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7 December 2022
Former IT Director Charged with Fraud, Aggravated Identity TheftRead the Press Release
PROVIDENCE – The former IT Director at a Warwick supplier of precision tubing and fabricated metal components has been charged in federal court in Providence with wire fraud and aggravated identity theft for allegedly embezzling more than $1M from the company, announced United States Attorney Zachary A. Cunha.
Charging documents allege that Juan Hicks, 47, of New Bedford, MA, who was employed at the time as IT Director for the AT Wall Companies, used his access to the company’s computer network; his purchasing authority for computer hardware, software, and other equipment; his management authority over the company phone systems and internet services; and his access to company credit cards to orchestrate schemes in which he obtained goods and services for himself, family members, and friends, and paid personal expenses for Hicks and his family.
According to court documents, during a cyber-attack which took place in March 2022, AT Wall Companies hired forensic analysts to determine the source of the attack and to identify vulnerabilities. According to company officials, during that inquiry, Hicks refused to provide his computer and passwords, as per company policy. An internal investigation provided by the company to the Warwick Police Department, Homeland Security Investigations, and the United States Attorney’s Office subsequently revealed that Hicks had allegedly embezzled over one million dollars from the company since 2012.
According to information voluntarily provided by the company to law enforcement, Hicks’ alleged fraud included getting reimbursement for false expense reports and fraudulent invoices he created; enrolling family members on the company’s wireless phone service plan and issuing company phones to himself and six family members; purchasing airline and entertainment tickets for himself and family members; and using a company credit card to make purchases at retail stores and payments for auto repairs.
Hicks, arrested today, was released on unsecured bond following an initial appearance in U.S. District Court. A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant United States Attorney Lee H. Vilker.
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Former Correctional Officer Sentenced for Assaulting a Hawaii InmateRead the Press Release
A former correctional officer at the Hawaii Community Correctional Center was sentenced to 96 months in federal prison for his role in the assault of an inmate and his participation in a multi-year conspiracy to cover-up the abuse.
According to court documents and evidence introduced at trial, on June 15, 2015, Jason Tagaloa, 31, joined his two co-defendants and a third correctional officer while they transported an inmate across the facility. The inmate became frightened in the course of the transfer, and Tagaloa took the non-violent inmate to the ground, where he and his co-defendants repeatedly punched and kicked the inmate in the face, head and body. The inmate’s jaw, orbital socket and nose were broken in the course of the assault. In the months and years that followed, Tagaloa participated in a cover-up conspiracy that included writing false reports, submitting false statements to internal affairs and providing false testimony to disciplinary board members.
“The defendant abused his authority and violently assaulted and injured an inmate without justification,” said Assistant Attorney General Clarke for the Justice Department’s Civil Rights Division. “This sentence makes clear that no one is above the law, and that when corrections officials violate the civil rights of people held in our jails and prisons they will be held accountable.”
“As a correctional officer, Tagaloa accepted responsibility for ensuring the safe incarceration of inmates,” said U.S. Attorney Clare E. Connors for the District of Hawaii. “When he instead participated in the brutal assault of an inmate, he violated the inmate’s civil rights and then sought to cover it up. Our office is committed to investigating and prosecuting those who engage in such criminal conduct.”
“The law applies to everyone equally,” said Special Agent in Charge Steven Merrill of the FBI Honolulu Field Office. “This case shows those who work in positions of public trust are held to the same standard as the general public. All misconduct allegations are investigated thoroughly and fairly by the FBI.”
Assistant Attorney General Clarke, U.S. Attorney Connors, Assistant Director Luis Quesada for the FBI’s Criminal Investigative Division and Special Agent in Charge Merrill made the announcement.
The FBI investigated the case.
Assistant U.S. Attorney Craig Nolan of the District of Hawaii, Special Litigation Counsel Chris Perras, and Trial Attorney Thomas Johnson of the Civil Rights Division’s Criminal Section prosecuted the case.
Florida State Representative Indicted for Wire Fraud, Money Laundering, and Making False StatementsRead the Press Release
GAINESVILLE, FLORIDA – A federal grand jury has returned a six-count indictment against Joseph Harding, 35, of Williston, Florida. The indictment was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
The Indictment alleges that between December 1, 2020, and March 1, 2021, Harding committed two acts of wire fraud by participating in a scheme to defraud the Small Business Administration (SBA) and for obtaining coronavirus-related small business loans by means of materially false and fraudulent pretenses, representations, and promises, and for the purpose of executing such scheme, caused wire communications to be transmitted in interstate commerce. The Indictment alleges that Harding made and caused to be made false and fraudulent SBA Economic Injury Disaster Loan (EIDL) applications, and made false representations in supporting loan documentation, in the names of dormant business entities, submitted to the SBA. The Indictment further alleges that Harding obtained fraudulently created bank statements for one of the dormant business entities which were used as supporting documentation for one of his fraudulent EIDL loan applications. By this conduct, the indictment alleges that Harding fraudulently obtained and attempted to obtain more than $150,000 in funds from the SBA to which he was not entitled. Harding is also charged with two counts of engaging in monetary transactions with funds derived from unlawful activity related to his transfer of the fraudulently obtained EIDL proceeds into two bank accounts, and two counts of making false statements to the SBA.
Trial for Harding is scheduled for Wednesday, January 11, 2023, at 8:30 a.m., at the United States Courthouse in Gainesville, Florida, before the Honorable United States District Judge Allen Winsor.
The maximum terms of imprisonment for the offenses are as follows:
- 20 years: Wire Fraud
- 10 years: Money Laundering
- 5 years: Making False Statements
The investigation was jointly conducted by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation, the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General, and the Small Business Administration (SBA) Office of Inspector General. The case is being prosecuted by Assistant United States Attorneys Justin M. Keen and David P. Byron.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
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, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Florida Company Sentenced to $2.5 Million Fine for Unlawful Distribution of Anabolic SteroidsRead the Press Release
FRANFORT, Ky. — A Florida company, Modern Therapy, LLC, was sentenced on Friday to pay a $2.5 million fine by U.S. District Judge Gregory VanTatenhove for the unlawful distribution of anabolic steroids.
Modern Therapy operated out of Hallandale Beach, Florida. According to its plea agreement, it marketed anabolic steroids, human growth hormone, and related products to customers over the Internet. Anabolic steroids are a Schedule III controlled substance and may only be issued pursuant to a valid prescription for a legitimate medical purpose. Modern Therapy paid physicians for use of their electronic signatures, which were applied to anabolic steroid prescriptions for customers the doctors never examined. Modern Therapy sold and shipped steroids, HGH, and related products to customers across the country, including numerous Kentucky customers. According to Modern Therapy’s plea agreement, between January 1, 2014 and February 1, 2020, the company received more than $25 million in customer payments for these illegally distributed products.
Modern Therapy pleaded guilty to a conspiracy to unlawfully distribute controlled sustances in June 2022. In addition to the $2.5 million fine, the sentence includes an $11 million forfeiture money judgment. In a parallel civil forfeiture case, Modern Therapy agreed to forfeit three Florida residential properties purchased with proceeds of its crime, and $125,589 in currency seized from its bank accounts.\
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; and George Scavdis, Special Agent in Charge, Metro Washington Field Office, U.S. Food and Drug Administration - Office of Criminal Investigations (FDA-OCI), jointly announced the sentence.
This investigation was conducted by FDA-OCI, with substantial assistance from the Kentucky State Police - Drug Enforcement/Special Investigations (DESI - East); the West Virginia State Police; the Harrison County Sheriff’s Office; the Broward County (Florida) Sheriff’s Office - Money Laundering Task Force; the Kentucky Cabinet for Health & Family Services - Office of Inspector General - Drug Enforcement & Professional Practices Branch, and the Florida Department of Health - Bureau of Enforcement. The United States was represented by Assistant U.S. Attorney Paul McCaffrey.
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Five charged with COVID fraudRead the Press Release
WHEELING, WEST VIRGINIA – A federal grand jury returned indictments on Tuesday alleging fraud against five people in connection with COVID-19.
United State Attorney William Ihlenfeld announced that charges have been filed against individuals alleged to have improperly benefitted from funds appropriated by Congress in response to the COVID-19 pandemic, as follows:
- Dalton Haas, age 27, Wheeling, WV, Wire Fraud and False Statements to SBA
- James A. Nolte, age 51, Bridgeport, WV, Wire Fraud and Money Laundering
- Shawn M. Murphy, age 47, Moundsville, WV, Wire Fraud
- David Boyd, age 27, Chester, WV, Wire Fraud and False Statement to Federal Agent
- Jodi Headley, age 49, Chester, WV, Mail Fraud
“The U.S. Attorney’s Office is committed to combatting pandemic fraud and these charges are just the first of many that we will bring,” said United States Attorney Ihlenfeld. “We have a team of highly skilled prosecutors, investigators, and accountants who work on COVID-related cases every day to identify all those who used deception to steal public funds.”
“Those charged today acted out of pure greed,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “These loans were intended to help business owners struggling from the impact of the pandemic. Instead, the indictments allege these actors saw it as an opportunity to rip off the program. Everyone should know the FBI and our partners will pursue those who defraud programs like PPP and hold them accountable for their crimes.”
Dalton Haas is alleged to have made false representations regarding organizations with which he was affiliated in order to obtain CARES Act funding. Specifically, Haas is charged with making false statements about the gross revenues, the cost of goods sold, and the number of employees for the Lebanese Restaurant & Bakery, the Wheeling Wine Festival, the West Virginia Hockey League, and the Wheeling Hockey Association.
James Nolte is charged with submitting false tax documents, payroll reports, and business records in order to obtain Paycheck Protection Program (PPP) loans. The indictment alleges that Nolte improperly secure loans for PGO Veteran Services, PG Health, RJS Catering, and Dental Care Plus, for total fraud in the amount of $645,717.
Shawn Murphy is alleged to have applied for and received unemployment compensation through the CARES Act even though he was still gainfully employed as a machine operator at businesses in Marshall County.
David Boyd is charged with submitting false information in support of his application for PPP funding, including misrepresenting the gross income of a business known as the Seafood Hut. Boyd is also charged with lying to an FBI agent about his loans.
Jodi Headley is alleged to have applied for and receiving unemployment benefits despite being employed by Hancock County schools.
Assistant U.S. Attorney Jennifer Conklin is prosecuting the cases. The matters were investigated by the FBI and WorkForce West Virginia.
Ihlenfeld encouraged anyone aware of COVID fraud to report it via email to [email protected], by telephone to 304-234-0100, or via regular mail to the U.S. Attorney, P.O. Box 591, Wheeling, WV 26003, Attn: COVID Fraud Unit.
All those charged are presumed innocent unless proven guilty.
Federal Inmate Receives Seven More Years in Prison for Assaulting Correctional OfficersRead the Press Release
HONOLULU – U.S. District Court Judge Leslie E. Kobayashi sentenced David Akui-Cabanilla, III, 37, yesterday to 84 months of imprisonment for assaulting two federal officers at the Federal Detention Center in Honolulu on March 23, 2020, while Akui-Cabanilla was detained prior to trial on a separate federal charge for possessing a firearm as a convicted felon. Judge Kobayashi ordered the 84-month sentence be served consecutive to a 34-month sentence she imposed on March 8, 2022, for Akui-Cabanilla’s firearm conviction.
Court documents detailed the nature of the assaults as the correctional officers were engaged in their official duties. In preparation for his attacks, the defendant fashioned two makeshift weapons. The first weapon was a long tube sock tied to the loop of a locked metal padlock. The second weapon was a shiv formed from a razor blade with a piece of bedsheet tied around one end, simulating a handle. Akui-Cabanilla beat Correctional Officer D.M. unconscious with the locked metal padlock. He took the officer’s Bureau of Prisons-issued keys and his pepper spray in an apparent escape attempt. When other correctional officers, including Officer D.C., confronted Akui-Cabanilla, he sprayed Officer D.C. and other officers in the face with pepper spray. He then punched Officer D.C. in the head knocking him down to the ground.
Multiple officers suffered injuries requiring medical attention and ongoing physical therapy treatment. As part of this sentence, Judge Kobayashi ordered Akui-Cabanilla to pay $24,508.92 in restitution for medical bills paid by the U.S. Department of Labor’s Office of Workers’ Compensation Programs.
“While we have recently prosecuted a few correctional officers for violating the civil rights of an inmate, other correctional officers are lawfully protecting our community from incarcerated inmates,” said U.S. Attorney Clare E. Connors. “This was nothing short of a vicious, premeditated attack on several of those correctional officers, and such conduct warrants the additional imprisonment imposed.”
"Violence against law enforcement officers is absolutely unacceptable," said FBI Special Agent in Charge Steven Merrill. "The FBI takes this brutality very seriously and is committed to aggressively investigating such heinous crime."
This conviction is the result of an FBI investigation. Assistant U.S. Attorney Mohammad Khatib is prosecuting the case.
Father and Son Sentenced for $1.7 Million COVID-19 Relief FraudRead the Press Release
Two men were sentenced yesterday for their roles in the submission of fraudulent loan applications seeking more than $1.7 million in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Izzat Freitekh, 57, of Waxhaw, North Carolina, was sentenced to four years in prison and his son Tarik Freitekh, aka Tareq Freitekh, 35, whose last known residence was in Glendale, California, was sentenced to 87 months in prison. The government previously seized and secured the forfeiture of approximately $1.3 million in PPP funds illegally obtained by the Freitekhs, which has been returned to a victim lender.
According to court documents and evidence presented at trial, Izzat and Tarik Freitekh obtained approximately $1.7 million by submitting multiple fraudulent PPP loan applications for companies owned by Izzat Freitekh: La Shish Kabob, La Shish Kabob Catering, Green Apple Catering, and Aroma Packaging. The loan applications misrepresented the number of employees and payroll expenses. After obtaining the fraudulent loan proceeds, the Freitekhs engaged in unlawful monetary transactions with the proceeds of the scheme, including making $30,000 in payments to family members. In March 2022, a federal jury in the Western District of North Carolina convicted the Freitekhs of money laundering and other offenses.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Dena J. King for the Western District of North Carolina; Inspector in Charge Tommy Coke of the U.S. Postal Inspection Service (USPIS) Atlanta Division; Special Agent in Charge Donald E. Eakins of the IRS Criminal Investigation (IRS-CI) Charlotte Field Office; and Special Agent in Charge Mark Morini of the U.S. Treasury Inspector General for Tax Administration (TIGTA) Southeast Field Division made the announcement.
The USPIS, IRS-CI, and TIGTA investigated the case.
Trial Attorneys Joshua DeBold and Matt Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mark Odulio for the Western District of North Carolina prosecuted the case.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 192 defendants in more than 121 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Father and Son Sentenced for $1.7 Million COVID-19 Relief FraudRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced that two men were sentenced yesterday for their roles in the submission of fraudulent loan applications seeking more than $1.7 million in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Inspector in Charge Tommy Coke of the U.S. Postal Inspection Service (USPIS), Atlanta Division; Special Agent in Charge Donald E. Eakins of the IRS Criminal Investigation (IRS-CI), Charlotte Field Office; and Special Agent in Charge Mark Morini of the U.S. Treasury Inspector General for Tax Administration (TIGTA), Southeast Field Division, join U.S. Attorney King in making the announcement.
Izzat Freitekh, 57, of Waxhaw, North Carolina, was sentenced to 48 months in prison and his son Tarik Freitekh, aka Tareq Freitekh, 35, whose last known residence was in Glendale, California, was sentenced to 87 months in prison. The court also ordered each defendant to serve three years under court supervision upon completion of their prison terms The government previously seized and secured the forfeiture of approximately $1.3 million in PPP funds illegally obtained by the Freitekhs, which has been returned to a victim lender.
According to court documents and evidence presented at trial, Izzat and Tarik Freitekh obtained approximately $1.7 million by submitting multiple fraudulent PPP loan applications for companies owned by Izzat Freitekh: La Shish Kabob, La Shish Kabob Catering, Green Apple Catering, and Aroma Packaging. The loan applications misrepresented the number of employees and payroll expenses. After obtaining the fraudulent loan proceeds, the Freitekhs engaged in unlawful monetary transactions with the proceeds of the scheme, including making $30,000 in payments to family members. In March 2022, a federal jury in the Western District of North Carolina convicted the Freitekhs of money laundering and other offenses.
The USPIS, IRS-CI, and TIGTA investigated the case.
Assistant U.S. Attorney Mark T. Odulio with the Western District of North Carolina and Trial Attorneys Joshua DeBold and Matt Kahn of the Criminal Division’s Fraud Section prosecuted the case.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Farmington man indicted for sexual abuse and child pornographyRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced that Willard Haven Dedios was arraigned on Dec. 2 on a two-count indictment charging him with production of child pornography and sexual abuse of an incapacitated person. Dedios, 59, of Farmington, New Mexico, and an enrolled member of the Jicarilla Apache Tribe, will remain in custody pending trial, which is scheduled for Feb. 6, 2023.
A federal grand jury indicted Dedios on Nov. 9. According to the indictment, on May 26, Dedios allegedly engaged in and attempted to engage in sexual acts with a minor, identified as Jane Doe, while the victim was incapacitated. Dedios also allegedly photographed the victim during the sexual abuse.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Dedios faces 15 to 30 years in prison for production of child pornography and up to life in prison for sexual abuse of an incapacitated person.
The FBI and the Jicarilla Apache Police Department investigated this case. Assistant United States Attorney Alexander F. Flores is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
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Evansville Felon Sentenced to One Year in Federal Prison for Escape from a Federal Residential Reentry CenterRead the Press Release
EVANSVILLE – Brett Clark, 40, of Evansville, was sentenced to 12 months in federal prison after pleading guilty to escaping from federal custody.
According to court documents, on September 7, 2011, Clark was sentenced by the United States District Court for the Southern District of Indiana to 10 years in prison followed by 5 years of supervised release for methamphetamine trafficking.
On December 8, 2020, after his initial release from federal prison, Clark’s was ordered to serve an additional 21 months in prison for violating the terms of his supervised release. On April 14, 2022, Clark was transferred to the Volunteers of America (“VOA”) Hope Hall Residential Reentry Center in Evansville, Indiana. The Bureau of Prisons contracts with residential reentry centers, also known as halfway houses, to provide assistance to inmates who are nearing release. Inmates serving a portion of their sentence at a residential reentry center are only authorized to leave the RRC through sign-out procedures for approved activities.
Clark was to remain in and abide by the rules of the facility, until his projected release date of July 10, 2022. On May 19, 2022, Clark left the VOA with authorization to go to work, but he never showed up to work and VOA was notified of his absence. Clark only had authorization to leave the VOA to go to work and did not have authorization to leave for any other purpose or remain away from the VOA.
On July 5, 2022, law enforcement officers apprehended Clark in Evansville.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Dan McClain, U.S. Marshal for the Southern District of Indiana, made the announcement.
The U.S. Marshal Service investigated the case. The sentence was imposed by U.S. District Judge Richard L. Young.
U.S. Attorney Myers thanked Assistant U.S. Attorney Matthew B. Miller who prosecuted this case.
Eleventh Defendant Pleads Guilty in $15 Million Scheme to Defraud Spanish-Speaking United States ImmigrantsRead the Press Release
A California man pleaded guilty today to conspiring with Peruvian-based call-centers that defrauded Spanish-speaking United States residents by falsely threatening them with arrest, deportation and other legal consequences.
According to court documents, Luis Rendon, 60, of Harbor City, California, operated a distribution center that helped the call center operators execute their fraud scheme from Peru. With Rendon’s guilty plea, eleven defendants have now pleaded guilty in connection with a $15 million trans-national fraud scheme aimed at defrauding Spanish-speaking residents of the United States by fraudulently threatening them with legal consequences if they did not pay for English-language learning products they never requested or pay bogus settlement fees. More than 30,000 Spanish-speaking residents of the United States were defrauded.
In total, the eleven defendants include seven Peruvian call center owner-operators and four distribution center operators who processed payments and facilitated the fraud in the United States. Many of the defendants collaborated and shared strategies on how to defraud Spanish-speaking residents of the United States.
Seven of the defendants were extradited from Peru and pleaded guilty in federal court to conspiracy to commit mail and wire fraud and received significant prison sentences. U.S. District Judge Robert N. Scola, Jr. sentenced Henrry Milla, Carlos Espinoza, Jerson Renteria, Fernan Huerta, Omar Cuzcano, Evelyng Milla and Josmell Espinoza to sentences ranging from 88 months to 110 months in prison.
“These cases demonstrate that the Department of Justice’s Consumer Protection Branch will vigorously pursue and prosecute transnational criminals who defraud vulnerable U.S. consumers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Individuals who defraud our immigrant communities will be brought to justice and held accountable in U.S. courts.”
“Our cases with the Consumer Protection Branch demonstrate that the long arm of justice has no limits when it comes to reaching fraudsters who prey on our nation’s most vulnerable populations,” said U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “We will continue to bring American justice to transnational criminals who use fear tactics and intimidation to steal money from immigrants, seniors and others who live in this country.”
“For many years, the U.S. Postal Inspection Service and their law enforcement partners have investigated and prosecuted international criminal rings targeting U.S. consumers to steal their hard-earned money,” said Acting Inspector in Charge Juan A. Vargas of the U.S. Postal Inspection Service Miami Division. “The U.S. Postal Inspection Service, along with the Department of Justice’s Consumer Protection Branch and the U.S. Attorney’s Office, will continue to aggressively pursue these criminals to ensure that they are prosecuted to the fullest extent of the law.”
According to court documents, Rendon owned and operated International Latin Market (ILM), a California-based distribution center that facilitated the large-scale telemarketing fraud and extortion scheme from 2011 until late 2017. Rendon aided and abetted the scheme by providing lists of prospective victims to the call centers in Peru, processing card payments from victims, and sending low-quality computer tablets pre-loaded with English language courses to victims in the Miami area and across the United States.
Rendon, like the other defendants who pleaded guilty before him in this investigation, admitted that the call centers and their employees falsely claimed to be lawyers, court officials, federal agents, and representatives of a so-called “minor crimes court,” which does not exist. The callers falsely threatened victims with court proceedings, negative marks on their credit reports, imprisonment, and immigration consequences if they did not immediately pay for the purportedly delivered products and settlement fees.
Angel Adrianzen, another co-conspirator who operated a U.S. based distribution center that facilitated an additional group of fraudulent Peruvian call centers, pleaded guilty to similar charges in 2020. Adrianzen helped his co-conspirators set up and staff call centers that defrauded Spanish-speaking residents in the United States. Judge Scola sentenced Adrianzen to 121 months in prison.
Rendon will be sentenced on Feb. 16, 2023, before U.S. District Judge Patricia A. Seitz in Miami. He faces a maximum sentence of 20 years’ imprisonment.
The U.S. Postal Inspection Service and the Consumer Protection Branch investigated the case.
Senior Trial Attorney Phil Toomajian and Trial Attorney Max Goldman of the Consumer Protection Branch are prosecuting the cases and Assistant United States Attorney Annika Miranda is handling asset forfeiture. The Federal Trade Commission, the Justice Department’s Office of International Affairs, the U.S. Attorney’s Office for the Southern District of Florida, the State Department’s Diplomatic Security Service and the Peruvian National Police provided critical assistance.
The Department of Justice continues to investigate and bring charges in other similar matters involving threats against Spanish-speaking residents of the United States. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311).
Additional information about the Consumer Protection Branch and its fraud enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch.
Drug Co-Conspirators Sentenced for Violations of the Federal Controlled Substances and the Federal Gun Control ActsRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced on Wednesday, December 7, 2022 that RAYDELL SCOTT, age 46, a resident of Mount Airy, Louisiana, and MORGAN BURL, III, age 43, a resident of Houma, Louisiana, were sentenced in the United States District Court in connection with their pleas of guilty. SCOTT pled guilty to a three-count superseding bill of information charging him with conspiracy to distribute and possess with the intent to distribute 500 grams or more of cocaine hydrochloride, a quantity of heroin, a quantity of fentanyl, and a quantity of methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(B), (b)(1)(C), and 846 (Count 1), obstruction of justice, in violation of Title 18, United States Code, Section 1512(c)(1) (Count 2), and felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2) (Count 3). BURL pled guilty to a two-count superseding bill of information charging him with conspiracy to distribute and possess with the intent to distribute 500 grams or more of cocaine hydrochloride, 100 grams or more of heroin, 40 grams or more of fentanyl, and 5 grams or more of methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(B), and 846 (Count 1) and possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i) (Count 2).
United States District Court Judge Jane Triche Milazzo sentenced SCOTT to 60 months imprisonment in the Bureau of Prisons. Following his term of imprisonment, SCOTT will be placed on supervised release for a period of 4 years. The court did not impose a fine, but imposed a mandatory special assessment fee of $300.00.
Judge Milazzo sentenced BURL to 70 months as to Count 1. For Count 2, Judge Milazzo sentenced BURL to 60 months imprisonment. The Court ordered that the sentence imposed in Court 2 run consecutively to the sentence imposed in Count 1. BURL will be placed on supervised release for a period of 5 years. While a fine was not imposed, a mandatory special assessment fee of $200.00 was imposed.
According to court documents, SCOTT and BURL, conspired with others to sell over 500 grams of cocaine, over 100 grams of heroin, over 40 grams of fentanyl, and over 5 grams of methamphetamine in the Eastern District of Louisiana. On April 12, 2019, SCOTT attempted to destroy a quantity of heroin while fleeing from officers during a traffic stop. Federal agents later executed a search warrant at SCOTT’s residence on May 30, 2019. Agents located a Ruger Model P89, nine-millimeter caliber firearm inside of the residence. SCOTT, a convicted felon, was prohibited from legally possessing a firearm at the time he possessed the firearm.
Agents also executed a search warrant at BURL’s residence where inside they found heroin, fentanyl, cocaine, and methamphetamine. Numerous firearms were also located, including: a Kel Tec semiautomatic pistol; an AR-15 .22 caliber rifle; a Taurus .45 caliber pistol; a .38 caliber Smith and Wesson firearm; a Jimenez nine-millimeter semiautomatic firearm; a Titan .25 caliber firearm; a Norinco assault rifle; a Sears & Roebuck 12-gauge shotgun; and a .410 pump shotgun.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (“OCDETF”). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney Brittany L. Reed is in charge of the prosecution.
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DOJ and Tri-Med Ambulance resolve complaint regarding ADA violations for patients who are deaf or hard of hearingRead the Press Release
Seattle – The U.S. Attorney’s Office for the Western District of Washington and Tri-Med Ambulance LLC, have reached a settlement agreement aimed at improving services for patients who are deaf or hard of hearing, announced U.S. Attorney Nick Brown. The settlement resolves an Americans with Disabilities (ADA) complaint brought by the Northwest Justice Project on behalf of a South King County resident regarding emergency medical transport on September 7, 2020. The ambulance crew had no auxiliary aids to allow communication with the patient and failed to notify the hospital that the patient needed communication services.
“When emergency medical services are involved, it is critical that a patient can communicate with caregivers,” said U.S. Attorney Nick Brown. “I am pleased Tri-Med will have new procedures and resources in place to ensure patients who are deaf or hard of hearing will have effective ways to communicate.”
According to the settlement agreement, Tri-Med will ensure it has appropriate auxiliary aids and services on hand for use with patients who are deaf or hard of hearing. Each patient can be shown a pictograph which allows them to indicate the preferred method of communication: for example, sign language, lip reading or written communication. Tri-Med will obtain relevant hardware and enter into contracts for video remote interpreting for each ambulance licensed for emergency response. Tri-Med also agrees to notify the destination hospital if a patient needs communication assistive devices or services, so as not to delay important care. The additional communication services must be provided without any additional charge to the patient. Tri-Med will keep a log of the use of auxiliary services and how effective communication was ensured.
Tri-Med will provide training to it its ambulance personnel regarding the use of the communication services. The training will be reviewed and approved by the U.S. Attorney’s Office. For the next three years the U.S. Attorney’s Office will review any complaints related to use of auxiliary aids for patients who are deaf or hard of hearing. Each year Tri-Med will provide the U.S. Attorney’s Office with a written report regarding the use of auxiliary aids or services.
Tri-Med cooperated fully in the investigation. This settlement is not an admission of liability nor a concession that the complaint is not well founded.
The matter was resolved by Assistant United States Attorneys James Waldrop and Susan Kas.
For more information on the Civil Rights program in the Western District of Washington and on the Americans with Disabilities Act (ADA) please visit our website: https://www.justice.gov/usao-wdwa/civil-rights.
Cleveland man sentenced for drug traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Lamark Hall, Jr., of Cleveland, Ohio, was sentenced today to 46 months of incarceration for a cocaine charge, United States Attorney William Ihlenfeld announced.
Hall, also known as “Cuz,” 40, pleaded guilty in June 2022 to one count of “Distribution of Cocaine Base.” Hall admitted to selling cocaine base in June 2019 in Ohio County.
Assistant U.S. Attorney Clayton J. Reid prosecuted the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
Clay County Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Todd Jeffery Ullum, 32, of Maysel, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on September 15, 2021, a law enforcement officer encountered Ullum at the Clay-Maysel GoMart with a handgun in the back of his pants. When Ullum saw the officer, he attempted to flee in a vehicle. The officer ordered Ullum to stop and recovered the handgun, a loaded 9mm Short Hungarian pistol, as well as a loaded Remington 597 .22-caliber Magnum rifle from the vehicle.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Ullum was prohibited from possessing a firearm because of his felony conviction for grand larceny in Kanawha County Circuit Court on May 7, 2015.
Ullum is scheduled to be sentenced on April 11, 2023, and faces a maximum penalty of 10 years in prison, up to three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Clay County Sheriff’s Department.
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney R. Gregory McVey is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-36.
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Chief Technology Officer of Blockchain Company Charged with Scheme to Defraud the Company of over $1 Million and CryptocurrencyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York and Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing today of an indictment charging RIKESH THAPA with operating a scheme to defraud a start-up technology company (the “Victim Company”) of over $1 million worth of United States currency, cryptocurrency, and utility tokens. THAPA used proceeds of his crime on personal expenses, including nightclubs, travel, and clothing, and falsified records and deleted evidence to conceal his theft. RIKESH THAPA was arrested earlier today in the Southern District of California. The defendant is expected to be presented before U.S. Magistrate Judge Mitchell D. Dembin this afternoon. The case is assigned to U.S. District Judge John P. Cronan.
U.S. Attorney Damian Williams said: “Rikesh Thapa allegedly betrayed his company’s trust, as he was responsible for the safeguarding of substantial amounts of money. Thapa went to great lengths to cover up his frauds, but, thanks to the dedicated work of this Office and our law enforcement partners, he will now have to answer for his crimes.”
FBI Assistant Director in Charge Michael J. Driscoll said: “As we allege today, the defendant repeatedly stole from and defrauded the victim company - which he cofounded - in order to fund a luxurious personal lifestyle. In an attempt to hide his crimes, he also deleted and falsified records. The FBI will continue to work to ensure individuals willing to scam and steal from private businesses are held accountable in the criminal justice system."
As alleged in the Indictment unsealed today in Manhattan federal court:[1]
RIKESH THAPA co-founded and was the Chief Technology Officer (“CTO”) of the Victim Company, which during the relevant period was involved in using blockchain and other technology to provide a ticketing platform for live events. Between December 2017 and September 2019, THAPA used his position to carry out a scheme to defraud the Victim Company.
In 2018, the Victim Company sought to diversify its banking because of its understanding that certain financial institutions were reluctant to maintain relationships with companies, such as the Victim Company, involved in cryptocurrency transactions. In furtherance of that effort, THAPA agreed to receive and hold $1 million of the Victim Company’s money in his personal bank account (the “THAPA Account”) while the Victim Company explored banking options. Soon after receiving the $1 million, however, THAPA began using the funds on personal expenses. Nevertheless, THAPA repeatedly acknowledged what was supposed to be the temporary nature of his possession of the funds, representing to a colleague, in substance and in part, that the money was “a stationary 1mil in my account” that was held “for safe keeping.” THAPA then falsified records to conceal his theft, providing the Victim Company with a forged bank statement, which falsely represented that THAPA held over $21 million, approximately $1 million of which was held in a particular savings account (the “Purported Account”). In fact, THAPA did not have the Purported Account and held much less than $21 million at the relevant bank. In 2019, THAPA refused to return the $1 million, which he spent on, among other things, nightclubs, travel, and clothing.
In addition, between December 2017 and September 2019, THAPA used his control over the Victim Company’s cryptocurrency holdings to embezzle at least 10 Bitcoin from the Victim Company. For example, in August 2018, THAPA diverted at least one of the Victim Company’s Bitcoin for his own benefit, selling the Bitcoin for approximately $6,500 and depositing the proceeds into the THAPA Account (the “August 2018 Bitcoin Transaction”). To avoid detection, THAPA falsified trading records and deleted emails. In July 2019, THAPA sent the Victim Company’s CEO a fraudulent transaction report that misrepresented the August 2018 Bitcoin Transaction. After the CEO, copying THAPA, thereafter requested and received a transaction report directly from the Victim Company’s cryptocurrency brokerage, THAPA disabled the CEO’s email account at the Victim Company (the “CEO Email Account”), deleted the cryptocurrency brokerage’s email from the CEO Email Account, and then deleted the entire CEO Email Account.
In yet another facet of the scheme, THAPA stole the Victim Company’s utility tokens. Such tokens are a type of cryptocurrency that can be used to access particular services, products, or features. In July 2019, unbeknownst to the Victim Company’s CEO, THAPA set up a meeting in Italy between THAPA and individuals who claimed to be interested in purchasing the Victim Company’s utility tokens. Before the meeting, THAPA provided account information for the THAPA Account so that the purported investors could wire him funds. During the meeting, however, THAPA agreed to receive cash in exchange for utility tokens. After the meeting, THAPA transferred, without authorization, approximately 174,285 of the Victim’s utility tokens to the purported investors. THAPA later determined that the cash he had received from the purported investors was counterfeit.
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RIKESH THAPA, 28, of San Diego, California, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison.
The statutory maximum sentence is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI’s New York Field Office.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Timothy V. Capozzi is in charge of the prosecution.
The charge contained in the Indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment constitutes only allegations, and every fact described herein should be treated as an allegation.
Charlotte Woman on Federal Supervised Release Is Sentenced to Prison for COVID-19 Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – Nkhenge Shropshire, 49, of Charlotte, was sentenced today to 42 months in prison followed by three years of supervised release for submitting fraudulent loan applications to the U.S. Small Business Administration (SBA) to obtain COVID-19 relief loans, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney King is joined in making today’s announcement by Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS) which oversees Charlotte.
“At a time that businesses and communities were doing their best to survive the devastating impact of COVID-19, Shropshire was busy trying to make a quick buck and take advantage of the aid administered by the government,” said U.S. Attorney King. “There’s a price to pay by those who seek to exploit federal aid programs and that’s prison time. Together with our law enforcement partners we will continue to investigate and prosecute COVID-19 fraudulent schemes and hold perpetrators of fraud accountable for their actions.”
“In the midst of a pandemic and as the economy suffered, this defendant lined her pockets by cheating the federal aid provided by the government to assist those communities who struggled during these unprecedent times,” said Inspector in Charge Coke. “Our office will relentlessly pursue fraudsters that defraud federal programs for greed and personal gain.”
According to filed court documents and court proceedings, Shropshire conspired with others to defraud the SBA by submitting fraudulent applications for Economic Disaster Relief Loans (EIDL), available under the expanded Coronavirus Aid, Relief, and Economic Security (CARES) Act, to business owners adversely impacted by the COVID-19 pandemic. To obtain a loan under the EIDL program, business owners are required to submit certain information in support of the application, including information about the business’s gross revenues in the 12 months prior to COVID-19’s impact and the number of workers employed by the company, among other things.
According to court records, between July 2, and September 2, 2020, Shropshire and her co-conspirators submitted at least 10 fraudulent EIDL applications to the SBA. The applications and supporting documents were for fictitious businesses and contained false information regarding the total number of employees employed by each business and total gross revenues. Court records show that Shropshire and her co-conspirators attempted to obtain at least $331,072 in relief funds. The SBA accepted and paid out at least $45,000 to Shropshire and her co-conspirators as a result of the scheme. Court records reflect that Shropshire spent the fraudulent proceeds on personal expenses, including hotel stays, shopping sprees, and cars.
In 2014, Shropshire was convicted of filing false tax returns and lying on a loan application and was sentenced to 33 months in prison and five years of supervised release. Shropshire was on federal supervised release when she participated in the EIDL fraud scheme.
On May 6, 2022, Shropshire pleaded guilty to wire fraud conspiracy. She is in federal custody and will be transferred to the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King commended USPIS for their investigation of the case.
Assistant United States Attorney Matthew Warren, of the U.S. Attorney’s Office in Charlotte prosecuted the case.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Career Offender Sentenced to 20 Years in Prison for Participation in Significant Warner Robins Meth Trafficking OrganizationRead the Press Release
MACON, Ga. – A career offender with a violent criminal history who participated in a Middle Georgia drug trafficking network responsible for distributing approximately 16 kilograms of methamphetamine was sentenced to serve 20 years in federal prison resulting from an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation centered in Warner Robins, Georgia.
Reginald Lowe, 41, of Warner Robins, was sentenced to serve 240 months in prison to be followed by four years of supervised release consecutive to a sentence he is currently serving in Houston County, Georgia, for an aggravated assault conviction today after he pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on Aug. 30. U.S. District Judge Tilman E. “Tripp” Self, III handed down the sentence on Dec. 6. There is no parole in the federal system.
“Armed and violent repeat offenders threaten the safety of our region and must be held accountable,” said U.S. Attorney Peter D. Leary. “The Organized Crime Drug Enforcement Task Forces are at work in the Middle District of Georgia to identify and stop the most dangerous criminal organizations from operating in our communities.”
“This investigation deals a fatal blow to a once-thriving ‘meth’ ring,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “With the leader facing up to 40 years behind bars, the community of Warner Robins and elsewhere can rest assured that their communities are much safer today thanks to the outstanding case work by DEA and our local law enforcement partners.”
“ATF considers the Organized Crime Drug Enforcement Task Forces a critical partner in its long-term mission of removing armed gangs, criminals and narcotics traffickers from our communities,” said Assistant Special Agent in Charge Beau Kolodka, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Atlanta Field Division.
“The Warner Robins Police Department is honored to have worked in conjunction with our federal partners through the Organized Crime Drug Enforcement Task Forces which resulted in the outcome of this case,” said Chief Wayne Fisher, Warner Robins Police Department. “It is through such local, state and federal partnerships that impacts such as these can be realized. It was with great work and effort from the men and women of this task force which resulted in these arrests that will have an immeasurable impact for the good of our shared communities.”
According to documents and other evidence admitted into court, Drug Enforcement Administration (DEA) agents and Warner Robins Police Department officers investigated co-defendant Ontarrio Veal’s aka Torrie, 32, of Warner Robins, drug trafficking organization based out of Warner Robins from Jan. to June 2020. Law enforcement obtained court orders to intercept the phone calls and text messages from Veal’s and co-defendant Tamara Hall’s cell phones. Agents learned that Veal was a multi-kilogram methamphetamine dealer and surveilled Veal and various co-defendants, including Lowe, conducting methamphetamine transactions and traveling to Atlanta to purchase large quantities of methamphetamine.
Veal was taken into custody on June 1 on a return trip from Atlanta in possession of three kilograms of methamphetamine and a Glock .40 caliber semi-automatic pistol with a 50-round drum magazine. Agents executed search warrants at various locations in Middle Georgia, seizing multiple firearms and ammunition, methamphetamine and more than $100,000 cash. The organization is responsible for distributing more than 16 kilograms of methamphetamine.
Lowe is a career offender with a lengthy criminal history to include a prior conviction for aggravated assault in Houston County, Georgia, Superior Court.
Veal pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on Nov. 15 and faces a maximum term of 40 years in prison to be followed by at least four years of supervised release and a $5,000,000 fine. Sentencing is scheduled for March 7, 2023.
Seven additional co-defendants have pleaded guilty and/or been sentenced in this case:
Matthew Kay, 35, of Warner Robins, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on Sept. 6.
Donna Ussery, 31, of Warner Robins, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on April 19 and was sentenced to serve 100 months in prison on Oct. 4;
Marquell Gaines aka Paris, 38, of Warner Robins, pleaded guilty to use of a communication facility to conspire to possess with intent to distribute methamphetamine and was sentenced to serve 48 months in prison on Oct. 11;
Tamara Hall, 39, of Warner Robins, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on April 19. Sentencing is scheduled for Jan. 10, 2023;
Milton Simmons aka Mann, 40, of Macon, pleaded guilty to possession with intent to distribute methamphetamine on Aug. 1. Sentencing is scheduled for Jan. 10.;
Parsa Ervin, 45, of Warner Robins, pleaded guilty to two counts of use of a communication facility to conspire to possess with intent to distribute methamphetamine on Aug. 30. Sentencing is scheduled for Jan. 10; and
Eddie Linkhorn, 42, of Warner Robins, pleaded guilty to two counts of use of a communication facility to conspire to possess with intent to distribute methamphetamine. Sentencing is scheduled for Jan. 10.
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.
This case is being investigated by Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Warner Robins Police Department.
Assistant U.S. Attorney Will Keyes is prosecuting the case.
California Man Charged with Eleven Financial Crimes Related to Former Wisconsin Law FirmRead the Press Release
United States Attorney Gregory J. Haanstad announced that on December 6, 2022, Matthew Browndorf (age: 52) was charged with eleven financial crimes associated with the Wisconsin law firm formerly known as BP Peterman.
According to the indictment, Browndorf owned and operated a holding company named Plutos Sama, LLC (“Plutos Sama”). Through Plutos Sama, Browndorf owned subsidiary law firms across the United States, including BP Peterman, which was based in Brookfield, Wisconsin.
Browndorf, as Plutos Sama’s CEO, was responsible for ensuring that Plutos Sama and BP Peterman appropriately collected and remitted payroll taxes, filed the appropriate payroll tax forms with the Internal Revenue Service (“IRS”), remitted funds associated with their employee pension benefit plan, and remitted funds associated with their health care benefit program. The indictment alleges that Browndorf unlawfully failed to fulfill these obligations, in violation of Title 26, United States Code, Section 7202, and Title 18, United States Code, Sections 664 and 669.
Browndorf is currently facing a separate federal prosecution in the District of Maryland.
This matter was investigated by the Internal Revenue Service and U.S. Department of Labor, Employee Benefits Security Administration. It is being prosecuted by Assistant United States Attorney Kevin Knight.
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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Berkeley County man admits to role in “boot” distribution operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Anthony Joseph Shants, Jr., of Martinsburg, West Virginia, has admitted to his role in a drug conspiracy, United States Attorney William Ihlenfeld announced.
Shants, also known as “Lul Draco,” 24, pleaded guilty today to one count of “Distribution of Eutylone” and one count of “Possessing a Firearm in Furtherance of a Drug Trafficking Crime.” Shants admitted to selling Eutylone, also known as “boot,” and having a firearm during the crime in Berkeley County, in April 2021.
Shants faces up to 20 years in prison and a fine of up to $1 million for the drug charge and he faces at least five and up life in prison and a fine of up to $250,000. 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 prosecuted the case on behalf of the government. The FBI; the Bureau of Alcohol, Tobacco, Firearms & Explosives; the Eastern Panhandle Drug Task Force, a HIDTA-funded initiative; the Martinsburg Police Department; the Montgomery County, Maryland Police Department; the Virginia State Police, Montgomery County; and Maryland State Attorney’s Office investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Bentonville Man Found Guilty of Business Operations and Non-Commercial SolicitingRead the Press Release
HARRISON – A federal magistrate judge convicted a Bentonville man yesterday on one count of engaging in or soliciting business inside a national park without a permit and one count of soliciting money inside a national park without a permit.
According to court documents and evidence presented at trial, on May 7, 2022, Jeffrey Michael Johnson, age 47, of Bentonville, Arkansas, led a guided hike to an area known as the Eye of the Needle in the Indian Creek area of the Buffalo National River and accepted at least four payments of $20 for the service while in the Kyle’s Landing parking area of the park. The business operation came to light after one of the hikers with the group fell from approximately 15 feet from the path into a pool of water, prompting a search and rescue operation involving the NPS and multiple other area agencies and forty-seven individuals. The hiker was pronounced dead on scene.
Testimony and evidence presented showed that Johnson created and operated an outdoor adventure group known as Arkansas Nature Lovers and hosted a site on Meetup.com as well as regularly posting and operating on Facebook. Johnson advertised membership to his group, which included attendance at as many of his hikes as the member wished, for a $20 annual fee, payable through Paypal, check, or cash at the first event attended. Johnson admitted to Rangers that he had led multiple hikes within the Buffalo National River over an approximate seven-year period. Testimony revealed that Johnson never applied for or received a permit to engage in business within the park or to solicit money within the park. Sentencing in this matter is scheduled for March 7, 2023.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The National Park Service investigated the case.
Assistant U.S. Attorney Devon Still prosecuted the case.
Baltimore Area MS-13 Gang Members Indicted for Racketeering Conspiracy, Including Murders and Attempted MurdersRead the Press Release
Baltimore, Maryland – On November 30, 2022, a federal grand jury in Maryland returned an indictment charging four members of La Mara Salvatrucha (MS-13) with racketeering conspiracy involving murder, attempted murder, and drug trafficking. Three of the defendants are scheduled to have initial appearances beginning at 3:00 p.m. today in U.S. District Court in Baltimore. The following defendants, all from Baltimore, are charged with racketeering conspiracy:
Wilson Arturo Constanza-Galdomez, a/k/a “Humilde” and “Marco Saravia,” age 23; Edis Omar Valenzuela-Rodriguez, a/k/a “Little Felon,” age 22; Jonathan Pesquera-Puerto, a/k/a “Truney,” age 21; and
Wualter Orellana-Hernandez, a/k/a “Solotario” and “Little Diablo,” age 21.The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; Interim Chief Dennis J. Delp of the Baltimore County Police Department; Commissioner Michael Harrison of the Baltimore Police Department; Baltimore County State’s Attorney Scott Shellenberger; and Baltimore City State’s Attorney Marilyn Mosby.
According to court documents, La Mara Salvatrucha gang, also known as “MS-13”, is an international criminal organization composed primarily of immigrants or descendants of immigrants from El Salvador, with members operating in the State of Maryland, including in Baltimore City and Baltimore County, and throughout the United States. In Maryland and elsewhere, MS-13 members are organized in “cliques,” smaller groups that operate in a specific city or region. MS-13 members are required to commit acts of violence to maintain membership and discipline within the gang. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible. In Baltimore City and Baltimore County, MS-13 maintained rivalries with the 18th Street Gang, the Cruddy Boys, the Highlandtown Boys, the Surenos Gang, and the Bloods gang, among others.
Constanza-Galdomez and Pesquera-Puerto allegedly were members or associates of the Carlington Locos Salvatrucha (CALS) clique and Valenzuela-Rodriguez and Orellana-Hernandez allegedly were members of the Huntington Criminales Locos Salvatrucha (HCLS) clique. The indictment alleges that, from June 2019 through at least October 2021, the defendants participated in the racketeering activities of MS-13, including two murders, four attempted murders, drug trafficking offenses, and witness tampering.
As detailed in the indictment, on April 25, 2020, Constanza-Galdomez, Valenzuela-Rodriguez, Orellana-Hernandez and other members and associates of MS-13 conspired to assault Victim 1, whom they suspected was a rival gang member. That same day, they allegedly assaulted Victim 1 in Baltimore, by striking him with machetes multiple times. Other members and associates of MS-13 subsequently reported the assault to MS-13 leadership. On May 14, 2020, Valenzuela-Rodriquez and another MS-13 member allegedly attempted to lure Victim 2 to Patterson Park, where Constanza-Galdomez, Valenzuela-Rodriguez, and other MS-13 members and associates attempted to murder Victim 2 by stabbing him with a knife.
The indictment alleges that on May 29, 2020, the defendants lured Victim 3, whom they suspected of associating with rival gang members, to a park in Cockeysville, Maryland, where they stabbed her multiple times, murdering her. Another MS-13 member served as a look-out to make sure they were not arrested by law enforcement while they murdered Victim 3.
On June 5, 2020, Constanza-Galdomez, Valenzuela-Rodriguez, Orellana-Hernandez, and other MS-13 members and associates allegedly lured Victim 4, whom they suspected was a rival gang member that cooperated with law enforcement, to an area near the CSX Bayview Yard in Baltimore, where they murdered her. As detailed in the indictment, Victim 4 was stabbed numerous times with sharp objects. After the murder, members and associates of MS-13 reported the murder to MS-13 leadership in an effort to get credit for participating and to increase their status within MS-13.
The indictment also details the conspiracies to commit murder and the attempted murders of two other victims. Specifically, the indictment alleges that the defendants conspired to murder Victim 5, whom they believed was a rival gang member. On June 6, Constanza-Galdomez and other MS-13 members forced Victim 5 to go to an area in Baltimore, where Victim 5 was stabbed multiple times. Similarly, in June 2020, the defendants and other MS-13 members conspired to murder Victim 6, who had been previously “greenlit” (ordered to be killed for a serious violation of MS-13 rules). On June 6, 2020, Constanza-Galdomez, Pesquera-Puerto, and other MS-13 members and associates forced Victim 6, at knifepoint, to go to Dundalk, Maryland to murder him. The defendants then attempted to murder Victim 6 by stabbing him multiple times with knives. Both Victim 5 and Victim 6 survived the attacks.
Further, the indictment alleges that from 2019 through 2020, the defendants conspired to distribute marijuana, cocaine, and fentanyl, to raise funds for MS-13 to purchase drugs and weapons for the gang and to send proceeds of the drug sale to MS-13 members and associates in Maryland and other states and in El Salvador to support the gang.
If convicted, the defendants face maximum sentences of life in federal prison for the racketeering conspiracy. A federal district court judge will determine any sentence after considering 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.
Anyone with information about MS-13 is encouraged to provide their tips to law enforcement. The FBI and Homeland Security Investigations both have nationwide tiplines that you can call to report what you know. You can reach the FBI at 1-866-STP-MS13 (1-866-787-6713), or you can call HSI at 1-866-DHS-2-ICE.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN, an evidence-based program proven to be effective at reducing violent crime, is the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Erek L. Barron and Assistant Attorney General Kenneth A. Polite, Jr. commended the FBI, HSI, the Baltimore County Police Department, the Baltimore City Police Department, and the Baltimore County and Baltimore City State’s Attorney’s Offices for their work in the investigation and thanked the United States Marshals Service for its assistance. Mr. Barron thanked Assistant U.S. Attorney Anatoly Smolkin and Trial Attorney Matthew K. Hoff of the Criminal Division’s Organized Crime and Gang Section, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Atlantic City Man Sentenced to 66 Months in Prison for Escape and Wire FraudRead the Press Release
CAMDEN, N.J. – An Atlantic City, New Jersey, man was sentenced today to 66 months in prison for escaping from federal custody and engaging in a scheme to defraud women over telephone dating services, U.S. Attorney Philip R. Sellinger announced.
Patrick Giblin, 58, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of escape from the custody of the Attorney General and one count of wire fraud. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
On July 23, 2020, Giblin escaped from the custody of the Attorney General while traveling from a federal prison in Lewisburg, Pennsylvania, to a residential living facility in Newark, where he had been directed to serve the remainder of a federal prison sentence. At the time, Giblin was serving a sentence imposed in 2017 for traveling interstate and using an interstate facility to promote unlawful activity in connection with a scheme to defraud multiple women. Giblin’s 2017 sentence followed an earlier sentence of 115 months in prison for a 2007 wire fraud conviction for a similar fraud scheme. Members of the U.S. Marshals Service located and arrested Giblin in Atlantic City on March 10, 2021.
From April 2019 through March 2021 – including during the time period when he was a fugitive – Giblin posted advertisements and messages on telephone dating services. Giblin cultivated a rapport with the women he spoke to on these services, falsely claimed that he would be relocating to the woman’s geographic area, and falsely represented that he wished to pursue a committed, romantic relationship with each woman. Giblin received money from the women he spoke to on the dating services via interstate wire services such as Western Union and MoneyGram.
In addition to the prison term, Judge Kugler sentenced Giblin to three years of supervised release and ordered him to pay restitution of $23,428.
U.S. Attorney Sellinger credited members of the U.S. Marshals Service, District of New Jersey, under the direction of U.S. Marshal Juan Matos Jr., and special agents of the FBI, Atlantic City Resident Agency, 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 Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.
Assistant U.S. Attorney Kendra Klump Selected to Serve as a Federal Magistrate Judge for the Southern District of IndianaRead the Press Release
INDIANAPOLIS –Assistant United States Attorney (AUSA) M. Kendra Klump has been selected by the District Judges of the U.S. District Court for the Southern District of Indiana to serve as a U.S. Magistrate Judge in Indianapolis.
“AUSA Klump is a phenomenal leader and dedicated public servant. Her judgment, intelligence, and compassion will serve her well on the bench,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “AUSA Klump joins a distinguished group of alumni of our office who have gone on to serve the public as federal and state judges. Although her talents will be sorely missed, the entire district will benefit greatly from her passion for public service and the rule of law.”
Klump joined the Department of Justice (DOJ) as a Criminal AUSA in the Northern District of Ohio in 2012. In 2017, Klump transferred to the Southern District of Indiana, where she continued serving as a Criminal AUSA. In February of 2022, U.S. Attorney Myers appointed Klump Chief of the Office’s Drug Trafficking Unit. During Klump’s tenure as an AUSA, she has handled a wide variety of prosecutions and trials, including complex drug trafficking and money laundering conspiracies.
Prior to joining the DOJ, Klump clerked for the Honorable Judith W. Rogers on the U.S. Court of Appeals for the D.C. Circuit Court. She graduated magna cum laude from the University of Michigan Law School. She earned undergraduate degrees in physics and mathematics from Georgetown University, where she graduated summa cum laude. Prior to law school, Klump worked as a nuclear scientist for the U.S. Nuclear Regulatory Commission and the International Atomic Energy Agency.
Armed Methamphetamine Dealer Sentenced to 15 Years in Federal PrisonRead the Press Release
INDIANAPOLIS – Patrick Doornbos, 38, of Monticello, Indiana, was sentenced to 15 years in federal prison after pleading guilty to possession with the intent to distribute methamphetamine.
According to court documents, on November 22, 2021, Doornbos was driving on Interstate 65 in Jackson County, Indiana, when he was stopped by the Indiana State Police (ISP) for multiple traffic violations. During the stop, the Trooper deployed his K9 partner, who indicated the presence of illegal drugs in the vehicle. Doornbos admitted that he was returning from Kentucky, where he had just purchased a pound and a half of methamphetamine as well as three firearms for $5,000. Law enforcement officers searched the vehicle and recovered approximately 650 grams of pure methamphetamine, two loaded semiautomatic handguns, and a revolver. In his guilty plea, Doornbos admitted he intended to distribute the methamphetamine.
At the time of his arrest, Doornbos had four prior felony convictions, including for dealing methamphetamine and illegally possessing a gun.
“Drug dealers who push these poisons into our communities act with blatant disregard for the pain caused by substance abuse disorders,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “We are under no illusion that arrests and prosecutions alone will put an end to this crisis, but we will focus our federal resources on armed and unrepentant drug traffickers as we seek to increase public safety.”
“Drug traffickers with prior felony convictions who illegally possess firearms in furtherance of their drug trafficking activities must be held accountable for their actions,” said Michael Gannon, Assistant Special Agent in Charge of Indianapolis Field Office of the Drug Enforcement Administration (DEA). “The DEA remains committed to working hand in hand with our state, local, and federal partners to keep our communities safe. We commend the outstanding work by the Indiana State Police and the United States Attorney’s Office.”
“We are grateful for our partnership with the DEA and the U.S. Attorney’s office for this investigation and the many others like it,” said Douglas G. Carter, Superintendent of the ISP. “We will work diligently to hold the people responsible for bringing drugs and guns into our communities fully accountable.”
The DEA and ISP jointly investigated this case. The sentence was imposed by Chief U.S. District Judge Tanya Walton Pratt. As part of the sentence, Judge Pratt ordered that Doornbos be supervised by the U.S. Probation Office for 5 years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Pamela S. Domash, who prosecuted this case.
Armed Felon Sentenced to 10 Years in Federal Prison After Illegally Providing Stolen Handgun Used in Indianapolis ShootingRead the Press Release
INDIANAPOLIS – Joshua Jude, 34, of Indianapolis, was sentenced to 10 years in federal prison after pleading guilty to being a felon in possession of a firearm.
According to court documents, on December 22, 2020, Indianapolis Metropolitan Police Department (IMPD) officers arrested Jude on an outstanding escape warrant. Jude was wanted for absconding from a residential reentry center, where he was completing his sentence for a prior federal conviction of unlawfully possessing a firearm. During a search of the apartment where Jude was located, officers recovered a .45 caliber handgun. On October 24, 2020, Jude’s ex-girlfriend reported the handgun stolen.
Also on October 24, 2020, a victim was shot in the shoulder at a gas station near 38th and Butler streets in Indianapolis. IMPD Detectives located two .45 caliber casings at the scene, which were recovered and subsequently determined to have been fired from the stolen handgun.
Detectives obtained surveillance video and observed Jude entering the gas station, removing a gun from his jacket, and handing it to another man, later identified as the shooter. Detectives later interviewed Jude, who admitted to providing the stolen firearm to the shooter.
At the time of his arrest, Jude had seven prior felony convictions in Indiana including intimidation, battery, criminal recklessness, a possession of a controlled substance. Each of these prior felony convictions prohibit Jude from lawfully possessing a firearm.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, Daryl S. McCormick, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Columbus Field Division, and Indianapolis Metropolitan Police Department (IMPD) Police Chief Randal Taylor made the announcement.
ATF and IMPD jointly investigated this case. The sentence was imposed by U.S. District Judge James R. Sweeney II.
U.S. Attorney Myers thanked Assistant U.S. Attorney Pamela S. Domash who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Akron Man Going to Prison for 30 Years for Production and Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. – U.S. Attorney Trini E. Ross announced today that Joshua A. Schohn, 32, of Akron, NY, who was convicted by a federal jury of two counts of production of child pornography and two counts of possession of child pornography, was sentenced to serve 30 years in prison and 20 years supervised release by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Charles M. Kruly, who handled the prosecution of the case, stated that the mother of two girls reported in March 2019, that she had recently discovered child pornography on a laptop computer belonging to her ex-boyfriend, Schohn. In addition, the complainant stated that Schohn took nude videos of her daughters, then eight and six years old (Victim 1 and Victim 2). Schohn was arrested by the New York State Police on charges of assault and possession of a sexual performance by a child.
During the course of the investigation, state and federal investigators determined that Schohn’s laptop contained more than 5,000 images and videos of child pornography. Investigators also learned that, during an October 2018 trip to a water park in Erie, Pennsylvania, Schohn had produced child pornography involving Victims 1 and 2. Schohn admitted to New York State Police Investigators that he had been collecting child pornography for five years.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, Buffalo Office, under the direction of Acting Special Agent-in-Charge Michael Stansbury, and the New York State Police, under the direction of Major Eugene Staniszewski.
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Acton Man Sentenced to Seven Years in Prison for Scheme to Defraud the Treasury Department of over $50 Million in Tax-Free Energy GrantsRead the Press Release
BOSTON – An Acton man was sentenced yesterday in federal court in Boston in connection with his role in a scheme to defraud the U.S. Treasury Department of more than $50 million in tax-free energy grants as part of the American Recovery and Reinvestment Act of 2009.
Christopher N. Condron, 50, was sentenced by U.S. District Court Judge Indira Talwani to seven years in prison and three years of supervised release. Condron was also ordered to pay $8.7 million in restitution and forfeiture. In September 2021, Condron was convicted by a federal jury of conspiracy to defraud the United States with respect to claims and three counts of wire fraud.
In August 2017, Condron was indicted for conspiring to submit fraudulent applications to the Treasury Department for energy grants available as part of the American Recovery and Reinvestment Act of 2009. The Recovery Act provided tax-free grants to individuals and businesses who put certain “specified energy property”—such as wind farms and gasification systems that convert trash into electricity—into service in a trade or business.
From May 2009 to June 2013, Condron and his co-conspirators submitted fraudulent grant applications to the Treasury Department on behalf of four different Massachusetts companies: Acton Bio Energy; Concord Nurseries; Kansas Green Energy; and Ocean Wave Energy. For each of the applications, Condron falsely claimed that the entities had acquired, placed into service, or started construction of energy property, which included three different bio-fuel gasification systems, purportedly built at a cost of approximately $88 million, and an $84 million wind farm project. Condron and his co-conspirators sought to be reimbursed for more than $50 million based on those costs—which they never actually incurred. To support their applications, Condron submitted fraudulent documentation to a Massachusetts-based attorney who, in turn, submitted the applications to the Treasury Department. Evidence at trial demonstrated that Condron vastly overstated property costs in the grant applications and as a result, defrauded the government out of more than $8.7 million. Additionally, further evidence showed that Condron attempted to obtain another $42 million in energy grants.
United States Attorney Rachael S. Rollins and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement. Special assistance was provided by the U.S. Department of Treasury, Office of Inspector General, Office of Investigations. Assistant U.S. Attorneys Neil J. Gallagher, Jr. and Elysa Q. Wan of Rollins’ Public Corruption & Special Prosecutions Unit prosecuted the case.
Active Russian Agent Andrii Derkach Indicted for Scheme to Violate Sanctions in the United StatesRead the Press Release
A seven-count indictment was unsealed today in federal court in Brooklyn charging Andrii Derkach, 55, of Ukraine, with conspiracy to violate the International Emergency Economic Powers Acts (IEEPA), bank fraud conspiracy, money laundering conspiracy, and four counts of money laundering in connection with the purchase and maintenance of two condominiums in Beverly Hills, California. Derkach allegedly concealed his interest in the transactions and violated sanctions imposed in 2020. Derkach remains at large. The charges and forfeiture action announced today include the first use of criminal and forfeiture powers targeting the concealment of ownership by senior foreign political officials, passed as part of the National Defense Authorization Act of 2021.
“The conduct of this Kremlin asset, who was sanctioned for trying to poison our democracy, has shown he is ready, willing and capable of exploiting our banking system in order to advance his illicit goals,” said U.S. Attorney Breon Peace for the Eastern District of New York. “The U.S. will not be a safe haven where criminals, oligarchs or sanctioned entities can hide their ill-gotten gains or influence our elections. This office, together with our law enforcement partners, will use every tool available to prosecute those who evade sanctions and abuse the U.S. financial system, and we will identify, freeze and seize criminal proceeds whenever and wherever possible.”
“Kremlin-backed Ukrainian politician and oligarch, Andrii Derkach, was sanctioned for his efforts to influence the 2020 U.S. Presidential election on behalf of the Russian Intelligence Services,” said Assistant Director in Charge Michael J. Driscoll of the FBI New York Field Office. “While participating in a scripted Russian disinformation campaign seeking to undermine U.S. institutions, Derkach simultaneously conspired to fraudulently benefit from a Western lifestyle for himself and his family in the United States. The FBI will continue to use all the tools at its disposal to identify Russian intelligence operations, disrupt Russian information laundering networks and bring to justice those who seek to engage in criminal conspiracies to undermine the integrity of U.S elections and evade U.S. sanctions.”
“Attempting to enjoy the safety, security and freedoms of an open society, while secretly working to undermine that very society, is a hypocrisy that runs through every sanctions charge announced by the Task Force,” said Task Force KleptoCapture Director Andrew C. Adams. “It is a particularly egregious hypocrisy in the case of Andrii Derkach – sanctioned for attempts to undermine American democracy, while corruptly seeking to benefit from its protections.”
According to the indictment filed in the Eastern District of New York, on or about Sept. 10, 2020, the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Derkach for his efforts to influence the 2020 U.S. Presidential election. According to information publicly released by OFAC, Derkach was “an active Russian agent for over a decade, maintaining close connections with the Russian Intelligence Services,” who “waged a covert influence campaign” to undermine the 2020 Presidential election. As alleged, beginning in at least 2013 and continuing after Derkach’s OFAC designation, Derkach and a co-consiprator (CC-1) devised a scheme to purchase two luxury condominiums in Beverly Hills, California, (the Subject Condominiums) while concealing Derkach’s interest in the transactions from U.S. financial institutions. The scheme utilized a U.S.-based financial services professional (the Nominee). The Nominee assisted Derkach and CC-l in setting up and managing several corporate entities designed to hide Derkach’s ownership interest in the Subject Condominiums and related financial holdings. The Nominee understood that Derkach and CC-1 would occupy one of the Subject Condominiums, and the other would be used by Derkach’s children.
At the direction of Derkach and CC-1, the Nominee established two corporate entities in California. As part of the scheme, Derkach and CC-l misrepresented details about Derkach’s identity to the Nominee. Derkach and CC-l caused the Nominee to falsely represent ownership of funds and bank accounts to U.S. financial institutions, thereby deceiving those institutions into processing transactions related to, involving and on behalf of Derkach and his blocked property.
At all times relevant to this indictment, and since the date of his OFAC designation, Derkach has been aware of and actively working to evade the OFAC sanctions placed upon him. As alleged, on or about Sept. 10, 2020, the day that OFAC designated Derkach, Derkach posted a response on Facebook, stating the “decision was drawn up on a piece of paper by several congressman of [a U.S. political party] and inspired by representatives of the State Department.”
Moreover, in the years and months preceding his designation, the defendant spent significant time in the United States, including at the Subject Condominiums. In conducting that travel to, and spending time in, the United States, Derkach was actively involved in deceiving U.S. law enforcement and border authorities even prior to his SDN designation. For example, in December 2019 and February 2020, Derkach was in the United States to meet with U.S. persons and conduct media appearances. To obtain a U.S. visa, and to ostensibly attend meetings and conferences related to human rights issues in Ukraine, Derkach retained the services of a U.S.-based consulting firm (Firm-1). The written contract purported to be between Firm-l and a Ukrainian shipping company and did not refer to Derkach, notwithstanding Derkach’s direct involvement in the provision of services that the contract purported to reflect. In or about and between July 2018 and December 2018, Derkach paid Firm-l approximately $100,000. In a July 2018 email communication with Firm-l, Derkach’s representative expressed concern that, “given the fact that my client [Derkach] is a politically exposed person, as well as the statements he made concerning Ukraine’s interference into U.S. elections and the insider information we have in our possession,” the visa application process could be potentially complicated for Derkach.
Derkach, through the Nominee, continued to conduct U.S. financial transactions in support of his real estate holdings even after Sept. 10, 2020, the day that OFAC designated the defendant Derkach and added him to the SDN List. Because Derkach and CC-l had obscured details about Derkach’s identity and involvement from relevant financial institutions, Derkach and CC-1 succeeded for a time in conducting financial transactions valued at several hundred thousands of dollars in violation of OFAC’s sanctions.
If convicted, the defendant faces a maximum of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Concurrent with today’s announcement, the U.S. Attorney’s Office for the Eastern District of New York has filed and announced a civil forfeiture suit naming the Subject Condominiums and two financial accounts as defendants in rem, seeking forfeiture of those properties on the basis of their involvement in, and status as proceeds of, criminal violations of the federal money laundering laws, the IEEPA, and federal law criminalizing the concealment of assets of senior foreign political figures.
U.S. Attorney Breon Peace for the Eastern District of New York, Task Force KleptoCapture Director Andrew C. Adams and Special Agent in Charge Michael J. Driscoll of the FBI New York Field Office made the announcement.
Assistant U.S. Attorneys Artie McConnell and Jonathan E. Algor for the Eastern District of New York are prosecuting the case, with assistance from Trial Attorney Adam Small of the National Security Division’s Counterintelligence and Export Control Section. Assistant U.S. Attorney Madeline O’Connor for the Eastern District of New York is handling the forfeiture matters. The Justice Department’s Office of International Affairs provided valuable assistance.
The investigation was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls, and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2 under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the Department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
6 December 2022
Wetzel County man sentenced for methamphetamine chargeRead the Press Release
WHEELING, WEST VIRGINIA – Franklin Keith Dotson, of New Martinsville, West Virginia, was sentenced today to 121 months of incarceration for a drug charge, United States Attorney William Ihlenfeld announced.
Dotson, 38, pleaded guilty in July 2022 to one count of “Possession with Intent to Distribute Methamphetamine.” Dotson admitted to having methamphetamine in July 2021 in Marshall County.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Marshall County Drug Task Force, a HIDTA-funded initiative; the Marshall County Sheriff’s Office; the Wetzel County Sheriff’s Office; and the Marshall County Prosecuting Attorney’s Office investigated.
U.S. District Judge John Preston Bailey presided.
West Sacramento Resident, and Former Postal Service Employee, Pleads Guilty to Theft of Mail by Postal Employee and Possession with Intent to Distribute MarijuanaRead the Press Release
SACRAMENTO, Calif. — Shabina Debbie, 54, of West Sacramento, pleaded guilty today to theft of mail by a Postal Service employee and possession with intent to distribute marijuana, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between October 2018 and February 2019, Debbie stole items from mail that had been entrusted to her in the course of her duties as a postal employee in Sacramento. One of the packages Debbie stole contained more than 3 pounds of marijuana. Debbie agreed to forfeit over $125,000 in cash found in her home during the execution of a search warrant.
This case is the product of an investigation by the U.S. Postal Service Office of Inspector General. Assistant U.S. Attorney Denise N. Yasinow is prosecuting the case.
Debbie is scheduled to be sentenced by U.S. District Judge John A. Mendez on March 14, 2023. Debbie faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
West Plains Man Convicted of Producing Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A West Plains, Mo., man was convicted by a trial jury today of the sexual exploitation of a 13-month-old child and of distributing child pornography.
Kenneth Howard Worthy, 46, was found guilty of one count of the sexual exploitation of a child by producing child pornography and one count of distributing child pornography.
Worthy’s criminal activities came to light during an investigation of another individual involved with child pornography. That individual informed investigators that Worthy had transmitted images of himself engaged in sexual acts with a child.
On March 4, 2021, law enforcement officers contacted Worthy at his residence. Worthy admitted that he had used a child victim under the age of two, identified in court documents as “John Doe,” to produce child pornography. Worthy also told investigators he sent pornographic images of the child victim to another person.
Officers seized Worthy’s cell phone. Investigators found 10 images of child pornography that depicted John Doe and Worthy.
Under federal statutes, Worthy is subject to a mandatory minimum sentence of 15 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
Following the presentation of evidence, the jury in the U.S. District Court in Springfield, Mo., deliberated for 45 minutes before returning guilty verdicts to U.S. District Judge M. Douglas Harpool, ending a trial that began Monday, Dec. 5.
This case is being prosecuted by Assistant U.S. Attorneys Cameron Beaver, James J. Kelleher and Ami Harshad Miller. It was investigated by Homeland Security Investigations, the Southwest Missouri Cyber Crimes Task Force and the West Plains, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Washington, D.C. Man Sentenced to 10 Years in Federal Prison and Ordered to Pay Restitution of More Than $20,000 to the Minor Victim He Sex Trafficked for His Prostitution BusinessRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte today sentenced Sirron Little, age 32, of Washington, D.C., to 10 years in federal prison, followed by 10 years of supervised release, for sex trafficking of a minor to engage in commercial sex acts. Little recruited the victim, a homeless 15-year-old girl, to work for him as a prostitute. Judge Messitte also ordered Little to pay restitution to the victim in the amount of $20,122.20. Upon his release from prison, Little will also be required to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Malik Aziz of the Prince George’s County Police Department.
According to his plea agreement, Little recruited the victim to work for him as a sex worker in April 2018, when she was 15 years old and homeless. The victim worked for Little, engaging in sex acts for money, until December 4, 2018. Little used his cell phone to communicate with the victim regarding the prostitution business, to post scantily clad photos of her on online dating services to solicit commercial sex clients and to advertise the victim as a prostitute, and to arrange “dates” with commercial sex clients, in Washington D.C. and in Maryland. Little initially had the victim meet clients for “car dates” or had someone drive the victim to a client’s residence. Eventually, Little moved the sex trafficking operation to motels in Prince George’s County, Maryland. In addition to meeting clients for car dates and at hotels, Little directed the victim to walk along a specific street in Maryland to solicit clients directly.
As detailed in the plea agreement, Little directed the victim where to meet the clients, what services the victim would provide, and the agreed-upon payment for the sex acts. The victim would typically see multiple clients per day, generating as much as $1,500 in a day. Little required the victim to give him all the proceeds she received and threatened to stop providing the victim with food, transportation, and shelter if she did not meet the monetary goals he set for her. Little physically assaulted the victim on multiple occasions, threatened her with a firearm on at least one occasion, and engaged in sex acts with the minor victim on multiple occasions.
On December 4, 2018, the victim called emergency services and reported that Little had threatened her with a firearm and had an open warrant and that she feared for her safety. When law enforcement responded to the hotel where the victim and Little were staying, the victim advised that she was having a fight with Little and that he was armed. Little was arrested and a loaded .40-caliber handgun was seized from the hotel room, along with a 20-round box of ammunition and two cellular phones.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state, and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.mdhumantrafficking.org/.
United States Attorney Erek L. Barron commended the FBI and the Prince George’s County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Christopher Sarma and Jennifer Wine, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/human-trafficking and https://www.justice.gov/usao-md/community-outreach.
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Vermont Sex Offender Sentenced to More Than 20 Years on Attempted Enticement and Child Pornography ConvictionsRead the Press Release
ALBANY, NEW YORK – Dennis Lavigne, age 57, of Derby, Vermont, was sentenced today to 250 months in prison for attempting to coerce and entice a minor, as well as transportation of child pornography, announced 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).
As part of his prior guilty plea, Lavigne admitted that in 2000, he pled guilty to aggravated sexual assault of a victim less than 10 years of age and was sentenced to 10 to 15 years in prison (suspended except for 90 days). He further admitted that between November 19-24, 2019, he exchanged sexually explicit text messages with someone he believed was the mother of an 11-year-old child. In these messages, Lavigne expressed a desire to engage in sexual acts with the child. On November 24, 2019, Lavigne traveled from Vermont to Albany, with the intent to engage in sexual acts with the presumed child. Lavigne was subsequently arrested and further admitted to transporting child pornography files, which law enforcement officials recovered from Lavigne’s phone. Many of the child pornography files featured the rape and sexual abuse of prepubescent minors, including infants.
United States District Judge Mae A. D’Agostino also imposed a life term of post-imprisonment supervised release and ordered Lavigne to pay restitution to the victims of the child pornography offenses.
This case was investigated by the FBI Albany’s Child Exploitation Task Force, which includes members of federal, state, and local law enforcement agencies, including the Colonie Police Department, Rotterdam Police Department, Saratoga County Sheriff’s Office, and the New York State Police. This case was prosecuted by Assistant United States Attorney Rachel L. Williams as 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), and is designed to marshal 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.
United States Attorney announces new prosecutor in MartinsburgRead the Press Release
Assistant U.S. Attorney Kyle Kane and U.S. Attorney William IhlenfeldMARTINSBURG, WEST VIRGINIA — A new federal prosecutor has been added to the team at the U.S. Attorney’s Office in Martinsburg.
United States Attorney William Ihlenfeld announced today that Kyle Kane has joined his office and will focus on the prosecution of fentanyl traffickers and federal domestic violence offenders.
“I am pleased to add Kyle to what is already a talented group of prosecutors in the Eastern Panhandle,” said U.S. Attorney Ihlenfeld. “He brings with him a great deal of experience and will hit the ground running.”
According to Ihlenfeld, Kane has been with the State’s Attorney’s Office of Frederick County, Maryland for the past seven years where he handled a high volume of felony narcotic, firearm, and gang cases, as well as homicides. Prior to becoming a prosecutor, Kane was a law clerk for Judge Theresa Adams in the Circuit Court of Frederick County. He is an honors graduate of Mount Saint Mary’s University and earned his law degree from the University of Notre Dame Law School in South Bend.
“This part of the state continues to grow at a rapid pace and with that growth comes additional criminal activity. Accordingly, I will continue to add federal resources so that we are prepared to meet the threat and keep the community safe,” said Ihlenfeld.
U.S. Attorney and Maine Attorney General Jointly Announce Cooperative Efforts to Ensure Access to Reproductive ServicesRead the Press Release
PORTLAND, Maine: U.S. Attorney Darcie N. McElwee joined Maine Attorney General Aaron Frey today to affirm their commitment to ensuring safe, unfettered access to reproductive health care services in Maine for all who seek it.
McElwee and Frey have committed to open lines of communications and, when appropriate, to share intelligence and information in order to facilitate efficient decision-making in protecting reproductive rights. They also committed resources of their respective offices to work together to conduct a series of outreach sessions with stakeholders, such as reproductive service providers and advocates, to send a clear message that law enforcement at all levels will protect reproductive rights in Maine.
“In Maine, there is a legal right to choose whether to have an abortion, and we are committed to ensuring that anyone who seeks reproductive care in Maine has unobstructed access to consultation with the medical providers and health services they choose,” said U.S. Attorney Darcie N. McElwee.
“We want it known that our offices will not allow any interference in the rights of citizens to access abortion services in Maine,” said Attorney General Aaron Frey. “Our offices will not hesitate to take every legal action to ensure the free access to reproductive health care and legal abortion services.”
U.S. Attorney McElwee emphasized that the right to safe reproductive health services in Maine extends to those who travel from states where abortion access is limited or nonexistent.
“Restricting access to safe abortions provided by caring and qualified health care providers has the greatest impact on people of color and those with limited financial resources,” McElwee said. “Millions of Americans are being deprived of the right to make personal choices that are available here in Maine. If they chose to come to Maine, we will do everything within the law to ensure they have safe access to the health care services that brought them here.”
The federal government may bring criminal charges under the Freedom of Access to Clinic Entrances (“FACE”) Act, which prohibits obstructing access to reproductive health services through violence, threats of violence, or property damage. The statute protects all patients, providers, and facilities that provide reproductive health services, including pro-life pregnancy counseling services and any other pregnancy support facility providing reproductive health care. Both the federal government and state attorneys general may file civil actions for FACE Act violations to obtain remedies not available through a criminal prosecution.
The State also has authority under the Maine Civil Rights Act to bring a civil or criminal enforcement action against individuals who intentionally interfere with a patient’s access to reproductive healthcare by obstructing access to the clinic or knowingly entering the medical safety zone around the entrance to the clinic.
Anyone with knowledge of FACE Act violations in Maine can contact the local office of the FBI at 207-541-0700.
“In collaboration with the Maine Attorney General’s Office, the U.S. Attorney’s Office for the District of Maine will continue to do everything within our legal authority to protect reproductive freedom,” McElwee said. “And we will use every tool available to keep Maine patients and health care providers safe.”
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Two Passaic County Men Appear in Court on Armed Robbery ChargesRead the Press Release
NEWARK, N.J. – Two Passaic County, New Jersey, men arrested in connection with three armed robberies committed in August 2022 made their initial appearances in Newark federal court, U.S. Attorney Philip R. Sellinger announced today.
Carlos Diaz, 30, and Edward Porter, 30, both of Paterson, are each charged by criminal complaint with one count of conspiracy to obstruct commerce by robbery and one count of using, carrying, and brandishing a firearm during and in relation to a crime of violence. Diaz and Porter appeared on Dec. 5, 2022, before U.S. Magistrate Judge José R. Almonte and were detained.
Diaz and Porter were arrested on Sept. 9, 2022, and have been in custody in Passaic County since that time; they were taken into federal custody today to face these charges.
According to documents filed in this case and statements made in court:
On the evening of Aug. 22, 2022, Diaz, Porter, and a third individual robbed a Passaic bodega of several thousand dollars while menacing customers with handguns and ordering them to lie on the ground. On the evening of Aug. 23, 2022, Diaz and Porter robbed a Passaic liquor store of several thousand dollars at gunpoint. While inside the store, Porter pistol-whipped a victim. Later that evening, Diaz and Porter committed a gunpoint robbery of a business in Paterson. While inside the store, Porter pushed one victim and wrestled with a different victim, dragging the victim to the floor while attempting to take the victim’s handbag.
The count of brandishing a firearm during a crime of violence carries a mandatory minimum sentence of seven years in prison, which must be imposed consecutive to any other sentence imposed. Conspiracy to obstruct commerce by robbery carries a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Sellinger credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Acting Special Agent in Charge Bryan Miller; the Passaic County Sheriff’s Office, under the direction of Sheriff Richard Berdnik; the Paterson Police Department, under the direction of Acting Police Chief Engelbert Ribeiro; and the Passaic Police Department, under the direction of Police Chief Luis A. Guzman, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Garrett Schuman of the General Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Two Brothers Charged in Federal Court with Robbing Armored Truck at Gunpoint on HalloweenRead the Press Release
CHICAGO — Two brothers have been charged in federal court with robbing more than $1 million from an armored truck and automated teller machine in a Chicago suburb on Halloween.
CORRIE SINGLETON, 21, and DARRELL SINGLETON, 18, both of South Holland, Ill., are charged with robbery, bank larceny by assault, and firearm offenses, according to an indictment returned in U.S. District Court in Chicago. Corrie Singleton is in law enforcement custody. His arraignment is set for Dec. 15, 2022, at 3:15 p.m., before U.S. Magistrate Judge Jeffrey Cole. An arrest warrant has been issued for Darrell Singleton. A third alleged robber – a juvenile – was arrested and charged in state court.
The charges were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and John S. Morales, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI. The Lansing, Ill., Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives provided valuable assistance. The government is represented by Assistant U.S. Attorney Simar Khera.
According to the indictment and criminal complaints filed in the case, the robbery occurred shortly after 10:45 a.m. on Oct. 31, 2022, while a Brink’s security courier was refilling an ATM at a bank in the 16700 block of Torrence Avenue in Lansing. Robbers brandished handguns and stole a gun and a bag of money from the courier, as well as cash from the ATM, the charges allege. They then forcibly dragged the courier into the armored truck and ordered her to open inner compartments and hand over bags of money, the charges allege. The robbers stole approximately $121,824 from the courier and ATM, and approximately $904,132 from the armored truck.
After the heist, the robbers fled in a vehicle, with law enforcement in pursuit. The robbers’ vehicle crashed into another car near a ramp to Interstate 80 and the robbers fled on foot. Corrie Singleton and the juvenile were arrested, and much of the stolen money was recovered from their vehicle, the charges state.
The public is reminded that an indictment is not evidence of guilt. Defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The charges in the indictment are punishable by a mandatory minimum sentence of seven years in federal prison and a maximum of 45 years. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
If you have information as to the current whereabouts of Darrell Singleton, you are encouraged to contact the FBI Chicago Field Office at (312) 421-6700 or https://tips.fbi.gov.
Tillamook County Man Sentenced to Federal Prison for Unlawfully Transporting Explosive MaterialsRead the Press Release
PORTLAND, Ore.—A Tillamook County, Oregon man was sentenced to federal prison today after he was found driving a stolen vehicle while possessing explosive materials housed in a metal bottle.
Robert David Larsen, 36, was sentenced to 15 months in federal prison and three years’ supervised release.
According to court documents, on April 27, 2021, officers from the Cornelius Police Department pulled Larsen over while he was driving a stolen vehicle. Officers searched the vehicle and found suspected explosive materials and several catalytic converters in the trunk. The explosive material was constructed out of an 8-inch metal bottle filled with a smokeless, explosive powder. The bottle had a detonation cord inserted through a drilled hole in the bottle’s cap.
On June 1, 2021, a federal grand jury in Portland returned a three-count indictment charging Larsen with possessing an unregistered destructive device, unlawfully transporting explosive materials, and possessing explosive materials as a convicted felon.
On May 23, 2022, Larsen pleaded guilty to unlawfully transporting explosive materials.
Larsen was in state custody from April 2021 until July 2022, when he was transferred to federal custody. His 15-month federal sentence will run consecutive to the time Larsen served in state custody.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Cornelius Police Department. It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Three Time Convicted Felon Going to Prison for Possessing A GunRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Ernest Green, a/k/a Fire, 40, of Buffalo, NY, who was convicted following a jury trial of being a felon in possession of a firearm, was sentenced to serve 120 months in prison by U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorneys Michael J. Adler and Timothy C. Lynch, who handled the prosecution of the case, stated that on July 26, 2020, Green was seen on video running in an easterly direction away from the Towne Gardens Housing Complex. This was shortly after a shooting incident occurred in the Housing Complex during which a vehicle crashed into a tree in the middle of the courtyard. The firearm Green possessed was found five blocks east of where the shooting occurred. In November 2004, Green was convicted of a felony in Erie County Court. In October 2010, Green was convicted of a felony in New York State Court. As a result of those convictions, he is legally prohibited from possessing a firearm.
The sentencing is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Michael Stansbury, and the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia.
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Three Individuals Plead Guilty to Bribery SchemeRead the Press Release
A Virginia couple and Missouri man pleaded guilty to conspiring to bribe a public official.
Susan May Keim, 54, and Russell John Keim Sr., 60, both of Hopewell, Virginia, pleaded guilty on Nov. 28 for their participation in a conspiracy relating to bribes of public officials. Rodney Gale Wilson, 67, of Imperial, Missouri, pleaded guilty today to the same charges.
According to court documents, Susan Keim and her husband Russell Keim accepted bribes from Wilson in return for Susan Keim’s award of purchase orders to Wilson’s company to sell parts and materials to U.S. Army Garrison Fort Lee (Fort Lee). Susan Keim worked for Skookum Educational Services (Skookum), a company that contracted with the federal government to provide maintenance and supply services at Fort Lee. Wilson was the owner of C&L Supply, a company formed for the sole purpose of selling supplies to Skookum for use at Fort Lee. From 2013 to 2018, in return for the award of the subcontracts worth over $900,000, Wilson provided checks and cash payments to Susan and Russell Keim disguised as compensation to Russell Keim for work performed for C&L Supply and payments for work done on a property owned by the Keims.
Susan Keim, Russell Keim, and Wilson each pleaded guilty to conspiracy to offer bribes to a public official and to accept bribes as a public official. The Keims are scheduled to be sentenced on April 13, 2023, and Wilson is scheduled to be sentenced on April 18, 2023. They each face a maximum penalty of five years in prison.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Jessica D. Aber for the Eastern District of Virginia; Special Agent in Charge Stanley M. Meador of the FBI Richmond Field Office; Special Agent in Charge L. Scott Moreland of the U.S. Army Criminal Investigation Division’s (CID) Major Procurement Fraud Field Office (MPFFO); and Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office made the announcement.
The FBI Richmond Field Office, Army CID’s MPFFO, and DCIS Mid-Atlantic Field Office are investigating the case.
Trial Attorney Lauren Britsch Slater of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Michael C. Moore for the Eastern District of Virginia are prosecuting the case. Former Trial Attorney Rebecca M. Schuman of the Criminal Division’s Public Integrity Section also prosecuted the case.
Three Gang Members Convicted of Firearm Offenses and CarjackingRead the Press Release
RALEIGH, N.C. – Last week, three defendants from Wilson, Johnston, and Pitt Counties were convicted of firearms and carjacking charges. Kenneth “Smoke” Piper and Eric Cruz Pineda pleaded guilty last week to Carjacking and Brandishing a Firearm during a Crime of Violence. On Friday, a federal jury convicted Allen “Slim” Martin Smith of Possession of a Firearm by a Convicted Felon. All three are validated Gangsters Disciples members.
"Two of these defendants, Piper and Pineda, brazenly stole a car and kidnapped victims up with a sawed-off shotgun,” said U.S. Attorney Michael Easley. “Later, Piper and Smith led police on a high-speed chase across three counties. Thanks to local law enforcement’s coordinated efforts, all three will face serious federal sentences. The public is safer with these violent gang members behind bars.”
According to court records, on December 11, 2020, Piper and Pineda carjacked and kidnapped two male subjects in Wilson, North Carolina, over a drug debt. Piper and Pineda each brandished shotguns during the carjacking and assaulted both victims. Additionally, both Piper and Pineda forced the victims to strip down to ensure that neither had stolen drugs from the pair. Finally, Piper and Pineda forced both victims back into one of the victim’s cars and began driving them to an unknown location when a Wilson Police officer observed the group driving in downtown Wilson. Observing the two victims in the vehicle without any clothes, the police officer initiated a traffic stop on the vehicle. Pineda was driving the vehicle and Piper was seated in the backseat with a sawed-off shotgun pointed at one of the victims. Additional Wilson Police officers arrived on scene and arrested both Pineda and Piper. At the time, Pineda was on state parole. A search of the vehicle revealed the victims’ wallets, clothing, and belongings in the trunk of the vehicle with Pineda’s shotgun.
According to court records and evidence presented at the trial, on the morning of February 21, 2022, deputies with the Wilson and Johnston County Sheriff’s Offices were conducting active surveillance on Piper and Smith, two wanted fugitives, in Micro, North Carolina. Piper was out on bond for the carjacking charges when an arrest warrant was issued for drug charges stemming from a separate incident on February 14, 2021. Smith was on parole but had removed his ankle monitor. Officers observed the pair enter a vehicle and drive away from a trailer park. As officers attempted to conduct a traffic stop, the pair sped off and took law enforcement on a high-speed chase across three counties before crashing in La Grange, North Carolina. Piper and Smith then fled the vehicle and dropped a Hi Point .9mm pistol. The firearm was recovered by the Lenoir County K9 officers.
Following the manhunt for Smith and Piper, Kinston Police found Smith and arrested him. After Smith was arrested, he waived his Miranda Rights and admitted to law enforcement that he had fled from police with Piper and that there was a gun in the car. A short time later, the Wilson County Sheriff’s Office received anonymously a Snapchat video that Smith had recorded of himself and Piper inside the car during the high-speed chase. In the video, Smith and Piper are seen pointing the gun at the camera, with Smith saying, “No, no, no - you can’t catch me - I’m the Gingerbread man.” Piper was arrested the next day.
Smith faces a statutory maximum of 10 years in prison when sentenced. Piper and Pineda face minimum sentences of 7 years and maximum sentences of life imprisonment. All three are scheduled to be sentenced in March of next year.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge James C. Dever III accepted the verdict and pleas. The Wilson and Kinston Police Departments, The Wilson, Johnston and Lenoir County Sheriff’s Offices, and The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the cases and Assistant U.S. Attorneys Aakash Singh and Leonard Champaign prosecuted the cases.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.5:21-cr-00106-D.
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Three Former St. Louis Aldermen Sentenced to Prison for CorruptionRead the Press Release
ST. LOUIS – U.S. District Court Judge Stephen R. Clark on Tuesday sentenced the former president of the St. Louis Board of Alderman and two other former aldermen to prison for accepting multiple bribes to misuse their official positions. One alderman was also sentenced for committing insurance fraud in a separate case.
Judge Clark sentenced Lewis Reed, the former board president, to 45 months in prison on two bribery-related charges and fined him $18,500 to represent the value of the bribes and campaign contributions Reed accepted.
Former 22nd Ward Alderman Jeffrey L. Boyd, the former board vice president, was sentenced to 36 months for two bribery-related charges in one case and two counts of wire fraud in the insurance fraud case. Judge Clark fined Boyd $23,688, twice the value of the bribes Boyd accepted.
Judge Clark sentenced Former 21st Ward Alderman John Collins-Muhammad to 45 months in prison and a $19,500 fine on two bribery-related charges and one charge of honest services bribery/wire fraud.
“The victims here – the 300,000 residents of the city of St. Louis – expect their elected officials to do their jobs honestly and honorably, not line their pockets and swap official actions for cash,” said U.S. Attorney Sayler A. Fleming. “I hope this case demonstrates that investigating and prosecuting public corruption has been and will continue to be one of the priorities of the Justice Department and this office.”
The victims here – the 300,000 residents of the city of St. Louis – expect their elected officials to do their jobs honestly and honorably, not line their pockets and swap official actions for cash. – U.S. Attorney Sayler Fleming
All three former aldermen helped a businessman, identified in court documents as “John Doe,” in multiple dealings with city agencies and sponsored, supported and signed off on multiple board bills before the St. Louis Board of Aldermen. All three also lied to FBI agents until confronted with photographs and recordings of themselves accepting bribes, Assistant U.S. Attorney Hal Goldsmith wrote in a sentencing memo.
None of the former aldermen displayed any concern about taking bribes, demonstrating through their actions and their statements that “it was simply business as usual,” Goldsmith wrote.
As an example, when John Collins-Muhammad introduced Doe to another public official to seek his help winning trucking contracts, Collins-Muhammad warned Doe that he needed to be prepared to pay a bribe. “If you don’t throw him something, he’ll never come back,” Collins-Muhammad said on an undercover recording quoted in the memo.
“This case presents a picture of greed, pure and simple,” Goldsmith wrote in the memo. “These Defendants sold their elected offices in exchange for cash bribes, campaign donations, and other things of value with total disregard for the best interests of their constituents, the real victims in this case.”
“Small businesses contribute significantly to the economic engine of our communities. It’s hard enough for entrepreneurs to establish and grow their companies without needing to pay bribes to elected officials. What these three City of St. Louis aldermen did to selfishly line their own pockets was a slap in the face to our community,” said Special Agent in Charge Jay Greenberg of the FBI St. Louis Division. “If anyone is aware of misconduct or corruption by public officials, please contact the U.S. Attorney or the FBI. Without your courage to come forward, corrupt officials will be able to continue to abuse their power for their own benefit, instead of serving the constituents who elected them.”
All three former aldermen pleaded guilty in August to all the charges in their May 2022 indictment.
Collins-Muhammad admitted accepting a total of $13,500 in cash, $3,000 in campaign contributions, a Volkswagen CC sedan and an Apple iPhone 11 to assist Doe obtain a multi-year property tax abatement for a building he was developing in Collins-Muhammad’s ward.
After the development sparked opposition from residents, Collins-Muhammad lied and told those residents that he would not continue to seek the tax incentives.
Collins-Muhammad also introduced Doe to other public officials, suggesting he bribe them as well. Collins-Muhammad received $3,000 for setting up the meeting with the public official about the trucking contracts. That official initially accepted a $10,000 bribe before returning the money and asking for two $5,000 checks to the official’s campaign account. The checks were never cashed or deposited and Doe never received any contracts. Collins-Muhammad then told Doe that the official wanted another $2,500 in cash, but Collins-Muhammad used the money to buy a 2008 Chevrolet Trailblazer for his own use.
Collins-Muhammad also received $1,000 from Doe for setting up a meeting with Boyd.
Reed took $6,000 in cash and $3,500 in campaign contributions to help Doe obtain Minority Business Enterprise certification and win city trucking and hauling contracts. Reed took another $9,000 total in cash to assist in the property tax abatement bid involving Collins-Muhammad.
Boyd admitted accepting a total of $9,500 from Doe for his help convincing the city’s Land Reutilization Authority to accept a lower bid from Doe for a commercial property on Geraldine Avenue in Boyd’s ward. The LRA ultimately accepted Doe’s $14,000 bid. The LRA initially listed the property as worth $50,000. Boyd then worked to get a property tax abatement for Doe.
In addition to the cash, Boyd accepted free repairs from Doe for two vehicles owned by Boyd.
In a separate case, Boyd admitted fraudulently submitting an insurance claim for three vehicles owned by Doe. A Jan. 17, 2021 accident at Doe’s used car lot damaged the vehicles, and when Doe learned that his insurance would not cover the damage, Boyd suggested falsely claiming that his company owned them.
Boyd then falsified and backdated vehicle sales records and Missouri Department of Revenue documents to claim he had paid $22,000 for the vehicles on Jan. 2. In addition to the claim for damages, Boyd also falsely attempted to claim a $200 daily storage fee for the damaged vehicles. Boyd’s insurance company ultimately rejected the claim, despite his attempt to have his insurance agent intervene.
The FBI investigated the case. Assistant U.S. Attorney Hal Goldsmith prosecuted the case.
Taylorville, Illinois, Man Sentenced to 70 Months in PrisonRead the Press Release
SPRINGFIELD, Ill. – A Taylorville, Illinois, man, William Single, 53, of the 100 block of West 2nd Street, was sentenced on December 5, 2022, to 70 months in federal prison, to be followed by seven years of supervised release, for possessing child pornography in April 2021. He was also ordered to pay $10,000.00 in restitution to one of his child pornography victims, and he must register as a sex offender.
At the sentencing hearing in front of U.S. District Judge Sue Myerscough, the government presented evidence that Single was responsible for possessing over 600 images of child pornography and traded child pornography with an individual living in New Jersey. Single and the individual in New Jersey communicated using an online messenger application.
Single was indicted in November 2021 and pleaded guilty in August 2022. He has remained in the custody of the United States Marshal since his arrest on November 9, 2021.
The statutory penalties for possessing child pornography are up to 20 years’ imprisonment, between five years and a life term of supervised release, and a $250,000.00 fine.
The Federal Bureau of Investigation’s Springfield, Illinois, and Newark, New Jersey, Field Offices investigated the case, assisted by Illinois State Police and the Taylorville Police Department. Assistant U.S. Attorney Tanner K. Jacobs represented the government in the prosecution.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
St. Louis Felon Admits Possession of Stolen SUV, AR-15Read the Press Release
ST. LOUIS – A man from St. Louis pleaded guilty to a federal gun charge Tuesday and admitted possessing a Glock handgun and a stolen AR-15-style pistol while fleeing from police in a stolen car.
Eric Davis, 31, pleaded guilty in front of U.S. District Judge John A. Ross to being a felon in possession of a firearm.
In his plea agreement, Davis admitted driving a stolen Jeep Cherokee on May 4, 2021 and possessing a handgun and an AR-15-style pistol. St. Louis Metropolitan Police Department officers initially spotted the Jeep because it had no license plate, and it then sped away from a stop sign at Minerva and Hamilton Avenues.
Officers tried to stop the Jeep in a parking lot, but Davis accelerated away recklessly and continued to flee even after officers used a spike strip. After Davis ran a red light at the intersection of Kingshighway Boulevard and Dr. Martin Luther King Drive, the Jeep collided with another vehicle, injuring that driver.
Police found a stolen American Tactical Omni Hybrid AR-style pistol on the backseat and a .357-caliber Glock 32 under the passenger seat. Both had large-capacity magazines.
Officers then discovered that Davis had several prior felony convictions and bench warrants for his arrest and confirmed that the Jeep had been stolen less than 48 hours earlier.
Davis’ sentencing is set for March 13. The charge carries a maximum penalty of 10 years in prison, a $250,000 fine or both. If Davis is determined to be an armed career criminal, he could face 15 years to life in prison.
The case was investigated by the St. Louis Metropolitan Police Department and the Missouri Department of Public Safety. Assistant U.S. Attorney Zachry Bluestone is prosecuting the case.
Springfield, Massachusetts Man Sentenced for Drug Trafficking OffenseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on December 6, 2022, David Reyes, 32, of Springfield, Massachusetts, was sentenced in United States District Court in Burlington, Vermont, to serve 43 months in prison after his guilty plea to one count of distribution of cocaine base. U.S. District Judge Christina Reiss also ordered Reyes to serve a three-year term of supervised release and to pay a $100 special assessment.
According to court records and proceedings, Reyes sold crack cocaine to a confidential informant in the Rutland area on June 10, 2021, and again on August 6, 2021. Reyes was arrested in March 2022 and has been detained since then.
U.S. Attorney Nikolas P. Kerest commended the efforts of the Vermont Drug Task Force, the Federal Bureau of Investigation, and the Rutland Police Department in the investigation and prosecution of Reyes.
Assistant U.S. Attorney Paul Van de Graaf handled the prosecution of Reyes. Mark Kaplan, Esq., represented Reyes.
Springfield Felon Indicted for Illegal Firearm, Meth TraffickingRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man was indicted by a federal grand jury today for illegally possessing a firearm and methamphetamine to distribute.
Timothy S. Brandkamp, 62, was charged in a two-count indictment returned by a federal grand jury in Springfield. Brandkamp is charged as an armed career offender due to his prior convictions for a violent felony and three serious drug offenses. He is therefore subject to a mandatory minimum sentence of 15 years in federal prison without parole if convicted.
Today’s indictment charges Brandkamp with one count of being a felon in possession of a firearm and ammunition. Brandkamp allegedly was in possession of a Taurus 9mm pistol and approximately 12 rounds of ammunition on Oct. 14 and 20, 2022. The indictment also charges Brandkamp with one count of possessing methamphetamine to distribute on those dates.
Under federal law, it is illegal for anyone who is convicted of a felony to be in possession of any firearm or ammunition. Brandkamp has a federal felony conviction for possessing methamphetamine with the intent to distribute, for which he was on supervised release at the time of the offense after serving 13 years in federal prison. Brandkamp also has two prior felony convictions for selling methamphetamine, as well as prior felony convictions for possessing methamphetamine, selling an imitation controlled substance, and assault.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Anthony M. Brown. It was investigated by the Drug Enforcement Administration and the U.S. Probation and Pretrial Services Office.
Project Safe Neighborhoods
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.
Spencer Man Sentenced to 8 Years in Federal Prison for Meth Conspiracy ChargeRead the Press Release
Kenneth Alan Block, age 35, from Spencer, Iowa, was sentenced on December 6, 2022, in federal court in Sioux City, to 8 years in federal prison.
On July 19, 2022, Block pled guilty to conspiracy to distribute methamphetamine. Evidence at the plea and sentencing hearings showed that from February 2021 through September 2021, Block and others distributed at least 2.5 kilograms of methamphetamine in the Spencer area. In addition, on September 29, 2021, Block was found with approximately 170 grams of ice methamphetamine after giving consent to search his car.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Block was sentenced to 96 months’ imprisonment and must serve a 4 year term of supervised release following imprisonment. There is no parole in the federal system. Block remains in custody of the United States Marshal until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by the Spencer, Iowa Police Department, Clay County Sheriff’s Office, Iowa Great Lakes Task Force, Iowa Division of Narcotics Enforcement, and Iowa DCI Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4020. Follow us on Twitter @USAO_NDIA.
Smith County Man Sentenced for Federal Income Tax ViolationRead the Press Release
TYLER, Texas – A Whitehouse, Texas, man has been sentenced for a federal income tax violation in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Anthony D. Klein, 48, pleaded guilty on March 30, 2022, to attempting to evade or defeat tax and was sentenced to 18 months in federal prison today by U.S. District Judge Jeremy D. Kernodle. Klein was ordered to pay restitution in the amount of $404,292 to the IRS.
According to information presented in court, for tax year 2016, Klein filed an IRS Form 1040, U.S. Individual Income Tax Return, with the Internal Revenue Service. On that form, he claimed that he had no taxable income and that he was entitled to credits in the amount of $5,836.00. In fact, he had taxable income of approximately $538,188.07 for tax year 2016. In filing the return, Klein intended to evade and defeat the payment of income tax that was due and owing to the United States.
Klein admitted that the tax loss for tax year 2016 is $194,780; for tax year 2017 is $98,431.00; for tax year 2018 is $74,191.00; and for tax year 2019 is $36,890.00, for a total tax loss of $404,292.00.
The case was investigated by the Internal Revenue Service-Criminal Investigation and prosecuted by Assistant U.S. Attorney Alan R. Jackson.
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Smith County Man Sentenced for Child Pornography ViolationsRead the Press Release
TYLER, Texas - A Lindale man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Michael James Quam, 29, pleaded guilty on July 20, 2022, to possessing or accessing child pornography and was sentenced to 87 months in federal prison today by U.S. District Judge Jeremy D. Kernodle.
According to information presented in court, on March 5, 2020, a law enforcement official, working undercover, connected to a social media sharing group. A user in the group, later identified as Quam, posted to the group a link to a “cloud storage” provider that led to a folder providing access to files that included videos containing child pornography. Quam admitted that he knew the folder included videos of child pornography when he posted the link to the group. Quam was indicted by a federal grand jury on March 17, 2022 and charged with federal violations.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the Federal Bureau of Investigation and Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Alan R. Jackson.
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