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Tuesday 25 October 2022
St. Louis Rapper Pleads Guilty to Gun ChargeRead the Press Release
ST. LOUIS – A St. Louis rapper pleaded guilty Tuesday in the middle of his jury trial to a felony charge of being a felon in possession of a firearm.
Arthur Pressley, a.k.a. 30 Deep Grimeyy or Grimeyy, was a convicted felon when he and others were stopped by St. Louis Metropolitan Police Department officers on Jan. 5, 2021 in a 2008 Pontiac G8. The Pontiac had a taillight out and had license plates registered to a Jeep.
Police found a Beretta 92FS 9mm pistol between Pressley and a fellow occupant of the car. Pressley admitted as part of his plea agreement possessing the gun a number of times between Oct. 4, 2020, the day after it was purchased, and the date of the traffic stop.
Investigators also found pictures of Pressley and the gun on the social media accounts of Pressley and others and in Pressley’s phone, including one in which the partial serial number of the gun could be seen. Pressley also discusses the gun in messages.
Pressley, as a convicted felon, is barred from possessing firearms. He was twice convicted of a charge of unlawful use of a weapon.
Prosecutors will argue at Pressley’s sentencing that after the traffic stop, he began sending text messages to the original purchaser of the gun. Pressley asked that man to falsify a bill of sale to one of the other occupants of the Pontiac.
Pressley, 25, of St. Louis, is scheduled to be sentenced February 1. The gun charge carries a potential penalty of up to 10 years in prison.
The Bureau of Alcohol, Tobacco, Firearms and Explosives had been investigating Pressley and his gang, 30 Deep, for over a year at the time of the traffic stop.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Louis Metropolitan Police Department. Assistant U.S. Attorneys Cassandra Wiemken and Jennifer Szczucinski are prosecuting the case.
Springfield Man Sentenced for Bank Robbery a Month After Release from Prison for Bank RobberyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man was sentenced in federal court today for robbing a bank within a month of being released from federal prison for another bank robbery.
Charles Edgar King Jr., 58, was sentenced by U.S. District Judge Brian C. Wimes to five years and 11 months in federal prison without parole.
On May 31, 2022, King pleaded guilty to one count of bank robbery. King admitted that he used a note to steal $8,815 from Guaranty Bank, 2109 N. Glenstone Ave., in Springfield, on July 10, 2021. King entered the bank at about 10:30 a.m. and went straight to a teller counter, where he handed the teller a handwritten note that read, “I have a gun this is a robbery.” The teller handed over cash and King left the bank and walked away through a parking lot.
Surveillance cameras in the bank captured good quality video, which show King, who was not wearing a mask, and images of his bare hands that show a tattoo of a cross on the back of his right middle finger. On the same day as the robbery, July 10, 2021, the FBI released one of the surveillance images to the media and requested assistance from the public in identifying the bank robber. King’s former probation officer saw the media coverage and contacted the FBI the same day and identified King.
King had been released from federal prison 30 days prior to robbing Guaranty Bank. King was convicted of robbing Citizen’s Bank in Rogersville, Mo., in 2012 and sentenced to seven years in federal prison without parole. He served an additional 14 months for repeatedly violating the terms of his supervised release following incarceration, according to court documents, for a total prison term of nine years and two months. King, who was released with no further supervision, had been out of custody for 30 days when he committed the Guaranty Bank robbery.
On July 19, 2021, an anonymous source contacted law enforcement with a tip that King was staying at the Springfield Inn near Kearney and North Glenstone in Springfield. Springfield police detectives and FBI agents conducted surveillance on the hotel and saw King leave the hotel driving a purple Scion Cube with no license plate. Springfield police officers conducted a car stop and detained King on an investigative arrest for robbery.
King told an FBI agent that he used the stolen money to buy the used Scion Cube for $2,400, and that he gave some of the money away and spent the rest.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Springfield, Mo., Police Department and the FBI.
Spokane Man Sentenced to 180 Months in Federal Prison for Prolific Drug TraffickingRead the Press Release
Spokane – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Corey A. Darilek, age 41, of Spokane, Washington, was sentenced today in federal court in Spokane, Washington. Judge Thomas O. Rice sentenced Darilek to 180 months in federal prison, followed by a 5-year term of supervised release. In July 2022, Darilek pled guilty to Possession with Intent to Distribute 50 Grams or More of Actual (Pure) Methamphetamine, in violation of 21 U.S.C. § 841(a)(1), (b)(1)(A)(viii).
According to court documents, the Spokane Police Department was investigating Darilek’s drug-trafficking activities in the Spokane area, after he was identified as a significant drug distributor. The investigation led to a search warrant of Darilek’s Spokane-area home as well as several of his vehicles. The Spokane Police Department located over one pound of methamphetamine as well as heroin, multiple firearms, and approximately $10,000 in cash. Darilek told law enforcement he had been a drug trafficker for an extended period and was involved in large-quantity deals, including a recent 20-pound methamphetamine transaction with individuals in Montana. Darilek estimated he received multiple pounds of methamphetamine and several ounces of heroin per week from his supplier, which Darilek then distributed to customers in the Spokane area.
After Darilek’s arrest, he was released by the court to attend in-patient drug treatment based on his asserted methamphetamine addiction. Shortly after his release, Darilek terminated himself from the drug treatment program and a warrant issued for his arrest. After his re-arrest, he was again released by the court to drug treatment. Shortly after his second release, Darilek again terminated himself from his drug treatment program and another warrant issued. Darilek was a fugitive for almost one year before he was re-captured. Because of Darilek’s failure to comply with his release conditions and fugitive status, Judge Rice enhanced Darilek’s sentence.
United States Attorney Waldref commended the joint efforts of law enforcement for working to keep the Eastern District safe: “Mr. Darilek imported and distributed large-quantities of methamphetamine into the Spokane area. Then, after the Court afforded him numerous opportunities to enter drug treatment, he absconded twice and became a fugitive.” U.S. Attorney Waldref continued, “This “The sentence imposed on Mr. Darilek should put those on notice who seek to bring harm to our sentence removes Mr. Darilek from the community for fifteen years and reiterates my office’s commitment to ensuring that those who distribute dangerous narcotics in Eastern Washington are held accountable.”
communities by distributing illegal narcotics,” said Jacob D. Galvan, Acting Special Agent in Charge of the DEA Seattle Field Division. “The DEA, along with its partners, will pursue them and hold them accountable no matter how long it takes.”
“The nexus between drugs and criminal activity, including violence, is well established and has impacted our community in very unhealthy and destructive ways. SPD is committed to collaborating with our regional partners in our relentless pursuit to hold accountable those who deal drugs in our community and prey on people trapped in addiction,” stated Spokane Police Chief Craig Meidl.
This case was investigated by the Spokane Police Department as well as the Drug Enforcement Administration.
Assistant United States Attorney Caitlin Baunsgard of the Eastern District of Washington handled this matter on behalf of the United States.
Six Philadelphia-Area Individuals Charged with over One Million Dollars in COVID Fraud SchemeRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Wylene Johnson, 41, of Chester, PA; Cookie Bundy, 41, of Philadelphia, PA; Hakeem Cooper, 42, of Philadelphia, PA; Louis Barnett, 43, of Philadelphia, PA; Barry Mitchell, 33, of Philadelphia, PA; and Tameka Edmonds, 32, of Marcus Hook, PA; were charged with various Pandemic Unemployment Assistance (PUA) fraud-related offenses in two separate Indictments.
In the first Indictment, defendants Johnson, Bundy, Cooper, Barnett, and Mitchell are each charged with four counts of mail fraud and one count of theft of government money in connection with a scheme to submit fraudulent PUA applications. As part of the scheme, those charged allegedly submitted (or caused to be submitted) nearly 100 fraudulent applications resulting in a loss to the government of nearly $1 million dollars. All of the applications submitted as part of this scheme listed Johnson’s former address in Philadelphia as the mailing address for benefits. After the benefits were mailed to this address, those charged allegedly accessed either the checks or debit cards issued on the applications.
In addition to the PUA scheme, defendants Johnson, Barnett, and Mitchell are also each charged with three counts of theft of government money for allegedly submitting fraudulent Economic Injury Disaster Loan (EIDL) applications to the Small Business Administration for businesses which did not exist. As a result of these fraudulent application, Johnson allegedly received approximately $52,000 dollars from the SBA which she allegedly spent on personal items. Barnett and Mitchell also allegedly received emergency advances from the SBA which they spent on personal items.
In October 2022, when law enforcement agents from the United States Department of Labor – Office of Inspector General, the Federal Bureau of Investigation, and the Department of Homeland Security Investigations arrested Bundy and Mitchell for the charges in this Indictment, firearms and ammunition were recovered from both of their residences. Immediately thereafter, Bundy and Mitchell were charged by Criminal Complaint with illegally possessing a firearm and ammunition as previously convicted felons.
In the second fraud Indictment announced today, defendant Edmonds is charged with three counts of mail fraud and three counts of theft of government money for allegedly submitting fraudulent PUA, EIDL, and Paycheck Protect Program (‘PPP’) applications. Edmonds is also charged with spending the EIDL and PPP funds on personal items.
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. The CARES Act created the Pandemic Unemployment Assistance (PUA) program, which provides unemployment benefits to individuals not eligible for regular unemployment compensation or extended unemployment benefits, including individuals, families, and businesses affected by the COVID-19 pandemic. Eligibility to receive weekly PUA benefits is predicated on an applicant’s unemployment for reasons related to the pandemic, and it requires that the applicant was able to work each day and, if offered a job, would have been able to accept it. Once an applicant is approved to receive benefits, the applicant is required to submit weekly certifications indicating that he or she: was ready, willing and able to work each day; was seeking full time employment; did not refuse any job offers or referrals; and had reported any employment during the week and the gross pay or other payments received.
“Pandemic Unemployment Assistance and small business loan funds are intended to help working Americans and small business owners continue to pay their bills and make ends meet, even when revenues have dropped dramatically due to the pandemic,” said U.S. Attorney Romero. “Thieves who attempt to take these funds under false pretenses are taking advantage of others’ misfortune – ripping them off while also ripping off all taxpayers who fund the programs. These defendants allegedly obtained over $1 million in funds that could have helped struggling businesses and individuals.”
“White collar crime being conducted by convicted felons is part of the new criminal reality facing law enforcement agencies. These criminals are intelligent and bold enough to deliberately defraud the United States government on a large scale,” said William S. Walker, Special Agent in Charge of HSI’s Philadelphia office. “Combatting these criminals takes an immense amount of time, effort, and cooperation between the prosecutors and the investigating agencies. We are extremely proud of the working relationships that have developed between all agencies involved.”
“The amount of pandemic program fraud uncovered in the last two-plus years is utterly offensive,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “This was emergency financial assistance meant to keep families, businesses, and the economy afloat, not a golden ticket for crooks and opportunists to live the high life. As these mounting indictments show, the FBI continues to investigate those who so eagerly defrauded the government and we’re committed to holding each and every one accountable for their crimes.”
“An important part of the mission of the Office of Inspector General is to investigate allegations of fraud related to unemployment insurance programs. We will continue to work with the Pennsylvania Department of Labor and Industry and our law enforcement partners to investigate these types of allegations”, stated Syreeta Scott, Special Agent-in-Charge of the Philadelphia Region, U.S. Department of Labor Office of Inspector General.
This case was investigated by the United States Department of Labor – Office of Inspector General, the Federal Bureau of Investigation, and the Department of Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorneys Everett Witherell and Timothy Lanni.
Queens, NY Man Found Guilty in Kidnapping, Torture Plot Which Resulted in Death of Two Brothers in Schuylkill River in 2014Read the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Jason Rivera, 37, of Queens, NY, was convicted today at trial of kidnapping and extortion charges arising from his involvement with a violent gang, known as “Born To Kill” (a/k/a “BTK”), who paid the defendant money to collect a substantial drug debt from three drug dealers. Two of the three victim dealers, who were brothers, were murdered; the third managed to escape drowning in the Schuylkill River and whose rescue made the case national news.
In the summer of 2014, Rivera and two associates were recruited by members of the BTK gang to forcibly collect money from three marijuana dealers who had failed to pay a substantial drug debt. The co-conspirators, including Rivera, were paid several thousand dollars each using the money they took from the victims. Tam Le, a member of BTK, lured the victims to his home in southwest Philadelphia, where Rivera and the other two co-conspirators assaulted the victims and restrained them with duct tape and zip ties. They then kidnapped and transported the three victims to the Schuylkill River in the back of a van, weighed down their bodies, stabbed them, and dumped all three into the river. Two victims died in the river while the third managed to crawl out of the river and flag down a passing motorist on Kelly Drive for assistance.
In addition to this case, five defendants were federally indicted in connection with this crime and have all pleaded guilty to similar charges. Tam Le was found guilty of murder by a Philadelphia County jury and sentenced to death.
“After the initial investigation and arrests were made in this case which resulted in state charges for two individuals involved with these murders and attempted murder, the trail on the other individuals who helped them went nearly cold,” said U.S. Attorney Romero. “But thanks to the persistent efforts and dogged determination of the FBI and other law enforcement partners, our Office was able to charge these remaining individuals, get them off the streets, and bring them to justice for their crimes.”
“What Rivera and his co-conspirators did to their victims was particularly heinous – so much so that, nearly a decade later, the circumstances of these murders and attempted murder still stand out,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Agents and analysts on FBI Philadelphia’s Organized Crime Task Force put years of hard work into the investigation that led to today’s verdict and seen many of the other perpetrators held accountable. We will continue to work to bring to justice Trung Lu, who has been charged in connection with these crimes but remains at large, likely in Vietnam. The FBI is offering a reward of up to $10,000 for information leading directly to Lu’s arrest.”
The case was investigated by Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Robert Livermore.
Political Consultant Pleads Guilty to Defrauding Candidate in 2017 New Haven Probate Judge RaceRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that VICTOR CUEVAS, 58, of Waterbury, waived his right to be indicted and pleaded guilty today in Hartford federal court to conspiring to defraud a New Haven Probate Judge candidate in 2017.
According to court documents and statements made in court, Cuevas co-operated a Connecticut-based political consulting business called Yellow Dog Strategies (“YDS”). In 2017, YDS was paid $5,750 to collect 1,000 petition signatures from registered Democrats in New Haven in support of a probate judge primary candidate. Cuevas supervised YDS’s collection of voters’ signatures using a team of “Circulators,” each of whom was required by state regulations to sign a Statement of Authenticity before a notary public attesting that they had collected the voters’ petition signatures in person. Rather than collect legitimate voter signatures, Cuevas conspired with others to defraud the candidate by submitting falsified petition forms. Specifically, Cuevas caused signatures of registered voters to be forged on petitions and caused the signature of a purported Circulator to be forged on a Statement of Authenticity.
Cuevas caused the falsified forms to be delivered to the candidate, who, unaware of the forgeries, submitted those petitions to be counted. The New Haven Democratic Registrar of Voters quickly detected forged signatures in the petitions. Upon learning that voter signatures had been forged, the candidate withdrew from the primary.
The Connecticut State Elections Enforcement Commission immediately initiated an investigation into Cuevas’s conduct. When Cuevas learned of that investigation, he and his co-conspirators attempted to conceal their scheme by pressuring the fictitious Circulator, whose signature had been forged, to sign a false affidavit.
Cuevas, a former Connecticut State Representative, was on federal probation at the time of the offense. In October 2016, he was sentenced in New Haven federal court to one year of probation and a $1,000 fine for conspiring with others to commit bank fraud in connection with his home mortgage loan applications.
Cuevas pleaded guilty to one count of conspiracy to commit wire fraud, an offense that carries a maximum term of imprisonment of five years. He is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on January 17, 2023.
Cuevas is released on a $100,000 bond pending sentencing.
This investigation is being conducted by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Conor Reardon and Jonathan Francis.
U.S. Attorney Avery thanked the Connecticut State Elections Enforcement Commission for its assistance in this matter.
Pittsburgh Man Charged with Robbery and Firearms ViolationsRead the Press Release
PITTSBURGH - A resident of Pittsburgh, PA, has been indicted by a federal grand jury in Pittsburgh on charges of robbery and firearm violations, United States Attorney Cindy K. Chung announced today.
The four-count Superseding Indictment named Deon Reese, age 47, as the sole defendant.
According to the Superseding Indictment, on March 23, 2017, Reese robbed an individual and conspired to rob him, and used a firearm to do so.
The law provides for a maximum total sentence of life years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Reese is detained pending trial.
Assistant United States Attorney Doug Maloney is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pittsburgh Bureau of Police, and the Pennsylvania State Police conducted the investigation leading to the Superseding Indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Felon Sentenced to 3 Years in Prison for Illegally Possessing a Loaded RevolverRead the Press Release
PITTSBURGH - A resident of Pittsburgh, PA, has been sentenced in federal court to 37 months’ imprisonment on his conviction for being a felon in possession of a firearm, United States Attorney Cindy K. Chung announced today.
United States District Judge J. Nicholas Ranjan imposed the sentence on Reco Hall, age 37, of Hays Avenue, Pittsburgh, PA.
According to information presented to the court, on or about November 6, 2020, Hall was in possession of a Taurus .38 Special revolver, loaded with five rounds of ammunition. Because of a prior felony convictions, federal law prohibited Hall from possessing the weapon.
Prior to imposing sentence, Judge Ranjan stated that the sentence was sufficient but not greater than necessary to achieve the goals of sentencing.
Assistant United States Attorneys Tonya Sulia Goodman and Brian W. Castello prosecuted this case on behalf of the government.United States Attorney Chung commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Hall.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Philadelphia Man Sentenced to over 18 Years in Prison for Possessing a Firearm in Furtherance of a Drug Trafficking CrimeRead the Press Release
Jackson, Miss. – A Philadelphia, Mississippi man was sentenced to 222 months in prison for possessing a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
James Nelson Peeples, Jr., 37, was sentenced in U.S. District Court in Jackson.
According to court records, on July 15, 2018, a Philadelphia woman called the Philadelphia Police Department and reported that a man she knew as “P James” was at her house threatening her with a gun. An officer responded immediately and spoke with the woman. The officer then left the woman’s residence and quickly located Peeples nearby driving a black Honda Accord. The officer stopped Peeples and, as he approached the vehicle, saw Peeples attempting to hide a handgun. Peeples also appeared to be trying to put a bag of marijuana in his pants.
Peeples was arrested and a search was conducted. Methamphetamine, marijuana and three handguns were found. Peeples has multiple felony convictions out of Neshoba County Circuit Court for drug sales and for being a convicted felon in possession of a firearm.
A federal grand jury indicted Peeples on January 15, 2020. He subsequently pled guilty to possession of a firearm in furtherance of a drug trafficking crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Philadelphia Police Department.
Assistant U.S. Attorney Charles W. Kirkham prosecuted the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Paving Business Owner Pleads Guilty to Filing False Tax ReturnRead the Press Release
An Arkansas man pleaded guilty today to filing a false tax return with the IRS on which he did not report all of the income he earned from his business.
According to court documents and statements made in court, Clarence A. Joles, Sr., of Texarkana, owned Rock Hard Paving, an asphalt paving business, which he operated as a sole proprietorship. Joles admitted that he deposited Rock Hard Paving’s gross receipts into approximately nine different bank accounts, then intentionally withheld from his tax preparer records from some of those accounts. As a result, the tax preparer did not have access to Rock Hard Paving’s true income, and Joles caused a false 2015 personal tax return to be filed with the IRS. In total, Joles did not report more than $1 million in Rock Hard Paving receipts.
Joles is scheduled to be sentenced at a later date and faces a maximum penalty of three years in prison for filing a false tax return. He also faces a period of supervised release, monetary penalties, and restitution. 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 David Clay Fowlkes for the Western District of Arkansas made the announcement.
IRS-Criminal Investigation is investigating the case.
Assistant Chief Greg Tortella and Trial Attorney Isaiah Boyd, III of the Tax Division are prosecuting the case.
Owner of Toledo Area Medical Transportation Service Found Guilty of Healthcare FraudRead the Press Release
TOLEDO - A federal jury on Monday, Oct. 24, 2022, convicted the founder and owner of Blue Line Express Taxi & Medical Transport, a Toledo-area ambulette transportation business, of three counts of healthcare fraud following a three-day trial before Judge Jeffrey J. Helmick in Toledo.
According to court documents and evidence presented at trial, Abdul Haji Faqi, 46, of Toledo, was found guilty of participating in a scheme that knowingly submitted and received reimbursement payments from Medicaid for ineligible claims. Faqi’s co-defendants pleaded guilty and were sentenced earlier this year for their part in the scheme.
Between 2009 and 2016, Faqi schemed with his co-defendants to transport and bill Medicaid for ambulette transportation services of Medicaid beneficiaries who did not require or use a wheelchair. Faqi and his co-defendants knew that Medicaid only provided ambulette reimbursement for recipients who did require the use of a wheelchair and were actually transported in a wheelchair.
In addition, as part of the scheme to defraud, evidence presented during the trial showed that Faqi and his co-defendants billed Medicaid for wheelchair attendants without actually providing any attendants. Furthermore, evidence showed that Faqi and his co-defendants billed Medicaid for trips with multiple riders as separate individual trips, thereby inflating their Medicaid billing.
Faqi and his co-defendants also failed to obtain, and falsified, ambulette Certification of Medical Necessity (CMN) documents from Medicaid recipients that they transported. Faqi and the others knew and understood that Medicaid required a CMN for each recipient transported.
In total, court documents state that Faqi and his co-defendants received over $800,000 in reimbursements from Medicaid to which they were not entitled.
Faqi is scheduled to be sentenced on Feb. 13, 2023.
This case was investigated by the Health and Human Services Office of Inspector General (HHS OIG), the Ohio Attorney General’s Healthcare Fraud Section and the Toledo Resident Agency of the Cleveland FBI. This case is being prosecuted by Assistant United States Attorneys Jody L. King and Michael J. Freeman.
Ottumwa Man and Woman Charged for Filing Hundreds of False Tax Returns and Fraudulently Obtaining Unemployment Insurance Benefits PaymentsRead the Press Release
Des Moines, Iowa – A federal grand jury in Des Moines returned an indictment on October 18, 2022, charging an Ottumwa man and woman with sixty fraud and tax charges.
As alleged in the indictment, Thein Maung (also known as Joseph Ramarn), age 47, and his daughter, Phyo Mi (also known as Phyo Ramarn), age 20, conspired to defraud the Internal Revenue Service (IRS) by preparing and filing hundreds of fraudulent tax returns. Maung and Mi provided tax-preparation services out of their family’s home in Ottumwa. Their customers primarily were immigrants who had little or no ability to read, write, or speak English.
The indictment also alleges that Maung and Mi would prepare their customers’ tax returns in exchange for a cash fee. Maung and Mi acted as “ghost preparers,” meaning that they did not sign their clients’ tax returns when they prepared and filed them. Without their customers’ knowledge or approval, Maung and Mi often included on their customers’ federal tax returns, schedules, and forms, fraudulent items, such as false claims for residential energy credits, business-expense deductions, or moving-expense deductions. The effect of Maung and Mi including fraudulent items on the tax documents was to increase the refunds their clients received and increase Maung and Mi’s customer base.
In addition, it is alleged that Maung and Mi engaged in wire fraud by directing that portions of their customers’ fraudulent refunds be deposited into financial institution accounts accessible to Maung and Mi. By doing so, Maung and Mi attempted to obtain from the IRS over $140,000 in fraudulent refunds.
Maung and Mi also allegedly committed wire fraud in relation to unemployment insurance benefits. According to court documents, Maung and Mi filed unemployment insurance benefits applications and claims with Iowa Workforce Development for some of their customers. On the materials submitted to Iowa Workforce Development, Maung and Mi directed that their customers’ unemployment payments be sent to financial institution accounts that Maung and Mi had access to. Through this fraud, Maung and Mi received over $70,000 in fraudulent unemployment insurance benefits payments from Iowa Workforce Development that should have been paid to eligible claimants.
“These types of schemes often prey on vulnerable and unsuspecting clients that were merely attempting to do the right thing, including filing and paying their taxes,” said Thomas Murdock, Acting Special Agent in Charge of IRS Criminal Investigation’s St. Louis field office. “IRS Criminal Investigation works investigations like these to keep fraudulent tax return preparers at bay and to let others know that these efforts to rob the government are illegal and will not go unchecked.
Both Maung and Mi are charged with one count of Conspiracy to Defraud the United States and fourteen counts of Wire Fraud. Mi is also charged with ten counts of Preparing and Presenting a False Tax Return. Maung is charged with thirty counts of Preparing and Presenting a False Tax Return and five counts of Willful Failure to File Return.
The defendants made their initial court appearance on Monday, October 24, 2022, before U.S. District Judge Stephen H. Locher of the U.S. District Court for the Southern District of Iowa. If convicted, the defendants face a maximum penalty of twenty years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement.
Internal Revenue Service Criminal Investigation is investigating the case with assistance from the Ottumwa Police Department. Assistant U.S. Attorney Kyle Essley is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Ohio Man Sentenced to 10 Years for Role in Cocaine Trafficking RingRead the Press Release
PITTSBURGH, PA -- A former Ohio resident has been sentenced in federal court to 10-years of imprisonment and five years of supervised release related to his membership in a conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine, United States Attorney Cindy K. Chung announced today.
United States Senior District Judge Cathy Bissoon imposed the sentence on Romeon Alford, age 47, formerly of East Liverpool, OH 43290.
According to information presented to the court, under the High Intensity Drug Trafficking Area (HIDTA) program, federal, state, and local law enforcement investigated a drug trafficking organization in Beaver County, Pennsylvania. Multiple confidential sources established the identity of the main target of the investigation. Using controlled buy operations and surveillance, law enforcement also identified the members of the organization. The investigation revealed that the main target would supply his conspirators with multiple ounces of cocaine on a weekly basis, which would then be sold to end users. As evidenced by a multi-kilogram seizure from the main target, this drug trafficking organization dealt in kilogram quantities of cocaine, a Schedule II controlled substance.
During the investigation, law enforcement determined that the main target supplied Romean Alford and that Alford would then distribute cocaine to end users. Between November 2019 and January 2020, law enforcement conducted four controlled buy operations from Alford in the vicinity of his East Liverpool, Ohio, residence. Following these controlled buy operations, law enforcement executed a federal search warrant upon Alford’s residence. The search resulted in the seizure of multiple ounces of cocaine. An examination of Alford’s phone revealed that he frequently communicated with the main target of the investigation, confirming that the main target was Alford’s source of supply. The investigation further revealed that Alford would travel from Ohio to Beaver County in order to obtain multiple ounces of cocaine from his source of supply. Furthermore, the investigation revealed that the main target had supplied Alford with multiple ounces of cocaine on a weekly basis since January 2019.
Assistant United States Attorney Brendan J. McKenna prosecuted this case on behalf of the government.
United States Attorney Chung commended the Drug Enforcement Administration and the Pennsylvania Office of Attorney General for the investigation leading to the successful prosecution of Alford.
Newly Unsealed Indictment Charges Ukrainian National with International Cybercrime OperationRead the Press Release
AUSTIN – A newly unsealed federal grand jury indictment charges Mark Sokolovsky, 26, a Ukrainian national, for his alleged role in an international cybercrime operation known as Raccoon Infostealer, which infected millions of computers around the world with malware.
According to court documents, Sokolovsky, who is currently being held in the Netherlands pursuant to an extradition request by the United States, conspired to operate the Raccoon Infostealer as a malware-as-a-service or “MaaS.” Individuals who deployed Raccoon Infostealer to steal data from victims leased access to the malware for approximately $200 per month, paid for by cryptocurrency. These individuals used various ruses, such as email phishing, to install the malware onto the computers of unsuspecting victims. Raccoon Infostealer then stole personal data from victim computers, including log-in credentials, financial information, and other personal records. Stolen information was used to commit financial crimes or was sold to others on cybercrime forums.
In March 2022, concurrent with Sokolovsky’s arrest by Dutch authorities, the FBI and law enforcement partners in Italy and the Netherlands dismantled the digital infrastructure supporting the Raccoon Infostealer, taking its then existing version offline.
Through various investigative steps, the FBI has collected data stolen from many computers that cyber criminals infected with Raccoon Infostealer. While an exact number has yet to be verified, FBI agents have identified more than 50 million unique credentials and forms of identification (email addresses, bank accounts, cryptocurrency addresses, credit card numbers, etc.) in the stolen data from what appears to be millions of potential victims around the world. The credentials appear to include over four million email addresses. The United States does not believe it is in possession of all the data stolen by Raccoon Infostealer and continues to investigate.
The FBI has created a website where anyone can input their email address to determine whether it is contained within the U.S. government’s repository of Raccoon Infostealer stolen data. The website is raccoon.ic3.gov. If the email address is within the data, the FBI will send an email to that address notifying the user. Potential victims are encouraged to fill out a detailed complaint and share any financial or other harm experienced from their information being stolen at FBI’s Internet Crime Complaint Center (IC3) at ic3.gov/Home/FileComplaint.
“This case highlights the importance of the international cooperation that the Department of Justice and our partners use to dismantle modern cyber threats,” said Deputy Attorney General Lisa O. Monaco. “As reflected in the number of potential victims and global breadth of this attack, cyber threats do not respect borders, which makes international cooperation all the more critical. I urge anyone who thinks they could be a victim to follow the FBI’s guidance on how to report your potential exposure.”
“I applaud the hard work of the agents and prosecutors involved in this case as well as our international partners for their efforts to disrupt the Raccoon Infostealer and gather the evidence necessary for indictment and notification to potential victims,” U.S. Attorney Ashley C. Hoff said. “This type of malware feeds the cybercrime ecosystem, harvesting valuable information and allowing cyber criminals to steal from innocent Americans and citizens around the world. I urge the public to visit the FBI’s Raccoon Infostealer website, find out if their email is within the stolen data, and file a victim complaint through the FBI’s IC3 website.”
“Today’s case is a further reminder the FBI will relentlessly pursue and bring to justice cyber criminals who seek to steal from the American public,” said FBI Deputy Director Paul Abbate. “We have once again leveraged our unique authorities, world-class capabilities, and enduring international partnerships to maximize impact against cyber threats. We will continue to use all available resources to disrupt these attacks and protect American citizens. If you believe you’re a victim of this cybercrime, we urge you to visit raccoon.ic3.gov.”
“This case highlights the FBI’s unwavering commitment to work closely with our law enforcement and private sector partners around the world to hold cybercriminals accountable for their actions and protect the American people from cybercrime,” said FBI Special Agent in Charge Oliver E. Rich Jr. “This case also serves as a reminder to public and private sector organizations of the importance to report internet crime and cyber threats to law enforcement as soon as possible. Working together is the only way we’re going to stay ahead of rapidly changing cyber threats."
“This indictment demonstrates the resolve and close cooperation of the Army Criminal Investigation Division and the FBI working jointly to protect and defend the United States,” stated Special Agent in Charge Marc Martin, Army CID’s Cyber Field Office. “Army CID would also like to thank our law enforcement partners in Italy and the Netherlands.”
Sokolovsky is charged with one count of conspiracy to commit computer fraud and related activity in connection with computers; one count of conspiracy to commit wire fraud; one count of conspiracy to commit money laundering; and one count of aggravated identity theft. The Amsterdam District Court issued a decision on September 13, 2022, granting the defendant’s extradition to the United States. Sokolovsky has appealed that decision.
If convicted, Sokolovsky faces a maximum penalty of 20 years in prison for the wire fraud and money laundering offenses, five years for the conspiracy to commit computer fraud charge, and a mandatory consecutive two-year term for the aggravated identity theft offense. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI’s Austin Cyber Task Force, with the assistance of the Department of the Army Criminal Investigation Division (Army CID), is investigating the case. The FBI Austin Cyber Task Force is supported by Army CID, Austin Police Department, the Naval Criminal Investigative Service, the Round Rock Police Department and the Texas Department of Public Safety.
Victims of the Raccoon Infostealer can find more information at www.justice.gov/usao-wdtx/victim-assistance-raccoon-infostealer. Assistant U.S. Attorneys Michael C. Galdo and G. Karthik Srinivasan are prosecuting the case. The Department of Justice’s Office of International Affairs is assisting with foreign evidence requests and the extradition request.
U.S. Attorney Hoff and Special Agent in Charge Rich would also like to thank the FBI Legal Attachés in Rome, The Hague, and Warsaw for their assistance in the investigation and disruption of the Raccoon Infostealer, along with the following foreign partners: Ministry of Justice of Italy; Special Unit for the Protection of Privacy and Technological Fraud of the Italian Guardia di Finanza; Procura della Repubblica di Brescia; the Netherlands Ministry of Justice and Security; Netherlands Police; and Netherlands Public Prosecution Service.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Newark Man Sentenced to 115 Months in Prison for Role in Knifepoint RobberyRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 115 months in prison for his role in the knifepoint robbery of a Harrison, New Jersey, taxi company, U.S. Attorney Philip R. Sellinger announced today.
Alfuquan Turner, 46, was convicted at trial in June 2022 before U.S. District Judge William J. Martini of one count of Hobbs Act robbery. Turner has two previous convictions for robbery, as well as other prior felony convictions.
On Sept. 23, 2019, Turner walked into a taxicab company armed with a knife and covering his face with a plastic bag. He demanded money from the cab company’s dispatcher. Turner stole the dispatcher’s jewelry, cell phone, and other items.
In addition to the prison term, Judge Martin sentenced Turner to three years of supervised release.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; investigators of the Port Authority of New York and New Jersey under the direction of Superintendent Edward Cetnar; officers of the Harrison Police Department, under the direction of Chief David Strumolo; and investigators of the N.J. Transit Police Department, under the direction of Chief Christopher Trucillo, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Shontae D. Gray and Sophie E. Reiter.
New Jersey Company to Pay $400,000 to Settle False Claims AllegationsRead the Press Release
NEWARK, N.J. – A construction contracting company and the company’s president have agreed to collectively pay $400,000 to resolve allegations they violated the False Claims Act (FCA) by circumventing small business set aside requirements in a federally funded contract U.S. Attorney Philip R. Sellinger announced today.
The settlement announced today resolves allegations that C. Abbonizio Contractors Inc. and the company’s president, Peter Abbonizio, violated small business set aside requirements that they use certified Disadvantaged Business Enterprises (DBEs) to perform work on the contract.
The allegations were that the defendants violated the FCA by falsely representing that DBE companies Sanzo Ltd. (Sanzo) and Multifacet LLC (Multifacet) were performing work on the Direct Connection Project, a federally funded New Jersey Department of Transportation project to provide infrastructure improvements to the intersection of Routes I-295, I-76, and Route 42 in Camden County, New Jersey. According to the allegations, Sanzo and Multifacet were not actually performing work, but instead were simply billing C. Abbonizio Contractors for work performed by other vendors on the project, along with a mark-up for their participation. The settlement resolves the complaint filed on May 29, 2020, against C. Abbonizio Contractors Inc. and Peter Abbonizio. Under the terms of the settlement, C. Abbonizio Contractors will pay $375,000, and Peter Abbonizio will pay $25,000.
U.S. Attorney Sellinger credited special agents of the U.S. Department of Transportation, Office of Inspector General, Northeastern Region, under the direction of Special Agent in Charge Christopher Scharf, and special agents of the Port Authority of New York and New Jersey, Office of Inspector General, under the direction of John Gay, with the investigation leading to the settlement.
The government is represented by Assistant U.S. Attorney Mark C. Orlowski of the U.S. Attorney’s Healthcare Fraud Unit in Newark.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
Monmouth Man Sentenced to More than Three Years in Federal Prison for Possessing FirearmsRead the Press Release
A man who possessed firearms as a prohibited person was sentenced today to more than three years in federal prison.
John Lee Ralston, age 55, from Monmouth, Iowa, received the prison term after a May 18, 2022 guilty plea of possessing firearms as a prohibited person.
Evidence at the sentencing hearing showed that on January 15, 2021, law enforcement officers searched Ralston’s home and discovered two firearms in his bedroom and drug paraphernalia throughout his house. That same day, Ralston gave a urine sample that tested positive for controlled substances, including methamphetamine. Ralston has a prior federal felony offense for possessing firearms as an unlawful drug user. Ralston has four other felony convictions and one serious misdemeanor conviction for domestic abuse assault causing bodily injury.
Ralston was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Ralston was sentenced to 37 months’ imprisonment, and he must serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Ralston is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent
violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was prosecuted by Special Assistant United States Attorney Devra T. Hake and Assistant United States Attorney Emily Nydle and investigated by the Jones County Sheriff’s Office, Cedar County Sheriff’s Office, Jackson County Sheriff’s Office, and officers with the Jones County Emergency Response Team.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-76.
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Mineral County man admits to drug distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Justin Edward Haines, of Keyser, West Virginia, has admitted to distributing fentanyl, heroin, crystal methamphetamine, and cocaine, United States Attorney William Ihlenfeld announced.
Haines, age 48, pleaded guilty today to one count of “Conspiracy to Possess with Intent to Distribute Fentanyl, Heroin, Crystal Methamphetamine, and Cocaine.” Haines admitted to working with others to sell fentanyl, methamphetamine, heroin, crystal methamphetamine, and cocaine in January 2020 to January 2021 in Mineral County.
Haines faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, investigated. The task force consists of the Federal Bureau of Investigation; the Drug Enforcement Administration; West Virginia State Police Bureau of Criminal Investigation; the Hampshire County Sheriff's Office; the Mineral County Sheriff's Office; the Hardy County Sheriff’s Office; the Grant County Sheriff’s Office; and the Keyser Police Department.
U.S. Magistrate Judge Robert W. Trumble presided.
Michael White Arrested on Federal Charges Relating to Murder of Big Stone Gap Police Officer Michael ChandlerRead the Press Release
ABINGDON, Va.- Michael Donivan White, 34, was arrested today and federally charged in relation to the murder of Big Stone Gap Police Officer Michael Chandler in November 2021. Eighteen others were also charged today on related, wide-ranging federal drug conspiracy and firearm charges.
Charged today were:
- Christopher Adam Dewayne Bates, of Appalachia, Virginia
- Amanda Nicole Blanton, of Big Stone Gap, Virginia
- Charles Ryan Bowman, of Duffield, Virginia
- Elicia Amber Burns, of Evarts, Kentucky
- Brian Gregory Carroll, of Big Stone Gap, Virginia
- Keri Leann Corbin, of Jonesville, Virginia
- Hailee Michelle Dietz, of Big Stone Gap, Virginia
- Anthony Curtis Steven Holmes, of Duffield, Virginia
- Paul Thomas Jones, of Big Stone Gap, Virginia
- Timothy Ray Jones, of Duffield, Virginia
- James Brian Mullins, of Abingdon, Virginia
- Justine Dwayne (“Doughboy”) Skaggs, of Duffield, Virginia
- Lucille Renee (“Lucy”) Vanover, of Duffield, Virginia
- Misty Lynn Ward, of Big Stone Gap, Virginia
- Kacie Lynn Werner, of Duffield, Virginia
- Tiny Lue (“Tina”) Westmoreland, of Big Stone Gap, Virginia
- Tyler Lee Westmoreland, of Big Stone Gap, Virginia
- Michael Donivan White, 34, of Big Stone Gap, Virginia
- James Ray Worley, of Appalachia, Virginia
“Today’s arrests have brought into custody the alleged murderer of Big Stone Gap Police Officer Michael Chandler and disrupted a large-scale drug-trafficking organization responsible for bringing more than 100 pounds of methamphetamine, heroin, and fentanyl into Southwest Virginia,” said United States Attorney Christopher R. Kavanaugh today. “My Office continues its commitment to seek justice for those affected by the senseless violence that all-too-often accompanies the narcotics trade and once again has endangered the peace and stability of Southwest Virginia.”
“Today’s arrests broke up a large-scale drug operation that brought huge quantities of lethal narcotics and, subsequently, violence and tragedy, into Southwest Virginia,” said Attorney General Jason S. Miyares. “The murder of Officer Chandler shook all of Virginia and is a painful reminder of the risk law enforcement willingly embrace every day. As my office supports the prosecution in that case, we are proud of all our partners, particularly the U.S. Attorney’s office and the lead law enforcement agencies, the Virginia State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives, and their unwavering commitment to justice.”
“The outcome of this case is the result of the excellent work by the investigators who took part in this investigation. Thanks to their tireless efforts there are several violent criminals off our streets. We at ATF work hard to keep our communities safe from people who endanger our neighborhoods,” said acting Special Agent in Charge Christopher Amon. “We will continue to work collaboratively with all our partners to combat violent crimes in an effort to maintain public safety.”
According to court documents, beginning in August 2021 and continuing until the present, the 19 defendants participated in a conspiracy to distribute more than 100 pounds of methamphetamine, as well as heroin and fentanyl.
Tragically, at approximately 4:00 a.m. on November 13, 2021, Officer Michael Chandler responded to a welfare check call at 2505 Orr Street in Big Stone Gap. This address, known locally as “the red house,” was well-known to police and often the subject of calls for service for civil disturbances, warrant service, welfare checks, overdoses, complaints of assaults, and drug-related activities.
Upon arriving at the Orr Street address, Officer Chandler encountered a vehicle outside the residence and was immediately shot. He died later that evening from his injuries.
Following the shooting, law enforcement identified Michael Donivan White as a suspect. White was later located at a motel in Kingsport, Tennessee and a subsequent search of the motel room revealed a Taurus, 9mm pistol. Further testing ultimately proved this firearm to be the same one that fired the shots that killed Officer Chandler.
The investigation of this case is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Virginia State Police, the United States Marshal’s Service, the Wise County Sheriff’s Office, the City of Norton Virginia Police Department, the Kingsport Tennessee Police Department, the Big Stone Gap Police Department, the Wise County Commonwealth’s Attorney’s Office, the East Tennessee Drug Task Force, and the Southwest Virginia Drug Task Force, which is comprised of investigators from the Virginia State Police, Lee County Sheriff’s Office, Scott County Sheriff’s Office, Wise County Sheriff’s Office, City of Norton Police Department, and Big Stone Gap Police Department.
Assistant U.S. Attorney Lena L. Busscher is prosecuting the case.
A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Manchester Man Sentenced to 34 Months in Prison for Possession of a Firearm by a Convicted Felon After Posting Videos on Social MediaRead the Press Release
CONCORD – Raheem Tyler, 24, of Manchester, was sentenced today to 34 months in federal prison for possession of a firearm by a convicted felon, United States Attorney Jane E. Young announced.
According to court documents and statements made in court, between July 7 and 23, 2021, the defendant took videos of himself carrying a handgun, which he posted on social media. Through investigation, law enforcement was able to determine the defendant’s location. Law enforcement obtained a search warrant for the apartment where the defendant was when he posted the July 23, 2021 video of himself with the gun. The search led to seizure of the handgun. The defendant later admitted that he had carried the gun. The defendant was legally prohibited from possessing a gun because he was a convicted felon based on multiple convictions, including a 2017 robbery in Manchester.
“Felons who possess firearms, especially those like the defendant who was convicted of a violent crime in his past, pose a serious threat to public safety” said U.S. Attorney Young. “The defendant was apprehended and convicted due to the diligent efforts of the Manchester Police Anti-Crime Unit, whose mission is the reduction of violent crime and apprehension of violent criminals. The U.S. Attorney’s office will continue to work with local law enforcement to keep our communities safe from felons in possession of firearms.”
“I am very pleased with this sentence, as it sends a clear message that violent criminals have no place in our community,” says Manchester Police Chief Allen Aldenberg. “I would like to commend the detectives in our Anti-Crime Unit for their commitment to this case. This positive resolution is a testament to their hard work.”
This matter was investigated by the Manchester Police Department. The case was prosecuted by Assistant U.S. Attorney Aaron Gingrande.
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Man Who Distributed Methamphetamine Sentenced to More than Fifteen Years in Federal PrisonRead the Press Release
A man who distributed methamphetamine was sentenced today to more than fifteen years in federal prison.
Charles Edward Ford, age 54, from Cedar Rapids, Iowa, received the prison term after a May 4, 2022 guilty plea to distribution of a controlled substance.
Evidence at the sentencing hearing showed that on three occasions between March and April 2021, Ford distributed ice methamphetamine to a confidential informant. Between February and April 2021, Ford purchased an additional twelve pounds of ice methamphetamine and one pound of a mixture containing methamphetamine. Ford has prior felony offenses for possessing a controlled substance with intent to deliver, second offense, delivery of cocaine base, and assault on a peace officer.
Ford was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Ford was sentenced to 190 months’ imprisonment and must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system. Ford is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Devra T. Hake and Assistant United States Attorney Dillan Edwards and investigated by the Cedar Rapids Police Department and the Drug Enforcement Administration.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-18.
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Local woman convicted of drug trafficking with former constableRead the Press Release
HOUSTON – A federal jury in Houston has convicted a 45 year-old Houston woman on two counts of drug trafficking, announced U.S. Attorney Jennifer B. Lowery.
The jury deliberated for approximately two hours before convicting Priscilla Yvette Cervantes of one count of conspiracy to possess with intent to distribute cocaine and aiding and abetting possession with intent to distribute cocaine following a five day trial.
During trial, the jury heard that in 2020, Cervantes assisted her former boyfriend/fiancé in transporting drug proceeds and escorting cocaine through the Houston area with police vehicles. Her boyfriend was Alexander S. Reyes - a former constable deputy for the Harris County Precinct One Constable’s Office.
Testimony revealed that authorities discovered text messages between the co-conspirators, undercover recordings and camera footage taken from Reyes’s constable vehicle.
The investigation revealed in that August and September 2020, they took two trips to Lake Charles, Louisiana, to transport drug proceeds into Houston. In December 2020, they used police vehicles to escort a tractor trailer containing six kilograms of cocaine and four “dummy” kilograms from Houston to Louisiana.
Reyes pleaded guilty Jan. 6 and remains in custody pending sentencing.
U.S. District Judge David Hittner presided over the trial and will set sentencing for Cervantes at a later date. At that time, Cervantes faces a mandatory minimum 10-year-term of imprisonment for both counts and a possible $10 million maximum fine.
Previously released on bond, Cervantes was taken into custody following the conviction today where she will remain pending that hearing.
The FBI conducted the investigation with the assistance of the Texas Department of Public Safety and Harris County Precinct One Constable’s Office. Assistant U.S. Attorneys Carolyn Ferko and Heather Winter are prosecuting the case. HOUSTON – A federal jury in Houston has convicted a 45 year-old Houston woman on two counts of drug trafficking, announced U.S. Attorney Jennifer B. Lowery.
The jury deliberated for approximately two hours before convicting Priscilla Yvette Cervantes of one count of conspiracy to possess with intent to distribute cocaine and aiding and abetting possession with intent to distribute cocaine following a five day trial.
During trial, the jury heard that in 2020, Cervantes assisted her former boyfriend/fiancé in transporting drug proceeds and escorting cocaine through the Houston area with police vehicles. Her boyfriend was Alexander S. Reyes - a former constable deputy for the Harris County Precinct One Constable’s Office.
Testimony revealed that authorities discovered text messages between the co-conspirators, undercover recordings and camera footage taken from Reyes’s constable vehicle.
The investigation revealed in that August and September 2020, they took two trips to Lake Charles, Louisiana, to transport drug proceeds into Houston. In December 2020, they used police vehicles to escort a tractor trailer containing six kilograms of cocaine and four “dummy” kilograms from Houston to Louisiana.
Reyes pleaded guilty Jan. 6 and remains in custody pending sentencing.
U.S. District Judge David Hittner presided over the trial and will set sentencing for Cervantes at a later date. At that time, Cervantes faces a mandatory minimum 10-year-term of imprisonment for both counts and a possible $10 million maximum fine.
Previously released on bond, Cervantes was taken into custody following the conviction today where she will remain pending that hearing.
The FBI conducted the investigation with the assistance of the Texas Department of Public Safety and Harris County Precinct One Constable’s Office. Assistant U.S. Attorneys Carolyn Ferko and Heather Winter are prosecuting the case.
Little Rock Man Sentenced to Life in Prison for Sex Trafficking of a MinorRead the Press Release
LITTLE ROCK—A Little Rock man was sentenced to life in prison today for conspiracy to commit sex trafficking of a six-year-old child. DeMarcus George, 28, was sentenced today by United States District Judge Brian S. Miller.
In February 2018, a 6-year-old child was taken to Arkansas Children’s Hospital due to symptoms that were later determined to be caused by several sexually transmitted diseases. The child was interviewed by an FBI forensic interviewer and disclosed that a man, later determined to be DeMarcus George, had raped her. The child also disclosed that another man, later determined to be Mario Waters, had also raped her. The child told interviewers that the rape occurred in a hotel room with a curtain in the middle of the room, and she described a picture hanging on the wall in the hotel room.
Law enforcement was able to locate a hotel in Little Rock that matched the description provided by the minor, including the picture on the wall and the curtain in the room. Financial records from the hotel showed that the minor’s mother had rented a room at the hotel in March 2018 and paid with a credit card. The child has since been removed from the mother’s custody.
Doctors at Arkansas Children’s Hospital determined that it was unlikely the child had obtained each sexually transmitted disease from the same offender and that there were likely multiple offenders. Officers obtained search warrants for George and Waters’ blood and urine. Results indicated that George and Waters tested positive for sexually transmitted diseases that the minor had contracted.
Both George and Waters were indicted in September 2019, and both pleaded guilty in November 2021. Both defendants admitted in court that they had sexual contact with the minor and were involved in trafficking her with others. Waters is awaiting sentencing.
The case was investigated by the FBI and the Little Rock Police Department. Assistant United States Attorneys Kristin Bryant and Allison Bragg are prosecuting the case.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Leominster Man Convicted for Role in Wide-Ranging Fentanyl, Heroin, Crack, and Cocaine ConspiracyRead the Press Release
BOSTON – A Leominster man was convicted by a federal jury yesterday in connection with his participation in a wide-ranging fentanyl, heroin, crack and cocaine trafficking conspiracy.
Adiangel Paredes, 36, was convicted following a one-week jury trial of one count of conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin, 400 grams or more of fentanyl, 500 grams or more of cocaine and 28 grams or more of cocaine base (commonly known as crack cocaine). U.S. Senior District Court Judge Timothy S. Hillman scheduled sentencing for March 1, 2023.
According to court documents, following a fatal fentanyl overdose in September 2018, law enforcement began an investigation into the drug trafficking activities of Pedro Baez and Anthony Baez. Intercepted communications, surveillance and controlled purchases identified Paredes as a fentanyl, heroin, and cocaine supplier in the Fitchburg area and one of the suppliers for Pedro and Anthony Baez.
Paredes was charged in July 2020 along with 17 others in an eight-count superseding indictment in connection with this investigation.
Between September 2018 and November 2019, Paredes conspired to distribute fentanyl, heroin and cocaine as well as a fentanyl and heroin mixture. Nearly 850 grams of the fentanyl and heroin mixture supplied by Paredes in three controlled purchases was seized during the investigation. In addition, evidence at trial established that, during the conspiracy, Paredes supplied at least an additional 550 grams of the fentanyl and heroin mixture.
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.
Nine of the 18 defendants have been 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. Three of the remaining defendants, Branny Taveras, Jessica Hughes and Hector Matos have pleaded guilty and are awaiting sentencing.
The charge of conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin, 400 grams or more of fentanyl, 500 grams or more of cocaine and 28 grams or more of cocaine base provides for a sentence of up to life in prison, at least five years of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement. The Fitchburg and Lunenburg Police Departments, U.S. Postal Inspection Service and Massachusetts State Police provided valuable assistance. Assistant U.S. Attorneys Alathea E. Porter and Sarah Hoefle of Rollins’ Criminal Division are prosecuting 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.
Large-Scale Philadelphia Drug Trafficker Sentenced to 40 Years in PrisonRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Arthur Rowland, 42, of Philadelphia, PA, was sentenced to 40 years in prison, and five years of supervised release by United States District Court Judge Gerald J. Pappert for his role in a scheme to import significant amounts of methamphetamine from California for distribution in and around Philadelphia.
In February 2022, following a seven-day trial, a jury found the defendant guilty of possession of a firearm by a felon, but was unable to reach a verdict on the remaining charges. Then, in May 2022, following a six-day retrial, the jury found Rowland guilty on four of the remaining five counts, including multiple firearms and narcotics offenses. The charges stemmed from Rowland’s role as the main distributor for a group that shipped many hundreds of pounds of nearly pure, Mexican-made methamphetamine to the Philadelphia area for further distribution to individuals suffering with addiction and others substance use disorders. For his part, the defendant provided addresses to his California connections, who in turn, sent him packages containing pounds of methamphetamine. Rowland then took possession of that methamphetamine, sold it, and generated large sums of cash.
When federal law enforcement arrested Rowland and executed a search warrant at his residence near City Avenue in December 2018, agents seized more than a kilogram of methamphetamine, approximately $17,000 cash, a Sig Sauer handgun, and two Draco assault-style weapons, as well as ammunition and a high-capacity drum magazine.
“Rowland and his co-conspirators shipped tons of drugs from one end of this country to the other through a large and sophisticated trafficking enterprise,” said U.S. Attorney Romero. “Four decades behind bars will keep Arthur Rowland off the street and unable to augment the supply of deadly drugs flowing into our community for a very long time.”
“Arthur Rowland pushed massive amounts of meth onto Philadelphia’s streets,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “But this 40-year sentence officially puts him out of business. The FBI and our partners at the Philadelphia Police Department are committed to taking down and locking up prolific drug traffickers like Rowland — people with no regard for the incredible damage they inflict on so many lives and communities.”
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorneys Paul G. Shapiro and Timothy M. Stengel.
Kentucky Drug Dealer Sentenced to over 16 Years in Federal Prison for Selling Methamphetamine at his Place of Employment While on Supervised ReleaseRead the Press Release
EVANSVILLE– Ronnie Rich Jr., 43, of Bowling Green, Kentucky, was sentenced to 200 months in federal prison after pleading guilty to possession with intent to distribute methamphetamine.
According to court documents, on April 1, 2021, Toyota Motor Manufacturing Indiana security learned that Rich was possibly under the influence of a controlled substance and was possibly distributing controlled substances on the Toyota property. Toyota security approached Rich, asked him to empty his pockets and advised Rich that his backpack would be searched. Rich told Toyota security that he’d done nothing wrong and began walking away.
Toyota security followed Rich as he walked through the factory and they saw Rich hand $1,250 in U.S. currency to a female, later identified as Rich’s girlfriend. Toyota security told Rich that if he was not going to comply with their investigation, he needed to turn over his Toyota badge. Rich turned over his badge and exited the factory into the parking lot. Rich then ran into nearby woods. Toyota security attempted to locate Rich with a drone, but they were unsuccessful.
Toyota security searched the backpack that Rich had abandoned in the factory and found two baggies containing methamphetamine and digital scales. A police laboratory confirmed the two baggies contained 237.9 grams of methamphetamine. Toyota security reviewed video surveillance footage of Rich entering the factory with the backpack that contained the methamphetamine.
At the time he was selling methamphetamine at his workplace, Rich was still on supervised release after being sentenced to 7 years in federal prison in 2011 for methamphetamine distribution in the Western District of Kentucky.
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 investigated the case. The Gibson County Sheriff’s Office provided valuable assistance. The sentence was imposed by U.S. District Judge Richard L. Young. As part of the sentence, Judge Young ordered that Rich be supervised by the U.S. Probation Office for four years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Lauren M. Wheatley who prosecuted this case.
Justice Department, U.S. Attorney’s Office, FBI Prepared to Handle Complaints of Voting Rights Concerns, Election FraudRead the Press Release
PROVIDENCE - United States Attorney Zachary A. Cunha announced today that Assistant United States Attorney Terrence P. Donnelly has been appointed to serve as the District Election Officer (DEO) for the District of Rhode Island for the upcoming November 8, 2022, general election. The District Election Officer is responsible for overseeing the District’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.
United States Attorney Cunha said, “It is a cornerstone of our Republic that every citizen be able to vote without interference or discrimination and to have their vote counted in a fair and free election. And it is equally critical that election officials and staff be able to serve without being subject to unlawful threats of violence. The Department of Justice will always work tirelessly to protect the integrity of the election process.”
The Department of Justice has long had an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud, and will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations. During the upcoming election, AUSA Donnelly will be on duty in this District to respond to any complaints of voting rights or election fraud concerns and to ensure that such complaints are handled or directed to the appropriate authorities. He can be reached by the public at (401) 709-5068
Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English). . .
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (401) 272-8310.
Complaints about possible violations of the federal voting rights laws can also be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/.
United States Attorney Cunha added, “Ensuring free and fair elections depends in large part on the assistance and vigilance of the American electorate. If you have specific information about voting rights concerns or election fraud, we rely on you to make that information available to the Department of Justice.”
Please note, however, that if you are the victim of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
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Justice Department Resolves Language Access Investigation of North Carolina CourtsRead the Press Release
Note: This press release has been translated in various languages. See attachments below.
The Justice Department today announced an
agreementwith the North Carolina Administrative Office of the Courts (NCAOC) that resolves a civil rights investigation and commits to improved access to state court for people with limited English proficiency (LEP).
This agreement resolves Justice Department findings that the NCAOC failed to provide LEP court users with meaningful language access to court proceedings and other important court services in violation of Title VI of the Civil Rights Act of 1964, which prohibits recipients of federal financial assistance from discriminating on the basis of race, color or national origin. The department found that the lack of language services resulted in longer incarcerations, conflicts of interests in criminal proceedings and barriers to important civil protections in domestic violence and child custody proceedings.
In response, the NCAOC has worked extensively with the Justice Department to expand language assistance services and improve access for LEP court users in North Carolina. For instance, NCAOC adopted Standards for Language Access Services in the North Carolina Court System and expanded interpreter coverage to all proceedings. Under the terms of this agreement, NCAOC has agreed to take additional steps to ensure meaningful language access for LEP court users.
“To promote public trust and confidence in the judiciary, state courts need effective language access policies and procedures that remove barriers to justice for limited English proficiency individuals,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This agreement builds upon the court’s past efforts to improve access for people who are limited English proficient and will ensure meaningful and effective language access services in North Carolina’s courts going forward.”
As set forth in the agreement, NCAOC will continue to provide LEP court users with interpreter services at no cost in all court proceedings and free language assistance services in court operations. The NCAOC will reconvene the Language Access Stakeholder Committee which will help it assess and improve existing court language access policies and procedures. The NCAOC will also translate into non-English languages vital information, including the interpreter request form and the notice of interpreter services.
The enforcement of Title VI is a top priority of the Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and information about limited English proficiency and Title VI is available at www.lep.gov. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/.
Honduran National Sentenced to Federal Prison for Fentanyl DistributionRead the Press Release
DENVER- The United States Attorney’s Office for the District of Colorado announces Hector Aquino-Torres, 26, of Denver, was sentenced to 84 months in federal prison for distribution and possession with intent to distribute fentanyl.
According to Court records, Aquino-Torres posted bond and was released from state custody on January 29, 2022, after having been arrested on state drug and firearm charges. Detectives with the Denver Police Department were aware that the defendant had been released. On February 8, 2022, an undercover officer arranged to purchase 200 fentanyl pills from the defendant. The two met at a motel in Aurora, where the defendant sold the pills to the undercover officer and they spoke about doing a larger 1,000 pill deal in the future. On February 14, 2022, the undercover officer reached out to the defendant and arranged to purchase 1,000 fentanyl pills for $2,500. The two agreed to meet at a 7-11 store in Denver. The defendant arrived and went into the store, where he was contacted and arrested. Officers found approximately 1,000 fentanyl pills in his pocket. A federal grand jury returned an indictment February 24, 2022.
Judge Raymond P. Moore sentenced the defendant on October 24, 2022. After his custodial sentence, the defendant will serve 4 years on supervised release.
"With fentanyl poisoning so many people, we will use the federal law to go after the drug dealers and drug traffickers who bring this deadly drug into our neighborhoods, especially repeat offenders,” said U.S. Attorney Cole Finegan. “We are committed to working with our state and federal law enforcement partners to combat the rising tide of this deadly substance.”
“The number of drug-related deaths is exploding in Colorado and the rest of the country due in large part to fentanyl being imported by drug cartels,” said Ryan L. Spradlin, Special Agent in Charge, HSI Denver. “HSI will continue to relentlessly work with Congress and all of our law enforcement partners to pursue every tool available to bring individuals like Aquino to justice.”
“Every counterfeit fentanyl pill and every fentanyl dealer we remove from our streets could potentially save lives in our community, so we will continue prioritizing enforcement against the distribution of dangerous, illegal narcotics in our neighborhoods,” said Denver Police Chief Ron Thomas.
This case was investigated by the Denver Police Department and Homeland Security Investigations, Denver. Assistant United States Attorney S. Zeke Knox handled the prosecution with assistance from the Denver District Attorney’s Office.
Case Number: 22-cr-00072.
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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.
Harrisburg Man Sentenced to 33 Months in Prison for Role in Straw Purchasing Firearms for FelonsRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Antonio Godbolt, age 37, of Harrisburg, Pennsylvania was sentenced yesterday to 33 months’ imprisonment by United States District Court Judge Jennifer P. Wilson for firearms offenses.
According to United States Attorney Gerard M. Karam, Antonio Godbolt pleaded guilty to conspiring with three other individuals to purchase firearms for felons and persons under indictment. Godbolt was prohibited by law from possessing a firearm because of his prior felony convictions, but he arranged for Taashaun Mansfield, age 21, of Harrisburg, to purchase a firearm for him. Mansfield also purchased six other firearms for felons.
Mansfield pleaded guilty to weapons offenses and was sentenced to 37 months in prison. Michael Windham, age 22, of Harrisburg, also pleaded guilty to weapons offenses and was sentenced to 46 months’ imprisonment. Johnny Quinones, age 35, of Harrisburg, is awaiting trial.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives in conjunction with the Harrisburg Bureau of Police. Assistant U.S. Attorney Michael A. Consiglio is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
All persons charged are presumed to be innocent unless and until found guilty in court.
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Greene County Man Sentenced to 120 Months for Attempting to Entice a MinorRead the Press Release
ALBANY, NEW YORK – Thomas “Tommy” Squires, age 37, of Cairo, New York, was sentenced today to 120 months in prison for attempting to coerce and entice a minor to engage in sexual activity with him. The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Squires admitted that between June 28, 2020 and August 19, 2020, he exchanged sexually explicit messages with an undercover officer posing as a 14-year-old child, in an attempt to coerce and entice the child into engaging in sexual acts with him. In those messages, Squires repeatedly asked the child for naked photos and sent photos of an erect penis to the presumed child. Squires further admitted that on August 19, 2020, he traveled in order to meet with the child in Cairo. Squires was arrested after arriving at the location, and he has been in custody since that date.
United States District Judge Mae A. D’Agostino also imposed a 15-year term of supervised release, which will start after Squires is released from prison. As a result of his conviction, Squires will be required to register as a sex offender upon his release from prison.
This case was investigated by the FBI and its Child Exploitation Task Force, which includes members of federal, state, and local law enforcement agencies, including the Colonie and Rotterdam Police Departments, as well as the New York State Police. This case was prosecuted by Assistant U.S. Attorney Rachel Williams as a part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Great Barrington Man Indicted on Child Pornography OffensesRead the Press Release
BOSTON – A Great Barrington man has been indicted by a federal grand jury in Springfield in connection with allegedly receiving and possessing child sexual abuse material (CSAM).
James J. Keough, 54, was indicted on one count of receipt of child pornography and one count of possession of child pornography. Keough was arrested on Oct. 18, 2022 and was released on conditions following an initial appearance in federal court in Springfield.
According to the indictment, between approximately Dec. 5, 2021 and March 16, 2022, Keough knowingly received CSAM that involved a prepubescent minor under the age of 12. Additionally, it is alleged that on or about March 18, 2022, Keough possessed CSAM in the form of images.
The charge of receipt of child pornography provides for a sentence of at least five years and up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. The charge of possession of child pornography provides for a sentence of up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Andrew Murphy, Special Agent in Charge of the U.S. Secret Service, Boston Field Office made the announcement. Valuable assistance was provided by the Great Barrington Police Department. Assistant U.S. Attorney Neil L. Desroches of Rollins’ Springfield Branch Office is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Google Enters into Stipulated Agreement to Improve Legal Process Compliance ProgramRead the Press Release
The Department of Justice today filed a stipulation and agreement resolving a dispute with Google over the loss of data responsive to a search warrant issued in 2016.
Pursuant to the first-of-its-kind resolution, Google has agreed to reform and upgrade its legal process compliance program to ensure timely and complete responses to legal process such as subpoenas and search warrants, as required under the Stored Communications Act (SCA) and other applicable legal authorities. To monitor that Google fulfills its legal obligations, an Independent Compliance Professional will be retained to serve as an outside third-party related to Google’s compliance enhancements.
“The Department is committed to ensuring that electronic communications providers comply with court orders to protect and facilitate criminal investigations,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “This agreement demonstrates the Department’s resolve in ensuring that technology companies, such as Google, provide prompt and complete responses to legal process to ensure public safety and bring offenders to justice.”
“The warrant underlying this agreement was sought in connection with a significant criminal investigation,” said U.S. Attorney Stephanie Hinds for the Northern District of California. “This agreement will help to ensure that, moving forward, Google will maintain the technical capability and resources necessary to comply with lawful warrants and orders, such as the one at issue in this case, that are critical to federal criminal investigations.”
As detailed in the Statement of Facts accompanying today’s agreement, in 2016, the United States obtained a search warrant in the Northern District of California for data held at Google related to the investigation of the criminal cryptocurrency exchange BTC-e. The warrant was issued under the SCA, the federal statute that requires providers such as Google to disclose customer communications when served with a warrant signed by a judge and supported by probable cause.
After the warrant was reviewed by a judge in the Northern District of California, sworn, signed, and served on Google, the Second Circuit Court of Appeals issued a decision holding that SCA search warrants did not reach data stored outside of the United States. Google halted execution of the search warrant and made rolling productions containing only information it could confirm was stored in the United States. Because Google’s data preservation tools at the time stored data in the United States – and thus brought the data under undisputed U.S. jurisdiction – Google also endeavored to create new tools that would prevent the data from being repatriated. Google and the government litigated regarding the search warrant through 2017 and into 2018, when Congress clarified that the SCA does indeed reach data that U.S. providers choose to store overseas. In the intervening time, data responsive to the warrant was lost.
In resolving the matter with the department, Google has agreed to numerous improvements to its legal process compliance program, as set forth in the filed agreement. The improvements are tailored to ensure that Google complies with its legal obligations to respond to lawful court orders, including those issued pursuant to the SCA. Google will maintain sufficient compliance staffing levels to support the enhancements to the program and will allocate engineering resources to support legal process compliance.
Google has further committed to implement processes and procedures to ensure timely response to legal process, as required under the SCA and other relevant legal frameworks, and to generate a compliance timeliness record for missed deadlines, which will be made available to the government upon request. Google will also develop and maintain needed tools to retrieve data in response to legal process, and to develop plans for legal process responses corresponding to new product launches.
The agreement also provides that an Independent Compliance Professional will verify the accuracy of assertions in all reports contemplated by the agreement and evaluate Google’s assessment of its compliance with the enhancements to Google’s Legal Process Compliance Program set forth in the agreement. Pursuant to the agreement and in consultation with the mandated Independent Compliance Professional, Google will assemble periodic reports and updates regarding its Legal Process Compliance Program and its implementation of the enhancements set forth in the agreement. Google will provide these reports to the government, the Google Compliance Steering Committee, and the Audit and Compliance Committee of the Alphabet Board of Directors.
In the filed stipulation, Google represented to the court that it spent over $90 million on additional resources, systems, and staffing to implement legal process compliance program improvements.
Google will maintain its lawful protections of user data, and the agreement does not provide the United States access to Google user data.
Senior Counsel C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section and Corporate and Securities Fraud Section Chief Lloyd Farnham for the Northern District of California negotiated the agreement on behalf of the government.
Google Enters into Stipulated Agreement to Improve Legal Process Compliance ProgramRead the Press Release
SAN FRANCISCO – The Department of Justice today filed a stipulation and agreement resolving a dispute with Google over the loss of data responsive to a search warrant issued in 2016.
Pursuant to the first-of-its-kind resolution, Google has agreed to reform and upgrade its legal process compliance program to ensure timely and complete responses to legal process such as subpoenas and search warrants, as required under the Stored Communications Act (SCA) and other applicable legal authorities. To monitor that Google fulfills its legal obligations, an Independent Compliance Professional will be retained to serve as an outside third-party related to Google’s compliance enhancements.
“The warrant underlying this agreement was sought in connection with a significant criminal investigation,” said U.S. Attorney Stephanie Hinds for the Northern District of California. “This agreement will help to ensure that, moving forward, Google will maintain the technical capability and resources necessary to comply with lawful warrants and orders, such as the one at issue in this case, that are critical to federal criminal investigations.”
“The Department is committed to ensuring that electronic communications providers comply with court orders to protect and facilitate criminal investigations,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “This agreement demonstrates the Department’s resolve in ensuring that technology companies, such as Google, provide prompt and complete responses to legal process to ensure public safety and bring offenders to justice.”
As detailed in the Statement of Facts accompanying today’s agreement, in 2016, the United States obtained a search warrant in the Northern District of California for data held at Google related to the investigation of the criminal cryptocurrency exchange BTC-e. The warrant was issued under the SCA, the federal statute that requires providers such as Google to disclose customer communications when served with a warrant signed by a judge and supported by probable cause.
After the warrant was reviewed by a judge in the Northern District of California, sworn, signed, and served on Google, the Second Circuit Court of Appeals issued a decision holding that SCA search warrants did not reach data stored outside of the United States. Google halted execution of the search warrant and made rolling productions containing only information it could confirm was stored in the United States. Because Google’s data preservation tools at the time stored data in the United States – and thus brought the data under undisputed U.S. jurisdiction – Google also endeavored to create new tools that would prevent the data from being repatriated. Google and the government litigated regarding the search warrant through 2017 and into 2018, when Congress clarified that the SCA does indeed reach data that U.S. providers choose to store overseas. In the intervening time, data responsive to the warrant was lost.
In resolving the matter with the department, Google has agreed to numerous improvements to its legal process compliance program, as set forth in the filed agreement. The improvements are tailored to ensure that Google complies with its legal obligations to respond to lawful court orders, including those issued pursuant to the SCA. Google will maintain sufficient compliance staffing levels to support the enhancements to the program and will allocate engineering resources to support legal process compliance.
Google has further committed to implement processes and procedures to ensure timely response to legal process, as required under the SCA and other relevant legal frameworks, and to generate a compliance timeliness record for missed deadlines, which will be made available to the government upon request. Google will also develop and maintain needed tools to retrieve data in response to legal process, and to develop plans for legal process responses corresponding to new product launches.
The agreement also provides that an Independent Compliance Professional will evaluate Google’s assessment of its compliance with the enhancements to Google’s Legal Process Compliance Program set forth in the agreement. Pursuant to the agreement and in consultation with the mandated Independent Compliance Professional, Google will assemble periodic reports and updates regarding its legal process compliance program and its implementation of the enhancements set forth in the agreement. Google will provide these reports to the government, the Google Compliance Steering Committee, and the Audit and Compliance Committee of the Alphabet Board of Directors.
In the filed stipulation, Google represented to the court that it spent over $90 million on additional resources, systems, and staffing to implement legal process compliance program improvements.
Google will maintain its lawful protections of user data, and the agreement does not provide the United States access to Google user data.
Corporate and Securities Fraud Section Chief Lloyd Farnham for the Northern District of California and Senior Counsel C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section and negotiated the agreement on behalf of the government.
Georgia Man Sentenced to 14 Months in Prison for Making Interstate Threats Against Executive Officer of New Jersey CompanyRead the Press Release
NEWARK, N.J. – A Georgia man was sentenced today to 14 months in prison for making interstate threats to an executive officer of a New Jersey based company, U.S. Attorney Philip R. Sellinger announced.
Alan Wallace, 59, of Cumming, Georgia, previously pleaded guilty by videoconference before U.S. District Judge Claire C. Cecchi to an information charging him with one count of transmitting interstate threats.
According to the documents filed in this case and statements made in court:
From January 2021 to March 2021, Wallace, a former employee of the victim company, sent threatening email communications to the victim, an executive officer of that company, which was a publicly traded company with headquarters in New Jersey. The victim’s company email account received the emails every few days beginning on Jan. 11, 2021, and continuing through early March 2021, with more sporadic emails arriving thereafter. The emails were sent from an anonymous email service.
The emails threatened violence to victim and the victim’s family if the company’s stock did not exceed a certain share value within 30 days. An email received on Feb. 5, 2021, with the subject line “Blood Bath,” read: “… it seems you don't care about your family. This will be an absolute blood bath if stock isn't over $200 in 2 weeks. Your hurt [sic] so many, and now it is your turn to experience it.”
In addition to the prison term, Judge Cecchi sentenced Wallace to two years of supervised release and fined him $10,000.
U.S. Attorney Sellinger credited special agents of the FBI, including the FBI’s Cyber Crimes Task Force, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Anthony P. Torntore of the U.S. Attorney’s Cybercrime Unit in Newark.
Fresno Man Sentenced to over 4 Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
FRESNO, Calif. — Desmond Divine, 21, of Fresno, was sentenced Monday to four years and three months in prison for being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Nov. 8, 2021, after Divine was approached by law enforcement officers, he fled on a scooter, dropping a loaded handgun. At the time, Divine was on parole and had prior felony convictions that prohibit him from possessing firearms.
This case was the product of an investigation by the Fresno Police Department, the U.S. Marshals Service, and Homeland Security Investigations. Assistant U.S. Attorney Laura Jean Berger 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 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.
Fort Stockton Man Sentenced to over 157 Years in Prison for Distributing Child Sexual Abuse MaterialRead the Press Release
ALPINE – Thomas Scott Perkins, 31, of Fort Stockton, was sentenced yesterday to 1,890 months in prison for distributing and possessing child sexual abuse material.
According to court documents and evidence presented at trial, Homeland Security Investigations (HSI) agents determined through investigation that Perkins was sharing child pornography online. A search warrant was executed at Perkins’ residence and multiple hard drive devices were discovered that contained 95,316 images and 1,237 videos of child sexual abuse material.
On July 19, 2022, Perkins was found guilty by a federal jury sitting in Pecos of one count of distribution of child pornography and eight counts of possession of child pornography. Perkins has remained in federal custody since his arrest on September 14, 2020.
“The sentence demonstrates the horrors of this type of crime, which we will continue to relentlessly pursue,” said U.S. Attorney Ashley C. Hoff. “I want to express my deep gratitude to our law enforcement partners and dedicated prosecutors who worked to bring this defendant to justice.”
“This lengthy sentence is a testament to the repugnant nature of child exploitation crimes, particularly the production of child pornography which only perpetuates the trauma endured by victims,” said Francisco Burrola, Special Agent in Charge, HSI El Paso. “HSI agents make it a top priority to protect vulnerable children from victimization by working with their law enforcement partners to investigate predators involved with the possession and distribution of child pornography and ensure they are held accountable for their heinous actions.”
HSI, with assistance from the FBI, the U.S. Department of Agriculture and the Texas Department of Public Safety, investigated the case.
Assistant U.S. Attorneys Scott V. Greenbaum and Kevin Cayton prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Fort Myers Felon Sentenced to Fifteen Years in Federal Prison for Firearms and Drug OffensesRead the Press Release
Fort Myers, Florida – U.S. District Judge Thomas P. Barber today sentenced Shauntavus Berklin (34, Fort Myers) to 15 years in federal prison for possessing firearms as a convicted felon and distributing fentanyl. The court also ordered Berklin to forfeit the firearms he illegally had possessed. Berklin had pleaded guilty to the charges, which were contained in two indictments, on July 14, 2022.
According to court documents, on October 16, 2020, deputies from the Lee County Sheriff’s Office responded to a hotel in Fort Myers where a car linked to a home invasion robbery was parked. The deputies linked the car to a hotel room occupied by Berklin and another suspect in the robbery and obtained a search warrant. During a search of the room, deputies discovered two loaded firearms hidden in a mattress box spring. Subsequent forensic analysis of the firearms linked one of the firearms to Berklin, who had recently been released from a 10-year prison sentence. As a convicted felon, he is prohibited from possessing a firearm or ammunition.
Approximately three and a half months later, on January 30, 2021, detectives from the Fort Myers Police Department attempted to conduct a traffic stop of a rental vehicle they suspected was being driven by Berklin. Berklin fled from officers at a high rate of speed before crashing the vehicle in a residential neighborhood near downtown Fort Myers and escaping on foot. Inside the vehicle, officers located a loaded firearm and multiple baggies of fentanyl packaged for sale. DNA testing of the firearm later linked the firearm to Berklin, as did other personal items found in the car, including a receipt from his bail bondsman addressed to “Tweet” Berklin, his well-known nickname.
Berklin’s criminal activities continued in April 2021, during which time he twice sold fentanyl to an individual working with the Drug Enforcement Administration for $1,800. On each occasion, Berklin met with the individual in a parking lot of a local Fort Myers businesses and provided the informant with drugs while under constant surveillance by law enforcement.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Lee County Sheriff’s Office, and the Fort Myers Police Department. They were prosecuted by Assistant United States Attorneys Trenton Reichling and Michael V. Leeman.
These cases are 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 out 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 first place, setting focused and strategic enforcement priorities, and measuring the results.
Former Tribal Official Pleads Guilty to Bribery SchemeRead the Press Release
A former Tribal government official of the Three Affiliated Tribes of the Mandan, Hidatsa, and Arikara Nation (MHA Nation) pleaded guilty today to a bribery scheme in which he admitted to soliciting and accepting bribes and kickbacks from a contractor providing construction services on the Fort Berthold Indian Reservation, which is the home of the MHA Nation.
According to court documents, Randall Jude Phelan, 58, of Mandaree, North Dakota, was an elected representative on the Tribal Business Council, the governing body of the MHA Nation, from around November 2012 through the middle of 2020. Beginning around 2013 and continuing through 2020, Phelan solicited and accepted bribes and kickbacks from a contractor operating on the Fort Berthold Reservation. In exchange for the payments, Phelan used his official position to help the contractor’s business, including by awarding contracts, fabricating bids during purportedly competitive bidding processes, advocating for the contractor with other Tribal officials, and facilitating the submission and payment of fraudulent invoices.
Phelan pleaded guilty to conspiracy to commit bribery concerning programs receiving federal funds, honest services wire fraud, and bribery concerning programs receiving federal funds. He is scheduled to be sentenced on Feb. 22, 2023, and faces a maximum penalty of 20 years in prison on the top count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Jennifer Klemetsrud Puhl for the District of North Dakota; and Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division made the announcement.
The FBI Minneapolis Field Office investigated the case.
Trial Attorneys Andrew Tyler and John J. Liolos of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Matthew Greenley for the District of North Dakota are prosecuting the case.
Former Teacher Sentenced to 60 Months in Federal Prison for Child PornographyRead the Press Release
TALLAHASSEE, FLORIDA – Mark Robert Clow, 54, of Tallahassee, Florida, has been sentenced to 60 months in federal prison for receiving material constituting child pornography. The sentence was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“The safety and well-being of our children is paramount,” stated U.S. Attorney Coody. “Those who seek to view and maintain child pornography facilitate the abuse of children by those who produce and profit from this illegal content, robbing our children of their innocence and their very childhood. With our law enforcement partners, we will hold such offenders accountable.”
Between June 2017, and September 2021, Clow distributed, received, and possessed material containing child pornography. The pornographic material found in Clow’s possession involved a minor under the age of 12.
“A teacher holds a position of great responsibility and trust, violating that trust by preying on the innocent destroys the fabric of a healthy and conducive leaning environment for our children,” said Homeland Security Investigations (HSI) Jacksonville Assistant Special Agent in Charge K. Jim Phillips. “To collect and distribute this illicit child exploitation material supports the evil industry that creates it. Thanks to our partnership with Leon County Sheriff’s Office, this predator now faces the consequences of exploiting the innocence of our children.”
Clow’s prison sentence will be followed by 5 years of supervised release. He will also be required to register as a sex offender and will be subject to all sex offender conditions
“This sentencing reflects the dedication of prosecutors and our law enforcement agencies to vigorously pursue justice in these cases,” said Sheriff Walt McNeil. “The Leon County Sheriff’s Office is committed to working with our partners to ensure anyone who is sexually abuses children and/or produces, obtains or shares images of such abuse faces justice.”
This conviction was the result of an investigation conducted by the Homeland Security Investigations and the Leon County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Meredith L. Steer.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Former Portsmouth Naval Shipyard Sailor Sentenced for Sexual Abuse of a MinorRead the Press Release
PORTLAND, Maine: A Michigan man was sentenced today in federal court in Portland for sexually abusing a minor, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge Nancy Torresen sentenced Matthew Boyd, 33, to five years in prison followed by five years of supervised release. Boyd pleaded guilty on January 25, 2022.
According to court records, in August 2009, Boyd was a 20-year-old active-duty sailor stationed at the Portsmouth Naval Shipyard when he began corresponding with a then 11-year-old on Myspace. When the minor was 12, she visited Boyd at the shipyard, and the two engaged in a sexual act. In October 2020, the now adult victim working with law enforcement reached out to Boyd and during the conversation, Boyd confessed.
“The passage of time will not shield sexual predators,” McElwee said. “This case is a fine example of the diligence and commitment to justice we expect to see from our law enforcement community. It is critically important that regardless of the passage of time, sexual predators, particularly those who victimize children, are held accountable for their conduct within the bounds of the law. May the courage of this survivor be an encouraging message to those who have been similarly traumatized that they can seek and achieve justice.”
The Naval Criminal Investigative Service investigated the case.
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Former Memphis Police Officer Sentenced to 12 Years for Criminal Civil Rights ViolationsRead the Press Release
Memphis, TN – A federal judge has sentenced a former Memphis Police Officer to 12 years in federal
prison for criminal civil rights violations. U.S. Attorney Kevin G. Ritz announced the sentence
today.On January 24, 2020, former Memphis Police Officer Sam Blue 63, pled guilty to conspiracy to
violate civil rights by using force, violence, and intimidation, and conspiracy to commit robbery
affecting interstate commerce. On October 25, 2022, United States District Court Judge John T.
Fowlkes Jr. sentenced Blue to 144 months in federal prison to be followed by three years’
supervised release. There is no parole in the federal system.U.S. Attorney Kevin G. Ritz said: “Our citizens have a right to be policed by officers who follow
the law. This officer abused his authority and violated others’ civil rights. He’ll now spend a
significant time in federal prison. My hope is that this sentence sends a clear message that law
enforcement officers who break the law will be held accountable.”
“This sentencing proves that abuse of law enforcement authority will not be tolerated,” said Bryan
McCloskey, Acting Special Agent in Charge of the Memphis Field Office of the Federal Bureau of
Investigation. “Every citizen has the right to expect law enforcement officers to act in accordance
with the laws they have sworn to uphold, and the FBI is committed to aggressively investigating and
bringing to justice those officers who break the law and violate the public trust.”According to information presented in court, between 2014 and 2018 Sam Blue, a sworn Memphis Police
Department Officer, conspired with others to rob drug dealers of drugs or drug proceeds. Prior to
the planned robberies, various co-conspirators would conduct surveillance of the targets. Officer
Blue provided his co-conspirators with information, such as home addresses for the targets of the robberies, obtained from law enforcement restricted sources. Blue also provided his co-conspirators with equipment, including an official MPD badge, and a car dashboard blue light to use during the planned robberies so that they could falsely claim to appear to be law enforcement.In July 2018, Eric Cain was selected as a robbery target by the conspirators. The defendants began
conducting surveillance on Cain and put a GPS tracker on his car. Blue provided the gate code used
by law enforcement to access Cain’s apartment complex in furtherance of the plan to commit the
robbery.On July 13, 2018, as Cain was leaving his apartment in Memphis around 4:30 a.m., a black car with
flashing blue lights pulled up behind his car. Cain believed he was being stopped by law
enforcement. Two of the defendants, dressed in black clothing with the word "police" on it and
wearing masks and armed with handguns, got out of the car with the flashing lights and ordered Cain
to get out of his car and get on the ground. Cain obeyed and the men handcuffed him, put a hood
over his face, and placed him in the back of their car. The defendants then drove Cain to a house
on Reese Road here in Memphis.
At this new location, Cain was taken inside the house and restrained while the defendants beat him,
burned him on his arms, neck, and head, and demandedthat he tell them where he kept his money
and/or drugs. Cain was able to escape by jumping through the front window of the house. He was
hospitalized for a week in the burn unit and underwent surgery for his injuries.U.S. Attorney Ritz thanked the FBI Tarnished Badge Task Force, which investigated this case, and
Assistant United States Attorney David Pritchard, who prosecuted this case on behalf of the
government.
###Contact Public Information Officer Cherri Green at 901-544-4231 or [email protected]. Follow @ WDTNNews on Twitter for office news and updates.
Former Executive Director of Children’s Not-For-Profit Arrested for EmbezzlementRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael Alfonso, the Acting Special Agent-in-Charge of the New York Field Office of the Department of Homeland Security (“HSI”), announced that PHILIP DALLMANN, the former executive director of a children’s not-for-profit organization based in New York City, was charged in a complaint with embezzling funds from the organization from 2018 to 2021. DALLMANN was arrested today in Seattle, Washington, and will be presented this afternoon in Seattle federal court.
U.S. Attorney Damian Williams said: “As alleged, Philip Dallmann spent years exploiting his position of trust to line his own pockets with donor funds intended to enrich the lives of children. He also stole for years from his wife’s family, and when he was caught, he claimed he did so in part to help cover the organization’s costs. Dallmann now faces federal charges for this double deception.”
Acting Special Agent-in-Charge Michael Alfonso said: “Dallmann’s insatiable greed led him to allegedly embezzle nearly $100,000 from a not-for-profit organization aimed at helping children participate in the arts. Dallmann betrayed the trust of his employers and took these funds from the hands of children and teachers who deserve them, funding his own lifestyle with the stolen funds. HSI is a leader in federal financial crime investigations, and we will continue to bring our investigative capabilities to expose financial frauds targeting our most vulnerable.”
As alleged in the Complaint unsealed today in Manhattan federal court:[1]
From at least 2018 through 2021, PHILIP DALLMANN served as the executive director of a children’s not-for-profit organization based in Manhattan. The organization is dedicated to providing inclusive arts programming for students of all development profiles, including autistic children.
In 2018, DALLMANN began embezzling funds from the organization’s bank account for unauthorized personal expenses. In or around 2019, the organization began receiving overdraft notices from the bank, which DALLMANN claimed was caused by the bank’s loss of donor checks. The following year, the organization switched banks, and DALLMANN continued his embezzlement. A subsequent audit revealed that DALLMANN stole a total of approximately $98,000.
While serving as the executive director, DALLMANN married a teacher at the not-for-profit organization. In or around the spring of 2020, DALLMANN’s wife learned that DALLMANN had stolen credit cards that belonged to her father and on which she was an authorized user and that DALLMANN had used the credit cards to make unauthorized transactions, later found to total more than $143,000.
DALLMANN claimed that he had used his wife’s credit cards to cover operational expenses for the not-for-profit organization. DALLMANN then impersonated the organization’s treasurer by email to negotiate repayments by the organization to his wife. Based on DALLMANN’s representations, the organization then, in fact, entered into a contract to pay DALLMANN’s wife $30,000.
In sum, DALLMANN made hundreds of unauthorized personal transactions using the not-for-profit organization’s bank accounts, such as payments for pet grooming, food delivery, restaurants, groceries, alcohol, clothing, shoes, transportation, ESPN Plus and Netflix subscriptions, Amazon orders, and wedding photography services. He also withdrew thousands of dollars in cash from the not-for-profit organization’s accounts.
* * *
DALLMANN, 34, of Seattle, Washington, is charged with one count of wire fraud, which carries a maximum potential sentence of 20 years in prison, and one count of access device fraud, which carries a maximum potential sentence of 15 years in prison. He is also charged with one count of aggravated identity theft, which carries a mandatory minimum sentence of two years in prison, consecutive to any other sentence imposed.
The statutory minimum and maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the investigative work of HSI and thanked local law enforcement partners in Seattle and the U.S. Attorney’s Office for the Western District of Washington for their assistance.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Jane Y. Chong is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint constitutes only allegations, and every fact described herein should be treated as an allegation.
Former Credit Union employee who repeatedly stole from elderly woman’s account sentenced to a year in prisonRead the Press Release
Seattle – A former financial services representative at Alaska USA Federal Credit Union was sentenced today in U.S. District Court in Seattle to one year and a day in prison for bank fraud, announced U.S. Attorney Nick Brown. Lee Michael Griffin, 31, previously of Mount Vernon, Washington, stole more than $129,000 from an elderly bank customer by making unauthorized transfers from the woman’s account to his own. U.S. District Judge John C. Coughenour imposed three years of supervised release to follow the prison term.
According to records filed in the case, Griffin had worked at the credit union for almost two years when he made his first illegal transfer from the elderly victim’s bank account to a lender to pay off his $7,000 loan. Over the next three years, even after he had left the employ of the credit union, he made 65 additional transfers to do things such as pay his mortgage, pay for a new car and other personal expenses. The victim’s account settings had been changed to stop the mailing of paper statements, and instead just sent electronic statements. However, the victim did not have computer access. The theft was discovered when the victim was hospitalized, and a nephew began assisting with her finances. He discovered the thefts from the account and worked at length with the credit union to ensure the funds were restored.
Noting that Griffin and his wife had declared bankruptcy in 2013, Assistant United States Attorney James Oesterle wrote to the court, “Having taken advantage of the opportunity to get his financial affairs in order and make the most of the fresh start offered by the bankruptcy code, he chose another path. He turned to another source of loan forgiveness, stealing from a seemingly inactive bank account holding thousands of dollars. Mr. Griffin’s conscious choice reflects a character trait no different from a defendant who brazenly steals property only to return time and again emboldened by the fact that they were not caught. The criminal conduct becomes habitual, unburdened by any moral clarity. It reflects an abject failure to distinguish right from wrong and recognize and appreciate the harm it inflicts on others.
Griffin, who now lives in Gilbert, Arizona, paid full restitution to the credit union of $129,194.31 at the sentencing hearing.
The case was investigated by the FBI. The case was prosecuted by Assistant United States Attorney James Oesterle.
Former Chief Financial Officer Sentenced to 41 Months of Imprisonment for $2 Million FraudRead the Press Release
GREENSBORO – The former chief financial officer of a company in High Point, North Carolina, was sentenced today in federal court in Greensboro for wire fraud, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina.
SAMUEL ALLEN MOUZON, age 62, of Lexington, North Carolina, was sentenced to a 41-month term of imprisonment by the Honorable Catherine C. Eagles, United States District Judge in the United States District Court for the Middle District of North Carolina. In addition to prison time, MOUZON was ordered to serve three years of supervised release and to pay a $5,000 fine and a special assessment of $100.00. A $500,000.00 forfeiture money judgment was also entered against the defendant. He pleaded guilty on June 29, 2022, to wire fraud, a violation of Title 18, United States Code, Section 1343.
According to court records, MOUZON worked as the chief financial officer of a company in High Point for approximately twenty years. Between approximately December 2018 and February 2021, MOUZON embezzled approximately $2,038,285 for his own personal benefit and to fund purchases for himself and his family without the company’s knowledge or approval. During this time, the company received approximately $750,000 in federal pandemic relief funding. The Court ordered MOUZON to pay $2,038,285.66 in restitution to the victim company and an insurance company from which the victim company recovered a portion of the total loss.
In related civil and administrative proceedings, the United States forfeited numerous items of real and personal property that MOUZON paid for with proceeds of the offense, including several bank and investment accounts, a lake-front residence in Lexington, a second residence and two building lots in the same Lexington development, a condominium in North Myrtle Beach, South Carolina, two 2020 Jeep Wranglers, a 2020 GMC Yukon Denali, two boats, two 2017 jet skis, a 2021 Polaris four-wheeler, and two golf carts.
“Corporate executives who steal from their employers will be prosecuted in the Middle District of North Carolina, where our prosecutors will seek active prison sentences,” said U.S. Attorney Sandra J. Hairston. “With the unprecedented flow of federal dollars used to support businesses during the pandemic, the need for these prosecutions has never been greater.”
“Stealing from your employer and taking advantage of the Nation’s lifeline to small businesses impacted by the pandemic for personal gain is reprehensible,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “Our office will aggressively pursue evidence of wrongdoing and bring those responsible to justice. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”
The investigation was jointly undertaken by the United States Secret Service and the Office of the Inspector General for the U.S. Small Business Administration. The civil case was prosecuted by Assistant United States Attorney Lynne Klauer. The criminal case was prosecuted by Assistant United States Attorneys Tanner Kroeger and Ashley Waid.
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Former Aryan Brotherhood Member Sentenced to 18 Years for Meth TraffickingRead the Press Release
SPRINGFIELD, Mo. – A Billings, Mo., man who belonged to the Aryan Brotherhood was sentenced in federal court today for methamphetamine trafficking.
Jimmy Jack Pinkley, 45, was sentenced by U.S. District Judge Brian C. Wimes to 18 years and four months in federal prison without parole.
On Dec. 16, 2021, Pinkley pleaded guilty to one count of possessing methamphetamine with the intent to distribute.
Pinkley admitted that he was in possession of methamphetamine when he was stopped by a Christian County, Mo., sheriff’s deputy on Jan. 17, 2021. Pinkley was driving a Dodge Charger, which was later identified as a stolen vehicle, in the area of Evergreen Circle, driving down multiple roads of the trailer park and stopping briefly at multiple houses. When the deputy attempted to make a traffic stop, Pinkley pulled into a driveway and got out of the vehicle. The deputy ordered Pinkley to show his hands, but he reached with both his hands to his rear waistband. The deputy removed his firearm and again ordered Pinkley to show him his hands. After a brief pause, Pinkley lifted his hands above his head. The deputy handcuffed Pinkley and frisked him for weapons.
Pinkley appeared to be very nervous, sweating and breathing heavily. The deputy searched the vehicle and found a brown leather bag on the front passenger seat that contained approximately 177 grams of 97% pure methamphetamine in multiple individually wrapped clear plastic baggies.
Pinkley told investigators the methamphetamine was what he had left from the 1.5 pounds of methamphetamine he had obtained from his supplier in Oklahoma City, Oklahoma, the previous day. Pinkley, who said he had been selling methamphetamine for approximately six months, told investigators he received approximately one pound of methamphetamine during each trip to Oklahoma City. He got his methamphetamine by calling an inmate in Oklahoma State Prison, who would then tell him where to go to obtain his methamphetamine.
Pinkley also told investigators that he had been an active member of the Aryan Brotherhood for more than 20 years, and that he joined the gang during his first stint in state prison. He showed them his patch to the gang.
Law enforcement officers executed a search warrant at Pinkley’s residence, where they found a loaded Maverick 12-gauge shotgun leaning against a safe in the metal shop located on the property behind Pinkley’s trailer. Inside the safe, officers found a small baggie of methamphetamine and a set of digital scales.
Pinkly was also a passenger in a Pontiac Grand Prix that was stopped by law enforcement officers on Oct. 29, 2020. Officers found a brown nylon case under the front passenger’s seat that contained 11.48 grams of methamphetamine and drug paraphernalia.
According to court documents, since Pinkly obtained his first felony conviction for possession of methamphetamine with the intent to distribute in 1997, he has been convicted of either possession, possession with the intent to distribute, or manufacturing a controlled substance in eight different cases. He also has prior convictions for misdemeanor domestic abuse, misdemeanor resisting arrest, felony intimidation of a witness, two felony convictions for unlawful possession of a firearm, and two felony convictions for aggravated assault and battery.
This case was prosecuted by Special Assistant U.S. Attorney Cameron A. Beaver. It was investigated by Christian County, Mo., Sheriff’s Department, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Missouri State Highway Patrol, and the Stone County, Mo., Sheriff’s Department.
Final Defendant in Eight-Person Indictment Pleads Guilty to Gun ConspiracyRead the Press Release
Gulfport, Miss. – A Biloxi man pled guilty to conspiracy to possess a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Brad Byerley of the Drug Enforcement Administration.
Jamaar Saunders, 29, was the last defendant in an eight-person conspiracy that was originally charged in October of 2021. Saunders will be sentenced on January 26, 2023.
According to court documents and information presented to the Court, in 2020, the DEA and Gulfport Police Department began investigating a local drug trafficking conspiracy involved in the distribution of oxycodone, marijuana, alprazolam, methamphetamine, and pressed fentanyl pills. As part of the investigation, law enforcement obtained access to the conspirators’ social media and cell phone messages. During the investigation, law enforcement officers learned that various members of the organization, like many drug traffickers, possessed firearms to protect themselves, their drugs, and their proceeds from the sale of drugs. In addition, some members of the conspiracy invested in the purchase of firearms for subsequent resale. Law enforcement officers also discovered that members of the conspiracy transferred firearms between themselves to further the conspiracies goals. With respect to Jamaar Saunders, officers were able to determine that he was involved in the distribution of controlled substances and the acquisition/provision of firearms to at least one other member of the conspiracy.
As a result of this investigation, Jamaar Saunders, Raheem Lane, Mary Matthews, D’Laun Ball, and Malyk Harveston, pled guilty to conspiracy to possess a firearm in furtherance of a drug trafficking crime. Sernareo Barnett, Nigel Saunders, and Lafayette Copeland pled guilty to conspiracy to possess with intent to distribute controlled substances. Each of these offenses carried a maximum penalty of 20 years imprisonment. In addition, Raheem Lane pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime which exposed him to a consecutive sentence of between 5 years and life imprisonment.
Jamaar Saunders, D’Laun Ball, and Raheem Lane are currently awaiting sentencing. The remaining defendants have already been sentenced.
As a result of the charges brought in this case, and related cases that were brought against Kristopher Weaver and Tyrik Frazier, law enforcement officers seized: 25 firearms, over $25,000 in cash, six vehicles, fentanyl, alprazolam, marijuana, and methamphetamine. The firearms, cash, and vehicles have been or are in the process of being forfeited.
The DEA and Gulfport Police Department investigated this case with assistance from the Biloxi Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Assistant U.S. Attorney Jonathan Buckner is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Fentanyl Trafficker Found GuiltyRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces that a federal jury has found Juan Carlos Garcia (39, Apopka) guilty of conspiracy and possession of fentanyl with intent to distribute it. Garcia faces a maximum penalty of life in federal prison. His sentencing hearing is scheduled for January 6, 2023. Garcia had been indicted on February 16, 2022.
According to testimony and evidence presented at trial, Garcia conspired with a co-defendant to drive to a gas station in Apopka and sell more than a kilogram of fentanyl for $33,000. Garcia drove the vehicle and brought a loaded handgun with him, while his co-defendant brought the drugs and set up the deal. In coordination with DEA, the Apopka Police Department conducted a traffic stop on the vehicle. During a search of the vehicle, the loaded handgun was recovered from the center console and the package of drugs was found in the backseat. Both defendants were arrested without incident. The drugs were tested by the DEA laboratory and determined to be p-Fluorofentanyl, which is an analogue of fentanyl and is on Schedule I of the Drug Enforcement Administrations’ schedules of controlled substances.
Garcia will also have to forfeit the handgun and ammunition which facilitated the drug trafficking offense.
This case was investigated by the Drug Enforcement Administration, Homeland Security Investigations, and the Apopka Police Department. It is being prosecuted by Assistant United States Attorneys John M. Gardella and Courtney Richardson-Jones.
Federal Witness Indicted for Obstruction of Justice and for Soliciting A Bribe from A DefendantRead the Press Release
Greenbelt, Maryland – A federal grand jury has returned an indictment charging Jolen Michael Ghorbani, a/k/a “Jay,” age 28, formerly of Fairfax, Virginia, for bribery of a witness and obstruction of justice, in connection with a criminal trial in which Ghorbani was a witness. The indictment was returned on October 19, 2022, and unsealed today upon Ghorbani’s arrest.
The defendant is expected have an initial appearance tomorrow in U.S. District Court in Fort Lauderdale, Florida.
The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Wayne Jacobs of the Federal Bureau of Investigation - Washington Field Office Criminal Division; and Chief Malik Aziz of the Prince George’s County Police Department.
According to the three-count indictment, on February 3, 2021, Ghorbani was the victim of a kidnapping, assault, and robbery committed by Tray David Sherman and Sherman’s co-conspirators. During the kidnapping, Ghorbani was transported from Maryland to Washington, D.C. where Sherman and his co-conspirators assaulted and robbed Ghorbani. Sherman was indicted and arrested on March 31, 2021, for conspiracy to commit kidnapping.
The indictment alleges that Ghorbani used a social meida account to send a series of direct messages to Sherman, including a message where Ghorbani sent his telephone number to Sherman and said “[C]all me If you want to finesse trial.” Approximately three weeks before the scheduled start of Sherman’s trial, Ghorbani sent another series of messages to Sherman through his social media account, this time soliciting a payment of $5,000 from Sherman in exchange for Ghorbani’s agreement to testify falsely or to refuse to testify at all at Sherman’s trial. Ghorbani shared the messages he sent to Sherman with another individual, bragging that he (Ghorbani) was “[d]ancing with the devil,” and telling that person, “I’m auctioning off his freedom.”
If convicted, Ghorbani faces a maximum sentence of 15 years in federal prison for bribery and a maximum of 10 years in federal prison for obstruction of justice. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Erek L. Barron commended the FBI Washington Field Office and the Prince George’s County Police Department for their work in the investigation and thanked the FBI Miami Field Office for its assistance. Mr. Barron thanked Assistant U.S. Attorney Jeffrey J. Izant and Special Assistant U.S. Attorney Jared C. Engelking, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Fayette County Man Charged with Crimes involving the Sexual Exploitation of MinorsRead the Press Release
PITTSBURGH - A Fayette County man has been indicted by a federal grand jury in Pittsburgh, PA on charges involving the sexual exploitation of minors, United States Attorney Cindy K. Chung announced today.
The seven-count Superseding Indictment named Sean Ryan McKenzie, 37, formerly Perryopolis, PA, as the sole defendant.
According to the Superseding Indictment, on June 5, 2020, Dec. 13, 2020, and June 8, 2021, McKenzie attempted to and did use, persuade, induce, entice, and coerce a minor to engage in sexually explicit conduct for the purpose of producing any of such conduct. Further, the Superseding Indictment alleges that on March 1, 2022, McKenzie knowingly possessed visual depictions, namely, videos and images in computer graphic and digital files, the production of which involved the use of minors, including prepubescent minors who have not attained 12 years of age, engaging in sexually explicit conduct. The Superseding Indictment further alleges that on June 5, 2020, Dec. 13, 2020, and Feb. 21, 2021, McKenzie knowingly attempted to transport and transported material depicting the sexual exploitation of a minor.
The law provides for a maximum total sentence of life in prison, a fine of $1,750,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
Homeland Security Investigations – Pittsburgh and the Pennsylvania State Police conducted the investigation leading to the Superseding Indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.