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9 November 2022
Leader of Midwest Drug Ring Found Guilty of Drug Conspiracy and Money Laundering ChargesRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced announced that Ray Noel Camacho, a/k/a “Pato,” age 38, from Nebraska, but currently serving a 31 to 64-year prison sentence for terroristic threats and use of a firearm to commit a felony, was found guilty of Conspiracy to Distribute a Controlled Substance and Conspiracy to Commit Money Laundering, as a result of a federal jury trial in Sioux Falls, South Dakota. The verdict was returned on November 3, 2022.
The charges, due to sentencing guidelines in Camacho’s case, carry a mandatory minimum of 10 years in prison and a maximum penalty of life in custody and/or a $10 million fine, life of supervised release, and a $200 special assessment to the Federal Crime Victims Fund.
Camacho was indicted by a federal grand jury in August of 2021.
Ray Camacho, a/k/a “Pato”, was the leader of a large drug trafficking organization based in the Sioux Falls area, which was responsible for the distribution of at least 120 pounds of methamphetamine. This consisted of approximately 70 lbs. of methamphetamine seized in South Dakota alone. In May of 2019, one traffic stop led to a search and seizure of 50 pounds of methamphetamine, which was stored within a spare tire and hidden compartments within the vehicle.
Mr. Camacho arranged and strategically orchestrated multi-pound deliveries of methamphetamine from Mexico, and payment for said deliveries, through three-way phone calls made from the South Dakota State Penitentiary. Said calls were recorded by the prison and used as key evidence in his trial. Camacho recruited numerous co-conspirators to aid him in his organization, which included current and former inmates and individuals known to them from the outside community. Camacho is the last of 22 defendants involved in this drug trafficking organization to be found guilty.
This case was investigated by the Drug Enforcement Administration, South Dakota Department of Criminal Investigation, Sioux Falls Area Drug Task Force, and the IRS Criminal Investigation team. Assistant U.S. Attorneys Mark Hodges and Paige Petersen prosecuted the case.
A presentence investigation was ordered and a sentencing date has not yet been set. The defendant was remanded to the custody of the U.S. Marshals Service.
Kanawha County Man Sentenced to Prison for Fentanyl CrimeRead the Press Release
CHARLESTON, W.Va. – Danise Maurice Fortune, 41, of St. Albans, was sentenced today to seven years and three months in prison, to be followed by three years of supervised release, for distribution of fentanyl.
According to court documents and statements made in court, on January 25, 2022, Fortune sold approximately 11 grams of suspected heroin for $1,300 to a confidential informant in St. Albans. The West Virginia State Police Forensic Laboratory confirmed the controlled substance was approximately 9.2 grams of fentanyl and also contained phencyclidine, also known as PCP.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Charleston Police Department, and the Kanawha County Sheriff’s Office.
Chief United States District Judge Thomas E. Johnston imposed the sentence. Assistant United States Attorney Ryan A. Keefe prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-69.
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Jury Convicts Schenectady Man of Drug Charges and Possessing a Firearm in Furtherance of Drug TraffickingRead the Press Release
ALBANY, NEW YORK – Brandon Prawl, age 28, of Schenectady, New York, was convicted today of four counts of distributing heroin, possessing heroin with the intent to distribute, and possessing a firearm in furtherance of a drug trafficking crime, following a 3-day jury trial.
The announcement was made by United States Attorney Carla B. Freedman; John B. DeVito, Special Agent in Charge of the New York Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and New York State Police Acting Superintendent Steven A. Nigrelli.
The evidence at trial established that on four dates in September 2019, Prawl distributed heroin out of a residence in Schenectady. On October 4, 2019, Prawl was found in possession of a .45 caliber pistol and loaded magazine, more than 21 grams of heroin, and drug distribution paraphernalia at the same residence. The jury concluded that Prawl possessed the heroin for distribution, and the firearm in furtherance of his drug trafficking activities.
Prawl faces at least 5 years and up to life in prison when he is sentenced by United States District Judge Glenn T. Suddaby on March 30, 2023. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the ATF and New York State Police, and is being prosecuted by Assistant United States Attorneys Ashlyn Miranda and Emmet O’Hanlon.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Jefferson Parish Felons Sentenced for Drug Trafficking and Firearm OffensesRead the Press Release
NEW ORLEANS, LA – United States Attorney Duane A. Evans announced that ANTHONY PITTMAN, age 33, of Metairie, Louisiana, was sentenced on November 1, 2022. His co-defendant, JOSEPH WOODS, age 31, of Metairie Louisiana, was sentenced on November 7, 2022. They both previously pleaded guilty as charged to a three-count indictment. Count 1 charged the defendants with possession with intent to distribute controlled substances in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C); Count 2 charged them with possession of a firearm in furtherance of a drug trafficking crime in violation of Title 18, United States Code, Section 924(c)(1)(A)(i); and Count 3 charged them with possession of a firearm by a convicted felon in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
According to court documents, PITTMAN and WOODS were both previously convicted of drug trafficking, among other felony firearm and drug offenses in Jefferson Parish. Due to these convictions, it is unlawful for either of them to possess a firearm. They are now convicted of possessing multiple firearms and possessing with the intent to distribute cocaine, cocaine base (“crack”), and heroin. The two were apprehended after a high-speed chase during an attempted traffic stop on October 4, 2020 in Westwego, Louisiana. The drugs were found in two camouflage bags which were originally seen by officers inside the car but thrown on the side of the road as the defendants tried to escape. Additional evidence consistent with drug trafficking was found in the center console of the vehicle.
PITTMAN was sentenced to a total term of imprisonment of 322 months. This consists of 240 months for Count 1, 262 months for Count 2, and 60 months for Count 3. Counts 1 and 2 are to run concurrently, while Count 3 will run consecutively. Upon release from prison, he will serve a term of three years of supervised release.
WOODS was sentenced to a total term of imprisonment of 262 months. This consists of 202 months for Count 1, 120 months for Count 2, and 60 months for Count 3. Counts 1 and 2 are to run concurrently, while Count 3 will run consecutively. Upon release from prison, he will serve a term of three years of supervised release.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Westwego Police department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Charles D. Strauss is in charge of the prosecution.
Jamestown Man Pleads Guilty to Selling Fentanyl That Led to A DeathRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Garson E. Butcher, 30, of Jamestown, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to with distribution of fentanyl causing death, narcotics conspiracy, and using and maintaining a drug-involved premises. The charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that according to the indictment, between March 2020, and June 2021, Butcher and co-defendant Alisha Centi conspired with others to possess and sell heroin, fentanyl, and methamphetamine. On March 29, 2020, Butcher and Centi sold fentanyl which resulted in the death of an individual identified as T.R. On September 28, 2020, Butcher and Centi sold heroin to an individual identified as K.K., who overdosed but regained consciousness after receiving multiple doses of Narcan. In addition, Butcher and Centi used residences on Fairview Avenue and Roland Road to manufacture and distribute heroin, fentanyl, and methamphetamine.
Charges remain pending against Alisha Centi.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division, the Jamestown Police Department, under the direction of Chief Timothy Jackson, and the Chautauqua County Sheriff’s Office, under the direction of Sheriff James B. Quattrone.
Sentencing is scheduled for March 14, 2023, at 10:00 a.m. before Judge Sinatra.
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Jackson Man Pleads Guilty to Possessing a Firearm as a Convicted Felon after Selling AR-Style Rifle to FBIRead the Press Release
Jackson, Miss. – A Jackson man pled guilty today to possessing a firearm as a convicted felon, announced Acting U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
According to court documents, Malcolm Undrea Spires, 55, sold a semiautomatic AR-style rifle pursuant to a sting operation conducted by the Federal Bureau of Investigation on November 22, 2021. Spires has two prior felony convictions, one of which is for possessing a firearm as a convicted felon.
Spires pled guilty to a violation of Title 18, United States Code, Section 922(g)(1) which criminalizes the possession of firearms by convicted felons. He is scheduled to be sentenced on February 16, 2023, and faces a maximum penalty of 10 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Federal Bureau of Investigation is investigating the case.
Assistant U.S. Attorney Bert Carraway is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Jackson Man Pleads Guilty to Being a Convicted Felon in Possession of a FirearmRead the Press Release
Jackson, Miss. – A Jackson man pleaded guilty today to being a convicted felon in possession of a firearm, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
According to court documents, Earnest Guise, 41, was found in possession of a firearm by a Jackson Police Department Officer on June 6, 2021, during an investigation into a reported shooting. Guise has multiple prior felony convictions. As a convicted felon it is contrary to federal law for Guise to possess any firearm.
On February 8, 2022, a federal grand jury indicted Guise for possession of a firearm as a convicted felon. He will be sentenced on February 13, 2022 and faces a maximum penalty of ten years in prison and a $250,000 fine. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by the FBI and the Jackson Police Department. It is being prosecuted by Assistant United States Attorney Jessica S. Terrill.
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.
Indiana School Teacher Charged with Traveling to Kentucky to Engage in Sexual Conduct with a MinorRead the Press Release
Bowling Green, KY – A federal grand jury in Bowling Green, Kentucky returned a three-count indictment today charging an Evansville, Indiana high school teacher with traveling across state lines to Owensboro, Kentucky, for the purpose of engaging in illicit sexual conduct with a person he believed to be a fifteen-year-old child, attempted enticement of a minor, and attempted transfer of obscene material to a minor.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Robert Holman of the United States Secret Service Louisville Field Office, Kentucky Attorney General Daniel Cameron, Commissioner Phillip Burnett, Jr. of the Kentucky State Police, and Chief Art Ealum of the Owensboro Police Department made the announcement.
The charges were the result of a joint federal, state, and local operation called Operation Angel, aimed at making federal arrests of sexual predators who prey upon children in the Owensboro area. The operation, which was led by the United States Secret Service, included the United States Attorney’s Office for the Western District of Kentucky, the Kentucky Office of the Attorney General, the Kentucky State Police, and the Owensboro Police Department.
According to court documents, Cody McCormick, 27, of Evansville, Indiana, was charged with one count of attempted enticement of a minor, one count of interstate travel to engage in illicit sexual activity with a minor, and one count of attempted transfer of obscene material to a minor. McCormick faces a minimum sentence of 10 years in prison and a maximum sentence of life in prison for the enticement charge. McCormick also faces a maximum sentence of 30 years in prison for the charge of interstate travel to engage in illicit sexual conduct with a minor and a maximum sentence of 10 years in prison for the obscenity charge. If convicted, a federal district court judge will determine any sentence imposed upon McCormick after considering the sentencing guidelines and other statutory factors. There is no parole in the federal system.
The defendant will make an initial court appearance on a later date before a U. S. Magistrate Judge of the U. S. District Court for the Western District of Kentucky in Owensboro.
The United States Secret Service, the Kentucky Office of the Attorney General, the Kentucky State Police, and the Owensboro Police Department are investigating the case.
Assistant United States Attorney A. Spencer McKiness is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Indian National Charged in $8 Million COVID-19 Relief Fraud SchemeRead the Press Release
A federal grand jury in Newark, New Jersey, returned an indictment today charging an Indian national for fraudulently obtaining millions of dollars in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, Abhishek Krishnan, 40, previously resided in Wake County, North Carolina, before returning to his home country of India. After returning to India, Krishnan allegedly submitted numerous fraudulent PPP loan applications to federally insured banks, including on behalf of purported companies that were not registered business entities. The fraudulent PPP loan applications allegedly included false statements about the companies’ employees and payroll expenses, as well as falsified tax filings. As part of the fraud scheme, Krishnan allegedly used the name of another person without that person’s authority. Krishnan allegedly submitted at least 17 PPP loan applications seeking over $8.2 million and received more than $3.3 million in loan proceeds. Following receipt of the funds, Krishnan allegedly laundered the proceeds of the fraud.
Krishnan is charged with two counts of wire fraud, two counts of money laundering, and two counts of aggravated identify theft. If convicted, Krishnan faces a maximum penalty of 20 years in prison on each of the top counts and a mandatory minimum of two years in prison on each count of aggravated identify theft. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Philip R. Sellinger for the District of New Jersey; Special Agent in Charge Mark Morini of the U.S. Treasury Inspector General for Tax Administration (TIGTA), Southeast Field Division; Special Agent in Charge Kyle A. Myles of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), Atlanta Region; U.S. Marshal Michael East for the Eastern District of North Carolina; and Special Agent in Charge Amaleka McCall-Brathwaite of the Small Business Administration Office of Inspector General (SBA-OIG), Eastern Region made the announcement.
The TIGTA, FDIC-OIG, U.S. Marshals Service, and SBA-OIG are investigating the case.
Assistant Chief Justin Woodard and Trial Attorney Thomas D. Campbell of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Katherine M. Romano for the District of New Jersey are prosecuting the case, with assistance from Assistant U.S. Attorney Susan B. Menzer for the Eastern District of North Carolina.
In a separate case, Krishnan was recently charged in the Eastern District of North Carolina with theft of government property and aggravated identity theft regarding his alleged receipt of unemployment insurance benefits funded by the federal government in response to the COVID-19 pandemic.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 150 defendants in more than 95 criminal cases and has seized over $75 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Illinois Man Sentenced to 33 Months in Prison for $157,000 Bank FraudRead the Press Release
ST. LOUIS – U.S. District Judge John A. Ross on Tuesday sentenced a man from Granite City, Illinois to 33 months in prison for a fraud scheme that cost Commerce Bank at least $157,000. Judge Ross also ordered Wigfall to repay the money.
Beginning in 2018, Clarence Wigfall Jr., 33, deposited hundreds of worthless checks into at least 55 separate accounts. He started by asking Commerce Bank account holders in public Facebook posts and elsewhere to give him their debit cards and account information in exchange for cash. Wigfall then deposited worthless checks into their accounts via ATMs in eastern Missouri and southern Illinois, often shielding himself from view of surveillance cameras with a piece of paper. He and his associates then withdrew money before the bank detected the fraud. The checks had been written on frozen accounts, blocked accounts, closed accounts, fake accounts and accounts with insufficient funds. Some of the checks also had forged signatures.
At least ten of the checking account holders did not authorize Wigfall to use their information in his scheme.
Wigfall pleaded guilty in August to a bank fraud charge.
The case was investigated by the U.S. Secret Service. Assistant U.S. Attorney Derek Wiseman is prosecuting the case.
Huron Man Sentenced to 10 Years in Federal Custody for Role in Drug ConspiracyRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that a Huron, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on November 7, 2022, by U.S. District Judge Karen E. Schreier.
Jeffrey Pomerico, 27, was sentenced to 10 years in federal prison, followed by five years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Pomerico was indicted for conspiracy to distribute a controlled substance by a federal grand jury in December of 2021. He pleaded guilty on August 15, 2022.
Beginning on an unknown date and continuing until on or about December 7, 2021, Pomerico reached an agreement to distribute methamphetamine, a Schedule II controlled substance, in the District of South Dakota. He voluntarily and intentionally joined the methamphetamine conspiracy sometime around the summer of 2021.
During his involvement, Pomerico personally participated in the handling and distribution of over 500 grams of a mixture and substance containing methamphetamine. He had an agreement with a co-conspirator to obtain methamphetamine from him on a regular basis, for redistribution in South Dakota.
On October 27, 2021, Pomerico and another co-conspirator agreed to meet with Christopher Daniels, who is being sentenced for his role in this conspiracy on November 14, 2022, for the purpose of purchasing one pound of methamphetamine. After they purchased the pound of methamphetamine from Mr. Daniels at his home in Trent, South Dakota, law enforcement tried to stop their vehicle and his co-conspirator did not stop for the police. Eventually, they pulled into a cornfield, and threw the pound of methamphetamine out of the window. Pomerico then got out of the vehicle and tried to hide from law enforcement officers. Eventually, the officers found both him and the one pound of methamphetamine in the cornfield.
This case was investigated by the Sioux Falls Police Department, Drug Enforcement Administration, U.S. Postal Inspection Service, and the South Dakota Highway Patrol. Assistant U.S. Attorney Mark Hodges prosecuted the case.
Pomerico was immediately remanded to the custody of the U.S. Marshals Service.
Houston woman charged for filing false tax returns for othersRead the Press Release
HOUSTON – A local tax preparer is set to make her initial appearance in federal court on charges of aiding and assisting in the preparation and filing of false income tax returns, announced U.S. Attorney Jennifer B. Lowery.
Krystal Wright made her initial appearance before U.S. Magistrate Judge Palermo at 2 p.m. today.
A federal grand jury sitting in Houston returned an 18-count indictment Sept. 27.
According to the charges, Wright assisted in the preparation and filing of false income tax returns from 2016 to 2019.
If convicted, she faces up to three years in prison and a possible $100,000 maximum fine.
IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Rodolfo Ramirez is prosecuting the case.
An information is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Houma Man Sentenced to Seventeen and a Half Years for Enticing Teen Boys to Create Sexually Explicit Images and VideosRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that STEVE C. MERGEY (“MERGEY”), age 52, of Houma, Louisiana, was sentenced on November 8, 2022 for Production of Child Pornography, in violation of Title 18, United States Code, Sections 2251(a) and (e).
According to documents filed in federal court, the case against MERGEY developed as a result of a complaint to the U.S. Department of Homeland Security (“HSI”) Tip Line. On June 4, 2020, HSI Agents executed a federal search warrant at MERGEY’S residence located in Houma, LA. HSI’s investigation revealed that MERGEY groomed and coerced young male victims, as young as ten years old, who were living in Pennsylvania, New York, and Michigan to create and send sexually explicit images of themselves to MERGEY.
U.S. District Judge Wendy B. Vitter sentenced MERGEY to 210 months imprisonment, a life-term of supervised release and registration as a sex offender.
“The sentence is a gratifying outcome for the HSI special agents and law enforcement partners who are committed to protecting our nations’ innocense,” said Special Agent in Charge Dave Denton, HSI New Orleans. “We hope this serves as part of the healing process for the victims, and a reminder to those who harm children - HSI will not stop pursuing and bringing you to justice.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the U. S. Department of Homeland Security, Houma RAC and Pittsburg Office; Terrebonne Parish Sheriff’s Office; Houma Police Department; Louisiana State Police, Criminal Investigative Division; and Oswego County Sheriff’s Office, NY with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.
Harrisonburg Bank Robber Sentenced to 105 Months in PrisonRead the Press Release
HARRISONBURG, Va. – A Harrisonburg, Virginia man, who used a BB gun to rob First Citizen Bank on University Boulevard in Harrisonburg on January 4, 2022, was sentenced yesterday to 105 months in federal prison.
Charles Joseph Hood, 63, pleaded guilty in August 2022 to one count of armed bank robbery.
According to court documents, on January 4, 2022, Hood walked into the bank wearing a dark mask, sunglasses, hat, wig, and brown work boots and initially inquired about opening an account with the manager of the bank. Once inside the manager’s office, Hood brandished what appeared to be a firearm, but was later found to be a Daisy Powerline 426 .177 caliber BB gun and instructed the manager to walk over to the tellers’ station. Hood then demanded that the manager put on a gray glove and retrieve large bills only, no dye packs, and not to trigger the bank’s alarm system. The manager and two tellers separately collected $15,908 in cash and placed it in a makeshift bag provided by Hood while one of the tellers pressed the bank’s silent alarm system alerting law enforcement.
Hood exited the bank, got onto a bicycle, and fled the scene. Approximately a half-mile away, Hood discarded the bike, wig, and his outer jacket, and walked into a restaurant where he entered the bathroom and lifted an oil painting off the wall. After placing the BB gun behind the painting where it was out of view and undetectable, Hood walked to the nearby Walmart Supercenter and bought a pair of shoes. He then discarded his work boots and attempted to call a taxi.
Meanwhile, the Harrisonburg Police Department had responded to the silent alarm and were in the area searching for individuals who matched Hood’s description. An officer, seeing Hood outside the Walmart, approached him, but Hood began to walk away from the officer, telling him that his wife was in labor before eventually running away from the officer.
When officers caught up to him, they found the makeshift bag stuffed into Hood’s pants that contained $15,606 in cash and a gray glove that matched the one left with the bank manager.
United States Attorney Christopher R. Kavanaugh and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Division made the announcement.
The Harrisonburg Police Department and the Federal Bureau of Investigation investigated the case.
Assistant U.S. Attorneys Sean Welsh and Jordan E. McKay prosecuted the case.
Grant County man admits to drug and firearms chargesRead the Press Release
ELKINS, WEST VIRGINIA – Christian Adam Fisher, of Petersburg, West Virginia, has admitted to distributing a large amount of methamphetamineand having a firearm during the crime, United States Attorney William Ihlenfeld announced.
Fisher, 43, pleaded guilty today to one count of “Possession with Intent to Distribute Methamphetamine” and one count of "Possession of a Firearm in Futherance of a Drug Crime." Fisher admitted to having more than 50 grams of methamphetamine and having a 9mm pistol during the crime in February 2022 in Grant County.
Fisher faces at least 10 years and up to life in prison and a fine of up to $10 million for the drug charge and faces at least five years and up to life incarceration for the firearms charge . Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, investigated. The task force consists of the FBI, the Drug Enforcement Administration, West Virginia State Police, Mineral County Sheriff’s Office, Hampshire County Sheriff’s Office, Grant County Sheriff’s Office, the Hardy County Sherifff's Office, and the Keyser Police Department.
U.S. Magistrate Judge Michael John Aloi presided.
Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. - A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Janesville Woman Charged with CARES Act Fraud Scheme
Olivia Spellman, 35, Janesville, Wisconsin, is charged with seven counts of mail fraud. The indictment alleges that from August 2020 to April 2021, Spellman engaged in a fraud scheme to collect unemployment insurance (UI) benefits authorized by the Coronavirus Aid, Relief, and Economic Security Act. The indictment alleges that Spellman used the names of other individuals, as well as her own name, to obtain UI benefits from multiple state workforce agencies in Alabama, California, Colorado, Illinois, Indiana, Massachusetts, Nevada, Ohio, Texas, and Wisconsin. The indictment alleges that she attempted to cause a fraud loss amount of $1,026,508 and caused an actual fraud loss amount of $506,097 in requests and payments for unauthorized UI benefits from the aforementioned states.
If convicted, Spellman faces a maximum penalty of 20 years in federal prison on each count. The charges against her are the result of an investigation by the U.S. Postal Inspection Service and the U.S. Department of Labor - Office of Inspector General. Assistant U.S. Attorney Daniel Graber is handling the prosecution.
Madison Woman Charged with Wire Fraud & Money Laundering Related to CARES Act Loans
Sharon Johnson, 54, Madison, Wisconsin, is charged with two counts of wire fraud and one count of money laundering related to applications for Payroll Protection Program (PPP) loans available to small businesses for job retention and other expenses, and for an Economic Injury Disaster Loan (EIDL) for small businesses that experienced substantial financial hardship due to the COVID-19 pandemic, both authorized by the Coronavirus Aid, Relief, and Economic Security Act.
The indictment alleges that Johnson applied for and received two PPP loans and an EIDL for Gray Enterprises, LLC, a company incorporated by Johnson in 2018. The indictment alleges that Johnson provided fraudulent information in the applications concerning the number of people employed by Gray Enterprises and the company’s payroll and other expenses. The indictment alleges that the Internal Revenue Service has no records showing Gray Enterprises reported business income or employed any people in the tax years 2018 through 2020. The indictment alleges that Johnson received approximately $109,773 as a result of the fraudulent applications and that she used some of these proceeds for personal expenses.
If convicted, Johnson faces a maximum penalty of 20 years in federal prison on each wire fraud count and 10 years on the money laundering count. The charges against her are the result of an investigation by IRS Criminal Investigation, the Small Business Administration – Office of Inspector General, and the Federal Bureau of Investigation. Assistant U.S. Attorney Chadwick Elgersma is handling the prosecution.
Sun Prairie Man Charged with Producing Child Pornography
Robert D. Sutton, Jr., 51, Sun Prairie, Wisconsin, is charged with four counts of producing child pornography and four counts of committing these felony offenses involving a minor while he was an individual required by federal or other law to register as a sex offender. The indictment alleges that on four occasions between March 2019 and May 2021, Sutton used a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of the conduct. Specifically, the indictment alleges that Sutton used a cellular telephone to produce videos of a minor engaged in sexually explicit conduct.
If convicted, Sutton faces a mandatory minimum of 15 years and a maximum of 30 years in federal prison on each production charge, and a mandatory penalty of 10 years on each charge of committing a felony offense involving a minor while he was an individual required to register as a sex offender.
The charges against Sutton are the result of an investigation by the Sun Prairie Police Department and the Wisconsin Department of Justice Division of Criminal Investigation, with assistance from the Dane County District Attorney’s office. Assistant U.S. Attorney Elizabeth Altman is handling the prosecution.
Trempealeau County Man Charged with Producing Child Pornography
Stephen Hans Jenkins, 37, Trempealeau, Wisconsin, is charged with three counts of producing child pornography and two counts of committing a felony offense involving a minor while he was an individual required by federal or other law to register as a sex offender. The indictment alleges that on December 31, 2020, Jenkins used a minor to engage in sexually explicit conduct for the purpose of producing two visual depictions of the conduct and that the visual depictions were transferred in interstate commerce from Nevada or Utah to Wisconsin. The indictment also alleges that on July 4, 2017, he used a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of the conduct and that the visual depiction was transferred in interstate commerce from Utah to Wisconsin.
If convicted, Jenkins faces a mandatory minimum of 15 years and a maximum of 30 years in federal prison on each production charge, and a mandatory penalty of 10 years on each charge of committing a felony offense involving a minor while he was an individual required to register as a sex offender.
The charges against Jenkins are the result of an investigation by the Federal Bureau of Investigation, Village of Trempealeau Police Department, Trempealeau County Sheriff’s Office, Wisconsin Department of Justice Division of Criminal Investigation, and the Ogden City (Utah) Police Department. Assistant U.S. Attorney Elizabeth Altman is handling the prosecution.
Madison Man Charged with Distributing Methamphetamine
Matthew J. Yancey, 22, Madison, Wisconsin, is charged with five counts of distributing methamphetamine. The indictment alleges that Yancey distributed methamphetamine on five occasions in June and July 2022, and that one of the distributions involved 50 grams or more of methamphetamine.
If convicted, Yancey faces a mandatory minimum penalty of 5 years and a maximum of 40 years in federal prison on the count alleging the distribution of 50 grams or more of methamphetamine, and a maximum of 20 years on each of the other four distribution counts. The charges against him are the result of an investigation by the Madison Police Department. Assistant U.S. Attorney Kathryn Ginsberg is handling the prosecution.
California Woman Charged with Attempting to Possess Methamphetamine for Distribution
Heather Carter, 49, Santa Monica, California, is charged with attempting to possess 50 grams or more of methamphetamine with intent to distribute. The indictment alleges that she attempted to possess the methamphetamine on September 23, 2022.
If convicted, Carter faces a mandatory minimum penalty of 5 years and a maximum of 40 years in federal prison. The charge against her is the result of an investigation by the Crawford and Vernon County Sheriffs’ Offices, West Central Metropolitan Enforcement Group, Wisconsin Department of Justice Division of Criminal Investigation, U.S. Postal Inspection Service, and Drug Enforcement Administration. Assistant US. Attorney Chadwick Elgersma is handling the prosecution.
Mexican Citizen Charged with Illegally Reentering U.S.
Obed Sargento-Cruz, 30, a citizen of Mexico found in Portage County, Wisconsin, is charged with reentering the United States after previously being deported and removed. The indictment alleges that he was found in the United States on November 4, 2022.
If convicted, Sargento-Cruz faces a maximum penalty of 20 years in federal prison. The charge against him is the result of an investigation by U.S. Immigration and Customs Enforcement. Assistant U.S. Attorney Aaron Wegner is handling the prosecution.
Georgia Man Pleads Guilty to Conspiring to Steal USDA-Mortgaged HousesRead the Press Release
Jackson, Miss. – A Georgia man was convicted today before Senior U.S. District Judge David C. Bramlette for conspiring to steal houses from the United States Department of Agriculture, announced U.S. Attorney Darren J. LaMarca and New Orleans Special Agent in Charge Dax Roberson of United States Department of Agriculture, Office of the Inspector General.
According to court documents, Barry Martin, 47, originally from Tylertown, conspired with others to identify and steal USDA-mortgaged properties. The targeted properties were mortgaged through the Brookhaven office of USDA Rural Development, an agency which helps rural residents buy or rent safe, affordable housing, especially low and very-low income individuals. Co-conspirators had access to a list of abandoned, foreclosed, nearly-foreclosed, or similarly distressed USDA-mortgaged properties and would create fraudulent warranty deeds designed to convey ownership of those properties to co-conspirators and others. The fraudulent deeds included forged signatures from former homeowners, including at least one deceased individual. The fraudulent deeds were then filed in Chancery Courts around Mississippi with the intent to deprive the actual owners of the use and benefit of the properties and to deprive the United States Government of the actual value of the properties.
Martin pleaded guilty to a violation of Title 18, United States Code, Section 371, which criminalizes conspiracies against the laws of the United States. He is scheduled to be sentenced on March 9, 2023 and faces a maximum penalty of five years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The USDA OIG and the Federal Bureau of Investigation investigated the case.
Assistant U.S. Attorney Andrew W. Eichner is prosecuting the case.
Gary Man Sentenced to 46 Months in PrisonRead the Press Release
HAMMOND- Marlon Phillips, 29 years old, of Gary, Indiana, was sentenced by United States District Court Senior Judge James T. Moody after pleading guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Phillips was sentenced to 46 months in prison followed by 2 years of supervised release.
According to documents in the case, on July 1, 2021, while at a gas station in Gary, Indiana, Phillips possessed a loaded AK pistol style firearm. Phillips’ criminal history revealed he has prior Indiana felony convictions for robbery and resisting law enforcement, and as such is prohibited from possessing any firearm or ammunition.
This case was investigated by the Federal Bureau of Investigation’s Gang Response Investigative Team and the Gary Police Department. This case was prosecuted by Assistant United States Attorney Kevin F. Wolff.
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.
Ft. Bragg Vendor Pleads Guilty to Embezzlement ConspiracyRead the Press Release
WILMINGTON, N.C. – Darryl Sealey, A/K/A, “Tim”, of Fayetteville, pleaded guilty today for his role in a multi-year conspiracy which embezzled government funds. When sentenced next year, Sealey faces up to 60 months in prison, $6,300,000 in restitution, and a $3,500,000 forfeiture judgment.
“This investigation is putting a stop to the culture of fraud that was prevalent on Ft. Bragg,” said U.S. Attorney Michael Easley. “We will continue to investigate and prosecute those that steal from our government and line their pockets with money meant to support our troops.”
“Today's plea is a fitting end for those who conspire to defraud the United States Army,” said Special Agent in Charge L. Scott Moreland of the Department of the Army Criminal Investigation Division’s Major Procurement Fraud Field Office. “The men and women of CID are proud to work with our federal law enforcement partners to protect the financial resources of the U.S. Government from those who commit criminal acts associated with government contracting and purchasing.”
"Collusion between trusted Government employees and contractors tears at the fabric of public trust and will simply not be tolerated,” said Special Agent in Charge Christopher Dillard, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office. “We remain committed, along with our law enforcement partners, to rooting out fraud and corruption and safeguarding the valuable resources entrusted to the Department of Defense by the American Taxpayer.”
According to court records, Sealey operated Aaron’s Supply, Inc., a company selling various supplies for maintenance of equipment and facilities to the Operations and Maintenance Division, Directorate of Public Works (DPW), at Fort Bragg, NC. Sealey conspired with Morris Cooper, a purchasing agent at DPW to steer contracts for supplies to specific vendors in return for cash payments and gifts, and by inflating prices on supplies, increasing both the profits to the vendor and the cash payment made to Cooper and/or his wife, Beverley Cooper.
Morris and Beverley Cooper were earlier convicted for their roles in the conspiracy, Morris Cooper receiving a sentence of 17 months’ imprisonment, and Beverley Cooper a sentence of probation. Both agreed to pay $6,300,000 joint and severally in restitution and an order of forfeiture was entered for more than $1.2 million, the amount they agree they personally profited from the conspiracy.
In addition to the Coopers, three former employees of DPW at Ft. Bragg were recently convicted and sentenced for the receipt of bribes from other vendors. On May 18, 2022, Calvin Jordan was sentenced to 42 months’ imprisonment; on October 28, 2022, Stephen Paul Sabato was sentenced to 33 months’ imprisonment; and on November 3, 2022, Edward Crisco was sentenced to a term of imprisonment of 12 months and one day, all having received bribes while employed by the federal government. Sealey’s sentencing is anticipated in March 2023.
Sealey’s plea was entered today before United States Magistrate Judge Robert B. Jones, Jr. Defense Criminal Investigative Service and the U.S. Army Criminal Investigative Division, with assistance from the Federal Bureau of Investigation, are investigating the case.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-CR-328-FL, 5:21-CR-313-M, and 5:22-CR-200-FL.
Franklin Man with Lengthy Criminal History Sentenced to over Nine Years for Drug and Firearms ChargesRead the Press Release
LAFAYETTE, La. – Ezekiel Anderson, IV, 30, of Franklin, Louisiana, has been sentenced on firearms and drug charges, announced United States Attorney Brandon B. Brown. Anderson was sentenced by Chief United States District Judge S. Maurice Hicks, Jr. to 112 months (9 years, 4 months) in prison, followed by 3 years of supervised release.
Anderson pleaded guilty on April 27, 2022 to possession of a firearm by a convicted felon and possession with intent to distribute methamphetamine. According to evidence presented to the court, investigators with the Chitimacha Tribal Police Department encountered Anderson in the parking lot of the Cypress Bayou Casino on April 30, 2021. During their interaction with Anderson, investigators smelled the odor of marijuana coming from his vehicle and on his breath and person. A search warrant was obtained by law enforcement officers and a search of Anderson’s vehicle resulted in the discovery of a black bag on the front passenger seat containing a loaded Taurus 9mm semi-automatic pistol and a baggie containing suspected methamphetamine, along with other suspected narcotics and items used in the distribution of narcotics. The Acadiana Criminalistics Laboratory analyzed the seized narcotics and determined that Anderson possessed approximately 8.4 grams of methamphetamine, 105 grams of marijuana, 47 Alprazolam tablets and 2 tablets containing methamphetamine.
The firearm and ammunition recovered were analyzed by agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). In addition, a review of Anderson’s criminal history revealed that he has numerous felony convictions, including possession of cocaine with intent to distribute (2012); possession of cocaine (2015); attempted possession of firearm by a convicted felon (2017); simple escape (2017); simple kidnapping, simple burglary, and possession of methamphetamine (2018).
The case was investigated by the ATF, Chitimacha Tribal Police Department, and St. Mary Parish Sheriff’s Office, and prosecuted by Assistant U.S. Attorney Danny Siefker.
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Fort Pierre Woman Sentenced for Bank EmbezzlementRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that a Fort Pierre, South Dakota, woman convicted of Bank Embezzlement was sentenced on November 7, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Bailey Ricketts, age 27, was sentenced to one month in federal prison, followed by three months of home confinement, two years of supervised release, restitution in the amount of $38,135.43, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Ricketts was indicted for Bank Embezzlement by a federal grand jury in November of 2021. She pleaded guilty on August 11, 2022.
From August 2019 to November 2020, while employed at a bank in Fort Pierre, Ricketts knowingly embezzled money from the bank by transferring money into her own account and accounts belonging to her family members.
This case was investigated by the FBI and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Ricketts was ordered to report to the custody of the U.S. Marshals Service by the end of the week.
Former owner of Savannah restaurant charged with tax crime involving failure to pay more than $400,000 in payroll taxesRead the Press Release
SAVANNAH, GA: The former owner of a Savannah pizza franchise faces a federal charge for withholding more than $400,000 in payroll taxes.
Melissa Metts Johnson, 48, of Statesboro, Ga., is charged via an Information with Failure to Account for and Pay Over Employment Taxes, said David H. Estes, U.S. Attorney for the Southern District of Georgia. The felony charge carries a statutory penalty of up to five years in prison and substantial financial penalties, followed by up to three years of supervised release after completion of any prison term.
There is no parole in the federal system.
“Employers who willfully fail to collect, account for, and deposit with the IRS employment tax due are stealing from the U.S. Treasury and gaining an unfair advantage over their honest competitors,” said U.S. Attorney Estes. “Our office is committed to investigating and prosecuting those who willfully fail to comply with their employment tax responsibilities.”
As described in the Information, Johnson was the owner of LHMS Inc., which operated a franchise of Mellow Mushroom in Savannah. The Information alleges that from 2015 through 2019, the company spent thousands of dollars for Johnson’s benefit, even as the company failed to turn over to the Internal Revenue Service the payroll taxes withheld from the company’s employees.
The Information alleges that while the company withheld tax payments from employees’ paychecks during the period, the company failed to pay all of those taxes to the IRS. “Altogether,” the Information says, the “Defendant causes LHMS, Inc. to fail to account for and pay over $428,203.48 in payroll taxes.” As recently as April 2020, the company failed to turn over $35,882.29 in payroll taxes due to the United States.
An Information contains only charges; a defendant is presumed innocent unless and until proven guilty.
The case is being investigated by IRS-Criminal Investigation, and prosecuted for the United States by the U.S. Attorney’s Office for the Southern District of Georgia.
Former high school teacher charged federally with exploiting minors by taking up-skirt videos at school & in other public placesRead the Press Release
COLUMBUS, Ohio – A former high school chemistry teacher was taken into federal custody today on charges related to using hidden cameras to take tens of thousands of explicit videos of students at school and filming females in dressing rooms and other public places.
Justin Foley, 47, of Delaware, Ohio, appeared in federal court at 1:30pm in Columbus today after a federal criminal complaint and warrant were issued for his arrest.
Foley was employed as a chemistry teacher at Columbus Alternative High School at the time of his alleged offenses. He is charged with sexually exploiting minors and distributing, receiving and possessing child pornography. It is alleged Foley used his cell phone and other digital media devices in a hidden manner to capture female genitalia under skirts and shorts.
According to court documents, in August 2022, the Delaware Police Department received CyberTip reports from the National Center for Missing and Exploited Children (NCMEC) regarding numerous images of apparent child pornography that were uploaded via Google email accounts. Investigators tracked the IP addresses for the reported email accounts to Foley.
It is alleged that Foley’s email accounts contained numerous videos that were voyeuristic in nature and appear to have been self-produced. The videos appear to have been recorded at the school in which Foley worked as a chemistry teacher, at local department stores in central Ohio, in public areas of downtown Delaware, Ohio, and in dressing rooms. It is apparent that the victims in the videos do not know they are being recorded.
Delaware County law enforcement officials executed a search warrant at Foley’s residence on Sept. 20, 2022. Court documents detail that Foley admitted to creating videos in the classroom and hallways of the school at which he taught and that he had created some of these videos as recently as the previous week.
Foley was arrested and charged locally in Delaware County in September 2022. His federal charges will supersede his previous local charges.
Sexually exploiting a minor is a crime punishable by 15 to 30 years in prison. Distribution and receipt of child pornography is a crime punishable by 5 to 20 years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Westerville Police Chief Charles Chandler; Delaware Police Chief Adam Moore; Delaware County Prosecutor Melissa A. Schiffel; and other members of the FBI’s Child Exploitation and Human Trafficking Task Force announced the charges. Assistant United States Attorneys Jennifer M. Rausch and Emily Czerniejewski are representing the United States in this case.
A criminal complaint merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
If you believe you may be a victim of or the parent of a potential victim of Foley’s alleged conduct, please call 614-901-6883.
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Former Firefighter Sentenced for Two Bank RobberiesRead the Press Release
A Bixby man was sentenced Wednesday in federal court for robbing two Oklahoma banks of nearly $320,000, announced U.S. Attorney Clint Johnson.
“Jerry Brown’s string of criminal acts included two bank robberies and attempting to escape prosecution by staging his own disappearance to look like a kidnapping,” said U.S. Attorney Clint Johnson. “This bank robber has been held accountable and will spend 51 months in federal prison.”
"The FBI would like to thank the Skiatook Police Department, Owasso Police Department, and the United States Attorney’s Office for their hard work in this investigation,” said FBI Oklahoma City Special Agent in Charge Edward J. Gray. “We are gratified Brown is being brought to justice for his crimes, and can no longer target Oklahoma’s financial institutions or intimidate innocent citizens.”
U.S. District Judge Gregory K. Frizzell sentenced Jerry Ray Brown, 44, to 51 months in prison followed by three years of supervised release. The sentence was within the federal guideline range for the crimes. Judge Frizzell also ordered Brown to pay just over $260,000 in restitution, representing the stolen bank funds that had not yet been recovered.
During the hearing, Assistant U.S. Attorney Ryan Roberts argued for a sentence within the guideline range while the defense argued for a sentence below the guideline range, requesting Brown serve just over 12 months in federal prison. The defense pointed to Brown’s life of service prior to the bank robberies and the extreme financial and personal struggles he had been dealing with at the time of the crimes. Brown then apologized to the victims. He stated that as a former firefighter, he had been a life saver but ultimately became a life destroyer when he committed the robberies.
In a statement to the Court, one victim said that the anxiety she experienced had been crippling and had taken her mentally away from her children. She agreed with Brown and said that he had been a life destroyer—that his actions not only affected the victim but also her family. She said that she had suffered hardships following the robberies, but unlike Brown, she had not committed any criminal acts.
Brown previously entered guilty pleas to all of the original bank robbery counts in the charged indictment, and he did so without a plea agreement from the United States. Brown lived in Skiatook at the time of the robberies and later in Bixby while criminal proceedings were pending.
Brown executed bank robberies at Oklahoma Capital Bank in Skiatook on March 12, 2020, and Exchange Bank in Sperry on May 7, 2020. In both robberies, Brown demanded bank employees take him to their vaults and open their ATMs.
Bank tellers and surveillance video at both locations described or showed the suspect as being around 6 feet tall and weighing between 200 and 250 pounds. The suspect wore a black mask, distinctive black and gray gloves with a yellow logo; carried a black backpack; and drove a silver SUV. One of the tellers at the Skiatook bank suggested the robber’s mannerisms and build reminded her of Jerry Brown, who banked there.
Through their investigation, law enforcement was able to link Brown to the robberies and arrested him. They believed Brown’s likely motive for the robberies was to alleviate the numerous professional and personal financial problems he had been experiencing.
He was charged in federal court on Oct. 27, 2020, and later released while awaiting further criminal proceedings in the case.
On Oct. 25, 2021, authorities initially received a report that Brown was potentially kidnapped from his residence in Bixby in the early morning hours. Later that morning, Nowata police officers initiated a traffic stop on a vehicle registered to Brown. Instead of stopping, Brown eluded officers and disappeared. Just after 8 am, Brown was arrested by the Lyon County Sheriff’s Office in Kansas for the alleged theft of gasoline, evading authorities, and other charges. Brown was later returned to federal custody.
The FBI, Skiatook Police Department, and Owasso Police Department conducted the investigation. Assistant U.S. Attorney Ryan M. Roberts prosecuted the case.
Former Embassy Employee Pleads Guilty to Domestic ViolenceRead the Press Release
A former employee of the U.S. Embassy in the Republic of Moldova pleaded guilty yesterday in a domestic violence case involving his wife, a U.S. diplomat working at the Embassy.
According to court documents, Ilirjan Shema, 46, accompanied his family to Chisinau, Moldova, where his spouse, an employee of the U.S. Department of State, was assigned to work as a Foreign Service Officer at the U.S. Embassy. While in Moldova, Shema obtained a family member position to work at the Embassy. On April 10, 2021, while inside their official residence provided by the embassy, Shema attacked his wife, striking her, throwing her to the ground, and strangling her. The attack resulted in physical injuries. Shema was subsequently arrested on Aug. 5, 2021, when he traveled from Albania to Atlanta, Georgia.
Shema pleaded guilty to a charge of interstate domestic violence. He is scheduled to be sentenced on Feb. 23, 2023 and faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia, and Principal Deputy Assistant Secretary and Director Carlos Matus of the U.S. Department of State’s Diplomatic Security Service (DSS) made the announcement.
The DSS Office of Special Investigations is investigating the case with the assistance of the Regional Security Office, U.S. Embassy in Chisinau, Republic of Moldova.
Trial Attorney Brian Morgan of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Stephanie Gabay-Smith for the Northern District of Georgia are prosecuting the case.
Former BOP Correctional Officer Pleads Guilty to Committing COVID-Relief FraudRead the Press Release
Jackson, Miss. – A Flora woman pleaded guilty today to carrying out a scheme to defraud the COVID-19 Paycheck Protection Program (PPP), announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge James F. Boyersmith with the Department of Justice Office of the Inspector General (DOJ OIG) Miami Field Office.
According to court documents, Tarshuana Thomas, 34, of Flora, fraudulently applied for two PPP loans. Thomas claimed to be the sole proprietor of a dog breeding and sitting service. From those fraudulently obtained funds, Thomas received $12,586, which she spent on personal, non-business related expenses. Thomas was employed as a Correctional Officer with the Federal Bureau of Prisons, Federal Correctional Complex (FCC) Yazoo City when she applied for the loans.
Thomas is scheduled to be sentenced on February 16, 2023, and faces a maximum penalty of 20 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Department of Justice Office of the Inspector General investigated the case.
Assistant U.S. Attorney Kimberly Purdie is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866‑720‑5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Former Air Force Contracting Specialist Sentenced to 30 Months for Bribery Scheme Involving Millions in DOD Contracts in AlaskaRead the Press Release
FAIRBANKS – A former U.S. Air Force Contract Specialist assigned to Joint Base Elmendorf-Richardson (JBER), was sentenced to 30 months in prison followed by three years of supervised release and forfeiture of $47,000 in unlawful gains by Senior U.S. District Court Judge Ralph R. Beistline for conspiracy and agreeing to accept nearly half a million in bribes from a private contractor.
According to court documents, Brian Lowell Nash II, 33, of Washington, agreed to accept more than $460,000 in bribe payments in 2019 from a government contractor, Ryan Dalbec, who, along with his wife, Riahnna Nadem, owned a construction company called Best Choice Construction LLC. In exchange, Nash provided Dalbec and Nadem with confidential bidding information on over $8,250,000 in U.S. Department of Defense contracts at Eielson AFB and JBER, which helped Best Choice win some of the contracts, including a construction contract related to the F-35 aircraft program at Eielson Air Force Base and contracts to perform construction and related services at JBER. At the time Nash was caught he had received approximately $47,000 of the agreed upon bribe payments, much of which he laundered through family members to conceal the nature and source of the funds. The defendants committed multiple overt acts in furtherance of the bribery conspiracy, and between March and October 2019 Dalbec, Nadem and Nash laundered payments and proceeds from the bribery scheme to conceal their unlawful activities. Nash previously pleaded guilty to conspiracy and acceptance of bribes by a public official.
“My office is committed to protecting the integrity of the Department of Defense (DoD) procurement system in Alaska,” said U.S Attorney S. Lane Tucker for the District of Alaska. “This case demonstrates our resolve, along with our law enforcement partners, to bring to justice those who subvert the DoD contracting process for their own gain. This sentence sends a strong message that bribery and fraud will be met with serious consequences.”
“In a severe violation of the public’s trust, the defendant chose to line his own pockets at the expense of taxpayers, and undermined the government’s competitive contracting practices,” said Special Agent in Charge Antony Jung of the FBI Anchorage Field Office. “The FBI will continue to investigate and disrupt such schemes and hold accountable those who seek to use taxpayer dollars for private gain.”
Dalbec and Nadem previously pleaded guilty to felonies related to this conduct and are scheduled for sentencing at the end of 2022.
The Federal Bureau of Investigation (FBI) and the Air Force Office of Special Investigations (AFOSI) conducted the investigation leading to the indictment in this case. This case is being prosecuted by Assistant U.S. Attorney Ryan D. Tansey.
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Florida Man Is Convicted of Drug Trafficking and Firearms OffensesRead the Press Release
ASHEVILLE, N.C. – A federal jury in Asheville has convicted Jorge Luis Perez, 36, of Wimauma, Florida, of drug trafficking and firearms offenses, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Martin Reidinger presided over the three-day trial which ended today.
According to court documents, witness testimony and evidence presented at trial, in May 2020, law enforcement conducted a traffic stop of a vehicle Perez was driving in Jackson County, North Carolina. Over the course of the traffic stop, law enforcement located a trafficking quantity of methamphetamine and a loaded firearm in the vehicle. Law enforcement also found more than $10,000 in cash on Perez’s person. Trial evidence further established that, in July 2020, law enforcement conducted another traffic stop of a vehicle Perez was driving in Swain County, North Carolina. Over the course of that traffic stop, law enforcement located an even larger trafficking quantity of methamphetamine and set of digital scales in the vehicle. A search of Perez’s trailer later that day led to the seizure of additional evidence to include methamphetamine, multiple firearms, and a money counter.
A federal jury convicted Perez of two counts of possession with intent to distribute methamphetamine – one carrying a statutory maximum penalty of 20 years in prison and one carrying a mandatory minimum penalty of 10 years in prison and a maximum penalty of life in prison; and possession of a firearm in furtherance of a drug trafficking crime, which carries a mandatory minimum penalty of five years in prison. Perez remains in custody. A sentencing date has not been set.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
In making today’s announcement, U.S. Attorney King commended the Drug Enforcement Administration, the Jackson County Sheriff’s Office, the Swain County Sheriff’s Office, and the Hillsborough County Sheriff’s Office in Florida for their coordination and investigation of the case.
Assistant United States Attorney Thomas Kent and Special Assistant U.S. Attorney (SAUSA) Annabelle Chambers, of the U.S. Attorney’s Office are prosecuting the case. Ms. Chambers is a state prosecutor with the office of the 43rd Prosecutorial District and was assigned by District Attorney Ashley Welch to serve as SAUSA with the U.S. Attorney’s Office in Asheville. Ms. Chambers is sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the office of the 43rd Prosecutorial District and the United States Attorney’s Office. The SAUSA position helps ensure the effective and vigorous prosecution of federal court cases that impact the counties within the 43rd Prosecutorial District.
Firearms Trafficker Sentenced to More Than Seven Years in Federal PrisonRead the Press Release
CHICAGO — A man who illegally trafficked at least ten firearms from Georgia to Chicago has been sentenced to seven and a half years in federal prison.
Between approximately September 2020 and January 2021, defendant SCOTT TREECE, 35, of Rockford, Illinois transported at least ten firearms from Georgia to Illinois to sell to others. Because Treece was a felon during this time, he used straw purchasers to purchase these firearms, including his co-defendant Kyle Hall, 23, of Algonquin, Illinois and two other individuals living in Georgia. After Treece was arrested in this case, he threatened Hall and instructed the other straw purchasers to refrain from talking with law enforcement. Treece was arrested after selling a firearm to a confidential informant. During Treece’s arrest, law enforcement recovered an additional firearm and several extended magazines.
Treece pleaded guilty earlier this year to unlawfully dealing in firearms and possession of a firearm and ammunition by a convicted felon. On November 7, 2022, U.S. District Judge Edmund E. Chang imposed a 90-month prison sentence.
Assistant U.S. Attorney Jasmina Vajzovic argued in the government’s sentencing memorandum that although Treece had not obtained any additional convictions since his last in 2009, “the instant offense indicates he has been engaged in violent conduct and unlawful conduct related to firearms.”
Co-defendant Hall pleaded guilty earlier this year to one count of knowingly transferring a firearm to a felon and is awaiting sentencing by U.S. District Judge Edmond. E. Chang.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, and Jeffrey L. Matthews, Acting Special Agent-in-Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives.
Disrupting illegal firearms trafficking is the focus of the Department of Justice’s Chicago Firearms Trafficking Strike Force. As part of the strike force, the U.S. Attorney’s Office collaborates with ATF and other federal, state, and local law enforcement partners in the Northern District of Illinois and across the country to help stem the supply of illegally trafficked firearms and identify patterns, leads, and potential suspects in violent gun crimes.
Holding firearm offenders accountable through federal prosecution is also a centerpiece of Project Safe Neighborhoods. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Fayetteville Man Sentenced to 10 Years in Federal Prison for the Online Enticement of a MinorRead the Press Release
FAYETTEVILLE – A Fayetteville man was sentenced yesterday to 10 years in prison without the possibility of parole on one count of Online Enticement of a Minor. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the U.S. District Court in Fayetteville.
According to court documents, in July 2020, law enforcement in Texas were notified of a subject, later identified as Bart Thomas Stockland, age 33, who had been in contact with a minor via Snapchat and had been requesting nude images from the minor in exchange for money. Ultimately the case was referred to the Department of Homeland Security Internet Crimes Against Children Taskforce in Fayetteville, Arkansas. Further investigation revealed Stockland had obtained nude images constituting child pornography from the minor.
Stockland pled guilty to an information in June of 2022.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Abilene, Texas Police Department, Fayetteville, Arkansas Police Department and Department of Homeland Security Internet Crimes Against Children Task Force investigated the case.
Assistant U.S. Attorney Carly Marshall prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Fairfax Man Sentenced for Attempted Production and Possession of Child PornographyRead the Press Release
ALEXANDRIA, Va. – A Fairfax man was sentenced today to 16 years in prison for attempted production of and possession of child sexual abuse material (CSAM).
According to court documents, Brian Scott McGalem, 24, repeatedly engaged in sexually explicit discussions with at least six minors where he attempted to persuade several of the victims to produce sexually explicit pictures of themselves and send them to him. At least three of the minor victims were under the age of 12 at the time of the offense. During these discussions, which took place on several social media platforms under the monikers “Random Hipster#2429” and “Sircoolbeans,” McGalem attempted to groom and entice the minors to record themselves engaging in sexually explicit activity and he sent some of the minors sexually explicit images of himself. Moreover, McGalem’s electronic devices contained several images and videos of child sexual abuse material.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Derek W. Gordon, Acting Special Agent in Charge of U.S. Homeland Security Investigations (HSI) Washington, D.C., made the announcement after sentencing by U.S. District Judge Anthony J. Trenga.
Assistant U.S. Attorney Jonathan S. Keim and Special Assistant U.S. Attorney Whitney Kramer prosecuted the case.
The Department of Homeland Security, Homeland Security Investigations, continues to attempt to identify additional victims. Anyone with information regarding these crimes is encouraged to e-mail the HSI Tip Line: www.ice.gov/tips or by calling: 1-866-DHS-2-ICE.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
In 2021, EDVA launched “UnMasked,” a community-based educational outreach and prevention program in Virginia dedicated to raising awareness and educating the community about the prevalence of online sexual exploitation involving children and young adults. UnMasked is a multi-disciplinary partnership of local, state, federal, and non-profit stakeholders. The core curriculum is provided by the National Center for Missing and Exploited Children’s (NCMEC) NetSmartz program. To report an incident involving online sexual exploitation, call 1-800-843-5678 or submit a report at report.cybertip.org. To request an UnMasked event at your school or organization, please contact EDVA’s Community Outreach Coordinator at [email protected].
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:22-cr-48.
Freeburg Woman Pleads Guilty to Committing Bank Fraud While Employed by Area SchoolsRead the Press Release
BENTON, IL – A resident of Freeburg, Illinois, pled guilty today to committing bank fraud in connection with her former employer.
According to court documents, Michelle Miller, 45, worked as a business manager for two Belleville area schools, St. Teresa’s and St. Luke’s. When she pled guilty, Miller admitted using her position to commit fraud: she wrote checks from the schools’ accounts to herself, she made excess salary payments to herself, and she wrote checks to petty cash and pocketed the money. To conceal this fraud, Miller at times forged the signature of the priest of St. Teresa’s and St. Luke’s. She also manipulated the parish’s QuickBook accounts to make it look like St. Luke’s was paying money to St. Teresa’s when the money was actually going to her. And she made false and misleading adjustments to her own compensation in the payroll system. In all, Miller took a total of
$153,940.38 from St. Teresa’s and St. Luke’s that she was not entitled to receive.“Nonprofit organizations like St. Teresa’s and St. Luke’s provide vital services to our communities’ children and families,” said U.S. Attorney Rachelle Aud Crowe. “Criminal behavior targeting such organizations is unconscionable and even more so when it comes from within. Those who perpetrate it will be held to account.”
Miller’s offense carries a maximum sentence of thirty years’ imprisonment and a fine of up to
$250,000. Miller’s sentencing is set for February 16, 2023, at 10:00am at the federal courthouse in
Benton, Illinois.The investigation was conducted by the U.S. Secret Service and the Belleville Police Department.
The case is being prosecuted by Assistant United States Attorney Peter T. Reed.District of Columbia Man Sentenced to 10 Years in Prison for Distribution of Child PornographyRead the Press Release
WASHINGTON – A District of Columbia man was sentenced today to 10 years in prison on a federal charge of distribution of child pornography.
Akiva Bernstein, 22, pleaded guilty in March 2022, in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Christopher R. Cooper. Upon completion of his prison term, Bernstein will be placed on eight years of supervised release. He was ordered to pay $3,000 in restitution to a victim depicted in the images that he distributed. Bernstein also must register as a sex offender following his release from prison.
The announcement was made by U.S. Attorney Matthew M. Graves and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division.
According to the government’s evidence, in November of 2020, Bernstein used a mobile messaging application to communicate with an individual who he believed was a father with access to a young child. Bernstein attempted to set up a meeting with the individual and child. In the process, he forwarded the agent 12 videos, at least nine of which depicted the sexual abuse of prepubescent children. On Dec. 2, 2020, Bernstein agreed to meet the individual and child for the purpose of engaging in sexual acts and contacts. He was arrested.
Following his arrest, Bernstein provided consent for law enforcement to search his cellphone, which had approximately 40 videos depicting sex acts with minor children.
This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, U.S. Attorney Graves and Special Agent in Charge Jacobs commended the work of those who investigated the case from the FBI's Child Exploitation and Human Trafficking Task Force. They also commended the work of Assistant U.S. Attorney Janani Iyengar, who prosecuted the case, and Special Assistant U.S. Attorney Karen Stauss, who provided valuable assistance.
Detroit Man Sentenced to 16 Years for Sex Trafficking Two Minor Victims, He Committed the Crime While on Bond for Other Sex Trafficking ChargesRead the Press Release
DETROIT – A Detroit man who sex trafficked two minor girls while he was on bond and an electronic tether for state sex trafficking charges was sentenced to 16 years in prison, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
Kollier Radney, 30, was sentenced by Chief United States District Judge Sean F. Cox after having pleaded guilty in March to two counts of sex trafficking of children and one count of transporting a minor with the intent to engage in sexual activity.
According to court records, in October 2020, Radney met a 15-year-old girl on Snapchat and convinced to her to travel from Minnesota to Detroit with the promise of a lavish lifestyle. He purchased her plane ticket and arranged for her transportation to and from the airport. In reality, Radney flew the victim to Detroit with the intent that she engage in prostitution. When the victim arrived, Radney created and posted online commercial sex advertisements for her. Shortly thereafter, Radney met his second victim, a 16-year-old girl in Detroit. Radney took both victims to a hotel in Romulus, Michigan, where he rented a room for the three of them. While there, both victims engaged in commercial sex. Radney arranged the meetings between the 16-year-old victim and the sex buyers and took all of the proceeds. He also required the 15-year-old victim to give him a portion of her proceeds to help pay for the hotel room. Radney did all of this knowing that both victims were under 18 years old.
In October 2022, Radney was sentenced in state court to 24 to 240 months in prison for sex trafficking of a minor. This was the case for which he was on bond when he committed his federal sex trafficking crimes charged in this case.
“Radney took advantage of two vulnerable children, in one of the most terrible ways, for his own financial gain. Our office will work tirelessly to protect our most vulnerable and rid our communities of sexual predators who prey on our children,” U.S. Attorney Ison said.
“This defendant preyed upon very vulnerable teenagers by promising them shelter, money, and affection. Instead of providing those things, he callously sold them to other men for his own financial benefit,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “The FBI remains committed to working on behalf of victims across the State to hold traffickers responsible for their crimes.”
This case was investigated by the Southeast Michigan Trafficking and Exploitation Crimes Task Force (“SEMTEC”) of the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorneys Ranya Elzein and Sara Woodward.
Dane County Man Charged with Making ThreatsRead the Press Release
MADISON, WIS. – An indictment has been returned today by a federal grand jury sitting in Madison, Wisconsin, charging a Windsor, Wisconsin man with two counts of making threats to injure an individual. The indictment is announced by Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin.
The indictment charges Michael A. Yaker, 52, with sending electronic communications threatening to injure a Wisconsin citizen and with posting messages on Facebook threatening to injure a Wisconsin citizen. The indictment alleges that Yaker sent the electronic communications and posted the messages on Facebook on October 27, 2022.
Yaker was charged with these offenses in a complaint filed in U.S. District Court in Madison on Friday, November 4. Yaker was arrested in Syracuse, Kansas on November 4 and he made an initial appearance in U.S. District Court in Wichita, Kansas on Monday, November 7. He was ordered held in custody. His initial court appearance in Wisconsin has not been scheduled.
If convicted, Yaker faces a maximum penalty of 5 years in federal prison on each count. The charges against Yaker are the result of an investigation by the Dane County Sheriff’s Office, Wisconsin State Capitol Police, Hamilton County (Kansas) Sheriff’s Department, and the Federal Bureau of Investigation. U.S. Attorney O’Shea is handling the prosecution. Assistant U.S. Attorney Molly Gordon handled Yaker’s appearance in Kansas.
You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Cooper County Sex Offender Indicted for Child PornographyRead the Press Release
JEFFERSON CITY, Mo. – A Prairie Home, Mo., sex offender has been indicted by a federal grand jury on multiple charges related to producing child pornography.
Bradley Leigh Knecht, 28, was charged in a four-indictment returned by a federal grand jury in Jefferson City on Tuesday, Nov. 8.
Knecht, who was arrested today, has a prior Arkansas conviction for possessing or viewing child pornography.
The federal indictment alleges that Knecht used a child victim to produce child pornography from Feb. 1 to Oct. 20, 2022. Knecht is also charged with one count of advertising child pornography, one count of distributing child pornography, and one count of possessing child pornography.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the Boone County Cyber Crimes Task Force and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Convicted Sex Offender Indicted for Murder and for Shooting a Child on the Isabella ReservationRead the Press Release
Bay City, MI – A convicted sex offender was indicted today by the grand jury for murdering a woman and shooting her child on the Isabella Reservation in Mt. Pleasant, Michigan, United States Attorney Dawn N. Ison announced today.
The indictment charges Johnathan Ashford, age 37, of Mt. Pleasant, with murder for shooting and killing an Indian victim on the Isabella Reservation. Ashford is not a Native American. The indictment also charges Ashford with assault with the intent to commit murder for shooting the victim’s child. In addition, Ashford is charged with failing to register as a sex offender, possessing a firearm in furtherance of a crime of violence and after being convicted of a felony, first degree child abuse, and two counts of domestic assault by a habitual offender. If convicted, Ashford faces up to life in prison.
“Our office stands ready to fully investigate and prosecute domestic violence,” said U.S. Attorney Ison. “Victims of domestic and gender-based violence deserve justice and our protection.”
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
The case was investigated by the Saginaw Chippewa Tribal Police, the Mount Pleasant Police Department, Isabella County Sheriff’s Department, Michigan State Police, Saginaw City Police, Buena Vista Police Department, the Federal Bureau of Investigation, the Bureau of Indian Affairs, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant United States Attorney Roy Kranz.
Convicted Murderer Sentenced to Federal Prison for Possessing Improvised Explosive DeviceRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced William Earl Siebert (47, Cape Coral) to 5 years and 10 months in federal prison for unlawfully possessing an unregistered destructive device. Siebert had pleaded guilty on June 16, 2022.
According to court documents, on August 27, 2019, Siebert was arrested for driving under the influence following a single-vehicle traffic accident on Del Prado Boulevard in Cape Coral. Later, when his vehicle was searched, officers found a pipe bomb attached to a yard-stake timer, which contained a quantity of explosive powder and an assortment of shrapnel. Court records showed that Siebert had previously been convicted of second-degree murder and served a 25-year state prison sentence in connection with that case.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lee County Sheriff’s Office, and the Cape Coral Police Department. It was prosecuted by Assistant United States Attorney Simon R. Eth.
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.
Convicted Felon Sentenced to Seven Years for Possession of FirearmsRead the Press Release
TUCSON, Ariz. – Luis Salvador Flores, 50, of Glendale, Arizona was sentenced on October 31, 2022, by United States District Judge John C. Hinderaker to 84 months in prison, followed by 36 months of supervised release. Flores previously pleaded guilty to Possession of Firearms by a Convicted Felon.
On November 17, 2020, law enforcement officers from the Pima County Sheriff’s Department stopped Flores for a suspected traffic code infraction as he was driving to oversee a methamphetamine sale in Tucson, Arizona. Inside of Flores’s vehicle, officers found two semi-automatic firearms, a loaded Glock 9mm pistol, and an ATI Omni Hybrid 5.56/.223 caliber rifle, as well as magazines and ammunition. Flores admitted that he had intended to provide “security” for the drug deal, which was anticipated to involve approximately 200 pounds of methamphetamine. The intended transaction never occurred because Flores was intercepted by the law enforcement officers as he was enroute to the drug deal location.
Flores had over 20 prior felony counts of conviction on his record at the time of his arrest, arising out of multiple prior criminal state court cases. Consequently, he was and is prohibited from possessing firearms and ammunition.
The U.S. Drug Enforcement Administration in Tucson, Arizona conducted the investigation, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Pima County Sheriff’s Department. Assistant U.S. Attorney Michael R. Lizano, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-22-00896-JCH-DTF
RELEASE NUMBER: 2022-205_Flores# # #
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.
Co-Owners of Arm Rippin Toys Plead Guilty to Clean Air Act ViolationRead the Press Release
ANCHORAGE – The three co-owners of Arm Rippin Toys, Inc., an Anchorage vehicle repair shop specializing in modifying, repairing and maintaining diesel vehicles, each pleaded guilty to one count of violating the Clean Air Act.
According to court documents, Zachary Czubak, Patrick Fleming and Michael Hanzuk, II, tampered with federally mandated monitoring devices on private and commercial diesel vehicles and removed required air pollution control equipment on at least 37 vehicles between July 2019 and September 2020.
In July 2019 the co-owners of Arm Rippin Toys, entered into an agreement to engage in “tuning and deleting” customers’ diesel vehicles. This process involves the removal of emissions control systems which are designed to reduce pollutants being emitted from the vehicles. Under normal operating conditions, an on-board diagnostic (OBD) system will detect any removal and/or malfunction of a vehicle’s emissions control equipment. By modifying OBDs on vehicles, Arm Rippin Toy’s co-owners and employees falsified, tampered with and rendered inaccurate the vehicles’ monitoring devices so that the modified vehicle could continue to function despite the removal or deletion of emissions control equipment. In total Arm Rippin Toys collected approximately $100,000 for performing unlawful deletes and tunes on diesel vehicles.
“We take protecting the environment seriously in Alaska and we won’t hesitate to prosecute individuals committing environmental crimes,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “The defendants in this case knowingly and repeatedly installed ‘defeat devices’ to remove emissions controls in dozens of vehicles violating the Clean Air Act which protects the nation’s air quality by, among other things, reducing vehicle emissions that pollute the air.”
“Installing emissions defeat equipment in passenger vehicles results in a massive increase in air pollution from even a single vehicle,” said Special Agent in Charge Scot Adair of EPA’s Criminal Investigation Division in Alaska. “EPA and its law enforcement partners will continue to hold accountable those who jeopardize human health and the environment for the sake of profit.”
Defendants in this case are:
- Zachary John Czubak, 25, pleaded guilty to Conspiracy to Violate the Clean Air Act and was sentenced to five years’ probation, a $66,000 fine and 180 hours of community service as a condition of probation.
- Patrick Fleming Thomas Fleming, 29, pleaded guilty to Conspiracy to Violate the Clean Air Act and is awaiting sentencing.
- Michael Wayne Hanzuk, II, 30, pleaded guilty to Conspiracy to Violate the Clean Air Act and was sentenced to five years’ probation, a $66,000 fine, 180 hours of community service as a condition of probation and a public statement acknowledging wrongdoing.
The removal or disabling of a vehicle’s emissions control system can increase particulate matter (PM) by a factor of about 40 times; nitrogen oxides (NOx) by a factor of about 310 times; carbon monoxide (CO) by a factor of about 120 times; and non-methane hydrocarbons (NMHC) by a factor of about 1,100 times.
The U.S. Environmental Protection Agency (EPA) Criminal Investigations Division investigated the case.
Assistant U.S. Attorney Charisse Arce and Special Assistant U.S. Attorney, Regional Criminal Enforcement Counsel Karla Perrin prosecuted the case.
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City of Elyria, Ohio, Agrees to Federal Plan to Eliminate Sewage Discharges into the Black RiverRead the Press Release
The city of Elyria, Ohio, has entered into a consent decree with the United States and the State of Ohio to complete a series of capital projects designed to eliminate discharges of untreated sewage from its sewer system into the Black River, 10 miles upstream from Lake Erie.
The projects that Elyria has agreed to implement will significantly increase the amount of wastewater that receives treatment and prevent overflows from sanitary and combined sewer outfalls when the system becomes overloaded. When completed, the water quality of the Black River, around which the City of Elyria is situated, will be greatly improved. Elyria is expected to spend nearly $250 million to improve its sewer system. It will also pay a civil penalty of $100,000 to the United States and pay $100,000 to Ohio’s Surface Water Improvement Fund.
The consent decree would resolve the violations alleged in the underlying complaint filed by the United States and the state of Ohio. The complaint alleges that Elyria’s sanitary sewers overflowed on more than 1,100 occasions since 2011, resulting in discharges of untreated sewage into the Black River or a tributary to the river. The complaint also alleges that Elyria failed to comply with a previous court order to stop these illegal discharges.
“The Clean Water Act requires adequate infrastructure to limit discharges of untreated sewage,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “These settlements require meaningful investments that will improve the health of the Black River and Lake Erie.”
“The City of Elyria’s infrastructure investment will not only reduce untreated sewage from entering the Black River, but also improve water quality for residents,” said Acting Assistant Administrator Larry Starfield of the EPA’s Office of Enforcement and Compliance Assurance. “EPA and the State of Ohio worked with the City of Elyria to develop a comprehensive solution to protect water quality.”
Under the proposed consent decree, Elyria will construct various projects within its sewer system to be completed by Dec. 31, 2044. The most environmentally-significant of these projects will be completed within the first 15 years. This includes completion of the city’s East Side Relief Sewer, increasing capacity at Elyria’s wastewater treatment plant, adding processes to mitigate the harm from any bypasses around the wastewater treatment plant, and 12 other projects that will control waste overflows or the flow of non-wastewater into the sewer system. Elyria will submit semi-annual progress reports to the United States and the state of Ohio until all work has been completed.
The proposed agreements are subject to a 30-day public comment period and final court approval after publication in the Federal Register.
More information about this settlement can be found here.
The consent decree, lodged in the U.S. District Court for the Northern District of Ohio, is subject to a 30-day public comment period and final court approval. The consent decree will be available for viewing at https://www.justice.gov/enrd/consent-decrees.
Cincinnati Man Sentenced to 7 Years and 2 Months in Federal Prison for Assaulting and Brandishing a Firearm at Federal Task Force OfficersRead the Press Release
Louisville, KY – John F. Johnson, also known as Grand Master Jay, was sentenced to 7 years and 2 months in prison for assaulting and brandishing a firearm at federal task force officers.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office, and Chief Erika Shields of the Louisville Metro Police Department made the announcement.
After a week-long trial in May of this year, a federal jury sitting in Louisville, Kentucky, convicted Johnson, 59, of Cincinnati, OH, of two counts of assaulting a federal task force officer and brandishing a firearm in relation to a crime of violence.
According to court documents and evidence presented at trial, Johnson, on the evening of September 4, 2020, forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with a federally deputized task force officer who was performing official duties, when Johnson aimed a rifle at him. Johnson brandished an AR-15 platform rifle and tactical flashlight at two federally deputized Task Force Officers. Both are detectives with the Louisville Metro Police Department.
Johnson was also sentenced to 3 years of supervised release upon completion of his term of imprisonment. There is no parole in the federal system.
Assistant U.S. Attorneys Joshua Judd and Joe Ansari prosecuted the case with the assistance of paralegal Adela Alic.
The FBI and the Louisville Metro Police Department investigated the case.
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Chilton County Man Sentenced to 50 Months in Prison for Being a Felon in Possession of a Firearm Following a ShootoutRead the Press Release
Montgomery, Alabama – On Tuesday, November 8, 2022, Paul David Chapman, 50, from Verbena, Alabama, was sentenced to 50 months in prison for being a felon in possession of a firearm, announced United States Attorney Sandra J. Stewart. Following his prison sentence, Chapman will be on supervised release for three years. There is no parole in the federal system.
According to court records, around 10:44 p.m. on October 9, 2019, the Chilton County Sheriff’s Office went to a residence in Verbena after receiving multiple 911 calls, including one from Chapman, that shots had been fired. When deputies arrived, they found Chapman sitting on a couch inside the house with a gunshot wound. A handgun was next to Chapman on the couch. Chapman stated that he had exchanged gunfire with another individual after the two argued over Chapman’s dog being struck and killed by a car. Chapman was taken from the residence for medical treatment. After searching the area, investigators discovered Chapman’s wife deceased in the front yard. She had been hit by a stray round during the exchange of gunfire. Investigators also found an additional firearm in the residence. Chapman has previous felony convictions and is prohibited from possessing firearms.
This case was investigated by the Chilton County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Alabama Department of Forensic Sciences. Assistant United States Attorney Brandon W. Bates prosecuted the case.
Chicago, Illinois Man Sentenced to 97 Months in PrisonRead the Press Release
HAMMOND- Rashawn Curtis, 23 years old, of Chicago, Illinois, was sentenced by United States District Court Senior Judge James T. Moody after pleading guilty to selling a firearm to a felon, announced United States Attorney Clifford D. Johnson.
Curtis was sentenced to 97 months in prison followed by 2 years of supervised release.
According to documents in the case, on March 23, 2020, Curtis sold to a convicted felon, a semi-automatic pistol with an “auto sear” conversion switch attached that converted the pistol into a fully automatic weapon. The firearm also contained an extended magazine which held thirty-two rounds of ammunition.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives along with the Indiana High Intensity Drug Trafficking Task Force. This case was prosecuted by Assistant United States Attorney Michael J. Toth.
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.
Chicago Resident Charged with $2.7 Million COVID-Relief FraudRead the Press Release
CHICAGO — A federal grand jury in Chicago, Illinois, returned an indictment in October, which was unsealed today, charging a Chicago resident with 12 counts of wire fraud for allegedly fraudulently obtaining at least $2.7 million in small business loans and grants under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to the indictment, beginning around April 2020, and continuing until around November 2020, QUAMDEEN AMUWO, 40, of Chicago, participated in a scheme to defraud the Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program. The EIDL program provided loan assistance and grants to cover working capital and other operating expenses for businesses suffering economic effects caused by the COVID-19 pandemic.
As part of the scheme, the indictment alleges Amuwo submitted to the SBA numerous applications for loans on behalf of businesses and entities purportedly owned by Amuwo and others. The applications allegedly contained materially false statements and misrepresentations concerning the purported entities’ owners, employees, revenues, costs, and date of establishment. Further, as part of the scheme, Amuwo is alleged to have made false statements regarding the applying entities’ gross revenues, cost of goods sold, and number of employees for the 12 months prior to the onset of the pandemic, and provided false state registration and tax documents. Amuwo is also alleged to have submitted personal identifying information for purported business owners, including names, social security numbers, and fake state identification cards that he knew did not belong to a real person.
The indictment alleges that Amuwo caused the SBA to disburse at least $2.7 million in EIDL loans and grants into bank accounts controlled by him and others. Amuwo allegedly used the money to make cash withdrawals, transfers, and purchases for his personal benefit.
Amuwo is set for arraignment in federal court in Chicago on November 28, 2022, before Magistrate Judge Beth W. Jantz.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, and John S. Morales, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI. Substantial assistance was provided by the SBA-Office of Inspector General. The government is represented by Assistant U.S. Attorney Heidi Manschreck.
The public is reminded that an indictment contains only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of wire fraud is punishable by up to 20 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Anyone with information about attempted fraud involving COVID-19 is encouraged to report it to the Department of Justice by calling the National Center for Disaster Fraud Hotline at 866-720-5721 or filing an online complaint at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Chesterfield Man Sentenced to 15 Years in Prison for Sex with Kansas TeenRead the Press Release
ST. LOUIS – U.S. District Judge Audrey G. Fleissig on Wednesday sentenced a man from Chesterfield, Missouri to 15 years in prison for taking a 15-year-old from Kansas to Missouri for sex.
John Kenneth Low, 39, will be on supervised release for life after his release from prison.
Low pleaded guilty at the start of the hearing Wednesday to coercion and enticement of a minor, transportation of a minor across state lines with the intent of committing an illegal sex act and travel with the intent to engage in illicit sexual conduct. Low admitted meeting a 15-year-old Kansas girl on the Omegle app and using the Discord app to communicate with her and successfully encourage her to run away and live with him.
On Jan. 23, 2022, after quizzing the victim about how she would get out of the house without being caught and telling her to erase her phone before she left it behind, Low picked up the victim from a location near her home and took her to his home in Chesterfield.
The girl’s mother contacted local police, who along with the FBI connected her to Low. FBI agents and Chesterfield police found the girl at Low’s apartment. Low had illegal sexual contact with her while she was at the apartment, Low admitted in his plea.
The teen’s mother spoke during the sentencing portion of Wednesday's hearing, saying, “John Low has ruined our lives.”
The mother said her daughter was “was special, sweet, quiet and depressed, which allowed her to be coerced,” adding, “She cannot be a normal teen due to the trauma he caused to this child.”
Low also agreed as part of his plea to forfeit four cell phones, three tablet computers, a laptop, nine hard drives and storage devices that were seized during the investigation.
The case was investigated by the FBI and the Chesterfield Police Department. Assistant U.S. Attorney Jillian Anderson prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Cary Man Pleads Guilty in Multi-Million COVID-19 Fraud SchemeRead the Press Release
GREENVILLE, N.C. – Quentin Allen Jackson, 56, pleaded guilty today to conspiracy to commit money laundering with respect to the fraudulent proceeds of Paycheck Protection Act (“PPP”) COVID-19 loans guaranteed by the Small Business Administration. Jackson faces up to twenty years in prison and a potential fine.
“The defendant took money meant to help small businesses struggling during the pandemic,” said U.S. Attorney Michael Easley. “We will vigorously pursue criminals who lined their pockets with taxpayer money while the pandemic crippled local businesses.”
“The Paycheck Protection Program (PPP) was the key to survival for many small businesses during the COVID-19 pandemic,” said Special Agent in Charge Donald “Trey” Eakins of IRS Criminal Investigation, Charlotte Field Office. “PPP funds should be reserved for legitimate businesses and their hard-working employees who suffered as a result of the pandemic. IRS Criminal Investigation along with our law enforcement partners are committed to pursue those who commit such fraud.”
In March 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was designed to provide emergency financial assistance to millions of Americans who were suffering the economic effects caused by the COVID-19 pandemic. The CARES Act and additional appropriations authorized up to $649 billion in forgivable loans to small businesses through the Paycheck Protection Program (PPP). Financial institutions issued the PPP loans, which were guaranteed by the Small Business Administration (SBA).
Jackson conspired with others to obtain fraudulent PPP loans in the names of several companies under Jackson’s control. After receiving the proceeds of the fraudulent PPP loans, Jackson carried out a series of steps detailed by his co-conspirators to make it appear as though the borrower’s company was paying bi-weekly payroll to its employees. Over a series of six to eight weeks, Jackson wrote checks payable to each of the individuals previously named as employees in the PPP loan applications. These actions made it appear as though Jackson’s companies were paying regular wages as intended by the CARES Act. In most instances, the recipients of the checks were either not employees of the borrower company at all, or they were not actually earning wages comparable to what was represented in the loan applications. Jackson instructed his purported employees to cash the checks, and then return the illicit cash to him.
In addition to directly engaging in the PPP fraud described above, Jackson also served as a middleman, earning a fee from his co-conspirators for each additional fraudulent borrower he recruited. He ultimately recruited over a dozen individuals who obtained fraudulent PPP loans. Those Jackson recruited engaged in the same scheme described above to launder the proceeds of the fraudulent loans. Nearly $4 million of fraudulent PPP disbursements are attributable to Jackson or to individuals he recruited to the scheme.
Jackson pleaded guilty to Conspiracy to Commit Money Laundering in violation of 18 U.S.C. § 1956(h). Sentencing before United States District Judge James C. Dever III is scheduled to occur next year.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after United States Magistrate Judge Robert T. Numbers II accepted the plea. Internal Revenue Service (IRS) Criminal Investigation is leading the investigation, and Assistant U.S. Attorneys David G. Beraka and Karen K. Haughton are prosecuting the case.
The Eastern District of North Carolina’s COVID Task Force is a part of an effort to coordinate COVID-related fraud investigations and prosecutions in Eastern North Carolina. On May 17, 2021, the United States Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:22-cr-00180-D.
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Butler Woman Sentenced on Charges of Theft of Government FundsRead the Press Release
PITTSBURGH, PA – A resident of Butler, Pennsylvania, has been sentenced in federal court in Pittsburgh to 30 months’ probation, 150 hours of community service, and a $1,000 fine on her conviction of theft of government funds, United States Attorney Cindy K. Chung announced today.
Chief United States District Judge Mark R. Hornak imposed the sentence on Amy Lynn Snow, age 54.
According to information presented to the court at the time of the guilty plea, Snow, from August 2013 through September 2017, falsely reported to the Social Security Administration that her spouse was not a member of her household knowing that his status as a member of the household and his income would affect her entitlement to Social Security Income benefits. The amount of loss suffered by the Social Security Administration by reason of Snow’s theft was $45,422.61.
As part of the sentence imposed, Chief Judge Hornak ordered the defendant to pay full restitution in the amount of $45,422.61 to the Social Security Administration.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
United States Attorney Chung commended the Social Security Administration, Office of Inspector General for the investigation leading to the successful prosecution of Snow.
Butler Man Pleads Guilty to Possessing Multiple Bricks of FentanylRead the Press Release
PITTSBURGH, PA - A resident of Butler, Pennsylvania, has pled guilty on a charge of possessing 10 grams or more of a mixture containing fluorofentanyl and fentanyl, United States Attorney Cindy K. Chung announced today.
Gerry Lee Kendall, age 41, pleaded guilty before Senior District Court Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that on June 6, 2021, an officer with the Duquesne Police Department observed Gerry Lee Kendall exit Truman Towers, a known high-drug trafficking area. The officer observed Kendall enter the front passenger seat of a parked vehicle, which then committed several traffic violations. Subsequently, the officer conducted a traffic stop. While speaking with the driver, Kendall repeatedly asked why they were stopped and appeared to be shaking. When asked about where they were coming from, Kendall was unable to provide the last name of the person he met at Truman Towers or the apartment number. Subsequently, the officer asked the driver and Kendall to step out of the vehicle. When the officer asked Kendall whether he had any weapons on him, Kendall tried reaching for his pocket. When the officer instructed Kendall not to reach for his pocket, Kendall placed his hand into his pocket. For officer safety, the officer pulled Kendall’s hand from his pocket, and 4 “bricks” fell out of the pocket with Kendall’s hand. A “brick” is typically comprised of 50 glassine bags containing heroin and/or fentanyl. The officer arrested Kendall and searched him incident to arrest, which resulted in the seizure of an additional 16 bricks, $1,773.00, and a cellular phone. A search warrant executed upon the phone revealed texts that showed Kendall’s prior distributions of controlled substances.
Judge Schwab scheduled sentencing for 9:30 am on March 1, 2023. The law provides for a term of imprisonment of not less than five years and a maximum of 40 years, a $5,000,000 fine, a term of supervised release of at least four years and/or a special assessment of $100. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Kendall on bond.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The Duquesne Police Department conducted the investigation that led to the prosecution of Gerry Lee Kendall.
Brooklyn Park Felon Pleads Guilty to Illegal Possession of a FirearmRead the Press Release
ST. PAUL, Minn. – A Brooklyn Park man has pleaded guilty to possessing a firearm as a felon, announced U.S. Attorney Andrew M. Luger.
According to court documents, on July 27, 2022, Tyrone Mashaun White, 34, was in possession of a Springfield Hellcat 9mm semi-automatic pistol while driving in Brooklyn Center. Officers of the Minneapolis Police Department found the firearm when they searched White’s vehicle pursuant to a search warrant. Officers also recovered from the vehicle a black bag containing a pill bottle with eight methamphetamine pills, and baggies of fentanyl with a total weight of approximately 2.5 grams. Because White has multiple prior felony convictions in Hennepin and Goodhue Counties, he is prohibited under federal law from possessing firearms or ammunition at any time.
White pleaded guilty today before U.S. District Judge Wilhelmina M. Wright to one count of possession of a firearm as a felon. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the FBI and Minneapolis Police Department.
Assistant U.S. Attorney Thomas Calhoun-Lopez is prosecuting the case.