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23 November 2022
Denver Felon Sentenced to Prison for 46 Months for Illegal Possession of a WeaponRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces James Ernesto Martinez, age 33, of Denver, has been sentenced to 46 months in prison for possession of a firearm by a prohibited person.
According to the plea agreement, on July 22, 2021, law enforcement agents executed a search warrant at the defendant’s Denver home. That search warrant authorized the seizure of, among other things, firearms. After agents knocked and announced their presence, Martinez went back inside for approximately ten minutes. During that time, agents could see Martinez moving quickly through the home. When Martinez finally surrendered, he was the only adult in the home. On the floor of Martinez’s bedroom, agents observed a trail of pills that led from the dresser to the bathroom. In the bathroom, around the toilet, agents located crushed pills they believed to be a controlled substance, as well as ripped up plastic baggies. Based on what agents initially saw, they obtained a second search warrant for drugs and drug paraphernalia. They located 11 fentanyl pills, .981 grams of methamphetamine, plastic baggies, and two digital scales. In a shoe box concealed in the attic that could only be accessed from the defendant’s bedroom, agents located two 9mm handguns and a .22 caliber handgun. Martinez had previously been convicted of a felony and knew he was prohibited from possessing firearms and ammunition.
Judge William J. Martinez sentenced the defendant on November 23, 2022.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution was handled by the Violent Crime and Immigration Enforcement Section of the U.S. Attorney’s Office for the District of Colorado.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
CASE NUMBER: 21-cr-00263
Delaware Man Sentenced to 45 years in Federal Prison for Trafficking over 150 Kilograms of Cocaine and Laundering the ProceedsRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that on Monday, November 21, 2022, Third Circuit Judge Stephanos Bibas, sitting by designation in the District of Delaware, sentenced Omar Morales Colon to 45 years’ incarceration for conspiracy to commit money laundering, conspiracy to distribute cocaine, and various other drug and money laundering offenses. The Court acknowledged that Colon was one of the biggest drug traffickers in the history of the State of Delaware, and that Colon stood ready to use violence if necessary to protect his drug business.
Mr. Colon, age 45, was convicted of the drug and money laundering offenses following a pair of jury trials in September 2021 and July 2022. His wife, Shakira Martinez, age 44, was also convicted of the money laundering offenses in the July trial; her sentencing hearing is scheduled for February 2023.
According to court records and evidence presented at trial, between 2009 and 2017, Colon and Martinez laundered over a million dollars in drug proceeds through the purchase of real estate properties in Delaware and Pennsylvania using their company, Zemi Property Management. They deposited drug money into several different bank accounts – and asked their friends and family members to do the same – and then used those funds to buy cashier’s checks that funded the property purchases.
Colon was arrested on May 6, 2017, shortly after giving his cocaine supplier $382,045 in cash in a hotel parking lot in Newark, Delaware. The Drug Enforcement Administration (“DEA”) subsequently discovered a secret underground bunker beneath Colon’s residence, accessed by a tunnel behind a false fireplace, in which Colon hid a marijuana grow operation.
U.S. Attorney Weiss commented on the case, “Mr. Colon has received a serious sentence that properly reflects his decades of criminality. As Judge Bibas acknowledged in his remarks, drug trafficking wreaks havoc on the community and on families. Mr. Colon imported massive amounts of cocaine into Delaware for many years. Those who aspire to a criminal lifestyle should take note that the resulting punishment may be decades behind bars.”
"IRS-Criminal Investigation is proud to have provided its financial expertise in this investigation," said IRS Criminal Investigation Special Agent in Charge Yury Kruty. "We, along with our law enforcement partners and the Department of Justice, are committed to aggressively investigating individuals who engage in money laundering, tax fraud, or other types of white-collar crimes."
“Colon ran a sophisticated drug trafficking and money laundering operation that included a hidden underground bunker at his house to conceal a marijuana grow operation,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “Colon received a significant federal prison sentence that is commensurate with the magnitude of his drug-trafficking activities.”
Assistant U.S. Attorneys Jennifer K. Welsh and Meredith C. Ruggles prosecuted the case. This case was investigated by the DEA Philadelphia Division and the IRS-Criminal Investigation.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 1:17-cr-00047-LPS.
Debt collector and drug distributor for cartel connected, violent, drug distribution ring, sentenced to 10 years in prisonRead the Press Release
Seattle – A 31-year-old Renton, Washington man was sentenced this week in U.S. District Court in Seattle to ten years in prison for his role in a violent, cartel connected drug distribution ring, announced U.S. Attorney Nick Brown. Benjamin Fuentes was indicted in July 2020, along with more than a dozen coconspirators following an extensive, wire-tap investigation. U.S. District Judge John C. Coughenour imposed the prison term and four years of supervised release to follow incarceration.
“This defendant was immersed in the violence of this drug trafficking ring – at one point firing a gun into the air and threatening to kill everyone inside a residence as part of his debt collection threats,” said U.S. Attorney Nick Brown. “He and his coconspirators distributed massive amounts of methamphetamine, heroin, cocaine, and potentially deadly fentanyl pills in King, Pierce, Lewis, and Snohomish Counties. This sentence removes him from the community he damaged with his violent drug trade.”
According to records filed in the case, Fuentes worked as a drug distributor and debt collector for the drug trafficking organization that was connected to the violent CJNG cartel in Mexico. Fuentes also served as a translator for leaders of the drug trafficking group when they could not understand English-speaking coconspirators. During the wiretap, investigators repeatedly heard Fuentes discussing both drug distribution and obtaining firearms for violent debt collection on behalf of the organization.
Baggie of fentanyl pills Handgun in holsterWhen agents moved in on the drug ring they found methamphetamine, heroin, cocaine and fentanyl pills in a residence Fuentes shared with a DTO leader. They also recovered four firearms, ballistic vests and $28,000 in cash.
In asking for a ten-year sentence Assistant United States Attorney Amy Jaquette wrote to the court, “This organization is one of the most violent our District has prosecuted. Given the extent of Fuentes’ involvement in drug distribution and his repeated role in violent debt collection for the conspiracy, a lengthy sentence is needed…. Fuentes also played an integral role in the DTO’s drug distribution – most notably, picking up a shipment of methamphetamine and 7,000 fentanyl pills for redistribution in our District. That quantity of fentanyl pills put innumerable lives at risk.”
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The investigation was conducted by the U.S. Drug Enforcement Administration’s (DEA) Tacoma Resident Office in partnership with Tahoma Narcotics Enforcement Team (TNET), Kent Police Department, Homeland Security Investigations, SeaTac Police Department, Thurston County Narcotics Team (TNT), the Federal Bureau of Investigation, the Bureau of Alcohol Tobacco, Firearms and Explosives (ATF), and Internal Revenue Service Criminal Investigation (IRS-CI).
The case is being prosecuted by Assistant United States Attorneys Amy Jaquette and C. Andrew Colasurdo.
Cedar Rapids Man Who Was Found with over $135,000 in Drug Money Pleads Guilty to Possessing Meth with Intent to Distribute and Possessing Firearm as a Drug UserRead the Press Release
A man who possessed methamphetamine with intent to distribute it and who possessed a firearm as an unlawful drug user, pled guilty today in federal court in Cedar Rapids.
Joshua Ryan Gorrell, age 37, from Cedar Rapids, Iowa, was convicted of one count of possession of methamphetamine with intent to distribute it within 1,000 feet of a protected location, and one count of possession of a firearm as an unlawful drug user.
In a plea agreement, Gorrell admitted that, on July 22, 2022, he made a 911 call regarding an overdose that occurred at his home in Cedar Rapids. When first responders arrived, they found a deceased overdose victim. Officers searched Gorrell’s home and found $123,038 in U.S. Currency and over two pounds of actual (pure) methamphetamine, 43 grams of fentanyl, 56 grams of a mixture of fentanyl and heroin, 68 grams of marijuana, and 238 grams of THC wax. Officers found some of the drugs and cash in ductwork inside of Gorrell’s home.
Gorrell also admitted in a plea agreement that on August 22, 2022, law enforcement officers searched his home again and found a firearm, $15,253 in U.S. Currency, approximately 28 grams of methamphetamine, and approximately 252 grams of marijuana. Later that day, Gorrell’s urine tested positive for methamphetamine and fentanyl.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Gorrell remains in custody of the United States Marshal pending sentencing.
For possessing methamphetamine with intent to distribute it within 1,000 feet of a protected location, Gorrell faces a mandatory minimum sentence of 10 years’ imprisonment and the following maximum penalties: not more than life imprisonment without the possibility of parole; a fine of not more than $20,000,000; a mandatory special assessment of $100; and a term of supervised release of at least 10 years and up to life. For possessing a firearm as a drug user, Gorrell faces the following maximum penalties: not more than 15 years’ imprisonment without the possibility of parole; a fine of not more than $250,000; a mandatory special assessment of $100; and a term of supervised release of not more than 3 years.
The case was prosecuted by Special Assistant United States Attorney Devra Hake and Assistant United States Attorney Dan Chatham. It was investigated as part of the Northern Iowa Heroin Initiative and the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Cedar Rapids Police Department, United States Drug Enforcement Administration, Iowa Division of Narcotics Enforcement, Marion Police Department, and Linn County Sheriff’s Office.
This case is also 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.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-59.
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Belleville Woman Sentenced to Prison for Stealing Elderly IdentitiesRead the Press Release
BENTON, Ill. – On Tuesday, November 22, 2022, Ashley McKinney, 39, of Belleville, Illinois, was sentenced to 54 months in federal prison for Identity Theft, Conspiracy to Commit Bank and Wire
Fraud, and Money Laundering.
According to court documents, for almost a year, Ashley McKinney defrauded elderly women in southern Illinois with the help of her co-conspirator, Erica Rose. They were true partners in crime. Rose abused her employment as an in-home caretaker and stole the identities of her elderly clients. Then she passed the stolen information along to McKinney to attempt to drain their bank accounts through counterfeit checks and fraudulent purchases. As an example, McKinney tried to buy a used Tesla online after stealing the identity and savings of an 86-year-old woman from
Belleville, Illinois. When the deal fell through because the Tesla had mechanical problems, McKinney bought herself a Mercedes Benz instead. After she took possession of the vehicle, the victim’s bank stopped payment on the counterfeit check and the online car dealer repossessed the luxury vehicle. The pair were caught after numerous families reported identity theft to police shortly after Rose was caring for their loved one. In each case, McKinney was found committing fraud with the identity.Rose was previously sentenced to prison in May 2021.
“While identity theft is always a serious crime, it’s particularly troubling when victims are elderly,” said United States Attorney Rachelle Crowe. “The crimes in this case went beyond financial loss. They impacted whole families during already difficult times. We will always prioritize holding defendants accountable who prey on vulnerable victims.”
The investigation was conducted by detectives from the Edwardsville Police Department, Belleville
Police Department, Swansea Police Department, and St. Clair County Sheriff’s Office.
The case is being prosecuted by Assistant United States Attorney Luke J. Weissler.Arizona Man Pleads Guilty to Production of Child PornographyRead the Press Release
NEWPORT NEWS, Va. – A Surprise, Arizona, man pleaded guilty yesterday to production of child sexual abuse material (CSAM).
According to court documents, from summer of 2021 through March 2022, Elliott Velez, 38, used social media platforms to engage in sexually graphic conversations with girls under the age of 18. During these conversations with the victims, Velez would instruct them to engage in sexually explicit conduct, take photos or videos, and send them to him. Velez would give explicit instructions on what he wanted them to do and who he wanted them to do it with, including other underage individuals. Velez would use a recording device on his phone to ensure that he could keep these videos and images without the victim’s knowledge. Velez is an active duty servicemember who was located in Newport News during the time of his conduct.
Velez is scheduled to be sentenced on March 22, 2023. He faces a mandatory minimum of 15 years and a maximum penalty of 30 years in prison per count, not necessarily consecutively. 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, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after Senior U.S. District Judge Raymond A. Jackson accepted the plea.
Assistant U.S. Attorney Devon Heath is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
This case was investigated by the FBI’s Norfolk Child Exploitation Task Force (NCETF), as part of Project Safe Childhood. The NCETF is composed of FBI agents and detectives from the Chesapeake Police Department, Hampton Police Division, and Newport News Police Department. Assistance in this matter was also provided by federal agents from Homeland Security Investigations. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children. Tips regarding child exploitation can be provided to the task force at 1-800-CALL-FBI or tips.fbi.gov.
In 2021, EDVA launched “UnMasked,” a community-based educational outreach and prevention program in Virginia dedicated to raising awareness and educating the community about the prevalence of online sexual exploitation involving children and young adults. UnMasked is a multi-disciplinary partnership of local, state, federal, and non-profit stakeholders. The core curriculum is provided by the National Center for Missing and Exploited Children’s (NCMEC) NetSmartz program. To report an incident involving online sexual exploitation, call 1-800-843-5678 or submit a report at report.cybertip.org. To request an UnMasked event at your school or organization, please contact EDVA’s Community Outreach Coordinator at [email protected].
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-28.
Arizona Man Indicted in Federal Court for Interstate Stalking and Harassment of Indianapolis CoupleRead the Press Release
INDIANAPOLIS – Patrick Kearney, 40, of Saddlebrook, Arizona, was indicted by a federal grand jury for interstate stalking, transmitting threats via interstate communications, and making harassing telephone calls to an Indianapolis couple.
As alleged in the indictment, Kearney has engaged in a stalking and harassment campaign targeting a woman who had rejected his pursuit of a romantic relationship while they attended college together in the early 2000s. The victim graduated from college and never saw Kearney again. Beginning in September 2019, nearly twenty years later, Kearney began sending the woman letters and packages through the U.S. mail telling the victim she should have died in the terrorist attacks on September 11, 2001, that she should eat poison, and that she should go to hell. Kearney also repeatedly called the victim at all hours and left profane and insulting voicemails on the victim’s cell phone.
When Kearney learned that his victim was engaged to be married—after finding the victim’s wedding website online—he began harassing and threatening the victim’s husband as well. Between October 2019 and September 2022, Kearney placed approximately 404 phone calls to the victims’ cell phones and left at least 155 voicemails. Kearney sent the victims multiple packages containing insect poison and pornographic material.
On October 12, 2022, Kearney appeared in federal court in Arizona and was then transported to the Southern District of Indiana. Kearney made his initial appearance in federal court in the Southern District of Indiana on November 17, 2022. On November 23, 2022, Kearney was remanded to the custody of the U.S. Marshals Service.
If convicted on all nine counts alleged in the indictment, Kearney faces a maximum penalty of five years imprisonment on each of the first three counts, and a maximum penalty of up to two years imprisonment on each of counts four through nine, a $250,000 fine, and up to three years of supervised release following any prison term.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Rodney Hopkins, Inspector of Charge of the U.S. Postal Inspection Service’s Detroit Division, made the announcement.
U.S. Attorney Myers thanked Assistant United States Attorney Kelsey L. Massa, who is prosecuting this case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Ambulance Company Settles Allegations of Billing Medicare for Unnecessary, Non-Emergency Ambulance TransportationRead the Press Release
Fairview Heights, Ill. – HealthOne Critical Care Transport Service, Inc. d/b/a MedicOne Medical
Response (“MedicOne”) of Marion, Illinois, has agreed to pay $302,124.37 in a civil settlement agreement resolving allegations the company improperly billed Medicare for scheduled, non- emergency ambulance transportation.The government alleges MedicOne’s former location in Mount Vernon, Illinois, routinely billed
Medicare for non-emergency ambulance transports to regularly scheduled dialysis treatments when the services did not meet Medicare requirements. MedicOne typically picked up patients at their residences or nursing homes and transported the patients to and from dialysis treatment three times per week, sometimes for years. The government alleges many of MedicOne’s non-emergency ambulance transports did not meet Medicare requirements for coverage because the services were not medically necessary, particularly when the patients safely rode in other forms of transportation – such as personal vehicles, medical transport cars, and wheelchair vans – to medical appointments and social outings.The Medicare program paid MedicOne hundreds of dollars per round-trip ambulance transport taking patients to dialysis treatments. To resolve the allegations, MedicOne will pay the United States
$302,124.37 for claims submitted to Medicare between April 2016 and January 2020.“Billing for unnecessary ambulance transports wastes taxpayer dollars and drains critical funds from the Medicare program,” said U.S. Attorney Rachelle Aud Crowe. “Our office is committed to protecting the integrity of federal health care programs.”
“Health care providers that bill Medicare for medically unnecessary services improperly divert funds needed to care for beneficiaries while increasing the financial burden on taxpayers,” stated
Special Agent in Charge Curt L. Muller of the Department of Health and Human Services Office of
Inspector General (HHS-OIG). “Along with our law enforcement partners, we will continue to investigate health care schemes to protect the integrity of federal health care programs.”“Public health insurance programs, such as Medicare, can incur significant financial loss when their programs are exploited. Those losses cost the government and ultimately impact every American
– contributing to the rising cost of health care for everyone,” said Federal Bureau of
Investigation (FBI) Springfield Special Agent in Charge David Nanz. “This settlement is a result of the FBI’s commitment to work with our federal and state partners to ensure that federally funded health care programs are not abused by providers.”This matter was investigated by HHS-OIG, the FBI, and the Illinois tate Police Medicaid Fraud
Control Unit in response to a hotline complaint submitted to HHS-OIG. Assistant U.S. Attorney Laura
Barke prosecuted the case.
Anyone who suspects health care fraud, waste, or abuse is encouraged to report it by calling 1-800-
HHS-TIPS or visiting https://oig.hhs.gov/fraud/report-fraud/.The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Albuquerque defendant back in court after absconding while on pre-trial releaseRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced that a federal court has revoked the conditions of pre-trial release for Jason Smeltzer, 40, of Albuquerque.
Smeltzer originally was arrested for and charged with five bank robberies. From Jan. 20 to Feb. 23, Smeltzer allegedly robbed four Albuquerque banks, one of which was robbed twice. On Jan. 21, the FBI received a tip through the National Threat Operation Center identifying Smeltzer as a possible suspect. Smeltzer was taken into custody on Feb. 23. A federal grand jury indicted Smeltzer on April 12.
Smeltzer was conditionally released to La Pasada Halfway House pending trial. Among the conditions of his release was his submission to location monitoring by a GPS device. However, on May 6, Smeltzer removed his GPS device and absconded from La Pasada. He was arrested on Nov. 18.
A defendant is presumed innocent unless and until proven guilty. If convicted, Smeltzer faces up to 20 years in prison.
The FBI Albuquerque Violent Crimes and Gangs Task Force investigated this case. Assistant United States Attorneys Matthew Nelson and Niki Tapia-Brito are prosecuting the case.
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22 November 2022
Woodbury Felon Arrested, Charged with Illegal Possession of FirearmRead the Press Release
MINNEAPOLIS – A federal criminal complaint has been filed against a Woodbury man charging him with illegal possession of a firearm, announced U.S. Attorney Andrew M. Luger.
According to court documents and a law enforcement affidavit, on October 18, 2022, law enforcement observed what appeared to be a narcotics transaction between Jason Steven Kearns, 38, and the occupant of a vehicle parked outside of Kearns’s Woodbury residence. Law enforcement initiated a traffic stop of the vehicle, searched it, and found approximately one half-pound of methamphetamine. Following the traffic stop, law enforcement obtained and executed a search warrant at Kearns’s home. As officers approached the residence, Kearns fled on a motorcycle, carrying what appeared to be a package of methamphetamine in his jacket. Officers attempted to stop Kearns, but he was able to escape. Law enforcement recovered three firearms from the residence.
On November 14, 2022, law enforcement encountered Kearns in the driver’s seat of a truck outside of a restaurant in Woodbury. The officers called for backup and two Woodbury Police squad vehicles arrived and attempted to stop Kearns by activating their lights. One squad vehicle stopped in front of Kearns’s truck and the other approached from the side. Kearns accelerated his truck forward, ramming the police vehicle head-on. Kearns reversed his truck and drove into a curb and was pinned by the two police vehicles. Kearns exited his vehicle and ran from officers on foot to a parking lot across the street. Officers saw that Kearns had his right hand on what appeared to be a semiautomatic pistol. Officers drew their firearms and issued multiple commands to Kearns to drop his firearm. Kearns continued walking through the parking lot and then stopped and knelt down, still refusing to drop the firearm. Kearns stated to officers that he had a firearm in his hand. Eventually, Kearns dropped the firearm and surrendered and was taken into custody. The firearm, a Smith & Wesson 9mm semiautomatic pistol, was loaded with a round chambered and 11 rounds in the magazine. Kearns was also carrying a large knife on his person. After searching Kearns’s truck, officers recovered quantities of methamphetamine, hypodermic needles, and a digital scale.
Because Kearns has multiple prior felony convictions including assault and armed robberies, he is prohibited under federal law from possessing firearms or ammunition at any time.
Kearns is charged with one count of possession of firearms as a felon. He made his initial appearance earlier today in U.S. District Court before Magistrate Judge Tony N. Leung. He was ordered to remain in custody pending a formal detention hearing on November 28, 2022.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Washington County Drug Task Force, and the Woodbury Police Department.
Assistant U.S. Attorneys Emily A. Polachek and Thomas Calhoun-Lopez are prosecuting the case.
A complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
West Falls Man Going to Prison for Child ExploitationRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Nicholas Turnquist, 36, of West Falls, NY, who was convicted of transportation and attempted transportation of a minor with the intent to engage in criminal sexual activity, was sentenced to serve 156 months in prison and 15 years supervised release by U.S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorneys Maeve E. Huggins, Paul E. Bonanno, and Jonathan P. Cantil, who handled the case, stated that beginning in 2012, and for several years after, Turnquist sexually abused a minor female victim (Victim) who was known to Turnquist. The sexual abuse occurred in New York State and in other states, including Pennsylvania, and in Canada. For example, on December 23, 2014, Turnquist transported the Victim, a then 16-year-old minor female, from New York to Pennsylvania, to engage in sexual activity.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Michael Stansbury, the East Aurora Police Department, under the direction of Chief Shane Krieger, and the Wyoming County Sheriff’s Office, under the direction of Sheriff Gregory Rudolph.
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Waterbury Man on Supervised Release Charged with Gun Possession and Drug Distribution OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned a three-count indictment charging RAEKWON OVERSTREET, 27, of Waterbury, with firearm possession and drug distribution offenses.
The indictment was returned on October 26, 2022. Overstreet appeared today before U.S. Magistrate Judge Robert M. Spector in New Haven and entered a plea of not guilty. He has been detained since his arrest on related state charges on October 5, 2022.
The indictment alleges that on October 5, 2022, Overstreet possessed a loaded Taurus 9mm handgun and distribution quantities of heroin, fentanyl and crack cocaine.
It is further alleged that Overstreet’s criminal history includes a state conviction for conspiracy to commit robbery in the first degree, and a federal conviction for unlawful possession of a firearm by a felon. On February 4, 2020, Overstreet was sentenced in New Haven federal court to 30 months of imprisonment and three years of supervised release for the firearm offense. He was released from federal prison on June 24, 2022.
The indictment charges Overstreet with one count of unlawful possession of a firearm by a felon, which carries a maximum term of imprisonment of 15 years; one count of possession with intent to distribute controlled substances, which carries a maximum term of imprisonment of 20 years; and one count of possession of a firearm in furtherance of a drug trafficking crime, which carries a mandatory consecutive sentence of at least five years. Overstreet also faces additional penalties if he is found to have violated the conditions of his federal supervised release.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. A charge is only an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Waterbury Police Department and Connecticut State Police.
This case is being prosecuted by Assistant U.S. Attorney Natasha Freismuth through 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. In May 2021, the Justice 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.
United States Files Forfeiture Action for Manuscript Signed by Conquistador Hernando Cortés in 1527Read the Press Release
BOSTON – The United States Attorney’s Office for the District of Massachusetts filed a civil forfeiture action today against a manuscript signed by Conquistador Hernando Cortés in 1527, believed to have been unlawfully removed from the Archivo General de la Nación de México – Mexico’s national archives located in Mexico City – sometime before 1993. It is a violation of federal law to transport or receive stolen goods valued at more than $5,000 that have traveled in foreign or interstate commerce.
The manuscript is a payment order signed by Cortés on April 27, 1527 authorizing the purchase of rose sugar for the pharmacy in exchange 12 gold pesos. It is believed to be one of several documents unlawfully removed from a collection of documents concerning a Spanish expedition to Central America in 1527 that is housed in Mexico’s national archives.
According to the civil complaint, earlier this year an individual consigned the Cortés manuscript for online auction at a Massachusetts auction house. Mexican authorities alerted federal authorities that the manuscript being auctioned appeared to have been stolen. In turn, the auction house removed the manuscript from the upcoming auction and the manuscript was recovered.
“As a result of exceptional work by the Asset Recovery Unit in our office and our law enforcement partners, this historic artifact has been recovered. Mexico, like the United States, has national archives and the Cortés manuscript is nearly five centuries old. Our goal in filing today's forfeiture action is to return the manuscript to its rightful owner,” said United States Attorney Rachael S. Rollins.
“Thanks to the hard work of the FBI’s Art Crime Team, with the assistance of the General Archives of Mexico, we were able to track down and authenticate this historic manuscript signed by Conquistador Hernando Cortés in 1527, three decades after it was stolen,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation Boston Division. “The recovery of this national treasure stolen from Mexico and its people not only preserves an important part of Mexico’s history, but reflects the FBI’s ongoing commitment to pursue justice for victims of crime here and abroad. Our investigation into how this priceless artifact ended up in Massachusetts continues, and we look forward to the day when we can return it to the Government of Mexico.”
In 2021, a number of colonial-era documents believed to have been stolen from Mexico’s national archives and placed for auction in the United States were recovered and repatriated to Mexico, including some signed by Cortés.
Anyone with information on stolen art and cultural property are encouraged to contact the FBI at 1-800-CALL FBI (1-800-225-5324). Tips may also be submitted online at https://tips.fbi.gov/.
U.S. Attorney Rollins and FBI SAC Bonavolonta made the announcement today. The civil forfeiture action is being prosecuted by Assistant U.S. Attorney Carol E. Head, Chief of Rollins’ Asset Recovery Unit.
The details contained in the civil forfeiture complaint are allegations.
U.S. Attorney Announces Agreement with New York University to Increase Accessibility of Student Housing FacilitiesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced a voluntary compliance agreement under Title III of the Americans with Disabilities Act (“ADA”) with New York University (“NYU” or the “University”) to increase the accessibility of NYU’s student housing facilities for individuals with disabilities. The agreement covers all of NYU’s student housing facilities in the New York metropolitan area.
Title III of the ADA requires that privately owned places of public accommodation, including colleges and universities, remove physical barriers to access to existing facilities where it is readily achievable to do so, comply with accessibility standards for new construction and alterations, and modify policies and practices where necessary to ensure full and equal enjoyment of services and facilities.
The out-of-court agreement resolves a compliance review during which the U.S. Attorney’s Office identified various aspects of NYU’s student housing facilities that were not in compliance with Title III of the ADA and the ADA Standards for Accessible Design, including violations of the new construction provisions of the ADA and barriers to access to existing facilities.
NYU’s New York-area campuses include student housing facilities in Manhattan, in Brooklyn, and on Long Island for the University’s undergraduate, graduate, and professional schools. The agreement covers a total of more than 4,000 student housing units, which are located within 22 NYU-owned student housing facilities and 10 facilities leased in full or in part by the University.
NYU has agreed to prepare a plan under which it will survey and make alterations to its student housing facilities within five years, update its student housing emergency preparedness plans, and improve the accessibility information related to student housing on its website.
U.S. Attorney Damian Williams said: “The ADA requires colleges and universities to ensure that no individual is discriminated against on the basis of disability in the full and equal enjoyment of their services and facilities. We are pleased that NYU has committed to improving accessibility within the University’s student housing facilities and hope that other colleges and universities will follow suit and increase access to their facilities for individuals with disabilities.”
Under the agreement, NYU will:
- Conduct architectural surveys and seek public comment from the University community and then submit an accessibility plan for review to this Office, outlining how the University will comply with the agreement.
- Ensure that an appropriate number of accessible student housing units (and bathrooms serving those units) are available to students with disabilities and are dispersed throughout the University’s student housing facilities which serve NYU’s (i) general student population, (ii) graduate student population, (iii) Grossman School of Medicine, (iv) Long Island School of Medicine, (v) law school, and (vi) Brooklyn campus.
- Ensure that each student housing facility in which accessible housing units required by the agreement are located has accessible features, including accessible entrances, approaches, bathrooms, and signage; and that an appropriate number of additional housing facilities have an accessible entrance, first floor common area, and bathroom.
- Update its student housing emergency evacuation, sheltering, and shelter-in-place plans for individuals with disabilities after seeking public comment from the University community.
- Update its website to identify accessible entrances, routes, and transportation options for its student housing facilities; identify newly added or renovated accessible features of the student housing facilities; and provide information to assist students and prospective students with disabilities in securing and utilizing accessible housing and housing accommodations at NYU.
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This case is being handled by the Office’s Civil Rights Unit in the Civil Division. Assistant U.S. Attorney Samuel Dolinger is in charge of the case.
Two Maui Men Convicted of Hate Crimes for Racially Motivated Attack on White ManRead the Press Release
After a two-week jury trial, a federal jury in Honolulu, Hawaii, found defendants Kaulana Alo-Kaonohi, 32, and Levi Aki Jr., 33, guilty of a hate crime for their racially motivated attacks on C.K., a white man who was attempting to move into their Native Hawaiian neighborhood of Kahakuloa on Maui.
“This verdict brings justice and vindication to the victim, a man who was assaulted and nearly killed simply based on the color of his skin,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The jury’s verdict – and in fact this whole prosecution – reflects the Department of Justice’s commitment to protecting every person in this country from race-based violence, regardless of the race of the perpetrator or the victim. The law applies equally to everyone.”
“The defendants in this case committed a gruesome attack on the victim because of his race,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI and our law enforcement partners will work to bring to justice anyone who uses threats and violence to intimidate any individual because of racial bias.”
At trial, the evidence showed that C.K., purchased a house in Kahakuloa and decided to move there with his wife and three daughters after his wife was diagnosed with multiple sclerosis and forced to retire. When C.K. arrived in Kahakuloa, he was harassed and threatened by various Kahakuloa residents who told him things like, “This is a Hawaiian village. The only thing coming from the outside is the electricity,” and “You don’t even belong in Hawaii.”
On Feb. 13, 2014, when C.K. was unpacking his belongings with his elderly uncle, the defendants, who had never met C.K. before, stormed onto his property and demanded that he pack his things and leave, threatening to “tie [him] up and drag [him]” and make him “go missing” if he did not comply. When C.K. replied that he owned the house, defendant Alo-Kaonohi dragged his index finger along C.K.’s jaw and told him, “Your skin is the wrong f****** color.” Defendant Aki then picked up a roofing shovel and handed it to defendant Alo-Kaonohi, who struck C.K. in the head with it, opening up a bloody wound on the back of C.K.’s head. Later on, after C.K. had already begun packing up his possessions, the defendants attacked him a second time. During that attack, defendant Aki head butted C.K. and struck him in the face with the shovel a second time, giving C.K. a concussion and causing him to lose consciousness. When he came to, the defendants were kicking him in the side—kicks that broke two of his ribs. During the second attack, one of the defendants said, “no white man is ever going to live here.”
“The jury’s verdict confirms that the rule of law serves to protect all persons in our community from vicious assaults, no matter the color of their skin,” said United States Attorney Clare E. Connors for the District of Hawaii. “When people commit violent crimes against someone out of hatred for the victim’s race, the Department of Justice will ensure they face criminal consequences in a court of law.”
“The FBI is committed in protecting individuals from being harmed based on their race,” said FBI Special Agent in Charge Steven Merrill of the FBI Honolulu Field Office. “This case highlights our work to ensure everyone feels safe in their own community without any fear of retribution or violence regardless of their race. The FBI encourages the public to support law enforcement’s efforts to end hate crimes by contacting the FBI at tips.fbi.gov or by calling 1-800-CALL-FBI.”
Sentencing is set for March 2, 2023. The charge on which they were convicted carries a maximum sentence of ten years of imprisonment. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The FBI Honolulu Field Office conducted the investigation.
Assistant U.S. Attorney Chris Thomas for the District of Hawaii prosecuted the case in partnership with Special Litigation Counsel Christopher J. Perras and Trial Attorney Tara Allison of the Justice Department’s Civil Rights Division.
Two Cape Men Indicted for Illegally Possessing a FirearmRead the Press Release
BOSTON – Two Hyannis men have been indicted for being felons in possession of a firearm.
Donnell Pina, 50, and Ryan Diefenbach, 31, were indicted on one count each of being a felon in possession of a firearm. The defendants were detained following an initial appearance in federal court in Boston on Nov. 17, 2022 before U.S. District Court Magistrate Judge Jennifer C. Boal. Diefenbach was remanded to federal custody following a detention hearing this afternoon.
According to the indictment, in September 2021, Pina and Diefenbach possessed a Chinese SKS .762 caliber rifle. Due to multiple previous felony convictions for heroin trafficking in 2007, 2013 and 2014, Pina is considered an armed career criminal prohibited from possessing firearms. Diefenbach is also prohibited from possessing firearms due to previous felony convictions.
The charge of being a felon in possession provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Due to Pina’s status as an armed career criminal, he faces a mandatory minimum of 15 years and up to life in prison. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement today. Assistant United States Attorney Evan Gotlob of Rollins’ Major Crimes Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Twin Brothers Plead Guilty to Illegal Possession of a Firearm, AmmunitionRead the Press Release
MINNEAPOLIS –Twin brothers Quantez Demarco Ward and Cortez Demario Ward, age 19, have pleaded guilty to illegal possession of a firearm and illegal possession of ammunition, respectively, announced United States Attorney Andrew M. Luger.
According to court documents, in January of 2022, the brothers were both charged in Hennepin County District Court for possession of machineguns after they were caught in possession of firearms that had each been modified with auto sears. An auto sear, also known as a switch, is a device used to convert a semi-automatic firearm into a fully automatic firearm and is considered a machinegun under federal law. In May, both Cortez and Quantez Ward pleaded guilty to their Hennepin County charges and were released on terms of probation.
On May 6, 2022, the brothers were pulled over by the Maple Grove police department. During that traffic stop, Cortez Ward was in possession of a Polymer 80 pistol with an extended magazine loaded with 19 rounds of ammunition on his person. On July 19, 2022, law enforcement executed a federal arrest warrant at the Ward brothers’ residence. Inside, law enforcement found multiple firearms, including a 9mm Ruger rifle, a H&K .22 caliber rifle and a Pioneer 7.26 mm Pistol.
Yesterday, Quantez Ward pleaded guilty in U.S. District Court before Chief Judge Patrick J. Schiltz to one count of possession of a firearm as a felon related to the firearms recovered on July 19, 2022. On October 25, 2022, Cortez Ward pleaded guilty in U.S. District Court before Senior Judge David S. Doty to one count of possession of ammunition as a felon arising from the May 6, 2022, traffic stop. Sentencing dates will be scheduled at a later time.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Minneapolis Police Department, and the Maple Grove Police Department.
These cases are being prosecuted by Assistant U.S. Attorney Lindsey Middlecamp.
Troy Felon Charged with Illegally Possessing AmmunitionRead the Press Release
ALBANY, NEW YORK – Derbie Michel, age 31, of Troy, New York, was charged by indictment today with illegally possessing ammunition as a convicted felon.
The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
According to the indictment and other court filings, Michel, a convicted felon, threw five rounds of ammunition from a car while being pursued by members of the Troy Police Department on October 15, 2022. Michel also threw a privately made firearm, or “ghost gun,” from the car during the same pursuit. The charges in the indictment and complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Michel was previously charged by criminal complaint and appeared yesterday before United States Magistrate Judge Christian F. Hummel, who ordered Michel detained pending trial.
The charge against Michel carries a maximum sentence of 15 years in prison, a fine of up to $250,000, 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 statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case is being investigated by the FBI’s Capital District Safe Streets Gang Task Force, which includes FBI Special Agents and members of state and local law enforcement agencies, including the Troy Police Department, and is being prosecuted by Assistant U.S. Attorneys Allen J. Vickey and Joshua R. Rosenthal. The U.S. Marshals Service provided valuable assistance with the defendant’s apprehension in this case.
Tonawanda Man Pleads Guilty to Selling Meth and A Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Jason Cartwright, 41, of Tonawanda, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of methamphetamine and possession of firearms in furtherance of drug trafficking, which carry a mandatory minimum penalty of five years in prison, a maximum of life and a $10,000,000 fine.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that in October 2021, Cartwright conspired with others to sell methamphetamine. On November 1, 2021, the Lackawanna Police Department and FBI executed a search warrant at Cartwright’s Dunlop Avenue residence. Investigators seized approximately 1.2 kilograms of methamphetamine, five firearms, loaded magazines, three bulletproof vests, three digital scales, a 2021 Chevrolet Traverse, and $48,367 in United States currency.
The plea is the result of an investigation by the Lackawanna Police Department, under the direction of Chief Mark Packard and the Federal Bureau of Investigation, under the direction of Acting Special Sergeant-in-Charge Michael Stansbury.
Sentencing is scheduled for February 8, 2023, at 10:00 a.m. before Judge Sinatra.
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Toledo Man Sentenced to More Than 21 Years in Prison for Receipt and Distribution of Thousands of Files of Child PornographyRead the Press Release
TOLEDO – Thomas K. Tetreau, 48, of Toledo, Ohio, was sentenced on Monday, Nov. 21, 2022, to more than 21 years in prison by U.S. District Judge Jeffrey J. Helmick after Tetreau pleaded guilty to two counts of receipt and distribution of child pornography.
According to court documents, on Aug. 10, 2021, law enforcement authorities with the United States Secret Service (USSS) executed a search warrant at Tetreau’s Toledo-area residence after an investigation determined that Tetreau had shared numerous files of child pornography over the internet. During the execution of the warrant, authorities seized multiple electronic devices from Tetreau’s residence, including a desktop computer and hard drives that were later found to contain over 220 videos and over 5,600 images of child pornography.
At sentencing, prosecutors raised Tetreau’s criminal history of sexually abusing minors as relevant information for the Court to consider, which includes two separate convictions in the Lucas County Court of Common Pleas for attempted gross sexual imposition of a minor.
This case was investigated by the United States Secret Service (USSS) and was prosecuted by Assistant U.S. Attorney Tracey Ballard Tangeman.
Tobyhanna Man Charged with Drug Trafficking OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Darius Jamal Scott, age 45, of Tobyhanna, Pennsylvania, was indicted by a federal grand jury for drug trafficking offenses involving heroin, fentanyl, and cocaine.
According to United States Attorney Gerard M. Karam, the indictment alleges that from approximately April 2022 until June 15, 2022, Scott conspired with others to distribute heroin, fentanyl, and cocaine in the Monroe County area.
The matter was investigated by Homeland Security Investigations (HSI) and the Pennsylvania Office of the Attorney General’s Bureau of Narcotics Investigations (BNI). Assistant United States Attorney Jeffery St John is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case is also being brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
The maximum penalty under federal law for this offense is 40 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Tennessee State Senator Pleads Guilty to Campaign Finance SchemeRead the Press Release
Tennessee State Senator Brian Kelsey pleaded guilty today to violating campaign finance laws and conspiring to defraud the Federal Election Commission (FEC) as part of a scheme to benefit his 2016 campaign for U.S. Congress.
According to court documents, Kelsey, 44, of Germantown, admitted that he conspired to, and did, secretly and unlawfully funnel money from multiple sources, including his own Tennessee State Senate campaign committee, to his authorized federal campaign committee. Kelsey, who was a practicing attorney, and his co-conspirators, including Joshua Smith, also caused a national political organization to make illegal and excessive contributions to Kelsey’s federal campaign committee by secretly coordinating with the organization on advertisements supporting Kelsey’s federal candidacy, which caused false reports of contributions and expenditures to be filed with the FEC.
Kelsey and his co-conspirators orchestrated the concealed movement of $91,000 – $66,000 of which came from Kelsey’s State Senate campaign committee, and $25,000 of which came from a nonprofit corporation that publicly advocated on legal justice issues – to a national political organization for the purpose of funding advertisements that urged voters to support Kelsey in the August 2016 primary election. Kelsey and his co-conspirators also caused the political organization to make $80,000 worth of contributions to Kelsey’s federal campaign committee in the form of coordinated expenditures.
Kelsey pleaded guilty to conspiracy to defraud the FEC and aiding and abetting the acceptance of excessive contributions on behalf of a federal campaign. He is scheduled to be sentenced on June 9, 2023, and faces a maximum penalty of five years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Joshua Smith pleaded guilty last month to aiding and abetting the solicitation, receipt, direction, transfer, and spending of soft money in connection with a federal election. He is awaiting sentencing.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee, the U.S. Attorney’s Office for the Western District of Tennessee, and Special Agent in Charge Douglas Korneski of the FBI Memphis Field Office made the announcement.
The FBI is investigating the case.
Trial Attorney John Taddei of the Criminal Division’s Public Integrity Section, Assistant U.S. Attorney Amanda Klopf for the Middle District of Tennessee, and Assistant U.S. Attorney David Pritchard for the Western District of Tennessee are prosecuting the case.
Tennessee Home Business Owner Convicted of Filing False Tax ReturnsRead the Press Release
A federal jury convicted a Tennessee man on Nov. 21 of filing false tax returns that omitted income he earned from his business.
According to court documents and evidence presented at trial, David Haley, 65, of Clarksville, owned Haley & Associates Mechanical Contractors, a heating and plumbing business. From 2014 through 2017, Haley & Associates was hired as the subcontractor on commercial projects in middle Tennessee and was paid more than $1,000,000 for each year. The contractors that hired Haley & Associates generally paid via check and reported the payments to the IRS on Forms 1099-MISC as non-employee compensation. Even though Haley personally received a portion of the company’s earnings as business income and nonemployee compensation, he reported earning no income on his 2014-2017 tax returns. By not reporting income on his tax returns for tax years 2015 through 2017, Haley caused the IRS a loss of approximately $186,290.
Haley was convicted of three counts of filing false tax returns for tax years 2015, 2016, and 2017. The jury acquitted Haley of one count of filing a false tax return relating to his 2014 tax filing.
Haley will be sentenced at a later date. He faces a maximum penalty of three years in prison for each of three counts of filing false tax returns. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee made the announcement.
IRS-Criminal Investigation investigated the case.
Assistant U.S. Attorney Kathryn W. Booth and Trial Attorney Mitchell T. Galloway of the Justice Department’s Tax Division are prosecuting the case.
Tarpon Springs Man Charged with Distributing and Possessing Sexual Abuse MaterialsRead the Press Release
Tampa, Florida –United States Attorney Roger B. Handberg announces the return by a grand jury of an indictment charging Ian Grantz (24, Tarpon Springs) with distribution of sexual abuse materials and possession of child sexual abuse materials. If convicted on all counts, Grantz faces a mandatory minimum penalty of 5 years, and up to 20 years in federal prison. The indictment also notifies Grantz that the United States intends to forfeit an iPhone, which is alleged to be traceable to proceeds of the offense.
According to the indictment and court proceedings, an investigation began due to Grantz posting child sexual abuse material images depicting infants and toddlers being sexually abused on his Tumblr account. Agents conducted a residential search warrant, during which Grantz provided his cell phone for forensic review. An analysis of the cell phone revealed additional child sexual abuse material images, including pornographic images of a child living in the Tampa Bay area. Grantz admitted to distributing and possessing child sexual abuse images.
An indictment 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 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.projectsafechildhood.gov.
State Senator Brian Kelsey Pleads Guilty to Campaign Finance ChargesRead the Press Release
NASHVILLE – Tennessee State Senator Brian Kelsey pleaded guilty today to violating campaign finance laws and conspiring to defraud the Federal Election Commission (FEC) as part of a scheme to benefit his 2016 campaign for U.S. Congress.
Kelsey and Joshua Smith, of Nashville, were indicted by a federal grand jury in Nashville in October 2021 and charged with violating multiple campaign finance laws.
According to court documents, Kelsey, 44, of Germantown, admitted that he conspired to and did secretly and unlawfully funnel money from multiple sources, including his own Tennessee State Senate campaign committee, to his authorized federal campaign committee. Kelsey and his co-conspirators, including Joshua Smith, also caused a national political organization to make illegal, excessive contributions to Kelsey’s federal campaign committee by secretly coordinating with the organization on advertisements supporting Kelsey’s federal candidacy and to cause false reports of contributions and expenditures to be filed with the FEC.
Kelsey and the other conspirators orchestrated the concealed movement of $91,000 — $66,000 of which came from Kelsey’s State Senate campaign committee, and $25,000 of which came from a nonprofit corporation that publicly advocated on legal justice issues — to a national political organization for the purpose of funding advertisements that urged voters to support Kelsey in the August 2016 primary election. Kelsey, Smith, and others also caused the political organization to make $80,000 worth of contributions to Kelsey’s federal campaign committee in the form of coordinated expenditures.
Kelsey pleaded guilty to conspiracy to defraud the FEC and aiding and abetting the acceptance of excessive contributions on behalf of a federal campaign. He is scheduled to be sentenced on June 9, 2023 and faces a maximum penalty of five years in prison on each count. Chief U.S. District Court Judge Waverly D. Crenshaw, Jr. will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Joshua Smith pleaded guilty last month to aiding and abetting the solicitation, receipt, direction, transfer, and spending of soft money in connection with a federal election and is awaiting sentencing.
U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee; Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; the U.S. Attorney’s Office for the Western District of Tennessee; and Special Agent in Charge Douglas Korneski of the Federal Bureau of Investigation’s Memphis Field Office made the announcement.
The FBI is investigating the case.
Assistant U.S. Attorneys Amanda Klopf of the Middle District of Tennessee and David Pritchard of the Western District of Tennessee and Trial Attorney John Taddei of the Justice Department’s Public Integrity Section are prosecuting the case.
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St. Louis Man who Carjacked Mother, Infant Sentenced to 11 Years in PrisonRead the Press Release
ST. LOUIS – U.S. District Judge John A. Ross on Tuesday sentenced a man who stole a car at gunpoint from a mother and infant to 11 years in prison.
On Oct. 28, 2021, a woman was placing her infant in a car seat in her 2014 Hyundai Elantra in south St. Louis when Bryant Carless pointed a gun at her and demanded the keys. Carless was spotted by police soon after and then fled from the Elantra. After he was caught, police found the woman’s wallet, keys and a Taurus 9mm pistol, Carless’ plea agreement says.
Carless, now 32, of St. Louis, pleaded guilty in August to one carjacking charge and a charge of possession and brandishing a firearm in furtherance of a crime of violence.
The case was investigated by the St. Louis Metropolitan Police Department and the FBI. Assistant U.S. Attorney Cassandra Wiemken prosecuted the case.
St. Louis County Man Sentenced to 88 Months in Prison for Multiple FraudsRead the Press Release
ST. LOUIS –U.S. District Judge Catherine D. Perry on Tuesday sentenced a man who committed a series of frauds that cost victims $285,998 to 88 months in prison and ordered him to repay the money.
From October 2019 through November 2021, Michael Worsham orchestrated a series of frauds. He bought vehicles using stolen identities, took out bank loans in the names of others and stole checks and then altered and cashed them.
“He was ripping off everyone,” Assistant U.S. Attorney Edward Dowd III said in court.
Worsham admitted using stolen or false identification to buy a 2015 Mustang, a black Chevy Avalanche and a 2021 Suzuki motorcycle. He also paid a friend to use a stolen identity to buy a 2021 Honda motorcycle. He unsuccessfully tried to buy a $17,841 Ford Mustang GT.
Worsham also took out a series of four to five-figure loans, and he altered checks and then deposited them, again reaping thousands of dollars.
Worsham told O’Fallon, Missouri police that he bought stolen personal information online before applying for loans online, estimating that he’d committed $200,000 in fraudulent activity, his plea agreement says. Worsham said he committed fraud to buy drugs and gamble.
Worsham, now 34, pleaded guilty in August to two counts of wire fraud, seven counts of bank fraud and one count of aggravated identity theft.
"Worsham engaged in a multitude of fraudulent activities that not only caused financial hardships and loss of funds to those whose identities he stole, but to businesses and taxpayers as well,” said Special Agent in Charge of Homeland Security Investigations Kansas City Katherine Greer. “These type of crimes are often minimalized by those not directly involved, but often there is a snowball effect that could result in increased fees that are unfortunately then passed along to consumers and taxpayers. HSI and our law enforcement partners are dedicated to seeking criminals, like Worsham, who are victimizing for their own gain.”
The case was investigated by Homeland Security Investigations, aided by a number of police departments including those in Maryland Heights, Arnold, O’Fallon, St. Louis County and St. Louis. Assistant U.S. Attorney Edward Dowd III is prosecuting the case.
St. Louis County Man Admits Possessing MethamphetamineRead the Press Release
ST. LOUIS – A man from St. Louis County on Tuesday admitted selling roughly a pound of methamphetamine per week and now could face up to 20 years in prison.
Justin Vernon Neilsen, 38, pleaded guilty in front of U.S. District Judge Henry E. Autrey to one felony count of distribution of methamphetamine. He admitted that during an investigation of him by the Drug Enforcement Administration, investigators bought 166 grams of methamphetamine from him while he was armed with a handgun.
The Bureau of Alcohol, Tobacco, Firearms and Explosives joined the investigation, and they learned that Neilsen had three storage units in St. Louis. During a court-authorized search of those units, investigators found three rifles, a Kevlar vest, high-capacity magazines, military-style ammunition cans and hundreds of rounds of ammunition. Neilsen was arrested at his home with the help of an ATF K-9. They found 447 grams of methamphetamine and a shotgun. Neilsen told investigators that he sold about one pound of methamphetamine per week, his plea agreement says.
Neilsen is set to be sentenced February 22 and could face up to 20 years in prison.
The case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Charles County Regional Drug Task Force.
This effort is part of an Organized Crime Drug Enforcement Task Force (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.
St. Francis Man Sentenced on Firearm ChargeRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that a St. Francis, South Dakota, man convicted of Prohibited Person in Possession of a Firearm was sentenced on November 21, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Justin Eagle Pipe, age 38, was sentenced to 15 months in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Eagle Pipe was indicted for Prohibited Person in Possession of a Firearm by a federal grand jury in April 2022. He pleaded guilty on August 23, 2022.
On January 1, 2022, Rosebud Sioux Tribal Law Enforcement Services officers conducted a traffic stop of Eagle Pipe’s vehicle due to erratic driving. Officers found Eagle Pipe intoxicated behind the wheel. During a pat down search of Eagle Pipe, officers located a Glock handgun and methamphetamine syringe. Eagle Pipe’s urinalysis was positive for methamphetamine and marijuana. Eagle Pipe was interviewed and admitted to being a regular methamphetamine user. He also admitted that his prior federal felony conviction made it illegal for him to posses firearms.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Eagle Pipe was immediately remanded to the custody of the U.S. Marshals Service.
Springfield, Illinois, Man Sentenced to 120 Months in Federal Prison for Attempted Enticement of a MinorRead the Press Release
SPRINGFIELD, Ill. – A Springfield, Illinois, man, Stacey Furlow, 61, of the 3000 block of North Peoria Road, was sentenced today concurrent terms of 120 months’ imprisonment for attempted enticement of a minor, 60 months’ imprisonment for use of interstate facilities to attempt to transmit information about a minor, and 120 months’ imprisonment for attempted transfer of obscene material to a minor. Upon release from prison, Furlow will serve a five-year term of supervised release.
At the sentencing hearing in front of U.S. District Judge Sue E. Myerscough, the government established that between August 27 and August 29, 2020, Furlow met an individual online whom he believed was a fifteen-year-old child. Despite learning the individual’s age, Furlow discussed engaging in sexual activity with that person, asked for the individual’s address on numerous occasions, and sent inappropriate pictures of himself. On August 29, 2020, after confirming that the person he believed to be a minor was alone, he asked for the child’s address and drove to the residence expecting to engage in sexual conduct; he was then arrested.
Furlow was indicted in September 2020 and was convicted in June 2022 following a two-day jury trial. Furlow has remained in the custody of the U.S. Marshals since his arrest.
The statutory penalties for attempted enticement of a minor are 10 years to life imprisonment, a possible fine of $250,000, and a five-year to life term of supervised release. The statutory penalties for use of interstate facilities to attempt to transmit information about a minor are up to five years’ imprisonment, a possible fine of $250,000, and a five-year to life term of supervised release. The statutory penalties for attempted transfer of obscene material to a minor are up to ten years’ imprisonment, a possible fine of $250,000, and up to a three-year term of supervised release.
The Federal Bureau of Investigation, Springfield Field Office – with assistance from the Sangamon County Sheriff’s Office; U.S. Immigration and Customs Enforcement Homeland Security Investigations; the Springfield Police Department; and the Illinois State Police – investigated the case. Assistant U.S. Attorneys Tanner K. Jacobs and Sierra Senor-Moore represented the government in the prosecution.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Somerset County Man Admits $850,000 Paycheck Protection Program Fraud SchemeRead the Press Release
TRENTON, N.J. – A Somerset County, New Jersey, man admitted fraudulently obtaining over $850,000 in federal Paycheck Protection Program (PPP) loans U.S. Attorney Philip R. Sellinger, announced today.
Butherde Darius, 50, of North Plainfield, New Jersey, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court on Nov. 21, 2022, to an information charging him with one count of conspiracy to commit bank fraud, and one count of money laundering.
According to documents filed in this case and statements made in court:
Darius conspired with at least one individual to submit a fraudulent PPP loan application to a lender on behalf of a purported business that he controlled, obtaining over $850,000. He engaged in various financial transactions with the fraudulently obtained loan proceeds. The application Darius and his conspirator submitted contained fraudulent representations to the lender – a Federal Home Loan Bank member – and the SBA, including bogus federal tax documents purportedly from the IRS. Darius also fabricated the existence of employees and wages paid through the purported businesses. According to IRS records, however, none of the purported tax documents that were submitted in support of the loan applications were ever filed with the IRS. Darius loan application for his purported business was approved for approximately $852,000 in federal COVID-19 emergency relief funds meant for distressed small businesses. Darius then used a portion of the proceeds for various personal expenses.
The count of conspiracy to commit bank fraud carries a maximum penalty of 30 years in prison and a $1 million fine. The count of money laundering carries a maximum penalty of 10 years in prison and a maximum fine of $250,000. Sentencing is scheduled for March 6, 2023.
U.S. Attorney Sellinger credited special agents of IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy L Tomlins; special agents of the Social Security Administration, Office of Inspector General, under the direction of Special Agent in Charge Sharon MacDermott; special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney; postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Acting Inspector in Charge Raimundo Marrero, Philadelphia Division; special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak; special agents of the Board of Governors of the Federal Reserve System Consumer Financial Protection Bureau, Office of Inspector General, under the direction of Acting Special Agent in Charge Stephen Donnelly; special agents of the Federal Deposit Insurance Corporation – Office of Inspector General, under the direction of Special Agent in Charge Patricia Tarasca in New York; and special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel in Newark, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorneys David E. Dauenheimer and Katherine M. Romano of the U.S. Attorney’s Office’s Health Care Fraud Unit in Newark.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Sioux Falls Man Sentenced for Illegal Possession of FirearmRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that a Sioux Falls, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on November 18, 2022, by U.S. District Judge Jeffrey L. Viken.
Sage Yellow Thunder, 31, was sentenced to 48 months in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Yellow Thunder was indicted for Possession of a Firearm by a federal grand jury in June of 2021. He pleaded guilty on July 29, 2022.
In January of 2021, in Rapid City, Yellow Thunder, a previously convicted felon who is prohibited from possessing firearms, knowingly possessed a Remington Arms Company Incorporated, model 1911 R1, .45 AUTO caliber, semi-automatic pistol, which was found after Yellow Thunder came into contact with law enforcement.
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.
This case was investigated by Bureau of Alcohol, Tobacco and Firearms, and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Yellow Thunder was immediately remanded to the custody of the U.S. Marshals Service.
Sioux Falls Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that a Sioux Falls, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on November 21, 2022, by U.S. District Judge Karen E. Schreier.
Ricky Jason Bedlingon, age 43, was sentenced to three years of probation and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Bedlington was indicted by a federal grand jury in September of 2021. He pled guilty on August 29, 2022.
The conviction stems from Bedlington failing to register as a sex offender as required by federal law between May 28, 2021, and May 31, 2021. Bedlington had previously been convicted of a sex offense in state court. Bedlington failed to provide information required by the Sex Offender Registration and Notification Act relating to intended travel to a foreign country.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Second Anchorage Man Sentenced to 35 Years in Federal Prison for Kidnapping and Drug TraffickingRead the Press Release
ANCHORAGE – A second Anchorage man was sentenced late yesterday by Chief U.S. District Judge Sharon Gleason to 35 years in prison for kidnapping and drug trafficking.
According to court documents, Faamanu Vaifanua, aka “Junior,” 31, and his brother Macauther Christmas Vaifanua, aka “Mac,” 35, distributed heroin in the Anchorage area through the kidnapped victim between January 2015 and August 2017.
Believing that the victim had stolen drugs from them, Mac lured the victim to his home on August 13, 2017. As the victim was leaving the residence, he was led instead into the garage where he was forcibly bound and gagged. The victim was then beaten and tortured for nearly an hour by Junior and Mac and two other co-defendants in an assault that was captured on Mac’s home video surveillance system. The Vaifanua brothers and their co-defendants used an aluminum baseball bat, a metal broom stick and their hands and feet to beat the defendant into unconsciousness, causing severe injuries and permanent disability. After a certain point, believing that the victim was either dead or near death, they placed the victim inside a metal dog kennel while still bound and gagged.
The Vaifanua brothers and co-defendants then threatened a person in the area at gunpoint to back his pickup truck to the garage door. The group loaded the kennel into the back of the truck with the victim still in it. The driver was told at gunpoint to leave and never be seen again. After driving away from the area, the driver stopped to see what had been loaded into his truck. Upon seeing the victim, he immediately drove to a hospital emergency room where the victim received life-saving medical attention including brain surgery.
“Junior” Vaifanua pleaded guilty to federal kidnapping and drug trafficking charges in June 2021.
“This was a calculated act of savagery against another human being, not a random act of violence,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “The Vaifanua brothers will spend decades in federal prison for their complete disregard for human life. Drug dealers across the state should take note – vicious attacks will not be tolerated for any reason. My office is committed to working tirelessly with our law enforcement partners to ensure justice is served.”
“The defendant’s cruel disregard to human life and suffering is appalling,” said Assistant Special Agent in Charge Donald W. Lee II of the FBI Anchorage Field Office. “When individuals, such as the defendant and his co-conspirators, threaten the safety of our neighborhoods and communities, they will be met with a certain justice.”
“The abuse suffered by the victim is heinous,” stated Anchorage Police Chief Michael Kerle. “The physical, emotional, and psychological effects of this magnitude of trauma are incomprehensible. It is our sincere hope today’s sentencing will aid in the victim’s life-long healing process.”
Co-defendants in this case include:
- Macauther Christmas Vaifanua, 35, aka “Mac” was sentenced to 50 years in federal prison on kidnapping and drug trafficking charges.
- Jeffrey Ahvan, 33, pleaded guilty to kidnapping in October 2019 and is awaiting sentencing.
- Rex Faumui, 28, pleaded guilty to kidnapping in October 2022 and is awaiting sentencing.
- Tamole Lauina, 25, was sentenced to seven years in prison on being an accessory after the fact charge.
The Anchorage Police Department (APD), the Federal Bureau of Investigation (FBI), U.S Marshals Service (USMS) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated the case.
Assistant U.S. Attorneys Stephan A. Collins and Adam Alexander prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Roswell fentanyl dealer and his supplier sentenced to federal prison for causing overdose deathRead the Press Release
ATLANTA - Hubert Nathans has been sentenced to federal prison for selling fake Roxicodone pills containing fentanyl to multiple people in Roswell, Georgia, in 2017 and 2018, including pills that resulted in the death of one buyer and serious bodily injury to another. Nathans’ drug supplier, Edward Culton, was sentenced to federal prison earlier this year.
“Nathans and Culton remorselessly sought to profit from drug addiction at any cost,” said U.S. Attorney Ryan K. Buchanan. “Their greed resulted in the tragic death of one person and the near-death of another. As the opioid epidemic continues to rage nationwide, these significant sentences should make clear that opioid suppliers and dealers will be held accountable for the devastation they wreak in our communities.”
“Last year, more than 100,000 people died of drug poisoning, many of which were caused by fentanyl – that’s more than double the occupancy of Truist Park” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “These two defendants contributed to this staggering statistic and will therefore spend a lengthy time behind bars.”
“The success of this investigation is a result of the collaborative efforts of ATF and our local partners,” said ATF Assistant Special Agent in Charge Beau Kolodka “ATF will continue to dedicate federal resources in conjunction with the crucial contributions of local agencies towards the eradication illegal drug and firearm activity.
“Each and every pill distributed by Nathans and Culton in our community represented the potential for another life lost. We remain committed to working hand-in-hand with our law enforcement partners to stem the tide of overdose deaths, and to aggressively pursuing the entire criminal ecosystem that contributes to them,” said Roswell Police Chief James Conroy.
According to U.S. Attorney Buchanan, the charges, and other information presented in court: In the fall of 2017, the Roswell Police Department began an investigation after reports that Nathans was distributing opioids that had led to overdoses. Law enforcement eventually confirmed that Nathans was distributing fake Roxicodone pills containing fentanyl and that Edward Culton, who was living in a high-rise apartment in the Buckhead section of Atlanta, was his supplier.
On February 15, 2018, agents arrested Culton and Nathans. Agents seized almost 1000 pills containing fentanyl during a search of Culton’s apartment. The investigation further revealed that Nathans sold fentanyl pills supplied by Culton to 24-year-old T.C. on October 2, 2017, and that those pills caused T.C.’s overdose death.
After learning of T.C.’s death, Nathans egregiously returned to dealing fentanyl and, three months later, sold pills to 30-year-old E.M., who also would have died had she not received emergency treatment at a local hospital.
Hubert Nathans, 33, of Roswell, Georgia, was sentenced by U.S. District Judge Timothy C. Batten, Sr., to 12 years in prison followed by 15 years of supervised release. He was convicted of these charges on August 13, 2018, after he pleaded guilty to conspiring to distribute and possessing with intent to distribute fentanyl that caused overdoses resulting in death and serious bodily injury.
Edward Culton, 29, of Atlanta, Georgia, was sentenced to 18 years, three months in prison to be followed by five years of supervised release. He was convicted of these charges on September 8, 2022, after he pleaded guilty to conspiring to possess fentanyl with intent to distribute and aiding and abetting the distribution of fentanyl.
This case was investigated by the Drug Enforcement Administration, the Roswell Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Assistant U.S. Attorneys Tyler Mann and Nicholas Hartigan prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Rockford Man Convicted of Robbing Banks in Rockford and BelvidereRead the Press Release
ROCKFORD — A federal jury has convicted a Rockford man of robbing banks in Rockford and Belvidere last year.
DEMONTRION DESHAN PHILLIPS, 28, stole $5,930 in a robbery of Midland States Bank, 1700 N. Alpine Rd. in Rockford, on Apr. 7, 2021, and $4,408 in a robbery of Midland States Bank, 600 S. State St. in Belvidere, on May 3, 2021.
After a four-day trial in federal court in Rockford, the jury on Thursday found Phillips guilty of both counts of bank robbery. Phillips faces a maximum sentence of 40 years in federal prison and a total fine of up to $500,000, plus restitution. U.S. District Judge Iain D. Johnston set sentencing for March 16, 2023, at 1:30 p.m.
The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; John S. Morales, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI; Carla Redd, Chief of the Rockford Police Department; and Shane Woody, Chief of the Belvidere Police Department. The government is represented by Assistant U.S. Attorneys Talia Bucci and Vincenza L. Tomlinson.
Evidence at trial showed that Phillips entered the banks posing as a legitimate customer. After handing a deposit slip to the teller, Phillips announced a robbery and demanded money. In the Belvidere robbery, Phillips threatened a teller by saying, “Don’t make me come over the counter,” after the teller did not give Phillips as much money as he demanded.
Three days after the Rockford robbery, law enforcement executed a search warrant at Phillips’s residence in Rockford and found $5,090 in cash hidden in a sock. The cash included numerous bills that were identified by serial numbers as having been stolen from the banks during the two heists.
Phillips committed the robberies while on court-supervised release following a prior federal conviction for robbing two banks in Rockford in 2017.
Quincy, Illinois, Man Sentenced to 120 Months in Prison for Distributing MethamphetamineRead the Press Release
SPRINGFIELD, Ill. – A Quincy, Illinois, man, Michael Bell, 39, of the 800 block of North 8th Street, was sentenced on November 18, 2022, to 120 months’ imprisonment for distributing methamphetamine in Quincy.
At the sentencing hearing in front of U.S. District Judge Sue Myerscough, the government presented evidence that on August 30 and September 2, 2021, Bell knowingly and intentionally distributed 50 grams or more of methamphetamine (actual), a Schedule II controlled substance. Bell has multiple prior drug convictions.
Bell was indicted in October 2021 and pleaded guilty in July 2022. He has remained in the custody of the United States Marshal since his arrest.
The statutory penalties for distributing 50 grams or more of methamphetamine (actual) are up to life imprisonment, up to a $10,000,000 fine, and up to a life term of supervised release.
The West Central Illinois Task Force, Quincy Police Department, and Illinois State Police investigated the case. Assistant U.S. Attorney Matthew Z. Weir represented the government in the prosecution.
The case against Bell 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.
Pittsburgh Man Sentenced to 10 Years for Possessing Crack and FentanylRead the Press Release
PITTSBURGH, PA – A former resident of Pittsburgh’s Troy Hill neighborhood has been sentenced in federal court to 120 months’ imprisonment and six years of supervised release on his conviction of violating federal narcotics laws, United States Attorney Cindy K. Chung announced today.
United States District Judge Cathy Bissoon imposed the sentence on Romeo Price, 34.
According to information presented to the Court, on or about Nov. 15, 2018, detectives executed a state search warrant for Price’s residence. During the search, detectives found plastic bags containing crack cocaine and several bundles and stamp bags containing fentanyl.
Assistant United States Attorney Yvonne M. Saadi prosecuted this case on behalf of the government.
United States Attorney Chung commended the Pittsburgh Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Price.
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 Woman Sentenced to 18 Months in Prison for Pandemic Unemployment FraudRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Alexis Figueroa, age 32, of Philadelphia, was sentenced to 18 months in prison for conspiring to steal pandemic funds. She was sentenced by United States District Court Judge Christopher C. Conner.
According to United States Attorney Gerard M. Karam, Figueroa pled guilty to conspiring with five others to file false claims for unemployment assistance during the pandemic. These defendants gathered personal identification information from inmates housed within the Pennsylvania Department of Corrections system and filed unemployment claims. The payments were mailed to particular addresses in New Cumberland, Pennsylvania, where the funds were accessed. The conspirators arranged for the payment of approximately $94,000 in benefits which they were not entitled to obtain.
Andrew Marszalek, age 24, of New Cumberland, entered a guilty plea to the fraud conspiracy. He was sentenced to 18 months in prison. Nicholas Baggio, age 32, an inmate at the State Correctional Institution at Mahanoy, entered a guilty plea to conspiracy to commit mail fraud. He was sentenced to one year and day in prison. Jeovanny Shultz, age 28, an inmate at the State Correctional Institution at Mercer, entered a guilty plea and is awaiting sentencing. Oscar Martinez, age 30, an inmate at State Correctional Institution at Rockview, has also entered a guilty plea and is awaiting sentencing.
Joshua Powles, age 33, of Philadelphia, is wanted as a fugitive.
The case was investigated by the U.S. Postal Inspection Service and the United States Department of Labor Office of Inspector General. Assistant U.S. Attorney Michael Consiglio is prosecuting the case.
All persons charged are presumed to be innocent unless and until found guilty in court.
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Philadelphia Man Sentenced to 10 Years in Prison for Methamphetamine ConspiracyRead the Press Release
CAMDEN, N.J. – A Philadelphia man was sentenced to 120 months in prison for conspiring to distribute 50 grams or more of methamphetamine, U.S. Attorney Philip R Sellinger announced today.
Nasir White, 30, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of knowingly and intentionally conspiring to distribute and to possess with intent to distribute 50 grams or more of methamphetamine. Judge Kugler imposed the sentence on Nov. 21, 2022, in Camden federal court.
According to documents filed in this case and statements made in court:
On Oct. 9, 2019, White and Shawn McGuriman were arrested with 204 grams of methamphetamine, which they planned to sell to another person. McGuriman previously pleaded guilty to his role in the conspiracy and was sentenced in August 2021 to 10 years in prison.
In addition to the prison term, Judge Kugler sentenced White to five years of supervised release.
U.S. Attorney Philip R. Sellinger credited special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to today’s sentencing.
The government is represented by Deputy U.S. Attorney Andrew Carey of the U.S. Attorney’s Office.
Philadelphia Man Pleads Guilty to Drug ChargesRead the Press Release
PITTSBURGH – A Philadelphia, Pennsylvania, resident pleaded guilty in federal court today to violating federal narcotics laws, United States Attorney Cindy K. Chung announced today.
Zion Elam-Sturgis, age 23, of Philadelphia, pled guilty before United States District Judge Robert J. Colville.
According to information provided to the Court, Elam-Sturgis admitted to conspiring to possess with intent to distribute and distribute 28 grams or more of a mixture and substance containing a detectible amount of cocaine base, in Butler, Pennsylvania, between January 2017 and June 2020; and to possessing with intent to distribute 28 grams or more of a mixture and substance containing a detectible amount of cocaine base on June 2, 2020.
Judge Colville scheduled sentencing to occur on March 21, 2023, at 10:00 a.m. The law provides for a minimum of five years’ imprisonment and a maximum sentence of not more than 40 years in prison and a fine of up to $5,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Yvonne M. Saadi and Craig W. Haller are prosecuting this case on behalf of the United States.
The Pennsylvania State Police, the Federal Bureau of Investigation, and the Butler County District Attorney’s Drug Task Force led the investigation leading to the conviction in this case.
Papillion Man Sentenced for Receipt of Child PornographyRead the Press Release
Acting United States Attorney Steven Russell announced the Ramzi Yassine, 44, of Papillion, Nebraska, was sentenced today by Chief United States District Judge Robert F. Rossiter, Jr. for receipt of child pornography. Yassine was sentenced to 96 months’ imprisonment and was ordered to pay $15,000 in restitution. There is no parole in the federal system. After his release, Yassine will begin a five-year term of supervised release and will be required to register as a sex offender.
On May 1, 2017, the Nebraska State Patrol received a cyber-tip from an internet website known as Chatstep. Chatstep reported that one of its users had an account that uploaded an image identified as child pornography. Chatstep captured the Internet Protocol (IP) address of the identified user that had uploaded the image of child pornography. Law enforcement obtained information related to the IP addresses, which ultimately identified Yassine’s residence as the subscriber. On October 4, 2018, law enforcement executed a search of Yassine’s residence and seized computers. Forensic analysis of the computers found images of minors engaging in sexually explicit conduct. Some of the minors were under the age of 12.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the Nebraska State Patrol.
Owners of Franklin Gun Shop Plead Guilty to Federal ChargesRead the Press Release
NASHVILLE – The owners of Franklin Gun Shop pleaded guilty today in U.S. District Court to obstruction of justice and making false entries regarding the disposition of firearms, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
Alan Hassler, 49, Brian Hassler, 52, and Michael Hassler, 45, all of Franklin, Tennessee, and co- owners of Franklin Gun Shop, a Federal Firearms Licensee (FFL) in Williamson County, Tennessee, were charged in September following a federal regulatory inspection by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
“Proper record keeping is an essential requirement of all Federal Firearms Licensees,” said U.S. Attorney Wildasin. “When the firearms record-keeping process breaks down, the resulting implications can be disastrous and hinder law enforcement’s ability to properly investigate gun crimes or keep firearms out of the hands of violent criminals and disqualified persons. I commend the ATF for their vigorous attention to this matter.”
Court documents reflect that in 2016, the ATF performed a compliance inspection of the Franklin Gun Shop and numerous violations of applicable federal regulations regarding record keeping were found. A follow-up inspection by the ATF in 2020 found that hundreds of firearms, out of the more than 10,000 firearms in Franklin Gun Shop’s inventory, were unaccounted for in the business’s internal records. Over the course of the following year, hundreds of the previously unaccounted-for firearms were located within the business, but as of July 2021, approximately 144 firearms could not be located.
The Hasslers later provided fraudulent documentation to the ATF in an attempt to account for the missing firearms. In many cases, the Hasslers would take a completed, legitimate 4473 form —from a prior purchase — and would add one or more of the missing firearms to the form to make it appear to regulators that these firearms had been purchased as part of that original transaction. The goal was to deceive the ATF into believing that the firearms were not missing but had been sold. Subsequent interviews by the ATF with multiple customers identified on these fraudulent forms established that these customers had not purchased the firearms attributed to them. Several of these customers produced original receipts showing that the missing firearms had not been purchased as the falsified forms indicated.
“ATF’s core mission is to protect the public from violent crime, particularly crimes involving the use of firearms,” said Marcus Watson, Special Agent in Charge of ATF’s Nashville Division. “An essential part of this mission is ensuring that federal firearms licensees comply with applicable federal laws and regulations, particularly the implementing regulations of the Gun Control Act. This FFL committed numerous violations with the intentional disregard of their known legal duty and with plain indifference to their legal obligations. The ATF remains committed to ensuring public safety and compliance and enhancing the traceability of firearms.”
If the plea agreements are accepted by the Court, the Hasslers have agreed to a term of three months of home detention and two years of supervised release. The Hasslers have also surrendered their Federal Firearms License and will complete the audit in progress by the ATF.
Sentencing is scheduled for May 25, 2023.
This case is being investigated by the ATF and prosecuted by Assistant U.S. Attorney Robert E. McGuire.
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Ohio Woman Sentenced to 168 Months for Methamphetamine ConspiracyRead the Press Release
COVINGTON, Ky – A Mason, Ohio, woman, Amanda Baker, 38, was sentenced on Tuesday to 168 months in prison, by U.S. District Judge David Bunning, for conspiracy to distribute 50 grams or more of methamphetamine.
According to her plea agreement, Baker was involved in a conspiracy that distributed multiple kilograms of crystal methamphetamine in Northern Kentucky and Southern Ohio. Law enforcement seized almost two kilograms of crystal methamphetamine from Baker and a co-conspirator, Jeremy Anderson, on April 26, 2021, at a hotel in Covington, Kentucky.
Baker pleaded guilty in August 2022.
Anderson was sentenced to 138 months in prison on August 16, 2022.
Under federal law, each Defendant must serve 85 percent of their prison sentence. Both will also be under the supervision of the U.S. Probation Office for five years after their release from prison.
Carlton S. Shier IV, United States Attorney for the Eastern District of Kentucky; Keith Martin, Special Agent in Charge, DEA Detroit Field Division; Scott Hardcorn, Director of the Northern Kentucky Drug Strike Force; and Brian Valenti, Chief of the Covington Police Department, jointly announced the sentences.
The investigation was conducted by the Drug Enforcement Administration, the Northern Kentucky Drug Strike Force, and the Covington Police Department. The United States was represented by Assistant U.S. Attorney Tony Bracke.
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Ohio Gambling Business Owner Sentenced for Tax Fraud ConspiracyRead the Press Release
A Florida man was sentenced today to 36 months in prison for conspiring to defraud the IRS in connection with his ownership and operation of illegal gambling businesses in the Canton, Ohio area.
According to court documents and statements made in court, from 2009 through 2018, Larry Dayton, along with other co-conspirators, owned and operated two illegal gambling businesses, Skilled Shamrock and Redemption. As part of his guilty plea, Dayton admitted to conspiring with the other owners to defraud the IRS by filing false tax returns that omitted the cash income he received from illegal gambling. In 2013, Dayton stopped participating in the daily operation of the illegal gambling businesses. Between 2013 and 2018, Dayton nonetheless continued to receive his share of the profits from the businesses, in cash, even though he no longer was a declared owner of the enterprises. Dayton also admitted to fraudulently placing the gambling businesses in the names of others to conceal the true ownership interests of the other co-conspirators and himself. In total, Dayton did not report to the IRS more than $2 million in income.
In addition to the term of imprisonment, U.S. District Judge Donald Nugent ordered Larry Dayton to serve three years of supervised release and pay $938,000 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and First Assistant U.S. Attorney Michelle M. Baeppler for the Northern District of Ohio made the announcement.
IRS-Criminal Investigation, the U.S. Department of the Treasury, Office of the Inspector General, the Ohio Casino Control Commission, and the Ohio Casino Control Commission investigated the case. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations provided substantial assistance in the investigation.
Trial Attorneys Richard M. Rolwing and Sam Bean of the Tax Division and Assistant U.S. Attorneys Robert Patton and David Toepfer for the Northern District of Ohio prosecuted the case.
Ohio Company Settles False Claims Act Allegations of Billing for Non-Existent Construction MaterialsRead the Press Release
COLUMBIA, SOUTH CAROLINA — Wise Services Inc. (Wise), located in Dayton, Ohio, has agreed to pay $302,500 to resolve allegations that it violated the False Claims Act by causing the submission of false and fraudulent invoices for non-existent materials to the Department of Energy (DOE) and paying improper kickbacks. The settlement amount was negotiated based on Wise’s lack of ability to pay.
Wise was a subcontractor at the Mixed Oxide Fuel Fabrication Facility at the DOE Savannah River Site in Aiken, South Carolina. The United States alleged that Wise knowingly submitted to the prime contractor — MOX Services LLC, formerly known as CB&I AREVA MOX Services LLC (MOX) — hundreds of invoices charging millions of dollars for materials that did not exist. MOX presented those false invoices to DOE. The United States also alleged that Wise employees paid kickbacks to MOX employees involved in the scheme.
“The government expects both contractors and subcontractors to adhere to their contractual commitments,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Those who violate their commitments and undermine the integrity of the government’s procurement process will face appropriate consequences.”
“This settlement puts subcontractors on notice that they will be held accountable for submitting false invoices and paying kickbacks to contractors on federal contracts with the United States,” said U.S. Attorney Adair F. Boroughs for the District of South Carolina. “We are grateful to the Department of Energy’s Office of Inspector General and the National Nuclear Security Administration for their important work in this case.”
“The lawsuit filed by Justice Department and this settlement will serve as a deterrent to others who seek to defraud the Department of Energy,” said Inspector General Teri L. Donaldson for the Department of Energy. “We are always seeking out those who develop illegal schemes designed to harm the government and the American taxpayers and we will continue to do everything we can to detect and deter these fraudsters.”
The civil settlement includes the resolution of claims against Wise brought under the False Claims Act by the United States in the case captioned United States v. CB&I AREVA MOX Services LLC and Wise Services Inc., No. 19-cv-444 (D.S.C.). MOX paid $10 million in a settlement with the government earlier this year for its participation in the scheme.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of South Carolina, with assistance from the DOE Office of Inspector General and the National Nuclear Security Administration.
The matter was handled by Fraud Section Attorneys Don Williamson and Rory Skaggs, and Assistant U.S. Attorneys Johanna Valenzuela, James Leventis and Sheria Clarke for the District of South Carolina.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
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North Redington Shores Man Pleads Guilty in Murder-For-Hire and Fraud SchemesRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Alexander Lesczcynski (24, North Redington Beach) has pleaded guilty in two cases against him. In a case pending before U.S. District Judge Mary Scriven, Lesczcynski pleaded guilty to wire fraud, bank fraud, and money laundering. In a second case pending before U.S. District Judge James Moody, Lesczcynski pleaded guilty to murder-for-hire and obstruction of justice. Lesczcynski faces a maximum penalty of 30 years in federal prison in the fraud case, and up to, 10 years’ imprisonment in the murder-for-hire case.
According to the court documents, Lesczcynski used fictitious charitable entities, including Love & Bliss, Inc., to engage in numerous frauds. The schemes included fraudulently applying for and receiving two Payroll Protection Plan (“PPP”) loans totaling approximately $195,910, and engaging in a check-kiting scheme and attempting to deposit $2.7 million of worthless checks into the Love & Bliss, Inc. business account. Lesczcynski laundered the proceeds of the PPP and check-kiting schemes through multiple accounts in an effort to conceal those proceeds from the United States and forestall its recovery. The United States ultimately seized $337,000 from an account Lesczcynski controlled and, when he discovered that the money had been frozen, he attempted to have it released by producing a fabricated pardon purportedly signed by former President Donald Trump.
In a separate fraud scheme, Lesczcynski filed fraudulent warranty deeds purporting to deed to himself and his businesses ten properties around the United States collectively valued at more than $300 million. When property owners and attorneys attempted to correct the fraudulent deeds, Lesczcynski responded by sending harassing and threatening letters, emails, and faxes. Among the victims of Lesczcynski’s deed scheme were Victim 1 and Victim 2.
In April 2022, a grand jury in the Middle District of Florida charged Leszczynski with several crimes related to the above-described fraud scheme, including fraud related to the property owned by Victim 1 and Victim 2, in case, United States v. Alexander Leszczynski, 8:22-cr-155-MSS-SPF. He was arraigned on May 17, 2022, and ordered detained.
In August 2022, the FBI became aware that while incarcerated at the Pinellas County Jail, Leszczynski sought out a hitman to kill Victim 1 and Victim 2. Leszczynski reported to a confidential informant that he had $45,000 hidden at his residence available to pay someone to kill the victims. Leszczynski relayed to the confidential informant that his pending criminal case (the fraud case) would have to be dropped if the victims were dead. The confidential informant agreed to put Leszczynski in contact with a purported hitman, who was an undercover agent.
On September 8 and 9, 2022, Lesczcynski had calls with the undercover agent. Among other details, Lesczcynski shared Victim 1 and Victim 2’s name, address, physical descriptions, approximate ages, and provided additional details that would allow the undercover agent to find photographs of Victim 1 and Victim 2 online. Lesczcynski also negotiated price, settled on paying $30,000, and repeatedly ensured the undercover agent that he wanted Victim 1 and Victim 2 dead.
The fraud case was investigated by the Federal Bureau of Investigation, the Largo Police Department, the Indian Shores Police Department, and the Palm Beach Police Department. It will be prosecuted by Assistant United States Attorney Rachel Jones. The murder-for-hire case was investigated by the Federal Bureau of Investigation and the Pinellas County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Shauna S. Hale.
North Chili Man Convicted by A Federal Jury of 37 Counts of COVID Relief FraudRead 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 a federal jury has convicted Michael Rech, 49, of North Chili, NY, of 37 counts of bank fraud, wire fraud, and money laundering. Each charge carries a maximum penalty of 30 years in prison and a fine of $500,000.
Assistant U.S. Attorneys Meghan K. McGuire and Sean C. Eldridge, who handled the prosecution of the case, stated that Rech was the Director, President, and CEO of Guardian of Humanity, Inc., a nonprofit corporation, as well as the sole member of Eclipse, a limited liability company. Rech applied for eight different Payroll Protection Program loans, fraudulently claiming that Guardian and Eclipse had employees and that he had been paying wages to these employees, which qualified him for the PPP loans. In total, he attempted to obtain over $880,000 in PPP funds. Subsequent investigation revealed that Rech’s companies did not have any employees and did not pay wages to anyone. Rech himself was unemployed and collecting unemployment benefits from the State of New York at the time.Rech received three PPP loans totaling approximately $277,500. Once he received the loans, Rech took the money out of the bank in amounts less than $10,000 to avoid federal reporting requirements. The Internal Revenue Service recovered all of the funds from two safes in Rech’s home and a bank account that Rech had sole control over. As a result of the trial, all $277,500 was forfeited back to the government.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29, 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
The verdict is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Thomas Fattorusso, Special Agent-in-Charge, New York Field Office, Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino, the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter, and the Small Business Administration.
Sentencing is scheduled for March 27, 2023, at 9:30 a.m. before U.S. District Judge Charles J. Siragusa, who presided over the trial of the case.
# # # #New Orleans Man Convicted of Drug Trafficking Charges at TrialRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on November 18, 2022 after a four (4) day trial before United States District Judge Eldon E. Fallon, GEORGE BENNETT, aka “G,” 39, from the greater New Orleans area, was convicted of three counts of drug trafficking charges.
At the conclusion of the trial, the jury found BENNETT guilty of conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin and a quantity of fentanyl, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B), and 846, distribution of a quantity of heroin and a quantity of fentanyl, and possession with intent to distribute a quantity of heroin and a quantity of fentanyl, both in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C).
At sentencing, BENNETT faces a mandatory minimum term of imprisonment of 10 years, a maximum term of life imprisonment, up to a $10,000,000 fine, and at least 5 years supervised release. BENNETT must also pay a mandatory special assessment fee of $100 for each count of conviction at sentencing. Sentencing in this matter is to be determined at a later date by the Court.
The case was investigated by the Jefferson Parish Sheriff’s Office and the Federal Bureau of Investigation New Orleans Gang Task Force. It was prosecuted by Assistant United States Attorneys André Jones, Melissa Bücher, and Christopher D. Usher of the U.S. Attorney’s Office.
New Jersey Man Sentenced to 57 Months in Prison for Threatening Federal Law Enforcement OfficersRead the Press Release
NEWARK, N.J. – A New Jersey man was sentenced to 57 months in prison for threatening to assault and murder federal law enforcement officers, U.S. Attorney Philip R. Sellinger announced today.
Frank Monte, 51, of New Jersey, was previously convicted following a one-week trial before U.S. District Judge John Michael Vazquez of three counts of threatening a federal law enforcement officer, and of two counts of transmitting threats in interstate commerce. Judge Vazquez imposed the sentence on Nov. 21, 2022, in Newark federal court.
According to documents filed in the case and the evidence at trial:
On July 21, 2019, Monte repeatedly called the emergency line of the U.S. Department of Veterans Affairs (VA) Police at the VA Lyons hospital campus. During one of those calls, Monte threatened to “shoot up” a VA Police officer. On Oct. 15, 2019, Monte called the office of a U.S. Congressman and spoke with a staff member. During that call, Monte threatened that if he ever saw a particular special agent of the U.S. Secret Service in New Jersey, Monte would assault him. On Oct. 18, 2019, Monte called a special agent of the U.S. Capitol Police. During that call, Monte once again threatened to assault the same special agent of the U.S. Secret Service.
In addition to the prison term, Judge Vazquez sentenced Monte to three years of supervised release.
U.S. Attorney Sellinger credited special agents of the U.S. Secret Service, Newark Field Office, under the direction of Special Agent in Charge Jose Riera, with the investigation leading to today’s sentencing. He also thanked the U.S. Department of Veterans Affairs Police, VA New Jersey Health Care System, under the direction of Acting Chief Minelli Torres-Sukola; members of the U.S. Capitol Police, Threat Assessment Section, under the direction of Assistant Special Agent in Charge Chad Beckett; members of the U.S. Marshals Service, under the direction of Marshal Juan Mattos Jr.; and members of the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Anthony P. Torntore and Assistant U.S. Attorney Andrew M. Trombly of the Cybercrime Unit in Newark.