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Tuesday 11 October 2022
Armed Wilmington Drug Trafficker Sentenced to 12 Years in PrisonRead the Press Release
RALEIGH, N.C. – Massimo Campana, 31, of Wilmington, was sentenced last week to 144 months in prison for armed drug trafficking. On May 25, 2022, Campana pleaded guilty to Possession with Intent to Distribute a Quantity of a Substance containing Methamphetamine and Possession of a Firearm in Furtherance of a Drug Trafficking Crime. The investigation uncovered that from August 2021 until the time of his arrest, Campana took part in a conspiracy that was responsible for the distribution of more than 3 kilograms of methamphetamine. Campana was on federal supervised release at the time he committed these offenses.
“This is yet another example of the collaboration between federal, state and local law enforcement to disrupt the drug trafficking organizations that are engaged in violence in our communities,” said U.S. Attorney Michael Easley. “We are successfully investigating and prosecuting these cases to put violent criminals behind bars.”
“Fighting the threat of illegal firearms and dangerous narcotics is always a joint effort,” said Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Bennie Mims. “ATF’s work with our local law enforcement partners, along with our U.S. Attorney, continues to take these threats out of our communities and better public safety.”
“I am very proud of the men and women of the Wilmington Police Department for making this arrest and getting this violent criminal off the streets. I also would like to thank the United States Attorney’s Office and our partner agencies both local, state, and federal who work with us consistently to put these individuals behind bars. We are committed to reducing violence within our community and will continue to work tirelessly to get drugs off of our streets to create a safe environment for all,” said Wilmington Police Chief Donny Williams.
According to court documents and other evidence presented in court, on September 15, 2021, an ATF undercover agent made a controlled purchase of an ounce of methamphetamine from Campana at a business in Brunswick County. During the deal Campana bragged about the potency of his methamphetamine.
On October 20, 2021, a Wilmington Police Officer observed Campana driving a car with a fictious tag leaving a hotel on Market Street. The officer attempted to stop the car. Campana refused to stop and traveled at speeds in excess of 70 miles an hour on the city streets in an attempt to elude law enforcement. When law enforcement finally boxed in Capana at the intersection of Wrightsville and South College Road, Campana put his car in reverse and rammed a police vehicle. An officer had to break the driver side window to remove Campana from his car at gun point as he attempted to flee the scene. During of a search of Campana, officers found a quantity of methamphetamine and a loaded .380 caliber handgun.
This is part of operation “Golfer” which is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, 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.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Bureau of Alcohol, Tobacco and Firearms, Drug Enforcement Administration, the New Hanover and Brunswick County Sheriffs’ Offices and the Wilmington Police Department investigated the case and Assistant U.S. Attorney Gabe Diaz and Timothy Severo prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:22-CR-00027-BO.
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Anderson Community School Corporation Bookkeeper Charged with Embezzling nearly $1 Million over More than Five YearsRead the Press Release
INDIANAPOLIS – Carla Burke, 62, of Anderson, Indiana, has been charged with wire fraud, and will make her initial appearance before a Magistrate Judge in federal court in Indianapolis in the coming weeks.
The Anderson Community School Corporation (“ACSC”) is a public school corporation in charge of at least ten public schools in Anderson, Indiana. As part of its operations, ACSC employs teachers, administrators, coaches, custodians, and other professionals, and is responsible for the education of more than 6,000 children. Burke was the ACSC Food Service Department’s Bookkeeper. As part of her duties, Burke maintained the financial records for the Food Service Department. Burke was also responsible for issuing checks on behalf of ACSC approved by her supervisor.
According to court documents, between January 1, 2014, and June 30, 2019, Burke used her position as a bookkeeper for ACSC to embezzle nearly $1 million from the school corporation. Rather than submit legitimate vendor expenses, Burke issued approximately 312 checks to herself from ACSC totaling $976,773.29. To conceal her theft, Burke falsified ACSC records making it appear that the payments were to an ACSC vendor. Burke used the stolen funds for her own personal expenditures, including gambling at several casinos. Burke also willfully failed to report approximately $225,381 in income she derived from the scheme on her tax returns and lied to federal agents when questioned about her illegal conduct.
If convicted, Burke faces up to 20 years in federal prison. Actual sentences are determined by a federal district court judge and are typically less than the maximum penalties.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana; Herbert J. Stapleton, Special Agent in Charge of the Federal Bureau of Investigation’s Indianapolis Field Office; and Paul Joyce, State Examiner of the Indiana State Board of Accounts; made the announcement.
U.S. Attorney Myers thanked Assistant United States Attorney Tiffany J. Preston, who is prosecuting this case.
An Information is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
30-Year-Old Tucson Woman Sentenced to 18 Months for Smuggling Illegal AliensRead the Press Release
TUCSON, Ariz. – On September 29, 2022, Dominque Trinidad Valdez-Velasquez, 30, of Tucson, Arizona, was sentenced by United States District Judge Rosemary Márquez to 18 months in prison, followed by 36 months of supervised release. Valdez-Velasquez previously pleaded guilty to Transporting Illegal Aliens, Placing in Jeopardy the Life of Any Person.
Valdez-Velasquez was arrested on December 29, 2021, during an immigration checkpoint traffic stop near Amado, Arizona. At the checkpoint, a United States Border Patrol canine alerted agents to the trunk of Valdez-Velasquez’ vehicle. When the agents asked Valdez-Velasquez to open the trunk, they discovered four undocumented noncitizens from Mexico. According to court documents, after traveling for an hour, the noncitizens were left in the trunk, unable to move or leave, for more than four hours while Valdez-Velasquez slept in a hotel.
Customs and Border Protection’s U.S. Border Patrol conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-22-0173-TUC-RM-LCK
RELEASE NUMBER: 2022-173_Valdez-Velasquez# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
23 Ohioans indicted as part of narcotics distribution ring involving bulk amounts of fentanyl, crack cocaine, cocaine, methamphetamine & other narcoticsRead the Press Release
COLUMBUS, Ohio – The government added 12 defendants and 28 new charges to a federal narcotics conspiracy case that now charges 23 total individuals.
A multi-agency law enforcement task force initially announced the case in July after a federal grand jury indicted 11 defendants for distributing bulk amounts of fentanyl, cocaine, and crack cocaine in central Ohio within 1,000 feet of a Columbus elementary school.
A superseding indictment unsealed Friday now charges additional co-conspirators with distributing those same drugs in addition to methamphetamine, heroin, marijuana, Xanax and Oxycodone.
According to the 42-count superseding indictment, from at least January 2008 until 2022, the drug trafficking organization sold drugs out of local West side Columbus residences to customers and distributed larger amounts to regional drug traffickers who then trafficking those narcotics to places such as West Virginia and the Northern District of Ohio.
Most of the alleged drug dealing took place within 1000 feet of Burroughs Elementary School in Columbus.
The indictment also alleges two defendants distributed fentanyl and crack cocaine that initially resulted in serious bodily harm to the victim, who ultimately died of an overdose.
As part of this case, local, state, and federal law enforcement officers have executed more than 20 search warrants at various locations throughout Central Ohio and seized more than $1.7 million in alleged drug proceeds. For example, while executing a search warrant at Car-Go storage units, law enforcement officials discovered at least $1.2 million in cash. Searches of residences yielded 47 firearms, diamonds, Rolex watches and additional bulk amounts of cash.
Those originally charged include:
Name
Age
City of Residence
Cordell A. Washington, aka Corey, Dub, Bro
35
Columbus, Ohio
Patrick M. Saultz, aka White Boy Pat
44
Columbus, Ohio
David E. Price, aka DP
53
Columbus, Ohio
Allison E. Smith, aka Alli
27
Columbus, Ohio
Tavaryyuan Johnson, aka Gucci
22
Columbus, Ohio
Tyler N. Bourdo
28
Columbus, Ohio
Alexis C. Lewis
30
Columbus, Ohio
Michael Fowler
45
Canton, Ohio
Carmela Brooks
48
Canton, Ohio
Dustin A. Speakman, aka Dawg
32
Columbus, Ohio
Danny G. Mullins
53
Columbus, Ohio
Defendants added in the superseding indictment unsealed today include:
Name
Age
City of Residence
Robert E. Tinsley, III, aka Cam
22
Columbus, Ohio
Priscilla L. Washington
58
Columbus, Ohio
Lauren E. Brezney
29
Shallotte, N.C./Columbus, Ohio
Brittany A. Williams
36
Columbus, Ohio
Gabriel R. Smith, aka Gabe
34
Canal Winchester, Ohio
Robert L. Pyles, aka Pork
45
Columbus, Ohio
Mitchell A. Powers
33
Columbus, Ohio
Vincent T. Griffin
50
Reynoldsburg, Ohio
Caitlin R. Duff
27
Columbus, Ohio
Michael D. Burton
39
Columbus, Ohio
Brian K. Long, II
32
Columbus, Ohio
Anthony B. Frierson, aka Royal
31
Columbus, Ohio
Twenty-two defendants are charged with conspiring to distribute and possess with intent to distribute fentanyl, cocaine, cocaine base, methamphetamine, heroin, marijuana, Xanax and Oxycodone. The narcotics conspiracy is punishable by at least 10 years and up to life in prison.
U.S. Attorney Kenneth L. Parker commended the investigation coordinated by Ohio Attorney General Dave Yost’s Ohio Organized Crime Investigations Commission task force, which includes Columbus Division of Police Chief Elaine Bryant; Angie Salazar, Special Agent in Charge, Homeland Security Investigations; and Orville O. Greene, Special Agent in Charge, U.S. Drug Enforcement Administration. Other agencies that have assisted the task force with the investigation include the Franklin County Sheriff's Office, HIDTA Task Force, IRS-Criminal Investigation, FBI, Ohio Bureau of Criminal Investigations (BCI), Ohio National Guard Counter Drug Task Force, Pickerington Police Department, New Albany Police Department, and the Fairfield County Sheriff's Office SWAT Team.
Assistant United States Attorneys Timothy Prichard and Emily Czerniejewski are representing the United States in this case.
This investigation 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.
Indictments merely contain allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Monday 10 October 2022
U.S. Attorney hosts public safety Tribal ConsultationRead the Press Release
ALBUQUERQUE, N.M. – On Oct. 5, Alexander M.M. Uballez, the United States Attorney for the District of New Mexico, hosted delegations from the Pueblo of Acoma, Pueblo of Isleta, Pueblo of Laguna, Pueblo of Nambé, Pueblo of Pojoaque, Ohkay Owingeh, Pueblo of Sandia, Pueblo of Santa Ana, Pueblo of San Felipe, Pueblo of Zuni, Mescalero Apache Tribe, Navajo Nation, Bureau of Indian Affairs, and the Coalition to Stop Violence Against Native Women in a Special Session Tribal Consultation held in Albuquerque.
The Special Session was the beginning of an ongoing conversation with Tribal law enforcement partners about public safety efforts in Tribal Territories. The Tribal delegations provided comment and recommendations regarding the demand for additional resources to combat violence against women, youth and children, the necessity of more flexible intake criteria and support for drug trafficking investigations, and the need for additional training.
“On Indigenous Peoples’ Day, and every day, the United States Attorney’s Office is committed to working alongside, and learning from our Tribal partners, with respect, sincerity and a shared interest in the wellbeing of our community,” said U.S. Attorney Uballez. “Indigenous knowledge through Tribal consultation is at the heart of this effort. Our approach will be victim-centered, trauma-informed, and culturally sensitive. Everyone deserves to feel safe in their community and confident that law enforcement will be vigilant in the investigation of crimes against community members.”
One of the new initiatives to address public safety in Indian Country is the assignment of an individual AUSA liaison to each Tribal community in the state of New Mexico. The Special Session was an opportunity for Tribal leaders and law enforcement to meet with their Tribal liaison and address the U.S. Attorney. Representatives from each Pueblo, Tribe and Nation in attendance provided comments relating to issues unique to their communities as well as issues common throughout the District of New Mexico.
U.S. Attorney Uballez, Executive Assistant U.S. Attorney Aja Brooks, Criminal Chief Kristopher Houghton, Indian Country Crimes Section Supervisor Elisa Dimas along with Tribal Liaisons Kyle Nayback, Eliot Neal, Alexander Flores, Nicholas Marshall, Brittany DuChaussee, Mark Pfizenmayer, Matthew McGinley, and Novaline Wilson, as well as Law Enforcement Coordinator Alyssa Skrepcinski received the comments. The U.S. Attorney’s Office will incorporate the comments into an Operational Plan to address public safety in Indian Country.
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Homeland Security Investigations Recognizes Asheville Federal Prosecutor for Her Work Combating Child ExploitationRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Dena J. King announced today that Homeland Security Investigations (HSI) has awarded Assistant U.S. Attorney (AUSA) Alexis I. Solheim the agency’s “Assistant U.S. Attorney of the Year” award, for her exemplary work in child exploitation cases investigated and prosecuted in the Western District of North Carolina. HSI’s recognition ceremony was held on Friday, October 7, 2022.
“The protection of the most vulnerable among us is a priority for my Office and the Justice Department,” said U.S. Attorney King. “AUSA Solheim is tasked with bringing to justice individuals who harm innocent children, which are often some of the most difficult and challenging cases handled by federal prosecutors. Through her legal work and advocacy, AUSA Solheim has demonstrated exemplary legal skill and professionalism, advocating for crime victims and holding offenders accountable for their actions. I am proud of AUSA Solheim’s achievement and I commend her for her legal successes and her work focusing on prevention and intervention.”
AUSA Solheim is a federal prosecutor in the Criminal Division of the U.S. Attorney’s Office in Asheville and serves as the Western District’s Project Safe Childhood Coordinator. In this capacity, AUSA Solheim is responsible for the investigation and prosecution of cases involving the sexual exploitation and abuse of minors. Launched by the Department of Justice in 2006, Project Safe Childhood is a nationwide initiative to combat the growing epidemic of child sexual abuse and exploitation. Led by the U.S. Attorneys’ Offices and the Justice Department’s 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.
The HSI award recognizes AUSA Solheim for her outstanding work in numerous federal criminal prosecutions involving the production, receipt and distribution of child pornography, “traveler” or enticement crimes, and online child exploitation cases, among others. In addition to prosecuting federal matters, as the District’s Project Safe Childhood Coordinator, AUSA Solheim conducts trainings of federal, state, and local law enforcement agencies on how to investigate and prosecute computer-facilitated crimes against children. AUSA Solheim also participates in community education programs, in order to raise awareness about the threat of online sexual predators and to provide the tools and information to children and parents on how to protect children and report possible violations.
AUSA Solheim began her career in public service in 2014, when she joined the U.S. Attorney’s Office as a Special Assistant U.S. Attorney (SAUSA), working on criminal and civil matters in federal court. Ms. Solheim then became an Assistant District Attorney in Buncombe County, where she prosecuted state criminal offenses. In 2018, Ms. Solheim returned to federal prosecution as a SAUSA with North Carolina’s 43rd Prosecutorial District until 2021, when she was hired to serve as an Assistant U.S. Attorney for the Western District of North Carolina.
AUSA Solheim received her undergraduate degree from the University of South Carolina and her law degree from the Campbell University School of Law.
Friday 7 October 2022
Yukon Man Pleads Guilty to Computer Access Fraud in Connection with Scheme to Misrepresent FAA Mechanic Certification to Local Aviation CompanyRead the Press Release
OKLAHOMA CITY – GORDON BELLAMY, JR., 42, of Yukon, Oklahoma, pleaded guilty earlier this week to computer access fraud, announced U.S. Attorney Robert J. Troester.
On August 17, 2022, a federal grand jury returned a three-count indictment against Bellamy for alleged offenses while he was employed by Ally Aerospace Services as a contractor for AAR Corporation. The Indictment alleged that Bellamy worked as an aircraft maintenance mechanic at the Will Rogers World Airport in Oklahoma City and that he supervised mechanic crews responsible for removing and reattaching panels as part of the maintenance of commercial aircraft. Under Federal Aviation Administration ("FAA") regulations, supervising employees must be certified Airframe and Powerplant mechanics. According to the Indictment, in October of 2018, Bellamy illegally accessed an FAA database that contained records of all Airframe and Powerplant mechanic’s certificates, obtained a certificate belonging to another licensed mechanic, and falsely presented it to his employer as his own.
Count 1 charged Bellamy with wire fraud, and Count 2 charged him with computer access fraud. Count 3 alleged Bellamy committed aggravated identity theft.
On October 3, 2022, Bellamy pleaded guilty to computer access fraud before U.S. District Judge Jodi W. Dishman. As part of the plea hearing, Bellamy admitted that he intentionally accessed an FAA computer and obtained information from the FAA in furtherance of his scheme to defraud his employer, by misrepresenting himself as a certified Airframe and Powerplant mechanic.
At sentencing, Bellamy will face up to five years’ imprisonment and a fine of $250,000, followed by up to three years of supervised release. As part of the plea agreement, the government has agreed to dismiss at sentencing the remaining counts of the indictment. A sentencing date will be set by the court. Bellamy has been in federal custody since his arrest on August 23, 2022.
This case is a result of an investigation by the United States Department of Transportation-Office of the Inspector General. It is being prosecuted by Assistant U.S. Attorney Danielle London.
Reference is made to court filings for further information.
Westfield Woman Indicted for Alleged Hoax Bomb Threat Made to Boston Children's HospitalRead the Press Release
BOSTON – A Westfield woman has been indicted by a federal grand jury in connection with a hoax bomb threat made against Boston Children’s Hospital.
Catherine Leavy, 37, was indicted on one count of making a false bomb threat and one count of intentionally conveying false or misleading information that a bomb was on the way to Boston Children’s Hospital. Leavy was previously arrested and charged by criminal complaint on Sept. 15, 2022 with one count of explosive materials - willfully making a false bomb threat. She will appear in federal court at a later date.
According to the charging documents, in August 2022, agents began monitoring threats made against Boston Children’s Hospital and its employees. Among the wide range of healthcare services it provides, Boston Children’s Hospital is home to the Gender Multispecialty Service (GeMS) program – the first major healthcare program in the United States to focus on gender-diverse and transgender adolescents.
On Aug. 30, 2022, Boston Children’s Hospital received a telephonic bomb threat. As a result of the call, the hospital and surrounding area was placed on lockdown status and a bomb squad was dispatched. An investigation determined no explosive devices were located at the Hospital. Law enforcement obtained subscriber and call detail records and location information for the phone number that called in the bomb threat. According to court documents, the phone number was subscribed in Leavy’s name and cell tower data indicated the phone was nearby Leavy’s residence at the time the bomb threat was made.
During a search of Leavy’s residence on Sept. 15, 2022, the phone allegedly used to make the threat from Leavy’s residence was recovered.
The charge of making a false bomb threat provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. The charge of intentionally conveying false or misleading information provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Boston Police Commissioner Michael Cox made the announcement. Valuable assistance was provided by the Westfield Police Department. Assistant U.S. Attorneys Nadine Pellegrini and Jared C. Dolan, Chief and Deputy Chief of Rollins’ National Security Unit, respectively, are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Waupaca Man Sentenced to 9 Years for Methamphetamine TraffickingRead the Press Release
MADISON, WI. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Justin Baumgardt, 37, formerly of Waupaca, Wisconsin was sentenced today by Chief U.S. District Judge James D. Peterson to 9 years in federal prison for possessing 50 grams or more of methamphetamine with the intent to distribute. This prison term will be followed by 5 years of supervised release. Baumgardt pleaded guilty to these charges on June 29, 2022.
On May 26, 2021, Baumgardt traveled to Barron County, Wisconsin after agreeing to sell three ounces of methamphetamine to a confidential informant. When Baumgardt arrived at the location of the anticipated drug deal, law enforcement officers made contact with him and searched his car. Inside the car, officers found bags containing a total of 116 grams of methamphetamine.
At the time he was arrested, Baumgardt was on active state extended supervision for robbery with use of force and was also out on bond for an open state drug trafficking case from 2019.
Baumgardt was later interviewed by law enforcement officers. He admitted to trafficking methamphetamine and estimated distributing approximately 40 pounds of methamphetamine in Wisconsin.
At sentencing, Chief Judge Peterson noted Baumgardt’s methamphetamine dealing was very destructive to the community. Chief Judge Peterson highlighted Baumgardt’s prior criminal history, which included acts of violence and poor performance while on supervision.
The charge against Justin Baumgardt was the result of an investigation conducted by the Barron, Rusk, and Washburn County Sheriffs’ Offices and the Wisconsin Department of Justice Division of Criminal Investigation. Assistant U.S. Attorneys Zachary J. Corey and Steven P. Anderson prosecuted the case.
Watertown Woman Pleads Guilty to Bank FraudRead the Press Release
SYRACUSE, NEW YORK – Carrie Wetherell, 44, of Watertown, New York, pled guilty to one count of bank fraud related to her scheme to withdraw and spend the Supplemental Security Income (SSI) benefits of a deceased relative.
The announcement was made by United States Attorney Carla B. Freedman and Sharon B. MacDermott, Special Agent in Charge of the Social Security Administration, Office of the Inspector General, New York Field Office.
As part of her guilty plea, Wetherell admitted to using her deceased relative’s identity and ATM card to withdraw SSI benefits that had been deposited into the relative’s bank account after her death. At the same time Wetherell withdrew these funds, she was also receiving Temporary Assistance and Supplemental Nutrition Assistance Program (SNAP) benefits from the Jefferson County Department of Social Services. However, she failed to disclose the money she withdrew from her deceased relative’s account knowing that such disclosure would disqualify her from receiving those benefits. As part of her plea, Wetherell agreed to pay $85,980.05 in restitution to the Social Security Administration and the Jefferson County Department of Social Services and agreed to a forfeiture money judgment in the amount of $6,194.00.
At sentencing, currently scheduled for February 9, 2023, Wetherell faces a maximum term of imprisonment of thirty years, a fine of up to $1,000,000, and a term of supervised release of up to five years. A defendant’s sentence is imposed by a judge based on the statute the defendant is convicted of violating, the U.S. Sentencing Guidelines, and other factors.
This case is being investigated by the Social Security Administration Office of the Inspector General and is being prosecuted by Special Assistant U.S. Attorney Paul J. Tuck and Assistant United States Attorney Adrian S. LaRochelle.
Waterloo Man Who Fled from Police with Stolen Gun and Later Shot at a House Sentenced to 103 Months in Federal PrisonRead the Press Release
A man who fled from police while in possession of a stolen and loaded gun and then, three weeks later, shot a different gun at the house of someone with whom he was angry, was sentenced today to more than eight years in federal prison.
Ivan Luckett Clay Jr., age 22, from Waterloo, Iowa, received the prison term after a May 2, 2022 guilty plea to carrying a firearm during and in relation to a drug-trafficking crime and being a felon in possession of a firearm. Clay has a prior felony conviction for possessing marijuana with the intent to deliver it.
Evidence at the sentencing hearing demonstrated that, in April 2021, Clay possessed a stolen and loaded firearm, along with marijuana, in Waterloo. He was driving a car through Waterloo, with the firearm and a pound of marijuana, when law enforcement stopped his car. Clay fled from the police, crashed the car into a tree, and then continued to flee on foot until he was detained by officers. Three weeks later, using a different gun, Clay shot five times at a home of someone with whom he was angry, to scare them. Officers then searched Clay’s home and found the gun, over a pound of marijuana, and more than $4,000 in cash.
Clay was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Clay was sentenced to 103 months’ imprisonment and must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system. Clay is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Devra Hake and Assistant United States Attorneys Lisa Williams and Kyndra Lundquist. It was investigated by a Federal Task Force composed of the Waterloo Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department.
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.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-2061.
Follow us on Twitter @USAO_NDIA.
Victor Man Pleads Guilty to Defrauding the IRSRead the Press Release
Des Moines, IA – A Victor, Iowa man pleaded guilty on October 5, 2022, to conspiracy to defraud the United States.
According to court documents, Daniel Shawn DeRycke, age 59, admitted he conspired with one or more other persons to impede and obstruct the Internal Revenue Service in the assessment and collection of income taxes. DeRycke admitted that from April 2017 to March 2019, through his business, DeRycke’s Crop Depot, he engaged in conduct to help customers reduce income tax owed by accepting backdated checks, generating false expense invoices, and exchanging checks to give the appearance of an expense that was not in fact incurred by the customers.
DeRycke is scheduled to be sentenced on February 3, 2023 and faces up to 5 years in prison. DeRycke has agreed to pay restitution in the amount of $189,919. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
“This investigation is evidence to criminals that you cannot falsify figures on your own tax returns, let alone aid others with documents to bolster lies to the federal government on their tax returns,” said IRS Criminal Investigation Acting Special Agent in Charge Charles Miller. “IRS Criminal Investigation special agents will continue to be on the front lines to defend the American tax system from fraud and deception.”
U.S. Attorney Richard D. Westphal of the Southern District of Iowa and the Internal Revenue Service made the announcement.
The Internal Revenue Service, United States Department of Agriculture – Office of Inspector General, and the Federal Bureau of Investigation are investigating the case.
United States Attorney’s Office for the Western District of Tennessee Observes Domestic Violence Awareness MonthRead the Press Release
Memphis, TN –United States Attorney Kevin G. Ritz joins the Department of Justice, the Office on
Violence Against Women (OVW), advocates, survivors, victim service providers, justice
professionals, police and first responders, and communities across the
U.S. in observing October as Domestic Violence Awareness Month (DVAM).Domestic violence is more prevalent than many realize. The devastating consequences of domestic
violence can cross generations and last a lifetime. Approximately one in four women and one in
seven men will experience severe domestic violence in their lifetimes; however, rates are
disproportionately higher for American Indian and Alaska Native populations, women of Color,
lesbian, gay, bisexual, transgender, queer, intersex, and two-spirit people, and people with
disabilities. DVAM provides an opportunity to spread awareness about domestic violence and
encourage everyone to play a role in ending gender-based violence.“Domestic Violence Awareness Month is an opportunity for our Office to remind the communitythat we
are here and available to support victims and survivors of the Western District,” said United
States Attorney Kevin G. Ritz.Purple Thursday is a National Day of Action during DVAM. It is an opportunity to raise awareness
about domestic violence and an easy way for us to show our commitment to promoting safe
communities. Please join us on October 20 by wearing purple and starting a conversation about
domestic violence!
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For more information, please contact Public Information Officer Cherri Green at (901) 544-4231 or [email protected]. Follow @WDTNNews on Twitter for office news and updates.U.S. Attorney Announces Extradition of Malaysian National for Large-Scale Trafficking of Rhinoceros HornsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Edward J. Grace, Assistant Director for the U.S. Fish and Wildlife Service Office of Law Enforcement, announced today that TEO BOON CHING, a/k/a “Zhang,” a/k/a “Dato Sri,” a/k/a “Godfather,” was charged for participating in a conspiracy to traffic in more than 70 kilograms of rhinoceros horns valued at more than $725,000 that involved the illegal poaching of numerous rhinoceros, an endangered wildlife species. In addition, CHING was charged with laundering the proceeds of his illegal rhinoceros horn sales. CHING, a citizen of Malaysia, was arrested in Thailand on June 29, 2022, at the request of the United States pursuant to our bilateral extradition treaty. CHING was extradited to the United States earlier today and will appear before Magistrate Judge Gabriel W. Gorenstein this afternoon. The case has been assigned to U.S. District Judge Paul A. Crotty.
Earlier today, CHING and his associated entities were sanctioned by the U.S. Treasury Department Office of Foreign Assets Control (OFAC) pursuant to E.O. 13581, as amended.
U.S. Attorney Damian Williams said: “Teo Boon Ching is alleged to be the leader of a transnational criminal enterprise trafficking in rhinoceros horns, enriching poachers responsible for the senseless illegal slaughter of numerous endangered rhinoceros, and furthering the market for these illicit products. The protection of endangered wildlife and the preservation of our natural resources is an important priority for this Office. Thanks to the tireless efforts of the U.S. Fish and Wildlife Service, this defendant has been caught and brought to the United States to answer for his alleged crimes.”
U.S. Fish and Wildlife Service Office of Law Enforcement Assistant Director Edward J. Grace said: “This extradition is a major success for wildlife and people. Thanks to our federal and international partners, this wildlife trafficker now will have his day in court. Wildlife traffickers run complex international criminal enterprises that require a multinational law enforcement effort to investigate, arrest and prosecute them for their crimes. I laud the efforts of our special agents, the U.S. Department of Justice, U.S. Department of State Office of Foreign Assets Control, and especially the Royal Thai Police for their commitment in addressing this global problem that is pushing many species to extinction.”
As alleged in the Superseding Indictment unsealed today in Manhattan federal court:[1]
CHING was the leader of a transnational criminal enterprise (the “Enterprise”) based in Asia with significant operations in Malaysia and Thailand which engaged in the large-scale international trafficking and smuggling of rhinoceros horns resulting from the poaching of numerous endangered rhinoceros. Trade involving endangered or threatened species violates several U.S. laws as well as international treaties implemented by certain U.S. laws. CHING served as a specialized smuggler, transporting rhinoceros horns from rhinoceros poaching operations primarily in Africa to the eventual customers primarily in Asia. CHING also claimed to be able to ship rhinoceros horns to the United States.
From at least in or about July 2019 through at least in or about August 2019, CHING conspired to transport, distribute, sell, and smuggle at least approximately 73 kilograms of rhinoceros horns resulting from the poaching of numerous rhinoceros and having an estimated value of at least approximately $725,472.
On a number of occasions, CHING met with a confidential source to negotiate the sale of rhinoceros horns. For example, on July 17 and 18, 2019, the confidential source met with CHING in Malaysia. During those meetings, CHING stated that he served as a “middleman”—one who acquires rhinoceros horns poached by co-conspirators in Africa and ships them to customers around the world for a per-kilogram fee. During their communications, CHING sent the confidential source numerous photographs of rhinoceros horns that CHING had available for sale and shipment, including the following:
In August 2019, the confidential source, at the direction of law enforcement, purchased 12 rhinoceros horns from CHING with money that CHING believed were the proceeds of other illegal wildlife trafficking and was in bank accounts in New York. At CHING’s direction, law enforcement deposited the purported proceeds into numerous Chinese bank accounts at an underground banking facility in Thailand to disguise the origins, source, and purposes of the monetary transactions.
On August 23, 2019, CHING then arranged for his co-conspirators to deliver twelve rhinoceros horn pieces to undercover law enforcement personnel in Bangkok, Thailand. A photograph of the rhinoceros horns delivered by CHING is below:
A United States Fish and Wildlife Service forensics laboratory examined these rhinoceros horns and concluded that two horn pieces were black rhinoceros horns and the other 10 pieces were white rhinoceros horns, both endangered species.
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CHING, 57, of Malaysia, is charged with one count of conspiracy to commit wildlife trafficking, which carries a maximum sentence of five years in prison, and two counts of money laundering, which carries a maximum sentence of 20 years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding work of the United States Fish and Wildlife Service. In addition, Mr. Williams thanked the Royal Thai Government for its assistance in the extradition of CHING to the United States and commended law enforcement authorities and conservation partners in Thailand, including the Royal Thai Police and the Office of the Attorney General. Mr. Williams also thanked the Embassy of the United States in Bangkok and the U.S. Department of Justice’s Office of International Affairs for providing substantial assistance in securing the arrest and extradition of the defendant and noted that the investigation is ongoing.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Michael R. Herman is in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment and its description set forth below constitute only allegations, and every fact described should be treated as an allegation.
Two Plead Guilty to Smuggling Firearms into MexicoRead the Press Release
EL PASO – Edwin Alejandro Rodriguez, 21, pleaded guilty this week and Martin Najera, 30, pleaded guilty last week to buying firearms and then smuggling them to Mexico. Both are U.S. citizens living in Mexico.
According to court documents, Homeland Security Investigations (HSI) began an investigation in April 2022 into reports that Rodriguez and Najera were purchasing firearms and exporting them to Mexico. Agents from HSI and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) were able to identify approximately 31 firearms that were bought by the pair and then transported to Mexico.
Rodriguez and Najera pleaded guilty to one count of conspiracy to smuggle goods from the United States. Sentencing for both defendants is expected in December. The defendants face up to five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ashley C. Hoff of the Western District of Texas; HSI Special Agent in Charge Frank Burrola, El Paso Division; and ATF Special Agent in Charge Jeffrey C. Boshek II, Dallas Division, made the announcement.
HSI and ATF are investigating the case.
Assistant U.S. Attorney Ellen Denum 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.
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Two More Sentenced to Federal Prison in Cedar Rapids Heroin and Fentanyl Wiretap CaseRead the Press Release
Two men who distributed large quantities of heroin laced with fentanyl and fentanyl analogues were sentenced this week to a total of more than six years in federal prison.
Jerry Dwyane Banghart, age 31, from Cedar Rapids, Iowa, received his prison term after an April 8, 2022 guilty plea to one count of conspiracy to distribute a controlled substance. Thomas Nathaniel May, age 27, from Seattle, Washington, received his prison term after a June 2, 2022 guilty plea to one count of conspiracy to distribute a controlled substance.
Evidence at a prior hearing showed that, during an early 2021 wiretap investigation involving a large-scale heroin distributor in Cedar Rapids named Brian Dennis, May was identified as one of the top callers to Dennis’s phone, and Banghart was also identified as a regular caller to the phone. May was typically purchasing at least 3.5 grams of heroin and upwards of 10.5 grams of heroin per day from Dennis and his associates, totaling well over 100 grams in a six-week period. In April 2021, May was arrested after meeting with Dennis and found in possession of 7.39 grams of a substance containing heroin, fentanyl, and synthetic opioids acetyl fentanyl, parafluorofentanyl and metonitazene. Information presented at sentencing showed that Banghart obtained over 50 grams of heroin from Dennis, including obtaining nearly 10.5 grams of a mixture containing heroin, fentanyl, and synthetic opioids acetyl fentanyl, parafluorofentanyl and metonitazene at one time, which Banghart then distributed to another member of the conspiracy.
Four other individuals, Cody Scott Deklotz, Andrew James Lehman, Ryan Rick Schlitter, and Melinda Salvatora Werning, previously pled guilty to the heroin conspiracy and have been sentenced. Ryan Rick Schlitter was sentenced to 46 months’ imprisonment. Andrew James Lehman was sentenced to 10 months and 16 days’ imprisonment. Cody Scott Deklotz was sentenced to 84 months’ imprisonment. Melinda Salvatora Werning was sentenced to 12 months’ and one day imprisonment. Four other individuals charged in the same indictment, including Dennis, have pled guilty and are awaiting sentencing.
Banghart and May were sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Banghart was sentenced to 46 months’ imprisonment and May was sentenced to 31 months’ imprisonment. Each man must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Banghart and May are being held in the United States Marshal’s custody until they can be transported to a federal prison.
The case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; and the Iowa Division of Narcotics Enforcement and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Dan Chatham
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21‑CR‑32‑CJW.
Follow us on Twitter @USAO_NDIA.
Top Money Launderer for the Sinaloa Cartel Sentenced to More than 15 Years in PrisonRead the Press Release
Assistant U. S. Attorney Daniel E. Zipp (619) 546-8463
NEWS RELEASE SUMMARY – October 7, 2022
SAN DIEGO – Juan Manuel Alvarez-Inzunza, a high-level money launderer for the Sinaloa Cartel, was sentenced to 188 months in prison today for his role in a conspiracy to transfer millions of dollars in drug proceeds out of the United States.
According to court records, starting in 2013, agents with Homeland Security Investigations intercepted the communications of Alvarez-Inzunza and other high-level Sinaloa Cartel members as they discussed the transfer of drug proceeds. Alvarez-Inzunza, who had a law degree and worked as an attorney in Culiacan, Sinaloa, Mexico, regularly received requests originating from the top leadership of the cartel—including Ismael “El Mayo” Zambada and Joaquin “Chapo” Guzman—to arrange for the collection of drug proceeds in cities across the United States including New York, Boston, Chicago, and Detroit. Alvarez-Inzunza then worked with associates in Bogota, Colombia to arrange for the transfer of those funds to Mexico, Central America, and other locations.
Using information from wire intercepts, agents were able to seize over $4 million in bulk currency drug proceeds before they could leave the country, and intercepts showed Alvarez-Inzunza orchestrating the transfer of millions more on behalf of the cartel. Alvarez-Inzunza was arrested by Mexican authorities while traveling in the state of Oaxaca in March of 2016, and he was extradited to the United States last year. On May 3, 2022, He pleaded guilty to one count of conspiracy to launder monetary instruments in violation of 18 U.S.C. §1956(h).
In court today, Chief Judge Dana M. Sabraw noted that the Sinaloa cartel is “a very violent organization” and “they don’t exist without money.” Money laundering operations, like that headed by Alvarez-Inzunza, are “integral” to the operation of the cartel and provide the “fuel that keeps these organizations in business.”
U.S. Attorney Randy Grossman said, “Large-scale drug cartels in Mexico can only survive by manipulating the international financial system to transfer the proceeds of their drug sales out of the United States. Today’s sentence sends a message to global money launderers that they are not safe, wherever they may reside, and we will continue to work with our international partiers to bring them to justice.” Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.
“Today’s sentencing is the result of relentless work by HSI targeting the Sinaloa Cartel,” said Chad Plantz, special agent in charge of HSI Diego. “This multiyear investigation highlights HSI’s unwavering commitment to pursue cartel members responsible for importing dangerous drugs into our neighborhoods. This lengthy sentence serves as resounding message that transnational criminal organizations are being continuously investigated by HSI and their leaders will be brought to justice.”
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
DEFENDANT Case Number 14CR2253-DMS
Juan Manuel Alvarez-Inzunza Age: 41 Culiacan, Sinaloa, Mexico
SUMMARY OF CHARGES
Money Laundering Conspiracy – Title 18, U.S.C., Section 1956(h)
AGENCIES
Homeland Security Investigations
Department of Treasury, Office of Foreign Assets Control
Department of Justice, Organized Crime Drug Enforcement Task Forces
Department of Justice, Office of International Affairs
Three Kentucky Correctional Officers Face Additional Civil Rights Charges for Assaulting Inmates and Attempting to Cover it UpRead the Press Release
A federal grand jury in London, Kentucky, filed a superseding indictment against three federal correctional officers — two officers and a lieutenant — for their respective roles in assaults against three federal inmates and subsequent cover-ups.
Officers Samuel Patrick, 41, Clinton Pauley, 40, and Lieutenant Kevin Pearce, 37, had previously been indicted in connection with the assaults of two federal inmates, C.T. and N.D, and subsequent cover-ups. The superseding indictment brings new charges for their assault of a third federal inmate, E.G., and attempts to cover it up.
The superseding indictment alleges that, on March 30, 2021, Patrick and Pauley, who were officers at the U.S. Penitentiary-Big Sandy, and Lieutenant Pearce, who was a supervisory officer, physically assaulted an inmate, identified in the indictment as E.G., violating that inmate’s constitutional rights. The indictment also alleges that the assault resulted in bodily injury and that the defendants attempted to cover up the assault by writing false reports. The indictment also charges Patrick and Pearce with witness tampering based on their efforts to pressure a fellow correctional officer to write an untruthful report. Lastly, the indictment charges Pauley with making false statements to agents of the Department of Justice Office of the Inspector General and the FBI.
The maximum penalties for the charged crimes are 10 years of imprisonment for the assault offenses and 20 years of imprisonment for each of the witness tampering and false report offenses.
Assistant Attorney General Kristen Clarke of the Department of Justice’s Civil Rights Division; U.S. Attorney Carlton S. Shier for the Eastern District of Kentucky; Special Agent in Charge William J. Hannah of the Department of Justice Office of the Inspector General’s Chicago Field Office; and Special Agent in Charge Jodi Cohen of the FBI Louisville Field Division made the announcement.
The Office of the Inspector General and the FBI conducted the investigation. Assistant U.S. Attorney Zachary Dembo for the Eastern District of Kentucky is prosecuting the case in partnership with Trial Attorney Thomas Johnson of the Civil Rights Division.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Texarkana High School Band Instructor Charged with Federal Child Exploitation ViolationsRead the Press Release
TEXARKANA, Texas – A Texarkana, Arkansas, man has been charged in a federal complaint with violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Brandon Neil Sams, 46, appeared before U.S. Magistrate Judge Boone Baxter on Oct. 7, 2022, on a federal complaint charging him with enticement of a minor and obstruction of justice.
According to the complaint and information presented in court, from March 2022 through September 2022, Sams, while serving as a band instructor at Texas High School, allegedly attempted to entice or persuade a minor to engage in sexual activity. On Sep. 26, 2022, Sams allegedly attempted to obstruct or conceal information from law enforcement.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
If convicted, Sams faces from 10 years to life in federal prison.
This case is being investigated by Homeland Security Investigations and the Texarkana Independent School District. This case is being prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.
An indictment or complaint is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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St. Louis Woman Sentenced to a Year in Prison, Ordered to Repay $267,000 in Pandemic Rental FraudRead the Press Release
ST. LOUIS – U.S. District Judge Audrey G. Fleissig on Friday sentenced a woman from St. Louis County, Missouri to a year and a day in prison and ordered her to repay the $267,239 she reaped in a pandemic-related fraud.
Semaj Portis, 43, registered a company called Forever Riding with the Missouri Secretary of State on Jan. 15, 2021, then submitted 52 fraudulent applications for rent assistance to the Missouri Housing Development Commission, which administered Emergency Rental Assistance and COVID-19 Emergency Solutions Grants. Portis listed herself or Forever Riding as the landlord and also submitted fraudulent rental leases.
The grants were designed to help both landlords and their financially struggling tenants during the COVID-19 pandemic and “could have and should have gone to Missourians who were struggling during the darkest days of the pandemic,” Assistant U.S. Attorney Derek Wiseman said in court Friday.
Portis, who used the money for vacations and to purchase real estate, took “advantage of a once-in-a-generation crisis,” Wiseman said.
“For too many Missourians, the COVID-19 pandemic resulted in an unprecedented time of financial hardship, turmoil, and suffering. But for Defendant Semaj Portis, it constituted a lucrative opportunity to line her pockets with relief payments earmarked for struggling Missourians,” Wiseman wrote in a sentencing memo.
The case was investigated by the U.S. Secret Service and the Federal Bureau of Investigation. Assistant United States Attorney Derek Wiseman is prosecuting the case.
“The United States Secret Service will continue to work with our local, state, and federal partners to aggressively target individuals and groups who attempt to take advantage of federal programs designed to help those in need,” said Special Agent in Charge Thomas Landry of the U.S. Secret Service St. Louis Field Office.
Anyone with information about rental assistance fraud should contact the FBI at [email protected] or (314) 589-2500.
St. Louis Man Who Carjacked Two People Sentenced to 19 Years in PrisonRead the Press Release
ST. LOUIS – U.S. District Judge Audrey G. Fleissig on Friday sentenced a man from St. Louis, Missouri who carjacked two vehicles in 2020 while armed to 19 years in prison.
Andre Whitfield, 32, of St. Louis, was also sentenced to 18 months more in prison for violating his supervised release in a 2011 case in which he was convicted of being a felon in possession of a firearm.
On April 21, 2020, Whitfield stole a 2004 Pontiac Grand Prix at gunpoint from a woman who had given he and his paramour, Cherri Barton, a ride. Barton had asked the victim, who was her cousin, for the ride before Whitfield pointed a gun at the woman and said, “Give me everything you got and get out of the car,” his plea agreement says.
On May 13, 2020, Barton asked a woman in her 70s for directions before Whitfield flashed a pistol and took the woman’s 2010 Toyota Corolla. The woman’s purse, which contained $700, was in the vehicle when it was stolen. Police later spotted the car, and Whitfield crashed after a high-speed chase. Police found an AR-15 rifle and a .45-caliber pistol in the car.
Whitfield pleaded guilty July 1 to two counts of carjacking and two counts of possession and brandishing of a firearm in furtherance of a crime of violence.
Cherri Barton, 36, of Northwoods, pleaded guilty July 7 to one count each of carjacking and possession and brandishing of a firearm in furtherance of a crime of violence. At her sentencing, scheduled for Oct. 13, she could face at least seven years in prison for the gun charge.
The case was investigated by the FBI, the St. Louis Metropolitan Police Department, the St. Louis County Police Department and the Hillsdale Police Department.
Southeastern Connecticut Man Sentenced to More Than 10 Years in Federal Prison for Gun and Drug OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that DWAYNE JOHNSON, 46, of Norwich, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 130 months of imprisonment, followed by four years of supervised release, for gun and drug offenses.
According to court documents and statements made in court, on June 14, 2017, Johnson, who had previously been convicted of several felony offenses and was prohibited from possessing firearms, possessed two 12 gauge shotguns, shotgun shells, and quantities of cocaine and marijuana. On June 5, 2018, as part of an overdose death investigation, members of the Waterford and Town of Groton Police Departments executed a state search warrant at Johnson’s former residence in Waterford and seized approximately 200 grams of fentanyl, approximately 100 grams of cocaine, smaller quantities of crack cocaine and heroin, items used to process and package narcotics, 24 cell phones, more than $11,000 in cash, and a loaded .45 caliber handgun.
On May 20, 2019, Johnson pleaded guilty to possession with intent to distribute 40 grams or more of fentanyl, possession of a firearm in furtherance of a drug trafficking crime, possession of a firearm by a felon, and possession of a controlled substance.
On August 20, 2019, while he was on released on bond, Johnson was arrested by officers from the Norwich Police Department after a shooting occurred at Johnson’s Norwich residence. A related search of the residence revealed approximately 105 grams of cocaine and a quantity of fentanyl. Johnson has been detained since that date.
This investigation was conducted by the Federal Bureau of Investigation and the Town of Groton, Norwich and Waterford Police Departments. The case was prosecuted by Assistant U.S. Attorneys Patricia Stolfi Collins and Natasha Freismuth.
South Shore Landscaper Sentenced to Prison for Underreporting $1.5 Million in Taxable IncomeRead the Press Release
BOSTON – The owner of a residential and commercial landscaping business operating in the South Shore area was sentenced yesterday for failing to report approximately $1.5 million in income to the Internal Revenue Service.
Scott Herzog, 47, of Norwell, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to a year and one day in prison, one year of supervised release and a fine of $100,000. Herzog was also ordered to pay restitution of $499,958 to the Internal Revenue Service. On June 3, 2022, Herzog pleaded guilty to one count of filing a false tax return.
Herzog owned and operated Herzog Landscape Solutions. From 2016 through 2018, Herzog received gross income of at least approximately $4.1 million from landscaping customers but provided his bookkeeper with only partial information about that income from customer payments. Herzog directed customers to pay him personally for jobs and then cashed many of these payments or deposited them into bank accounts unaffiliated with the landscaping business. Herzog then failed to report approximately $1.5 million in these receipts in the tax returns his tax preparer filed on his behalf. As a result of this conduct, Herzog underreported his personal income tax obligations, causing a loss to the Internal Revenue Service of nearly $500,000.
United States Attorney Rachael S. Rollins and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement. Assistant U.S. Attorney David M. Holcomb of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.
South Georgia Resident with Lengthy Criminal Past Convicted of Distributing Drugs at Valdosta Apartment ComplexRead the Press Release
ALBANY, Ga. – A Brooks County, Georgia, resident with a lengthy criminal history was found guilty by a federal jury on two charges related to his drug distribution activities out of a Valdosta, Georgia, apartment complex.
Barry Kiya Daise, 44, of Quitman, Georgia, was convicted of one count of possession with intent to distribute cocaine and one count of maintaining and using a drug involved premises on Oct. 6 following a four-day trial that began on Oct. 3 at the U.S. Courthouse in Albany before Senior U.S. District Judge W. Louis Sands. Daise faces a maximum of 20 years in prison for each count, a $1,000,000 maximum fine for possession with intent to distribute cocaine and a $500,000 maximum fine for maintaining and using a drug involved premises. Sentencing will occur at a time determined by the Court.
“The defendant was selling controlled substances out of a Valdosta apartment complex, and he has a long track record in the community of committing this type of criminal offenses,” said U.S. Attorney Peter D. Leary. “Persistent, repeat criminal offenders face federal prosecution in the Middle District of Georgia when they choose to disregard the law by committing crimes that clearly harm others and damage neighborhoods.”
“Despite prior felony convictions, Daise continued to plague our communities with drugs and the crimes that result from it,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Thanks to our partnership with local law enforcement, he will now spend a lengthy time in federal prison without the possibility of parole.”
According to court documents and evidence presented at trial, investigators with the Lowndes County Sheriff’s Office Special Operations Division executed a search warrant at Daise’s apartment located on West Hill Avenue in Valdosta on Nov. 19, 2019. Daise was on probation at the time for a prior state felony. Officers recovered 48 grams of powder cocaine, evidence of crack-cocaine production, a loaded firearm stolen from Tifton, Georgia, and ammunition. Daise’s cellular phone had communications about him selling drugs to others and meeting in the Valdosta apartment complex’s parking lot to conduct the transactions, as well as photographs of guns and narcotics on his phone.
Daise has multiple prior felony convictions at the state level to include possession of a firearm by a convicted felon in Lowndes County Superior Court and possession of cocaine with intent to distribute in Brooks County Superior Court.
The case was investigated by the Lowndes County Sheriff’s Office, Special Operations Division and FBI.
Assistant U.S. Attorneys Sonja Profit and Robert McCullers are prosecuting the case.
South Florida Man Sentenced to Nine Years After Sharing Child Pornography on Social MediaRead the Press Release
MIAMI -- Kemal Yaslowitz, 50, of Lake Worth, has been sentenced to nine years in federal prison, followed by 15 years of supervised release, for possessing and distributing child pornography.
Yaslowitz spent months on a social media messenger application sharing images and videos of children being sexually abused. During an online chat, Yaslowitz sought to exchange child pornography with a user whom Yaslowitz believed shared his interests. Yaslowitz sent the user multiple videos of children being sexually abused.
Law enforcement investigated and arrested Yaslowitz. They determined that Yaslowitz stored hundreds of images of child pornography on his electronic devices and had shared 189 videos of child sexual abuse material on social media.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Robert M. DeWitt, Acting Special Agent in Charge, FBI Miami announced the sentence imposed in West Palm Beach by U.S. District Judge Robin Rosenberg.
FBI Miami (West Palm Beach office) investigated this case. Assistant U.S. Attorney Brian Ralston prosecuted it.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case no.: 22-cr-80062.
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Shelton Man Charged with Possessing Gun and Ammo While Awaiting Trial in Another Federal CaseRead 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 an indictment charging MIGUEL RIVERA, also known as “Macho,” 30, of Shelton, with possessing a firearm and ammunition while released on bond and awaiting trial in another federal case involving the alleged unlawful possession of a firearm and ammunition.
The indictment was returned on September 27, 2022. Rivera appeared today before U.S. Magistrate Judge Maria E. Garcia in New Haven and pleaded not guilty. He has been detained since July 13, 2022.
As alleged in court documents and statements made in court, on July 5, 2020, Rivera possessed a Romarm/Cugir, AK Type Model, 7.62 x 39mm caliber, semi-automatic rifle containing a fully-loaded large capacity 30-round magazine.
It is alleged that Rivera’s criminal history includes convictions for felony firearm, robbery and burglary offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On September 22, 2020, Rivera was charged by indictment with one count of unlawful possession of a firearm by a felon. He arrested on November 9, 2020, and was released on a $100,000 bond.
The new indictment alleges that, on June 21, 2022, while he was awaiting trial in his initial federal case, Rivera unlawfully possessed a Krieghoff K80 12-gauge shotgun, approximately 50 rounds shotgun ammunition, and approximately 26 rounds of 9mm ammunition.
The indictment charges Rivera with one count of unlawful possession of a firearm and ammunition by a felon, and committing the offense while on pretrial release. If convicted, he faces a maximum term of imprisonment of 20 years.
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), and the Connecticut State Police.
These cases are 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.
Professional Tax Return Preparer Pleads Guilty to Tax FraudRead the Press Release
MIAMI – Abel Raphael, 65, of Key West, Florida has pled guilty in federal court to aiding and assisting the preparation and presentation of false tax returns.
Raphael was a professional tax return preparer and operated Abel Income Tax Service Inc., in Monroe County. In connection with his guilty plea, Raphael admitted that he obtained an Electronic Filing Identification Number (EFIN) to submit tax returns electronically to the IRS in the names of others. Raphael prepared the returns using false deduction and tax credit figures, then electronically filed them with the IRS.
Sentencing will be scheduled before U.S. District Judge K. Michael Moore in Key West, Florida. Raphael faces up to three years in prison.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida; Matthew D. Line, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI) Miami, and Robert M. DeWitt, Acting Special Agent in Charge, FBI Miami, announced the guilty plea.
IRS-CI Miami and FBI Miami Key West Resident Agency investigated the case. The case is being prosecuted by Assistant U.S. Attorney Jeremy Thompson.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
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Port Angeles, Washington man sentenced for damaging a communications tower during 3-day stand-off in Olympic National ParkRead the Press Release
Tacoma – A 42-year-old Port Angeles, Washington, man was sentenced today in U.S. District Court in Tacoma to three years of probation for interfering with a federal communications system during an armed stand-off in Olympic National Park, announced U.S. Attorney Nick Brown. Caleb Jesse Chapman’s actions from August 29, to 31, 2021, resulted in the evacuation and closure of a popular section of Olympic National Park at one the busiest times of the year. At the sentencing hearing U.S. District Judge Robert J. Bryan noted that Chapman had spent 80 days in federal detention, and could face additional prison time if he does not comply with all the conditions of his probation.
“Mr. Chapman’s conduct put many people at risk and spread fear in the community. When he disabled the communications system for the eastern section of the park, he disrupted the ability of park staff to call for help while running chain saws to clear trails, hiking off trail to monitor endangered animals, or checking on hikers in rugged terrain,” said U.S. Attorney Nick Brown. “He has spent time since his arrest working to be drug free. We wish him success in that effort.”
According to records filed in the case, just after midnight on August 29, 2021, Chapman appeared at a stranger’s home armed with a handgun and AR-15 style rifle. Chapman was high on methamphetamine when he handed the stranger a letter outlining his concerns over political events, his difficulty getting ammunition, and his belief that there would be a revolution starting on the Olympic Peninsula, Texas, and elsewhere.
Chapman drove his girlfriend to Olympic National Park where he started a fire and then felled a tree to block a road to the Deer Park campground. Chapman told his girlfriend she was going to die in the “revolution.” The girlfriend called 9-1-1 and Chapman threw a can of soup at her, cutting her leg. Chapman stormed off into the woods with nine firearms including a stolen handgun, an AR-15 and two shotguns. He had more than 3500 rounds of ammunition.
Law enforcement evacuated the Deer Park campgrounds, trailheads, and road areas, and attempted to locate Chapman. Around 3 PM on August 29, 2021, Chapman disabled the Olympic National Park radio communications site (radio repeater) located at the summit of Blue Mountain. The repeater is used by the park for emergency response, public safety, and administrative radio communications. By disabling the repeater, Chapman left the northeast corner of the park without emergency communications. In fact, the Blue Mountain repeater was also the repeater that the NPS Search and Rescue helicopter based at Mt. Rainier would need to use, for a rescue at Olympic National Park.
On August 31, 2021, a drone located Chapman in the park. Chapman fired a short barrel shotgun at the drone. Ultimately, law enforcement was able to negotiate Chapman’s surrender with no injuries to anyone.
In her sentencing memo, Assistant United States Attorney Kristine Foerster noted a variety of impacts and costs caused by Chapman’s actions. “Over 480 overtime hours were required from NPS staff in Washington over those three days, and that does not include the response from out of State NPS employees who flew in, the FBI, or other local law enforcement agencies. This massive law enforcement response took officers and agents from already understaffed agencies away from their regular duties including emergency response, search and rescue, criminal investigations, and generally protecting the public…. Hikers with overnight permits – some who fly in just to hike in ONP – all had to evacuate and were otherwise unable to begin or complete their trips. The Park lost out on significant revenue through the closures, and everyone within that area of the Park had to be evacuated.”
Chapman has agreed to make restitution to those harmed by his actions, including losses to the National Park Service, and to specific individuals, incurred because of the closure of portions of Olympic National Park, including the popular Hurricane Ridge Visitor’s Center. The exact amount of restitution will be determined at a later hearing. Members of the public who were impacted by the park closure should contact the National Park Service at Olympic National Park to supply restitution information.
The case was investigated by the Investigative Services Branch of the National Park Service, the FBI, and the Olympic Peninsula Narcotics Enforcement Team (OPNET) which includes officers from Jefferson County Sheriff’s Office, Clallam County Sheriff’s Office, the Sequim, Port Angeles, and Port Townsend Police Departments and the U.S. Border Patrol.
The case is being prosecuted by Assistant United States Attorney Kristine Foerster.
Pocatello Man Sentenced to Federal Prison for Discharging a Firearm During a RobberyRead the Press Release
POCATELLO – A Pocatello man was sentenced to ten years in federal prison for the discharge of a firearm during a robbery that occurred on the Fort Hall Indian Reservation on June 23, 2021. According to court records, Jose Acosta, Jr., 41, entered a camping trailer and demanded money from a female occupant. The victim refused and fought with Acosta. During the struggle, Acosta fired a pump-action .22 caliber rifle multiple times. The female victim was treated for non-life-threatening injuries at a local hospital. Acosta fled the scene after the shooting and was arrested the next day after an extensive manhunt.
On October 4, 2022, Acosta was sentenced to a mandatory term of ten years in federal prison by Senior District Court Judge B. Lynn Winmill. Acosta was also ordered to serve a term of five years of supervised release once his sentence is completed.
U.S. Attorney Josh Hurwit, of the District of Idaho, made the announcement and commended the cooperative efforts of the Fort Hall Police Department, Federal Bureau of Investigation, Bingham County Sherriff’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Drug Enforcement Administration, and the other assisting local agencies which led to charges.
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.
This case was handled by the U.S. Attorney Office’s specially deputized Special Assistant U.S. Attorney (SAUSA), funded by the Eastern Idaho Partnership (EIP) and the State of Idaho. The EIP is a coalition of local city and county officials in eastern Idaho as well as the Idaho Department of Correction.
The EIP SAUSA program allows law enforcement to utilize the federal criminal justice system – through the EIP SAUSA – to prosecute, convict, and sentence violent, armed criminals and drug traffickers. These criminals often receive stiffer penalties than they might in state courts.
This program was created in January 2016. Since that time, approximately 199 defendants have been indicted by the EIP SAUSA. Of these defendants, 27 have been indicted on firearms-related charges. The defendants indicted under the program have been sentenced to 8,892 months (approximately 741 years) in federal prison, representing an average prison sentence of 54.55 months (4.54 years). Defendants indicted for firearms-related offenses serve, on average, approximately 41.68 months (3.5 years) in federal prison.
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Partner in Mumbai-Based Prescription Drug Company Pleads Guilty to Drug SmugglingRead the Press Release
BOSTON – A partner in a Mumbai-based prescription drug company pleaded guilty yesterday in federal court in Boston to charges arising from his operation of an overseas pharmacy that sold unapproved prescription drugs and controlled substances, including opioids, and shipped them from Asia into the United States.
Manish Kumar, 34, pleaded guilty to one count of conspiracy to import misbranded prescription drugs and controlled substances conspiracy to distribute Schedule II and Schedule IV controlled substances and one count of making false statements to federal officers. U.S. District Court Judge Mark L. Wolf scheduled sentencing for Jan. 18, 2023. Kumar was charged by complaint and subsequently indicted by a federal grand jury in May 2021.
Kumar was a partner in a drug company in Mumbai, India that sold prescription drugs, including generic erectile dysfunction drugs, and Schedule II controlled substances, such as hydrocodone, oxycodone and tapentadol, and Schedule IV controlled substances, such as tramadol, to customers in the United States who did not have prescriptions. As part of the conspiracy, Kumar personally directed and managed shipments of drugs from drug suppliers in Singapore and India into Massachusetts and other states. Kumar and his co-conspirators operated their business from at least 2015 until 2019, when Kumar was arrested on unrelated charges. After his arrest, Kumar made false statements to law enforcement in February 2020 about his involvement in the sale of controlled substances.
The charges of conspiracy to import illegal drugs and the charge of false statement each provide for a sentence of up to five years of incarceration, three years of supervised release and a fine of $250,000. The charge of conspiracy to distribute Schedule II and Schedule IV controlled substances provides for a sentence of up to 20 years of incarceration, three years of supervised release and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division; and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Valuable assistance was provided by the U.S. Food and Drug Administration’s Office of Criminal Investigations. Assistant U.S. Attorney Kriss Basil of Rollins’ Securities, Financial, & Cyber Fraud Unit is prosecuting the case.
Orange County Doctor Pleads Guilty to Federal Drug Charge for Illegally Prescribing over 120,000 Opioid Pills over Six-Year SpanRead the Press Release
LOS ANGELES – An Orange County physician pleaded guilty today to a federal criminal charge for conspiring to illegally prescribe more than 120,000 opioid pills to 18 different people over a six-year span without a legitimate medical purpose in exchange for cash and insurance payments.
Dr. Dzung Ahn Pham, 61, of Tustin, pleaded guilty to one count of conspiracy to distribute controlled substances, a crime that carries a statutory maximum sentence of 20 years in federal prison.
According to his plea agreement, Pham, who owned Irvine Village Urgent Care, conspired with Jennifer Thaoyen Nguyen, 51, of Irvine, to illegally distribute controlled substances.
Nguyen, a licensed pharmacist who operated the Irvine-based Bristol Pharmacy, has agreed to plead guilty to one count of conspiracy to distribute controlled substances. She is scheduled to enter her guilty plea to the felony charge on October 14.
Pham admitted in his plea agreement that from January 2013 to December 2018, he wrote prescriptions for approximately 53,693 oxycodone pills, approximately 68,795 hydrocodone pills, and approximately 29,286 pills of amphetamine salts. The prescriptions were filled using 18 different patient names. Pham admitted that he acted with the intent to distribute the drugs outside the course of professional practice and without a legitimate medical purpose.
On four occasions in November and December of 2017, Pham wrote prescriptions for a patient – identified in court papers as “S.C.” – whom he knew was a drug addict for a total of 704 pills of 30 mg of oxycodone. On two occasions in August 2018, Pham wrote prescriptions in the name of S.C.’s wife, who was not Pham’s patient, never saw Pham for any medical appointment, and was not aware Pham was issuing a prescription in her name for her husband’s use.
Pham knew that many other pharmacies would not fill his prescriptions because they did not have a legitimate medical purpose, according to court documents. So, he directed his patients to Nguyen’s pharmacy, according to Nguyen’s plea agreement. There, Nguyen accepted payments from Pham’s patients and she subsequently gave Pham these payments from his patients for “office visits” even though she knew these patients did not have a legitimate office visit with Pham prior to her filling the prescription, her plea agreement states.
Nguyen admitted in her plea agreement to filling prescriptions for eight individuals outside the usual course of professional medical practice and without a legitimate medical purpose.
Nguyen further admitted that, from May 2017 to November 2018, she filled Pham-written prescriptions for a total of approximately 160 pills of oxycodone, approximately 1,810 pills of hydrocodone, and approximately 450 pills of amphetamine salts.
Both Pham and Nguyen admitted in their plea agreements to abusing their positions of trust as a physician and pharmacist, respectively.
United States District Judge Josephine L. Staton scheduled a January 6, 2023 sentencing hearing for Pham.
The Drug Enforcement Administration’s Tactical Diversion Squad, the Irvine Police Department, and IRS Criminal Investigation investigated this matter.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks
Assistant United States Attorneys Brett A. Sagel and Gregory W. Staples of the Santa Ana Branch Office are prosecuting this case.
Ohio Electrical Engineer Convicted of Tax EvasionRead the Press Release
A federal jury convicted a Liberty Center, Ohio man on Oct. 6 of tax evasion after he used a sham trust to help conceal three years of income he earned from his business.
According to court documents and evidence presented at trial, John Everson owned an electrical engineering business. From approximately 2012 through 2015, Everson earned more than $1.3 million in income from the business. He attempted to conceal much of this income and evade personal income taxes he owed to the IRS by instructing his clients to pay a trust that he controlled. Everson used the money in the trust to pay personal expenses and make large cash withdrawals. He also funneled some of the trust funds to other bank accounts held in the names of non-profit organizations that he and several family members controlled. To further conceal his income and assets from the IRS, Everson put his home and personal airplane in the name of the non-profit organization. In total, Everson’s conduct caused a loss to the U.S. Treasury of more than $500,000.
Everson is scheduled to be sentenced on March 16, 2023, and faces a maximum penalty of five years in prison on each of the three counts of his conviction. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and tother statutory factors.
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 investigated the case.
Trial Attorney Sarah Ranney of the Justice Department’s Tax Division and Assistant U.S. Attorney Jody King of the Northern District of Ohio are prosecuting the case.
Oakland Dealer Pleads Guilty to Selling Fentanyl over Months in San Francisco’s TenderloinRead the Press Release
SAN FRANCISCO – Alex Murillo pleaded guilty today to all eight counts in a federal indictment charging him with multiple sales of fentanyl and methamphetamine that occurred in San Francisco’s Tenderloin District, announced United States Attorney Stephanie M. Hinds and Drug Enforcement Administration (DEA) Acting Special Agent in Charge Bob P. Beris.
Murillo, 25, who resides in Oakland, was arrested on June 21, 2022, following the filing of a federal criminal complaint charging multiple street drug sales by Murillo in the Tenderloin. The complaint alleged that on April 7, 2022, Murillo met up with two undercover police officers near 8th and Market Streets in the Tenderloin and sold the undercover officers approximately five grams of fentanyl for $100. The complaint also asserted that on June 8, 2022, Murillo communicated again with one of the undercover police officers and met with the officer near the San Francisco Civic Center BART platform in the Tenderloin. The complaint describes that Murillo sold the undercover officer two ounces of fentanyl and three ounces of methamphetamine for $1,400.
After the complaint was filed, a federal grand jury issued an eight-count indictment that contained, in addition to the complaint’s two charges, six other charges against Murillo for fentanyl and methamphetamine trafficking on four other days. The indictment charges in two counts that Murillo on March 23 and again on April 21, 2022, sold fentanyl in the Tenderloin. In those sales, as described in a filed government detention memo, Murillo sold $40 of yellow fentanyl and $750 of pink fentanyl, respectively, to undercover police officers. The indictment also charges that on May 12, 2022, Murillo sold approximately one ounce of fentanyl and two ounces of methamphetamine for $800 to an undercover police officer in the Tenderloin. The indictment lastly charges that on June 21, 2022, Murillo possessed methamphetamine with the intention to sell it. On that date, as described in the government’s memo, law enforcement officers arrested Murillo outside of his Oakland apartment and seized nearly four ounces of methamphetamine from his backpack.
Murillo pleaded guilty today to all of the indictment’s eight counts, which included three counts of possession with the intent to distribute and distribution of fentanyl in violation of 21 U.S.C. § 841(a)(1), (b)(1)(C). Each of these counts carries a maximum prison sentence of 20 years. He also pleaded guilty to two counts of possession with the intent to distribute and distribution of at least 40 grams of fentanyl in violation of 21 U.S.C. § 841(a)(1), (b)(l)(B)(vi) and to three counts of possession with the intent to distribute and distribution of 50 grams and more of a substance containing methamphetamine in violation of 21 U.S.C. § 841(a)(1), (b)(l)(B)(viii). Each of these counts carry a maximum prison sentence of 40 years and a minimum sentence of 5 years. All of these counts also carry a period of supervision after release from prison for at least three years and for up to life. However, any sentence following a conviction would be imposed by a court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
United States District Judge Susan Illston received Murillo’s guilty pleas and set a sentencing hearing for Murillo on January 20, 2023. Murillo remains in custody while awaiting his sentencing hearing.
Assistant U.S. Attorney Christa Hall is prosecuting the case, with the assistance of Lance Libatique. The prosecution is the result of an investigation by DEA and the San Francisco Police Department.
One Pill Can Kill: Avoid pills bought on the street because One Pill Can Kill. Fentanyl is a highly potent opiate that drug dealers use to create counterfeit pills which appear to be Oxycodone, Percocet, Xanax, and other drugs. Fentanyl is used because it is cheap. However, very small variations in the quantity or quality of fentanyl in a counterfeit pill will have huge effects on the pill’s potency, and these pills easily can and do cause deaths. Fentanyl is now the leading cause of drug overdose deaths in the United States. Counterfeit, fentanyl-laced pills are usually shaped and colored to look like pills that are sold at pharmacies, like Percocet, Xanax, and others. For example, counterfeit pills known as “M30s” imitate Oxycodone, but when sold on the street they routinely contain fentanyl. These counterfeits are usually round tablets and often light blue in color, though they may be in a rainbow of colors, and they often have “M” and “30” imprinted on opposite sides of the pill. Do not take these or any other pills bought on the street – they can be counterfeit and poisonous, and you won’t know until it’s too late.
North Carolina Man Pleads Guilty to False Statements CrimeRead the Press Release
CHARLESTON, W.Va. – A North Carolina business owner pleaded guilty to lying to the United States Department of Agriculture regarding the Nicholas County coal he pledged as collateral for a $9 million USDA-backed business loan.
According to court documents and statements made in court, Michael James Peters, 42, of Concord, North Carolina, was part owner, president, and operator of Taylor Rose Energy (TRE). On July 24, 2014, TRE obtained a $9,065,165 loan from a Georgia bank to buy out investors’ interest in approximately 146,954 tons of cannel coal in Dixie, Nicholas County. In support of the loan, TRE represented that it intended to convert the coal into “smokeless” coal briquettes for consumer coal-burning home heating systems in Ireland. The USDA Rural Development Business and Industry loan program guaranteed 90 percent of the loan.
By January 2015, Peters owed more than $1.3 million to the owner and operator of another coal company, Aces High Coal Sales Inc. of London, Kentucky. From February 2015 to April 2015, Peters allowed Aces High to remove more than 80,000 tons of the collateralized coal from the Dixie site to settle this debt. Peters was unable to repay the USDA-backed loan, and did not inform the Georgia bank that coal pledged as the loan’s collateral was being taken to address the debt to Aces High.
Peters told the Georgia bank that 90 percent of the coal was “missing” from the Dixie site. On May 8, 2015, representatives from the bank and the USDA visited the Dixie site to investigate the removal of the collateralized coal. Peters falsely told USDA and bank representatives that Aces High had removed the coal from the site without his permission. At the plea hearing, Peters admitted that he lied to the USDA representative during this site visit in order to redirect the focus of the investigation away from his own conduct.
Peters pleaded guilty to making a false statement to a representative of the United States Department of Agriculture. Peters is scheduled to be sentenced on January 19, 2023, and faces a maximum penalty of five years in prison, three years of supervised release, and a $250,000 fine. Peters also agreed to pay $1,375,000 in restitution.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Department of Agriculture-Office of Inspector General (USDA OIG).
United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorney Andrew J. Tessman is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-159.
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Nigerian National Charged with International Narcotics Conspiracy and Attempted International Narcotics Distribution.Read the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced the transfer of Nigerian national Paul Francis Odhiambo Oyugi (a/k/a “Obi”), age 59, from Haiti based on an indictment returned in the Eastern District of Wisconsin. On October 6, 2022, Oyugi had his initial appearance and arraignment before U.S. Magistrate Judge Stephen Dries in Milwaukee, Wisconsin. On October 7, 2022, Oyugi was ordered detained pending trial.
On July 19, 2022, a grand jury in the Eastern District of Wisconsin returned an indictment against Oyugi alleging one count of international drug trafficking and one count of attempted international drug trafficking. According to the indictment, from approximately January 2019 through July 10, 2022, Oyugi conspired with others to distribute one kilogram or more of heroin and five kilograms or more of cocaine intending, knowing, or having reasonable cause to believe the heroin and cocaine would be unlawfully imported into the United States. The indictment also alleges that on July 10, 2022, Oyugi attempted to distribute 500 grams or more of cocaine intending, knowing, or having reasonable cause to believe the cocaine would be unlawfully imported into the United States.
An indictment is merely an allegation and a defendant is presumed innocent until proved guilty beyond a reasonable doubt in a court of law.
The DEA Milwaukee Field Office and the DEA Port-au-Prince Country Office investigated this case. The Justice Department’s Office of International Affairs and the Haitian National Government, including the Haitian Ministry of Justice, provided substantial assistance in this matter. Assistant U.S. Attorneys Robert J. Brady, Jr. and Gail J. Hoffman of the Eastern District of Wisconsin are prosecuting the case.
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Newcastle Woman Pleads Guilty to Embezzling from Local ChurchRead the Press Release
OKLAHOMA CITY – Last week, DARLA BRALLEY, 58, of Newcastle, Oklahoma, pleaded guilty to a two-count felony information charging her with wire fraud and making and subscribing a false tax return, announced U.S. Attorney Robert J. Troester.
Public records reflect that from 2012 until early 2020, Bralley served as the payroll administrator for St. Paul the Apostle Catholic Church (“St. Paul”), located in Del City, Oklahoma. In her role as the payroll administrator, Bralley had signature authority over St. Paul’s operating account, and she had authority to issue checks for authorized expenses on behalf of St. Paul. Bralley also had authority to conduct online banking transactions for authorized St. Paul expenses.
At a plea hearing on September 28, 2022, Bralley admitted that between early 2014 and January 2020, she issued approximately 198 unauthorized checks drawn on St. Paul’s operating account to pay for various personal items and services, including personal credit card payments, utilities, and living expenses. She further admitted that she routinely accessed St. Paul’s operating account online and made several unauthorized transfers from that account to pay her personal expenses. Bralley admitted that she embezzled approximately $451,177.54 from St. Paul.
In addition to admitting to the wire fraud, Bralley admitted that on March 14, 2019, she signed under penalty of perjury a 2018 U.S. Individual Income Tax Return, Form 1040, that she then filed with the Internal Revenue Service. She admitted that the return was false because she only reported total income of $61,189.00, but she knew she had received substantial income in 2018 related to the money she embezzled from St. Paul that she did not report on her tax return.
At sentencing, Bralley faces up to 20 years in prison for the wire fraud charge and up to 3 years in prison for the tax charge.
This case is a result of an investigation by the Internal Revenue Service – Criminal Investigation Division and the United States Secret Service. It is being prosecuted by Assistant U.S. Attorney Charles Brown.
Reference is made to court filings for further information.
New Orleans Man Sentenced to 106 Months of Imprisonment for Firearms ViolationsRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced on Wednesday, October 5, 2022, that TIJON RICHARDS, a/k/a “Tay,” age 31, a resident of New Orleans, Louisiana was sentenced in the Eastern District of Louisiana for his conduct related to violations of the Federal Gun Control Act. RICHARDS pled guilty to Counts Two and Three of the indictment, charging him, respectively with possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Sections 924(c)(1)(A) and 924(c)(1)(A)(i) and possession of a firearm and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
United States District Court Judge Sarah S. Vance sentenced RICHARDS to 46 and 60 months, respectively as to Counts Two and Three. Count Three will be served consecutive to Count Two. Following his release, RICHARDS will be placed on supervised release for 5 years. RICHARDS must also pay a mandatory special assessment fee of $200.00.
On September 16, 2020, RICHARDS fled from a Louisiana State Police (“LSP”) trooper on Interstate 10 in Metairie, Louisiana, during a traffic stop. During a search of RICHARDS vehicle, LSP located a loaded FN Herstal, 5.7x28 mm firearm and 2 grams of cocaine base under the driver’s seat where RICHARDS was seated. RICHARDS made good on his escape, but was later arrested in January 2021. While attempting to arrest RICHARDS at his New Orleans residence, agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives observed that an air conditioning vent inside of the home appeared to be distorted. Upon removing the vent, a high- capacity rifle magazine fell to the floor. Agents observed two firearms inside of the unit.
While executing a search warrant at the residence, agents located four additional firearms and ammunition inside of the residence. RICHARDS, a convicted felon, is prohibited from possessing firearms and ammunition.
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 the Bureau of Alcohol, Tobacco, Firearms and Explosives and Louisiana State Police. The case is being prosecuted by Assistant United States Attorney Brittany Reed of the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.
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New Orleans Man Sentenced for Firearms Offense and Misprision of FelonyRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that WARREN PICARD, age 28, of New Orleans, was sentenced on October 5, 2022, by U.S. District Judge Lance M. Africk to a 96-month term of imprisonment.
According to court records, on June 29, 2022, PICARD pleaded guilty to a two-count superseding bill of information charging him with conspiracy to possess a firearm by a felon, in violation of 18 U.S.C. § 371, and misprision of felony, in violation of 18 U.S.C. § 4. The sentence imposed consists of 60 months imprisonment as to the firearms violation and 36 months imprisonment for misprision of a felon, said terms of imprisonment to be served concurrently.
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.
United States Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Greg Kennedy prosecuted this case.
New Orleans Man Sentenced to 300 Months in Prison for Role in Nationwide Sex Trafficking Enterprise that Involved Incapacitating and Stealing from VictimsRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that RANDY JONAL SCHENCK (a/k/a RuRu, a/k/a “Shaq”), age 41, a resident of New Orleans, Louisiana and Downey, California, was sentenced on October 6, 2022 by United States District Judge Barry W. Ashe after previously pleading guilty to Counts 1 and 7 of a pending indictment, charging him with interstate transportation and use of an interstate facility with intent to carry on unlawful activity, in violation of Title 18, United States Code, Sections 1952(a)(3) (Count 1), and wire fraud, in violation of Title 18, United States Code, Sections 1343 and 2 (Count 7). Judge Ashe sentenced SCHENCK to 60 months in prison as to Count 1 and 240 months as to Count 7, to run consecutively, for a combined total of 300 months in prison. Judge Ashe ordered that the sentence run consecutively to the sentences Schenck received in two prior proceedings in Fulton County, Georgia, and Cobb County, Georgia. Judge Ashe ordered SCHENCK to serve three years of supervised release after the conclusion of his prison term and pay a mandatory $200 special assessment fee. SCHENCK is also subject to a restitution order after a hearing scheduled for December 29, 2022, at 1:30 pm.
According to court documents, SCHENCK met Dominique Berry in New Orleans in about early 2013 and soon developed a romantic relationship. Shortly thereafter, SCHENCK encouraged Berry to engage in commercial sex activities (i.e., prostitution) with individuals in the New Orleans, Louisiana area and became involved in the scheduling, coordination, and facilitation of Berry’s commercial sex acts. SCHENCK typically kept all, or most, of the proceeds of the commercial sex acts.
Beginning in about March 2014, and continuing through September 2017, SCHENCK and Berry travelled nationally engaging in their prostitution enterprise, including through California, Louisiana, New Mexico, Texas, Arizona, Tennessee, and Georgia. In furtherance of the enterprise, Berry regularly engaged in commercial sex acts on multiple days of nearly every week between about March 2014 and September 2017. SCHENCK and Berry posted numerous advertisements containing photographs of Berry on multiple location-specific online classified ad service websites and social media applications in that invited interested individuals to contact Berry to schedule sexual interactions, many of which were explicitly commercial.
Beginning in about 2015, the prostitution enterprise evolved to include a scheme to defraud, whereby SCHENCK caused Berry to arrange “out call” interactions at the residences of men who met her through online postings. While at those residences, Berry placed substances in the beverages of the men for the purpose of “spiking” their drinks and rendering them unconscious. Berry then took items of value from the incapacitated men, including jewelry, firearms, electronics, cash, and debit and credit cards. SCHENCK and Berry used the items, without the knowledge or authorization of the people to whom the items belonged, for their benefit and the benefit of individuals associated with them. SCHENCK and Berry implemented the scheme numerous times throughout the United States.
In sentencing SCHENCK, Judge Ashe found that he utilized force, threats of force, fraud, and coercion in initially recruiting Berry to work for him and to keep her compliant and under his control. Also, the Court heard substantial evidence of numerous acts of violence that SCHENCK committed against Berry and her family members, as well as threats to commit additional violent acts in the future, particularly after she attempted to leave his control or otherwise disobeyed his instructions. At least one of the instances resulted in Berry’s hospitalization.
In furtherance of the scheme, on about February 24, 2017, Berry met S.A., a resident of Metairie, Louisiana, through a social media application. After exchanging text messages and phone calls, Berry and S.A. agreed to meet at S.A.’s apartment. SCHENCK dropped Berry off at S.A.’s apartment. While at S.A.’s apartment, Berry, as directed by SCHENCK provided S.A. with various substances, including alcohol, to loosen S.A.’s inhibitions and to render him more susceptible to theft. After S.A. became incapacitated, Berry stole S.A.’s personal property, including a debit card. SCHENCK picked up Berry at approximately 1:00 am and then used S.A.’s debit card, later that day, without S.A.’s authorization, to make a purchase at a Walmart Supercenter in New Orleans. Law enforcement authorities performed a wellness check on S.A.’s apartment the following day and found S.A. deceased.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter and expressed appreciation for the support provided by numerous law enforcement agencies and private entities involved in the investigation, including the Jefferson Parish District Attorney’s Office, the Jefferson Parish Sheriff’s Office, the Tucson (Arizona) Police Department, the Salt River (Arizona) Police Department, the Cobb County (Georgia) Police Department, the Sandy Springs (Georgia) Police Department, the Sacramento (California) Police Department, and Talking Stick Casino (Arizona). Assistant United States Attorneys Jordan Ginsberg, chief of the Public Corruption Unit, and Melissa Bücher are in charge of the prosecution.
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National Center for Disaster Fraud Warns of Fraud After Hurricane IanRead the Press Release
In the wake of extreme devastation caused by Hurricane Ian, the National Center for Disaster Fraud (NCDF) today issued a reminder that as with any major disaster, there are unscrupulous thieves who seek to take advantage of the environment to line their own pockets.
“Fraudsters targeting individuals who are already suffering from the impact of Hurricane Ian is despicable and an inexcusable crime,” said U.S. Attorney Ronald C. Gathe Jr., who serves as the Executive Director of the NCDF. “We are still in hurricane season, and it is important for people to be on the lookout for fraudsters who seek to profit from natural disasters through identity theft schemes and solicitations for fake charities. This is especially true for the citizens of Florida, South Carolina and other states impacted by Ian. The Department of Justice, through U.S. Attorney Offices across all states and territories of the United States, are committed to detecting this type of fraud and will aggressively prosecute the offenders.”
The NCDF, a national coordinating agency, was created by a partnership between the Department of Justice and various law enforcement and regulatory agencies. Its goal is to improve and further the detection, prevention, investigation and prosecution of fraud related to natural and man-made disasters, and to advocate for the victims of such fraud.
In the wake of Hurricane Ian, there is no indication that criminals will slow down their efforts to commit fraud on individuals already victimized by the storm. The following examples of disaster-related fraud are based on over 200,000 historical complaints submitted to the NCDF:
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Fake charities immediately soliciting donations using the names of well-known charities or appearing reasonable as related to a disaster
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Individuals impersonating government officials and insurance company representatives advising that disaster assistance will be made available should the potential victim provide a sum of money or personal identifiers such as date of birth, social security number and bank account information (name of financial institution, routing number and account number)
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Individuals soliciting victims to invest in non-existent businesses and ventures offering recovery efforts such as cleanup, rebuilding and making structures, such as homes, more resistant to future disasters by elevating structures to minimize future flood risks
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Individuals overcharging for goods and services needed by victims of disaster, also known as price-gouging
In addition, based on the type of disaster, individuals are frequently victimized by theft of property from businesses and residences abandoned because of a disaster (either pre-disaster evacuation or to obtain living accommodations because of damaged apartments and homes).
Recommended measures to avoid becoming a victim of disaster fraud:
-
Only make donations to known charities and only after contacting the charity directly and not in response to an email, instant message, phone call, text, etc. A recommended step is to research the charity by visiting recognized charity information/rating websites such as the Give.org, CharityNavigator.org and CharityWatch.org
-
Never click on a link in an unsolicited email, instant message, text, etc.
-
Never assume that charity solicitations posted on the internet and social media are legitimate
-
Avoid cash donations to charities - use a credit card or pay with a check
-
Never transmit donations to a specifically named individual
-
Charities do not seek donations via electronic fund (financial institution)/wire transfers, so do not wire donations
-
Avoid being victimized by impersonators of government officials, insurance companies, investment companies, etc., by terminating the phone call or other exchange of information (e.g., email, texts) and calling the actual government agency, insurance company, and/or investment company directly using a well-advertised phone number or email address
Individuals who have been targeted by fraudsters or been the victim of disaster-related fraud are encouraged to contact the NCDF at (866) 720-5721 or online at www.justice.gov/DisasterComplaintForm.
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National Center for Disaster Fraud Warns of Fraud After Hurricane IanRead the Press Release
Tampa, FL – In the wake of extreme devastation caused by Hurricane Ian, the National Center for Disaster Fraud (NCDF) today issued a reminder that as with any major disaster, there are unscrupulous thieves who seek to take advantage of the environment to line their own pockets.
“The people of our district are working tirelessly to recover from the devastating impact Hurricane Ian had on our region,” stated U.S. Attorney Roger B. Handberg. “During this time, it’s especially important to be vigilant against fraudsters who seek to profit from natural disasters. Our office is committed to aggressively prosecuting those who commit this type of fraud.”
The NCDF, a national coordinating agency, was created by a partnership between the Department of Justice and various law enforcement and regulatory agencies. Its goal is to improve and further the detection, prevention, investigation, and prosecution of fraud related to natural and man-made disasters, and to advocate for the victims of such fraud.
Historically, the NCDF has echoed federal, state, and local law enforcement messaging designed to assist individuals to avoid becoming the victim of crimes related to disaster fraud. This messaging has included warnings regarding electronic (email, internet, phone/robocall, social media, etc.) communications designed to obtain information and money from individuals affected by disasters. These communications are frequently disseminated prior to a disaster striking (e.g., targeting individuals in the potential path of hurricanes and wildfires) or immediately after disaster strikes (now for victims of Ian).
In the wake of Hurricane Ian, there is no indication that criminals will slow down their efforts to commit fraud on individuals already victimized by the storm. The following examples of disaster-related fraud are based on over 200,000 historical complaints submitted to the NCDF:
- Fake charities immediately soliciting donations using the names of well-known charities or appearing reasonable as related to a disaster
- Individuals impersonating government officials and insurance company representatives advising that disaster assistance will be made available should the potential victim provide a sum of money or personal identifiers such as date of birth, social security number, and bank account information (name of financial institution, routing number, and account number)
- Individuals soliciting victims to invest in non-existent businesses and ventures offering recovery efforts such as cleanup, rebuilding, and making structures, such as homes, more resistant to future disasters by elevating structures to minimize future flood risks
- Individuals overcharging for goods and services needed by victims of disaster, also known as price-gouging
In addition, based on the type of disaster, individuals are frequently victimized by theft of property from businesses and residences abandoned because of a disaster (either pre-disaster evacuation or to obtain living accommodations because of damaged apartments and homes).
Recommended measures to avoid becoming a victim of disaster fraud:
- Only make donations to known charities and only after contacting the charity directly and not in response to an email, instant message, phone call, text, etc. A recommended step is to research the charity by visiting recognized charity information/rating websites such as the Give.org, CharityNavigator.org, and CharityWatch.org
- Never click on a link in an unsolicited email, instant message, text, etc.
- Never assume that charity solicitations posted on the internet and social media are legitimate
- Avoid cash donations to charities - use a credit card or pay with a check
- Never transmit donations to a specifically named individual
- Charities do not seek donations via electronic fund (financial institution)/wire transfers, so do not wire donations
- Avoid being victimized by impersonators of government officials, insurance companies, investment companies, etc., by terminating the phone call or other exchange of information (e.g., email, texts) and calling the actual government agency, insurance company, and/or investment company directly using a well-advertised phone number or email address
Individuals who have been targeted by fraudsters or been the victim of disaster-related fraud are encouraged to contact the NCDF at (866) 720-5721 or online at www.justice.gov/DisasterComplaintForm.
Disaster fraud awareness PSA narrated by United States Attorney Roger B. Handberg can be found at: www.youtube.com/watch?v=YAqORFvRGLw
National Center for Disaster Fraud Warns of Fraud After Hurricane IanRead the Press Release
TALLAHASSEE, FLORIDA – In the wake of extreme devastation caused by Hurricane Ian, the National Center for Disaster Fraud (NCDF) today issued a reminder that as with any major disaster, there are unscrupulous thieves who seek to take advantage of the environment to line their own pockets.
“Fraudsters targeting individuals who are already suffering from the impact of Hurricane Ian is despicable and an inexcusable crime,” said U.S. Attorney Ronald C. Gathe, Jr., who serves as the Executive Director of the NCDF. “We are still in hurricane season, and it is important for people to be on the lookout for fraudsters who seek to profit from natural disasters through identity theft schemes and solicitations for fake charities. This is especially true for the citizens of Florida, South Carolina, and other states impacted by Ian. The Department of Justice, through U.S. Attorney Offices across all states and territories of the United States, are committed to detecting this type of fraud and will aggressively prosecute the offenders.”
“We do not tolerate fraud,” said United States Attorney Jason R. Coody, of the Northern District of Florida. “Individuals, families, and businesses have suffered, and will continue to suffer, tremendous losses. Dozens of agencies, investigators, and prosecutors are ready to respond to credible allegations of fraud and abuse, and we will continue to prosecute those who attempt to prey on the good people of Florida. If you are aware of fraud, I urge you to call the National Disaster Fraud Hotline.”
The NCDF, a national coordinating agency, was created by a partnership between the Department of Justice and various law enforcement and regulatory agencies. Its goal is to improve and further the detection, prevention, investigation, and prosecution of fraud related to natural and man-made disasters, and to advocate for the victims of such fraud.
Historically, the NCDF has echoed federal, state, and local law enforcement messaging designed to assist individuals to avoid becoming the victim of crimes related to disaster fraud. This messaging has included warnings regarding electronic (email, internet, phone/robocall, social media, etc.) communications designed to obtain information and money from individuals affected by disasters. These communications are frequently disseminated prior to a disaster striking (e.g., targeting individuals in the potential path of hurricanes and wildfires) or immediately after disaster strikes (now for victims of Ian).
In the wake of Hurricane Ian, there is no indication that criminals will slow down their efforts to commit fraud on individuals already victimized by the storm. The following examples of disaster-related fraud are based on over 200,000 historical complaints submitted to the NCDF:
- Fake charities immediately soliciting donations using the names of well-known charities or appearing reasonable as related to a disaster
- Individuals impersonating government officials and insurance company representatives advising that disaster assistance will be made available should the potential victim provide a sum of money or personal identifiers such as date of birth, social security number, and bank account information (name of financial institution, routing number, and account number)
- Individuals soliciting victims to invest in non-existent businesses and ventures offering recovery efforts such as cleanup, rebuilding, and making structures, such as homes, more resistant to future disasters by elevating structures to minimize future flood risks
- Individuals overcharging for goods and services needed by victims of disaster, also known as price-gouging
In addition, based on the type of disaster, individuals are frequently victimized by theft of property from businesses and residences abandoned because of a disaster (either pre-disaster evacuation or to obtain living accommodations because of damaged apartments and homes).
Recommended measures to avoid becoming a victim of disaster fraud:
- Only make donations to known charities and only after contacting the charity directly and not in response to an email, instant message, phone call, text, etc. A recommended step is to research the charity by visiting recognized charity information/rating websites such as the Give.org, CharityNavigator.org, and CharityWatch.org
- Never click on a link in an unsolicited email, instant message, text, etc.
- Never assume that charity solicitations posted on the internet and social media are legitimate
- Avoid cash donations to charities - use a credit card or pay with a check
- Never transmit donations to a specifically named individual
- Charities do not seek donations via electronic fund (financial institution)/wire transfers, so do not wire donations
- Avoid being victimized by impersonators of government officials, insurance companies, investment companies, etc., by terminating the phone call or other exchange of information (e.g., email, texts) and calling the actual government agency, insurance company, and/or investment company directly using a well-advertised phone number or email address
Individuals who have been targeted by fraudsters or been the victim of disaster-related fraud are strongly encouraged to contact the NCDF at (866) 720-5721 or online at www.justice.gov/DisasterComplaintForm.
The U.S. Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
National Center for Disaster Fraud Warns of Fraud After Hurricane IanRead the Press Release
In the wake of extreme devastation caused by Hurricane Ian, the National Center for Disaster Fraud (NCDF) today issued a reminder that as with any major disaster, there are unscrupulous thieves who seek to take advantage of the environment to line their own pockets.
“Fraudsters targeting individuals who are already suffering from the impact of Hurricane Ian is despicable and an inexcusable crime,” said U.S. Attorney Ronald C. Gathe Jr., who serves as the Executive Director of the NCDF. “We are still in hurricane season, and it is important for people to be on the lookout for fraudsters who seek to profit from natural disasters through identity theft schemes and solicitations for fake charities. This is especially true for the citizens of Florida, South Carolina and other states impacted by Ian. The Department of Justice, through U.S. Attorney Offices across all states and territories of the United States, are committed to detecting this type of fraud and will aggressively prosecute the offenders.”
The NCDF, a national coordinating agency, was created by a partnership between the Department of Justice and various law enforcement and regulatory agencies. Its goal is to improve and further the detection, prevention, investigation, and prosecution of fraud related to natural and man-made disasters, and to advocate for the victims of such fraud.
In the wake of Hurricane Ian, there is no indication that criminals will slow down their efforts to commit fraud on individuals already victimized by the storm. The following examples of disaster-related fraud are based on over 200,000 historical complaints submitted to the NCDF:
- Fake charities immediately soliciting donations using the names of well-known charities or appearing reasonable as related to a disaster
- Individuals impersonating government officials and insurance company representatives advising that disaster assistance will be made available should the potential victim provide a sum of money or personal identifiers such as date of birth, social security number and bank account information (name of financial institution, routing number and account number)
- Individuals soliciting victims to invest in non-existent businesses and ventures offering recovery efforts such as cleanup, rebuilding and making structures, such as homes, more resistant to future disasters by elevating structures to minimize future flood risks
- Individuals overcharging for goods and services needed by victims of disaster, also known as price-gouging
In addition, based on the type of disaster, individuals are frequently victimized by theft of property from businesses and residences abandoned because of a disaster (either pre-disaster evacuation or to obtain living accommodations because of damaged apartments and homes).
Recommended measures to avoid becoming a victim of disaster fraud:
- Only make donations to known charities and only after contacting the charity directly and not in response to an email, instant message, phone call, text, etc. A recommended step is to research the charity by visiting recognized charity information/rating websites such as the Give.org, CharityNavigator.org and CharityWatch.org
- Never click on a link in an unsolicited email, instant message, text, etc.
- Never assume that charity solicitations posted on the internet and social media are legitimate
- Avoid cash donations to charities - use a credit card or pay with a check
- Never transmit donations to a specifically named individual
- Charities do not seek donations via electronic fund (financial institution)/wire transfers, so do not wire donations
- Avoid being victimized by impersonators of government officials, insurance companies, investment companies, etc., by terminating the phone call or other exchange of information (e.g., email, texts) and calling the actual government agency, insurance company, and/or investment company directly using a well-advertised phone number or email address
Individuals who have been targeted by fraudsters or been the victim of disaster-related fraud are encouraged to contact the NCDF at (866) 720-5721 or online at www.justice.gov/DisasterComplaintForm.
Montgomery Man Sentenced Following Federal Gun and Drug ConvictionsRead the Press Release
Montgomery, Alabama – On October 5, 2022, Michael Daniel Ruff, 64, from Montgomery, Alabama, was sentenced to 72 months in prison for possession with intent to distribute methamphetamine and for possessing a firearm in furtherance of the methamphetamine offense, announced United States Attorney Sandra J. Stewart. There is no parole in the federal system.
According to Ruff’s plea agreement and other court documents, on January 26, 2022, an Alabama State Trooper patrolling Elmore County initiated a traffic stop on a vehicle Ruff was driving. During the stop, Ruff agreed to allow the trooper to search the vehicle. The search resulted in the discovery of methamphetamine and a handgun inside the vehicle. Ruff admitted both belonged to him.
On June 3, 2022, Ruff pleaded guilty to the methamphetamine and firearm offenses. During the sentencing hearing, the federal prosecutor noted to the court that law enforcement agents found on Ruff’s phone multiple text messages referring to selling methamphetamine.
This case was investigated by the Alabama Law Enforcement Agency and the FBI, with assistance from the Drug Enforcement Administration. Assistant United States Attorney Joel Feil prosecuted the case.
Montgomery County Drug Dealer Sentenced to over Nine Years in Federal Prison for Distribution of Fentanyl That Led to an Overdose DeathRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Enitan Mouroukeji Agbi, a/k/a “Anton Agbi” and “Tone,” age 38, of Germantown, Maryland to 114 months in federal prison, followed by five years of supervised release, for distribution of fentanyl. A victim died from using drugs that Agbi distributed. Judge Grimm also ordered Agbi to pay restitution of at least $1,125.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division; Chief Marcus Jones of the Montgomery County Police Department; Chief Malik Aziz of the Prince George’s County Police Department; Chief Darryl McSwain of the Maryland National Capital Park Police; Chief Robert J. Contee III of the Metropolitan Police Department; and Chief Victor Brito of the City of Rockville Police Department.
According to his guilty plea, on August 10, 2020, Victim 1 contacted Agbi by telephone to obtain heroin/fentanyl and agreed to meet Agbi at Hotel A in Gaithersburg, where Agbi was staying. Upon arriving at the hotel, Victim 1 texted Agbi and Agbi went out to Victim 1’s car to complete the transaction. A short time later, Victim 1 left the area and went straight home, without making any other stops.
At about 10:00 p.m. on August 10, 2020, Victim 1 was found dead in her bedroom. Law enforcement officers located a clear plastic baggie containing .42 grams of fentanyl mixed with heroin and a straw next to Victim 1’s body. No one else was in Victim 1’s residence at the time of Victim 1’s death and Victim 1 lived alone. An autopsy determined that Victim 1’s cause of death was acute intoxication by the combined effects of fentanyl, despropionyl fentanyl, and morphine. Victim 1 was an otherwise healthy individual.
After August 25, 2020, Agbi relocated to Hotel B in Germantown, Maryland. On August 28, 2020, law enforcement officers executed a search warrant at Agbi’s hotel room and recovered approximately 10 clear plastic capsules containing a total of approximately 2.76 grams of fentanyl mixed with heroin, knotted bags containing a total of approximately 2.6 grams of heroin mixed with fentanyl, and drug distribution paraphernalia, including a digital scale and sandwich bags used to package controlled substances, which were consistent with the clear plastic baggie found with Victim 1 on August 10, 2020. After Agbi was arrested he admitted that he was a user and distributor of opioid drugs and that he provided Victim 1 with opioid drugs on August 10, 2020.
United States Attorney Erek L. Barron commended the DEA, the Montgomery County Police Department, the Prince George’s County Police Department, the Maryland National Capital Park Police, the Metropolitan Police Department, and the City of Rockville Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Elizabeth Wright and Joel Crespo, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/community-outreach.
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Monmouth County Man Indicted for Laundering Money for Black Axe in South AfricaRead the Press Release
NEWARK, N.J. – A Monmouth County, New Jersey, man has been indicted for laundering money on behalf of the Cape Town Zone of Black Axe, U.S. Attorney Philip R. Sellinger announced today.
Andrew Suarez, 29, of Middletown, New Jersey, is charged by indictment with money laundering conspiracy, substantive money laundering counts, and aggravated identity theft. He is scheduled to appear today before U.S. Magistrate Judge Edward S. Kiel in Newark federal court.
According to documents filed in this case and statements made in court:
From August 2017 through December 2017, Suarez worked with conspirators to launder money to entities in the Cape Town, South Africa, area, including to an account in the name of Abravoo Trading Company, an entity controlled by a founding member of the Cape Town Zone of Black Axe. Black Axe members were responsible for widespread internet-based fraud schemes.
Suarez opened up bank accounts in the United States, which were then used to conceal money obtained through business email compromises and other fraud schemes. Suarez transferred the proceeds of the fraud schemes to other U.S. bank accounts and wired proceeds to bank accounts in Cape Town, South Africa. To avoid detection, Suarez changed the information on some of his bank accounts, so the accounts listed the name and address of a victim.
Each of the money laundering charges carries a maximum term of 20 years in prison and a fine of up to $500,000 or twice the value of the funds involved in the transfer, whichever is greater. The aggravated identity theft count carries a mandatory two-year prison term, which must run consecutively to any other term of imprisonment, and a fine not to exceed $250,000.
U.S. Attorney Sellinger credited special agents of the FBI, Red Bank Office, under the direction of Special Agent in Charge James E. Dennehy in Newark, and the U.S. Secret Service’s Newark Division, under the direction of Special Agent in Charge Jose Riera, with the investigation leading to today’s charges. He also thanked the Monmouth County Prosecutor’s Office, under the direction of Acting Monmouth County Prosecutor Raymond Santiago, for its assistance in the case.
The government is represented by Assistant U.S. Attorney Jamie H. Solano of the Cybercrime Unit in Newark.
Minneapolis Man Arrested, Charged with Carjacking a Woman at GunpointRead the Press Release
MINNEAPOLIS – A Minneapolis man has been arrested and charged with carjacking a woman at gunpoint in Arden Hills, announced U.S. Attorney Andrew M. Luger.
According to court documents and a law enforcement affidavit, on September 13, 2022, at approximately 7:25 a.m., Raphael Raymond Nunn, 50, approached a woman who had just parked her vehicle in an underground parking garage in Arden Hills. Nunn, who was wearing a dark baseball cap, dark jacket, surgical mask, and cloth gloves, and carrying a handgun, pushed the victim to the ground and then forced her at gunpoint to get back into her vehicle. Nunn ordered the victim to drive to an ATM machine and forced her to withdraw cash. Nunn then ordered the victim to drive to Matthews Park in south Minneapolis. Upon arrival, at Nunn’s direction, the victim gave her keys to Nunn and exited the vehicle.
According to the affidavit, Nunn was captured on surveillance videos from cameras around the scene of the crime. Nunn can be seen exiting the victim’s vehicle, removing his hood and mask, and entering a nearby deli and grocery store. Four days later, Nunn returned to the same store driving a vehicle registered in his name and wearing the same shirt he wore during the carjacking incident. Nunn was arrested on September 17, 2022, at his Minneapolis residence.
Nunn is charged with one count of carjacking. He made his initial appearance yesterday in U.S. District Court before Magistrate Judge Elizabeth Cowan Wright and was ordered to remain in detention pending further proceedings.
This case is the result of an investigation conducted by the FBI, the Ramsey County Sheriff’s Office, and the Minneapolis Police Department.
Assistant U.S. Attorney Sarah Hudleston is 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.
Milwaukee Man convicted for scheme to obtain over $80 million in fraudulent tax refunds.Read the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on October 5, 2022, Francis T. Burns (52) was convicted after a two-day jury trial. Burns was indicted on December 17, 2019, and a superseding indictment was filed on November 17, 2020. The superseding indictment charged Burns with committing wire fraud, mail fraud, money laundering, and submitting a false claim to the Internal Revenue Service (IRS), in violation of 18 U.S.C. §§ 1341, 1343, 1957, and 287.
At trial, the United States proved that between 2016 and 2019, Burns engaged in a scheme to defraud the IRS into paying millions of dollars in refunds to which Burns was not entitled. To obtain those refunds, Burns claimed to be filing returns on behalf of an estate or a trust that in reality did not exist. Burns’ false tax returns attached and were based on fake 1099s that falsely claimed significant sums of income were withheld for federal taxes by third parties such as banks. In reality, Burns was unemployed and there was no estate, no trust, and no income.
Over the period of the scheme, Burns filed five false tax returns asking for refunds totaling more than $80 million. Although Burns did not receive the majority of the money, he spent the refunds he did receive on an expensive house in Chicago, a Mercedes, and other personal expenses. The IRS later seized and forfeited a significant percentage of the money, the house, and the car.
Burns is scheduled to be sentenced before Hon. Lynn Adelman on January 4, 2023. He faces up to 20 years’ imprisonment on the mail and wire fraud convictions, up to ten years’ imprisonment on the money laundering charges, and up to five years’ imprisonment for filing a false claim. He also faces three years of supervised release for each count.
The Criminal Investigation Division of the Internal Revenue Service investigated this case, which Assistant United States Attorneys Julie F. Stewart and John P. Scully prosecuted.
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Michigan Man Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Michael Henderson, 34, of Michigan, pleaded guilty to possession with intent to distribute 500 grams or more of methamphetamine.
According to court documents and statements made in court, on March 3, 2022, law enforcement officers conducted a traffic stop of a vehicle in which Henderson was a passenger in downtown Charleston. During the traffic stop, a police K-9 alerted to the presence of controlled substances in a duffel bag belonging to Henderson. Officers searched the bag and found approximately 5 pounds of methamphetamine.
Henderson is scheduled to be sentenced on January 26, 2023, and faces a mandatory minimum of 10 years and up to life in prison, five years of supervised release and a $20 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Metropolitan Drug Enforcement Network Team (MDENT).
United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorney Monica D. Coleman is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-65.
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Mexico citizen arrested in Kalispell on suspicion of trafficking fentanyl appears in courtRead the Press Release
MISSOULA — A Mexican citizen who was arrested in Kalispell on suspicion of trafficking fentanyl after law enforcement seized approximately 12,000 fentanyl pills, a firearm and more than $62,000 cash from a vehicle in which he was a passenger had an initial appearance on Oct. 6 on a criminal complaint, U.S. Attorney Jesse Laslovich said today.
A criminal complaint filed in the case accuses Cuauhtemoc Cervantes Samaniego, 29, of Mexico, of possession with intent to distribute fentanyl and conspiracy to distribute fentanyl. If convicted of the most serious charge, Samaniego faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years to life of supervised release.
A criminal complaint is only an accusation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
U.S. Magistrate Judge Kathleen L. DeSoto presided. Samaniego was detained pending further proceedings.
Court documents allege that Samaniego was trafficking fentanyl in Flathead County from about May 2022 to October. During the first week of October, law enforcement learned of a possible sizable load of fentanyl that was going to be transported from San Diego, California, to Kalispell for distribution and that the source of the fentanyl was an individual known as “Johnny.” Investigators further learned that “Johnny” was having large quantities of fentanyl transported to Kalispell for distribution. On Oct. 4, law enforcement received information that “Johnny” would be arriving at a location in Kalispell in a black Honda Civic to conduct a drug transaction. Officers located the vehicle, in which “Johnny” was identified as the passenger and later identified as Samaniego. The driver, who owned the vehicle, consented to a search of the car. Law enforcement found approximately 12,000 blue pills known to be fentanyl under the center console. Additionally, law enforcement located a semi-automatic pistol and seized more than $62,000 cash from the vehicle.
Assistant U.S. Attorney Jennifer S. Clark is prosecuting the case, which was investigated by Homeland Security Investigations.
PACER case reference. 22-mj-73.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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