomas Hodnett, Special Agent in Charge of the DEA Philadelphia Field Division. “That Joseph possessed 4,300 of these pills as well as two guns, one of which had an extended capacity magazine, shows the threat that Joseph posed to the public. For that he has received a lengthy term in federal prison. Learn more about the dangers of fake pills from DEA’s One Pill Can Kill campaign, which can be accessed at www.DEA.gov.”
Assistant U.S. Attorney Alexander P. Ibrahim prosecuted the case, which was investigated by the DEA Wilmington Resident Office. The U.S. Attorney’s Office also wishes to thank the U.S. Postal Inspection Service for its contributions to the case.
The U. S. Attorney’s Office is committed to helping those who suffer from substance abuse. If you need help, drug treatment information is available any time through the federal Substance Abuse and Mental Health Services Administration’s Treatment Referral Routing Service, found online at dpt2.samhsa.gov/treatment/ or by dialing 1.888.545.2600. Don’t let the pandemic stop you from beginning treatment.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 22-cr-47-MN.
Eight Individuals Indicted and Arrested for Bank and Wire Fraud, Money Laundering, and Aggravated Identity TheftRead the Press Release
SAN JUAN, Puerto Rico – On October 28, 2022, a federal grand jury returned a 40-count superseding indictment charging eight individuals with conspiracy to commit bank fraud, wire fraud, access device fraud, aggravated identity theft, and money laundering conspiracy. The United States Postal Inspection Service (USPIS) and the Federal Bureau of Investigation (FBI) are in charge of the investigation of the case.
The USPIS and the FBI have been investigating a fraudulent scheme whereby the debit cards of mostly elderly clients of Banco Popular de Puerto Rico have been used in connection with the fraudulent purchase and cashing of Postal Money Orders. Specifically, between in or about October 21, 2021, through the present, Ángel De La Rosa a.k.a. “Julio Zapata” and others, posing as either federal agents or bank officials, visited the residences of account holders claiming that their bank accounts had been compromised. Under the guise of helping restore the integrity of their respective accounts, De La Rosa and others asked victims to provide their ATM debit cards and PIN numbers.
Upon obtaining physical possession of the debit cards, De La Rosa—aided and abetted by Raisa Raymundo-Vargas, a.k.a. “Oleidy”; Adonis Marquez-Marte; Josué Figueroa-López, a.k.a. “Pachin”; Mirkin Espinosa-Salvador, a.k.a. “José Mesa”; Jan González-López; Nicole Figueroa-De Jesús; Edwin Peña-Valdez, a.k.a. “Pajarito,” and others would purchase Postal Money Orders at various U.S. Post Offices throughout Puerto Rico. The Postal Money Orders were negotiated into cash at U.S. Post Offices at a later time.
Defendants De La Rosa and Marquez-Marte made cash purchases of over $40,000 worth of jewelry at various locations in New York with proceeds obtained from the fraudulent purchases of Postal Money Orders and operated a jewelry store in San Juan, Puerto Rico as a means of laundering proceeds from the fraudulent scheme.
“The U.S. Attorney’s Office will continue to pursue and prosecute individuals that take advantage of others, including the elderly and other vulnerable members of our community,” said United States Attorney W. Stephen Muldrow. “Once again, we urge everyone to take steps to protect their personal information. Do not share your personal identification information with strangers. If you suspect that your bank account, credit card or ATH Móvil account has been compromised, call or visit your bank directly. That is the best way to avoid becoming a victim of a fraud scheme like the one involved in this case.”
“Elder fraud is a sophisticated endeavor, and it can happen to anyone. Victims will often hide their losses, even when they realize they’re being scammed, out of shame and fear of ridicule. This silence is what gives these perpetrators ample opportunity for illicit gain,” said Special Agent in Charge of the FBI’s San Juan Field Office, Joseph González. “We need to break that silence and the FBI is here to help. If you, or anyone you know, has been a victim or a witness to an elder fraud scheme, we urge you to call 787-987-6500 or submit a tip online, by visiting Tips.FBI.gov. Highlighting awareness is the key to avoid falling prey to these scams and can help you navigate a crisis such as this.”
“Protecting our senior citizens from criminals who target them is one of our highest priorities,” said Juan A. Vargas, Acting Inspector in Charge, U.S. Postal Inspection Service, Miami Division. “The U.S. Postal Inspection Service is committed to ending the exploitation of the most vulnerable members of our society.”
If convicted, the defendants face a maximum penalty of 30 years in prison and a mandatory consecutive sentence of at least two years for the aggravated identity theft charges. The proceeds of the fraud scheme are subject to criminal forfeiture and include a vehicle and approximately $619,344. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney Alexander Alum is prosecuting the case.
Anyone who believes that they have been a victim of identity theft, or wants information about preventing identity theft, may obtain helpful information and complaint forms on the Federal Trade Commission ID Theft Website at www.ftc.gov/idtheft.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Doctor Licensed in the District of Columbia and Virginia Pleads Guilty to Multiple Felonies Related to Unlawful Distribution of Controlled SubstancesRead the Press Release
WASHINGTON – Dr. Robert M. Cao, 39, of Lafayette, Louisiana, and previously of Falls Church, Virginia, pleaded guilty today in the U.S. District Court for the District of Columbia to five felony counts of unlawful distribution of a controlled substance outside the scope of his professional practice. As detailed in court documents, the charges pertain to Cao prescribing various narcotic pain medications in the months and days leading up to an overdose death in Virginia last year.
The announcement was made by U.S. Attorney Matthew M. Graves, Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division, and Kevin Davis, Chief of the Fairfax County, Virginia Police Department.
The Honorable Tanya S. Chutkan scheduled sentencing for Feb. 22, 2023.
According to court documents, Cao is a physician who was licensed to practice medicine in the District of Columbia and Virginia. As part of his guilty plea, Cao admitted that on at least five occasions in 2021, he knowingly and intentionally wrote a man identified in court documents as “V.C.” prescriptions for oxycodone and hydrocodone, Schedule II controlled substances with a high potential for abuse. Cao provided the narcotic prescriptions to the victim without having any doctor-patient relationship with him, without any physical examination, diagnosis, or treatment plan, and knowing that the victim had no medical condition that would necessitate such prescriptions.
On May 31, 2021, first responders were dispatched to a Fairfax, Virginia residence in response to a 911 call for assistance regarding “V.C.,” after his girlfriend found him cold and non-responsive. He was pronounced deceased under suspicious circumstances.
A subsequent autopsy report documented the cause of death as acute combined oxycodone and ethanol poisoning. On the nightstand next to where “V.C.” was found were prescription bottles, including one containing Percocet (a brand name of the narcotic analgesic oxycodone/acetaminophen) pills filled on May 23, 2021. Cao was the prescribing doctor listed on the bottle.
Court filings also detail text message exchanges between Cao and “V.C.,” including discussions about Cao prescribing narcotic pain medications to “V.C.” in exchange for agreeing to give Cao a kickback of some of the pills he had prescribed, and meetings between the two, including a meeting in a parking lot on the night before the man’s death so Cao could get a portion of the narcotic pills from “V.C.”
As detailed in court documents, Cao took several steps to avoid detection from law enforcement and regulatory authorities. For example, he advised the victim not to create a paper trail, and to fill the prescriptions at times when they were least likely to be questioned by pharmacies. Cao also hid the pad that he used to write the man prescriptions, which Cao took from a District of Columbia cosmetic office where he previously worked, at his home inside a hollowed-out container made to look like a diary.
After learning of the victim’s untimely death, Cao created fraudulent backdated medical records to make it appear that Cao had provided legitimate prescriptions to the victim as part of a lawful doctor-patient relationship.
This case was investigated by the FBI’s Washington Field Office and the Fairfax County Police Department.
The case is being prosecuted by Assistant U.S. Attorneys Anne P. McNamara and Christine Macey of the U.S. Attorney’s Office for the District of Columbia.
Dekalb Man Pleads Guilty to Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – A Dekalb, Mississippi man pleaded guilty to possession of a firearm by a convicted felon, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court documents, Cordexster Antonio Grace, 27, was found in possession of a firearm by a Lauderdale County Sheriff’s Deputy on March 12, 2021, during a traffic stop. Grace had a .22 caliber revolver in his jacket pocket. Grace had a prior felony conviction for aggravated assault and was under the supervision of the Mississippi Department of Corrections at the time. As a convicted felon it is contrary to federal law for Grave to possess any firearm.
Grace pleaded guilty to a violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2) which criminalize the possession of firearms by convicted felons. He is scheduled to be sentenced on February 16, 2022 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 Lauderdale County Sheriff’s Office and the ATF are investigating the case.
Assistant U.S. Attorney Charles W. Kirkham 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.
Convicted Felon Pleads Guilty to Fentanyl Distribution Offenses and Possessing a Loaded FirearmRead the Press Release
BOSTON – A Somerville man pleaded guilty yesterday in connection with distributing and possessing fentanyl while illegally in possession of a loaded firearm.
Tevon Ngomba, 29, pleaded guilty to one count of distributing and possessing with intent to distribute 40 grams or more of fentanyl, one count of possessing with intent to distribute fentanyl and one count of possessing a firearm and ammunition as a convicted felon. U.S. District Court Judge Indira Talwani scheduled sentencing for Feb. 1, 2023. Ngomba was indicted by a federal grand jury in September 2020.
On July 16, 2020, less than two months following his release from state prison, Ngomba distributed more than 40 grams of fentanyl to an individual in exchange for $1,800 in a recorded drug transaction.
On Aug. 3, 2020, Ngomba purported to sell a loaded firearm to the same individual in exchange for $1,500 in another recorded transaction. During the deal, which occurred in the individual’s vehicle, Ngomba loaded the firearm and pretended to leave it under the driver’s seat before exiting the vehicle. Instead, Ngomba took both the $1,500 cash from the individual as well as the firearm he had pretended to sell. Ngomba did not realize, however, that he accidentally left his cellphone in the individual’s vehicle which he preceded to chase down. Law enforcement immediately apprehended Ngomba who was still clutching the $1,500 in his hand.
During a subsequent search of Ngomba’s vehicle, a loaded Ruger firearm with an obliterated serial number was found in the trunk as well as 16 grams of fentanyl and a second cellphone containing drug-related communications in the glove compartment. The cellphone Ngomba left in the individual’s car was found to contain images from the night before of Ngomba posing with what appeared to be the same firearm found in his vehicle.
The charge of possession with intent to distribute and distribution of 40 grams or more of fentanyl provides for a sentence of at least five years and up to 40 years in prison, at least four years and up to life of supervised release and a fine of up to $5 million. The charge of possession with intent to distribute fentanyl provides for a sentence of up to 20 years in prison, at least three years and up to life of supervised release and a fine of up to $1 million. The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, New England Field Division; Somerville Police Chief Charles Femino; and Somerville Housing Authority Chief of Police Daniel Meade made the announcement. Assistant U.S. Attorneys Kaitlin R. O’Donnell and Fred M. Wyshak, III of Rollins’s Organized Crime and Gang Unit are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Convicted Felon Pleads Guilty to Crack Cocaine DistributionRead the Press Release
BOSTON – A Boston man previously convicted of numerous state drug distribution charges pleaded guilty today to distributing cocaine base (crack cocaine).
Jerry Cooper, a/k/a “Jerkz,” 29, pleaded guilty to one count of distribution and possession with intent to distribute cocaine base. U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for March 9, 2023. Lee was indicted by a federal grand jury in October 2021.
This case arose from a series of controlled purchases of crack cocaine from Cooper, who, in September 2021, was recorded conducting a controlled purchase of crack cocaine.
The charge of distribution and possession of a controlled substance with intent to distribute provide for a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Boston Police Commissioner Michael Cox made the announcement today. The investigation was led by the Federal Bureau of Investigation’s Metro Boston Gang Task Force. Assistant U.S. Attorney John T. Dawley, Jr. of the Organized Crime & Gang Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Clearwater Man Sentenced to More Than Five Years in Federal Prison for Bank Fraud Conspiracy and Aggravated Identity TheftRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced Christopher Alholm (39, Clearwater) to five years and six months in federal prison for conspiracy to commit bank fraud and aggravated identity theft. As part of his sentence, the court also entered an order of forfeiture in the amount of $5,000, the proceeds of the charged criminal conduct. Alholm had pleaded guilty plea on August 4, 2022.
According to court documents, in March 2019, Alholm conspired with others to defraud a Federal Deposit Insurance Corporation insured bank (“Bank 1”) with branches located throughout the Middle District of Florida. Bank 1 was a member institution of the Federal Home Loan Bank of Atlanta. Alholm received a victim bank customer’s (“Customer 1’s”) stolen Home Equity Line of Credit (“HELOC”) account number and personally identifying information (“PII”), including Customer 1’s name, signature, date of birth and Social Security number from a co-conspirator. Alholm then used the stolen PII to impersonate Customer 1 at a Bank 1 branch located in Spring Hill, to conduct a fraudulent $495,000 advance of funds from the Customer 1’s HELOC account to an intermediary account at Bank 1. After Alholm completed the fraudulent advance of funds, another co-conspirator wired the stolen HELOC funds from the intermediary account to offshore bank accounts.
This case was investigated by the Federal Housing Finance Agency – Office of Inspector General and the Florida Department of Law Enforcement. It was prosecuted by Special Assistant United States Attorney Chris Poor. The forfeiture is being handled by Assistant United States Attorney Suzanne C. Nebesky.
Cedar Rapids Meth and Heroin Dealer Sentenced to Federal PrisonRead the Press Release
A Cedar Rapids woman who distributed methamphetamine and heroin was sentenced November 7, 2022, to two years in federal prison.
Breanna Lynn Luna, age 42, from Cedar Rapids, Iowa, received the prison term after a June 23, 2022 guilty plea to one count of possession with intent to distribute a controlled substance.
Evidence disclosed at sentencing showed that, between January 2020 and March 2020, Luna distributed methamphetamine and heroin in Cedar Rapids, Iowa. On March 4, 2020, law enforcement officers stopped a vehicle in which Luna was a passenger. During the stop, officers recovered methamphetamine from Luna’s purse. Luna was then arrested and transported to jail, where she was subject to a search. During the search, deputies recovered methamphetamine from Luna’s person.
Luna was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Luna was sentenced to 24 months’ imprisonment, and she must also serve a three‑year term of supervised release after the prison term. There is no parole in the federal system.
Luna is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorneys Emily Nydle and Dillan Edwards and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-00048.
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Cedar Rapids Man Who Transported over 100 Pounds of Methamphetamine from California to Iowa Pleads GuiltyRead the Press Release
A man who hauled loads of 30 to 60 pounds of methamphetamine from California to Iowa pled guilty today in federal court in Cedar Rapids.
Albert Henry Bailey, age 53, from Cedar Rapids, Iowa, was convicted of one count of conspiracy to distribute a controlled substance.
At the plea hearing, Bailey admitted he conspired with others to distribute methamphetamine in Iowa. Evidence at a prior hearing showed that during a wiretap investigation conducted by the Drug Enforcement Administration in Cedar Rapids in late 2021 and early 2022, Bailey was discovered to be a driver for a group of individuals who were purchasing ice methamphetamine in California and selling it in eastern Iowa. Bailey traveled to California and then drove between 30 and 60 pounds of methamphetamine back to Iowa, where other individuals would sell it. In February 2022, intercepted communications over the wiretap indicated that Bailey would be transporting methamphetamine from California to Iowa. Investigators tracked Bailey’s vehicle and stopped it in York County, Nebraska. During a search of the vehicle, investigators located and seized approximately 60 pounds of ice methamphetamine.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Bailey was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Bailey faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and a lifetime of supervised release following any imprisonment.
The case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the DEA Task Force in Cedar Rapids and the Federal Bureau of Investigation. The DEA Task Force in Cedar Rapids consists of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; and the Iowa Division of Narcotics Enforcement. The case is being prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 22‑CR‑87‑CJW‑MAR.
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Cedar Rapids Man Pleads Guilty to Being a Prohibited Person in Possession of a FirearmRead the Press Release
A prohibited person who possessed a firearm pled guilty on November 7, 2022, in federal court in Cedar Rapids, Iowa.
Tylon Randolph, age 21, from Cedar Rapids, was convicted of one count of being a prohibited person in possession of a firearm. At the plea hearing, Randolph admitted that, on June 1, 2022, he possessed a Hi-Point 9 mm pistol after having been convicted of a felony and while he was an unlawful user of marijuana and alprazolam.
Sentencing before Chief United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Randolph remains in custody of the United States Marshal pending sentencing. Randolph faces a possible maximum sentence of ten years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and is being investigated by the Cedar Rapids Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 22-71.
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Campbell County Man Sentenced to 32 Months for Illegal Possession of a FirearmRead the Press Release
COVINGTON, Ky. – A Bellevue, Ky., man, Perrin George March V, 27, was sentenced in federal court on Tuesday, to 32 months in prison, by U.S. District Judge David Bunning, for illegal possession of a firearm.
According to March’s plea agreement, law enforcement executed a federal search warrant at his residence and found a fully loaded AK-47 pistol, ammunition, and large capacity magazines. March admitted that he knew he was currently subject to a domestic violence order and was prohibited from possessing a firearm or ammunition.
March pleaded guilty in July 2022.
Under federal law, March must serve 85 percent of his prison sentence. Upon his release, his three-year term of supervision by the U.S. Probation Office will commence.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office, jointly announced the sentence.
The investigation was conducted by the FBI. The United States was represented by Assistant U.S. Attorney Emily Greenfield.
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Bloomington Man’s Guilty Plea Marks 16th Felony Conviction in Two Medicaid Fraud Conspiracies that Totaled over $5.4 Million in Fraudulent BillingRead the Press Release
ST. PAUL, Minn. – A Bloomington man has pleaded guilty to his role in a $1.4 million Medicaid fraud conspiracy, announced United States Attorney Andrew M. Luger.
According to court documents, Abdirahman Yonis, 35, was a mental health practitioner who worked with Minnesota Multicultural Counseling Clinic, a clinic with offices in St. Paul, Brooklyn Park, and Roseville. As part of the scheme, Yonis and his co-conspirators knowingly prepared and signed client progress notes for mental health services—and related interpreter verification forms—that were not actually rendered and submitted claims to the Minnesota Medicaid program for reimbursement of mental health services and the related interpretation of those services. As a result of the false and fraudulent claims, the Medicaid program paid more than $1.4 million for services that never occurred.
Yonis pleaded guilty yesterday before U.S. District Judge Eric C. Tostrud to one count of wire fraud. A sentencing hearing will be scheduled at a later time.
In 2021, the United States Attorney’s Office charged two separate cases (21-cr-56 and 21-cr-57) that involved over $5.4 million in fraudulent Medicaid billing for mental health services and the purported interpretation of those services. Since that time, 15 defendants have pleaded guilty, one has been convicted at trial, and three remain fugitives from law enforcement. The convicted defendants will be required to pay restitution to the Medicaid program for the amounts paid out on their fraudulent billing practices.
This case is the result of an investigation conducted by the FBI; the U.S. Department of Health and Human Services, Office of Inspector General; and the Minnesota Attorney General Office’s Medicaid Fraud Control Unit.
Assistant U.S. Attorneys Angela M. Munoz and Jordan L. Sing are prosecuting the case.
Baltimore Robber Sentenced to More Than 10 Years in Federal Prison for Possession of a Firearm in Furtherance of Drug Trafficking and a Related Drug ChargeRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander today sentenced Billy Wesson, age 20, of Baltimore, Maryland, late yesterday to 125 months in federal prison, followed by five years of supervised release, for possession with intent to distribute cocaine and to possession of a firearm in furtherance of a drug trafficking crime. Wesson also participated in a series of armed robberies of convenience stores.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Michael Harrison of the Baltimore Police Department.According to his guilty plea, between August 4 and August 7, 2020, Wesson and a co-conspirator committed three armed robberies of convenience stores. In the first robbery on August 4, the store clerk began to run to the rear of the store when she saw the robbers enter. Wesson chased after the employee, caught up with her and walked her back to the cash register, which she opened at gunpoint. In the second robbery on August 6, Wesson approached a store employee from behind and placed the gun to the back of the employee’s head, telling her to “go to the register and open it.” Wesson walked the employee to the register area and again ordered her to open the register, which she did. In the third robbery on August 7, which was committed less than an hour after the second robbery, Wesson pointed a gun at a store employee immediately upon entering the store. Wesson ordered the employee to open the register, which he did, but the employee could only open the first cash drawer and not the second drawer. As in the two previous robberies, Wesson took the cash from the drawer and fled the store.
As detailed in his plea agreement, on the evening of August 8, 2020, four Baltimore Police Department officers were conducting routine patrol in an unmarked vehicle in 5100 block of Midwood Avenue in the Winston-Govans neighborhood in Northwest Baltimore. There was a party in the area and individuals were in the street and on the sidewalk. The officers saw an individual, later identified as Wesson, wearing a satchel across the right side of his body and conducting a “security check,” indicating that Wesson was armed.
The officers stopped and began to get out of their car to approach Wesson. Wesson fled, followed by the four officers. As he ran from the officers, Wesson threw his satchel on the sidewalk not far from one of the homes on Midwood Avenue, where it was almost immediately recovered by law enforcement. The satchel was searched and was found to contain a loaded firearm that matched the gun used in the robberies. The satchel also contained multiple baggies of cocaine packaged for street-level distribution.
Wesson was caught and searched. On Wesson’s person, law enforcement recovered $279 in cash—proceeds from his drug trafficking—and suspected marijuana. Wesson was arrested and subsequently admitted that he possessed the firearm in connection with and in furtherance of his illegal business selling cocaine and that he knew he was prohibited from possessing a firearm or ammunition.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN, an evidence-based program proven to be effective at reducing violent crime, is the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.United States Attorney Erek L. Barron commended the FBI and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Paul A. Riley and Colleen McGuinn, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Anderson County Man Sentenced to 276 Months for the Production of Child Sexual Abuse MaterialRead the Press Release
FRANKFORT, Ky.— A Lawrenceburg, Ky., man, David Allen Kiper, 34, was sentenced to 276 months in federal prison on Tuesday, by U.S. District Judge Gregory VanTatenhove, for the production of child sexual abuse material.
According to Kiper’s plea agreement, on March 31, 2021, law enforcement received a referral from the Australian Federal Police, in reference to a subject posting on a Russian website associated with the sexual exploitation of children. In an interview, Kiper admitted to using the Russian website to download sexually explicit images of children from the internet. Kiper further admitted that he had multiple sexually explicit images of children on his phone and to having a sexual interest in children. Kiper also admitted to producing a video of himself sexually abusing a three-year old minor.
Kiper pleaded guilty in August 2022.
Under federal law, Kiper must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for life.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jerry Templet, Special Agent in Charge, Department of Homeland Security - Homeland Security Investigations; and Col. Phillip Burnett, Commissioner, Kentucky State Police, jointly announced the sentence.
The investigation was conducted by the Department of Homeland Security - Homeland Security Investigations and KSP. The United States was represented by Assistant U.S. Attorney Erin Roth.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the 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.
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American Contractor Pleads Guilty in Death of U.S. Military DoctorRead the Press Release
A former American military contractor pleaded guilty today to involuntary manslaughter for fatally striking an active duty U.S. Air Force medical doctor with a forklift as she was walking on Al Dhafra Airbase in the United Arab Emirates.
According to court documents, on Nov. 27, 2020, Ari Taylor, 32, of Roxboro, North Carolina, was operating a forklift to deliver pallets of water on Al Dhafra Airbase in his role as a civilian employed by a U.S. military contractor. He drove the forklift through a space shared by vehicles and pedestrians, between a medical clinic and living quarters. Taylor acknowledged that pedestrians were frequently present in this area.
At the time of the fatal collision, Taylor was distracted while using his cell phone and never saw Captain Kelliann Leli. A crash reconstruction expert concluded that Taylor had almost nine seconds to prevent the crash, but Taylor admitted that he did not see Capt. Leli and failed to take any steps to avoid striking her with the forklift.
Taylor pleaded guilty to one count of involuntary manslaughter. He is scheduled to be sentenced on April 25, 2023. 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 Sandra J. Hairston for the Middle District of North Carolina, and Brigadier General Terry L. Bullard of the U.S. Air Force Office of Special Investigations made the announcement.
The U.S. Air Force Office of Special Investigations conducted the investigation with assistance from the FBI.
Senior Trial Attorney Frank G. Rangoussis and Trial Attorney Elizabeth Nielsen of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Terry Meinecke for the Middle District of North Carolina are prosecuting the case.
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American Contractor Pleads Guilty in Death of U.S. Military DoctorRead the Press Release
A former American military contractor pleaded guilty today to involuntary manslaughter for fatally striking an active duty U.S. Air Force medical doctor with a forklift as she was walking on Al Dhafra Airbase in the United Arab Emirates.
According to court documents, on Nov. 27, 2020, Ari Taylor, 32, of Roxboro, North Carolina, was operating a forklift to deliver pallets of water on Al Dhafra Airbase in his role as a civilian employed by a U.S. military contractor. He drove the forklift through a space shared by vehicles and pedestrians, between a medical clinic and living quarters. Taylor acknowledged that pedestrians were frequently present in this area.
At the time of the fatal collision, Taylor was distracted while using his cell phone and never saw Captain Kelliann Leli. A crash reconstruction expert concluded that Taylor had almost nine seconds to prevent the crash, but Taylor admitted that he did not see Capt. Leli and failed to take any steps to avoid striking her with the forklift.
Taylor pleaded guilty to one count of involuntary manslaughter. He is scheduled to be sentenced on April 25, 2023. 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 Sandra J. Hairston for the Middle District of North Carolina, and Brigadier General Terry L. Bullard of the U.S. Air Force Office of Special Investigations made the announcement.
The U.S. Air Force Office of Special Investigations conducted the investigation with assistance from the FBI.
Senior Trial Attorney Frank G. Rangoussis and Trial Attorney Elizabeth Nielsen of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Terry Meinecke for the Middle District of North Carolina are prosecuting the case
Allahjuan Calhoun Pleads Guilty to Failure to Appear, Admits to Violating Supervised ReleaseRead the Press Release
The United States Attorney for the District of Vermont announced that Allahjuan Calhoun, 32, of Yonkers, New York, pleaded guilty today in United States District Court in Burlington to a charge of failure to appear. District Judge Christina Reiss ordered that Calhoun be detained pending his sentencing next March 21. At today’s hearing, Calhoun also admitted that he violated conditions of his federal supervised release on a related case. Based on that admission, Judge Reiss sentenced Calhoun to six months of imprisonment. Calhoun has already served about five and one-half months since his arrest on a bench warrant last summer.
According to court records, in 2020, Calhoun pleaded guilty in Vermont to being a felon in possession of a firearm. Judge Reiss sentenced Calhoun to 26 months of imprisonment, to be followed by a two-year period of supervised release. Calhoun completed his prison term in 2021. Soon after, the U.S. Probation Office filed a petition to revoke Calhoun’s supervised release because, among other things, he repeatedly smoked marijuana in violation of his conditions.
The court scheduled a final hearing on the motion to revoke Calhoun’s supervised release for March 22, 2022 in Burlington. Although he was aware of the court date, Calhoun failed to appear as required and the court issued a bench warrant for his arrest. Calhoun was arrested on the warrant in late June. On October 27, a grand jury returned a one-count indictment charging Calhoun with failure to appear. Calhoun pleaded guilty to that charge at today’s arraignment.
Calhoun faces up to five years of imprisonment and a fine of up to $250,000. The actual sentence will be determined with reference to federal sentencing guidelines. By law, any sentence on the failure to appear charge must run consecutively to Calhoun’s supervised release violation sentence.
Calhoun is represented by Assistant Federal Defender Mary Nerino. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Albemarle County Man Pleads Guilty to Hobbs Act RobberyRead the Press Release
CHARLOTTESVILLE, Va. – An Albemarle County man pled guilty yesterday to breaking into a private home while armed in October 2021.
Traevon Gray, 20, pleaded guilty to one count of Hobbs Act Robbery. At sentencing, Gray faces up to 20 years in prison.
“The Department of Justice prioritizes the investigation and prosecution of violent crime, especially those involving firearms,” United States Attorney Christopher R. Kavanaugh said today. “My Office will continue to work with our local, state, and federal partners to reduce violent crime in our communities and make the Western District of Virginia safer for all residents.”
“Violent crime instills fear by threatening the safety and security of our communities. As such, the FBI Richmond Safe Streets Task Force worked with local and federal partners to identify and hold the defendants accountable for their actions. Violent crime will not be tolerated in any form. We will continue to take steps to identify those persons who choose to threaten our communities and encourage anyone who has knowledge of such acts to contact authorities,” said Special Agent in Charge Stanley M. Meador of the FBI Richmond Division.
“The Albemarle County Police Department remains committed to collaborating with our local, state, and federal law enforcement partners, like the United State Attorney’s Office and the Federal Bureau of Investigation. This commitment to cooperation is vital to keeping the citizens, residents, and visitors of Albemarle County safe,” said Colonel Sean Reeves, Chief of Police for Albemarle County.
According to court documents, on the morning of October 27, 2021, Gray and co-defendant Damon Williams broke into the victim’s Albemarle County home through a backdoor. While both Gray and Williams were armed with firearms, they forced the victim from his upstairs bedroom into the kitchen where they ordered him to lie face down on the floor.
After stealing various items, Gray bound the victim’s hands with tape, punched him in the face, and pushed him into the kitchen pantry. The men stole two pounds of marijuana, several thousand dollars, a firearm, and other drug paraphernalia.
After the robbery, Gray and Williams fled to Spartanburg, South Carolina where they divided up the robbery proceeds.
Williams is scheduled to plead guilty to similar charges next week in federal court.
The FBI’s Safe Streets Task Force and the Albemarle County Police Department investigated the case.
Assistant U.S. Attorney Heather L. Carlton is prosecuting the case.
Albany Woman Sentenced to Prison for COVID-19 Relief FraudRead the Press Release
ALBANY, NEW YORK – Debra Hackstadt, age 68, of Albany, was sentenced today to 16 months in prison for fraudulently obtaining 32 government-backed loans meant for businesses struggling with the financial effects of the coronavirus pandemic.
The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
United States Attorney Carla B. Freedman stated: “Today’s sentence holds Debra Hackstadt accountable for a prolific fraud. She took advantage of an economically devastating pandemic and stole money that was earmarked for legitimate businesses struggling to stay afloat. With our law enforcement partners, we will continue to investigate and prosecute those who have stolen from pandemic relief programs.”
FBI Special Agent in Charge Janeen DiGuiseppi stated: “Debra Hackstadt defrauded government loan programs established to help small businesses recover from the devastating financial impacts of the pandemic. By lying to obtain multiple loans, Hackstadt took over a million dollars away from deserving companies who were in desperate need of support. Today’s sentence ensures she will answer for her criminal acts. The FBI, together with our law enforcement partners, will continue to investigate and hold accountable anyone looking to steal money from these critical government programs.”
Hackstadt pled guilty to wire fraud on May 19, 2022. She admitted that between April 30, 2020 and June 11, 2021, she fraudulently obtained $1,615,546 from two pandemic relief loan programs – the Paycheck Protection Program (“PPP”), whose loans are issued by private financial institutions and backed by the federal government, and Economic Injury Disaster Loans (“EIDLs”), which are issued directly by the U.S. Small Business Administration (SBA). These loans were issued to Hackstadt herself, certain of her family members and acquaintances, and several companies controlled by Hackstadt or her family members.
United States District Judge Glenn T. Suddaby ordered Hackstadt to pay $1,696,324.96 in restitution and to forfeit an additional $254,812, representing the amount of money she personally obtained from the fraud. He also imposed a 2-year term of post-imprisonment supervised release.
Hackstadt committed the fraud by lying to the SBA and various PPP lenders on loan applications, including by making up and grossly overstating the number of employees and payrolls of the companies and sole proprietorships for which she obtained loans. Many of the PPP applications also included false tax documents that Hackstadt created as part of the scheme. In total, Hackstadt’s scheme resulted in the issuance of 27 PPP loans and five EIDLs.
Hackstadt also admitted that in addition to these loans, she fraudulently obtained two other business loans from private lenders. She fraudulently obtained a $42,290 loan in October-November 2019, and promptly defaulted on it, and fraudulently obtained a $48,500 loan in June 2021, and promptly defaulted on it.
This case was investigated by the FBI, and was prosecuted by Assistant U.S. Attorneys Michael Barnett and Joshua R. Rosenthal.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Monday 7 November 2022
Wichita Man Indicted for Child PornRead the Press Release
WICHITA, KAN. – A federal grand jury in Wichita returned an indictment charging a Kansas man with one count of sexual exploitation of a child -production of child pornography, three counts of distribution of child pornography, and one count of possession of child pornography.
According to court documents, Jimmy Lynn, 50, of Wichita is accused of using a young child to create sexually explicit images, and he’s accused of distributing child porn.
Homeland Security Investigations (HSI), the Kansas Internet Crimes Against Children Task Force (ICAC), and Wichita Police Department are investigating the case.
Assistant U.S. Attorney Jason Hart is prosecuting the case.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."OTHER INDICTMENTS
Matthew Albretch, 31, of Wichita was indicted on two counts of aggravated identity theft. The U.S. Secret Service is investigating the case. Assistant U.S. Attorney Alan Metzger is prosecuting the case.
Brian Shrout, 56, of Wichita was indicted on one count of failure to register as a sex offender. The U.S. Marshal Service is investigating the case. Assistant U.S. Attorney Molly Gordon is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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West Virginia Man Sentenced to Federal Prison for Meth ConvictionRead the Press Release
A man who possessed over a pound and a half of methamphetamine was sentenced today to more than 19 years in federal prison.
Robert Charles Shelton, age 42, from Parkersburg, West Virginia, received the prison term after a May 2, 2022 guilty plea to one count of possession with intent to distribute methamphetamine.
At the plea and sentencing hearings, evidence showed that Shelton was attempting to burglarize a home in Cedar County, Iowa, when relatives of the homeowner found him. Shelton attempted to flee in his car but became stuck in a field. Shelton abandoned his car and fled from the house on foot before law enforcement officers arrived. The following morning, law enforcement officers received a call of a person walking near the Cedar Valley Bridge. There, an officer found Shelton carrying a bag and a flashlight. In the bag, officers located over a pound and a half of methamphetamine and a BB handgun.
Shelton was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Shelton was sentenced to 235 months’ imprisonment. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system. Shelton is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Adam J. Vander Stoep and investigated by the Cedar County Sheriff’s Office, Iowa State Patrol, Iowa Division of Narcotics Enforcement, and Muscatine County Drug Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-17.
Washington Man Pleads Guilty to Making Interstate Threats and Hate CrimeRead the Press Release
A Washington man pleaded guilty today in U.S. District Court in Seattle to making interstate threats and committing a hate crime for interference with a federally protected activity. The defendant has been in federal custody since his arrest on July 22.
According to the plea agreement, Joey David George, 37, of Lynwood, telephoned multiple grocery stores in Buffalo, New York, and threatened to shoot Black people in the stores. George told the staff at the store to “take him seriously,” and ordered the store to clear out the customers, as he was “nearby” and “preparing to shoot all Black customers.” One store closed. The threats followed a racially-motivated shooting at another Buffalo grocery store in May. Law enforcement traced the phone number and identified George as the person who made the call.
In addition to the calls to Buffalo, George admits that in May, he called a restaurant in San Bruno, California. In that call, George allegedly threatened to shoot Black and Hispanic patrons in the restaurant. He told law enforcement that he made the threat to strike fear in the Bay Area Black community.
On Sept. 11, 2021, George called a cannabis dispensary in Rockville, Maryland, and used racial slurs as he threatened to shoot and kill Black people at the business. George admitted his racial hate to local law enforcement who used caller ID to trace the call. The dispensary shut down and hired extra security, causing a loss of over $50,000. George also called a Denny’s restaurant in Enfield, Connecticut, and threatened Black patrons at the restaurant on the same day.
In his plea agreement George admitted he made threatening telephone calls from at or near his home in Lynnwood, to grocery stores in Buffalo, New York, restaurants in California and Connecticut, and a marijuana dispensary in Maryland. Sentencing is scheduled in front of U.S. District Judge Ricardo S. Martinez on Dec.16.
In his plea agreement George agrees to pay restitution to the impacted businesses.
Making interstate threats in punishable by up to five years in prison. Interfering with a federally protected activity is punishable by up to 10 years in prison.
Prosecutors have agreed to limit their sentencing recommendation to the high end of the federal sentencing guidelines range. Judge Martinez is not bound by prosecutors’ recommendations and can impose any sentence up to the 10-year statutory maximum after considering the sentencing guidelines and other statutory factors.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Nick Brown for the Western District of Washington and Special Agent in Charge Richard A. Collodi of the FBI Seattle Field Office made the announcement.
The FBI Seattle Field Office investigated the case, with the assistance of multiple local police departments. Assistant U.S. Attorneys Thomas Woods and Rebecca Cohen for the Western District of Washington prosecuted the case in consultation with the Justice Department’s Civil Rights Division.
United States Attorney Will Thompson to Hold Press ConferenceRead the Press Release
CHARLESTON, W.Va. – United States Attorney Will Thompson, along with Drug Enforcement Administration (DEA), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and other law enforcement officials will hold a press conference at 2 p.m. on Monday, November 7, 2022, to announce a major milestone resulting from a large-scale drug trafficking and firearms investigation known as “Woo Boyz” (U.S. vs. Williams et al., 2:21-cr-32).
WHERE: Robert C. Byrd United States Courthouse, 300 Virginia Street East, Charleston
WHEN: Monday, November 7, 2022, at 2 p.m.
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.
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United States Attorney Announces Initiative for Addressing Environmental Justice and Public Health ConcernsRead the Press Release
OKLAHOMA CITY – United States Attorney Robert J. Troester announces an initiative to address environmental justice and public health concerns in the Western District of Oklahoma. An Environmental Justice Coordinator has been designated to coordinate the U.S. Attorney’s Office’s efforts in this important area. Members of the public may visit the website of the U.S. Attorney’s Office at https://www.justice.gov/usao-wdok for information regarding where to report environmental violations or public health issues; and how to report such concerns to the Environmental Justice Coordinator.
"Protecting our community requires that we safeguard our environment and public health through the vigorous enforcement of federal laws," said U.S. Attorney Robert J. Troester. "We encourage citizens to report concerns that create a danger to themselves and fellow Oklahomans. My office will work closely with regulatory authorities and investigative agencies who specialize in environmental and public health enforcement to take appropriate action where necessary."
The Office’s reporting procedures are part of the Department of Justice’s Comprehensive Environmental Justice Enforcement Strategy, which seeks to advance environmental justice through timely and effective remedies for environmental violations and injuries to natural resources in "underserved communities that have been historically marginalized and overburdened, including low-income communities, communities of color, and Tribal and Indigenous communities." The Department of Justice enforces the Nation’s civil and criminal environmental laws, including the Clean Air Act, Clean Water Act, and hazardous waste laws. The Department also protects natural resources and handles cases relating to tribal rights and resources. Working with its Department of Justice partners, the U.S. Attorney’s Office seeks to secure environmental justice for all communities, to ensure that everyone enjoys the same degree of protection from environmental and health hazards, and to protect equal access to a healthy environment in which to live, learn, play, and work.
If you have information or concerns regarding the potential violation of any federal environmental law and its impact upon people, communities, or natural resources within our district, please share them with the office by email or mail.
Email:
Mail:
U.S. Attorney’s Office, Western District of Oklahoma
Attn: Environmental Justice and Public Health
210 West Park Avenue, Suite 400, Oklahoma City, Oklahoma, 73102
The Office’s reporting procedures are in addition to other methods of reporting environmental concerns to the federal government, such as the online portal maintained by the United States Environmental Protection Agency:
https://echo.epa.gov/report-environmental-violations. Additional points of contact for federal agencies may be found on the Office’s website.
USA Ross Appoints District Election Officer Ahead of Election DayRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, NY—U.S. Attorney Trini E. Ross announced today that Assistant U.S. Attorney (AUSA) Paul E. Bonanno will lead efforts in her Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2022, general election. AUSA Bonanno has been appointed to serve as the District Election Officer (DEO) for the Western District of New York, and in that capacity is responsible for overseeing the district’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.
U.S. Attorney Ross said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election. Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence. The Department of Justice will always work tirelessly to protect the integrity of the election process.”
The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.
Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).
U.S. Attorney Ross stated that, “it is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice. In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO Bonanno will be on duty in this District while the polls are open. He can be reached by the public at 716-843-5700.”
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at 716-856-7800.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/ .
It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
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U.S. Attorney’s Office Will Participate in the DOJ’s Nationwide Election Day ProgramRead the Press Release
Acting United States Attorney Steven Russell announced today that his office would be participating in the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2022, general election. The United States Attorney’s Office (USAO) is responsible for overseeing the District’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington, D.C.
Acting United States Attorney Russell said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election. Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence. The Department of Justice will always work tirelessly to protect the integrity of the election process. The citizen’s right to vote is the cornerstone of American democracy. We all must ensure that those who are entitle to this privilege can exercise it if they choose, and that those who seek to corrupt it are brought to justice.”
In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure such complaints are directed to the appropriate authorities, the USAO will be available while the polls are open (8 a.m. to 8 p.m. in the Central Time Zone and 7 a.m. to 7 p.m. in the Mountain Time Zone), and can be reached at (402) 661-3700. In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (402) 493-8688. Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/.
Nebraska Secretary of State Robert Evnen reminds voters that, should the need arise, the state’s Election Integrity Unit is on standby for Election Day concerns or complaints. People may call their County Election Official or Nebraska Secretary of State’s Office Election Division at (402) 471-2555 or (888) 727-0007 (toll free) to report problems. If a voter is unsure about the location of their polling site, they should call their county election office or go online to https://www.votercheck.necvr.ne.gov.
The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.
Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).
Acting United States Attorney Russell said, “Ensuring free and fair elections depends in large part on the assistance of the American electorate. It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
U.S. Attorney appoints district election officersRead the Press Release
CINCINNATI – United States Attorney Kenneth L. Parker announced today that Assistant United States Attorney Jessica W. Knight will lead the Southern District of Ohio’s Election Day Program efforts for the general election tomorrow.
As the District Election Officer, Ms. Knight is responsible for overseeing the district’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with the Justice Department headquarters in Washington, D.C.
“Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election,” said U.S. Attorney Parker. “Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence. The Department of Justice will always work tirelessly to protect the integrity of the election process.”
The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.
Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.
It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).
The FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. Please direct allegations of election fraud and other election abuses to the FBI at 1-800-CALL FBI.
Deputy Criminal Chiefs Emily Glatfelter and Brent Tabacchi and Assistant U.S. Attorney Peter K. Glenn-Applegate are also serving as District Election Officers. Ms. Knight and Mr. Glenn-Applegate can be reached in Columbus at 614-469-5715. Ms. Glatfelter can be reached in Cincinnati at 513-684-3711. Mr. Tabacchi can be reached in Dayton at 937-225-2910.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/ .
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
“Ensuring free and fair elections depends in large part on the assistance of the American electorate,” said U.S. Attorney Parker. “It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”
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U.S. Attorney Tucker Appoints District of Alaska Election OfficerRead the Press Release
ANCHORAGE – United States Attorney S. Lane Tucker announced today that Assistant United States Attorney (AUSA) Kelly Cavanaugh will lead the efforts of her Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2022, general election. AUSA Cavanaugh has been appointed to serve as the District Election Officer (DEO) for the District of Alaska and in that capacity is responsible for overseeing the District’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.
United States Attorney Tucker said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election. Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence. The Department of Justice will always work tirelessly to protect the integrity of the election process.”
The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.
Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).
United States Attorney Tucker stated that: “Voting is the cornerstone of American democracy. We all must ensure that those who are entitled to vote can exercise that right if they choose, and that any who seek to corrupt it are brought to justice. In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO Cavanaugh will be on duty in this District while the polls are open. He can be reached by the public at the following telephone numbers: 907-271-5071.”
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at 907-276-4441 or online at tips.fbi.gov.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/ .
United States Attorney Tucker said, “Ensuring free and fair elections depends in large part on the assistance of the American electorate. It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
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U.S. Attorney Michael Easley Announces Appointment of 2022 Eastern District Election OfficerRead the Press Release
RALEIGH, N.C. – U.S. Attorney Michael Easley announced today that Assistant U.S. Attorney (AUSA) Susan Menzer will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for tomorrow’s November 8, 2022, general election. AUSA Menzer has been appointed to serve as the District Election Officer (DEO) for the Eastern District of North Carolina, and in that capacity is responsible for overseeing the District’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.
U.S. Attorney Easley said, “Every citizen must be able to vote without interference or discrimination and to have their vote counted in a fair and free election. Similarly, election officials and staff must be able to serve without unlawful threats of violence. The Justice Department is committed to protecting the integrity of the election process.”
The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.
Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).
U.S. Attorney Easley stated that: “The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise can exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO Menzer will be on duty in this District while the polls are open. She can be reached by the public at the following telephone numbers: (919)856-4530 and (919)856-4099.”
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (704)672-6100.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/ .
U.S. Attorney Easley said, “Ensuring free and fair elections depends in large part on the assistance of the American electorate. It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
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U.S. Attorney Announces Historic $3.36 Billion Cryptocurrency Seizure and Conviction in Connection with Silk Road Dark Web FraudRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Tyler Hatcher, the Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, Los Angeles Field Office (“IRS-CI”), announced today that JAMES ZHONG pled guilty to committing wire fraud in September 2012 when he unlawfully obtained over 50,000 Bitcoin from the Silk Road dark web internet marketplace. ZHONG pled guilty on Friday, November 4, 2022, before United States District Judge Paul G. Gardephe.
On November 9, 2021, pursuant to a judicially authorized premises search warrant of ZHONG’s Gainesville, Georgia, house, law enforcement seized approximately 50,676.17851897 Bitcoin, then valued at over $3.36 billion. This seizure was then the largest cryptocurrency seizure in the history of the U.S. Department of Justice and today remains the Department’s second largest financial seizure ever. The Government is seeking to forfeit, collectively: approximately 51,680.32473733 Bitcoin; ZHONG’s 80% interest in RE&D Investments, LLC, a Memphis-based company with substantial real estate holdings; $661,900 in cash seized from ZHONG’s home; and various metals also seized from ZHONG’s home.
U.S. Attorney Damian Williams said: “James Zhong committed wire fraud over a decade ago when he stole approximately 50,000 Bitcoin from Silk Road. For almost ten years, the whereabouts of this massive chunk of missing Bitcoin had ballooned into an over $3.3 billion mystery. Thanks to state-of-the-art cryptocurrency tracing and good old-fashioned police work, law enforcement located and recovered this impressive cache of crime proceeds. This case shows that we won’t stop following the money, no matter how expertly hidden, even to a circuit board in the bottom of a popcorn tin.”
IRS-CI Special Agent in Charge Tyler Hatcher said: “Mr. Zhong executed a sophisticated scheme designed to steal bitcoin from the notorious Silk Road Marketplace. Once he was successful in his heist, he attempted to hide his spoils through a series of complex transactions which he hoped would be enhanced as he hid behind the mystery of the ‘darknet.’ IRS-CI Special Agents are the best in the world at following the money through cyberspace or wherever our financial investigations lead us. We will continue to work with our partners at the US Attorney’s Office to track down these criminals and bring them to justice.”
According to the allegations contained in filings in Manhattan federal court and statements made during court proceedings:
ZHONG’s Scheme to Defraud
Silk Road was an online “darknet” black market. In operation from approximately 2011 until 2013, Silk Road was used by numerous drug dealers and other unlawful vendors to distribute massive quantities of illegal drugs and other illicit goods and services to many buyers and to launder all funds passing through it. In 2015, following a groundbreaking prosecution by this Office, Silk Road’s founder Ross Ulbricht was convicted by a unanimous jury and sentenced to life in prison.
In September 2012, ZHONG executed a scheme to defraud Silk Road of its money and property by (a) creating a string of approximately nine Silk Road accounts (the “Fraud Accounts”) in a manner designed to conceal his identity; (b) triggering over 140 transactions in rapid succession in order to trick Silk Road’s withdrawal-processing system into releasing approximately 50,000 Bitcoin from its Bitcoin-based payment system into ZHONG’s accounts; and (c) transferring this Bitcoin into a variety of separate addresses also under ZHONG’s control, all in a manner designed to prevent detection, conceal his identity and ownership, and obfuscate the Bitcoin’s source.
While executing the September 2012 fraud, ZHONG did not list any item or service for sale on Silk Road, nor did he buy any item or service on Silk Road. ZHONG registered the accounts by providing the bare minimum of information required by Silk Road to create the account; the Fraud Accounts were merely a conduit for ZHONG to defraud Silk Road of Bitcoin.
ZHONG funded the Fraud Accounts with an initial deposit of between 200 and 2,000 Bitcoin. After the initial deposit, ZHONG then quickly executed a series of withdrawals. Through his scheme to defraud, ZHONG was able to withdraw many times more Bitcoin out of Silk Road than he had deposited in the first instance. As an example, on September 19, 2012, ZHONG deposited 500 Bitcoin into a Silk Road wallet. Less than five seconds after making the initial deposit, ZHONG executed five withdrawals of 500 Bitcoin in rapid succession — i.e., within the same second — resulting in a net gain of 2,000 Bitcoin. As another example, a different Fraud Account made a single deposit and over 50 Bitcoin withdrawals before the account ceased its activity. ZHONG moved this Bitcoin out of Silk Road and, in a matter of days, consolidated them into two high-value amounts.
Nearly five years after ZHONG’s fraud, in August 2017, solely by virtue of ZHONG’s possession of the 50,000 Bitcoin that he unlawfully obtained from Silk Road, ZHONG received a matching amount of a related cryptocurrency — 50,000 Bitcoin Cash (“BCH Crime Proceeds”) — on top of the 50,000 Bitcoin. In August 2017, in a hard fork coin split, Bitcoin split into two cryptocurrencies, traditional Bitcoin and Bitcoin Cash (“BCH”). When this split occurred, any Bitcoin address that had a Bitcoin balance (as ZHONG’s addresses did) now had the exact same balance on both the Bitcoin blockchain and on the Bitcoin Cash blockchain. As of August 2017, ZHONG thus possessed 50,000 BCH in addition to the 50,000 Bitcoin that ZHONG unlawfully obtained from Silk Road. ZHONG thereafter exchanged through an overseas cryptocurrency exchange all of the BCH Crime Proceeds for additional Bitcoin, amounting to approximately 3,500 Bitcoin of additional crime proceeds. Collectively, by the last quarter of 2017, ZHONG thus possessed approximately 53,500 Bitcoin of total crime proceeds (the “Crime Proceeds”).
The Government’s Seizure of Forfeitable Property
On November 9, 2021, pursuant to a judicially authorized premises search warrant (the “Search”), IRS-CI agents recovered approximately 50,491.06251844 Bitcoin of the Crime Proceeds from ZHONG’s Gainesville, Georgia, house. Specifically, law enforcement located 50,491.06251844 Bitcoin of the approximately 53,500 Bitcoin Crime Proceeds (a) in an underground floor safe; and (b) on a single-board computer that was submerged under blankets in a popcorn tin stored in a bathroom closet. In addition, law enforcement recovered $661,900 in cash, 25 Casascius coins (physical bitcoin) with an approximate value of 174 Bitcoin, 11.1160005300044 additional Bitcoin, and four one-ounce silver-colored bars, three one-ounce gold-colored bars, four 10-ounce silver-colored bars, and one gold-colored coin.
Beginning in or around March 2022, ZHONG began voluntarily surrendering to the Government additional Bitcoin that ZHONG had access to and had not dissipated. In total, ZHONG voluntarily surrendered 1,004.14621836 additional Bitcoin.
Forfeiture Actions
In connection with ZHONG’s guilty plea, on November 4, 2022, Judge Gardephe entered a Consent Preliminary Order of Forfeiture as to Specific Property and Substitute Assets/Money Judgment forfeiting ZHONG’s interest in the following property:
- ZHONG’s 80% interest in RE&D Investments, LLC, a Memphis-based company with substantial real estate holdings;
- $661,900 in United States currency seized from ZHONG’s home on November 9, 2021;
- Metal items, consisting of four one-ounce silver-colored bars, three one-ounce gold-colored bars, four 10-ounce silver-colored bars, and one gold-colored coin, all seized from ZHONG’s home on November 9, 2021;
- 11.1160005300044 Bitcoin seized from ZHONG’s home on November 9, 2021;
- 25 Casascius coins (physical Bitcoin) with an approximate value of 174 Bitcoin, collectively, seized from ZHONG’s home on November 9, 2021;
- 23.7112850 Bitcoin provided by ZHONG on April 27, 2022;
- 115.02532155 Bitcoin provided by ZHONG on April 28, 2022; and
- 4.57427222 Bitcoin provided by ZHONG on June 8, 2022.
Today, in United States v. Ross Ulbricht, S1 14 Cr. 68 (LGS), the Government filed a motion for entry of an Amended Preliminary Order of Forfeiture, seeking to forfeit approximately 51,351.89785803 Bitcoin traceable to Silk Road, valued at approximately $3,388,817,011.90 at the time of seizure, as follows:
- 50,491.06251844 Bitcoin seized from ZHONG’s home on November 9, 2021;
- 825.38833159 Bitcoin provided by ZHONG on March 25, 2022; and
- 35.4470080 Bitcoin provided by ZHONG on May 25, 2022.
* * *
ZHONG, 32, of Gainesville, Georgia, and Athens, Georgia, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. ZHONG is scheduled to be sentenced by Judge Gardephe on February 22, 2023, at 3:00 p.m.
Mr. Williams praised the outstanding work of the Internal Revenue Service, Criminal Investigation’s Western Cyber Crimes Unit of the Los Angeles Field Office. Mr. Williams also thanked the Athens-Clarke County Police Department in Athens, Georgia, for its support and assistance with the case.
The prosecution of this case is being overseen by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorney David R. Felton is in charge of the case.
Two newly indicted, nine previous indictments unsealed for crimes including illegal firearms possessionRead the Press Release
SAVANNAH, GA: Six defendants are among those facing federal charges including illegal possession of firearms after separate indictments by a grand jury in the Southern District of Georgia, while recent actions in U.S. District Court include guilty pleas and criminal sentences related to illegal gun possession.
The indicted cases are being investigated as part of Project Safe Neighborhoods in collaboration with federal, state and local law enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the FBI, to reduce violent crime with measures that include targeting convicted felons who illegally carry guns.
“The law specifically prohibits previously convicted felons from carrying guns – and it’s abundantly clear that reducing violent crime requires keeping gun-carrying criminals off our streets,” said David H. Estes, U.S. Attorney for the Southern District of Georgia. “We commend our law enforcement partners for their continued commitment to keeping our communities safe.”
In the past four years, more than 790 defendants have been federally charged in the Southern District of Georgia for illegal firearms offenses – most often for possessing a firearm after conviction for a previous felony. Recent federal legislation increases the maximum penalty for illegal possession of a firearm by a convicted felon to 15 years, up from 10, for those found in possession after June 25, 2022.
Defendants named in federal indictments from the November 2022 term of the U.S. District Court grand jury include:
- Shannan Barnwell, 24, of Savannah, charged with Possession of a Firearm by a Convicted Felon; Interference with Interstate Commerce by Robbery; and Possession of a Firearm in Furtherance of a Crime of Violence. Barnwell is charged in connection with the Sept. 27 armed robbery of a vendor restocking a South State Bank automatic teller machine.
- Jacob Matthew Miller, 32, of Waynesboro, Ga., charged with Possession of a Firearm by Convicted Felon.
Nine additional defendants were indicted under seal in October, with those indictments recently unsealed following initial court appearances:
- Robert Richard Hatten, 47, of Oak Park, Ga., charged with Possession with Intent to Distribute, and to Distribute, 50 Grams or More of Methamphetamine; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and Possession of a Firearm with an Obliterated Serial Number;
- Christopher Nakia Jones, 47, of Swainsboro, Ga., charged with three counts of Distribution of Methamphetamine, and Possession of a Firearm by a Convicted Felon;
- Ephelius Artavis Brinson Jr., 28, of Hephzibah, Ga., charged with Possession of a Firearm by a Convicted Felon; and Possession of Marijuana;
- Devonte Malik Jorame, 25, of Aiken, S.C., charged with Possession of a Firearm by a Convicted Felon, and Possession of Marijuana.
- Trevor Elijah Walker, 24, of Augusta, charged with two counts of Possession of a Firearm by a Convicted Felon;
- Taipai La’Don Brewer, 43, of Augusta, charged with Possession of a Firearm by a Convicted Felon;
- Titus Nathaniel Travis, 23, of Augusta, charged with Possession of a Firearm by a Convicted Felon;
- Diemond Dajion Wimberly, 25, of Augusta, charged with Possession of a Firearm by a Convicted Felon; and,
- Deontre Hubert, 28, of Augusta, charged with Possession of a Firearm by a Convicted Felon.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
Additional defendants recently have been adjudicated on federal charges that include illegal firearms possession:
- Thomas Kevin Robinson, 52, of Savannah, was sentenced to 120 months in prison followed by three years of supervised release after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah Police responding to a shoplifting call in April 2021 chased Robinson in his vehicle and on foot, and found a pistol that he had dropped while running. Robinson has an extensive criminal history with at least seven prior felony convictions.
- Terry Kennard Isaacs, 37, of Beaufort, S.C., was sentenced to 108 months in prison followed by three years of supervised release after pleading guilty to Possession of a Stolen Firearm. Shortly after midnight on June 17, 2021, Pooler Police officers found Isaacs asleep inside a customer’s vehicle parked at a repair business, and arrested him after finding a pistol and drugs in his possession. Isaacs has multiple prior felony convictions involving firearms and violence.
- Johnathon Emanuel McGahee, 24, of Thomson, Ga., was sentenced to 100 months in prison followed by three years of supervised release and fined $2,000 after pleading guilty to Possession of a Firearm by a Convicted Felon. McGahee crashed his vehicle while fleeing Georgia State Patrol troopers attempting a traffic stop on Jan. 1, 2021, and ran into woods where he was captured. Troopers found drugs and a loaded pistol with a high-capacity magazine in McGahee’s car. McGahee is a member of the Gangster Disciples criminal street gang with a violent criminal history.
- Carlos Middleton, 21, of Savannah, was sentenced to 97 months in prison followed by three years of supervised release after pleading guilty to Interference with Commerce by Robbery. Middleton admitted brandishing a firearm Jan. 20, 2022, when he threatened and robbed employees of a Chatham County video game store. The plea subjects Middleton to a statutory sentence of up to 20 years in prison.
- Rashejon B. Curry, 28, of Pooler, Ga., was sentenced to 96 months in prison followed by three years of supervised release after pleading guilty to Possession of a Firearm by a Convicted Felon. Chatham County Police officers arrested Curry following a report of an assault at a motel room, later finding him carrying a loaded pistol. Curry has a violent criminal history including convictions for robbery and gun possession.
- Daquan Dwayne Young, 27, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah Police officers arrested Young after a March 2022 traffic stop when they found a pistol in his waistband.
- Ra’ann Michell Coleman, 49, of Eastman, Ga., awaits sentencing after pleading guilty to two counts of False Statement During the Purchase of a Firearm, a charge often referred to as “lying and buying.” In her plea agreement, Coleman admitted that when she purchased a Taurus .380 pistol on Oct. 26, 2020, and a Bersa .380 pistol on Dec. 8, 2020, she lied about being the actual purchaser of the guns when she in fact was buying the firearms on behalf of someone else.
Agencies investigating these cases include the ATF, the FBI, the Georgia Bureau of Investigation, the Savannah Police Department, the Richmond County Sheriff’s Office, and the Georgia State Patrol.
The cases are being prosecuted for the United States by the Southern District of Georgia U.S. Attorney’s Office.
Under federal law, it is illegal for an individual to possess a firearm if he or she falls into one of nine prohibited categories including being a felon; illegal alien; or unlawful user of a controlled substance. Further, it is unlawful to possess a firearm in furtherance of a drug trafficking offense or violent crime. It is also illegal to purchase – or even to attempt to purchase – firearms if the buyer is a prohibited person or illegally purchasing a firearm on behalf of others. Lying on ATF Form 4473, which is used to lawfully purchase a firearm, also is a federal offense.
For more information from the ATF on the lawful purchasing of firearms, please see: https://www.atf.gov/qa-category/atf-form-4473
For any questions, please contact Barry Paschal at the U.S. Attorney’s Office at (912) 652-4422.
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Two Men Convicted of Conspiracy Charges at TrialRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that Omar Perez-Ochoa, age 31, of Sioux Falls, South Dakota, was found guilty of Conspiracy to Distribute a Controlled Substance and Conspiracy to Launder Monetary Instruments, and John Radermacher, age 41, of Couderay, Wisconsin, was found guilty of Conspiracy to Distribute a Controlled Substance, as a result of a federal jury trial in Sioux Falls, South Dakota. The verdict was returned on October 21, 2022.
The charges carry a maximum penalty of life in custody and/or a $10 million fine, five years of supervised release, and a $200 special assessment to the Federal Crime Victims Fund to be paid by Perez-Ochoa, and a $100 special assessment to the Federal Crime Victims Fund to be paid by Radermacher.
Perez-Ochoa and Radermacher were indicted by a federal grand jury in September of 2022.
Both Perez-Ochoa and Radermacher were involved in a large-scale methamphetamine distribution organization operating out of Sioux Falls and the surrounding areas. This organization was responsible for receiving and distributing multiple pounds of methamphetamine in South Dakota and elsewhere.
Radermacher obtained multiple pounds of methamphetamine from Canbie Thompson on multiple occasions and then returned to Wisconsin with that methamphetamine to further this drug conspiracy. Radermacher and Thompson originally met in federal prison, while both were serving federal sentences for drug distribution.
Perez-Ochoa was involved with this methamphetamine conspiracy by becoming a drop location for multiple pounds of methamphetamine, along with multiple payments of thousands of dollars for methamphetamine, to ultimately be wired or otherwise transferred down to Mexican sources.
This case was investigated by Homeland Security Investigations, Drug Enforcement Administration, IRS Criminal Investigation, and the South Dakota Department of Criminal Investigations. Assistant U.S. Attorney Mark Hodges and Special Assistant U.S. Attorney Beth Ebert prosecuted the case.
Presentence investigations were ordered and sentencing dates will be set in the near future. The defendants were both remanded to the custody of the U.S. Marshals Service.
Two Defendants Charged in Drug Distribution Conspiracy and Federal Firearms ViolationsRead the Press Release
CHARLESTON, SOUTH CAROLINA — A federal grand jury in Charleston returned a five-count indictment against Antwon Rashad Brown, a/k/a “Blee,” 28, of Charleston, and Antonio Shamar Fyall, III, 19, of Charleston.
Brown is charged with conspiracy to possess with intent to distribute and distribution of a controlled substance, felon in possession of a firearm, possession of a firearm in furtherance of a drug trafficking crime, and two counts of possession with intent to distribute a controlled substance. Fyall is charged with conspiracy to possess with intent to distribute and distribution of a controlled substance.
Following the indictment, federal law enforcement officers placed a legal hold on the property where the illegal activity occurred. Federal law enforcement officers also seized an additional piece of property, several thousand dollars of cash, and firearms associated with the drug distribution conspiracy.
Brown faces a maximum penalty of life in prison if convicted and is currently detained pending trial. Fyall faces a maximum penalty of five years in prison if convicted and is currently on bond pending trial.
This case is 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.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Charleston Police Department, and Charleston County Sheriff’s Office investigated this case. Assistant U.S. Attorney Chris Lietzow is prosecuting the case.
United States Attorney Adair F. Boroughs stated that all charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty.
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Tulare County Man Pleads Guilty to Failing to Register as a Sex OffenderRead the Press Release
FRESNO, Calif. — Andras Daniel Lee, 33, of Visalia, pleaded guilty today to failure to register as a sex offender, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in March 2017, Lee was convicted in Tulare County of unlawful sexual intercourse with a minor. Shortly after his release from prison, Lee moved to Liberal, Kansas. In March 2018, Lee moved back to California and intentionally did not register as a sex offender under the Sex Offender Registration and Notification Act (SORNA) as was required as a result of his prior conviction for unlawful sexual intercourse with a minor.
On Feb. 20, 2020, Lee committed a lewd act upon a child in Tulare County while in a failure to register status. On Dec. 20, 2021, Lee was convicted of two counts of committing a lewd act upon a child.
The case is the result of an investigation by the U.S. Marshals Service. Assistant U.S. Attorney Antonio J. Pataca is prosecuting the case.
Lee is scheduled to be sentenced by U.S. District Judge Ana de Alba on Feb. 6, 2023. Lee faces a maximum statutory penalty of 10 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Three Defendants Sentenced for Tax FraudRead the Press Release
Memphis, TN – Three individuals, Robert L. Pryor, 46, Elaine Pryor, 43, and Joshua L. Pryor, 44,
have been sentenced for preparing and filing false tax returns under the business name Better Dayz
Tax Services, LLC. United States Attorney Kevin Ritz announced the sentences today.According to information presented in court, Robert L. Pryor owned a tax-preparation business,
Better Dayz Tax Services, LLC, in Memphis, Tennessee. His wife Elaine Pryor and his brother Joshua
L. Pryor also worked at Better Dayz. He and his co-defendants prepared false income tax returns for
clients and for themselves, resulting in fraudulent tax refunds and total lost tax revenue of more
than $122,000 over three years. Each defendant pled guilty to one count of preparing a false tax
return.On October 12, 2022, United States District Judge Jon P. McCalla sentenced Robert L. Pryor to a
total of 15 months in federal prison, to be followed by one year of supervised release. Pryor may
not own or operate a tax preparation business or engage in tax preparation services during his
supervised release. Pryor also was ordered to pay restitution of $57,672.00.On October 12, 2022, Judge McCalla sentenced Joshua L. Pryor to three years of federal probation
and ordered him to pay restitution of $25,064.00. Joshua Pryor may not own or operate a tax
preparation business or engage in tax preparation services during his probation.On November 4, 2022, Judge McCalla sentenced Elaine Pryor to six months in federal prison, to be
followed by 18 months of supervised release. Six months of her supervised release term must be
served on home detention, and she may not own or operate a tax preparation business or engage in
tax preparation services during her supervised release. She also was ordered to pay restitution of
$57,853.59. There is no parole in the federal system.United States Attorney Ritz, said “I hope these sentences send a message to others who are robbing
the government through fraudulent tax practices that their illegal acts will not go unchecked.”“Those who might consider preparing false tax returns should be aware of the extremely negative
consequences as evidenced today," said Donald “Trey” Eakins, Special Agent in Charge of the
Charlotte Field Office. "Today's sentencing of the defendants again emphasizes that the Internal
Revenue Service and U.S. Attorney’s office will continue their aggressive pursuit of those who
would attempt to defraud America's tax system."This case was investigated by Internal Revenue Service Criminal Investigations (IRS-CI).
United States Attorney Kevin Ritz thanked Assistant United States Attorney Murre Foster, who
prosecuted this case.
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For more information, please contact Public Information Officer Cherri Green at 901- 544-4231 or
[email protected]. Follow@WDTNNews on Twitter for office news and updates.
Three Arrested for International Gun Trafficking and Obstruction of JusticeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Ivan J. Arvelo, Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), and Keechant L. Sewell, Commissioner of the New York City Police Department (“NYPD”), announced today the arrests of ELVIS GUERRERO, a/k/a “E,” JEMYNI TRUE, a/k/a “Jemy,” and TRENTON MICHAEL JUDKINS, for trafficking firearms from New York City to the Dominican Republic. As alleged in the Complaint filed last Friday, the defendants obtained firearms from straw purchasers and then shipped six handguns and an AR-15 style rifle from New York City to the Dominican Republic inside a cargo shipping container. TRUE and JUDKINS also conspired to delete evidence regarding their scheme after JUDKINS was contacted by law enforcement. GUERRERO and TRUE were arrested after flying into JFK Airport from the Dominican Republic last Thursday and were presented before Magistrate Judge Barbara C. Moses in Manhattan federal court. GUERRERO was ordered detained and TRUE was detained pending release on conditions. JUDKINS was arrested last Friday in Maine.
U.S. Attorney Damian Williams said: “International gun traffickers endanger our community by putting dangerous weapons in the hands of those who often use them for violence. As demonstrated by these arrests, our Office will continue to investigate and prosecute gun traffickers who seek to profit from the illegal gun trade, which endangers the lives of law-abiding citizens everywhere.”
HSI New York Special Agent in Charge Ivan J. Arvelo said: “These three defendants are alleged to have conspired to obtain and traffic firearms to the Dominican Republic, and then attempted to cover their tracks to evade detection. HSI New York will continue to leverage the full breadth of its investigative authorities and maximize our investigative partnerships to combat the exportation of illegal firearms across our borders. Those who wish to engage in the illicit purchasing, trafficking, or shipping of illegal firearms will be held accountable to the fullest extent of the law.”
NYPD Commissioner Keechant L. Sewell said: “Illegal guns pose a grave public-safety threat to every community, here in New York City and across the globe. With these charges, the NYPD and our law-enforcement partners are sending a clear and definitive message: If you traffic in these deadly weapons, you will be arrested and prosecuted to the fullest extent of the law. I want to thank the U.S. Attorney’s Office for the Southern District of New York, HSI’s New York Field Office, and all of the investigators who worked on this important case.”
According to the allegations in the Complaint filed in Manhattan federal court:[1]
TRUE and GUERRERO obtained firearms from multiple straw purchasers located in the United States, including JUDKINS. GUERRERO and JUDKINS discussed that GUERRERO would pay JUDKINS for a firearm with narcotics.
On or about October 6, 2022, a shipping container that had been transported by cargo ship from New York City to the Dominican Republic was inspected in the Dominican Republic. Inside a box that was reported to contain food and other items, inspectors found six handguns and an AR-15 style rifle. A photograph of the firearms is below:
Law enforcement in the Dominican Republic searched a location where the firearms were intended to be received and found a paper containing a phone number associated with TRUE.
On November 3, 2022, law enforcement agents approached JUDKINS, who admitted to selling the AR-15 style rifle recovered in the Dominican Republic to GUERRERO and that TRUE had recently asked him to provide a second firearm. After speaking with law enforcement agents, JUDKINS communicated with TRUE, advising her that he had spoken with federal law enforcement agents and to “be careful.” In response, TRUE asked him to “delete all our chats on Facebook and here please / And text / And your s*** w [GUERRERO].” JUDKINS agreed to do so.
On November 3, 2022, law enforcement agents seized cellphones possessed by GUERRERO and TRUE after they flew into JFK Airport from the Dominican Republic. Substantially all of the data on TRUE’s cellphone had been deleted.
On GUERRERO’s phones, law enforcement found multiple photographs of firearms, including the following photograph of GUERRERO posing with a rifle:
Law enforcement agents also found communications between GUERRERO and TRUE regarding firearms and notes GUERRERO kept regarding quantities of narcotics.
* * *
GUERRERO, 21, of Lowell, Massachusetts; TRUE, 20, of Corinth, Maine; and JUDKINS, 18, of Garland, Maine, are each charged with one count of conspiring to commit an offense against the United States, namely, gun trafficking, which carries a maximum sentence of five years in prison and one count of gun trafficking, which carries a maximum sentence of five years in prison. TRUE and JUDKINS are additionally charged with one count of obstruction of justice, which carries a maximum sentence of 20 years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentence will be determined by a judge.
Mr. Williams praised the outstanding investigative work of HSI and the NYPD.
This case is being handled by the Office’s Violent & Organized Crime Unit. Assistant U.S. Attorney Jun Xiang is in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint constitutes only allegations, and every fact described herein should be treated as an allegation.
Stoughton Man Sentenced for $400,000 COVID Fraud SchemeRead the Press Release
BOSTON – A Stoughton man was sentenced on Nov. 4, 2022 in federal court in Boston in connection with filing a fraudulent loan application in order to obtain over $400,000 in Paycheck Protection Program (PPP) loan funds.
Adley Bernadin, 44, was sentenced by U.S. District Court Judge Indira Talwani to 15 months in prison and three years of supervised release. Bernadin was also ordered to pay forfeiture of $284,596. On June 22, 2022, Bernadin pleaded guilty to one count of wire fraud.
In May 2020, Bernadin used a purported healthcare business, “La Salette,” to fraudulently apply for a PPP loan of over $400,000. In the application, which he submitted through a Small Business Administration approved lender, Bernadin misrepresented information about the purported home health care company’s employees and payroll expenses and falsified a tax form in an effort to qualify the business for the PPP loan. For example, Bernadin reported that the purported home health care business had a monthly payroll of $175,200, which was false.
After receiving the PPP funds, Bernadin did not use money for the purported home health care company’s business. Instead, he made mortgage payments on his home and wrote checks to individuals with whom he had a personal relationship.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of forgivable loans to small businesses for job retention and certain approved expenses, through the PPP.
United States Attorney Rachael S. Rollins and William A. Kalb, Special Agent in Charge of the U.S. Treasury Inspector General for Tax Administration, Northeast Field Division made the announcement today. Assistant U.S. Attorneys Benjamin A. Saltzman of Rollins’ Securities, Financial & Cyber Fraud Unit and Raquelle Kaye of Rollins’ Asset Recovery Unit prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
St. Paul Man Sentenced to More Than 23 Years in Prison for Methamphetamine Trafficking and Firearms ViolationsRead the Press Release
MINNEAPOLIS – A St. Paul man has been sentenced to 280 months prison followed by five years of supervised release for methamphetamine trafficking and firearms violations, announced U.S. Attorney Andrew M. Luger.
On June 16, 2022, following a three-day trial before U.S. District Judge Nancy E. Brasel, William Howard Proto Jr., 45, was convicted on two counts of possession with intent to distribute methamphetamine, one count of possession of a firearm in furtherance of drug trafficking, and one count of possessing a firearm as a felon. During the trial, Proto pleaded guilty to one count of possessing a firearm as a felon.
According to court documents, on June 29, 2021, officers with the Bloomington Police Department arrested Proto after he was found in the driver’s seat of a stolen Cadillac Escalade. Officers searched the vehicle and found nine pounds of methamphetamine, 200 grams of cocaine, digital scales, more than $50,000 in cash, and a loaded firearm. Following his arrest, Proto was indicted in U.S. District Court on one count of possession with intent to distribute methamphetamine and one count of possession of a firearm as a felon.
On August 19, 2021, pursuant to a federal warrant, agents located Proto at a hotel in Woodbury, Minnesota. Officers arrested Proto as he was wheeling a luggage cart in the parking lot towards his SUV. On the luggage cart in a black duffle bag, officers found five pounds of methamphetamine, $5,000 in cash, an assault style rifle, and loaded magazines. Proto also had a loaded 9-mm handgun in his pocket. Officers searched Proto’s SUV and found additional ammunition.
This case was the result of an investigation conducted by the Drug Enforcement Administration and the Bloomington Police Department.
Assistant U.S. Attorneys Andrew S. Dunne, Joseph S. Teirab, and Ruth Shnider prosecuted the case.
South Florida Man Sentenced to over 13 Years for International Money LaunderingRead the Press Release
Tampa, FL – U.S. District Judge Virginia M. Hernandez Covington has sentenced Cornelius “Neal” Singleton (60, Miramar) to 13 years and 9 months in federal prison for international money laundering. The court also ordered Singleton to serve a 3-year term of supervised release following his prison term. Singleton had been found guilty after a week-long jury trial, which concluded on April 15, 2022. Singleton was indicted on July 13, 2021.
According to testimony and evidence presented at trial, on March 28, 2020, Singleton delivered over $600,000 in cash to a confidential witness in a grocery store parking lot, which was intended to be sent to individuals in Colombia. In cooperation with the Colombian National Police, Homeland Security Investigations (HSI) agents in Tampa arranged to have the funds delivered to the intended recipients in Colombia, who were members of a group suspected of large-scale narcotics trafficking, in order to identify the recipients. After the successful delivery was made in June 2020, during an undercover operation in Bogota, Colombia, negotiations began with Singleton for additional deliveries of cash to be made to Colombia. In June 2021, Singleton brought over $1,000,000 in cash to downtown St. Petersburg to be delivered to the same individuals in Colombia. HSI agents arrested him at that time.
Singleton committed the money laundering offense while he was on supervised release in the Southern District of Florida, after having served nearly 17 years in federal prison for cocaine trafficking in Miami.
“This career criminal, even after spending more than 17 years in federal prison for cocaine trafficking, worked as a money laundering mule for Colombia drug lords, supporting the peddling of their poison,” said Homeland Security Investigations (HSI) Tampa Special Agent in Charge John Condon. “Thanks to the diligence of our dedicated special agents, with assistance from the Colombian National Police, the Hialeah (Florida) Police Department, and the St. Petersburg (Florida) Police Department, we were able to return him to prison for another 13 years.”
This case was investigated by Homeland Security Investigations (Tampa), with the assistance from the Colombian National Police, the Hialeah (Florida) Police Department, and the St. Petersburg (Florida) Police Department. It was prosecuted by Assistant United States Attorney E. Jackson Boggs, Jr.
Sisseton Man Arrested for Sexual Abuse of a MinorRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that a Sisseton, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Child and Abusive Sexual Contact.
Thomas Avery Drum, age 58, was indicted in October of 2022. He appeared before U.S. Magistrate Judge Veronica L. Duffy on October 31, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, five years up to life of supervised release, and $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
According to the Indictment, between on or about August 26, 2014, and August 25, 2015, in Roberts County, Indian Country, in the District of South Dakota, Drum did knowingly engage in, and attempt to engage in, a sexual act with a child under the age of twelve years.
The charge is merely an accusation and Drum is presumed innocent until and unless proven guilty.
The investigation is being conducted by the FBI. Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Drum was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Sioux City Man with Lengthy Criminal History Sentenced to 7 Years in Federal Prison for Possession of AmmunitionRead the Press Release
A Sioux City, Iowa man with a lengthy criminal history was sentenced November 4, 2022, to more than 7 years in federal prison.
Michael Mace, age 20, from Sioux City, Iowa received the prison term after a June 23, 2022, guilty plea to possession of ammunition as a felon.
Evidence in the case showed Mace’s criminal possession of ammunition was discovered when, on July 19, 2021, officers of the Sioux City Police Department initiated a traffic stop on a vehicle in which Mace was a passenger. A high-speed pursuit ensued. During the pursuit, a firearm was thrown from the vehicle. The pursuit ended when the driver lost control of the vehicle. Mace fled on foot but did not get far. The gun was later located on the sidewalk along the path of the flight. It bore no identifying marks, but the bullets loaded in the gun did, and were determined to bear Mace’s fingerprints.
Mace, despite being just 20, has a lengthy criminal history including: (1) Possession with Intent to Delivery Methamphetamine, in the Iowa District Court for Woodbury County, on or about January 21, 2021; (2) Theft in the First Degree, in the Iowa District Court for Woodbury County, on or about January 21, 2021; (3) Assault on an Officer, in the Iowa District Court for Woodbury County, on or about January 21, 2021; (4) Theft in the Second Degree, in the Iowa District Court for Woodbury County on or about January 21, 2021; and (5) Eluding, in the Iowa District Court for Woodbury County, on or about January 21, 2021.
Mace was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand to 84 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term and pay a $100 special assessment. There is no parole in the federal system.
Mace is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Sioux City Police Department and prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-04073.
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Sioux City Man Sentenced to More than 4 Years in Federal Prison for Illegal Possession of a FirearmRead the Press Release
A Sioux City, Iowa man was sentenced November 2, 2022, to more than 4 years in federal prison.
Isaiah Wiley, age 23, from Sioux City, Iowa received the prison term after a July 18, 2022, guilty plea to possession of a firearm by a person previously convicted of misdemeanor domestic violence.
Evidence in the case showed that on or about February 12, 2021, Wiley, while under the influence of marijuana, threatened his pregnant girlfriend with a gun. In a separate incident on or about March 14, 2022, Wiley fired a single shot into the air during an argument with another individual. After a short foot pursuit, Wiley surrendered to officers after laying the firearm on the ground.
Wiley was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand, to 52 months’ imprisonment. He must also serve 3 years of supervised release after the prison term and pay a $100 special assessment. There is no parole in the federal system.
Wiley is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Sioux City, Iowa Police Department and prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-04039.
Follow us on Twitter @USAO_NDIA.
San Joaquin County Man Sentenced to 14 Months in Prison for Committing Bankruptcy FraudRead the Press Release
SACRAMENTO, Calif. — Kulvir Singh Cheema, 61, of Ripon, was sentenced today to 14 months in prison, a $4,000 fine, and was ordered to pay $259,031 in restitution for filing a false bankruptcy declaration, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Cheema lied about various material facts in a declaration and other documents in a bankruptcy proceeding, which he initiated in 2011. Cheema’s numerous lies in the bankruptcy proceeding—all made under penalty of perjury—created the false impression that he was bankrupt with no assets and deceived his creditors, the bankruptcy trustee, and the bankruptcy judge. Cheema’s lies were extensive. He lied about his business, income, employment, and assets. For example, before filing for bankruptcy, Cheema transferred his business to a new company purportedly run by his ex-wife and concealed his association with the new company. Cheema also falsely claimed he lost his residence in foreclosure when, in fact, he sold it to a close friend in a short sale while continuing to reside there. Through his lies, Cheema successfully discharged over $2 million in debt while managing to conceal $259,031 in assets from his creditors and electing to pay a close friend for a personal loan.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Elliot C. Wong prosecuted the case.
Cheema has been ordered to report on Jan. 10, 2023, to begin serving his sentence.
Ronan man admits trafficking fentanyl, illegal possession of firearmRead the Press Release
MISSOULA — A Ronan man accused of trafficking fentanyl and illegally possessing a firearm after law enforcement found fentanyl and a gun in a vehicle during a stop pleaded guilty to charges today, U.S. Attorney Jesse Laslovich said.
Douglas Leo Wynne, 30, pleaded guilty to possession with intent to distribute fentanyl and prohibited person in possession of a firearm and ammunition by a drug addict. Wynne faces a maximum of 20 years in prison, a $1 million fine and three years of supervised release.
U.S. Magistrate Judge Kathleen L. DeSoto presided. Sentencing was set for Feb. 22, 2023 before U.S. District Judge Dana L. Christensen. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Wynne was released pending further proceedings.
In court documents, the government alleged that in December 2021, the Northwest Drug Task Force obtained fentanyl from Wynne in Lake County. On Dec. 1, 2021, the Flathead Tribal Police conducted a traffic stop of Wynne, who was arrested on a warrant. The officer located a large sum of cash in Wynne’s back pocket and a small amount of a crystalline substance in his front pocket. The owner of the vehicle Wynne was driving consented to a search, and officers found 1,468 fentanyl pills and a .45-caliber handgun. Wynne admitted to distributing fentanyl and that cocaine in the vehicle was for personal use.
Assistant U.S. Attorney Jennifer S. Clark is prosecuting the case, which was investigated by the Northwest Drug Task Force, Homeland Security Investigations and Flathead Tribal Police.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Repeat Armed Felon Sentenced to 102 Months in Federal Prison for Illegal Possession of Ammunition and a Firearm while on Supervised ReleaseRead the Press Release
INDIANAPOLIS– Nicholas Hines, 39, of Indianapolis, was sentenced to 102 months in federal prison after pleading guilty to possession of a firearm and ammunition by a convicted felon.
According to court documents, on April 9, 2014, Hines was convicted of being a felon in possession of a firearm and was sentenced to 92 months in federal prison followed by three years of supervised release by the U.S. Probation Office. Hines was released from prison in March of 2020 and began serving his supervised release sentence. As part of the conditions of Hines’ supervised release sentence, and because he is a convicted felon, under federal law Hines is prohibited from possessing firearms and ammunition.
On December 15, 2020, federal probation officers visited Hines’ residence on Eastern Avenue in Indianapolis to conduct a compliance check. Hines met the officers at his front door but was reluctant to unlock the door and allow the officers inside his residence. Officers negotiated with Hines for several minutes before Hines unlocked the door. Hines was placed in handcuffs while the officers searched the residence.
The officers searched two upstairs bedrooms and found a box of live .38 caliber ammunition in one of the bedrooms. The box contained nineteen rounds of live ammunition, and officers estimated that five or six rounds of ammunition were missing from the box. Hines was interviewed by the officers, and he admitted that the ammunition was his, but he denied having a firearm.
U.S. Probation Officers tried to reach Hines after the December 15, 2020, visit, but they were unsuccessful, and Hines was no longer accepting phone calls. A warrant was issued to arrest Hines for violation of the terms of his release. On December 18, 2020, a federal criminal complaint was filed against Hines for unlawful possession of ammunition by a convicted felon and another warrant was issued for his arrest. Federal law enforcement officers organized a search to locate Hines to arrest him for his outstanding warrants.
On January 14, 2021, officers located Hines at a Red Roof Inn on Lynhurst Drive in Indianapolis. Hines and a woman were seen exiting the front door of the hotel and walking towards a vehicle. The officers attempted to arrest Hines, but he ran, and a foot pursuit ensued. Hines ran behind the hotel, jumped a fence, and entered an apartment complex before a pursuing officer deployed his taser, causing Hines to fall to the ground. Hines rolled over on his back revealing a revolver in his right hand. As another officer tried to approach Hines, Hines held the revolver to his own head. After a five-minute standoff, Hines dropped the revolver and was taken into custody. The revolver was loaded with five rounds of the same brand of .38 caliber ammunition found in Hines’ upstairs bedroom during the probation search.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana; Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Field Office; and Joseph “Dan” McClain, U.S. Marshal for the Southern District of Indiana; made the announcement.
The FBI investigated the case. The U.S. Marshals Service provided valuable assistance. The sentence was imposed by U.S. District Chief Judge Tanya Walton Pratt. As part of the sentence, Judge Pratt ordered that Hines be supervised by the U.S. Probation Office for two years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Jayson W. McGrath who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Rapid City Woman Indicted for Theft from an Indian Tribal OrganizationRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced that a Rapid City, South Dakota, woman has been indicted by a federal grand jury for Theft From an Indian Tribal Organization.
Tiffany LaClaire, age 35, was indicted in July of 2022. She appeared before U.S. Magistrate Judge Daneta Wollmann on October 31, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to five 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.
The Indictment alleges that between July 17, 2021, and March 23, 2022, LaClaire did knowingly steal, embezzle, willfully misapply, and convert to her use, the moneys, funds, and assets belonging to the Cheyenne River Sioux Tribe, an Indian Tribal Organization, in an amount greater than $1,000.
The charge is merely an accusation and LaClaire is presumed innocent until and unless proven guilty.
The investigation is being conducted by the FBI and Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
LaClaire was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for January 3, 2023.
Philippines Man Sentenced to 20 Years in Federal Prison for Fatally Stabbing Fellow Crewmember on Board a Container Ship at SeaRead the Press Release
LOS ANGELES – A Filipino man who fatally stabbed a fellow crewmember on a container ship en route from Shanghai to Los Angeles was sentenced today to 240 months in federal prison.
Michael Dequito Monegro, 44, a resident of the Philippines, was sentenced by United States District Judge Dale S. Fischer, who said in court at today’s hearing that Monegro’s “conduct was unusually heinous, cruel and brutal.”
Monegro pleaded guilty on May 2 to one count of committing an act of violence against a person onboard a ship that is likely to endanger the safe navigation of the ship.
In September 2020, Monegro was working as a seaman aboard the MSC Ravenna, a 153,000-gross-ton Liberian-flagged container ship. The murder took place on September 20, 2020, when the Ravenna was approximately 80 nautical miles from Southern California and nearing the end of its two-week voyage from Shanghai to the Port of Los Angeles.
That morning, several crewmembers were in a dressing room on the ship’s upper deck, preparing for their shift and waiting for their direct supervisor to provide their work assignments for the day. Shortly after Monegro saw his direct supervisor – identified in court documents as “M.S.” – in the hallway outside the locker room, Monegro began stabbing him with a knife while they were both in the hallway in full view of several crewmembers.
The victim grappled with Monegro and the two fell to the floor. Monegro then got on top of the victim and continued stabbing him. Monegro then removed a second knife from the victim’s coveralls and stabbed him with both knives.
Crewmembers attempted to intervene to stop Monegro, including throwing a trash can at him, but their actions were unsuccessful. Monegro stopped stabbing the victim only when he became too tired to continue. In total, Monegro stabbed the victim 31 times.
The ship’s captain, chief mate and chief engineer all arrived on scene during the incident, and the captain convinced Monegro to get off the victim, who died on the ship from multiple stab wounds.
Monegro was convinced by the captain to walk to a conference room. After continued discussions, Monegro placed the knives on the conference room table and was escorted to his cabin.
After the incident, Monegro was confined to a cabin and crewmembers were assigned to guard the door, so they were unable to perform their normal duties on the ship. Other crewmembers were traumatized by witnessing Monegro stab and kill the victim.
Federal agents arrested Monegro after the ship docked at the Port of Los Angeles on September 27, 2020. He has been in federal custody since his arrest.
“The tragic impact of defendant’s conduct cannot be overstated,” prosecutors argued in a sentencing memorandum. “[Monegro’s] murder of M.S. left behind M.S.’s wife and daughter, who was 17 at the time of the murder. M.S. was the sole bread winner for the family, and his death caused significant financial strain on the family.”
The FBI and the United States Coast Guard Investigative Service investigated this matter.
Assistant United States Attorney Matthew W. O’Brien of the Environmental and Community Safety Crimes Section, Assistant United States Attorney Mark A. Williams, Chief of the Environmental and Community Safety Crimes Section, and Assistant United States Attorney Jeffrey M. Chemerinsky of the Violent and Organized Crime Section prosecuted this case.
Pennsylvania man defrauds Morgantown business of $3.5 millionRead the Press Release
CLARKSBURG, WEST VIRGINIA – The former manager of a Morgantown construction company admitted to stealing millions of dollars from the business, United States Attorney William Ihlenfeld announced.
Michael D. Allen, 60, of Irwin, Pennsylvania, pleaded guilty today in federal court to wire fraud and money laundering. Allen was formerly the manager of ABB Construction, LLC, which did business as Accelerated Construction Services. Allen used his position to unlawfully divert $3.5 million in company funds for his own personal benefit.
“When someone abuses a position of trust for personal financial gain, it can be crippling to individuals and to businesses,” said U.S. Attorney Ihlenfeld. “Because of this, we will continue to be aggressive in our pursuit of white-collar criminals like Mr. Allen.”
One of the items that Allen purchased with the stolen money was a 5.19 carat diamond ring for $113,250.
Allen faces up to 30 years in prison in addition to being required to pay back the money that he stole. 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 Jarod J. Douglas is prosecuting the case on behalf of the government. The Internal Revenue Service Criminal Investigations and the Monongalia County Sheriff’s Office investigated. The FBI assisted in the investigation.
U.S. Magistrate Judge Michael John Aloi presided.