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Thursday 27 October 2022
Helena man sentenced to five years in prison for trafficking meth in BozemanRead the Press Release
MISSOULA — A Helena man who admitted to trafficking methamphetamine in the Bozeman community was sentenced today to five years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said.
Asa Sembe Goudiaby, 34, pleaded guilty in July to possession with intent to distribute meth.
U.S. District Judge Dana L. Christensen presided.
The government alleged in court documents that in March 2021, investigators with the Missouri River Drug Task Force obtained meth from Goudiaby and co-defendant, Tajiyah Spano, in several controlled purchases in Bozeman. Officers executed a search warrant on a bedroom rented by Goudiaby and located about 2.3 pounds of meth along with a pistol in a safe in the room. One pound of meth is the equivalent of about 3,624 doses. Goudiaby told officers his most recent purchase was for three pounds of meth and that he was expected to receive five pounds of meth in the next couple of days. Spano was sentenced to 37 months in prison for conviction in the case.
Assistant U.S. Attorney Jennifer S. Clark prosecuted the case, which was investigated by the Missouri River Drug Task Force.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Health Care Company Pleads Guilty and is Sentenced for Conspiring to Suppress Wages of School NursesRead the Press Release
VDA OC LLC (VDA), a health care staffing company, pleaded guilty and was sentenced today for entering into and engaging in a conspiracy with a competitor to allocate employee nurses and to fix the wages of those nurses.
During the conspiracy, from about October 2016 until July 2017, VDA, then known as Advantage On Call, LLC, was one of two primary providers of contract nursing services to the Clark County School District. According to the plea agreement it entered into with the government, VDA, through one of its employees, participated in a conspiracy with another contract health care staffing firm to suppress and eliminate competition by agreeing to allocate nurses and fix the wages of those nurses. At the same hearing during which VDA pleaded guilty, U.S. District Court Judge Richard F. Boulware II sentenced VDA to pay a criminal fine of $62,000 and restitution of $72,000 to victim nurses.
“Free and open labor markets are a cornerstone of the American dream,” said Assistant Attorney General Jonathan Kanter of the Justice Department's Antitrust Division. “Today’s guilty plea demonstrates our commitment to ensuring that workers receive competitive wages and a fair chance to pursue better work and that criminals who conspire to deprive them of those rights are held accountable. The court’s sentence will compensate the hardworking health care workers who were victims of this crime.”
“Protecting workers from antitrust schemes – such as wage-fixing and employee allocation – remains a priority for the U.S. Attorney’s Office,” said U.S. Attorney Jason M. Frierson for the District of Nevada. “We are committed to working with the Antitrust Division and FBI to prosecute anticompetitive conduct that affects opportunities for workers and the labor market.”
“The defendant conspired with a competitor to fix wages and undercut the salaries of school nurses,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “Everyone, especially those responsible for keeping our children healthy and safe, deserves the opportunity to compete for employment in a fair marketplace.”
Today’s announcement is the result of a federal investigation being conducted by the Antitrust Division’s San Francisco Office and the FBI's International Corruption Unit, with assistance from the U.S. Attorney’s Office for the District of Nevada.
Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.
Harrisburg Man Sentenced to 60 Months’ Imprisonment for Firearm OffenseRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on October 24, 2022, Cordae Jones, age 34, of Harrisburg, Pennsylvania, was sentenced to 60 months’ imprisonment by U.S. District Court Judge Christopher C. Conner for a firearm offense.
According to United States Attorney Gerard M. Karam, on March 26, 2022, Jones pleaded guilty to possession of a firearm by a prohibited person. In April 2019, Jones was arrested for an outstanding warrant. A search warrant was executed, and crack cocaine, drug paraphernalia, and a firearm were located in the home. As a previously convicted felon, Jones was prohibited from possessing a firearm.
The case was investigated by the Harrisburg Police Bureau and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Johnny Baer prosecuted 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.
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Group from Burlington Sentenced to Prison Related to Arizona Traffic Stop Yielding 362 pounds of Ice MethamphetamineRead the Press Release
DAVENPORT, IA – Eight people from Burlington have now been sentenced to federal prison for their role in conspiring to distribute drugs in the Burlington area. The conspiracy started by at least December 1, 2019, and continued until November 2, 2021. Those sentenced as part of this drug conspiracy include:
• Kendric Centrall Childs, age 35, was sentenced to 25 years of imprisonment and 10 years of supervised release;
• Rudolph Sinclair Allen, age 37, was sentenced to 20 years of imprisonment and five years of supervised release;
• Clyde Macks Stewart, Jr., age 51, was sentenced to 17 years of imprisonment and five years of supervised release;
• Demetrius Antre Goudy, age 42, was sentenced to 18 years of imprisonment and five years of supervised release;
• Marcus Allen Johnson, age 46, was sentenced to 15 years of imprisonment and five years of supervised release;
• Gregory Jermain Johnson, age 36, was sentenced to 14 years of imprisonment and five years of supervised release;
• Brian Keith Davis, age 42, was sentenced to 10 1/2 years of imprisonment and five years of supervised release; and
• Julie Jeanne Mason, age 54, was sentenced to 10 years of imprisonment and three years of supervised release.
According to court documents, Gregory Johnson, Marcus Johnson, and Rudolph Sinclair were the “middlemen” for the group and received large quantities of ice methamphetamine from Kendric Childs, the main drug source, along with another individual (who has not yet been apprehended). Gregory Johnson, Allen, and Marcus Johnson either sold quantities of ice methamphetamine themselves or provided it to lower-level dealers such as Goudy, Stewart, and Davis for distribution. Mason was identified as a drug courier for the group.On January 24, 2020, Mason was stopped in Arizona while transporting approximately 362 pounds of ice methamphetamine. Mason admitted the ice methamphetamine was bound for Burlington, Iowa. At the time, this traffic stop was the Arizona Department of Public Safety’s largest single seizure of ice methamphetamine.1
U.S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The case was investigated by Southeast Iowa Narcotics Taskforce, Burlington Police Department, West Burlington Police Department, Des Moines County Sheriff’s Office, Henry County Sheriff’s Office, Federal Bureau of Investigation, Iowa Division of Narcotics Enforcement, Drug Enforcement Administration, Muscatine County Sheriff’s Office, Johnson County Drug Taskforce, Washington County Sheriff’s Office, Lee County Drug Taskforce, Muscatine County Drug Taskforce, Iowa State Patrol, and Arizona Department of Public Safety.
1 Trooper’s Traffic Stop Leads to 362 lb. Meth Seizure, Largest in AZDPS History, Arizona Dep’t Public Safety, https://www.azdps.gov/news/releases/933 (Jan. 27, 2020).
Grandview Man Pleads Guilty to Illegally Possessing FirearmRead the Press Release
KANSAS CITY, Mo. – A Grandview, Mo., man who used his Snapchat account to sell illegal drugs and firearms pleaded guilty in federal court today to illegally possessing a firearm after selling a stolen handgun to an undercover federal agent.
Antonio Johnson, 20, pleaded guilty before U.S. District Judge Brian C. Wimes to one count of possessing a firearm in furtherance of a drug-trafficking crime.
An undercover agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives arranged four controlled purchases of marijuana from Johnson in July and August 2020. Johnson was active on social media, especially the social media platform Snapchat. Investigators observed numerous videos and photos of Johnson on his Snapchat account, many of which show Johnson smoking what appears to be marijuana and displaying firearms and large amounts of cash. Johnson often appeared to be advertising he sale of suspected marijuana and firearms.
When Johnson met the undercover agent for the first transaction, he was armed with a pistol placed between the driver’s seat and center console of the vehicle he was driving, and a black rifle sitting on the lap of a passenger in the vehicle.
On Aug. 31, 2020, the undercover federal agent contacted Johnson and told him she wanted to purchase a pistol from him, and they agreed on a price of $450. On Sept. 1, 2020, Johnson met the undercover agent at his apartment and handed her a Glock 9mm semi-automatic handgun and a baggie that contained 29 grams of marijuana for which she paid a total of $680 ($450 for the pistol and $230 for the marijuana). The pistol had been stolen from the personal vehicle of a Grain Valley, Mo., police officer in August 2020. Johnson also agreed to get her more firearms.
Under federal statutes, Johnson is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Trey Alford. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Operation LeGend
Operation LeGend is a federal partnership with local law enforcement to address the increase in homicides and violent crime in Kansas City, Mo., in 2020. The operation honors the memory of four-year-old LeGend Taliferro, one of the youngest fatalities during a record-breaking year of homicides and shootings. Additional federal agents were assigned to the operation from the FBI, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service.
Government Prime Contractor Ordered to Pay $1.1 Million for Subcontractors’ Kickback Scheme on Wounded Warrior ProgramRead the Press Release
ALEXANDRIA, Va. – On October 24, the U.S. District Court for the Eastern District of Virginia held Management Consulting, Inc. (Mancon), located in Virginia Beach, strictly liable under the Anti-Kickback Act and ordered it to pay a $1,088,803 civil penalty.
The United States filed a civil complaint against Mancon to recover a civil penalty under the strict liability provision of the Anti-Kickback Act. From 2008 to 2015, Mancon served as a prime contractor for the United States’ Wounded Warrior Program. From 2012 to 2015, the subcontractor that Mancon selected to work on its prime contracts accepted $1,088,803 in kickbacks from a lower-tier subcontractor in exchange for work on Mancon’s prime government contracts. The United States previously recovered $4.3 million from Mancon’s subcontractor to resolve False Claims Act and Anti-Kickback Act claims related to the kickback scheme on Mancon’s Wounded Warrior contracts and other prime government contracts.
The Court held that Mancon, as a prime contractor, was strictly liable for a civil penalty equal to the value of the kickbacks paid and accepted by its subcontractors on the Wounded Warrior contracts. The Court also held that this penalty was constitutional, and that the penalty was not subject to an offset based on the United States’ prior recoveries from Mancon’s subcontractors.
This litigation was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia; the Department of Defense Office of Inspector General, Defense Criminal Investigative Service’s Mid-Atlantic Field Office; U.S. Army Criminal Investigation Division, Major Procurement Fraud Field Office; and the Naval Criminal Investigative Service.
The case was litigated by Assistant U.S. Attorneys William Hochul III and Kristin Starr.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cv-890.
Georgia Man Sentenced to Federal Prison for Using Stolen Identities to Obtain Food Stamps and Attempt to Purchase a Luxury VehicleRead the Press Release
PORTLAND, Ore.—A Georgia man was sentenced to federal prison today for using stolen identities to fraudulently obtain Supplemental Nutrition Assistance Program (SNAP) benefits and attempt to purchase a luxury vehicle worth nearly $80,000.
Mackenzie Braswell Sherman, 38, was sentenced to 24 months in federal prison and one year of supervised release.
According to court documents, in April 2019, Sherman used an adult victim’s personal information to submit an application to the Oregon Department of Human Services (Oregon DHS) for SNAP benefits funded by the U.S. Department of Agriculture (USDA). Sherman’s application was approved and he received $1,152 in food stamps.
Later, in October 2019, Sherman attempted to use the personal information of a second adult victim to obtain an auto loan to purchase a Mercedes Benz valued at nearly $80,000. Car dealership employees called the police and Sherman was arrested. When officers searched his vehicle, they located documents with several victims’ personal information, fraudulent bank cards, and a card reader.
Further investigation revealed that Sherman had opened or attempted to open multiple accounts with different financial institutions using stolen personal information. One institution, Unitus Federal Credit Union, suffered a loss of more than $1,800 when Sherman deposited fake checks into one of his fraudulently obtained accounts.
On January 8, 2020, a federal grand jury in Portland returned a five-count indictment charging Sherman with aggravated identity theft, theft of government funds, social security fraud, and access device fraud.
On September 6, 2022, Sherman pleaded guilty to aggravated identity theft.
This case was investigated by Homeland Security Investigations (HSI), the USDA Office of Inspector General (USDA-OIG), and the Social Security Administration Office of Inspector General (SSA-OIG) with assistance from Oregon DHS and the Portland Police Bureau. It was prosecuted by Assistant U.S. Attorney Rachel K. Sowray.
Gary Man Convicted of Armed Bank Robbery Resulting in DeathRead the Press Release
HAMMOND- Hailey Gist-Holden, age 26, of Gary, Indiana, was found guilty following a 9-day jury trial presided over by United States District Court Judge Philip P. Simon, announced United States Attorney Clifford D. Johnson.
The jury found Gist-Holden guilty of armed robbery, and using, carrying, brandishing and discharging a firearm during that bank robbery. The jury found that, as part of the robbery and the discharging of the firearm, Gist-Holden murdered a bank security guard. The charges stemmed from the June 11, 2021 robbery of a bank in Gary, Indiana.
Previously, co-defendants James Anthony King and Kenyon Hawkins pled guilty to armed bank robbery and murder resulting from the discharge of a firearm during the robbery. Both are awaiting sentencing.
Gist-Holden’s sentencing is scheduled for January 19, 2023. Any specific sentence to be imposed will be determined by the District Court Judge after consideration of federal statutes and the United States Sentencing Guidelines.
This investigation was led by the Federal Bureau of Investigation Gang Response Investigative Team with the assistance of the Lake County Sheriff’s Department; the Lake County Prosecutor’s Office; the Indiana State Police; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Gary Police Department. Additional investigative assistance was provided by FBI Chicago, FBI Miami, and FBI Atlanta along with the Georgia State Police, the Atlanta Police Department and the Lowndes County (GA) Sheriff’s Department. In addition, the United States Attorney’s Offices in the Northern District of Georgia, the Middle District of Georgia and the Middle District of Florida were involved in this cooperative effort. This case is being prosecuted by Assistant United States Attorneys Caitlin M. Padula and Michael J. Toth. Assistance was also provided by Assistant United States Attorneys Kimberly Schultz and David Nozick.
Four Members of Drug Trafficking Conspiracy Sentenced to Federal Prison for Trafficking Heroin Mixed with Fentanyl from California to IndianapolisRead the Press Release
INDIANAPOLIS– Charles Kirby, 45, of Indianapolis, was sentenced to 10 years in federal prison after being convicted of heroin trafficking conspiracy and attempted possession with the intent to distribute heroin following a three-day federal jury trial in Indianapolis.
According to court documents, between April 1, 2019, and May 13, 2019, Kirby, and co-conspirators Elias Parada-Borquez, Javier Lopez-Juarez, and Denice Cardenas, engaged in a drug conspiracy to distribute 2,354 grams of a heroin-fentanyl mixture in Indianapolis. According to the Drug Enforcement Administration (DEA), as little as 2 milligrams of fentanyl can be fatal, depending on a person’s body size, tolerance, and past usage. One kilogram of fentanyl has the potential to kill 500,000 people.
On May 13, 2019, law enforcement officers initiated a traffic stop of a vehicle for traffic violations on I-70 in Foristell, Missouri. The vehicle was being driven by Lopez-Juarez, and Cardenas and Parada-Borquez were passengers in the vehicle. A K-9 officer approached the vehicle and indicated the presence of narcotics in the vehicle. The vehicle and its occupants were transported to a secure tow lot and the vehicle was searched. When the rear spare tire on the vehicle was removed, three individually wrapped packages later determined to be a heroin-fentanyl mixture were found.
Law enforcement officers learned that Parada-Borquez, Lopez-Juarez and Cardenas had picked up the drugs in San Bernadino, California and were to deliver the heroin-fentanyl mixture to Kirby, who intended to sell the drugs in Indianapolis. Parada-Borquez, Lopez-Juarez and Cardenas were supposed to wait in Indianapolis until Kirby sold the drugs before returning to San Bernadino and then collect the drug trafficking proceeds for the Mexican-based source of supply.
A few weeks prior to the traffic stop in Missouri, Parada-Borquez, Lopez-Juarez, and Cardenas drove to Indianapolis to pick up a motorcycle and a Camaro from Kirby as collateral for a drug debt owed to the drug trafficking organization.
Further investigation led to the arrest of Kirby later that evening for his role in the drug trafficking organization. Kirby was found in possession of a loaded Glock .45 handgun at the time of his arrest.
The jury acquitted Kirby of a charge of carrying a firearm during and in relation to a drug trafficking offense.
Parada-Borquez, Lopez-Juarez and Cardenas all pleaded guilty to their participation in the heroin trafficking conspiracy and received the following sentences listed below.
Elias Parada-Borquez, 42, of Mexico, was sentenced to 41 months in federal prison followed by one year of supervised release on September 29, 2022.
Javier Lopez-Juarez, 24, of San Bernadino, California, was sentenced to 46 months in federal prison followed by two years of supervised release on November 17, 2020.
Denice Cardenas, 40, of San Bernadino, California, was sentenced to 40 months in federal prison followed by four years of supervised release on September 26, 2022.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Michael Gannon, Assistant Special Agent in Charge of the DEA’s Indianapolis Field Office, made the announcement.
The DEA Indianapolis Field Office investigated the case in conjunction with the DEA St. Louis Field Office. The St. Charles County Police Department in Missouri provided valuable assistance. The sentence was imposed by U.S. District Judge Jane Magnus-Stinson. As part of the sentence, Judge Magnus-Stinson ordered that Kirby be supervised by the U.S. Probation Office for five years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorneys Lawrence D. Hilton and M. Kendra Klump 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.
Former United Nations Employee Sentenced to 15 Years in Prison for Drugging and Sexually Assaulting VictimsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that KARIM ELKORANY, a former communications specialist with the United Nations (“UN”) in Iraq, was sentenced today in Manhattan federal court by United States District Judge Naomi Reice Buchwald to 15 years in prison for drugging and/or sexually assaulting 20 victims. ELKORANY previously pled guilty on May 24, 2022, to sexually assaulting an internationally protected person and making false statements to cover up another sexual assault. In connection with the plea, ELKORANY also admitted that he drugged and/or sexually assaulted 17 additional victims.
U.S. Attorney Damian Williams said: “Karim Elkorany perpetrated monstrous acts against multiple women over nearly two decades. At today’s proceeding, Elkorany was held accountable by the Court and also by his victims, a number of whom confronted him with powerful statements about the grievous harm he caused through his horrific conduct. We express deep gratitude to all of the victims for their bravery in coming forward and remain committed to doing all we can to bring perpetrators like Elkorany to justice.”
According to the Superseding Indictment, public court filings, and statements during court proceedings:
Since at least in or about 2005 up to at least in or about April 2018, ELKORANY worked in international aid, development, and/or foreign relations. From in or about October 2013 up to in or about April 2016, ELKORANY worked for the UN Children’s Fund (commonly known as UNICEF) in Iraq. From in or about July 2016 up to in or about April 2018, ELKORANY worked as a Communications Specialist for the UN in Iraq.
In or about November 2016, ELKORANY drugged and sexually assaulted a woman (“Victim-1”) in Iraq, where he was stationed while working for the UN. ELKORANY drugged Victim-1 and brought Victim-1 to his apartment. While at ELKORANY’s apartment, ELKORANY sexually assaulted Victim-1 while she was unconscious. In or around December 2016, Victim-1 reported the sexual assault to the UN. The UN initiated an investigation, through which ELKORANY was notified of the substance of Victim-1’s allegations against him.
On or about November 3, 2017, special agents with the New York Field Office of the Federal Bureau of Investigation (“FBI”) conducted a voluntary interview of ELKORANY outside of his residence in New Jersey. During that interview, ELKORANY expressed familiarity with the nature and substance of the allegations made by Victim-1 to the UN but falsely stated that the drugging and sexual assault by ELKORANY that Victim-1 had reported to the UN did not occur.
ELKORANY also engaged in a pattern of similar conduct involving many other women. Between in or around 2014 and in or around 2019, ELKORANY drugged and sexually assaulted a woman (“Victim-2”), who was a contractor for a UN organization at relevant times, in the United States and Iraq, among other locations, on multiple occasions.
In addition to Victim-1 and Victim‑2, ELKORANY drugged and/or sexually assaulted 18 additional victims between in or around 2002 and in or around 2016.
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In addition to the prison sentence, ELKORANY, 39, of West Orange, New Jersey, was sentenced to three years of supervised release and ordered to pay restitution in amounts to be determined.
Mr. Williams praised the outstanding work of the FBI.
The case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Lara Pomerantz, Amanda L. Houle, Daniel C. Richenthal, and Robert B. Sobelman are in charge of the prosecution.
Former U.S. soldier admits to murder of Fort Stewart servicemember found stabbed to death in installation housingRead the Press Release
SAVANNAH, GA: A former U.S. Army sergeant has admitted he stabbed to death a former fellow soldier whose body was found in his Fort Stewart barracks room in June 2020.
Byron Booker, 29, of Ludowici, Ga., awaits sentencing after pleading guilty to Premeditated Murder of a Member of the United States Uniformed Services, said David H. Estes, U.S. Attorney for the Southern District of Georgia. In accordance with his plea agreement, Booker faces a mandatory minimum sentence of life in prison, and there is no parole in the federal system.
“Byron Booker murdered a former fellow soldier in cold blood in retaliation for that soldier performing his duties as a service member,” said U.S. Attorney Estes, himself a retired U.S. Army Colonel. “The FBI and the Department of the Army Criminal Investigative Division did outstanding work in solving this despicable crime and bringing Booker to justice.”
Booker’s co-defendant, Jordan Brown, 21, of St. Marys, Ga., awaits further proceedings on charges of Conspiracy; Assault Upon a Member of the United States Uniformed Services; Conspiracy to Retaliate Against a Witness; Retaliation Against a Witness with Bodily Injury; Retaliation Against a Witness with Killing; Murder of a Member of the United States Uniformed Services; and Premeditated Murder. He is considered innocent unless or until proven guilty.
Booker, a former U.S. Army sergeant, admitted he and Brown discussed “silencing” Specialist Austin J. Hawk, 21, at Fort Stewart Military Reservation, in retaliation for Hawk reporting Brown to U.S. Army leadership for marijuana use. As described in the plea agreement, after gaining entry to Hawk’s barracks room shortly after midnight on June 17, 2020, Booker “slashed and stabbed Hawk repeatedly with a sharp-edged weapon.” A medical examiner later noted that Hawk received 40 separate stab or slash wounds.
Hawk’s body was found in his Fort Stewart barracks room the next day.
“The collective response by the Department of Defense and the Department of Justice to this murder exemplifies the phenomenal teamwork between the Department of the Army Criminal Investigation Division, FBI, and the U.S. Attorney’s Office in the Southern District of Georgia,” said Rusty Higgason, Assistant Special Agent-in-Charge of the CID Southeast Field Office. “From the CID forensic science technicians who responded from multiple locations to process the scene, to the U.S. Army Criminal Investigation Laboratory and the FBI Crime Lab, who processed hundreds of pieces of evidence, the entire team did an outstanding job."
“Booker’s plea is a direct result of the hard work and persistence put in by the FBI Savannah Resident Agency and our partners at the U.S. Army and the U.S. Attorney’s Office for the Southern District of Georgia,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Hawk’s family and friends will never be rid of the pain this senseless murder has caused them, but hopefully it gives them some sense of resolve to know that justice will be served.”
U.S. Attorney Estes also commended the work of CID Forensic Science Technicians from Fort Stewart, Fort Bragg, Fort Gordon, and Fort Jackson, and from the analysts with the U.S. Army Criminal Investigation Laboratory and the FBI Crime Lab.
The Department of the Army Criminal Investigation Division and the FBI are investigating the case, which is being prosecuted for the United States by Southern District of Georgia Assistant U.S. Attorneys Jennifer G. Solari and Darron J. Hubbard.
Former U.S. Navy Service Member Pleads Guilty to $2 Million Insurance Fraud SchemeRead the Press Release
Assistant U. S. Attorneys Peter Ko (619) 546-7359 and Mark Conover (619) 546-6763
NEWS RELEASE SUMMARY – October 27, 2022
SAN DIEGO – Christopher Toups, who at the time of his crimes was a chief petty officer in the U.S. Navy, pleaded guilty in federal court today, admitting that he and others participated in a scheme to file false claims to obtain unearned benefits from an insurance program that compensates service members who suffer serious and debilitating injuries while on active duty.
According to his plea agreement, participants in the scheme obtained approximately $2 million in payments from fraudulent claims submitted to the insurance program - Traumatic Servicemembers Group Life Insurance Program, or TSGLI - and Toups personally obtained about $400,000.
At today’s hearing, Toups pleaded guilty to conspiracy to commit wire fraud. He admitted that from 2012 to at least December 2015, he conspired with his then-spouse Kelene McGrath, Navy Dr. Michael Villarroel, and others to obtain money from the United States by making claims for life insurance payments based on exaggerated or fake injuries and disabilities. He is scheduled to be sentenced on February 3, 2023, at 9 a.m.
“The theft of military healthcare dollars directly harms service members and taxpayers,” said U.S. Attorney Randy Grossman. “This fraud was costly for the U.S. Navy, and now for this defendant.” Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.
“Fraudulently filing claims for unearned TSGLI benefits diverts compensation from deserving service members who suffered serious and debilitating injuries while on active duty,” said Special Agent in Charge Rebeccalynn Staples with the Department of Veterans Affairs Office of Inspector General’s Western Field Office. “Worse yet, this defendant actively recruited others into the scheme to feed his greed for compensation he did not deserve. This guilty plea is a testament to the VA OIG’s commitment to investigating those who would defraud benefit programs administered by VA.”
“The Traumatic Servicemembers Group Life Insurance Program is designed to compensate service members who suffer serious and debilitating injuries while on active duty. Falsely claiming benefits from this program siphons money from deserving beneficiaries and makes medical care more costly for all of us,” said Stacey Moy, Special Agent in Charge of the FBI San Diego Division. “This scheme is particularly egregious given the service members involved deceitfully served themselves for their own financial gain. The FBI will continue to work with our law enforcement partners to ensure those who willingly defraud the American people are held accountable.”
The Traumatic Servicemembers Group Life Insurance (TSGLI) program was administered by Prudential for the Navy and funded by servicemembers and the Department of the Navy. TSGLI provided financial assistance to servicemembers recovering from traumatic injuries.
According to the plea agreement, in addition to submitting his own TSGLI claims based on fake injuries and disabilities, Toups encouraged numerous current or former Navy servicemembers to submit claims and sometimes told them to provide medical records to McGrath. McGrath, a nurse, falsified or doctored medical records to exaggerate or fake injuries. Villarroel certified that he reviewed the records and determined activities of daily living were lost or impaired and consistent with the claimed injuries as required for claims to be processed and qualify, at times supporting the determination by falsely stating he interviewed the claimant. Villarroel also, at times, provided others’ medical records for McGrath to use in fabricating claims.
Toups admitted that he encouraged recipients of claim payments to give him part of the money, sometimes characterizing it as a “processing fee.” McGrath and Villarroel received part of the kickback depending on their involvement in the claim. Toups paid Villarroel in cash and by cashier’s check. At times, Toups and other conspirators conducted financial transactions in amounts under $10,000 to evade perceived financial reporting requirements.
According to court records, some of Toups’ co-defendants were part of the Explosive Ordinance Disposal Expeditionary Support Unit One (“EOD ESU One”), based in Coronado, California. Toups was a Chief Petty Officer Construction Mechanic.
Ronald Olmsted and Anthony Coco, who each entered guilty pleas earlier this year, were previously sentenced by U.S. District Judge Janis L. Sammartino. Olmsted was sentenced to four months in prison followed by four months of home detention to be served as part of three years of supervised release. Coco was sentenced to four months of home detention to be served as part of three years of probation.
According to court records, Toups, Villarroel, and Meyer were at the center of the scheme, and together the conspirators defrauded the TSGLI program of nearly $2 million. Toups, Villarroel, and Meyer received kickbacks for creating and filing the fraudulent TSGLI applications for other U.S. Navy service members.
DEFENDANT 18CR1674-JLS
Christopher Toups 43 Woodstock, GA
RELATED CASES
Kelene Meyer 18CR1674-JLS 44 Jacksonville, FL
Dr. Michael Villarroel 18CR1674-JLS 48 Coronado, CA
Paul Craig 18CR1674-JLS 47 Austin, TX
Richard Cote 18CR1674-JLS 45 Oceanside, CA
Earnest Thompson 18CR1674-JLS 46 Murrieta, CA
Ronald Olmsted 20CR0659-JLS 48 Mobile, AL
Anthony Coco 20CR0197-JLS 43 San Diego, CA
Stephen Mulholland 20CR0052-JLS 51 Panama City Beach, FL
SUMMARY OF CHARGES
Toups:
18 U.S.C. § 1349, Conspiracy to Commit Wire Fraud
Maximum Penalty: Twenty years in prison, $250,000 fine, forfeiture and restitution
Others:
18 U.S.C. § 1349, Conspiracy to Commit Wire Fraud
Maximum Penalty: Twenty years in prison, $250,000 fine, forfeiture and restitution
18 U.S.C. § 1343, Wire Fraud
Maximum Penalty: Twenty years in prison, $250,000 fine, forfeiture and restitution
18 U.S.C. § 287, Making a False Claim
Maximum Penalty: Five years in prison, $250,000 fine
AGENCIES
Federal Bureau of Investigation
Naval Criminal Investigative Service
Department of Veterans Affairs - Office of Inspector General
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Former Texas State Representative Pleads Guilty to Tax EvasionRead the Press Release
A former member of the Texas House of Representatives pleaded guilty today to evading payment of outstanding taxes he owed to the IRS. The plea was entered before U.S. Magistrate Judge Susan Hightower.
According to court documents and statements made in court, from approximately May 2011 through October 2019, Ronald Ray Wilson, formerly of Austin, willfully attempted to evade payment of income taxes he owed to the IRS. From 1977 through 2004 Wilson was an elected member of the Texas House of Representatives. In 1995, he also created a law firm, Ron Wilson & Associates. After leaving the Texas House of Representatives, Wilson earned a monthly pension from his service and continued to work as a lawyer.
In September 2008 and February 2011, Wilson agreed to two U.S. Tax Court decisions finding that he owed outstanding taxes to the IRS. After stipulating to these judicial decisions, Wilson took steps to conceal his income and assets from the IRS to avoid payment of the overdue taxes. Specifically, Wilson utilized his law firm’s trust account – which was limited to holding client funds – to conceal his personal assets by depositing his monthly salary into this account. Furthermore, to avoid an IRS levy placed on his personal bank account, Wilson ceased direct deposit of his monthly pension from the House of Representatives and instead ensured that he would receive physical checks. He deposited some of these checks into accounts belonging to a trust for which he served as trustee, then converted the deposited funds into cashier’s checks for his own use. In total, Wilson caused a tax loss to the IRS of approximately $794,632.
Wilson is scheduled to be sentenced at a later date and faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will first accept Wilson’s guilty plea and then determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation is investigating the case.
Assistant Chief David Zisserson and Trial Attorney Ashley Stein of the Tax Division is prosecuting the case.
Former Philadelphia Sheriff’s Deputy Arrested and Charged with Trafficking FirearmsRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Samir Ahmad, 29, of Philadelphia, PA, was charged by Criminal Complaint with firearms trafficking and selling firearms to a person unlawfully in the United States, arising from his sale of two semi-automatic pistols to a confidential informant while he was employed as a Deputy Sheriff with the Philadelphia Sheriff’s Office.
According to the court documents, Ahmad was employed as a Deputy Sheriff with the Philadelphia Sheriff’s Office beginning in February 2018. In October 2022, when Ahmad was a sworn law enforcement officer as a Deputy Sheriff, he allegedly sold two semi-automatic pistols and ammunition to a confidential informant. During the exchange, the informant explained to Ahmad that he was unlawfully in the United States, and that he could “get deported” if he was caught in possession of a gun. As detailed in the Criminal Complaint, Ahmad responded, simply: “You don’t got to worry about none of that.” The defendant made $3,000 from the sale of the firearms. On October 19, 2022, Ahmad was terminated from employment with the Philadelphia Sheriff’s Office and arrested by federal agents.
The investigation is ongoing.
“As alleged, Samir Ahmad abused his authority – to the greatest extent possible – as a sworn law enforcement officer,” said U.S. Attorney Romero. “The defendant was allegedly illegally selling firearms on the street to at least one person who was not permitted to possess them, adding fuel to the already-incendiary fire of deadly gun violence in the City of Philadelphia. Working with our law enforcement partners, we are doing all that we can to investigate and prosecute those responsible for the violence.”
“The idea of a sworn public servant so blatantly undermining public safety is reprehensible,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Philadelphia is awash in illegal guns, which are being used to commit violent crimes, so every weapon we can take off the street and every trafficker we can lock up makes a difference. The FBI and our partners will continue to do everything in our power to make this city safer.”
“The result of this investigation is the paradigm of collaboration between our local, state, and federal partners,” said Eric Degree, acting Special Agent in charge of ATF’s Philadelphia Field Division. “We cannot let the gun violence we are seeing become the norm. We will continue to use our expertise to identify, investigate, and incarcerate those who commit and those who facilitate the violent firearm crimes that plague our streets.”
If convicted, the defendant faces a maximum possible sentence of 15 years in prison.
The case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Department of Labor Office of the Inspector General, and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorneys J. Jeanette Kang and Justin T. Ashenfelter.
Former Owner & CFO of Auto Masters Indicted in Multi-Million Dollar Bank Fraud SchemeRead the Press Release
NASHVILLE – A 21-count indictment, unsealed today, charges the former owner and the former Chief Financial Officer of Auto Masters with conspiracy to commit bank fraud and other charges related to a multi-million-dollar scheme to defraud financial institutions, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
Mahan (Mark) Janbakhsh, 47, of Brentwood, Tennessee, and Steven L. Piper, 51, of Joelton, Tennessee, were indicted on Monday and arrested earlier today by FBI agents. Both will appear before a U.S. Magistrate Judge in Nashville later today.
The indictment charges Janbakhsh and Piper with conspiring to defraud Capital One and First Tennessee Bank (now First Horizon); five counts of defrauding these financial institutions; five counts of making false statements and over-valuing property and securities for the purpose of influencing these financial institutions; and three counts of making false representations during official proceedings. Other counts in the indictment charge both defendants with making false statements under oath. Additionally, the indictment charges Janbakhsh with witness tampering and charges Piper with three counts of filing false tax returns.
According to the indictment, Janbakhsh was the majority owner and CEO of America’s United Financial, LLC, and Affiliates, a business that was made up of nine used car dealerships and six related finance companies located in and around Nashville, Tennessee (collectively referred to as Auto Masters). Additionally, Janbakhsh owned other automobile, radio, and real estate related businesses, including Plaza Mariachi, which is an entertainment center and market in South Nashville.
Piper was a Certified Public Accountant and was the Chief Financial Officer of all the Auto Masters entities and prepared the tax returns for Auto Masters and for Janbakhsh personally.
The dealerships sold used cars and provided car loans in connection with those sales. The car loans were then sold to the related Auto Masters finance companies which operated using a line of credit with Capital One and First Tennessee Bank. In order to continue operating with the line of credit, Auto Masters was required to submit monthly borrowing base certificates to report the total value of eligible loans, which formed the collateral for the line of credit.
On October 9, 2017, Piper submitted a borrowing base certificate to Capital One for the period ending September 31, 2017, disclosing that Auto Masters had overstated its collateral by over $33 million. In the certificate, Auto Masters admitted that it had drawn over $26.4 million more than it was permitted to draw under the terms of the line of credit. The following week, Auto Masters filed for bankruptcy. During the bankruptcy proceedings, Capital One sought to depose the loan portfolio and collection manager for Auto Masters, but were unable to do so, as he had left the jurisdiction. The bankruptcy receiver determined that as of July 31, 2017, Auto Masters had overstated its collateral by nearly $37 million, and had drawn over $24 million more than Auto Masters was permitted to draw.
The indictment alleges that Janbakhsh, Piper, and others, manipulated the financial database of Auto Masters and caused false reports to be sent to Capital One to make it appear as though there was more collateral than there actually was. The database manipulation included making false entries to make delinquent loans appear current, and creating false loans based on duplicate Vehicle Identification Numbers, vehicles that had been repossessed, vehicles that had been paid off, and using information from customers who had applied for loans but had been rejected.
The indictment alleges that Janbakhsh and Piper falsely testified during bankruptcy proceedings that they had no knowledge of anyone reporting false information to the lenders and were not involved in the fraudulent scheme.
The indictment also alleges that Janbakhsh engaged in witness tampering with the intent to hinder the federal investigation when he gave the former Auto Masters portfolio manager a cash payment of $10,000 and promised him an additional sum of approximately $300,000 if he would leave the jurisdiction to prevent him from providing information about the fraud to federal agents.
Finally, the indictment alleges that Piper submitted false individual income tax returns for the tax years 2016, 2017, and 2019, in which he underreported his personal income.
The indictment also contains a forfeiture allegation in which the United States seeks to recover all property representing the proceeds derived from the crimes, including a money judgement.
If convicted, Janbakhsh and Piper face up to 30 years in prison and a $1 million fine.
This case was investigated by the FBI and IRS-Criminal Investigation based upon a referral for investigation and prosecution by the U.S. Trustee’s Office. Assistant U.S. Attorneys Kathryn W. Booth and Thomas Jaworski are prosecuting the case. Assistant U.S. Attorney J. Matthew Blackburn is handling the forfeiture.
All defendants are presumed innocent until proven guilty in a court of law.
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Former Northeastern University Employee Previously Arrested for Staging a Hoax Explosion Indicted by Federal Grand JuryRead the Press Release
BOSTON – A Texas man was indicted by a federal grand jury today for allegedly staging a hoax explosion at Northeastern University in Boston and providing law enforcement with materially false and misleading information about the incident.
Jason Duhaime, 45, formerly of San Antonio, was indicted on one count of intentionally conveying false and misleading information related to an explosive and two counts of making materially false statements to a federal law enforcement agent. Duhaime was arrested and charged by criminal complaint on Oct. 4, 2022.
According to the indictment returned today, Duhaime, who at the time was employed as the New Technology Manager and Director of the Immersive Media Lab (the “Lab”) at Northeastern University, placed a 911 call at approximately 7 p.m. on Sept. 13, 2022, to report that he was injured by “sharp” objects expelled from a plastic case he opened inside the Lab that evening. Specifically, it is alleged that Duhaime told the 911 operator that upon opening one of two “Pelican” cases he had collected from an on-campus mail area earlier that day, “very sharp” objects flew out and under his shirt sleeves, causing injuries to his arms. Duhaime also allegedly reported that the case contained an anonymous “violent note” directed at the Lab.
Duhaime’s 911 call and concern about the second unopened “Pelican” case triggered a significant law enforcement response that included, among other things, the assistance of two law enforcement bomb squads and the evacuation of a large portion of Northeastern’s Boston campus. Numerous campus-wide alerts were also issued by the Northeastern University Police Department, one of which described an “explosion” on campus.
According to court documents, responding local and federal law enforcement officers observed that the case described by Duhaime to the 911 operator was empty and undamaged. Neither the case nor the letter that Duhaime said was inside the case showed any indication of having been exposed to a forceful or explosive discharge of any type or magnitude. Additionally, the storage closet appeared normal and bomb technicians did not observe any small objects or suspicious debris on the floor or elsewhere.
During subsequent interviews with law enforcement, Duhaime allegedly provided statements about the incident that were consistent with his report to the 911 operator. He allegedly expressly denied fabricating his story about the case, the letter and his injuries.
Forensic analysis of one of the computers seized during a Sept. 14, 2022 search of Duhaime’s office at Northeastern allegedly revealed a word-for-word electronic copy of the letter stored in a backup folder. According to court documents, the metadata associated with this file reflected a “Created Date/Time” of Sept. 13, 2022, at 2:57 p.m. and a “Last Printed Date/Time” of Sept. 13, 2022, at 4:02 p.m.
The charges of intentionally conveying false and misleading information related to an explosive and making materially false statements to a federal law enforcement agent each provide for a sentence of up to five 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; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Boston Police Commissioner Michael Cox; Michael A. Davis, Vice President of Campus Security and Chief of Police at Northeastern University; and Matthew B. Millhollin, Special Agent in Charge for Homeland Security Investigations in New England made the announcement today. This investigation was conducted by the Boston Joint Terrorism Task Force (JTTF) in cooperation with the Northeastern University Police Department. Valuable assistance was provided by the U.S. Postal Inspection Service, Boston Field Division. Assistant U.S. Attorney Jason A. Casey of Rollins’ National Security Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Manager of West Alton Marina Indicted for Federal Sex Trafficking and Child Exploitation OffensesRead the Press Release
CONCORD – John E. Murray, III, of Alton Bay was indicted by a federal grand jury on Monday and charged with twelve counts of production of child pornography and four counts of sex trafficking of a minor, United States Attorney Jane E. Young announced today.
Murray was a manager at the West Alton Marina on Alton Bay, where he was responsible for hiring and supervising seasonal employees, many of whom were minors. The indictment alleges that Murray solicited minor employees of the marina for sexually explicit images and videos of themselves, often in exchange for cash. He is also accused of subjecting minor employees to unwanted sexual contact and sexual acts. The offenses alleged in the indictment took place over the course of several years and date back to at least 2015. Murray has been in state custody since August 2021 on related charges.
The charges in the indictment are only allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This matter was investigated by Homeland Security Investigations and the Alton Police Department, with assistance from the New Hampshire State Police, the New Hampshire Human Trafficking Collaborative Task Force, and the New Hampshire Internet Crimes Against Children Task Force. The case is being prosecuted by Assistant U.S. Attorney Kasey Weiland.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Former Lackawanna County Teacher Sentenced on Child Pornography ChargesRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jaime Ryan Chorba, age 46, of Archbald, Pennsylvania, was sentenced on October 26, 2022, by U.S. District Court Judge Malachy E. Mannion to 180 months of imprisonment for producing child pornography.
According to United States Attorney Gerard M. Karam, Chorba previously admitted that on April 1, 2016, he used his cell phone to produce a video of a minor child engaging in sexually explicit conduct. Chorba was a physical education teacher with Valley View School District, Archbald, Pennsylvania from August 30, 2004 through July 26, 2021.
The case was investigated by the Federal Bureau of Investigation – Philadelphia Division and the Lackawanna County District Attorney’s Office. Assistant U.S. Attorney Jenny P. Roberts prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit justice.gov/psc.
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Former JROTC Instructor Receives 168 Months in Prison for Sexual Exploitation of StudentRead the Press Release
HONOLULU – United States District Judge Jill A. Otake today sentenced Victor Aguilar, 66, of Kauai, Hawaii to 168 months of imprisonment and ten years of supervised release for two counts of possession of child pornography. Judge Otake also ordered $5,980 in restitution and imposed a $10,000 assessment under the Justice for Victims of Trafficking Act. Aguilar previously pleaded guilty to the child pornography offenses on May 11, 2022.
According to documents and information presented in court, Aguilar admitted that on at least two occasions in 2020, he knowingly possessed visual depictions of a minor victim engaged in sexually explicit conduct. He did this knowing that the minor victim was under the age of 18. At that time, Aguilar was an instructor for the Junior Reserve Officers’ Training Corps, or JROTC, at Waimea High School, on Kauai, Hawaii, and the minor victim was one of his students. As Aguilar admitted in his plea agreement, he did not merely possess these visual depictions. Rather, he used, persuaded, or induced the minor victim to engage in sexually explicit conduct for the purpose of producing those visual depictions. Moreover, Aguilar admitted that, by his estimate, he had sexual contact with the minor victim approximately 25 times over a six-month period. This sexual exploitation of the minor victim occurred at school, in his vehicle, and in his home.
“The Court’s sentence reflects both the severity and tragedy of Mr. Aguilar’s crime of child sexual exploitation,” said United States Attorney Clare E. Connors. “As the Department of Justice increasingly focuses on the plight of victims – especially minors like Mr. Aguilar’s victim – our office will continue to work with our law enforcement partners to prosecute perpetrators of these heinous acts and protect victims as they move through the criminal justice system on a path towards healing.”
“Aguilar’s sentencing will hold him accountable for his crimes of exploiting children while in a position of trust,” said John F. Tobon, Special Agent in Charge, Homeland Security Investigations Honolulu. “We appreciate the cooperation of our law enforcement partners and the U.S. Attorney’s office in prosecuting this case so Aguilar will no longer be able to abuse children.”
“The Kauai Police Department (KPD) thanks the dedicated investigators, Hawaii United States Attorney’s Office, Kauai Prosecuting Attorney’s office along with other State and Federal partners in the pursuit of justice and accountability pertaining to Victor Aguilar’s atrocious crimes against a minor,” said Assistant Chief Bryson Ponce of KPD’s Investigative Services Bureau. “The Court’s decision reflects the seriousness of the offenses committed against children. KPD will continue to pursue those who choose to prey on Kauai’s youth while working in collaboration with the appropriate stakeholders to accomplish this. We also recognize this victim including all victims of sexual assault and exploitation in our thoughts and prayers for continued healing and comfort.”
U.S. Attorney Connors praised the outstanding investigative work of Homeland Security Investigations and the Investigative Services Bureau’s Major Crimes Section and the Crime Scene and Laboratory Section of KPD. She also thanked the County of Kauai Office of the Prosecuting Attorney, Waimea High School, the State of Hawaii Department of Education Equity Specialist for the Kauai District, the State of Hawaii Department of Education, the Hawaii Department of Education JROTC Command, and the Hawaii Department of Human Services, Child Welfare Services for their assistance.
Assistant U.S. Attorney Micah Smith handled the prosecution.
Former Investment Manager Sentenced in Multimillion-Dollar Scheme to Defraud Life Insurance CompanyRead the Press Release
A New York man was sentenced today to five years in prison for his participation in a scheme to defraud a North Carolina-based life insurance company that caused approximately $20 million in losses to the company and caused it to be ordered into liquidation.
According to court documents, Bradley C. Reifler, 62, of New York, was the CEO and founder of Forefront Capital Holdings and was responsible for investing approximately $34 million of the insurance company’s assets according to guidelines contained in a trust agreement and investment advisor agreement. Rather than investing the assets in secure investment vehicles as required by the agreements, Reifler misappropriated the funds for the benefit of his own companies and then used the funds for improper purposes, such as paying for overhead expenses and repaying prior investors to whom he owed money. Reifler also diverted other funds to risky investment vehicles that did not comply with the investment guidelines.
In addition, during internal and external audits performed in 2016, Reifler sent the life insurance company fabricated documentation for deals with individuals and entities that did not exist. As a result of Reifler’s fraud, the life insurance company was able to recoup only a portion of the approximately $34 million that it entrusted to Reifler and was ultimately ordered into liquidation. Reifler pleaded guilty in May 2022 to wire fraud.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group made the announcement.
The USPIS investigated the case.
Trial Attorneys Tom Tynan and Michael McCarthy of the Criminal Division’s Fraud Section prosecuted the case.
Former Correctional Officer Admits to Abusive Sexual Contact with InmateRead the Press Release
OAKLAND – Enrique Chavez pleaded guilty in federal court today to abusive sexual contact with a female prison inmate while he was employed as a correctional officer at the Federal Correctional Institute Dublin (FCI Dublin) in Alameda County.
“Correctional institutions play a vital role in securing the safety and welfare of our communities, and its officers must ensure the same for prisoners under their custody and control,” said United States Attorney Stephanie M. Hinds. “Correctional officers are trained and required to act with integrity and professionalism towards the prisoners they supervise. Any officer who breaches those responsibilities and violates the law in doing so should expect a federal criminal investigation and prosecution to follow.”
“The public trusts correctional officers to act with integrity, but instead, Chavez used his position of power to sexually abuse an inmate under his supervision. The DOJ Office of the Inspector General will continue to aggressively investigate allegations of abuse, including sexual abuse, across the BOP,” said Zachary Shroyer, Special Agent in Charge of the Department of Justice Office of the Inspector General Los Angeles Field Office.
“Employees of federal prisons who abuse their authority are not above the law,” said FBI Special Agent in Charge Robert K. Tripp. “The FBI and our partners will continue to identify correctional officers like Chavez who violated federal law and hold them accountable.”
According to the plea agreement he entered today, Chavez, 50, formerly of Manteca, California, was employed in October 2020 as a correctional officer at FCI Dublin. FCI Dublin is a correctional institution operated by the Federal Bureau of Prisons that houses female prisoners. A female prisoner identified only as Victim 1 in the plea agreement was in detention at FCI Dublin. Victim 1 was under Chavez’s supervision and disciplinary authority at the time.
Chavez admitted today in his plea agreement that during October 2020 he met Victim 1 in the food service pantry at FCI Dublin. After they met in the pantry, Chavez locked the door. The lights were turned off. Chavez admitted to putting his hand inside Victim 1’s underwear and touching her genitals. Chavez also admitted to touching the victim’s breasts.
Chavez pleaded guilty today to one count of abusive sexual contact with a prisoner in violation of 18 U.S.C. § 2244(a)(4). The count carries a maximum statutory sentence of two years imprisonment and a $250,000 fine, with a minimum period of supervision following release from prison of five years and a maximum of a lifetime of supervision. However, any sentence following a conviction would be imposed by a court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
United States District Judge Yvonne Gonzalez Rogers set a sentencing hearing for Chavez on February 2, 2023 at 3:00 p.m. Chavez remains out of custody on bond while awaiting his sentencing hearing.
U.S. Attorney Stephanie M. Hinds, DOJ Office of the Inspector General Los Angeles Field Office Special Agent in Charge Zachary Shroyer, and FBI Special Agent in Charge Robert K. Tripp made the announcement.
Assistant U.S. Attorneys Andrew Paulson, Mohit Gourisaria, and Molly K. Priedeman are prosecuting the case, with the assistance of Kay Konopaske and Leeya Kekona. The prosecution is the result of an investigation by the DOJ Office of the Inspector General and the FBI.
Former Charter School Board President Sentenced to 40 Months in Prison for Embezzlement and Wire FraudRead the Press Release
MIAMI – U.S. Federal District Court Judge Rodney Smith has sentenced Jimika Williams to 40 months in prison for embezzling federal funds.
A jury convicted Williams (also known as Jimika Mason) in March of two counts of theft concerning programs receiving federal funds and 18 counts of wire fraud.
According to court records and evidence presented at trial, Williams was the president of Advancement of Education in Scholars Corporation (AESC), a Florida non-profit that operated Paramount Charter School (PCS) located in Broward County. PCS received federal funding through Title 1, which is only paid to a school if more than 50% of the students are eligible for free or reduced cost lunches. PCS also received state funding, paid through the School Board of Broward County.
The trial evidence also established that Williams was the president of another Florida corporation, Florida Scholars Educational Services Corporation (FSESC). Between 2015 and June 2017, Williams unlawfully made payments to herself from AESC’s business account totaling nearly $390,000. This money’s intended use was to operate PCS. Instead, the funds were transferred/deposited into an FSESC account and used for Williams’ personal purchases, which included vehicle payments, a private school, rent, and other personal expenses.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, acting Special Agent in Charge Robert M. Dewitt, Federal Bureau of Investigation, Miami Field Office, and Special Agent in Charge Reginald J. France, U.S. Department of Education, Office of Inspector General, Southeastern Regional Office, announced the sentence.
FBI Miami and the U.S. Department of Education, Office of Inspector General, Southeastern Regional Office, investigated the case. Assistant U.S. Attorneys Cynthia Wood and Eric Morales prosecuted the case. Assistant U.S. Attorney William T. Zloch is handling asset forfeiture.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 20-cr-60135.
Florissant Man Accused of Robbing Five Florissant BusinessesRead the Press Release
ST. LOUIS – A man from Florissant, Missouri was indicted Wednesday and accused of robbing five stores or restaurants in Florissant since 2021.
Kevin E. West Jr., 22, was indicted on five counts of robbery and two counts of possession and brandishing a firearm in furtherance of a crime of violence.
The indictment accuses West of robbing a Dollar Tree store on May 26, 2021, a different Dollar Tree on Dec. 1, 2021, a Subway on January 2, 2022, a GameStop on January 5 and a second Subway on January 28.
West is also facing robbery charges in St. Louis County Circuit Court.
The robbery charges carry a potential penalty of up to 20 years in prison, and the gun charges carry a potential sentence of seven years to life in prison.
This case was investigated by the Florissant Police Department and the FBI. Assistant U.S. Attorney Linda Lane prosecuted the case.
Fitchburg Man Sentenced in Wide-Ranging Fentanyl, Heroin, Crack and Cocaine ConspiracyRead the Press Release
BOSTON – A Fitchburg man was sentenced yesterday in federal court in Worcester for his role in a wide-ranging fentanyl, heroin, crack and cocaine trafficking conspiracy.
Branny Taveras, 40, was sentenced by U.S. Senior District Court Judge Timothy S. Hillman to 40 months in prison and two years of supervised release. On March 11, 2022, Taveras pleaded guilty to conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin, 400 grams or more of fentanyl, 280 grams or more of cocaine base (commonly known as crack cocaine) and 500 grams or more of cocaine.
Following a fatal fentanyl overdose in September 2018, law enforcement began an investigation into a drug trafficking organization (DTO) in the Fitchburg area led by co-conspirators Pedro Baez and Anthony Baez. Beginning in July 2019, electronic communications revealed that Taveras and others in the DTO distributed a fentanyl and heroin mixture on a regular basis to individuals in the Fitchburg area, including to Pedro and Anthony Baez, who redistributed that mixture to others.
Over the course of the investigation, over 1.8 kilograms of a heroin and fentanyl mixture, over 3.6 kilograms of cocaine and over 50 grams of crack cocaine, as well as a stolen, loaded handgun, drug manufacturing equipment and over $376,000 were seized. Taveras was responsible for distributing over 400 grams of a fentanyl and heroin mixture.
Taveras was charged along with 17 others in July 2020. He is the 10th defendant to be sentenced in the case. In December 2020, Anthony Baez was sentenced by Judge Hillman to 13 years in prison and five years of supervised release. On Oct. 24, 2022, a federal jury convicted co-defendant Adiangel Paredes, who is scheduled to be sentenced on March 1, 2023. Three of the remaining defendants, Pedro Baez, Jessica Hughes and Hector Matos have pleaded guilty and are awaiting sentencing.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement today. The Fitchburg Police Department, U.S. Postal Inspection Service and the Lunenburg Police Department also provided valuable assistance. Assistant U.S. Attorney Alathea E. Porter of Rollins’ Narcotics & Money Laundering Unit prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Felon Sentenced to Nearly Four Years for Possession of a Firearm and AmmunitionRead the Press Release
TUCSON, Ariz. – Peter Gregorio Castro, 45, of Patagonia, Arizona, was convicted and sentenced on October 5, 2022, by United States District Judge Cindy K. Jorgenson to 46 months in prison, followed by three years of supervised release. Castro previously pleaded guilty to Possession of a Firearm and Ammunition by a Convicted Felon.
On January 8, 2021, the Tucson Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated a shooting at the Knights Inn located in Tucson, Arizona. Castro had been renting and occupying the motel room where the shooting occurred. Four days later, agents and officers encountered Castro as the passenger in a vehicle associated with the shooting and, at that time, Castro possessed a .40 caliber handgun loaded with 11 rounds of ammunition in his pocket. Castro was previously convicted of aggravated assault with a deadly weapon in 1998, and as a result is prohibited from possessing firearms and ammunition.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation in this case, with assistance from the Tucson Police Department. Assistant U.S. Attorney Angela W. Woolridge, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-21-0617-TUC-CKJ
RELEASE NUMBER: 2022-193_Castro# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Federal jury finds Albuquerque man guilty of assaulting letter carrierRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that a federal jury on Oct. 25 returned a guilty verdict on Elias Gallegos. The jury convicted Gallegos, 27, of Albuquerque, of assaulting a federal officer using a deadly or dangerous weapon, a knife.
Gallegos assaulted a U.S. Postal Service letter carrier on Sept. 17, 2021, as the letter carrier was delivering mail on foot near the corner of Constitution Avenue NE and Monroe St. NE in Albuquerque. Gallegos brandished a knife at the letter carrier, chased him, and then threw a rock at him, which missed.
The letter carrier returned to his mail truck and called 911. As Albuquerque police responded to the scene and attempted to approach Gallegos, Gallegos fled on foot. Gallegos jumped several residential backyard fences before police contained him to a shed in the backyard of a residence on Manzano Street. When Gallegos attempted to approach the back door of the residence, officers apprehended him. During a search of the shed where Gallegos had been hiding, officers found a torch lighter and the pocketknife used in the assault.
“Letter carriers take pride in meeting their appointed rounds regardless of the wrath of the elements,” said U.S. Attorney Uballez. “Our responsibility is to ensure they remain unharmed by assailants as they carry out their duties. I want to thank our Assistant U.S. Attorneys whose hard work won this verdict, as well as our law enforcement partners at the U.S. Postal Inspection Service and the Albuquerque Police Department for investigating this case.”
“The safety of our employees is critical to our mission. U.S. Postal Inspectors will continue to investigate all acts of violence against our employees and bring those who attack them to justice,” stated Melisa Llosa, Inspector in Charge of the USPIS Phoenix Division.
Gallegos will remain in custody pending sentencing, which has not been scheduled. He faces up to up to 20 years in prison.
The U.S. Postal Inspection Service and the Albuquerque Police Department investigated this case. Assistant United States Attorneys Samuel A. Hurtado and Patrick Cordova are prosecuting the case.
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Fairfield Man Indicted for Being a Felon in Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Michael David Punzal Jr., 40, of Fairfield, charging him with being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Aug. 30, 2022, Punzal was found to be in possession of a firearm. Punzal is prohibited from possessing firearms due to seven prior felony convictions, including a 2014 federal conviction for being a felon in possession of a firearm.
This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco and Firearms, and the San Francisco Police Department. Assistant U.S. Attorney Emily G. Sauvageau is prosecuting the case.
If convicted, Punzal faces a maximum statutory penalty of 15 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice 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.
Ecuadorian National Charged with Illegally Reentering U.S.Read the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Bridgeport has returned an indictment charging LUIS SALTO SAICO, 47, a citizen of Ecuador last residing in Danbury, with one count of illegally reentering the U.S. after being deported.
The indictment was returned on October 5, and Saico appeared today before U.S. Magistrate Judge S. Dave Vatti in Bridgeport and entered a plea of not guilty to the charge. Saico has been detained since his arrest on a federal criminal complaint on September 26, 2022.
As alleged in court documents and statements made in court, on January 26, 2006, Saico was arrested in Columbus, Ohio, for aggravated vehicular assault. He subsequently pleaded guilty in Ohio state court to that charge and to one count of operating a motor vehicle while under the influence of alcohol or drugs. After serving approximately eight months of imprisonment, he was removed to Ecuador in July 2008. In July 2022, ICE learned that Saico was residing in Danbury after he was arrested by Danbury Police and charged with sexual assault in the third degree and disorderly conduct.
If convicted of the charge of illegal reentry, Saico faces a maximum term of imprisonment of 10 years.
U.S. Attorney Avery stressed that an indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial at which it is the government’s burden to prove guilt beyond a reasonable doubt.
This matter is being investigated by Homeland Security Investigations, Immigration and Customs Enforcement. The case is being prosecuted by Assistant U.S. Attorney Daniel E. Cummings.
District Man Pleads Guilty to Fatally Stabbing Man in Attack in Southeast WashingtonRead the Press Release
WASHINGTON – Marcel Jackson, 35, of Washington, D.C., pleaded guilty today to fatally stabbing a man earlier this year in Southeast Washington, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Jackson pleaded guilty in the Superior Court of the District Columbia to a charge of voluntary manslaughter while armed. The plea agreement, which is contingent upon the Court’s approval, calls for an agreed-upon term of 9 ½-to-11 ½ years in prison. The Honorable Marisa Demeo scheduled sentencing for Jan. 6, 2023.
According to the government’s evidence, on May 8, 2022, at approximately 11:25 p.m., Jackson approached the victim, Antonio Jones, in the 2800 block of Hartford Street SE, with two knives in both of his hands. He stabbed Mr. Jones multiple times and stood over his body for a short period of time. Then he walked away.
Mr. Jones, 22, suffered at least 27 stab wounds to his body, and died at the scene.
Jackson was arrested on May 10, 2022. He has been in custody ever since.
In announcing the plea, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Criminal Investigations Division Homicide Branch of the Metropolitan Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Lashone Samuels and Victim/Witness Specialist Amy Trotto.
Finally, they commended the efforts of Assistant U.S. Attorney Shehzad Akhtar, who investigated and prosecuted the case.
Detroit Man Sentenced to 35 Years in Prison for Filming Himself Sexually Abusing Young ChildrenRead the Press Release
DETROIT – A Detroit man was sentenced to 35 years in prison today based on his criminal convictions for filming himself sexually abusing three children under the age of nine, and then distributing the child pornography to others over the internet, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by Special Agent in Charge Angie Salazar, Homeland Security Investigations.
Nathanal Pace, a 27-year-old Detroit resident, was arrested in December 2019, after local police received tips that someone in his residence had been trading child pornography online using a cloud-based storage service and a social media application. Homeland Security Investigators in Detroit determined the individual to be Pace, and executed a search warrant at his Detroit residence. During the search, Pace admitted to sexually assaulting multiple children, and creating child pornography.
Subsequently, Pace pleaded guilty to sexually abusing an eight year old boy in January 2019, while recording himself using his cellphone. Pace also pleaded guilty to filming himself sexually abusing a four-year old girl in December 2019.
U.S. Attorney Dawn Ison stated that, “protecting our most vulnerable members of society – our children – remains a top priority for my office.”
“These horrific acts strike at the very fabric of our communities, it is my hope that today’s sentencing can bring some measure of closure to those senselessly victimized by these crimes,” said HSI Detroit Special Agent in Charge Angie Salazar. “HSI Detroit and our law enforcement partners will continue to aggressively investigate child exploitation and bring predators like Pace to justice.”
This case was investigated by Special Agents of Homeland Security Investigations. The case is part of the Project Safe Childhood initiative and was prosecuted by Assistant United States Attorney Maggie Smith.
Denver Man Convicted of Drug and Weapons ChargesRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces a federal jury today found Juleus Judkins, 29, of Denver, guilty of possessing a firearm in furtherance of a drug trafficking crime, possession with intent to distribute less than 50 kilograms of marijuana, and possession with intent to distribute methamphetamine.
According to facts presented at trial, on September 4, 2020, when Aurora Police officers attempted to arrest Judkins on outstanding warrants, he fled from his vehicle on foot, but was immediately apprehended. After seeing a firearm within his vehicle, officers searched his car and found baggies of marijuana and methamphetamine pills, as well as a scale and empty baggies. There was a loaded .380 pistol under his seat. Officers also found $1900 in cash and two cell phones full of drug dealing messages.
William J. Martinez presided over the four-day trial and set a sentencing hearing for June 7, 2023.
The Aurora Police Department, Denver Police Department, and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant United States Attorneys Celeste Rangel and Cyrus Chung prosecuted 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.
Case Number: 21-cr-00055
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For more information about the U.S. Attorney's Office for the District of Colorado, visit: https://www.justice.gov/usao-co/pr
Follow the U.S. Attorney’s Office, District of Colorado, on Twitter USAO_CO for the latest news.
Deming man pleads guilty to child pornography chargesRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that Jeffery Dean Biddle pleaded guilty on Oct. 26 to production and attempted production of child pornography, receipt and attempted receipt of child pornography, and enticement and attempted enticement of a minor. Biddle, 41, of Deming, New Mexico, will remain in custody pending sentencing, which has not been scheduled.
According to the plea agreement and other court records, from about June 24, 2021, to Sept. 4, 2021, Biddle used his cell phone to knowingly coerce someone he believed to be an eight-year-old girl to take pornographic photos to send to him by text message. Biddle specifically requested “naked” pictures and asked for nude photographs approximately 24 times. During these text exchanges, Biddle also sent nude photographs of himself. On June 24, 2021, Aug. 1, 2021, and Sept. 4, 2021, Biddle knowingly received and attempted to receive child pornography from the person he believed was eight years old.
By the terms of his plea agreement, Biddle faces a minimum of 35 years and up to life in prison.
Homeland Security Investigations (HSI) investigated this case with assistance from the FBI, the Drug Enforcement Administration’s Las Cruces District Office, New Mexico State Police, the Deming Police Department, and the District Attorney’s Office for the Sixth Judicial District as part of the New Mexico Internet Crimes Against Children (ICAC) Task Force. The ICAC Task Force Program is a nation-wide network of task forces including over 90 federal, state, local and tribal law enforcement agencies in New Mexico dedicated to investigating, prosecuting and developing effective responses to Internet crimes against children.
Assistant United States Attorneys Marisa A. Ong and Matilda McCarthy Villalobos are prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s 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 http://www.justice.gov/psc/.
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Dallas Attorney Charged with Promoting Illegal Tax ShelterRead the Press Release
An indictment returned by a federal grand jury in Dallas was unsealed today charging a Texas lawyer with wire fraud, conspiracy to commit wire fraud, and helping his clients file false tax returns based on an illegal tax shelter that he promoted.
According to the indictment, from approximately 2012 to 2021 Joseph Garza, of Dallas, promoted a tax shelter that allowed high-income clients to claim fraudulent tax deductions that reduced the taxes they owed to the IRS. Garza and his co-conspirators allegedly directed the clients to transfer funds into shell companies, then returned this money to the clients, untaxed, for their own personal use. To conceal the circular flow of funds, Garza and the co-conspirators allegedly commissioned fictitious business valuation reports, created invoices for fake business expenses, and drafted sham contractual agreements. According to the indictment, Garza’s scheme allowed clients to hide approximately $1 billion dollars from the IRS and caused a total tax loss to the IRS exceeding $200 million.
Garza is scheduled to make his initial appearance tomorrow before U.S. Magistrate Judge Irma Ramirez of the U.S. District Court for the Northern District of Texas. If convicted, he faces a maximum penalty of 20 years in prison for each of the 18 counts of wire fraud, 20 years in prison for conspiracy to commit wire fraud, and three years in prison for each of 22 counts of aiding and assisting in the filing of false federal income tax returns. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Chad E. Meacham for the Northern District of Texas made the announcement.
IRS Criminal Investigations and the FBI are investigating the case.
Assistant U.S. Attorneys Renee Hunter, Katherine Miller, and Marty Basu, and Trial Attorney Robert A. Kemins of the Tax Division are 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.
Dallas Attorney Charged in $1 Billion Tax Shelter SchemeRead the Press Release
A Dallas attorney who allegedly created tax shelters to help high-net-worth clients conceal more than one billion dollars in income from the IRS has been federally charged, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Joseph Garza was indicted Tuesday on 18 counts of wire fraud, one count of conspiracy to commit wire fraud, and 22 counts of aiding and assisting in the preparation of fraudulent income tax returns. He was arrested on October 25, 2022, at his home and made his initial appearance before U.S. Magistrate Judge Ramirez the following day.
“This attorney allegedly hid more than a billion dollars of client income from the IRS, conning the U.S. Treasury out of roughly $200 million and lining his own pockets in the process,” said U.S. Attorney Chad Meacham. “Our country functions best when every citizen pays his or her fair share. We will aggressively pursue anyone who subverts our tax laws.”
"IRS Criminal Investigation and the Department of Justice are working vigorously to stop abusive tax schemes like the ones created by Mr. Garza," said Christopher J. Altemus, Jr., Special Agent in Charge of IRS Criminal Investigation Dallas Field Office. " Mr. Garza exploited his position as an attorney and purported tax expert to try and legitimize his illegal tax scheme. His arrest should serve as a warning that individuals who create elaborate schemes that have no purpose other than to defraud the IRS and shift the tax burden to honest American taxpayers will be prosecuted.”
According to the indictment, Mr. Garza, 79, allegedly created multiple shell companies – including shell “services” companies and shell “investments” companies – to create a circular flow of funds to help clients avoid paying taxes.
These shell companies purported to provide services to the clients’ businesses or to serve as family investment vehicles, but actually had no legitimate purpose other than to move money. Mr. Garza and others allegedly created sham operating agreements, sham service agreements, phony invoices, and false private annuity agreements designed to give the companies the appearance of legitimacy and conceal the scheme from the IRS.
Mr. Garza and others then allegedly assisted clients in the preparation and filing of fraudulent tax returns, including IRS Forms 1120 and 1120-S, falsely deducting businesses expenses for services that were never performed; IRS Forms 1065 for the service companies, falsely reporting gross receipts for payments that were not earned; IRS Forms 1065 for the investment companies, falsely deducting payments from the investment company to the taxpayer for annuities that didn’t exist; and IRS Forms 1040 and 1040X, underreporting the individual taxpayers’ incomes.
He allegedly charged clients a percentage of the predetermined amount of money they had chosen to shelter from taxes.
The scheme allegedly resulted in more than $1 billion in unreported income and more than $200 million in unpaid taxes.
An indictment is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Garza is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to faces a maximum penalty of 20 years in prison for each of the 18 counts of wire fraud, 20 years in prison for conspiracy to commit wire fraud, and three years in prison for each of 22 counts of aiding and assisting in the filing of false federal income tax returns.
Meanwhile, the investigation is ongoing.
IRS – Criminal Investigations’ Dallas Field Division conducted the investigation with the assistance of the Federal Bureau of Investigation’s Dallas Field Office. Assistant U.S. Attorneys Renee Hunter, Katherine Miller, and Marty Basu of the Northern District of Texas are prosecuting the case with Trial Attorney Robert Kemins of the Justice Department’s Tax Division.
DEA Prescription Drug Take Back Day Set for SaturdayRead the Press Release
PROVIDENCE – The United States Attorney’s Office joins the Drug Enforcement Administration in encouraging Rhode Islanders to take advantage of the 23rd National Prescription Drug Take Back Day this Saturday by disposing of unneeded or unwanted medications safely and anonymously at any one of dozens of drop-off locations across the state.
For more than a decade, DEA’s National Prescription Drug Take Back Day has provided an easy, no-cost opportunity to dispose of medicines stored in the home that may be susceptible to misuse and theft. Opioid misuse remains at epidemic levels in the United States. The Centers for Disease Control and Prevention estimates that in the United States, approximately 107,622 people died as the result of a drug poisoning last year. This means that someone in the United States is dying of a drug poisoning every five minutes.
Rhode Island Department of Health statistics show that in 2021, 435 lives were lost in Rhode Island to drug overdoses, 51 more than in 2020. Current statistics for 2022 continue to trend upward. According to a report published by the Substance Abuse and Mental Health Services Administration (SAMHSA), a majority of people who misused a prescription medication obtained the medicine from a family member or friend.
“I encourage everyone across the country to dispose of unneeded medications to help keep our communities safe and healthy,” said DEA Administrator Anne Milgram. “The Take Back campaign is part of DEA’s continued efforts to combat the drug poisoning epidemic and protect the safety and health of communities across the United States.”
“DEA’s Take Back campaign is a great opportunity for Rhode Islanders to dispose of unused and unneeded medication in a way that’s safe, effective, easy and anonymous, and that makes sure that unwanted prescription drugs don’t do unintended harm,” said U.S. Attorney Zachary A. Cunha.
On Saturday, the DEA and its partners, including many Rhode Island police departments and pharmacies, will host secure collection boxes to collect tablets, capsules, patches, and other forms of prescription drugs. Visit www.DEATakeBack.com for easy reference to nearby collection sites.
Collection sites will not accept syringes, sharps, and illicit drugs. Liquid products, such as cough syrup, should remain sealed in their original container. The cap must be tightly sealed to prevent leakage. The event will also continue to accept vaping devices and cartridges provided lithium batteries are removed.
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Convicted Felons Sentenced for Illegal Firearms PossessionRead the Press Release
BIRMINGHAM, Ala. – A federal judge this week sentenced three men for being felons in possession of a firearm, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms and Explosives Acting Special Agent in Charge Mickey French.
United States District Court Judge R. David Proctor sentenced the following defendants:
Jonathan Peter Smith, 44, of Lincoln, was sentenced to 59 months in prison for illegally possessing a Ruger .38 caliber revolver, and a Ruger 9mm pistol in November 2021 in Calhoun County after having been previously convicted of a felony. Smith pleaded guilty to the charge in July.
Timothy Richard Muncey, 29, of Gardendale, was sentenced to 55 months in prison for illegally possessing a .223 caliber Arsenal Defense rifle and a Sig Sauer .45 caliber pistol in August 2021 in Jefferson County after having been previously convicted of a felony. Muncey pleaded guilty to the charge in July.
Teddricko Lytez Armstrong, 26, of Anniston, was sentenced to 114 months in prison for illegally possessing a Glock .40 caliber pistol in September 2018 in Calhoun County after having been previously convicted of a felony. Armstrong pleaded guilty to the charge in July.
ATF investigated the case along with the Ohatchee Police Department, Jefferson County Sheriff’s Office, and Anniston, Police Department. Assistant U.S. Attorney Kristy Peoples prosecuted the case.
Convicted Felon Sentenced to 12 Years for Illegally Possessing a FirearmRead the Press Release
Memphis, TN – Jarquez Sigears, 35, has been sentenced to 151 months in federal prison for being a
convicted felon in possession of a firearm. United States Attorney Kevin G. Ritz announced the
sentence today.According to information presented in court, in April 2019, the Bureau of Alcohol, Tobacco,
Firearms and Explosives (ATF) received information that Sigears was illegally buying and selling
guns in Memphis. Sigears has a prior felony conviction for aggravated assault. As such, Sigears
cannot legally possess a gun or ammunition.In May and June of 2019, agents with ATF purchased multiple guns from Sigears including three Smith
& Wesson .40 caliber pistols, a Ceska Zbrojobka (CZ) 9mm pistol, a Kel-Tel .22 caliber pistol, a
Taurus 9mm caliber pistol, and a GMMG 9mm semi- automatic rifle. Some of the guns had been reported
stolen and all the guns were loaded with ammunition.This case was investigated by the ATF.
On October 25, 2022, United States District Judge Mark S. Norris sentenced Sigears to 151 months in
federal prison to be followed by three years supervised release. There is no parole in the federal system.United States Attorney Ritz thanked Assistant United States Attorney Raney Irwin, who prosecuted
this case on behalf of the government.
###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.
Columbus Pain Medicine Practice Agrees to Pay $1 Million to Resolve Violations Under the Controlled Substances Act, False Claims ActRead the Press Release
MACON, Ga. – Kenneth Barngrover, M.D., and his practice, Southeast Regional Pain Center (SRPC), in Columbus, Georgia, has agreed to a $1,000,000 civil penalty to resolve allegations that the pain medicine practice violated both the Controlled Substances Act (CSA) and the False Claims Act (FCA). In addition to a monetary payment, Dr. Barngrover and SRPC entered into a Memorandum of Agreement (MOA) with the Drug Enforcement Administration (DEA) that will be in effect for the next three years.
Barngrover was registered with the DEA as required and operated a worker’s compensation pharmacy out of SRPC offices from which he was authorized to dispense controlled substances. At issue in the settlement were allegations that in the operation of his worker’s compensation pharmacy, Barngrover failed to comply with certain recordkeeping requirements. Those alleged violations included failing to maintain a biennial inventory; failing to maintain a current, complete and accurate record of controlled substances; and collecting medications without DEA authority or documentation of receipt.
In addition to the alleged violations of the CSA, the settlement also resolves allegations that Dr. Barngrover and SRCP violated the False Claims Act by billing Medicare and Tricare for medically unnecessary evaluation and management services, evaluation and management services that were up-coded and psychological testing services that were not appropriately rendered.
“If providers wish to operate like a pharmacy and dispense drugs to their patients, they must act like a pharmacy and maintain accurate records of highly addictive and dangerous drugs,” said U.S. Attorney Peter D. Leary. “Moreover, our federal health care system requires services rendered to patients be medically necessary and appropriate. Providers must abide by federal guidelines put in place for the protection of our citizens.”
“The abuse and misuse of prescription drugs is a major contributor to our nation’s opioid epidemic,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “DEA registered entities are required to maintain current and accurate records of their drug dispensing; DEA investigators will pursue violations of federal mandates put in place to prevent the diversion of these highly addictive drugs away from legitimate medical use.”
“Providers who undermine the integrity of the Department of Defense health care system for their own selfish gain will be held accountable for their actions,” said Special Agent in Charge Cynthia A. Bruce, DoD Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “DCIS and our investigative partners will aggressively pursue those who divert funds intended for military families.”
“Providers who submit false claims to Medicare undermine the integrity of federal health care programs," said Tamala E. Miles, Special Agent in Charge with the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG). "HHS-OIG is proud to work alongside our law enforcement partners to ensure that all health care providers who misuse their medical professional status for financial gain are held accountable."
The CSA subjects all registered handlers of controlled substances to strict requirements regarding the inventory control and recordkeeping of controlled substances. These requirements ensure that DEA registrants account for controlled substances from the time that they are purchased until the time that they are delivered to other registrants, dispensed to patients, or discarded. The CSA’s recordkeeping requirements play a vital role in ensuring the appropriate handling, accounting and distribution of controlled substances.
The FCA is a federal law that imposes civil liability on any persons or entities who submit, or cause to be submitted, false claims for payment on the federal government or its contractors. The liability that can be imposed under the statute is treble damages (that is, three times the loss caused by the false claims) and a civil penalty between $12,537 to $25,076 per false claim. The FCA is the primary authority used by the U.S. Attorney’s Office’s Civil Division to redress fraud, waste and abuse within federal programs, including, but not limited to, Medicare, Medicaid and TRICARE.
The claims resolved by this settlement are allegations only, and there has been no determination or admission of liability.
This case was investigated by Diversion Investigator Chris Crutchfield of DEA-Atlanta District Office, Special Agent Kevin White of the U.S. Department of Health and Human Services-Office of the Inspector General (HHS OIG) and Bryan Cofer of the U.S. Department of Defense-Defense Criminal Investigative Service. (DOD DCIS).
Assistant U.S. Attorneys Todd P. Swanson and W. Taylor McNeill represented the United States in the settlement agreement.
Civilian Employees at Anniston Army Depot Charged with Conspiracy to Steal Government PropertyRead the Press Release
BIRMINGHAM, Ala. – Two civilian employees at the Anniston Army Depot (ANAD) have been charged with conspiracy to steal property of the United States, announced U.S. Attorney Prim F. Escalona, Department of Defense Criminal Investigative Service Special Agent in Charge Cynthia Bruce, Defense Logistics Agency Office of the Inspector General Assistant Deputy Inspector General Ronald Wesley, and United States Army Criminal Investigation Division Acting Special Agent in Charge D. Todd Outlaw.
In charging documents filed today in United States District Court, Stantillio Whitfield, 43, of Anniston and Tevin Fletcher, 32, of Oxford are each charged with one count of conspiracy to steal property of the United States.
According to the charging documents, Whitfield was a Material Examiner and Identifier for the Defense Logistics Agency (DLA) and Fletcher was a Material Expeditor for DLA. The documents allege that between October 2020 and September 2021, Whitfield and Fletcher conspired to steal approximately 50 AN/PVS-30 scopes and other government property valued at approximately $546,750.00 from DLA facilities at ANAD. AN/PVS-30 scopes are designed to be attached to military weapons systems to provide operators with instant nighttime engagement capabilities. The charging documents also allege that Whitfield and Fletcher sold the stolen property at substantially discounted prices and shared the proceeds.
“The allegations against these defendants show they placed personal gain above their duty and the safety of our military personnel,” said United States Attorney Escalona. “We continue to work with our law enforcement partners to track and prosecute those who violate positions of public trust.”
"This is an initial step toward eradicating corruption within the ranks at the Anniston Army Depot,” Special Agent in Charge Cynthia Bruce of the Defense Department’s Inspector General, Defense Criminal Investigative Service said. “This investigation uncovered trusted government employees involved in a multi-year conspiracy to steal government property and convert it for their own personal gain.”
“The tireless efforts of the dedicated men and women of the Army Criminal Investigation Division and our Law Enforcement partners ensures individuals are held accountable for their actions and army assets are properly accounted for and maintained,” said, D. Todd Outlaw, Acting Special Agent-in-Charge, Southern Field Office.
According to the plea agreements, also filed today, Whitfield and Fletcher have each agreed to plead guilty to the conspiracy charge. The Plea Agreements state that Whitfield received approximately $160,524.61 from the sale of government property stolen from ANAD and sent approximately $34,840.00 to Fletcher. Each defendant has agreed to pay restitution of $546,750.00 to the United States and forfeit the money they made from the conspiracy.
The maximum penalty for conspiracy is five years in prison and a $250,000 fine. The Defense Criminal Investigative Service and Defense Logistics Agency Office of Inspector General are investigating the case, and Assistant United States Attorney George Martin is prosecuting it.
An information contains only charges. A defendant is presumed innocent unless and until proven guilty.
Choctaw Nation and United States Attorney for the Eastern District of Oklahoma Co-Host Law Enforcement SummitRead the Press Release
MUSKOGEE, OKLAHOMA - On Monday, October 17, 2022, law enforcement officials gathered at the Choctaw Nation Headquarters in Durant, Oklahoma, for the 2022 Choctaw Nation of Oklahoma Law Enforcement Summit. The event was co-hosted by the Choctaw Nation and the United States Attorney’s Office for the Eastern District of Oklahoma. The goal of the summit was to provide law enforcement and prosecutors serving within the territorial boundaries of the Choctaw Nation an opportunity to discuss the continuing changes in Indian Country jurisdiction and to focus on continued collaboration between local, state, tribal and federal agencies.
“On behalf of the Choctaw Nation of Oklahoma, thank you to United States Attorney’s Office for the Eastern District of Oklahoma,” said Kara Bacon, Tribal Prosecutor, CNO. “This summit and other opportunities like this give our local law enforcement community—drawn from tribal, local, state, and federal agencies—an opportunity to dialogue and develop best practices as federal Indian law and policy evolves.”
“My sincere thanks to Choctaw Nation Chief Gary Batton and the Choctaw Nation Department of Public Safety for providing a wonderful venue for the summit,” said United States Attorney Christopher Wilson. “It was great to have representatives from local police departments, sheriff departments, Choctaw Nation Tribal Police, state law enforcement agencies, federal law enforcement agencies, district attorney offices, Choctaw Nation tribal prosecutors, and federal prosecutors in the same room. Together, we utilized this opportunity to strengthen coordination and communication which is critically important to accomplish our common mission of promoting public safety, holding criminals accountable, and obtaining justice for victims.”
The summit featured panelists and presenters from the Bureau of Alcohol, Tobacco, Firearms & Explosives; Bureau of Indian Affairs; Bryan County Sheriff’s Office; Choctaw Nation of Oklahoma; District Attorney Offices (Districts 16, 18, and 19); Federal Bureau of Investigation; Homeland Security Investigations; Idabel Police Department; McAlester Police Department; Oklahoma State Bureau of Investigation; Poteau Police Department; United States Attorney’s Office and U.S. Drug Enforcement Administration. The format included panel discussions addressing topics such as:
- Indian Country Jurisdiction, Concurrent Jurisdiction, & Federal/Tribal/State Authority;
- Law Enforcement Authority in Indian Country;
- Concurrent Jurisdiction following the U.S. Supreme Court’s Oklahoma v. Castro-Huerta decision on June 29, 2022;
- Law Enforcement Authority in Indian Country;
- Law enforcement and prosecutorial responses to crimes within the Choctaw Nation; and
- Savanna’s Act, Ida’s Law and the expansion of Violence Against Women Act Reauthorization Act of 2022;
and presentations on arson, firearms, and illegal narcotics offenses.
Charleston County Man Pleads Guilty to Tax ChargesRead the Press Release
CHARLESTON, SOUTH CAROLINA — David Washington, 55, of Charleston, pleaded guilty in federal court to aiding and assisting in the preparation of false and fraudulent income tax returns containing false deductions.
The evidence presented at the guilty plea hearing established that Washington operated a fraud scheme wherein he would claim false business losses for taxpayers whose returns he was preparing to offset reported income. Investigators determined that Washington’s customers provided correct tax-related information to Washington with the expectation that he would accurately file the returns for the customers. The amount of the business loss fraudulently claimed by Washington generated a substantial tax refund to which the taxpayers were not entitled and resulted in a significant loss of tax revenue to the United States Government.
“The vast majority of tax preparers, like taxpayers, are truthful and honest in their work product, calculations, and submissions,” said U.S. Attorney Adair F. Boroughs. “Those who seek to violate the tax laws, however, will face this Office and our federal partners at the IRS as we will continue to investigate and vigorously prosecute those who violate the law.”
"The IRS and Department of Justice are working vigorously to stop abusive tax schemes, whose activities unfairly shift the tax burden to honest American taxpayers," said Donald “Trey” Eakins, Special Agent in Charge Charlotte Field Office of the IRS-Criminal Investigation Division. "Today's court action should serve as a reminder to taxpayers, to be wary of any scheme by a tax preparer which falsely adds expenses to their tax returns for the sole purpose of offsetting their income.”
Washington is subject to a maximum sentence of three years in federal prison and a fine of $250,000.00. United States District Judge David C. Norton accepted the guilty plea and will sentence Washington after receiving and reviewing a sentencing report prepared by the U.S. Probation Office.
The case was investigated by the IRS. Assistant U.S. Attorney Amy F. Bower prosecuted the case.
Career Criminal Sentenced to a Total of More Than Three Years in Prison for Fentanyl TraffickingRead the Press Release
BOSTON – A career criminal was sentenced on Oct. 24, 2022 in federal court in Boston for trafficking fentanyl while on supervised release for a previous federal conviction.
Robert Roscoe, 31, of Boston and Attleboro, was sentenced by U.S. District Court Judge Leo T. Sorokin to 16 months in prison and three years of supervised release. At the time he distributed fentanyl, Roscoe was on federal supervised release for a 2019 conviction of being a felon in possession of a firearm and ammunition. This sentence will run consecutive with a two-year sentence imposed on Roscoe on June 16, 2022, by U.S. District Court Judge Nathaniel M. Gorton for violating his supervised release by distributing fentanyl. Roscoe had been previously convicted of armed robbery, unlawful possession of a firearm, and assault and battery on a police officer.
On June 30, 2022, Roscoe pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 40 grams or more of fentanyl and one count of distribution of fentanyl. Roscoe’s co-defendant, Ozair Pereira, is scheduled to be sentenced on Dec. 10, 2022 after previously pleading guilty to conspiracy to distribute 40 grams or more of fentanyl and distribution of fentanyl.
United States Attorney Rachael S. Rollins; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Brockton Police Chief Brenda Perez; and New Bedford Police Chief Paul Oliveira made the announcement today. Assistant U.S. Attorney Christopher Pohl of Rollins’ Narcotics & Money Laundering Unit prosecuted the case.
Brooklyn Man, Who Was Fugitive for 8 Years, Pleads Guilty to His Role in Heroin ConspiracyRead the Press Release
COLUMBIA, SOUTH CAROLINA —Dockim Deeshawn McKnight, 34, of Brooklyn, New York, has pleaded guilty to conspiracy to possess with intent to distribute and to distribute 100 grams or more of heroin.
Evidence obtained in the investigation revealed that McKnight was one of 10 defendants charged in April 2014, following a series of court-authorized wiretaps over several telephones in the Columbia area. Six of the 10 defendants were arrested in April 2014, while four remained fugitives, including McKnight. McKnight remained a fugitive until his May 2022 arrest by the U.S. Marshals Service in Brooklyn. Two other fugitives were arrested in 2017 in Texas. The remaining fugitive arrested in September 2022 in Concord, North Carolina, is currently awaiting trial, and is innocent until and unless proven guilty.
The 2013 investigation revealed that a group of individuals in the Columbia area were obtaining heroin from various sources outside of South Carolina and then distributing it in the Midlands. Evidence indicated that the suppliers were initially getting the heroin in packages from India. Several packages destined for Columbia and containing heroin were intercepted by law enforcement during the investigation. Evidence further showed that the co-defendants later traveled to New York to obtain heroin and transported it back to Columbia where it was distributed. In June 2013, New York authorities seized 155 grams of heroin from McKnight and his girlfriend/co-defendant Jessany Lyons while they were preparing to board a bus back to South Carolina.
Eight of McKnight’s co-defendants earlier plead guilty to their role in the drug conspiracy here in South Carolina and were sentenced as follows: Eric Shawn Bradley of Columbia was sentenced to 210 months imprisonment with 8 years of supervised release; Michael Glover of Columbia was sentenced to 324 months imprisonment with 8 years of supervised release; Jihad Salahadeen Pollard of Columbia was sentenced to 121 months imprisonment with 4 years of supervised release; Kenneth Crawford, Jr., of Washington, D.C. and formerly of Columbia was sentenced to 120 months imprisonment with 8 years of supervised release; Charles Raheem Bradley of Columbia was sentenced to 57 months imprisonment with 6 years of supervised release to follow; Anthony Troy Glover of Columbia was sentenced to 120 months imprisonment with 8 years of supervised release to follow; Larry Grover Bookman of Columbia was sentenced to 70 months imprisonment with 6 years of supervised release; and Jessany Lyons of Far Rockaway, New York, was sentenced to 37 months imprisonment with 3 years of supervised release. The New York heroin suppliers were charged and convicted by the U.S. Attorney’s Office in the Eastern District of New York for their role in the drug conspiracy.
McKnight faces a mandatory minimum of five years with a maximum penalty of 40 years in federal prison. He also faces a fine of up to $5,000,000, and at least 4 years of supervision to follow the term of imprisonment. Senior U.S. District Judge Joseph F. Anderson, Jr., accepted the guilty plea and will sentence McKnight after receiving and reviewing a sentencing report prepared by the U.S. Probation Office.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The case was investigated by the Drug Enforcement Administration’s (DEA) High Intensity Drug Task Force, which was comprised of agents and officers from the DEA, Homeland Security Investigations, Federal Bureau of Investigation, U.S. Secret Service, Columbia Police Department, Richland County Sheriff’s Department, South Carolina State Law Enforcement Division (SLED), Lexington County Sheriff’s Department, Kershaw County Sheriff’s Department, Orangeburg County Sheriff’s Department, and the Fifth Circuit Solicitor’s Office. The U.S. Marshals Service and the Carolinas Regional Fugitive Task Force-Charlotte Office assisted in locating the four fugitives. Assistant U.S. Attorney Stacey D. Haynes of the Columbia United States Attorney’s Office is prosecuting the case.
Brighton High School Teacher Arrested, Charged with Receipt and Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. – U.S. Attorney Trini E. Ross announced today that Louis Carusone, 44, of Webster, NY, was arrested and charged by criminal complaint with receipt and possession of child pornography. The charges carry a mandatory minimum penalty of five years in prison and a maximum of 20 years in prison.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that according to the complaint, on October 10, 2022, Carusone, a high school physics teacher in the Brighton School District, shared a video and images containing child pornography in an online peer-to-peer file-sharing network, which were downloaded by an undercover law enforcement officer. Between October 14 and 15, 2022, the officer downloaded more files containing child pornography that were shared from Carusone’s IP address.
On October 21, 2022, investigators executed a search warrant at Carusone’s Webster residence and seized multiple devices including a tablet, SD cards, a laptop, desktop computers and phones. A preliminary review of one of the cell phones seized recovered 11 videos that Carusone appears to have recorded himself, between August 16 and October 13, 2022. It appears that he surreptitiously recorded and photographed female students in his classroom. Carusone also appears to have surreptitiously recorded both minors and adults in public places, to include what appears to be a water park, where he recorded both adults and children in bathing suits. In addition, a preliminary review of one of the desktop computers recovered approximately 2,030 images and 21 videos of child pornography.
Members of the public who have specific information related to this case are urged to contact the Federal Bureau of Investigation at (585) 279-0085.
Carusone made an initial appearance this morning before U.S. Magistrate Judge Mark W. Pedersen and was released on conditions, to include electronic monitoring.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Michael Stansbury.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Boston Man Charged with Sex Trafficking of a MinorRead the Press Release
BOSTON – A Boston man has been charged with allegedly trafficking a minor he met on social media to engage in commercial sex acts.
Jimall Dawn Brown, 33, was charged by criminal complaint with one count of sex trafficking of a minor. Brown was arrested this morning and will appear in federal court in Boston at 3 p.m. this afternoon before U.S. District Court Magistrate Judge Judith G. Dein.
“Human trafficking – which includes both sex and labor trafficking – is a form of slavery that causes unimaginable harm through exploitation and degradation. It is an assault on an individual’s dignity and is an urgent threat to public safety and public health. Human Trafficking impacts people across races, genders, age, immigration status, and socio-economic statuses and is often perpetrated against the most vulnerable among us – in this case, a child,” said United States Attorney Rachael S. Rollins.
U.S. Attorney Rollins continued, “We allege that Mr. Brown preyed on a vulnerable teenager that he found on social media, coerced her to travel to Boston, where he trafficked her to engage in commercial sex. He exploited this child for thousands of dollars of profit by forcing her to engage in sex acts inflicting violence and harm when she tried to break away and leave. We must begin to face the harsh reality that human trafficking is happening every single day in our Commonwealth and across our country. With my newly established Civil Rights & Human Trafficking Unit, the United States Attorney’s Office remains steadfast in our fight to combat this growing threat, hold traffickers accountable and bring services, treatment and some level of justice to victims and survivors of this awful crime.”
“No person, let alone a minor, should be treated as a commodity to be transported and sold again and again. But that is exactly what Jimall Dawn Brown is accused of doing for his own financial gain. He even went as far as allegedly threatening this victim in this case with violence if she tried to break free from this cycle of abuse,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Sex trafficking is a despicable crime that has a long-lasting and devastating impact on its victims. Every day, FBI Boston’s Child Exploitation – Human Trafficking Task Force is working hard to protect children by bringing to justice those who exploit them. We take a victim-centered approach to each case, and we urge anyone who is or believes they may be a victim to contact us.”
"We are proud of the collaboration the Boston Police Department has with our federal law enforcement partners. This is another example of our department working to keep the community safe," said Michael Cox, Commissioner of the Boston Police Department.
According to the charging document, Brown trafficked a 17-year-old victim to engage in commercial sex acts. It is alleged that Brown first met the victim, who was living outside Massachusetts, on social media. He induced and coerced her to fly to Boston, with promises of a ‘better lifestyle.” Brown posted advertisements of the victim online and arranged “dates” for the victim to have sex in exchange for money. Brown allegedly set the pricing for the commercial sex acts she engaged in, for which he collected all of the profit.
In March 2022, Brown allegedly coerced the victim, who was still a minor at the time, to fly to Georgia, where he arranged for her to engage in commercial sex, for which he collected all of the profit. It is further alleged that in April 2022, Brown took the victim to Nevada, again arranging for her to engage in commercial sex and keeping all of the profit.
According to the charging document, local law enforcement in Massachusetts met with the victim at which time she alleged that Brown told her she would have a better life if she came to Boston to “be with him,” however once she did so, Brown prevented her from leaving. Specifically, it is alleged that when the victim would attempt to leave Brown, he would threaten her or beat her up. For example, as stated in court documents, if she told him she wanted to go home, he would put his hands on her, slap her and yell at her. On multiple occasions, Brown allegedly hit the victim, choked her and physically restrained her.
Members of the public who believe they may be a victim of this alleged crime should contact [email protected]. If you or someone you know may be impacted or experiencing commercial sex trafficking, please visit https://polarisproject.org/ for information and resources.
The charge of sex trafficking of a minor provides for a mandatory minimum sentence of 10 years and up to life in prison, five years of supervised release and a fine of $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.
U.S. Attorney Rollins, FBI SAC Bonavolonta, BPD Commissioner Cox and Suffolk County District Attorney Kevin Hayden made the announcement today. Valuable assistance was provided by the Massachusetts State Police and the Arlington and Randolph Police Departments. Assistant U.S. Attorney Torey B. Cummings of Rollins’ Civil Rights & Human Trafficking Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Blaine Man Pleads Guilty to Possession with Intent to Distribute FentanylRead the Press Release
MINNEAPOLIS– A Blaine man has pleaded guilty to possession with intent to distribute fentanyl, announced United States Attorney Andrew M. Luger.
According to the defendant’s guilty plea, on May 5, 2021, law enforcement executed a search warrant at the Blaine residence of Demarcus Lee Washington, 35. As a result of the search, law enforcement recovered over 1,000 grams of controlled substances, at least 800 grams of which was fentanyl.
Washington pleaded guilty today before Senior Judge Ann D. Montgomery to one count of possession with intent to distribute fentanyl. A sentencing hearing has not yet been scheduled.
This case was investigated by the Department of Homeland Security, the Ramsey County Violent Crime Enforcement Team (VCET) and the Roseville and Mounds View Police Departments.
Assistant U.S. Attorneys Andrew Dunne, Ruth Shnider and Samantha Bates are prosecuting the case.
Billings man sentenced to life in prison for kidnapping minors, transporting a person for illegal sexual activity, drug trafficking and firearms crimesRead the Press Release
BILLINGS — A Billings man convicted of multiple crimes stemming from an investigation into kidnapping minors, transportation of persons for illegal sexual activity, drug trafficking and firearms offenses was sentenced today to life in prison, U.S. Attorney Jesse Laslovich said.
U.S. District Judge Susan P. Watters found Angelo Corey Stackhouse, 52, guilty on June 16, following a bench trial, of all seven counts charged in superseding indictment, including transportation of a person with intent to engage in illegal sexual activity, distribution of cocaine to a person under the age of 21, distribution of cocaine and methamphetamine, possession with intent to distribute cocaine, possession of a firearm in furtherance of a drug trafficking offense and two counts of kidnapping.
District Judge Watters presided at sentencing. There is no parole in the federal system.
“This significant sentence will protect the public and community, especially vulnerable girls and women, from Stackhouse for a long time. Stackhouse is a violent predator who used threats and drugs to assault and exploit women and children for his own sexual interest while also distributing cocaine and methamphetamine in the community. I hope that with this sentence, the victims can begin to heal from the trauma and abuse Stackhouse inflicted,” U.S. Attorney Laslovich said.
In court documents and in evidence presented at trial, the government alleged that in early 2020, Stackhouse trafficked illegal narcotics, primarily cocaine. Stackhouse went to Denver, Colorado to obtain cocaine for redistribution in the Billings community through the summer of 2020. During this time, Stackhouse transported a 20-year-old female to Colorado and sexually assaulted her on multiple occasions while providing her cocaine. While brandishing a firearm, he also threatened and feigned a sexual assault against a homeless adult female to whom he provided drugs and told the drugs were not free. On separate occasions, one in September 2020 and another in April 2021, Stackhouse kidnapped two minor girls for the purposes of sexually assaulting them in hotel rooms in Billings. One of the minor victims was from the Crow Indian Reservation and the second minor victim was from Billings. Multiple other adult females testified at trial that Stackhouse sexually assaulted them.
Assistant U.S. Attorneys Zeno B. Baucus and Bryan T. Dake prosecuted the case, which was investigated by the Montana Department of Justice’s Division of Criminal Investigation, with assistance from the FBI, Bureau of Indian Affairs, Billings Police Department and Yellowstone County Sheriff’s Office.
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Belgrade man sentenced to six years in prison for meth, heroin trafficking, firearms crimesRead the Press Release
MISSOULA — A Belgrade man who admitted drug trafficking and firearm crimes after law enforcement found him slumped over the steering wheel of an idling vehicle, with drugs and a short-barreled shotgun inside, was sentenced today to six years in prison, to be followed by four years of supervised release, U.S. Attorney Jesse Laslovich said.
Jeramiah Kayson Gohde, 24, pleaded guilty in June to conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances, felon in possession of a firearm and possession of a firearm with an obliterated serial number.
U.S. District Judge Dana L. Christensen presided. The court allowed Gohde to self-report to the custody of the Bureau of Prisons.
The government alleged in court documents that in December 2021, Gohde, after absconding from probation, was found by the Bozeman Police Department officers slumped over the steering wheel of an idling vehicle on the street. Officers observed a partially open backpack on the front passenger seat, and Gohde’s probation officer requested a search of the vehicle. As officers removed the bag, Gohde stated, “there are multiple felonies in there.” The bag was found to contain heroin and meth. Also in the vehicle was a short-barreled modified shotgun with an obliterated serial number. Gohde was prohibited from possessing firearms because of previous felony convictions. The investigation determined that Gohde purchased pound quantities of meth from suppliers in Seattle, Washington, and Denver, Colorado, and was selling drugs to as many as 18 individuals.
Assistant U.S. Attorney Karla E. Painter prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Missouri River Drug Task Force, Bozeman Police Department and Montana Probation and Parole.
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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Ashland man admits sexually abusing minor girl on Northern Cheyenne Indian ReservationRead the Press Release
BILLINGS — An Ashland man admitted today to sexually abusing a minor girl on the Northern Cheyenne Indian Reservation, U.S. Attorney Jesse Laslovich said.
Jordan Cody Washee, 30, pleaded guilty to abusive sexual contact. Washee faces a maximum of 10 years in prison, a $250,000 fine and not less than five years of supervised release.
U.S. District Judge Susan P. Watters presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for March 15, 2023. Judge Watters continued Washee’s release pending further proceedings.
The government alleged in court documents that the victim, identified as Jane Doe, reported that starting in 2011 and continuing through 2012, Washee sexually assaulted her on multiple occasions at her house on the Northern Cheyenne Reservation. Doe was between the ages of 11 and 13 at the time. Doe estimated the sexual abuse happened 15 to 20 times. The government further alleged that when interviewed by law enforcement in March 2022, Washee initially denied the allegations, then said it happened only once. He later admitted that Doe was telling the truth about the multiple incidents of abuse. At the hearing, Washee disputed the number of times the abuse occurred.
The U.S. Attorney’s Office is prosecuting the case, which was investigated by the FBI and the Big Horn County Sheriff’s Office.
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Arizona Woman Pleads Guilty to Smuggling Multi-Kilos of Meth, Fentanyl Aboard Bus Passing Through KCRead the Press Release
KANSAS CITY, Mo. – A Phoenix, Arizona, woman pleaded guilty in federal court today to smuggling approximately 23 kilograms of methamphetamine and more than a kilogram of fentanyl aboard a bus passing through Kansas City, Mo., enroute to St. Louis, Mo.
Alexus C. Sparks, 26, pleaded guilty before U.S. District Judge Brian C. Wimes to participating in a conspiracy to distribute fentanyl and methamphetamine and to one count of possessing fentanyl and methamphetamine to distribute.
According to today’s plea agreement, law enforcement officers with the Missouri Western Interdiction Task Force (MoWIN) were conducting narcotic interdiction activities at a Kansas City, Mo., bus terminal on June 6, 2022. A bus originating from Los Angeles, California,, arrived at the terminal for a brief layover. After the passengers disembarked, a detective brought his police drug-sniffing dog onto the bus. The dog alerted to a pink floral duffel bag and a white hard-side suitcase, which were sitting near each other, and which were left on the bus after the passengers had disembarked. The duffel bag and suitcase were taken off the bus and placed on a bench directly in front of the bus in order to identify the owners when reboarding commenced.
As Sparks began to reboard the bus, she picked up the duffel bag. When an officer asked her if she owned the bag, she stated, “yes.” When he identified himself as a law enforcement officer, however, she recanted. Sparks was detained for investigation, and later admitted to officers that the duffel bag belonged to her and that she was transporting illegal drugs to St. Louis.
Officers searched the duffel bag and found two bundles that contained a total of 20.4 pounds (approximately 9.2 kilograms) of methamphetamine and a rectangular brick that contained 2.3 pounds (more than one kilogram) of fentanyl.
None of the passengers claimed the suitcase, which was determined to be abandoned. When officers opened the suitcase, they found 12 bundles that contained a total of 30.4 pounds (approximately 13.8 kilograms) of methamphetamine. Officers contacted another passenger on the bus, who was seated in the seat where the suitcase had been found. The bus tickets for both Sparks and this passenger were purchased at the same time at a bus terminal in Las Vegas, Nevada. This passenger was also detained and charged as a co-defendant.
Under federal statutes, Sparks is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Gregg R. Coonrod and Maureen Brackett. It was investigated by the Missouri Western Interdiction Task Force (MoWIN).