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6 December 2022
California Executive Compensation Consultant Sentenced to Prison for Committing Insider TradingRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that FRANK GLASSNER, a principal of an executive compensation consulting firm based in Novato, California (the “Consulting Firm”), was sentenced to one year and one day in prison by U.S. District Judge Lewis J. Liman. Glassner pled guilty on August 19, 2022, to one count of securities fraud in connection with his scheme to commit insider trading based on material, nonpublic information regarding the upcoming public announcement that Kadmon Holdings, Inc. (“Kadmon”) – which GLASSNER and the Consulting Firm were advising – would be acquired by Sanofi, S.A. (“Sanofi”).
U.S. Attorney Damian Williams said: “With today’s sentence, Frank Glassner must face the consequences of trading on inside information. This conviction and sentence demonstrates once again that we will continue to vigorously protect the integrity of our markets and hold accountable those who cheat by trading on inside information.”
According to the allegations in the Information, the complaint that was filed in this case, and statements made during court proceedings and filings:
Between July 2021 and September 2021, Kadmon, which, prior to its acquisition by Sanofi, was a publicly-traded biopharmaceutical company traded under the ticker symbol “KDMN” on the NASDAQ, engaged GLASSNER and the Consulting Firm to provide executive compensation consulting services related to a potential acquisition. In connection with this engagement, GLASSNER had access to material, non-public information, which he misappropriated and, in violation of the duties that he owed to Kadmon, used to trade Kadmon stock and call options between on or about August 3, 2021, and on or about August 23, 2021. On September 8, 2021, Kadmon publicly announced that it had agreed to be acquired by Sanofi for a per-share price significantly above the share price at which Kadmon was trading. That day, Kadmon’s share price increased by approximately 71%, and GLASSNER ultimately profited $368,000 on the Kadmon stock and call options he had previously purchased.
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In addition to his prison sentence, GLASSNER, 68, of Novato, California, was ordered to pay forfeiture in the amount of $368,000.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation. Mr. Williams further thanked the U.S. Securities and Exchange Commission, which brought a related civil action against GLASSNER.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Gina Castellano is in charge of the prosecution.
Bully Hard Gang Member Charged with Murder of A Minor Victim in PoughkeepsieRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, William Grady, the District Attorney for Dutchess County, and Michael J. Driscoll, the Assistant Director in Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced the filing of a superseding Indictment charging ELIJAH BERMUDEZ, a/k/a “Quiet,” with murder in aid of racketeering, the use of a firearm resulting in death, racketeering conspiracy, and illegal possession of ammunition, for the June 20, 2020, murder of a minor victim in the vicinity of Charles Street in Poughkeepsie, New York, in furtherance of BERMUDEZ’s participation in the Bully Hard Hunna Blood (“Bully Hard”) racketeering conspiracy.
U.S. Attorney Damian Williams said: Gangs like Bully Hard reward violence with promotions within the group, which often leads to tragic deaths, including the minor victim in this case. We hope this investigation and prosecution brings some measure of closure to the family of Bermudez’s alleged victim.”
Dutchess County Chief Assistant District Attorney Matthew Weishaupt said: “Our office has worked for many years with our partners in the United States Attorney’s Office for the Southern District of New York when the federal system brings an advantage in evidentiary matters, resources, or sentencing options. We will continue to work collaboratively to eradicate the scourge of ongoing violence within our communities. We remain focused on making our communities a safer place for everyone through our continued joint efforts.
We extend thanks to all the law enforcement agencies who diligently pursued this investigation and brought it to a successful outcome. We also thank the Assistant United States Attorneys who were assigned to this case for their diligent work and effort through the investigative process.”
FBI Assistant Director in Charge Michael J. Driscoll said: "As alleged, the defendant callously took the life of a minor as a member of a violent street gang. The FBI's Westchester County Safe Streets Task Force and our law enforcement partners are committed to ensuring the safety of our communities. Violent actors will be held accountable for their wanton behavior in our criminal justice system."
According to allegations in the Indictment unsealed in White Plains federal court:[1]
BERMUDEZ was a member or associate of a racketeering enterprise known as Bully Hard, a criminal organization whose members and associates engaged in, among other things, murder, robberies, narcotics trafficking, and fraud.
On June 20, 2020, BERMUDEZ murdered a minor victim in the vicinity of Charles Street in Poughkeepsie, New York, in furtherance of his membership in the Bully Hard racketeering enterprise.
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BERMUDEZ, 29, of New York, New York, is charged with one count of murder in aid of racketeering, which carries a maximum sentence of death or life in prison and a mandatory minimum sentence of life in prison; one count of racketeering conspiracy, which carries a maximum sentence of life in prison; one count of murder through the use of a firearm, which carries a maximum sentence of death or life in prison and a mandatory minimum sentence of five years in prison; and one count of being a felon in possession of ammunition, which carries a maximum sentence of 10 years in prison.
The minimum and maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI Westchester County Safe Streets Task Force, which is comprised of special agents and task force officers from the FBI, US Probation, New York State Police, New York State Department of Corrections and Community Supervision, Westchester County DAs Office, Putnam County Sheriff's Office, Rockland DAs Office and the New York City, Westchester County, Yonkers, New Rochelle, Mount Vernon, Greenburgh, White Plains, Peekskill, Ramapo, and Clarkstown Police Departments.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Courtney L. Heavey, David R. Felton, Kevin T. Sullivan, and Shiva H. Logarajah are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Arizona Man Sentenced to 5 Years in Federal Prison for Fentanyl TraffickingRead the Press Release
PORTLAND, Ore.—An Arizona man was sentenced to federal prison today after he and an accomplice were stopped traveling in a vehicle with 12,000 fentanyl pills on Highway 26 near Government Camp, Oregon.
Jeray Lashawn Jessie, 32, a former Portland resident living in Phoenix, Arizona, was sentenced to 60 months in federal prison and five years’ supervised release.
According to court documents, in March 2021, as part of a larger drug trafficking investigation being conducted by the FBI and Clackamas County Interagency Task Force (CCITF), law enforcement officers stopped a rental car traveling westbound on Highway 26 near Government Camp. Jessie and an accomplice were the sole occupants of the vehicle traveling from Arizona to Portland. Investigators searched the vehicle pursuant to a warrant and located 12,000 counterfeit oxycodone pills containing fentanyl concealed in a backpack in the vehicle’s trunk. A subsequent search of Jessie’s cell phone revealed messages related to drug trafficking.
On August 17, 2021, a federal grand jury in Portland returned an indictment charging Jessie with possessing with intent to distribute fentanyl. On August 28, 2022, he pleaded guilty.
This case was investigated by the FBI and CCITF. It was prosecuted by Peter D. Sax, Assistant U.S. Attorney for the District of Oregon.
CCITF, led by the Clackamas County Sheriff’s Office, works to disrupt and dismantle drug trafficking organizations operating in Clackamas County, and reduce illegal drugs and related crimes throughout the community. The task force is comprised of members of the Clackamas County Sheriff’s Office, Canby Police Department, Oregon State Police, HSI, and FBI.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Fentanyl is a synthetic opioid 80 to 100 times more powerful than morphine and 30 to 50 times more powerful than heroin. A 3-milligram dose of fentanyl—a few grains of the substance—is enough to kill an average adult male. The availability of illicit fentanyl in Oregon has caused a dramatic increase in overdose deaths throughout the state.
If you are in immediate danger, please call 911.
If you or someone you know suffers from addiction, please call the Lines for Life substance abuse helpline at 1-800-923-4357 or visit www.linesforlife.org. Phone support is available 24 hours a day, seven days a week. You can also text “RecoveryNow” to 839863 between 8am and 11pm Pacific Time daily.
12,000 seized counterfeit oxycodone containing fentanyl in clear bags.Administrator of Online Group Chat Dedicated to Trafficking Child Pornography Is Sentenced to 22 Years in PrisonRead the Press Release
CHARLOTTE, N.C. – The administrator of an online group chat dedicated to the trafficking of child pornography has been sentenced to 22 years in prison, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Dakota Ray Maddy, 33, of Lenoir, N.C., will also be placed under a lifetime of supervised release after he is released from prison and will be required to register as a sex offender.
Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney King in making today’s announcement.
“As the overseer of this vile group chat that existed for the sole purpose of trading videos and images depicting the sexual abuse of children, Maddy played an integral role in perpetuating the sexual exploitation of children online. I commend the FBI agents and federal prosecutors who worked together to bring this monster to justice,” said U.S. Attorney King.
According to filed documents and court proceedings, in June 2019, an FBI agent working in an undercover capacity accessed an online group chat dedicated to trading child pornography. Over the course of the investigation, the FBI identified Maddy as the group’s administrator. As the administrator, court documents show that Maddy was in charge of adding and deleting members from the group chat and required members to actively share child pornography or they would be removed. In addition to his administrative duties, Maddy shared child pornography in the group chat, and posted requests for others to send him child pornography. Forensic review of these files established that Maddy distributed a substantial amount of child pornography.
On June 14, 2022, Maddy pleaded guilty to advertising videos and images of children being sexually abused. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King commended the FBI for their investigation of the case.
Assistant U.S. Attorney Mark T. Odulio of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case is part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
23-Year-Old Charged with Assaulting a Border Patrol AgentRead the Press Release
TUCSON, Ariz. – Last week, United States Border Patrol (USBP) agents arrested Edy Eduardo Sicajan-Jochola, 23, of Guatemala, for Assault on a Federal Officer and Improper Entry by an Alien.
The complaint alleges that on November 29, 2022, the victim located two suspected undocumented individuals near Sasabe, Arizona. As the victim approached the two individuals, Sicajan-Jochola took off his backpack and swung it at the victim, striking the victim in the face and shoulder. The force of the strike caused the victim to fall to the ground. Sicajan-Jochola fled from the victim but was later apprehended and arrested. USBP agents were unable to apprehend the other individual. After an interview, agents learned Sicajan-Jochola was a non-U.S. citizen without legal permission to enter or remain in the United States.
Assault on a Federal Officer carries a maximum penalty of eight years in prison and a fine of up to $250,000, or both.
Improper Entry by an Alien carries a maximum penalty of six months in federal prison and a fine of up to $5,000, or both.
A complaint is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
Customs and Border Protection’s U.S. Border Patrol conducted the investigation in this case. Assistant U.S. Attorney Nathaniel Walters, District of Arizona, Tucson, is handling the prosecution.
CASE NUMBER: MJ-22-07848-N/A-EJM
RELEASE NUMBER: 2022-220_Sicajan-Jochola# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
5 December 2022
Vicksburg Man Sentenced to 8 Years in Federal Prison for Firearms ViolationsRead the Press Release
Jackson, Miss – A Vicksburg man was sentenced to 8 years in federal prison for making false statements to a licensed firearms dealer, putting false information on an official form, and receiving a firearm while under felony indictment, announced United States Attorney Darren LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
According to evidence presented at trial, on February 26, 2020, Cadrius Baker, 24, attempted to purchase a firearm from a Vicksburg retailer. Baker filled out and signed ATF Form 4473, an official form used for background checks for firearms sales. On the form, Baker marked that he was then not under indictment for a felony crime whereas in truth and in fact, he was under two separate felony indictments. The firearm sale was denied.
A background check revealed that approximately three years prior, in January 2017, a Warren County grand jury returned a three-count indictment against Baker and two others for conspiracy to commit a felony, aggravated assault, and armed carjacking. Following that indictment, in July 2017, Baker was again indicted by a Warren County grand jury for vehicle burglary.
After denial of the purchase in February of 2020, narcotics officers of the Vicksburg Police Department observed Baker in March of 2020 conducting drug transactions in a parking lot in Vicksburg. After a brief pursuit, Baker was stopped and was found in possession of a firearm.
Baker was charged in a federal indictment. He was tried in U.S. District Court and found guilty.
This case was investigated by the Federal Bureau of Investigation and the Vicksburg Police Department.
The case was prosecuted by Assistant United States Attorney Bert Carraway.
Vallejo Man Sentenced to 21 Years and 10 Months in Prison for Methamphetamine TraffickingRead the Press Release
SACRAMENTO, Calif. — Christopher Matthew Rougeau, 38, of Vallejo, was sentenced today to 21 years and 10 months in prison for possessing methamphetamine with intent to distribute, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on April 20, 2022, law enforcement officers found Rougeau in his car and searched him pursuant to a search warrant. They found a pistol in a holster on his hip. On the passenger seat, officers found 159 grams of methamphetamine, which was 94% pure, and a digital scale. In the backseat, officers found another pistol. Rougeau has been previously convicted in California state court of multiple firearm and drug offenses.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the Marin County Sheriff’s Office. Assistant U.S. Attorney Nicholas M. Fogg prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Troy Felon Pleads Guilty to Unlawful Possession of AmmunitionRead the Press Release
ALBANY, NEW YORK – Adam Middleton, age 40, of Troy, New York, pled guilty today to unlawfully possessing ammunition as a felon. The announcement was made by United States Attorney Carla B. Freedman and Ketty Larco-Ward, Postal Inspector in Charge of the Boston Division of the U.S. Postal Inspection Service (USPIS).
Middleton admitted that on December 7, 2021, he possessed a Glock magazine loaded with 17 rounds of 9 mm ammunition, in addition to numerous additional rounds of ammunition, at his residence in Troy. At the time, Middleton had a prior felony conviction for criminal possession of a controlled substance in the fifth degree. Under federal law, that conviction prevented Middleton from lawfully possessing the ammunition.
When Senior United States District Judge Gary L. Sharpe sentences Middleton on April 4, 2023, Middleton faces a maximum sentence of 10 years in prison and a term of post-imprisonment supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the USPIS and its Capital Region Task Force, led by the USPIS and including the Albany Police Department, the Albany County Sheriff’s Office, and the Schenectady Police Department. The U.S. Drug Enforcement Administration (DEA) and Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) also assisted in this investigation. The case is being prosecuted by Assistant U.S. Attorney Benjamin S. Clark.
Tampa Man Sentenced for Filing False Tax ReturnRead the Press Release
Tampa, Florida – U.S. District Judge Charlene E. Honeywell has sentenced Steven Brickner to 12 months and a day for filing a false U.S. Individual Income Tax Return for tax year 2017. The Court also imposed a $7,500 fine. Brickner had pleaded guilty on February 11, 2022.
According to court documents, Brickner engaged in a scheme to defraud investors in various companies that he claimed were involved in the business of marijuana cultivation and distribution. He convinced investors to invest money in a variety of different enterprises, but wound up using most of those funds for personal uses and to purchase high-end collector automobiles. In July 2021, Brickner was ordered by the United States District Court in the Middle District of Florida to disgorge to the victims of this fraud scheme over $2,420,000 as a result of a civil lawsuit filed by the U.S. Securities and Exchange Commission.
Brickner earned more than $1,055,503 in income in tax year 2017 from the above activity that he did not report on his Individual Income Tax Returns for that year. Due to his failure to file accurate tax returns for that year, Brickner caused a loss to the IRS of $172,164.39.
“Honest law-abiding citizens are fed up with the likes of those who use other people’s money as their own personal piggy bank," said IRS-CI Acting Special Agent in Charge Ronald A. Loecker. “Mr. Brickner caused lasting harm to not only those financially connected to him, but to every hard-working taxpayer who pays into our tax system. This sentencing reassures the American public that Mr. Brickner's actions will not go unpunished.”
OFR Commissioner Russell C. Weigel, III said, “Thank you to OFR’s investigative team, the IRS, and the U.S. Attorney’s Office, Middle District of Florida, for their hard work in this case. The Office of Financial Regulation will continue to work with our partners to stop financial scammers in their tracks.”
This case was investigated by the Internal Revenue Service-Criminal Investigation, with the assistance of the U.S. Securities and Exchange Commission and the Florida Office of Financial Regulation-Bureau of Financial Investigations. It was prosecuted by Assistant United States Attorney Jay L. Hoffer.
Tampa Convicted Felon Sentenced for Illegally Possessing Firearm and AmmunitionRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Rossonno Borders, Jr. (25, Tampa) to three years and one month in federal prison for possessing a firearm and ammunition as a convicted felon. Borders had pleaded guilty on July 27, 2022.
According to court records, on October 6, 2021, Borders was operating a vehicle with illegally tinted windows. Officers from the Tampa Police Department (TPD) attempted to initiate a traffic stop and Borders proceeded to flee at a high rate of speed. Borders crashed the vehicle he was driving and fled the scene of the crash on foot. When TPD officers arrived at the crash scene, they observed a loaded firearm on the center console of the vehicle. Fingerprints found on the magazine of the firearm were confirmed to belong to Borders
Borders is a previously convicted felon, including for grand theft in the third degree (2019) and being a felon in possession of firearm and ammunition and felon in possession of a firearm (2021). As a convicted felon, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Terry B. Livanos.
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.
Summerset Man Sentenced for Drug TraffickingRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Jeffrey L. Viken has sentenced a Summerset, South Dakota, man convicted of Distribution of a Controlled Substance. The sentencing took place on November 18, 2022.
Thomas Beetem, 27, was sentenced to 16 months in federal prison, followed by three years supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Beetem was indicted for Distribution of a Controlled Substance by a federal grand jury in February of 2022. He pleaded guilty on July 27, 2022.
Beetem obtained a substance containing a mixture of heroin and fentanyl, and then distributed that substance to another person in Rapid City, South Dakota.
This case was investigated by the South Dakota Division of Criminal Investigation, Drug Enforcement Administration, Meade County Sheriff’s Department, and the Pennington County Sheriff’s Department. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Beetem was immediately remanded to the custody of the U.S. Marshals Service.
Snohomish County man who had arsenal of guns and explosives and an underground bunker sentenced to 42 months in prisonRead the Press Release
Seattle – A 42-year-old Snohomish County man was sentenced Friday in U.S. District Court in Seattle to 42 months in prison for illegal possession of firearms and destructive devices, announced U.S. Attorney Nick Brown. James Wesley Bowden was arrested in November 2021, following an altercation at his property on Burn Road. Sheriff’s deputies were called to the scene when Bowden threatened another man with a gun. At the sentencing hearing, U.S. District Judge Ricardo S. Martinez, noted that Bowden’s drug addiction likely caused a substantial portion of his criminal conduct.
According to records filed in the case, when law enforcement responded to the report of the altercation, they found a room set up in the garage that was much like a laboratory with various chemicals and equipment consistent with the manufacturing of homemade explosives.
Garage labAfter they made sure the explosives were rendered safe, they discovered a removable panel in the floor of the garage that led to an underground bunker. Inside the bunker were firearms, ammunition, grenades, silencers, ballistic armor, firearms accessories, and other equipment. Two of the firearms had been modified to shoot as fully automatic machine guns.
Entrance to bunkerIn May 2022, Bowden pleaded guilty to unlawful possession of a firearm, possession of machineguns and possession of a destructive device.
Bowden was prohibited from possessing any firearms because of two prior felony convictions: Burglary (1998) and theft of a firearm (1998).
Personnel from the Snohomish County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), FBI, Washington State Patrol and the Washington National Guard all worked to mitigate the hazards present at the Burn Road residence.
The case was prosecuted by Assistant United States Attorney Cecelia Gregson.
Sioux Falls Man Sentenced to Ten Years on Drug and Firearm ChargesRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that District Judge Karen E. Schreier has sentenced a Sioux Falls, South Dakota, man convicted of Possession of a Controlled Substance with Intent to Distribute, Possession of a Firearm by a Prohibited Person, and Distribution of a Controlled Substance. The sentencing took place on November 28, 2022.
Willie Gene Murphy, Jr., 51, was sentenced to 10 years in federal prison, followed by five years of supervised release. He was also ordered to pay a $300 special assessment to the Federal Crime Victims Fund.
Murphy Jr. was indicted for an assortment of federal firearms and drug charges by a federal grand jury in February of 2022. He pleaded guilty to Possession of a Firearm by a Prohibited Person on September 1, 2022. He continued to trial on the charges of Possession of a Controlled Substance with Intent to Distribute and Distribution of a Controlled Substance, where he was found guilty on both charges by a jury on September 7, 2022.
After a source of information shared reliable information to law enforcement about Murphy Jr. selling methamphetamine, a controlled purchase of methamphetamine from Murphy Jr. was conducted. Later, a traffic stop was executed on Murphy Jr., which resulted in the seizure of almost 14 grams of 100% pure methamphetamine. His home was subsequently searched, which resulted in the seizure of an additional 124 grams of 100% pure methamphetamine, along with two pistols and an AR-15 rifle. Murphy Jr. is a convicted felon and is prohibited from owning firearms, due to a prior conviction for possession of a controlled substance.
This case was investigated by the South Dakota Department of Criminal Investigation, Sioux Falls Police Department, and the Drug Enforcement Administration. Assistant U.S. Attorney Mark Hodges prosecuted the case.
Murphy Jr. was immediately remanded to the custody of the U.S. Marshals Service.
San Jose Man Pleads Guilty to Illegally Possessing A Short-Barreled Rifle and AmmunitionRead the Press Release
SAN JOSE – Mark Dehart pleaded guilty in federal court today to possessing an unregistered short-barreled rifle and to being a felon in possession of ammunition, announced United States Attorney Stephanie M. Hinds and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Acting Special Agent in Charge Joshua E. Jackson.
In a plea agreement he entered today, Dehart, 45, of San Jose, admitted that he was a convicted felon and that on June 29, 2021, law enforcement officers engaged in a parole compliance check at his residence. The law enforcement officers found a rifle with a barrel less than 9 inches long that was privately made, unregistered, and illegal to possess. Law enforcement also found ammunition that Dehart, being a convicted felon, could not possess legally. During the search of his residence, law enforcement officers also discovered a loaded Polymer80 brand .22 caliber privately made pistol with no serial number, an AR-15 style 5.56 caliber rifle which was also privately made and bore no serial number, and four firearm silencers, also all lacking serial or registration numbers. Dehart further admitted in his plea agreement that he possessed two machinegun conversion devices commonly known as a “Glock switches” that convert Glock semi-automatic pistols into machineguns. He also admitted that he possessed at least an ounce of methamphetamine packaged in multiple individual baggies.
Dehart entered his guilty pleas before United States District Judge Edward J. Davila, who scheduled a sentencing status hearing for Dehart on February 27, 2023. Dehart remains out of custody pending his sentencing hearing.
Dehart pleaded guilty to one count of possessing an unregistered short-barreled firearm in violation of 26 U.S.C. § 5861(d), which carries a maximum statutory term of imprisonment of 10 years. He also pleaded guilty to one count of being a felon in possession of ammunition in violation of 18 U.S.C. § 922(g)(1), which also carries a 10 year maximum term of imprisonment. However, any sentence following conviction imposed by the court will occur only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Christoffer Lee is prosecuting the case, with the assistance of Lynette Dixon and Lance Libatique. The prosecution is the result of an investigation by ATF, the Department of Homeland Security - Homeland Security Investigations, the Santa Clara Police Department, and the Santa Clara County Specialized Enforcement Team.
This case follows the U.S. Department of Justice’s launch in five key regions of Cross-Jurisdictional Firearms Trafficking Strike Forces that are focused on disrupting illegal firearms trafficking. One of the five Strike Forces was launched here, in the San Francisco Greater Bay Area and Sacramento Region. The Strike Force identifies sources of illegally trafficked firearms and disrupts straw purchasing as well as firearms trafficking networks by collaborating in cross-jurisdictional efforts that include multiple federal agencies and multiple states and their local law enforcement agencies.
Rhode Island Woman Appointed to Serve as a Conservator for a Disabled Veteran Sentenced to Jail for Stealing the Veteran's Federal BenefitsRead the Press Release
BOSTON – A Rhode Island woman, formerly of North Easton, Mass. was sentenced on Dec. 2, 2022, in federal court in Boston for stealing approximately $74,000 in Veteran Affairs (VA) and Office of Personnel Management (OPM) benefits from a veteran she was supposed to be protecting.
Lisa Heino, 55, of Newport, R.I., was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to two months in prison followed by three years of supervised release, with the first 10 months to be served in home confinement. Heino was also ordered to pay restitution of $74,045. On Aug. 2, 2022, Heino pleaded guilty to two counts of theft of public funds.
In May 2014, Heino was appointed by the Massachusetts state court to serve as the conservator for the victim who was a disabled veteran and retired federal employee. Later, in October 2014, Heino became the OPM representative payee for the victim as well. As a court appointed conservator and representative payee, Heino had access to the federal VA and OPM monthly benefit payments that were directly deposited into the victim’s bank account. In this capacity, Heino transferred federal VA and OPM benefit payments from the victim’s bank account to her own bank account and used the funds for her own expenses. Specifically, from in or about June 2017 through August 2018, Heino stole or converted approximately $44,191 in VA funds she was not entitled to for her own use. Additionally, from in or about January 2017 through January 2019, Heino stole or converted approximately $29,853 in OPM funds she was not entitled to for her own use.
After Heino was removed as conservator in 2017 and representative payee in 2019, she continued to access the victim’s bank account and federal benefits. When interviewed by authorities, Heino admitted to withdrawing the benefit payments from the victim’s bank account and depositing the funds into her own account for her personal use while serving as conservator and representative payee.
United States Attorney Rachael S. Rollins; Christopher Algieri, Special Agent in Charge of the U.S. Department of Veterans Affairs Office of Inspector General, Northeast Field Office; and Scott A. Rezendes, Special Agent in Charge of the Office of Personnel Management made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Rollins’ Major Crimes Unit prosecuted the case.
Rock Springs Men Sentenced in Pipe Bomb CaseRead the Press Release
Acting United States Attorney Nicholas Vassallo announced today that SPENCER DALE COTTRELL, age 51, BRYAN ROLAND FOSTER, age 39, and GAGE MERCER, age 31, all from Rock Springs, Wyoming, have been sentenced by United States District Court Judge Alan B. Johnson for crimes related to improvised pipe bombs. Cottrell was also sentenced for distribution of methamphetamine.
According to court records, on February 14, 2021, the Rock Springs Police Department attempted to stop Cottrell for a traffic violation. After police activated their lights, Cottrell attempted to flee but crashed his truck into a snowbank. A subsequent search of Cottrell’s truck revealed an improvised pipe bomb. Further investigation revealed that Cottrell’s cousin, Bryan Foster, made four pipe bombs for Cottrell. The Rock Springs Police Department and Federal Bureau of Investigation searched Foster’s residence and recovered a second pipe bomb. The remaining two pipe bombs were recovered at the residence of Gage Mercer, who had taken the bombs from Cottrell’s residence just after Cottrell’s arrest on February 14.
In May of 2021, Foster was indicted for the unlawful making of a pipe bomb and unlawful possession of pipe bombs, which are destructive devices under federal law. In separate indictments, Cottrell and Mercer were charged with unlawful possession of pipe bombs, and Cottrell was charged with distribution of methamphetamine based on three controlled buys of the drug in early 2020.
Mercer pled guilty to unlawful possession of pipe bombs and was sentenced by Judge Johnson on February 18, 2022, to 35 months in prison with three years of supervised release to follow. Mercer was also ordered to pay a $500 fine and $100 special assessment.
Cottrell pled guilty to unlawful possession of a pipe bomb and distribution of methamphetamine and was sentenced by Judge Johnson on July 7, 2022, to a total of 121 months in prison with four years of supervised release to follow. Cottrell was also ordered to pay $500 in community restitution and a $200 special assessment.
Foster pled guilty to unlawful making of a pipe bomb and was sentenced by Judge Johnson on October 18, 2022, to 36 months in prison with three years of supervised release to follow. Foster was also ordered to pay a $100 special assessment.
“Through the cooperative efforts of local, state and federal law enforcement, these destructive devices were secured before the defendants could cause serious harm,” said Acting United States Attorney Nick Vassallo. “These defendants demonstrated a disregard for life and safety, and their sentences reflect the seriousness of their criminal conduct.”
“Sometimes the most effective response to stop those plotting violence is a team approach -- for the FBI and the U.S. Attorney’s Office, alongside state and local law enforcement, to come together and leverage our investigative and prosecutorial methods,” said Acting Special Agent in Charge Matthew Fodor. “We are always available, ready and willing to assist our local law enforcement partners and bring to bear FBI resources to get bad actors off the streets.”
"It is important to recognize that this case began as a traffic stop. This officer's ability to quickly recognize the threat is commendable. The work that our staff completed following that traffic stop embodies the commitment we have to a safer community. We appreciate our federal partners, and the resources they were able to provide during this investigation. The professionalism of all involved is reflected in the successful outcome," said Interim Rock Springs Police Chief Bill Erspamer.
These crimes were investigated by the Rock Springs Police Department and the Federal Bureau of Investigation with assistance from Sweetwater County Joint EOD Team and the Wyoming Division of Criminal Investigation. The case was prosecuted by Assistant United States Attorney Timothy J. Forwood.Queens Resident Sentenced to Prison for Helping to Sell U.S. Savings Bonds Stolen from Elderly WomanRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that GLEN CAMPBELL, also known as “Nick,” 41, a citizen of Guyana residing in Queens, New York, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 12 months and one day of imprisonment for helping to sell U.S. Savings Bonds that had been stolen from an elderly woman who had purchased the bonds for her grandchildren and other family members.
According to court documents and statements made in court, Jhanannie Singh, also known as “Jasmine” and “Sharmala Persaud,” stole hundreds of thousands of dollars in U.S. Savings Bonds from an elderly woman for whom she provided home health services. The victim had purchased the bonds for her grandchildren and other relatives. After the victim died, Singh contacted Campbell who enlisted the help of another individual to redeem the stolen bonds at a financial institution and provide Singh and Campbell with a portion of the proceeds. Between October 2020 and January 2021, as part of an undercover investigation, law enforcement coordinated the purchase of more than 100 savings bonds, with face values ranging from $50 to $1,000, from Singh and Campbell. Campbell traveled to Connecticut to complete the transactions.
Singh and Campbell were arrested on January 29, 2021. At the time of the arrests, the value of the bonds they had delivered during the undercover investigation was $287,312.39.
On June 15, 2022, Campbell pleaded guilty to one count of conspiracy.
Singh, also a citizen of Guyana, pleaded guilty to the same charge and, on November 28, 2022, was sentenced to 57 months of imprisonment.
Singh and Campbell face immigration proceedings when they complete their prison terms.
This matter was investigated by the Federal Bureau of Investigation and the Drug Enforcement Administration. The case was prosecuted by Assistant U.S. Attorneys Tara E. Levens, Michael S. McGarry and Robert S. Ruff.
The Justice Department has established a National Elder Fraud Hotline to provide services to seniors who may be victims of financial fraud. The Hotline is staffed by experienced case managers who can provide personalized support to callers. Case managers assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll-free number is 833-FRAUD-11 (833-372-8311).
Punta Gorda Man Rides Bicycle Approximately 3 Hours to Meet Child for SexRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the arrest and filing of a criminal complaint charging Dylan Joseph Thibodeau (23, Punta Gorda) with enticement of a minor and transfer of obscene material to a minor. If convicted on all counts, Thibodeau faces a minimum mandatory penalty of 10 years, up to life, in federal prison. Thibodeau made his initial appearance before U.S. Magistrate Judge Julie S. Sneed today and was ordered detained pending trial.
According to the complaint and court proceedings, in August 2022, Thibodeau began texting with an individual he believed to be a 14-year-old child. The child was actually an undercover officer. Over the course of three and a half months, Thibodeau made plans to engage in oral and anal sex and impregnate the child before she turned 18 years old. Thibodeau also requested that the child produce nude images of herself to send him and he sent the purported child sexually explicit photos of himself.
On December 3, 2022, Thibodeau rode his bicycle approximately three hours from Punta Gorda to North Port to meet the 14-year-old for sex. Law enforcement apprehended Thibodeau when he arrived at the predetermined location.
A complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the North Port Police Department and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Abigail K. King.
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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Puerto Rico Man Sentenced to Ten Years’ Imprisonment as Member of Maritime Cocaine-Trafficking ConspiracyRead the Press Release
Gregory J. Haanstad, U.S. Attorney for the Eastern District of Wisconsin, announced that on December 2, 2022, Jose Crespo-Lorenzo, a/k/a “El Colombiano” (age: 60) of Aguadilla, Puerto Rico, was sentenced to ten years in federal prison, followed by four years of supervised release, for conspiracy to possess with intent to distribute five kilograms or more of cocaine on board a vessel subject to the jurisdiction of the United States, in violation of Title 46, United States Code, Section 70506(b).
According to court documents, beginning around October 2019, Crespo-Lorenzo and others sought to coordinate the maritime shipment of bulk quantities of cocaine from the Dominican Republic to Puerto Rico. Crespo-Lorenzo, who was in the Dominican Republic at the time, and his Dominican-based associates planned to release a cocaine-laden vessel near Miches, Dominican Republic. The vessel would meet a maritime crew sent by David Quinones-Quinones, a Puerto Rican-based cocaine trafficker, at agreed coordinates, which corresponded to a location approximately seven miles southwest of the Desecheo National Wildlife Refuge. At the designated meet location, Crespo-Lorenzo’s crew planned an at-sea transfer of 100 kilograms (approximately 220 pounds) of cocaine with Quinones-Quinones’s crew. Quinones-Quinones would supply other Puerto Rican-based traffickers who were responsible for sending kilogram-quantities of cocaine to various locations in the continental United States, including Milwaukee, Wisconsin.
Court records indicate that on November 16, 2019, Crespo-Lorenzo and his Dominican-based associates released a cocaine-laden vessel from a location near Miches with the expectation that it would meet Quinones-Quinones’s maritime crew to conduct an at-sea transfer at the agreed coordinates. Yet, in the early-morning hours of November 17, 2019, Crespo-Lorenzo’s maritime crew spotted what they suspected was a Coast Guard patrol and dumped the cocaine load into the water.
Although Crespo-Lorenzo and Quinones-Quinones agreed to arrange a subsequent maritime cocaine load, the plan did not come to fruition as Quinones-Quinones was arrested in January 2020 in relation to the investigation underlying this prosecution, and he currently is serving a 130-month sentence in federal prison
According to United States Attorney Haanstad: “This case demonstrates an extraordinary effort by federal, state, and local law enforcement to hold accountable those involved in international drug-trafficking activity designed to flood the streets of the United States and other parts of the world with harmful controlled substances.”
“The sentence imposed reflects the commitment of the DEA, alongside our local and federal law enforcement and prosecution partners, to hold accountable external actors seeking to inflict harm upon our communities through the trafficking of illicit, deadly drugs,” said John G. McGarry, Assistant Special Agent in Charge of the Drug Enforcement Administration-Milwaukee District Office.
“Complex, collaborative investigations that dismantle large-scale drug trafficking operations help stem the supply of illegal drugs into Wisconsin communities,” said Wisconsin Attorney General Josh Kaul. “Thank you to the many law enforcement officers, including Wisconsin DOJ Division of Criminal Investigation agents, who worked on this significant investigation.”
This prosecution is the product of a multi-year investigation into international drug-trafficking activity, including maritime shipments of bulk quantities of cocaine ultimately intended to reach various locations within the continental United States (such as Milwaukee, Wisconsin) or elsewhere. The investigation was led by law enforcement agents and officers from the Drug Enforcement Administration (DEA), the North Central High Intensity Drug Trafficking Area (HIDTA), the Wisconsin Department of Justice, Division of Criminal Investigations, Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Postal Inspection Service, and the Milwaukee Police Department. Assistant United States Attorney Robert J. Brady, Jr. and Assistant United States Attorney Gail Hoffman prosecuted the case.
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Providence Man Sentenced for Distributing Meth PillsRead the Press Release
PROVIDENCE, R.I. – A Providence man who, on multiple occasions, while under surveillance by members of the Rhode Island DEA Drug Task Force, sold pills containing methamphetamine, was sentenced today to three years in federal prison, announced United States Attorney Zachary A. Cunha.
Jamont Patrick, 30, arrested in November 2021, pleaded guilty in November to a charge of knowingly and intentionally distributing and possessing with intent to distribute pills containing a methamphetamine mixture.
According to court documents, during a six-week span, while under surveillance by DEA agents, Patrick sold over a pound of meth pills to a law enforcement confidential informant. The pills were quickly seized by DEA agents.
On November 10, 2021, members of the task force conducted a court-authorized search of Patrick’s residence and seized approximately 189 grams of pills containing methamphetamine, two scales, and other items used in the distribution of narcotics.
At sentencing today, U.S. District Court Judge William E. Smith sentenced Patrick to thirty-six months of incarceration, to be followed by three years of federal supervised release.
The case was prosecuted by Assistant U.S. Attorney G. Michael Seaman.
The Rhode Island DEA Drug Task Force is comprised of personnel from the DEA; Rhode Island State Police; the East Providence, Cranston, Coventry, Newport, North Kingstown, Pawtucket, Providence, South Kingstown, Warwick, West Warwick, and Woonsocket and Amtrak Police Departments; and Rhode Island Attorney General’s Office Bureau of Criminal Identification and Investigation.
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Previously Convicted Felon Sentenced to 56 Months in Federal Prison for Illegal Possession of a FirearmRead the Press Release
EVANSVILLE – Jose Martiez Crosby, 22, of Evansville, Indiana, was sentenced to 56 months in federal prison after pleading guilty to illegal possession of a firearm by a previously convicted felon.
According to court documents, on June 25, 2021, while at a firing range in Evansville, Crosby was captured on security camera video firing a Springfield, Model XD, .45 caliber pistol, which he owned.
Crosby had previously been convicted of felony theft of a firearm and felony maintaining a common nuisance in the Vanderburgh County Circuit Court under cause number 82C01-2002-F6-01181 on July 23, 2020.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Daryl S. McCormick, Special Agent in Charge of ATF’s Columbus Field Division., made the announcement.
ATF investigated the case and the Evansville Police Department provided valuable assistance. The sentence was imposed by U.S. District Judge Richard L. Young. As part of the sentence, Judge Young ordered that Crosby be supervised by the U.S. Probation Office for three years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Todd S. Shellenbarger 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.
Philadelphia man sentenced for firearms traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Marcellos Carey Edens, of Philadelphia, Pennsylvania, was sentenced today to 18 months of incarceration for an illegal firearms distribution operation, United States Attorney William Ihlenfeld announced.
Edens, also known as “Camo,” 37, pled guilty in September 2020 to one count of “Conspiracy” involving the illegal purchase and transfer of firearms from Berkeley County to Pennsylvania in December 2019. Edens admitted to having others purchase firearms in Berkeley County, West Virginia, and then transport the firearms across state lines to him in Philadelphia.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Bureau for Alcohol, Tobacco, Firearms & Explosives and the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
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.
U.S. District Judge Gina M. Groh presided.
Penfield Man Charged with Obstruction of Justice and Lying Under Oath in George Moses InvestigationRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Francis Cardinell, 76, of Penfield, NY, was charged by criminal complaint with obstruction of justice and lying under oath. The charges carry a maximum penalty of 10 years in prison and a fine of $250,000.
Assistant U.S. Attorney Charles M. Kruly, who is handling the case, stated that George Moses, former chairman of the board of the Rochester Housing Authority, was recently sentenced to serve 78 months in prison for defrauding three organizations, including the Rochester Housing Charities. According to the complaint, in April 2019, Cardinell, owner of Akwasasne Construction, a general contracting firm in Rochester, was interviewed on two separate occasions by the FBI as a witness in connection with the investigation into the fraud allegations against Moses. When asked about a $63,000 contract for boiler work to be performed by his company at the Rochester Housing Charities, Cardinell advised that he paid a cumulative amount of more than $20,000 in cash to Moses as kickbacks related to this contract. During another interview a few weeks later, Cardinell stated that he gave Moses $7,500 in cash out of a payment of $21,800 that he received from the Rochester Housing Charities. In subsequent interviews with the Internal Revenue Service and Housing and Urban Development Office of Inspector General, Cardinell stated that he paid Moses three separate kickbacks totaling $25,000.
However, during the federal trial of George Moses, while under oath on the witness stand, Cardinell testified on cross-examination that he had lied about the kickback scheme and that he never made payments to Gorge Moses in exchange for contracts for his company. Cardinell later told federal investigators that he had fabricated these allegations against Moses because he was spiteful of Moses for the troubles he was having as a contractor.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Michael Stansbury, the Department of Housing and Urban Development, Office of Inspector General, under the direction of Acting Special Agent-in-Charge, Jerome Winkle, and Internal Revenue Service, Criminal Investigation Division, under the direction of Thomas Fattorusso, Special Agent-in-Charge.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Parsons Man Sentenced for Child Porn ConspiracyRead the Press Release
WICHITA, KAN. – A Kansas man was sentenced to 345 months in prison for conspiracy to commit sexual exploitation of a child (production of child pornography).
According to court documents, Dillon Everman, 30, of Parsons admitted in pleading guilty that he encouraged and requested co-defendant Dustin Strom to sexually abuse two young children and send him images of the abuse. Everman then saved the images and created a shareable link that he made available to Strom and others.
In October 2022, Dustin Strom, 26, of Parsons and was sentenced to 60 years in prison after pleading guilty to two counts of conspiracy to commit sexual exploitation of a child (production of child pornography).
Homeland Security Investigations (HSI) and the Kansas Internet Crimes Against Children Task Force (ICAC) investigated the case.
Assistant U.S. Attorneys Molly Gordon and Jason Hart prosecuted the case.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."###
Parkersburg Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Johnathon Earl Hamrick, 33, of Parkersburg, was sentenced today to seven years in prison, to be followed by five years of supervised release, for possession with intent to distribute methamphetamine.
According to court documents and statements made in court, on November 4, 2021, law enforcement officers searched the Parkersburg residence of Hamrick, who then directed them to a rural property in Wood County. Hamrick admitted to possessing a total of 6 pounds of methamphetamine found by officers at the two locations. Hamrick further admitted that he intended to distribute the methamphetamine.
Hamrick also admitted that he received quantities of methamphetamine totaling approximately 20 pounds from John Michael Wells II, 33, of Parkersburg. Wells pleaded guilty on March 31, 2022, to conspiracy to distribute methamphetamine and marijuana. Wells admitted to paying and arranging for methamphetamine and marijuana to be shipped through the mail from California to Parkersburg in October and November 2021. Wells was sentenced on June 29, 2022, to 10 years in prison.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation, the Parkersburg Violent Crimes and Narcotics Task Force (PNTF), and the Wood County Sheriff’s Office.
United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney Jeremy B. Wolfe prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-139.
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Opioid Abuse Treatment Facility to Pay $3.15 Million for Kickback Violations, Obstructing Federal Audit, and False Claims Submitted to Government Insurance ProgramsRead the Press Release
CAMDEN, N.J. – An opioid abuse treatment facility in Camden will pay a total of $3.15 million to resolve criminal and civil claims that it caused kickbacks, obstructed a federal audit, and fraudulently billed Medicaid, Attorney for the United States Vikas Khanna announced today.
Camden Treatment Associates LLC (CTA) agreed to pay $1.5 million in criminal penalties to resolve allegations that it violated the federal Anti-Kickback Statute and obstructed a Medicaid audit. As part of the resolution, a criminal information was filed on December 2, 2022 in Camden federal court charging CTA with this conduct. CTA entered into a three-year deferred prosecution agreement (DPA) that requires it to abide by certain measures to avoid conviction. CTA also entered into a civil settlement agreement to pay $1.65 million to the United States to resolve claims that it violated the federal False Claims Act by submitting fraudulent claims to Medicaid.
Criminal Resolution
According to CTA’s admissions in the DPA:
Between 2009 and 2015, CTA and a second company were owned and managed by related parties. CTA had a kickback relationship with the second company in which CTA ordered all of its methadone mixing services from the second company and paid it more than $125,300 for those services. This arrangement resulted in kickbacks being paid because the second company paid the profits it made on CTA’s orders of methadone mixing to the related parties who owned and managed both companies. As a result, CTA was induced to order services from the second company and to have CTA patients receive treatment using methadone mixed only by that company. CTA received more than $2.78 million from Medicaid for methadone administration services.
In a separate criminal scheme, CTA obstructed a Medicaid contractor’s 2016 audit of CTA’s claims for payment. CTA submitted falsified materials to the auditor purporting to justify its claims to Medicaid. Specifically, CTA added patient and counselor signatures to patient files, altered names of counselors listed as providing services, added credentials for staff listed as performing services, added sign-off dates for services and, in some instances, submitted entire patient notes to files to justify services rendered. Metadata from CTA’s electronic patient software program revealed that CTA employed these fraudulent means.
Civil Resolution
The settlement resolves the civil allegations that CTA submitted false claims to Medicaid stemming from the kickback relationship with the methadone mixing company described above. The settlement further resolves allegations that between 2013 and 2016, CTA failed to comply with certain federal and state regulations governing substance abuse treatment facilities. Specifically, CTA allegedly failed to maintain proper supervision and staffing at its facility. Instead, CTA typically used non-credentialed “counselor interns” to perform services at the facility and did not have sufficient licensed staff to properly supervise the interns. Consequently, CTA’s claims submitted to Medicaid for payment, which were contingent on CTA’s certified compliance with these regulations, were false.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
Compliance Obligations
As part of the DPA, CTA is required to adopt several compliance measures, including:
- have an effective compliance program, including enhanced compliance policies and annual compliance training regarding federal health care laws;
- retain an independent health care compliance consulting firm specializing in substance abuse disorder facilities to conduct a comprehensive review of its compliance program and to make improvement recommendations;
- create an independent board of advisors to oversee company compliance relating to federal health care laws;
- have a chief compliance officer to oversee compliance-related functions at the company;
- annually certify that its compliance program is effective; and
- provide written reports to the United States every six months over a three-year period detailing its progress in developing and enhancing its compliance program.
Attorney for the United States Khanna credited agents of the U.S. Department of Health and Human Services Office of Inspector General, under the direction of Acting Special Agent in Charge Susan Frisco, with the investigation and prosecution of the case. He also thanked the FBI Health Care Fraud Unit Data Analysis Response Team at FBI Headquarters in Washington, D.C., under the direction of Special Agent Greg Heeb; IRS-Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins in Newark; and the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia, for their assistance with the case.
The criminal case was prosecuted by Acting Chief of the Health Care Fraud Unit Christina O. Hud, Chief of the Opioid Abuse Prevention and Enforcement Unit R. David Walk, Jr., and Assistant U.S. Attorney Diana V. Carrig of the Criminal Division in Camden. The civil case was prosecuted by Assistant U.S. Attorney Kruti Dharia of the Opioid Abuse Prevention and Enforcement Unit and Assistant U.S. Attorney Andrew A. Caffrey III of the District of Massachusetts and formerly of the District of New Jersey.
Omaha Man Sentenced to 12 Years in Federal Prison for Drug and Firearm OffensesRead the Press Release
COUNCIL BLUFFS, IA – James Michael Milbourn, age 38 of Omaha, was sentenced on Friday, December 2, 2022, to 144 months in prison following his plea of guilty to Possession with Intent to Distribute Methamphetamine, Carrying a Firearm During and in Relation to a Drug Trafficking Crime, and Felon in Possession of a Firearm.
On February 26, 2022, law enforcement encountered Milbourn in his car which was parked in the front yard of a residence in Council Bluffs. Located in plain view on the front passenger seat of the car was a bag that contained methamphetamine, a digital scale, and a loaded firearm. Milbourn intended to distribute the methamphetamine and possessed the firearm for personal protection of his controlled substances. Milbourn has multiple felony convictions which preclude him from possessing a firearm or ammunition.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Council Bluffs Police Department and Southwest Iowa Narcotics Enforcement Task Force investigated the case.
Northeast Hospital Agrees to Pay $1.9 Million to Resolve Allegations of Controlled Substance Recordkeeping ViolationsRead the Press Release
BOSTON – Northeast Hospital Corporation (Northeast), part of Beth Israel Lahey Health, has agreed to pay $1.9 million in civil penalties to resolve allegations that Northeast violated the Controlled Substance Act (the CSA) by failing to keep accurate records of controlled substances, including opioids.
The CSA requires accurate inventorying and tracking of each controlled substance in circulation, from the manufacturer to the ultimate user. The recordkeeping requirements are intended, in part, to prevent misuse of controlled substances and avoid overdoses or other harms.
Northeast does business as Beverly Hospital in Beverly, Mass.; Lahey Outpatient Center Danvers in Danvers, Mass.; BayRidge Hospital in Lynn, Mass.; and Addison Gilbert Hospital in Gloucester, Mass. Each of these four locations is separately registered with the Drug Enforcement Agency (DEA) to handle controlled substances.
The DEA began investigating Northeast after it reported on March 22, 2018, that an employee had stolen 17,846 dosage units of controlled substances, including fentanyl, Percocet, oxycodone, dextroamphetamine and MS Contin, over more than a year. Northeast discovered the diversion in the course of implementing improvements to its pharmacy operations and controlled substances accountability procedures, and promptly suspended the employee.
The settlement resolves allegations that Northeast’s recordkeeping was not in compliance with the CSA and its regulations. According to the admissions in the settlement, Northeast ordered controlled substances under Beverly Hospital’s DEA registration but subsequently transferred the location of those drugs to other Northeast locations, without notifying the DEA of such inter-registrant transfers. DEA requires that registrants notify the agency of transfers of controlled substances between registrants through filings with the DEA, even when transfers are among affiliated entities. The settlement also resolves allegations that, based on DEA’s audit of the controlled substances that Northeast had on site, Northeast’s actual controlled substances inventory differed from what its records showed should be present.
As part of the settlement, in addition to the improvements undertaken by Northeast voluntarily, both before and after the DEA investigation, Northeast has agreed to additional security and recordkeeping measures.
United States Attorney Rachael S. Rollins and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Assistant U.S. Attorney Thomas E. Kanwit of Rollins’ Civil Division handled the matter.
North Charleston Man Sentenced to Ten Years in Federal Prison for Sexual Exploitation of a Minor Through Social Media AppsRead the Press Release
CHARLESTON, SOUTH CAROLINA — David Curtis White, 23, of North Charleston, was sentenced to 10 years in prison followed by a lifetime of supervised release after pleading guilty to the sexual exploitation of a minor.
According to Court documents, White’s activities were discovered in September 2020 when the mother of a then 11-year-old discovered the child had communicated with and created sexually explicit images at the request of another user on the instant messaging application Snapchat. Law enforcement investigators subsequently identified White as the offender.
Investigators searched White’s residence and digital devices and discovered that he had successfully persuaded and coerced the minor victim to produce sexually explicit material. White, who purported to be a minor, initially communicated with the victim on the Omegle online chat website and then exchanged Snapchat usernames with the victim. Investigators also discovered hundreds of child pornography images and videos on White’s electronic devices that he had collected from the internet.
United States District Judge Richard M. Gergel sentenced White to 120 months imprisonment, to be followed by a lifeterm of court-ordered supervision. There is no parole in the federal system.
The Federal Bureau of Investigation (FBI) investigated the case, and Assistant U.S. Attorney Dean H. Secor prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the 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 sexually exploit children, 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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North Carolina Man Sentenced to 6 ½ Years for Gunpoint Robbery of Puppies from Lancaster County BreederRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Christopher Lamont Stimpson, Jr., 24, of Greensboro, North Carolina, was sentenced to six years and six months in prison, three years of supervised release, and ordered to pay $1,660 in restitution by United States District Court Judge Edward G. Smith for robbing a Lancaster County puppy breeder and his family at gunpoint in order to steal five French Bulldog puppies in October 2020.
In April 2022, the defendant was convicted of robbery which interferes with interstate commerce (Hobbs Act robbery), and interstate transportation of stolen goods in connection with the robbery. Evidence presented at trial proved that in order to gain access to the puppies, dogs with a total value of more than $23,000, Stimpson posed as a customer seeking to purchase five French Bulldog puppies, only to pull out a gun, point it at the victims, and steal the animals. One of the victims recorded the registration of the defendant’s getaway vehicle, which was traced back to a rental company in Greensboro, North Carolina. A customer of the breeder who had also been interested in purchasing one of the puppies later discovered an Instagram posting which featured a video and a photograph of the puppies, as well as photographs of Stimpson. In December 2020, the defendant was arrested in North Carolina.
“The defendant threatened a family at gunpoint inside their own home in order to greedily and callously steal vulnerable, living creatures,” said U.S. Attorney Romero. “ Our Office is committed to prosecuting dangerous, armed criminals, no matter where they may run and hide. We are thankful to our law enforcement partners here in Pennsylvania and in North Carolina for their assistance in bringing Stimpson to justice.”
“This was a frightening armed robbery that saw the victims menaced at gunpoint,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “The fact that puppies were the property taken renders this crime more unusual, but no less serious. Christopher Stimpson made the very bad decision to come to Pennsylvania and take these pups by force, and this sentence holds him accountable for his actions.”
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. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Federal Bureau of Investigation, the Ephrata Police Department, and the Greensboro (NC) Police Department, and is being prosecuted by Assistant United States Attorney Mark S. Miller.
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Nigerian National Sentenced to More Than Six Years in Federal Prison for International Tax Fraud SchemeRead the Press Release
Tampa, Florida – U.S. District Judge Charlene E. Honeywell has sentenced Allen Levinson, formerly known as Allen Ameh, to six years and six months in federal prison for wire fraud conspiracy related to his orchestration of a large-scale international tax fraud scheme. Levinson, a resident of Nigeria, was arrested on December 2, 2020, while attempting to enter the United Kingdom. He was extradited to the United States and pleaded guilty upon his arrival on February 3, 2022.
According to court documents, Levinson was the leader of a scheme that attempted to defraud the United States government of more than $63 million through the filing of false and fraudulent tax returns in the names of hundreds of identity theft victims. The scheme operated from summer 2014 through 2019. Out of the $63 million claimed in tax refunds, the IRS paid over $5.5 million, the majority of which went to Levinson.
Levinson recruited coconspirators T’Andre McNeely, Brandon Williams, Michael Carr, and others—through job placement ads and word of mouth—to collect the proceeds of the tax fraud and send it to Levinson.
Levinson used sophisticated cyber means to obtain the personal data used to file the returns. He also hired other foreign nationals—including individuals located in a boiler room in Vietnam—to prepare and file the returns quickly and in large batches. The returns were filed from real certified accounting firms across the United States, all of whom had been hacked by third parties and often had their information sold on darkweb marketplaces, including a website formerly known as the xDedic Marketplace. The xDedic Marketplace was a website that operated for years and was used to sell access to compromised computers worldwide and personally identifiable information of U.S. residents.
U.S. District Judge Kathryn Kimball Mizelle previously sentenced three of Levinson’s money laundering affiliates in a related indictment. McNeely and Carr were each sentenced to six years and six months’ imprisonment. Williams was sentenced to one year and one day in prison.
“For too long, Levinson, and cyber criminals like him worldwide believed using darknet marketplaces and cryptocurrencies gave them anonymity from law enforcement. Today’s significant sentencing makes it clear that IRS-CI special agents and our partners have the sophisticated tools to remove the so called cloak of anonymity to bring these fraudsters to justice, “ said IRS-CI Acting Special Agent in Charge Ronald A. Loecker.
“The FBI and its law enforcement partners will never cease in their efforts to protect the American people by exposing cyber schemes and bringing the fraudsters, no matter where they try and hide, to justice,” said FBI Tampa Division Special Agent in Charge David Walker.
This case was investigated by the Internal Revenue Service – Criminal Investigation’s Tampa and Oakland Field Offices, and the FBI Tampa Field Office. Special assistance was provided by the IRS - CI Washington, D.C. and Los Angeles Field Offices, and Homeland Security Investigations (HSI), Tampa Field Office. Substantial assistance was also provided by the Department of Justice’s Office of International Affairs. It was prosecuted by Assistant United States Attorney Rachel Jones.
Newport News Man Convicted of Robbery and Brandishing FirearmRead the Press Release
NEWPORT NEWS, Va. – A federal jury convicted a Newport News man on Friday on charges of brandishing a firearm while robbing a gas station convenience store in Henrico County.
According to court records and evidence presented at trial, on January 17, 2019, the defendant, Chaikim Reynolds, 21, entered a gas station convenience store in Henrico County to rob it. His co-conspirator, Darrell Pittman, 23, of Hampton, was armed with a semi-automatic handgun and trained it on the clerk while Reynolds removed U.S. currency from the cash register.
Reynolds was identified by a member of the Hampton Police Department, who saw him in an area-wide request to identify. Reynolds was arrested less than a week later while fleeing police with Pittman when Reynolds crashed the vehicle he was driving into another car, killing that car’s passenger. A loaded firearm, later identified as the one used in the robbery, was recovered from that vehicle.
Pittman previously pleaded guilty for his role in the conspiracy.
Reynolds was convicted today of interference with commerce by robbery and brandishing a firearm during a crime of violence. He faces a maximum penalty of 20 years in prison on the former with a minimum penalty of seven years’ and a maximum term of life incarceration to be served consecutively on the latter when sentenced on April 25, 2023. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Christopher Amon, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Washington Field Division; Col. Eric D. English, Chief of Police for Henrico County Police Department; Steve R. Drew, Chief of Newport News Police; Mark G. Solesky, Chief of Chesapeake Police; and Mark Talbot, Chief of Hampton Police, made the announcement after U.S. District Judge Elizabeth W. Hanes accepted the verdict.
Significant assistance was provided by the U.S. Marshals Service.
Assistant U.S. Attorneys Julie D. Podlesni and D. Mack Coleman are prosecuting the case. Former Special Assistant U.S. Attorney Amy E. Cross previously provided valuable assistance in the investigation of the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:22-cr-39.
Nebraska Man Indicted for Involuntary ManslaughterRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Stapleton, Nebraska, man for Involuntary Manslaughter.
Coenrad Jones, age 21, was indicted in October of 2022. He appeared before U.S. Magistrate Judge Mark Moreno on November 28, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to eight years in custody and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on February 1, 2022, in Todd County, South Dakota, Jones killed a man by operating a motor vehicle in a grossly negligent manner.
The charge is merely an accusation and Jones is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services and the South Dakota Highway Patrol. Assistant U.S. Attorney Abby Roesler is prosecuting the case.
Jones was released on bond pending trial. A trial date has been set for January 31, 2023.
Montgomery Defendant Sentenced to 60 Years and Ordered to Pay over $950,000 in Restitution for Sex Trafficking Scheme Involving Forced ProstitutionRead the Press Release
MONTGOMERY, ALABAMA – Today, U.S. District Court Judge R. Austin Huffaker Jr. of the Middle District of Alabama, sentenced defendant Lonnie Mitchell, 36, of Montgomery, Alabama, to 60 years in prison for coercing several victims, including a minor, to engage in prostitution over the course of several years. There is no parole in the federal system. The judge also ordered the defendant to pay over $950,000.00 in restitution to the victims.
In June 2022, following a five-day trial, a jury convicted the defendant of sex trafficking five victims by force, fraud and coercion. The jury also found the defendant guilty of sex trafficking a minor, and three counts of coercing and enticing an individual to travel in interstate commerce for prostitution purposes.
“Today’s sentence reflects the defendant’s horrific treatment and abuse of his victims,” said U.S. Attorney Sandra J. Stewart for the Middle District of Alabama. “Although their physical injuries will heal, the emotional damage caused by their suffering will last a lifetime. I am thankful for all of the agencies that worked together on this case, and for the courageous victims that testified at his trial. I hope this sentence will provide at least some consolation to the victims knowing that the defendant has been held accountable for his crimes.”
“The defendant used unspeakable violence and manipulation of the victims’ substance abuse problems to control their every move and exploit them for his own financial gain,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Human trafficking is an atrocious crime that targets some of the most vulnerable members of our society, cruelly robbing them of their dignity and freedom. The Department of Justice remains committed to prioritizing human trafficking prosecutions and vindicating the rights of the victims of these heinous crimes.”
“Mr. Mitchell’s crimes were particularly atrocious, which was reflected in the severity of his sentencing,” said DHS Homeland Security Investigations (DHS-HIS) Atlanta Special Agent in Charge Katrina Berger. “We hope this outcome will contribute to the victims’ healing process, but also serve as a warning to others who would victimize others for their own financial gain. HSI special agents and our law enforcement partners will continue to protect our communities from illegal trafficking and narcotics activity.”
According to the evidence presented in court, defendant Lonnie Mitchell targeted vulnerable victims who struggled with substance abuse issues, and then manipulated their substance abuse problems for his benefit. He increased the victims’ use of heroin and encouraged them to use it intravenously. He then withheld heroin from the victims, causing extremely painful withdrawal sickness, if they violated one of his many controlling rules or otherwise did not provide services to enough commercial sex clients. Mitchell also used violence, threats of violence, and threats to send embarrassing information, photos, or videos to the victims’ loved ones in order to coerce compliance with his rules and to ensure that the victims provided him with sufficient money from prostitution. In addition, defendant Mitchell regulated the how much and when the victims could eat and confiscated their identity documents and credit cards as part of his coercive scheme to control them.
Two co-defendants, Nettisia Mitchell and Donna Emmons, previously pleaded guilty to conspiracy to commit sex trafficking. Nettisia Mitchell is the sister of defendant Lonnie Mitchell, and the court previously sentenced her to 120 months confinement and ordered her to pay $2,000 in restitution for her role in her brother’s coercive scheme. Specifically, Nettisia witnessed her brother’s violence against a victim, yet harbored the victim and received the proceeds from the victim’s involvement in commercial sex. The court previously sentenced Emmons to 151 months confinement and ordered her to pay $3,500 in restitution.
Assistant Attorney General Clarke, U.S. Attorney Sandra J. Stewart and HSI Special Agent in Charge Berger made the announcement.
DHS-HSI, Alabama Law Enforcement Agency, Montgomery County Sheriff’s Office, and Montgomery Police Department investigated the case.
Assistant U.S. Attorneys J. Patrick Lamb and MaryLou Bowdre for the Middle District of Alabama and Trial Attorney Kate Alexander of the Civil Rights Division’s Human Trafficking Prosecution Unit prosecuted the case.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org.
Monongalia County man admits to firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Reece Dillon Shepard, of Morgantown, West Virginia, has admitted to a firearms charge, United States Attorney William Ihlenfeld announced.
Shepard, 31, pleaded guilty today to one count of “Unlawful Possession of Firearm.” Shepard, a person prohibited from having firearms, admitted to having a 40-caliber firearm in July 2022 in Monongalia County.
Shepard faces up to 10 years of incarceration 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 Jennifer T. Conklin is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Methamphetamine, heroin trafficking conspiracy alleged in newly unsealed federal indictmentRead the Press Release
CORRECTED BELOW To note defendant Keith Wheeler Jr. is 31 years old.
DUBLIN, GA: A newly unsealed federal indictment charges 13 people with participating in a drug trafficking conspiracy distributing large amounts of methamphetamine and heroin in the Laurens County area.
The indictment in USA v. Martin et. al, follows a nearly three-year investigation by the Laurens County Sheriff’s Office, with assistance from the U.S. Drug Enforcement Administration, into drug trafficking in and around Laurens, Johnson, Treutlen, Emanuel, and Washington counties, and elsewhere, said David H. Estes, U.S. Attorney for the Southern District of Georgia. The 27-count indictment charges each of the defendants with Conspiracy to Possess with Intent to Distribute, and to Distribute, 100 Grams or More of Heroin, and 50 Grams or More of Methamphetamine, a charge that upon conviction carries a statutory penalty of up to life in prison. There is no parole in the federal system.
“Investigators from the Laurens County Sheriff’s Office and the DEA performed outstanding work in identifying and bringing to justice those alleged to be responsible for a significant amount of drug trafficking in the greater Dublin area,” U.S. Attorney Estes said. “These collaborations with our law enforcement partners continue to send the message that we will be relentless in protecting our communities from drug trafficking and the violent crime it spawns.”
The indictment was unsealed after initial court appearances for each of the defendants. They include:
- Travis Lee Martin, a/k/a “Fat,” 41, of Wrightsville, Ga., charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 100 Grams or More of Heroin, and 50 Grams or More of Methamphetamine; four counts of Distribution of 50 Grams or More of Methamphetamine; two counts of Distribution of Heroin; four counts of Distribution of 5 Grams or More of Methamphetamine; Possession of a Firearm by a Convicted Felon; and three counts of Use of Communication Facility, related to use of a telephone on behalf of the conspiracy. Martin’s indictment includes a Notice of Enhanced Punishment, noting that he is subject to increased punishment if convicted because he previously was convicted of one or more serious drug or serious violent felonies.
- Lashondria Letrecee Roberts, 37, of Wrightsville, Ga., charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 100 Grams or More of Heroin, and 50 Grams or More of Methamphetamine;
- Sentell Eugene Carey, 39, of Wrightsville, Ga., charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 100 Grams or More of Heroin, and 50 Grams or More of Methamphetamine;
- Ikavian Dankevious Carey, a/k/a “Big Mike,” a/k/a “Man,” 25, of Wrightsville, Ga., charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 100 Grams or More of Heroin, and 50 Grams or More of Methamphetamine;
- Ricardo Jerome Taylor, a/k/a “Mike,” a/k/a “Spook,” 41, of Wrightsville, Ga., charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 100 Grams or More of Heroin, and 50 Grams or More of Methamphetamine;
- Travis Keith Wheeler Jr., 31, of Soperton, Ga., charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 100 Grams or More of Heroin, and 50 Grams or More of Methamphetamine; and two counts of Distribution of Methamphetamine;
- Travon Lamont Burger, 41, of Dublin, Ga., charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 100 Grams or More of Heroin, and 50 Grams or More of Methamphetamine;
- Carmen Michelle Oxford, 40, of East Dublin, Ga., charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 100 Grams or More of Heroin, and 50 Grams or More of Methamphetamine; Possession with Intent to Distribute 50 Grams or More of Methamphetamine; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; Possession of a Firearm by a Convicted Felon; and Possession of a Firearm with an Obliterated Serial Number;
- Gerald Keith Downard, 45, of East Dublin, Ga., charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 100 Grams or More of Heroin, and 50 Grams or More of Methamphetamine; Possession with Intent to Distribute 50 Grams or More of Methamphetamine; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and Possession of a Firearm with an Obliterated Serial Number;
- Kendrick Lavar Dixon, a/k/a “Ken,” 41, of Wrightsville, Ga., charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 100 Grams or More of Heroin, and 50 Grams or More of Methamphetamine;
- Jacquelyn Amelia Brewer, a/k/a “Amy,” 50, of Dexter, Ga., charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 100 Grams or More of Heroin, and 50 Grams or More of Methamphetamine; and one count of Use of Communication Facility;
- Nicole Tinagero Gregory, 35, of Swainsboro, Ga., charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 100 Grams or More of Heroin, and 50 Grams or More of Methamphetamine; Distribution of Heroin; and Distribution of Methamphetamine; and,
- Erika Lashandria Tobridge, 43, of Dublin, Ga., charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 100 Grams or More of Heroin, and 50 Grams or More of Methamphetamine; four counts of Distribution of Heroin; and Possession with Intent to Distribute 100 Grams or More of Heroin.
The indictment includes a forfeiture notice regarding two firearms and $86,297 in cash seized during searches as part of the investigation. Nearly 100 dogs suspected to be involved in a dog-fighting operation also were seized during the investigation; that case is being prosecuted separately.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
The case is being investigated by agencies including the U.S. Drug Enforcement Administration and the Laurens County Sheriff’s Office, with assistance from the U.S. Postal Inspection Service, the Georgia Bureau of Investigation Southeastern Regional Drug Enforcement Office, the Emanuel County Sheriff’s Office, the Johnson County Sheriff’s Office, and the Ocmulgee Drug Task Force, and prosecuted for the United States by Assistant U.S. Attorneys Jennifer J. Kirkland and Jerimiah S. Johnson.
Men Sentenced to Combined 23+ Years for Selling Machinegun, SilencerRead the Press Release
Three men who sold a machine gun and silencer to an undercover ATF agent have been sentenced to more than 23 years in federal prison, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Guy Mena, 34, and Stephen Kadlec, 39, were arrested and charged in November 2021. Mr. Kadlec plead guilty in January 2022 to transferring a firearm in violation of the National Firearms Act and was sentenced in June to two years in federal prison. Mr. Mena pleaded guilty to transferring a firearm in violation of the NFA December 2021 and, in a separate case in July 2022, to conspiracy to distribute methamphetamine; he was sentenced last Thursday to a total of 14 ½ years in federal prison.
Their coconspirator Sergio Salgado, 37, was charged in May 2022. He also pleaded guilty to transferring a firearm in violation of the NFA and was sentenced in October to more than seven years in federal prison.
According to court documents, Mr. Mena offered to sell a confidential informant a firearm frame, two receivers – one semi-automatic and one fully-automatic – a silencer, and some firearm magazines for $6,000.
Accompanied by an undercover ATF agent, the confidential informant met Mr. Mena, Mr. Kadlec, and Mr. Salgado at a motel in Arlington on Nov. 18 2021. Mr. Kadlec showed the undercover agent the full-auto receiver, demonstrated how to swap the semi-auto receiver for the full-auto receiver on the firearm frame, outlined the functionality of the silencer, and explained how to toggle the selector switch to full-auto to turn the firearm into a machinegun.
(Unlike semiautomatic firearms, machineguns – weapons that can shoot more than one shot, without manual reloading, by single function of the trigger – are generally unlawful for civilians under the National Firearms Act.)
The undercover agent handed over $6,000 and departed with the firearm, receivers, silencer, and magazines. Shortly after the ATF agent left the room, Texas DPS officers observed Mr. Mena, Mr. Kadlec, and Mr. Salgado exit the hotel room and get into a vehicle; when they pulled the vehicle over, they detained the three men and recovered the government funds.
Prior to the firearm transaction, Mr. Mena had sold more than 50 grams of methamphetamine to another confidential informant out of his apartment in Abilene.
The Bureau of Alcohol, Tobacco, Firearms, & Explosives’ Dallas Field Division and the Texas Department of Public Safety conducted the investigation in cooperation with the Arlington Police Department, the Abilene Police Department, and the Drug Enforcement Administration’s South Central Laboratory. Assistant U.S. Attorney Levi Thomas prosecuted the firearms cases against all three defendants while Assistant U.S. Attorney Juanita Fielden prosecuted the drug case against Mr. Mena.
Man Sentenced for Using Identities of Prison Inmates to File Fraudulent Unemployment ClaimsRead the Press Release
DETROIT - A man from Novi was sentenced for orchestrating an unemployment insurance fraud scheme aimed at defrauding the State of Michigan and the U.S. Government of funds earmarked for unemployment assistance during the COVID19 pandemic, announced United States Attorney Dawn N. Ison.
Joining in the announcement were Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General, Special Agent in Charge James A. Tarasca, Federal Bureau of Investigation, and Juila Dale, Director of the Michigan Unemployment Insurance Agency.
Terrell Dwayne Mason, 40, was sentenced to 57 months in prison. In sentencing the defendant, United States District Judge Denise Page Hood also ordered Mason to pay restitution to the state of Michigan in the amount of $423,435.
According to court records, between April of 2020 and continuing into February of 2021, Mason filed fraudulent unemployment claims using the identities of federal and state inmates, knowing that the inmates were not eligible to receive such benefits. Mason obtained the inmates’ personal identifying information (PII) from websites on the dark web or from the inmates themselves based on false representations that he would help them improve their credit ratings. Mason pleaded to both wire fraud and aggravated identity theft.
“Unemployment insurance is designed to help those in need,” said U.S. Attorney Ison. “This case is another example of my office’s commitment to ensuring that people who abuse the system pay the consequences.”
“Terrell Mason fraudulently applied for benefits intended to assist workers forced to sit idle during the worst pandemic in a century,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “This investigation reflects our collective determination to root out and punish criminals who used a national emergency to steal from American taxpayers.”
“This sentencing is another example of justice being served,” said Michigan UIA Director Julia Dale. “UIA investigators work closely with our partners throughout law enforcement to prosecute those who steal or conspire to steal taxpayer money that is meant for deserving workers who have lost a job through no fault of their own. Let this be a warning to any bad actors who exploit the public’s trust: We will come after you.”
“The significant sentence in this case underscores the seriousness of the offence. Terrell Mason was on parole when he filed dozens of fraudulent pandemic unemployment claims in the names of prisoners who were ineligible for benefits. We will continue to work with our law enforcement and state partners to investigate those who exploit the unemployment insurance system,“ stated Special Agent-in-Charge Irene Lindow, Chicago Region, U.S. Department of Labor, Office of Inspector General.
This case was prosecuted by Assistant United States Attorneys Timothy Wyse and Mark Chasteen. The investigation was conducted jointly by the Department of Labor, Office of Inspector General, Federal Bureau of Investigation, and the Unemployment Insurance Agency, Michigan Department of Labor and Economic Opportunity.
Man Pleads Guilty to Violations of the Controlled Substances ActRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced today that ERIC RODRIGUEZ, 41, pled guilty on November 30, 2022 to conspiracy to distribute and possess with the intent to distribute methamphetamine, in violation of Title 21 United States Code, Sections 846, 841(a)(1), and 841(b)(1)(A).
RODRIGUEZ took part in a conspiracy to distribute methamphetamine throughout Jefferson Parish and surrounding areas for over a year.
At sentencing, RODRIGUEZ faces up to a minimum term of imprisonment of ten (10) years and a maximum term of imprisonment of life, a maximum fine of up to $10,000,000.00, at least five (5) years of supervised release following any term of imprisonment., and a $100 mandatory special assessment fee per count.
This case was investigated by the U.S. Drug Enforcement Administration, Jefferson Parish Sheriff’s Office, Kenner Police Department, Orleans Parish Sheriff’s Office, New Orleans Police Department, and St. John Parish Sheriff’s Office. The prosecution was handled by Assistant United States Attorneys Nolan Paige, André Jones, and Melissa Bücher.
Man Indicted for Stealing Chief Federal Judge’s Identity and Forging Court DocumentsRead the Press Release
For Further Information, Contact: Assistant U. S. Attorney Mark Conover (619) 546-6763
Honolulu, Hawaii – Edmond Abordo of Honolulu was arrested by the FBI today in connection with a federal grand jury indictment charging that he forged the signature of a federal judge in order to trick a woman into paying him thousands of dollars for bogus legal services.
According to the indictment, Abordo used the forged signature and a federal court seal to create a phony court order, which he then used to prove to the victim that he’d pulled her Ewa Beach, Hawaii, home out of foreclosure. Abordo allegedly claimed to be a legal expert, which he was not.
The case was initiated when the Clerk's Office of the District Court, District of Hawaii learned of the forged court order containing the signature and seal of U.S. Chief District Judge Derrick K. Watson. The FBI began investigating.
The indictment alleges that Abordo first met the elderly victim in late 2017 and described himself to her as a “non-licensed attorney” who could help her prevent foreclosure. Abordo, who is not a lawyer and has no legal training, claimed that he had expertise on several legal subjects, including mortgages and adverse possession. He convinced the victim to file a federal lawsuit challenging foreclosure of her home. Nearly each time that Abordo met with the victim, he demanded a cash payment of $1,000 to $3,000 dollars.
Abordo ultimately convinced the victim that the federal judge assigned to the lawsuit had awarded her possession of her home, the indictment said Abordo stated that he would not give her the court order until she paid him additional money. In reality, the victim’s home had been lost to foreclosure and the federal lawsuit had been dismissed months earlier. The victim, believing Abordo had a real court order, paid him thousands of dollars in exchange for the forged court order.
The forged court order was a two-page document dated June 26, 2019 and titled “Order Granting Plaintiff’s Motion For Adverse Possession Pursuant HRS § 657-31.5 Adverse Possession and 43 U.S. Code § 1068 Lands Held in Adverse Possession.” The document contained the caption of the federal lawsuit as well as the purported signature of U.S. District Judge Watson, and the seal of the United States District Court for the District of Hawaii.
Abordo assured the victim that the forged court order was a genuine court document and that the judge’s signature on the forged order was genuine, and that the forged court order gave legal possession of the Ewa Beach property to the victim. In reality, and as Abordo then well knew, the forged court order was not genuine, was never issued or signed by the judge, and did not confer any property rights to the victim.
“We will always act to protect the integrity of the court and seek justice for victims of fraud,” said U.S. Attorney Randy Grossman of the Southern District of California. Grossman applauded the work of the prosecution team and the FBI in this matter.
“Trust in our court system is paramount to our society,” said FBI Special Agent in Charge Steven Merrill. “When individuals forge court documents and victimize our kupuna, the FBI will aggressively pursue those individuals to maintain the public’s confidence in the court system and protect the vulnerable.”
Abordo was arraigned on the indictment by U.S. Magistrate Judge Kendal Newman and entered a plea of not guilty. Judge Newman detained Abordo temporarily and ordered him to appear before U.S. District Judge Lynn Winmill on January 19, 2023, at 9 a.m. for a motion hearing.
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
DEFENDANT
Edmund Abordo 67 Honolulu, HI
SUMMARY OF CHARGES
18 U.S.C. § 1343, Wire Fraud
Maximum Penalty: Twenty years in prison, $250,000 fine, forfeiture and restitution18 U.S.C. § 505, Forgery
Maximum Penalty: Five years in prison, $250,000 fine, forfeiture and restitution18 U.S.C. § 1028A(a)(1), Aggravated Identity Theft
Maximum Penalty: Two years consecutive to underlying countAGENCIES
Federal Bureau of Investigation
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Little River Man Indicted for Production of Child Pornography and Sexual Coercion of a MinorRead the Press Release
FLORENCE, SOUTH CAROLINA — A federal grand jury in Florence returned an indictment against James Edward Moss, Jr., 37, of Little River, for production of child pornography and sexual coercion of a minor.
The indictment alleges that from April 20, 2022, until April 23, 2022, Moss persuaded, induced, enticed, and coerced a minor victim to engage in prostitution and the production of child pornography. The indictment further alleges that during this timeframe, Moss actually produced child pornography of the minor victim.
Moss faces a maximum penalty of life imprisonment, and is currently detained pending a detention hearing.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the 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 sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
The case was investigated by the Federal Bureau of Investigation (FBI) and Horry County Police Department. Assistant U.S. Attorneys Derek A. Shoemake and Lauren Hummel are prosecuting the case.
U.S. Attorney Adair F. Boroughs stated that all charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty.
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Lincoln Man Sentenced to Eight Years for Possession of Drugs and FirearmRead the Press Release
Acting United States Attorney Steven Russell announced that Joseph Thompson, 24, of Lincoln, Nebraska, was sentenced today by United States District Judge John M. Gerrard to a total of 100 months in prison following his conviction for possession of marijuana with the intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime. After he completes his prison sentence, Thompson will serve five years on supervised release. There is no parole in the federal system.
On April 29, 2021, Lincoln Police investigators searched a Lincoln hotel room and found a backpack containing marijuana, pills, and a firearm magazine speed loader. At various locations in the hotel room, investigators found more marijuana, a scale, more pills, and a 9 mm pistol. The firearm was located under a TV cabinet, was loaded, had an extended magazine attached, and was found to be stolen in 2017 out of McKinney, Texas.
Hotel surveillance video showed Thompson carrying the same backpack into the hotel room. Police interviewed Thompson, who admitted there was marijuana in the hotel room that belonged to him. Investigators seized Thompson’s cell phone from the hotel room and obtained a search warrant. Data from the phone showed evidence of drug dealing and firearms possession. Phone content spanning March through April 2021 included photos and videos of guns of various makes and calibers. For example, an April 28 photo depicted a gun with extended magazine and light attachment that appeared to be the same gun found under the TV cabinet in the hotel room on April 29. A March 29 video showed Thompson holding a gun with an extended magazine. An April 4 video showed Thompson threatening to kill unknown persons while holding a gun. An April 6 video showed a hand displaying numerous pills with the caption, “Shop Open.” A video from April 23 showed Thompson wearing body armor and displaying a handgun.
Drugs taken during the hotel search were sent to the Nebraska State Patrol Crime Lab where a forensic scientist confirmed the presence of marijuana and the presence of methamphetamine in some of the pills. Investigators also obtained cell phone data from one of the individuals seen on hotel surveillance video coming and going from the hotel room. Data from the phone showed communication from Thompson consistent with drug distribution spanning February to March 2021.
During an unrelated investigation stemming from a July 8, 2021, shooting in Lincoln, investigators again seized Thompson’s phone, and obtained a search warrant. Data from the phone showed Thompson’s continued firearm possession and drug distribution between April and July 2021.
Thompson is a felon because of a 2017 conviction for Possession of a Firearm on School Grounds.
This case was investigated by the Lincoln Police Department and the Federal Bureau of Investigation, and was 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.
Lincoln Man Sentenced for Second Offense Possession of Child PornographyRead the Press Release
Acting United States Attorney Steven Russell announced that Adam Bates, 37, of Lincoln, Nebraska, was sentenced on December 2, 2022, by United States District Court Judge John M. Gerrard to a term of 120 months’ imprisonment following his conviction for possession of child pornography. After he completes his prison sentence, Bates will also serve ten years on supervised release. There is no parole in the federal system.
On July 1, 2016, Bates’ state parole officer contacted the Nebraska State Patrol to report that she found Bates in possession of a cellular phone in violation of his parole conditions during a recent parole visit. On July 8, 2016, investigators spoke with Bates who admitted he had cell phones. He consented to a search of the phones and investigators found child pornography saved on one of the phones. Investigators obtained a search warrant to search Bates’s electronic devices. Investigators located numerous images of child pornography on one of Bates’s phones. At the time, Bates was on parole due to a 2011 conviction from Lancaster County for possession of child pornography.
This case was investigated by the Nebraska State Patrol, and brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Lawyer Michael Avenatti Sentenced to 14 Years in Federal Prison for Stealing Millions of Dollars from Clients and Tax FraudRead the Press Release
SANTA ANA, California – Suspended plaintiffs’ lawyer Michael John Avenatti was sentenced today to 168 months in federal prison for stealing millions of dollars from his clients – one of whom was a paraplegic with mental health issues – and for obstructing the IRS’s efforts to collect more than $3 million in payroll taxes from an Avenatti-owned coffee business.
Avenatti, 51, a former Newport Beach resident now in federal custody, was sentenced by United States District Judge James V. Selna, who said Avenatti “has done great evil for which he must answer.”
In imposing the 14-year sentence, Judge Selna ordered that this term of imprisonment run consecutive to sentences totaling five years previously imposed in two federal cases in the Southern District of New York.
Judge Selna also ordered Avenatti to pay $10,810,709 in restitution to four clients and to the IRS.
Today’s sentencing follows Avenatti’s entry of guilty pleas on June 16 to four counts of wire fraud and one count of endeavoring to obstruct the administration of the Internal Revenue Code. He has been a federal prisoner since on February 7, soon after he was ordered to begin serving a sentence in one of the New York cases.
“Michael Avenatti was a corrupt lawyer who claimed he was fighting for the little guy. In fact, he only cared about his own selfish interests,” said United States Attorney Martin Estrada. “He stole millions of dollars from his clients – all to finance his extravagant lifestyle that included a private jet and race cars. As a result of his illegal acts, he has lost his right to practice law in California, and now he will serve a richly deserved prison sentence.”
“Michael Avenatti violated the trust placed in him by his clients. Instead of helping his clients receive the compensation that they were owed and needed, he pocketed the money, stealing from people who were already hurting. The money was used to fuel a lavish lifestyle that had no limits,” stated Tyler Hatcher, the Special Agent in Charge of IRS Criminal Investigation’s Los Angeles Field Office. “While today’s sentencing concludes the government’s case against Mr. Avenatti, the enormous damage left behind will be felt by his former clients for quite some time. It is our sincere hope that his victims will take some solace in the fact that he has been held accountable for his criminal actions.”
The Wire Fraud Counts
Avenatti received money on behalf of clients into client trust accounts, misappropriated the money, and then lied to the clients about receiving the money or, in one case, claimed that the money had already been sent to the client. The four clients suffered actual losses totalling approximately $7.6 million.
“Although the details pertaining to each of the four clients underlying the charges in the indictment differ, the general pattern was the same,” according to a sentencing memorandum filed by prosecutors. “[Avenatti] would lie about the true terms of the settlement agreement he had negotiated for the client, conceal the settlement payments that the counterparty had made, secretly take and spend the settlement proceeds that belonged to the client, and lull the client into not complaining or investigating further by providing small ‘advances’ on the supposedly yet-to-be paid funds.”
According to court documents:
- In the case of Geoffrey Johnson, Avenatti represented Johnson in a lawsuit against the County of Los Angeles that alleged, among other things, Johnson became a paraplegic as a result of the county violating his constitutional rights. The county paid a $4 million settlement in January 2015, but within months Avenatti had drained the entire settlement payment from his law firm’s trust account and used portions of the settlement to finance his coffee business and pay personal expenses. Avenatti never told Johnson about the settlement agreement and terms, and he concealed from Johnson the receipt of the settlement payment from the county. Instead of giving Johnson his portion of the settlement, Avenatti gave Johnson periodic “advances” of no more than $1,900 and paid the rent for his assisted living facility to falsely reassure him that Avenatti was continuing to work on his behalf.
- Alexis Gardner obtained a $3 million settlement in a matter, which included a payment of $2.75 million in early 2017. Avenatti never provided a copy of the settlement agreement to Gardner or told her the true terms of the settlement. Upon receipt of the settlement money, Avenatti took the bulk of this money – $2.5 million – and used it to purchase his portion of a jet, while falsely telling Gardner that the settlement called for monthly payments over eight years. Avenatti gave Gardner a small “advance” for rent and made approximately 12 monthly payments, totally approximately $227,500, making them appear to come from the individual who paid the settlement, but then Avenatti stopped paying Gardner.
- Gregory Barela was to receive a $1.9 million settlement in an intellectual property dispute. Avenatti embezzled the first installment of $1.6 million in January 2018, in part by providing Barela with a bogus settlement agreement indicating that the payment was going to be made two months later. Avenatti used the money to pay expenses at his coffee business and to pay his own legal expenses.
- Michelle Phan and Long Tran hired Avenatti to negotiate a “Common Stock Repurchase Agreement” for the sale of nearly $27.5 million worth of Phan’s shares of ipsy, a company founded by Phan, and then another sale of approximately $8.15 million worth of Phan’s shares. When the first payment was made, Avenatti took his fees for the overall $35 million sale and sent the balance to Phan. But when the second stock sale was finalized and the company sent nearly $8.15 million, all of which belonged to Phan, Avenatti kept $4 million for himself and used this money to pay some of his law firm’s bankruptcy creditors, including the IRS; to provide funding for his various businesses; and to make lulling payments to Johnson, Gardner and Barela. When Phan and Tran demanded Phan’s money, Avenatti falsely told them that the stolen $4 million already had been wired to them and provided them with a wire transfer confirmation document which actually documented the transfer of an earlier $4 million payment.
“[Avenatti’s] scheme to defraud his clients was cruel – often reducing those clients to begging for needed funds and making them feel beholden to him when he ‘advanced’ or ‘loaned’ them funds that were, in fact, the clients’ own money,” prosecutors argued in the sentencing memorandum.
The Tax Count
Avenatti corruptly obstructed and impeded the IRS’s efforts to collect more than $3.2 million in unpaid payroll taxes, which includes money that he withheld from the paychecks of employees of Global Baristas US LLC, the Avenatti-owned company that operated Tully’s Coffee, and should have paid to the IRS but never did.
Avenatti obstructed the agency’s efforts to collect the monies that his company owed by making false statements to an IRS revenue officer; directing employees to stop depositing cash receipts; and changing the company name, Employer Identification Number, and bank account information listed with his credit card processing company to avoid IRS levies.
In addition, prosecutors argued in support of allegations in an indictment that:
- Avenatti failed to file individual tax returns or pay any personal income taxes for 2011 through 2017, even though he had a substantial income and lived lavishly.
- He also failed to file partnership returns or pay taxes – including payroll taxes – for his now-defunct Newport Beach-based law firm Eagan Avenatti LLP, of which he was the managing partner, for 2013 through 2017, even though the law firm received many millions of dollars during those years.
- Furthermore, Avenatti failed to file corporate tax returns or pay taxes for Avenatti & Associates, of which he was president, for 2011 through 2017, even though this entity also received substantial funds.
“[Avenatti’s] tax fraud scheme was massive, resulting in losses to the federal treasury…and harming hundreds of his employees whose payroll taxes he stole,” prosecutors noted in the sentencing memorandum.
IRS Criminal lnvestigation conducted the investigation in this matter. The Office of the United States Trustee provided assistance.
Assistant United States Attorneys Brett A. Sagel of the Santa Ana Branch Office and Ranee A. Katzenstein, Chief of the Major Frauds Section, prosecuted this case.
Kalamazoo Woman Sentenced to Nine Years in Federal Prison for Intent to Distribute FentanylRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Mark Totten announced that Candi Taylor (39) of Kalamazoo, Michigan was sentenced to nine years in prison last Friday by Chief U.S. District Judge Hala Y. Jarbou for possession with intent to distribute 1.5 kilograms of fentanyl. A street-level drug dealer, Taylor, possessed the large quantity of fentanyl because she was transferring it from one higher-level dealer to another.
“Make no mistake about it, my office is committed to prosecuting the traffickers who are distributing fentanyl and other illegal drugs and the dealers who sell it,” said Mark Totten, U.S. Attorney for the Western District of Michigan. “Together with our law enforcement partners, we are fighting to save lives against deadly drugs and working to keep our communities safe.”
Taylor’s charges and conviction stemmed from her arrest on March 2, 2022. The Kalamazoo Valley Enforcement Team (KVET), a multi-jurisdictional narcotics task force, had been investigating Taylor for her involvement with fentanyl distribution in and around Kalamazoo. KVET obtained a warrant to search Taylor’s residence, vehicle, and her elderly father’s residence, which law enforcement believed Taylor was using as a stash house. Taylor was in her vehicle in the driveway of her home when KVET executed the warrants and officers found her with a baggie containing approximately ten grams of fentanyl in her hand and a digital scale nearby. Investigators found two more baggies in her coat pocket containing over 100 grams of fentanyl. The search of Taylor’s elderly father’s house yielded over 1,400 grams of fentanyl in a locked toolbox that Taylor was temporarily holding to transfer to a larger-scale dealer. Taylor pled guilty to possession with the intent of distributing the fentanyl she stashed at her elderly father’s residence.
“The potential consequences of Ms. Taylor’s actions, for the residents of Kalamazoo and surrounding communities, is unfortunately, not inconceivable,” said DEA Detroit Special Agent in Charge Orville O. Greene. “With our federal, state, and local law enforcement partners, we are committed to providing the resources necessary to combat drug trafficking in our communities. These arrests should send a clear message that drug trafficking on any level will not be tolerated.”
In announcing Taylor’s sentence, Chief U.S. District Judge Hala Y. Jarbou recognized that Taylor was primarily a street-level dealer but observed that she made a “huge mistake” and took a “huge gamble” by offering to hold and transfer 1.5 kilograms of fentanyl from one dealer to another. Jarbou further observed that individuals who transport for larger-scale dealers must face consequences. Taylor had prior convictions for retail fraud, carrying a concealed weapon, unarmed robbery, and fleeing from police, which Judge Jarbou also considered when imposing the sentence.
“The poisoning of our community by drug dealers pushing fentanyl into the hands of Kalamazoo residents is devastating,” said Kalamazoo Department of Public Safety Acting Chief David Boysen. “The end user, their family, and the community bear the burdens of the drug dealer’s desire for material gains. Today’s sentence is clear evidence that the Kalamazoo Department of Public Safety will, through targeted enforcement, work tirelessly to stop drug dealers from destroying lives” added Boysen.
This case was investigated by the U.S. Drug Enforcement Administration and the Kalamazoo Valley Enforcement Team, a narcotics task force operating in Kalamazoo County. The case was prosecuted by Assistant U.S. Attorney Joel S. Fauson.
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Justice Department Secures Agreement with Alabama Medicaid to Remove Unlawful Sobriety Mandate for Health Care AccessRead the Press Release
The Justice Department announced today that it has secured a settlement agreement with the state of Alabama’s Medicaid Agency (Alabama Medicaid) under the Americans with Disabilities Act (ADA) to ensure that Alabama Medicaid recipients with Hepatitis C (HCV) who also have a substance use disorder have equal access to medications to treat their hepatitis.
Alabama Medicaid previously maintained a longstanding sobriety restriction policy that denied coverage of HCV medication for any person with HCV who had consumed any alcohol or illicit drugs within the six months prior to starting treatment. The sobriety restriction policy also barred Medicaid payment for HCV medication if a person used alcohol or illicit drugs while using the medication.
“Alabama Medicaid’s reversal of its longstanding sobriety restriction will finally allow Medicaid recipients with substance use disorders to have the same access as others to a cure for Hepatitis C,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is committed to enforcing the Americans with Disabilities Act to eliminate unnecessary barriers that stand in the way of equal access to health care.”
“We appreciate Alabama Medicaid’s willingness to work with the Department of Justice and our office to remove the sobriety restriction policy that prevented so many Alabamians with HCV, who also have substance use disorder, from receiving appropriate treatment,” said U.S. Attorney Prim F. Escalona for the Northern District of Alabama. “This settlement agreement delivers justice under the Americans with Disabilities Act and significantly advances public health in our state.”
HCV can result in a range of serious health conditions, many of which affect the liver. These may include cirrhosis, liver cancer, liver failure and death. However, according to the Centers for Disease Control and Prevention, highly effective treatments called direct-acting antiviral medications (DAAs) cure HCV in more than 95% of cases. In addition, use of these medications can also stop the spread of HCV because treated individuals will not transmit HCV to others. Abstaining from alcohol or illicit drugs is not medically required for this successful outcome. Alabama Medicaid’s sobriety restriction policy withheld a potentially life-saving service to individuals with HCV who also had (or who were regarded as having, and/or who had a record of) a substance use disorder.
Alabama Medicaid worked cooperatively to modify its policies to ensure that Medicaid recipients have access to DAA treatment for HCV without regard to an individual’s substance use. Alabama Medicaid has withdrawn the sobriety restriction policy, and under today’s settlement will not delay, deny or fail to pay for DAA treatment of HCV based on any Medicaid recipient’s use of drugs or alcohol. Further, it will engage in a robust effort to notify Medicaid recipients and Medicaid providers of these changes, as well as promptly remedy any instances where the prior policy is applied.
For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TTY 833-610-1264) or visit www.ada.gov. ADA complaints may be filed online at www.ada.gov/complaint. Anyone in the Northern District of Alabama may also report civil rights violations directly to the U.S. Attorney’s Office for the Northern District of Alabama at [email protected] or (205) 244-2001.
Inmate Sentenced for Possessing Weapon at FCI McDowellRead the Press Release
BLUEFIELD, W.Va. – Alex Barrera, 26, an inmate at the Federal Correctional Institution (FCI) McDowell, was sentenced today to one year and three months in prison, to run consecutively to the sentence he currently is serving, for possession of a weapon by an inmate of a federal prison. Barrera was also sentenced to three years of supervised release following his imprisonment.
According to court documents and statements made in court, on April 5, 2022, an FCI McDowell staff member conducting a random pat-down search found a handcrafted weapon commonly known as a “shank” in the waistband of Barrera’s pants. The object was a piece of metal about six and one-half inches long, with one end sharpened to a point and the other end wrapped in cloth and a shoelace as a grip. Barrera admitted to possessing the object and further admitted that it was designed and intended to be used as a weapon.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Prisons.
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Timothy D. Boggess prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:22-cr-151.
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Huntington Woman Pleads Guilty to Fentanyl CrimeRead the Press Release
HUNTINGTON, W.Va. – Courtney Michelle McComas, 34, of Huntington, pleaded guilty today to distribution of a quantity of fentanyl.
According to court documents and statements made in court, on September 24,2021, McComas sold approximately 1.63 grams of fentanyl to a confidential informant in a vehicle at the intersection of Sixth Avenue and Richmond Street in Huntington.
McComas admitted to that transaction and also admitted to selling approximately 2 grams of fentanyl to the confidential informant on November 16, 2021, in Huntington. On November 19, 2021, law enforcement officers executed search warrants at an Oney Avenue residence and of a vehicle in Huntington. McComas admitted to possessing the approximately 41 grams of fentanyl found by officers during the searches, and further admitted that she intended to distribute the fentanyl.
McComas is scheduled to be sentenced on March 6, 2023, and faces a maximum penalty of 20 years in prison, three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Cabell County Sheriff’s Office.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams 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. 3:22-cr-58.
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Hudson County Real Estate Investor Admits Multi-Year Mortgage Fraud SchemeRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, real estate investor has admitted conspiring to orchestrate a fraudulent home equity line of credit scheme that led to over $400,000 in losses, U.S. Attorney Philip R. Sellinger announced today.
Anthony Garvin, 52, of Jersey City, New Jersey, pleaded guilty by videoconference on Dec. 2, 2022, before U.S. District Judge Katharine S. Hayden in Newark federal court to one count of conspiracy to commit bank fraud and four counts of bank fraud.
According to documents filed in this case and statements made in court:
Between 2011 and 2014, Garvin orchestrated a scheme to defraud banks by conspiring with others to fraudulently obtain multiple home equity lines of credit, known as HELOCs, on real estate that Garvin owned. To hide his fraud from lenders, Garvin and his conspirators prepared and submitted loan applications that contained lies and fake supporting documents, including fake pay stubs, W-2 forms, tax returns, bank account statements, and deeds. Garvin split his fraud proceeds with his conspirators and defaulted on all of the loans. Garvin’s scheme ultimately resulted in over $400,000 in loses to the lenders.
The count of bank fraud conspiracy and each count of bank fraud carries a maximum potential penalty of 30 years in prison, a fine of $1 million or twice the gross gain to the defendants or twice the gross loss to others, whichever is greatest. Sentencing is scheduled for April 11, 2023.
Two conspirators previously pleaded guilty and are awaiting sentencing.
U.S. Attorney Sellinger credited special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak, and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorneys Blake Coppotelli and Anthony Torntore of the District of New Jersey.
Hollis Man Sentenced to 6+ Years for Being a Felon in Possession of Ammunition and Violating Conditions of Supervised ReleaseRead the Press Release
PORTLAND, Maine: A Hollis man was sentenced in U.S. District Court in Portland today for being a felon in possession of ammunition as well as for violating conditions of supervised release previously imposed by a federal court in New Hampshire.
Chief U.S. District Judge Jon D. Levy sentenced Julion Parker, 30, to a total of 82 months in prison followed by three years of supervised release. Parker received a sentence of 70 months for the felon-in-possession violation and 12 months for violating the conditions of his supervised release, to be served consecutively. Parker waived indictment and pleaded guilty on September 5, 2022.
According to court records, Parker was convicted in the District of New Hampshire in 2019 for being a felon in possession of firearms. After his supervision was transferred to the District of Maine in early 2022, Parker’s supervising probation officer learned that he was in possession of numerous firearms. In April 2022, agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) executed a search warrant at Parker’s residence in Hollis and recovered several rounds of ammunition. He is prohibited from possessing firearms or ammunition due to prior felony convictions.
ATF investigated the case.
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. To learn more information about PSN, visit www.justice.gov/psn.
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