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Wednesday 28 September 2022
Arizona Man Sentenced to Five Years’ Imprisonment for Transporting over 5 Kilograms of Cocaine in IowaRead the Press Release
Scott Pride, 69, from Tucson, AZ, was sentenced on September 27, 2022, to 5 years’ imprisonment, in federal court in Sioux City.
On May 5, 2022, Pride pled guilty to possession with intent to distribute cocaine. Evidence at the plea and sentencing hearings showed that on January 16, 2022, law enforcement conducted a traffic stop of Pride for speeding in his 2011 Silver Lexus IS. After suspecting possible drug trafficking, a police K-9 was deployed and alerted to the odor of a controlled substance within the vehicle. Officers conducted a search of the vehicle and located five heat-sealed, brick-type packages containing over 5 kilograms of cocaine concealed within the rear seat of the vehicle.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Pride was sentenced to 5 years’ imprisonment and must serve a 4-year term of supervised release following imprisonment. There is no parole in the federal system. Pride remains in custody of the United States Marshal until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4006. Follow us on Twitter @USAO_NDIA.
Alabama Man Sentenced to a Year and a Day in Prison for Defrauding Jefferson County Retirement PlanRead the Press Release
BIRMINGHAM, Ala. – A federal judge on Monday sentenced an Alabama man for devising a scheme to defraud Jefferson County’s retirement plan, announced U.S. Attorney Prim F. Escalona and FBI Acting Special Agent in Charge Felix A. Rivera-Esparra.
U.S. District Court Judge Anna M. Manasco sentenced Gary Dean Gibbs, Jr., 52, to one year and one day for wire fraud. Gibbs was also ordered to pay $132,646.12 restitution to the General Retirement System for Employees of Jefferson County. Gibb’s pleaded guilty to the charges in May.
According to the plea agreement, Gibbs’ father was a former employee of Jefferson County, Alabama, who was receiving benefits from The General Retirement System for Employees of Jefferson County (“GRS”). GRS is a retirement plan that provides benefits to retired and disabled employees of Jefferson County, Alabama. Beginning in September 2017 and continuing until February 2022, Gibbs concealed his father’s death from GRS and collected money from GRS to which he was not entitled. Gibbs used his father’s personal identifiers and forged his father’s signature on documents submitted to GRS to further his scheme. Additionally, Gibbs assumed his father’s identity during telephone calls with GRS employees. Gibbs collected approximately $132,646.12 to which he was not entitled.
“The defendant’s theft of money from the GRS was detrimental to the hard-working employees and retirees of Jefferson County, who contributed for years to the retirement plan, and was appropriately punished by time in federal prison.” U.S. Attorney Escalona said. “The United States Attorney’s Office appreciates the work of the FBI and Jefferson County Sheriff’s Office, and the cooperation of the GRS during the investigation and prosecution of this matter.”
“Gibbs' fraudulent scheme took money away from the Jefferson County retirement system intended for those who have saved for their later years,”. Acting SAC Rivera said. The sentence handed down today holds him accountable for his actions and allows for restitution to the victims. I want to express my thanks to the Jefferson County Sheriff’s Office for their partnership and assistance in this investigation.”
The FBI investigated the case along with the Jefferson County Sheriff’s Office. Assistant United States Attorney George Martin prosecuted the case.
39 ‘Taste the Rainbow’ Defendants SentenceRead the Press Release
Thirty-nine defendants charged in Operation “Taste the Rainbow” have been sentenced to a combined 415 years in federal prison, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
The men and women, all allegedly tied to methamphetamine trafficking in and around Lubbock, were charged in a series of three indictments with an array of federal crimes, primarily distribution of methamphetamine, unlawful possession of firearms, and conspiracy, in September 2021. The final defendant, 39-year-old Jesse Martinez Jr., aka JJ, was sentenced on Wednesday to 262 months. In plea papers, Mr. Martinez admitted that he arranged for the sale of methamphetamine to a confidential informant and directed one of his associates to deliver it.
Over the course of the investigation – which involved more than 200 personnel from nine different law enforcement agencies – officers and agents seized more than two kilogram of methamphetamine and 25 guns. The organization was found to have distributed dozens of kilograms of methamphetamine in the Lubbock community.
“Thanks to the hard work of literally hundreds of officers and agents, along with a few dedicated prosecutors, we are keeping 39 of Lubbock’s most violent drug traffickers off the streets,” said U.S. Attorney Chad E. Meacham. “We know, based on their criminal histories, that these men and women were not only dealing large quantities of drugs, but sowing fear and agony in the community. We are proud to put them behind bars.”
“We heard the concerns of the residents of Lubbock and greater West Texas, and brought every possible resource to dismantle the criminal element in this investigation. Today’s final sentencing illustrates the commitment we have to ensure people and families can live in their neighborhoods without living in fear,” said Dallas FBI Special Agent in Charge Matthew J. DeSarno. “We will continue to work with our law enforcement partners every day to target the diverse and dangerous threats that drive violence in our communities.”
Additional defendants include:
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Oscar Alcala, Jr., 30, plead guilty to distribution of methamphetamine and was sentenced to 120 months in federal prison
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Teresa Delhierro, 38, plead guilty to possession with intent to distribute methamphetamine and was sentenced to 180 months in prison
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Stephanie Shea Ortiz, 38, plead guilty to possession with intent to distribute methamphetamine and was sentenced to 108 months in prison
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Isaac Levi Hernandez, aka “Pacman,” 37, plead guilty to possession with intent to distribute methamphetamine and was sentenced to 160 months in prison
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Robert Rangel, Jr., 47, plead guilty to distribution of methamphetamine and was sentenced to 188 months in prison
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Sergio Lopez, 41, plead guilty to distribution of methamphetamine and was sentenced to 175 months in prison
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Symon Anthony Maldonado, 26, plead guilty to possession with intent to distribute methamphetamine and was sentenced to 151 months in prison
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Samantha Denise Rodriguez, 38, plead guilty to distribution of methamphetamine and was sentenced to 214 months in prison
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Michael Joseph Ybarra, 37, plead guilty to distribution of methamphetamine and was sentenced to 121 months in prison
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Christopher Ray Lovington, 35, plead guilty to possession with intent to distribute methamphetamine and was sentenced to 324 months in prison
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Megan Francisca Gomez, 28, plead guilty to conspiracy to distribute methamphetamine and was sentenced to 84 months in prison
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Gabriel Lee Mendoza, 30, plead guilty to distribution of methamphetamine and was sentenced to 120 months in prison
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Jessie Luciano Salazar, aka “Lucky,” 45, plead guilty to possession with intent to distribute methamphetamine and was sentenced to 230 months in prison
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Ruby Alexis Banuelos, 23, plead guilty to felon in possession of a firearm and was sentenced to 46 months in prison
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Adriana Pena, 26, plead guilty to distribution of methamphetamine and was sentenced to 70 months in prison
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Alexandria Unique Conner, 24, plead guilty to possession of firearms in furtherance of a drug trafficking crime and was sentenced to 60 months in prison
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Bobby Joe Garcia, aka “Ace,” 28, plead guilty to possession with intent to distribute methamphetamine and was sentenced to 108 months in prison
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Christopher Eldon Limbaugh, aka “Skittles,” 38, plead guilty to distribution of methamphetamine and was sentenced to 120 months in prison
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Christopher Daniel Garcia, 39, plead guilty to possession with intent to distribute methamphetamine and was sentenced to 121 months in prison
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Bobbi Jean Hendrix, 33, plead guilty to possession with intent to distribute methamphetamine and was sentenced to 84 months in prison
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Alexandra Cruz, 25, plead guilty to distribution of methamphetamine and was sentenced to 120 months in prison
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James Raul Garza, 37, plead guilty to possession with intent to distribute methamphetamine and was sentenced to 230 months in prison
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David Bustos, Jr., 40, plead guilty to distribution of methamphetamine and was sentenced to 120 months in prison
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Gerald Felipe Vargas, aka “Gizmo,” 36, plead guilty to distribution of methamphetamine and was sentenced to 160 months in prison
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Julie Ann Sifuentes, aka “Juicy,” 36, plead guilty to distribution of methamphetamine and was sentenced to 66 months in prison
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Daniel Ramon, Jr., 41, plead guilty to possession of a firearm in furtherance of a drug trafficking crime and was sentenced to 60 months in prison
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Kelsey Marie Applegate, 28, plead guilty to distribution of methamphetamine and was sentenced to 60 months in prison
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Toby Mack Woods, 62, plead guilty to possession with intent to distribute methamphetamine and was sentenced to 24 months in prison
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Katie Dshawn Montez, 28, plead guilty to possession of a firearm in furtherance of a drug trafficking crime and was sentenced to 60 months in person
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Beatrice Delgado, 37, plead guilty to possession with intent to distribute methamphetamine and was sentenced to 121 months in prison
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Colten Shane White, 29, plead guilty to felon in possession of a firearm and was sentenced to 33 months in prison
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Madison Whitney Michaels, 23, plead guilty to misprision (concealment) of a felony and was sentenced to 15 months in prison
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Mark Adam Alonzo, aka “Cinco,” 31, plead guilty to possession with intent to distribute methamphetamine and was sentenced to 128 months in prison
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Alejandro Antonio Mendez, aka “Ace,” 27, plead guilty to possession with intent to distribute methamphetamine and was sentenced to 110 months in prison
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Edilberto Reyes, aka “Pajaro” (Bird), 35, plead guilty to possession with intent to distribute methamphetamine and was sentenced to 120 months in prison
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Reynaldo Cruz, Jr., 50, plead guilty to possession with intent to distribute methamphetamine and was sentenced to 240 months in prison
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Yesenia Flores, 40, plead guilty to possession with intent to distribute methamphetamine and was sentenced to 151 months in prison
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Christopher Joshua Ruiz, 39, plead guilty to possession with intent to distribute methamphetamine and was sentenced to 151 months in prison
Those put behind bars by this operation included many violent recidivists; between them, the convicted defendants have been previously charged with 31 assaults, nine burglaries, three robberies, a murder, 24 firearm crimes, 69 serious controlled substance violations, three terroristic threats, a forgery, 12 frauds, and a child sexual assault.
The Federal Bureau of Investigation’s Dallas Field Division – Lubbock Resident Agency and the Texas Department of Public Safety conducted the investigation with the help of six agency partners: the Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division, the Lubbock Police Department, the U.S. Marshals, the Lubbock County Sheriff’s Office, the Drug Enforcement Administration’s Dallas Field Division, and Homeland Security Investigations. Assistant U.S. Attorney Sean Long is prosecuting the case.
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Tuesday 27 September 2022
Woman from Taos arraigned for assault in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that Kylie Lujan was arraigned on an indictment charging her with assault resulting in serious bodily injury in Indian Country. Lujan, 25, of Taos Pueblo, New Mexico, and an enrolled member of the Taos Pueblo, will remain on conditions of release pending trial, which has not been scheduled.
A federal grand jury indicted Lujan on Sept. 13. According to the indictment, on March 25, Lujan assaulted the victim, identified as Jane Doe, in the victim’s home in Taos Pueblo. Jane Doe is an enrolled member of the Taos Pueblo, and the assault resulted in serious bodily injury.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Lujan faces up to 10 years in prison.
The Taos Pueblo Department of Public Safety investigated this case. Assistant United States Attorney Matthew McGinley is prosecuting the case.
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Washington, Iowa Man Sentenced to 15 Years in Federal Prison for Child Pornography ChargeRead the Press Release
DAVENPORT, IA – Kendal Duane Letcher, age 64 of Washington, Iowa, was sentenced on Monday, September 26, 2022, to 180 months in prison following his plea to a charge of Receipt and Distribution of Child Pornography. Letcher was ordered to pay $3,000 in restitution to each of his four victims, totaling $12,000.
According to court documents, an investigation into a peer-to-peer file sharing system identified that Letcher was allowing others to download child pornography that he made available. Letcher admitted to viewing child pornography for the past ten years, as well as utilizing the file sharing system since 2014. The investigation revealed that Letcher had amassed 3,785 images and 485 videos containing child sex abuse materials.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by Homeland Security Investigations.
This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nationwide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children. Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
U.S. Attorney, FBI bring murder charge in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced that Evan Haceesa was charged with murder in Indian Country. Haceesa, 30, of Nageezi, New Mexico, and an enrolled member of the Navajo Nation, appeared for a preliminary and detention hearing on Sept. 23 and will remain in custody pending trial, which has not been scheduled.
As alleged in a criminal complaint, on Aug. 28, Haceesa attacked his girlfriend, identified as Jane Doe, at his residence in Nageezi on the Navajo Nation. Haceesa allegedly punched Jane Doe in the face until she lost consciousness and kicked her several times. Upon arriving at the home, a Navajo Police Department officer responding to a report of domestic violence found the victim unclothed and unresponsive, lying in a wheelbarrow outside the house.
Jane Doe was transported to the San Juan Regional Medical Center for treatment. She initially was diagnosed with a fractured nose, bruising, scratches, bowel lacerations and bleeding in the bowels. Computed Tomography (CT) scans revealed blood and air in Jane Doe’s abdomen, a perforated intestine, bleeding around the intestines, a bilateral nose fracture and partially collapsed lungs.
On Sept. 8, Jane Doe died of her injuries.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Haceesa faces life in prison.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department. Assistant United States Attorney Matthew McGinley is prosecuting the case.
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Two Oklahoma Men Plead Guilty to Racially-Motivated Hate CrimeRead the Press Release
The Department of Justice announced today that two men, Devan Nathanial Johnson, 28, and Brandon Wayne Killian, 31, pleaded guilty to committing a hate crime in Shawnee, Oklahoma.
On Jan. 18, 2022, a federal grand jury in the Western District of Oklahoma returned a two-count Indictment charging both defendants, who are white, with physically assaulting a Black man — as well as the Black man’s white friend — in the parking lot of the Brickhouse Saloon in Shawnee, Oklahoma. The indictment alleges that the assault occurred because of the Black man’s race and color.
According to statements made before District Judge Bernard Jones at the plea hearings in the U.S. District Court for the Western District of Oklahoma this week, both defendants admitted to assaulting the Black man in the parking lot of the bar on June 22, 2019, because the man was Black. The assault resulted in bodily injury to the victim.
“These two defendants are being held accountable for subjecting a Black man to a brutal and racially motivated assault,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “Convictions like these make clear that the Department of Justice will continue to investigate and prosecute individuals who violently assault others because of their race or the color of their skin.”
“The defendants targeted a Black victim for a brutal attack simply because of the color of his skin,” said U.S. Attorney Robert J. Troester for the Western District of Oklahoma. “Hate-fueled criminal conduct is morally reprehensible and can never be acceptable in a civilized society. We will continue to use every tool at our disposal to combat all hate crimes.”
“Violent acts of hate and racism have no place in our community and will not be tolerated,” said Special Agent in Charge Edward J. Gray of the FBI Oklahoma City Field Division. “The FBI will continue to use all authority granted to us by federal law to investigate crimes motivated by bias, and ensure the perpetrators are brought to justice.”
At sentencing, each defendant faces a maximum penalty of 10 years in prison, three years of supervised release and a fine of up to $ 250,000 for the violation. Both defendants will also be ordered to pay restitution to the victim of their crime.
Assistant Attorney General Clarke, U.S. Attorney Troester and Special Agent in Charge Gray made the announcement.
The FBI Oklahoma City Field Office investigated the case. Assistant U.S. Attorney Julia Barry for the Western District Oklahoma and Trial Attorney Avner Shapiro of the Civil Rights Division’s Criminal Section are prosecuting the case.
Two Oklahoma Men Plead Guilty to Racially-Motivated Hate CrimeRead the Press Release
OKLAHOMA CITY – The Department of Justice announced today that two men, Devan Nathanial Johnson, 28, and Brandon Wayne Killian, 31, pleaded guilty to committing a hate crime in Shawnee, Oklahoma. Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division, United States Attorney Robert J. Troester for the Western District of Oklahoma, and Special Agent in Charge Edward J. Gray of the FBI Oklahoma City Field Office made the announcement.
On January 18, 2022, a federal grand in the Western District of Oklahoma returned a two-count Indictment charging both defendants, who are white, with physically assaulting a Black man—as well as the Black man’s white friend—in the parking lot of the Brickhouse Saloon in Shawnee, Oklahoma. The Indictment alleges that the assault occurred because of the Black man’s race and color.
According to statements made before District Judge Bernard Jones at the plea hearings in the U.S. District Court for the Western District of Oklahoma this week, both defendants admitted to assaulting the Black man in the parking lot of the bar on June 22, 2019, because the man was Black. The assault resulted in bodily injury to the victim.
"These two defendants are being held accountable for subjecting a Black man to a brutal and racially motivated assault," said Assistant Attorney General Clarke. "Convictions like these make clear that the Department of Justice will continue to investigate and prosecute individuals who violently assault others because of their race or the color of their skin."
"The defendants targeted a Black victim for a brutal attack simply because of the color of his skin," said United States Attorney Troester. "Hate-fueled criminal conduct is morally reprehensible and can never be acceptable in a civilized society. We will continue to use every tool at our disposal to combat all hate crimes."
"Violent acts of hate and racism have no place in our community and will not be tolerated," said Special Agent in Charge Gray. "The FBI will continue to use all authority granted to us by federal law to investigate crimes motivated by bias, and ensure the perpetrators are brought to justice."
At sentencing, each defendant faces a maximum penalty of ten years in prison, three years of supervised release, and a fine of up to $250,000 for the violation. Both defendants will also be ordered to pay restitution to the victim of their crime.
The FBI Oklahoma City Field Office investigated the case. Assistant U.S. Attorney Julia Barry for the Western District Oklahoma and Trial Attorney Avner Shapiro of the Justice Department’s Civil Rights Division are prosecuting the case.
Twice-Convicted Sex Offender Sentenced to 15 Years in Federal Prison for Distributing and Receiving Child Pornography Through His Google AccountRead the Press Release
INDIANAPOLIS – William Cass, 57, of Indianapolis, was sentenced to 15 years in federal prison after pleading guilty to distribution and receipt of child pornography.
According to court documents, law enforcement learned that between April 25, 2021, and April 27, 2021, Cass used his Google account to send images depicting children engaged in sexually explicit conduct to another Google user. Cass told the Google user that he was seeking other children to sexually abuse. Evidence from Cass’s Google account revealed that in addition to distributing child sexual abuse material, Cass maintained a photo folder containing additional child sexual abuse material.
Cass has two prior felony convictions in Hancock County Indiana, for sexual misconduct with a minor and child molesting. Cass has a third felony conviction in Marion County, Indiana, for vicarious sexual gratification.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Jeffrey Adams, Special Agent in Charge of the U.S. Secret Service, made the announcement.
The U.S. Secret Service investigated the case in conjunction with the Indianapolis Metropolitan Police Department. The sentence was imposed by U.S. District Judge James R. Sweeney II. As part of the sentence, Judge Sweeney ordered that Cass be supervised by the U.S. Probation Office for life following his release from federal prison and ordered Cass to pay $5000 in restitution to the child exploitation victim. Cass must also register as sex offender wherever he lives, works, or goes to school, as required by law.
U.S. Attorney Myers thanked Assistant U.S. Attorney Kristina M. Korobov who prosecuted this case.
This investigation was conducted by the Indiana Internet Crimes Against Children (ICAC) Task Force, a partnership of federal, state, and local law enforcement agencies led by the Indiana State Police. The Task Force is dedicated to investigating and prosecuting crimes involving the technology-facilitated sexual exploitation of children and the trafficking of child sexual abuse material. Each year, Indiana ICAC investigators evaluate thousands of tips, investigate hundreds of cases, and rescue dozens of children from ongoing sexual abuse. In fiscal year 2019, the most recent year for which data is available, the Southern District of Indiana was second out of the 94 federal districts in the country for the number of child sexual exploitation cases prosecuted.
Three Individuals Indicted for Distributing Controlled Substances Resulting in DeathRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Darryl Elliott, age 36, of Sunbury, Pennsylvania, Steven Pierro, age 34, of Plymouth Meeting, Pennsylvania, and Heather Carper, age 34, of Northumberland, Pennsylvania, were indicted on September 20, 2022, by a federal grand jury and charged with the distribution of controlled substances resulting in death.
According to United States Attorney Gerard M. Karam, the indictment charges Elliott, Pierro, and Carper of conspiring to distribute and possess with intent to distribute fentanyl and methamphetamine within the Middle District of Pennsylvania, resulting in an overdose death that occurred in Lewisburg, Union County.
The charges stem from a joint investigation involving the FBI in Williamsport, the Pennsylvania State Police, and the Sunbury Police Department. Assistant United States Attorney Michelle Olshefski is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin and fentanyl. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case was also 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.
The maximum penalty under federal law is life in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Texas Man and Woman Indicted for Money Laundering for Online Fraud SchemesRead the Press Release
BOSTON – A Texas man and woman were indicted today by a federal grand jury for allegedly operating an unlicensed money transmitting business to launder the proceeds of online investment fraud and romance fraud schemes.
Charles Ochi, 27, of Grand Prairie, Texas, and Vanessa Okocha, 24, of Houston, Texas were indicted on one count each of money laundering conspiracy, one count of conspiracy to conduct an unlicensed money transmitting business and one count of operating an unlicensed money transmitting business. Ochi will appear in federal court in Boston at a later date. Okocha remains at large.
According to the charging documents, beginning in or around 2016, Ochi and Okocha conspired with others to launder and transmit proceeds of Ponzi-style investment fraud schemes based in Nigeria and of romance scams. Specifically, the investment fraud schemes allegedly purported to offer trading and Bitcoin investing services when, in fact, investor funds were stolen and victims’ investments were later used to pay purported returns to earlier investors. The romance fraud schemes deceived online victims into sending money to persons with whom they believed they had a romantic relationship. It is alleged that Ochi and Okocha laundered the fraud proceeds as part of aa network of co-conspirators in the United States, including the owners of at least two used car exporting companies. Ochi and Okocha, along with their co-conspirators, did not hold money transmitting licenses in their respective states of residence, nor were they registered as money transmitters as required by federal law.
The charge of money laundering conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $500,000 or twice the value of the laundered funds, whichever is greater. The charge of conspiracy to conduct an unlicensed money transmitting business and the charge of operating an unlicensed money transmitting business each provide for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Jennifer De La O, Director of Field Operations of U.S. Customs and Border Protection, Boston Field Office made the announcement today. Valuable assistance was provided by the Division of Enforcement at the Commodity Futures Trading Commission. Assistant U.S. Attorney Kriss Basil of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Texas Man Admits Chartering Plan to Bring Cocaine from Houston to PittsburghRead the Press Release
PITTSBURGH, PA – A resident of Houston, Texas pleaded guilty in federal court to violation federal narcotics laws related to a nine-month Title III wiretap investigation into drug trafficking in and around the counties of Jefferson, Clearfield, and Allegheny, United States Attorney Cindy Chung announced today.
Jesus Gonzalez, age 36, pleaded guilty to one count of conspiracy and one count of possession with intent to distribute five kilograms or more of cocaine before United States District Judge Christy Criswell Wiegand. Gonzalez was one of 47 defendants charged in six related indictments as part of the Return to Sender investigation.
In connection with the guilty plea, the court was advised that on October 22, 2020, Gonzalez and three other individuals chartered a private plane and transported six kilograms of cocaine from Houston to Pittsburgh International Airport. Investigators obtained a search warrant for the plane and seized the cocaine from two pieces of luggage.
Judge Wiegand scheduled sentencing for Feb. 6, 2023, at 10:00 a.m. The law provides for a maximum total sentence of not less than 10 years to a maximum of life in prison, a fine not to exceed $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered the defendant remain out on bond.
Assistant United States Attorneys Jonathan D. Lusty and Michael R. Ball are prosecuting this case on behalf of the government.
The Drug Enforcement Administration led the multi-agency investigation of this case, which also included the Homeland Security Investigations, United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Internal Revenue Services, Pittsburgh Bureau of Police, Allegheny County Police, and Pennsylvania State Police. Also assisting were the Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and the Clarion Borough Police Department.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
TOMORROW: United States Attorney’s Office Co-Sponsoring West Virginia Civil and Human Rights SummitRead the Press Release
CHARLESTON, W.Va. – United States Attorney Will Thompson announced that the U.S. Attorney’s Office for the Southern District of West Virginia is co-sponsoring “Building Bridges: West Virginia Civil and Human Rights Summit” with the City of Charleston on Wednesday, September 28, 2022. West Virginia State University is hosting the event.
The summit begins at 9 a.m. with opening remarks from U.S. Attorney Thompson, Charleston Mayor Amy Goodwin and West Virginia State University President Dr. Ericke Cage. The morning will also feature recorded remarks by U.S. Department of Justice Assistant Attorney General (AAG) for Civil Rights Kristen Clarke and an overview of federal hate crime enforcement actions. Afternoon sessions will cover breaking down barriers created by racial bias, civil rights and people with disabilities, civil rights and domestic terrorism, human rights and fair housing, and deprivation of rights under color of law violations.
The summit is sponsored in partnership with: the Charleston Police Department; Disability Rights of West Virginia; Fairness West Virginia; the Federal Bureau of Investigation (FBI); the Islamic Association of West Virginia; Legal Aid of West Virginia; the West Virginia NAACP; Temple Israel WV; the U.S. Department of Housing & Urban Development; the West Virginia Coalition Against Domestic Violence; the West Virginia Council of Churches; the West Virginia Department of Education; the West Virginia Developmental Disabilities Council; the West Virginia Human Rights Commission; the West Virginia State Police; and YWCA Charleston.
WHAT: Building Bridges: West Virginia Civil and Human Rights Summit
WHEN: Wednesday, September 28, 2022, from 9 a.m. until 5 p.m.
WHERE: West Virginia State University, Institute; P. Ahmed Williams Auditorium, Ferrell Hall, and James C. Wilson University Union.
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.
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St. Louis County Man Who Stole Nearly $600,000 from the Home Depot Sentenced to 9 Years in PrisonRead the Press Release
ST. LOUIS – A man from Vinita Park, Missouri who stole nearly $600,000 in items from The Home Depot and then returned them for gift cards was sentenced Tuesday to nine years in prison.
U.S. District Judge Ronnie L. White also ordered Xavier Brown, 46, to repay the retailer $598,036.
Brown, who also goes by Xaiviar Brown, was convicted by a jury in May of four counts of wire fraud and one count of unauthorized use of an access device.
From 2017 to 2021, Brown stole from Home Depot stores and then made more than 1,900 returns of that merchandise across 20 states, using more than 1,700 different temporary drivers licenses to conceal his scheme. Brown, having no receipts, was given store credit or gift cards.
“There’s a reason that the saying ‘Crime doesn’t pay’ has stood the test of time. Xavier Brown hid his scheme by defrauding Home Depot in different states until it caught up to him,” said Acting Special Agent in Charge Mark Dargis of the FBI St. Louis Division. “As soon as Home Depot detected Brown’s suspicious activities, the business contacted the FBI which resulted in today’s nine-year sentence in federal prison.”
The FBI investigated this case. Assistant U.S. Attorney Linda Lane prosecuted the case.
St. Charles Woman Sentenced to Nearly 5 Years in Prison for $2.5 Million Missouri Medicaid FraudRead the Press Release
ST. LOUIS – U.S. District Judge Stephen R. Clark on Tuesday sentenced a woman from St. Charles to four years and nine months in prison for her role in a $2.5 million fraud involving Missouri’s Medicaid program and a nearly $60,000 fraudulent Paycheck Protection Program loan.
Judge Clark also ordered Barbara Martin, 63, to repay $2,566,989 to Missouri’s Medicaid program and $58,295 to the U.S. Small Business Administration.
Martin pleaded guilty on June 28 to conspiracy to commit health care fraud and bank fraud conspiracy. She admitted being the administrator for Legacy Consumer Directed Services, a business that fraudulently enrolled in 2013 in the Missouri Medicaid program to provide personal care services. Martin falsely listed the name of her daughter, Zamika Walls, on the application to conceal her own role and the role of her sister, Margo Taylor, as the people who ran the day-to-day operations of the company. Walls was listed as the director of the company but was not involved in its operation.
Had Martin listed her name or Taylor’s, the application would not have been approved as they did not meet the enrollment criteria. On the application, Martin falsely checked “no” in response to the question asking whether the applying provider had ever been convicted of a crime.
Legacy billed the Missouri Medicaid program a total of over $2.5 million between May 2014 and September 2020. Some of that money was for care that was never provided, as Martin, Walls and another child of Martin not named in court documents were out of town on trips to Miami, Las Vegas or Atlanta when Martin claimed they were providing personal care services for Medicaid clients and Walls lived in Atlanta.
Arvids Petersons, director of the Medicaid Fraud Control Unit of the Missouri Attorney General’s Office, told Judge Clark during the hearing that Martin actively subverted controls designed to prevent fraud. Peterson said $2.5 million would provide personal care services that could keep more than 200 people in their homes instead of skilled nursing facilities.
Martin and Walls also conspired to submit a fraudulent loan application to the Paycheck Protection Program, a COVID-19 pandemic-era program designed to help save small businesses and jobs, on behalf of Legacy. Martin lied when she claimed the loan would be used to pay salaries, mortgage or lease payments and utility bills. In support of the application, Martin submitted fake payroll data and eventually received a $58,295 loan. After Legacy ceased operations, Martin submitted a fraudulent application seeking forgiveness of the loan, falsely claiming the loan money had been used for authorized purposes.
Zamika Walls, 38, was sentenced September 21 to 15 months in prison and ordered to repay $127,491. She pleaded guilty June 16 to the same charges as her mother.
Taylor, 66, pleaded guilty July 11 to two counts of health care fraud and is scheduled to be sentenced October 19.
"Defrauding Medicaid diverts valuable resources from beneficiaries and undermines the integrity of federal health care programs," said Curt L. Muller, Special Agent in Charge with the U.S. Department of Health and Human Services Office of Inspector General. “We work tirelessly with our law enforcement partners to pursue fraudsters and ensure the appropriate use of U.S. taxpayer dollars."
The U.S. Health and Human Services Office of Inspector General and the Missouri Medicaid Fraud Control Unit investigated this case. Assistant U.S. Attorney Meredith Reiter is prosecuting the case.
South Carolina Man Sentenced to Almost Four Years in Prison for Consumer Electronics Theft SchemeRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Rusmaldy Jimenez-Hiciano, 38, of Goose Creek, SC, was sentenced to three years and 10 months in prison, three years of supervised release, and was ordered to pay full restitution of $536,000 and forfeiture of $461,000 by United States District Court Judge Jeffrey L. Schmehl for his role in perpetrating a mail fraud scheme to steal high-end electronics from his former employer, Walmart.
In June 2022, the defendant pleaded guilty to four counts of mail fraud and admitted in court that he masterminded a scheme to steal and re-sell expensive electronics. In late 2017, the defendant, a long-time employee at Walmart’s Bethlehem, PA, distribution center, devised a plan to defraud the company by hiding certain high-end electronic merchandise when it came into the warehouse on delivery trucks; mailing that merchandise via FedEx to addresses in Allentown controlled by the defendant; selling the stolen goods; and sharing the proceeds with others.
“Jimenez-Hiciano stole hundreds of thousands of dollars’ worth of goods from his former employer,” said U.S. Attorney Romero. “Instead of doing the right thing and performing his job honestly, he took advantage of his position and his employer. Our Office will continue to work with our law enforcement partners to protect innocent individuals and businesses from being victimized by financial fraud.”
“HSI and our partners in the Pennsylvania State Police and the U.S. Attorney’s office have struck another blow against criminals who use our commercial systems to commit crimes that damage our business infrastructure, slow our delivery systems, and ultimately harm consumers through higher prices,” said William S. Walker, Special Agent in Charge of the HSI Philadelphia office. “Crimes such as organized mail fraud schemes inflict severe and long-reaching damage to American consumers. Congratulations to the dedicated agents and prosecutors who worked on this investigation.”
The case was investigated by the U.S. Department of Homeland Security – Homeland Security Investigations and the Pennsylvania State Police, and is being prosecuted by Assistant United States Attorney Mary E. Crawley.
Sixteen Tribes Selected for Participation in Program Enhancing Tribal Access to National Crime Information DatabasesRead the Press Release
The Department of Justice has selected an additional 16 federally recognized Tribes to participate in the continued expansion of the Tribal Access Program for National Crime Information (TAP), a program that provides Tribal governments with means to access, enter and exchange data with national crime information systems, including those maintained by the FBI Criminal Justice Information Services (CJIS) Division.
“The Department is committed to strengthening our government-to-government partnership with Tribal nations, including providing critical access to criminal databases through the Tribal Access Program,” said Deputy Attorney General Lisa O. Monaco. “With today’s announcement, 16 additional participating Tribes will be able to register sex offenders, protect victims of domestic violence, prevent prohibited persons from obtaining firearms, and help locate missing people.”
The program provides training as well as software and biometric/biographic kiosk workstations to process fingerprints, take mugshots, and submit information to CJIS systems. With these additional Tribes, there are now 123 federally recognized Tribes participating in TAP.
The Department of Justice began TAP in 2015 in response to concerns raised by Tribal leaders about the need to have direct access to federal systems. Using TAP, Tribes have shared information about missing persons; registered convicted sex offenders; entered domestic violence orders of protection for nationwide enforcement; run criminal histories; identified and arrested fugitives; entered bookings and convictions; and completed fingerprint-based record checks for non-criminal justice purposes such as screening employees or volunteers who work with children.
The following Tribes have been newly selected for participation in TAP:
- Chickaloon Native Village
- Hoh Indian Tribe
- Kickapoo Traditional Tribe of Texas
- Lower Sioux Indian Community in the State of Minnesota
- Oglala Sioux Tribe
- Otoe-Missouria Tribe of Indians, Oklahoma
- Paiute-Shoshone Tribe of the Fallon Reservation and Colony, Nevada
- Poarch Band of Creek Indians
- Prairie Island Indian Community in the State of Minnesota
- Pueblo of Santa Clara, New Mexico
- Puyallup Tribe of the Puyallup Reservation
- Quapaw Nation
- Robinson Rancheria
- Santee Sioux Nation, Nebraska
- Skokomish Indian Tribe
- Three Affiliated Tribes of the Fort Berthold Reservation, North Dakota
TAP is managed by the Justice Department’s Office of the Chief Information Officer and the Office of Tribal Justice. It is funded by the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART), the Office of Community Oriented Policing Services (COPS), the Office for Victims of Crime (OVC), and the Office on Violence Against Women (OVW).
For more information on TAP, visit Tribal Access Program (TAP) | TRIBAL | Department of Justice.
Shelby County Man Sentenced for Child Pornography OffenseRead the Press Release
COUNCIL BLUFFS, IA – Kevin Charles Kersten, age 53 of Harlan, was sentenced on September 7, 2022, to seven years in prison following his plea to a charge of Receipt of Child Pornography. Kersten must also serve a 10-year term of supervised release after the prison term. There is no parole in the federal system.
In February 2021, the Internet Crimes Against Children (ICAC) Task Force received several cybertips that an IP address uploaded child pornography files. A search warrant was executed at Kersten’s residence, which was linked to the IP address. Electronic devices found at Kersten’s residence were seized and forensically analyzed. While conducting this investigation, officers obtained another cybertip that the IP address linked to Kersten had again uploaded child pornography. A second search warrant was executed at his residence and additional electronic evidence was seized. The forensic examination located images and videos of child pornography on Kersten’s electronic devices.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Iowa Division of Criminal Investigation, Internet Crimes Against Children Task Force, Harlan Police Department, and Federal Bureau of Investigation Child Exploitation Task Force investigated the case.
This case was prosecuted as part of the Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nationwide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children. For more information about Internet safety education, please visit https://www.justice.gov/psc and click on the resources tab.
Sanford Man Pleads Guilty to Arson at Multi-Unit Rental PropertyRead the Press Release
PORTLAND, Maine: A Sanford man pleaded guilty today in U.S. District Court in Portland to arson, U.S. Attorney Darcie N. McElwee announced.
According to court records, on May 5, 2021, the Sanford Fire Department responded to a fire at a multi-unit rental property located at 38 Spruce Street. Despite extensive damage, firefighters were successful in saving the structure from collapse, and the most significant damage occurred to an apartment occupied at that time by Thomas McGinn, 49. When interviewed by investigators, McGinn confessed to intentionally starting the fire using gasoline and lighter fluid as accelerants. He explained that it was his intention to “burn the building down.”
McGinn faces a period of imprisonment of not less than 5 years and not more than 20 years and a fine up to a $250,000. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, in conjunction with the Sanford Police Department and the Maine State Fire Marshal’s Office, investigated the case.
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Rosebud Woman Indicted for Second Degree MurderRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that a Rosebud, South Dakota, woman has been indicted by a federal grand jury for Second Degree Murder.
Lucy Medicine Eagle, age 31, was indicted in June of 2022. She appeared before U.S. Magistrate Judge Daneta Wollman on September 27, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on March 28, 2022, at Rosebud, in Todd County, South Dakota, Medicine Eagle killed a man by assaulting him and striking him in the head.
The charge is merely an accusation and Medicine Eagle is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services and the FBI. Assistant U.S. Attorney Abby Roesler is prosecuting the case.
Medicine Eagle was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Repeat sex offender sentenced to 10-year prison term for possessing images of child rape and abuseRead the Press Release
Seattle – A 58-year-old Seattle man was sentenced today in U.S. District Court in Seattle to ten years in prison for possessing images of child rape and abuse, announced U.S. Attorney Nick Brown. David C. Martin was on Washington State Department of Corrections supervision when he was arrested and charged federally in April of 2020. In sentencing Martin to lifetime supervised release following prison, U.S. District Judge James L. Robart said the sentence was due to “the need to protect society from Mr. Martin.”
“Mr. Martin has a shocking and extensive criminal history -- with 15 convictions for sex crimes, including 11 for indecent exposure,” said U.S. Attorney Nick Brown. “During this lengthy prison term, and the supervision that follows, I hope he gets the mental health treatment he needs to end the cycle of recidivism.”
According to records filed in the case, Google Inc. first alerted the National Center for Missing and Exploited Children (NCMEC) that a specific account was uploading images of child rape and abuse. The account was shut down and the matter was referred to the Seattle Police Internet Crimes Against Children Task Force. Seattle Police determined Martin owned the account and served a court authorized search warrant on Martin and seized his electronic devices. Forensic analysis revealed the devices contained hundreds of files depicting child rape and sexual abuse.
Martin has previously been convicted of Child Molestation 3rd Degree in Pierce County Superior Court (2001); Indecent Exposure in King County Superior Court (2009); Indecent Exposure in King County Superior Court (2015); and Voyeurism in Clark County Superior Court (2016). Due to those prior convictions Martin faced a mandatory minimum 10 years in prison.
Speaking to the court, Martin said he now understood how viewing child pornography revictimizes those who suffer child sexual abuse. Noting all the prison time he has served Martin said, “I’ve wasted my whole life.”
The case was investigated by Homeland Security Investigations in coordination with the Seattle Internet Crimes Against Children Task Force (ICAC) and the Washington State Department of Corrections.
The case was prosecuted by Assistant United States Attorneys Cecelia Gregson and Hillary Stuart.
Repeat Felon Sentenced to 12 Years in Federal Prison for Armed Fentanyl TraffickingRead the Press Release
INDIANAPOLIS – Nyron Harmon, 31, of Indianapolis, was sentenced to 12 years in federal prison after pleading guilty to possession with the intent to distribute fentanyl and carrying a firearm during and in relation to a drug trafficking crime.
According to court documents, on January 29, 2021, officers with the Indianapolis Metropolitan Police Department (IMPD) and the Indiana State Police (ISP) were investigating Harmon due to outstanding warrants. Officers found Harmon at his residence in Indianapolis. Harmon was seen carrying a box from his residence, entering the passenger seat of a vehicle, and driving away. Officers stopped the vehicle and Harmon was arrested for his outstanding warrants. A loaded .40 caliber handgun was found on the seat where Harmon was sitting. The handgun was previously reported stolen.
An ISP K9 alerted to narcotics near the front passenger door of the vehicle where Harmon was sitting. The vehicle was searched, and the box Harmon was seen carrying from his residence was found on the front passenger floorboard. The box contained 200 grams of fentanyl, approximately 27 grams of methamphetamine, scales, packing materials for drug distribution, and another stolen, loaded handgun. Harmon also had over $2,000 in U.S. currency on his person. According to the Drug Enforcement Administration, as little as 2 milligrams of fentanyl can be fatal, depending on a person’s body size, tolerance, and past usage. One kilogram of fentanyl has the potential to kill 500,000 people.
Following Harmon’s arrest, a search warrant was executed at his residence. Officers found numerous bags of suspected methamphetamine, fentanyl, cutting agents, blenders being used for drug distribution, digital scales, packaging materials, a disassembled .38 special revolver, firearm magazines, and ammunition.
Harmon has three prior felony convictions for drug and firearm offenses and four misdemeanor convictions. Harmon accumulated some of these convictions while serving probation for prior offenses. Harmon is prohibited from possessing firearms by federal law due to his previous felony convictions.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Field Office, made the announcement.
The FBI investigated the case in conjunction with IMPD and ISP. The sentence was imposed by U.S. District Judge James R. Sweeney II. As part of the sentence, Judge Sweeney ordered that Harmon be supervised by the U.S. Probation Office for four years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Pamela S. Domash who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Rapid City Woman Sentenced to Federal Prison for 17 Years for Drug ConspiracyRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that a Rapid City, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance was sentenced on September 12, 2022, by U.S. District Judge Jeffrey L. Viken.
Amber Ashlin, age 33, was sentenced to 17 years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Ashlin was indicted by a federal grand jury in January of 2022 and pleaded guilty in June of 2022. The conviction stems from Ashlin conspiring with others to distribute multiple pounds of methamphetamine in and around Rapid City between January 2018 and December 2021.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Unified Narcotics Enforcement Team, the Pennington County Sheriff’s Office, the South Dakota Department of Criminal Investigation, and the South Dakota Highway Patrol. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Ashlin was immediately remanded to the custody of the U.S. Marshals Service.
Preston County man admits to meth charge, sentencedRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jerrid Weaver, of Arthurdale, West Virginia, has admitted to having methamphetamine and was sentenced to 70 months of incarceration, United States Attorney William Ihlenfeld announced.
Weaver, 27, pleaded guilty today to one count of “Possession with Intent to Distribute Methamphetamine.” Weaver admitted to having methamphetamine in September 2020 in Preston County.
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives and the West Virginia State Police investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Pottawattamie County Man Sentenced for a Drug OffenseRead the Press Release
COUNCIL BLUFFS, IA – Dustin Michael Adkins, age 39 of Council Bluffs, was sentenced on September 20, 2022 to 132 months in prison for Possession with Intent to Distribute Methamphetamine. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
On September 17, 2021, law enforcement stopped Adkins for a traffic violation in Council Bluffs. Adkins initially eluded officers and a bag containing methamphetamine was thrown from the vehicle. Adkins was arrested and the methamphetamine was recovered. Adkins possessed a total of 90.43 grams of methamphetamine.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Council Bluffs Police Department, Pottawattamie County Sheriff Department, and Southwest Iowa Narcotics Enforcement Task Force investigated the case. This case was prosecuted by the United States Attorney’s Offices for the Southern District of Iowa.
Possession of Suspicious Package Containing Heroin Sends Jena Man to Federal PrisonRead the Press Release
ALEXANDRIA, La. - United States Attorney Brandon B. Brown announced that John Monroe Cameron, 45, of Jena, Louisiana, has been sentenced by United States District Judge David C. Joseph for possession of heroin. Cameron was sentenced to 46 months in prison, followed by 4 years of supervised release.
Cameron was indicted by a federal grand jury on March 9, 2022 and charged with possession with intent to distribute heroin. On June 28, 2022, he pled guilty to that charge. The charge stemmed from an investigation into an incident that occurred on February 8, 2022 when a law enforcement agent with the United States Postal Inspection Service (USPIS) discovered a suspicious parcel at the Shreveport Postal Service. The package was addressed to an individual in Jonesville, Louisiana from a sender in Pharr, Texas. A search warrant was obtained for the package and executed on that same day. During the execution of the warrant, the law enforcement agents found approximately 2.2 pounds of suspected black tar heroin.
Agents determined that the address on the package was an abandoned residence. Law enforcement agents went to the address to conduct a controlled delivery of the package. Upon arrival to the area, the agents observed a pickup truck blocking the road. The occupant, later identified as Cameron, exited the truck and approached the agents and told them they were at the correct address and took the package. Agents left the scene but through surveillance observed Cameron take the package to a nearby wooded area where he opened it.
The case was investigated by the USPIS and Cameron Parish Sheriff’s Office and prosecuted by Assistant U.S. Attorney Tennille M. Gilreath.
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Phoenix Man Sentenced to 35 Years for Role in Deadly KidnappingsRead the Press Release
LEXINGTON, Ky. — A Phoenix man, Rosario Diaz Barraza, 32, was sentenced to 35 years in federal prison, on Tuesday, by U.S. District Court Judge Karen Caldwell, after previously being convicted of conspiracy to commit kidnapping and interstate transportation of stolen automobiles.
According to evidence presented at trial, the charges stemmed from the kidnappings of two individuals, identified in court records as J.O. and M.A.T.O. Both victims were killed during the commission of the kidnappings. Their bodies were discovered in the trunk of a Volkswagen Jetta, on September 11, 2017, at 430 Blue Sky Parkway, in Lexington. That location was an automotive repair business owned by J.O. Two vehicles belonging to J.O. were stolen during the offenses and transported to Wilkes-Barre, Pennsylvania. Evidence presented at trial revealed that Camacho Zepeda and Diaz Barraza were distributing kilogram quantities of cocaine and heroin in Lexington, and that J.O. had incurred a debt to them, based on his involvement in the drug trafficking. Testimony by a pathologist from the Kentucky Medical Examiner’s Office established that J.O.’s cause of death was attributed to “chop wounds” to the head and asphyxiation. The second victim, M.A.T.O., died from asphyxiation.
Diaz Barraza was convicted at trial, in April 2022. Two additional defendants, Ramon Camacho Zepeda, 54, of Lexington, and John Carlos Betancourt, 27, of Penuelas, Puerto Rico, were also convicted for their roles in the kidnappings, in April 2022, and are awaiting sentencing.
Two other defendants, Jose Felix Tlatenchi, 39, of Wilkes-Barre, and Jean Michael Serrano-Jimenez, 31, of Hanover Township, Penn., previously entered guilty pleas relating to their involvement. Serrano-Jimenez pled guilty as charged to conspiracy to commit kidnapping, while Tlatenchi pled guilty as an accessory after the fact to the kidnappings. Both are also currently awaiting sentencing.
Under federal law, Diaz Barraza must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for five years.
“This was a brutal crime, and yet another example of the disturbing impact that illegal drug trafficking can have on communities,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “Bringing those responsible for this awful crime to justice involved tireless, dedicated, and remarkable work, by both our trial team and our law enforcement partners, across several states. The conduct in this case more than warrants the sentence imposed and should serve as a warning to those who continue to engage in this dangerous trade. We will continue to use all the resources available to us to combat it.”
“This case further illustrates how violence and drug trafficking go hand-in-hand,” said Special Agent in Charge Todd Scott, head of the Drug Enforcement Administration’s Louisville Division. “The heinous and brutal nature of the killings in this particular instance are reflected in the lengthy prison sentence.”
United States Attorney Shier; DEA Special Agent Scott; Colonel Phillip Burnett, Commissioner, Kentucky State Police; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentencing.
The lengthy investigation was conducted primarily by the Lexington Police Department, the Drug Enforcement Administration, and the Kentucky State Police. Multiple additional law enforcement agencies also provided valuable assistance, including the Wilkes-Barre, Pennsylvania Police Department, the Reading, Pennsylvania Police Department, the Pennsylvania State Police, the New York City Police Department, the Harlingen, Texas Police Department and Homeland Security Investigations. The United States was represented in the case by Assistant U.S. Attorneys Todd Bradbury and Francisco Villalobos.
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Phoenix Man Charged with Assaulting a Border Patrol AgentRead the Press Release
TUCSON, Ariz. – Last week, Daniel Jerome Wagner, 54, of Phoenix, Arizona, was arrested on one count of Assault on a Federal Officer with the Use of a Deadly or Dangerous Weapon. Wagner was charged by criminal complaint and had his initial appearance on Friday before United States Magistrate Judge Eric J. Markovich.
On September 21, 2022, near Douglas, Arizona, a U.S. Border Patrol (USBP) agent attempted to conduct an immigration inspection of a vehicle driven by Wagner, who was suspected of engaging in smuggling undocumented noncitizens. The agent followed Wagner’s vehicle, which was traveling westbound at a high rate of speed on U.S. State Route 80. Wagner then abruptly stopped his vehicle, causing the vehicle to spin in the middle of the highway. The agent stopped his vehicle and saw Wagner driving eastbound directly towards his fully marked U.S. Border Patrol vehicle. As Wagner drove towards the agent, he crossed into the agent’s lane, forcing the agent to drive off the highway and onto the shoulder to avoid being struck. Wagner drove past the agent’s vehicle, narrowly missing him. Other agents followed Wagner and eventually arrested him.
A conviction for Assault on a Federal Officer with the Use of a Deadly or Dangerous Weapon carries a maximum penalty of 20 years in prison, a fine of up to$250,000, or both.
A criminal complaint is simply the method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
Customs and Border Protection’s U.S. Border Patrol conducted the investigation in this case. Assistant U.S. Attorney Raquel Arellano, District of Arizona, Tucson, is handling the prosecution.
CASE NUMBER: 22-00607MJ
RELEASE NUMBER: 2022-162_Wagner# # #
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.Philadelphia Man Admits Role in Salem County Bank RobberyRead the Press Release
CAMDEN, N.J. – A Philadelphia man today admitted serving as the get-away driver to two Pennsylvania men who robbed a bank in Carneys Point, New Jersey, in July 2018, while brandishing a firearm, U.S. Attorney Philip R. Sellinger announced.
Kenneth S. Thompson, 43, of Philadelphia, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an indictment charging him with bank robbery.
According to documents filed in this case and statements made in court:
Thompson admitted that on July 30, 2018, he and co-defendants Antwaine Thomas and Kareem Moore drove from Philadelphia to Salem County. They agreed that Thomas and Moore would rob the Fulton Bank in Carneys Point and that Thompson would assist them in escaping with the stolen proceeds by serving as the get-away driver. Thomas and Moore walked into the bank and demanded cash from numerous bank employees while pointing a loaded handgun at them. Thomas and Moore took the cash from the bank and fled. In the meantime, Thompson drove past the bank multiple times in an effort to abscond with his confederates, but was thwarted when responding officers arrived at the bank within minutes of the robbery. Thompson fled in the get-away car.
The count of bank robbery to which Thompson pleaded guilty is punishable by a maximum of 20 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Feb. 1, 2023.
Thomas and Moore previously pleaded guilty to armed bank robbery and brandishing a firearm during a bank robbery, and on May 11, 2021, Judge Rodriguez sentenced them to 272 months’ imprisonment and 168 months’ imprisonment, respectively.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia; the Salem County Prosecutor’s Office, under the direction of Salem County Prosecutor Kristin J. Telsey; officers of the Carneys Point Police Department, under the direction of Chief Dale VanNamee; and officers of the Penns Grove Police Department, under the direction of Police Director Richard Rivera, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Kristen M. Harberg of the U.S. Attorney’s Office in Camden.
Owner of Farm Labor Contracting Company Pleads Guilty in Racketeering Conspiracy Involving the Forced Labor of Mexican WorkersRead the Press Release
Bladimir Moreno, 55, pleaded guilty in federal court in Tampa, Florida, to charges of conspiracy under the Racketeer Influenced and Corrupt Organizations (RICO) Act and conspiracy to commit forced labor. A federal grand jury in the Middle District of Florida had previously returned a six-count indictment against multiple defendants for their roles in a federal racketeering conspiracy that victimized Mexican H-2A workers who, between 2015 and 2017, had worked in the United States harvesting fruits, vegetables and other agricultural products.
“The scheme these defendants employed trapped the victims through fear of serious harm if they did not continue to toil away for the defendants’ profit,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Department of Justice is committed to combating human trafficking in all its forms, including prosecuting agricultural employers who break the law to subject their vulnerable migrant farm workers to forced labor.”
“Forcing individuals to work against their will using abusive and coercive tactics is not only unconscionable but illegal,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “We will continue to work with our human trafficking task forces to stamp out these illegal practices throughout our district and state.”
According to court documents, Moreno owned, operated and managed Los Villatoros Harvesting (LVH), a farm labor contracting company, that functioned as a criminal enterprise compelling victims to work in Florida, Kentucky, Indiana, Georgia and North Carolina. After charging Mexican farm workers exorbitant sums to come into the United States on short-term, H-2A, agricultural visas to work for LVH, Moreno and his co-conspirators coerced over a dozen workers into providing long hours of physically demanding agricultural labor, six to seven days a week, for de minimis pay. Moreno and his co-conspirators used various coercive means, including imposing debts on workers; confiscating the workers’ passports; subjecting workers to crowded, unsanitary and degrading living conditions; verbally abusing and humiliating the workers; threatening workers with arrest, jailtime and deportation; isolating workers by preventing them from interacting with anyone other than LVH employees; and threatening to physically harm the workers’ family members back in Mexico if the workers failed to comply with their demands. In addition to conspiring to subject H-2A workers to forced labor, Moreno and his coconspirators also harbored H-2A workers in the United States after their visas had expired for financial gain and committed visa fraud and fraud in foreign labor contracting.
Earlier this year, three co-defendants who had worked for Moreno and assisted him in operating LVH pleaded guilty to related offenses. Christina Gamez, 43, a U.S. citizen, who worked for LVH as a bookkeeper, manager and supervisor, pleaded guilty to RICO conspiracy. Efrain Cabrera Rodas, 32, a citizen of Mexico, who worked for LVH as a recruiter, manager and supervisor, also pleaded guilty to RICO conspiracy. Guadalupe Mendes Mendoza, 45, a citizen of Mexico, who worked for LVH as a manager and supervisor, pleaded guilty to conspiring to obstruct a federal investigation.
The Palm Beach County Human Trafficking Task Force, which includes the Federal Bureau of Investigation, Homeland Security Investigations, and the Palm Beach County Sheriff’s Office, investigated the case. The Task Force received assistance from the Department of Labor (DOL) Office of the Inspector General, the DOL Wage and Hour Division, the Department of State Diplomatic Security Service, and Coalition of Immokalee Workers, Colorado Legal Services Migrant Farm Worker Division, Legal Aid Services of Oregon Farmworker Program and Indiana Legal Services Worker Rights and Protection Project.
The announcement was made by Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division and U.S. Attorney Roger Handberg for the Middle District of Florida.
Assistant U.S. Attorney Ilyssa Spergel for the Middle District of Florida and Trial Attorneys Avner Shapiro, Maryam Zhuravitsky, and Matthew Thiman of the Civil Rights Division’s Criminal Section are prosecuting the case.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Department of Justice’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
Owner of Farm Labor Contracting Company Pleads Guilty in Racketeering Conspiracy Involving the Forced Labor of Mexican WorkersRead the Press Release
WASHINGTON —Bladimir Moreno, 55, pleaded guilty in federal court in Tampa, Florida, to charges of conspiracy under the Racketeer Influenced and Corrupt Organizations (RICO) Act and conspiracy to commit forced labor. A federal grand jury in the Middle District of Florida had previously returned a six-count indictment against multiple defendants for their roles in a federal racketeering conspiracy that victimized Mexican H-2A workers who, between 2015 and 2017, had worked in the United States harvesting fruits, vegetables and other agricultural products. The announcement was made by Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division and U.S. Attorney Roger Handberg for the Middle District of Florida.
“The scheme these defendants employed trapped the victims through fear of serious harm if they did not continue to toil away for the defendants’ profit,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “The Department of Justice is committed to combatting human trafficking in all its forms, including prosecuting agricultural employers who break the law to subject their vulnerable migrant farm workers to forced labor.”
“Forcing individuals to work against their will using abusive and coercive tactics is not only unconscionable but illegal,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “We will continue to work with our human trafficking task forces to stamp out these illegal practices throughout our district and state.”
According to court documents, Moreno owned, operated, and managed Los Villatoros Harvesting (LVH), a farm labor contracting company, that functioned as a criminal enterprise compelling victims to work in Florida, Kentucky, Indiana, Georgia and North Carolina. After charging Mexican farm workers exorbitant sums to come into the United States on short-term, H-2A, agricultural visas to work for LVH, Moreno and his co-conspirators coerced over a dozen workers into providing long hours of physically demanding agricultural labor, six to seven days a week, for de minimis pay. Moreno and his co-conspirators used various coercive means, including imposing debts on workers; confiscating the workers’ passports; subjecting workers to crowded, unsanitary and degrading living conditions; verbally abusing and humiliating the workers; threatening workers with arrest, jailtime and deportation; isolating workers by preventing them from interacting with anyone other than LVH employees; and threatening to physically harm the workers’ family members back in Mexico if the workers failed to comply with their demands. In addition to conspiring to subject H-2A workers to forced labor, Moreno and his coconspirators also harbored H-2A workers in the United States after their visas had expired for financial gain and committed visa fraud and fraud in foreign labor contracting.
Earlier this year, three co-defendants who had worked for Moreno and assisted him in operating LVH pleaded guilty to related offenses. First, Christina Gamez, 43, a U.S. citizen, who worked for LVH as a bookkeeper, manager and supervisor, pleaded guilty to RICO conspiracy. Second, Efrain Cabrera Rodas, 32, a citizen of Mexico, who worked for LVH as a recruiter, manager and supervisor, also pleaded guilty to RICO conspiracy. Third, Guadalupe Mendes Mendoza, 45, a citizen of Mexico, who worked for LVH as a manager and supervisor, pleaded guilty to conspiring to obstruct a federal investigation.
The Palm Beach County Human Trafficking Task Force, which includes the Federal Bureau of Investigation, Homeland Security Investigations, and the Palm Beach County Sheriff’s Office, investigated the case. The Task Force received assistance from the Department of Labor (DOL) Office of the Inspector General, the DOL Wage and Hour Division, the Department of State Diplomatic Security Service, and Coalition of Immokalee Workers, Colorado Legal Services Migrant Farm Worker Division, Legal Aid Services of Oregon Farmworker Program and Indiana Legal Services Worker Rights and Protection Project.
Assistant U.S. Attorney Ilyssa Spergel for the Middle District of Florida and Trial Attorneys Avner Shapiro, Maryam Zhuravitsky, and Matthew Thiman of the Justice Department’s Civil Rights Division are prosecuting the case.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Department of Justice’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
Oklahoma City Companies and Owner Pay Nearly $2 Million for Used Oil Processing, Transportation, and Storage ViolationsRead the Press Release
OKLAHOMA CITY – January Environmental Services, Inc., January Transport, Inc. and company-owner Cris January (collectively Defendants) will pay civil penalties of $1.9 million and perform comprehensive corrective measures to resolve allegations that they violated the Resource Conservation and Recovery Act (RCRA) through their used oil transportation and processing operations in Oklahoma City, Oklahoma, announced United States Attorney Robert J. Troester.
The United States and the Oklahoma Department of Environmental Quality (ODEQ) filed a complaint in federal district court in December 2020, alleging Defendants committed multiple violations of RCRA’s used oil and hazardous waste regulations. According to the complaint, Defendants transported and stored hazardous wastes without proper transport manifests or a RCRA permit, transported and processed used oil without proper testing to ensure that the oil did not contain hazardous waste, failed to maintain safe work spaces in the storage areas of the facility, and disposed of used oil filters mixed with other wastes at local landfills without first determining whether the mixture of wastes was hazardous. The violations were uncovered through a series of inspections conducted by ODEQ and subsequent joint inspections by EPA and ODEQ.
"Protecting our community requires that we safeguard our land and natural resources through the vigorous enforcement of federal environmental laws," said Robert J. Troester, United States Attorney for the Western District of Oklahoma. "The settlement furthers three critical goals: accountability, compliance, and safety. I applaud the law enforcement professionals for their efforts with this resolution."
To settle the alleged violations and come into compliance with RCRA requirements, Defendants agreed to the entry of a consent decree by the Court (Consent Decree). Under the Consent Decree, Defendants must pay a civil penalty in the amount of $1.9 million. To come into compliance with the RCRA regulations, they must use proper methods to test for the presence of hazardous waste in the used oil they collect, transport to, and process at their facility. The Consent Decree also requires Defendants hire an independent engineer to evaluate the facility’s spill prevention and containment preparedness and submit compliance reports to EPA and ODEQ. In addition, they must ensure that all used oil filters are properly processed and assessed for potentially hazardous waste prior to sending any of the filters off-site for disposal.
In reaching this settlement, Defendants did not admit liability, and the government did not make any concessions about the legitimacy of the claims. The settlement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by Environmental Protection Agency and the Oklahoma Department of Environmental Quality. Assistant U.S. Attorney Ronald R. Gallegos and Environmental and Natural Resources Division attorneys Jason Barbeau and Asia A. McNeil-Womack prosecuted the case on behalf of the United States.
Ohio Woman Pleads Guilty to Drug and Gun ChargesRead the Press Release
PITTSBURGH, PA - A resident of Conneaut Ohio, pleaded guilty in federal court to charges of possession with intent to distribute controlled substances and possession of a firearm in furtherance of that drug trafficking crime, United States Attorney Cindy K. Chung announced today.
Jennifer Glasscock, age 38, pleaded guilty to two counts before Chief United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that on Nov. 30, 2020, a Trooper with the Pennsylvania State Police conducted a traffic stop of a vehicle driven by Glasscock in Lawrence County, Pennsylvania. Upon approaching the vehicle, the Trooper observed Glasscock with an open purse in her lap. The open purse contained a loaded handgun, pills, rubber bands, her driver’s license, and approximately $4,000.00 in United States currency. On the floor of the vehicle, the Trooper observed, in plain view, suspected methamphetamine. The Trooper also observed a green backpack on the backseat.
Thereafter, law enforcement applied for and obtained a search warrant for the vehicle. The green backpack contained two lockboxes, which held suspected controlled substances and two digital scales. The Greensburg Regional Laboratory confirmed net weight and identity of the controlled substances as follows: 195 grams of methamphetamine, 26 grams of a mixture containing heroin, fentanyl, and cocaine, perforated paper containing LSD, and 15 grams of oxycodone. Methamphetamine, fentanyl, cocaine, and oxycodone are Schedule II controlled substances. Heroin and LSD are Schedule I controlled substances.
Judge Hornak scheduled sentencing for Feb. 7, 2023, at 9:30 a.m.. The law provides for a total sentence of life in prison, a fine of $5,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court remanded the defendant into the custody of the U.S. Marshals Service.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The Pennsylvania State Police and the Drug Enforcement Administration conducted the investigation that led to the prosecution of Glasscock.
Northwood Man Pleads Guilty to Fraudulently Attempting to Obtain over $3.5 Million in CARES Act FundsRead the Press Release
CONCORD – Joshua Leavitt, 40, of Northwood, New Hampshire, pleaded guilty in federal court to bank fraud and wire fraud, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, between March 2020 and November 2021, Leavitt and his co-defendant fraudulently applied for over two dozen loans under the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) programs. Congress had authorized the PPP and EIDL relief programs to help the millions of Americans and many small businesses adversely affected by the early stages of the COVID pandemic. PPP loans were issued by private lenders but fully guaranteed by the government, and EIDL funds were issued by the Small Business Administration.
For example, Leavitt and his co-defendant applied for and obtained a $175,000 PPP loan from TD Bank for one of their companies, Puro Group. The application claimed that Puro Group’s monthly payroll was $70,000 and that the company had six employees.
In connection with this application, Leavitt and his co-defendant submitted false supporting documents. One of those documents was a false IRS Form 941, or quarterly tax return, for the first quarter 2020. The document, which the defendants purportedly filed with the IRS, claimed that Puro Group had five employees that quarter who were paid a total of $209,999.99. The document also claimed that the defendants paid actual federal income tax of $27,600 that quarter. However, that document was never filed with the IRS. The real tax filings showed that Puro Group paid $48,255.53 to its employees during the entire calendar year of 2020, or approximately $4,000 per month.
As another example of the fraud, Leavitt and his co-defendant applied for, and obtained a $29,000 EIDL and $7,000 Economic Injury Disaster Grant for another of their companies, Monticello Transnational. They falsely claimed that Monticello Transnational’s gross revenues for the year preceding January 31, 2020, was $75,000 and that the company had seven employees. However, bank records showed no payments to employees and that the company had only a few thousand dollars’ worth of deposits. In addition, there were no tax filings for the company for 2019 or the first quarter of 2020.
In total, Leavitt and his co-defendant attempted to fraudulently obtain more than $3.5 million in PPP and EIDL funds. Leavitt will be required to pay restitution of $869,475.50.
Leavitt is scheduled to be sentenced on January 11, 2023.
Leavitt’s co-defendant has pleaded not guilty. The charges in the indictment are only allegations. He is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Treasury Inspector General for Tax Administration and Secret Service, with assistance from the U.S. Postal Inspection Service. It is being prosecuted by Special Assistant U.S. Attorney Alexander S. Chen.
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New Haven Man Charged with Gun and Drug OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned an indictment charging TEEJAY JOHNSON, 37, of New Haven, with unlawful firearm possession and fentanyl distribution offenses.
The indictment was returned on September 6, 2022. Johnson, who has been detained since his federal arrest on April 21, 2022, appeared yesterday before U.S. Magistrate Judge Robert A. Richardson in Hartford and pleaded not guilty to the charges.
As alleged in court documents and statements made in count, on March 9, 2022, members of the New Haven Police Department Shooting Task Force and other law enforcement officers executed a state search warrant at Johnson’s residence. Johnson was found coming out of the bathroom and suspected narcotics had been flushed down the toilet. Investigators collected samples of suspected narcotics from the bathroom, and found in other areas of the residence fentanyl and other suspected narcotics, suspected marijuana, more than $8,600 in cash, and a loaded .40 caliber handgun with an extended magazine and 16 rounds of ammunition.
Johnson’s criminal history includes state felony convictions for firearm and assault related offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
The indictment charges Johnson with unlawful possession of a firearm by a felon, which carries a maximum term of imprisonment of 10 years, and possession with intent to distribute fentanyl, which carries a maximum term of imprisonment of 20 years.
U.S. Attorney Avery stressed that charges are not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Anastasia King.
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.
Muscatine Man Sentenced to 25 Years in Federal Prison for Child Pornography ChargesRead the Press Release
DAVENPORT, IA – Jacob Paul Bermel, age 39 of Muscatine, was sentenced on Monday, September 26, 2022, to 300 months in prison following his plea to charges of Production and Possession of Child Pornography. Bermel was ordered to pay $3,000 in restitution to each of his four victims, totaling $12,000.
The investigation into Bermel began when law enforcement received a report of a hidden camera located in a bathroom of his house. The investigation revealed that Bermel made recordings that contained child pornography. Further, Bermel had been downloading and uploading child pornography from the internet and on social media applications for numerous years. Two cybertips were received by the National Center for Missing and Exploited Children, indicating that a social media account associated with Bermal uploaded images of teenage girls.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Federal Bureau of Investigation investigated the case.
This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nationwide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children. Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Mission Man Indicted for LarcenyRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Larceny.
Dustin Gallegos, Jr., age 25, was indicted in May of 2022. He appeared before U.S. Magistrate Judge Daneta Wollmann on September 27, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to five years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on March 7, 2022, in Todd County, South Dakota, Gallegos stole personal property with a value of more than $1,000.
The charge is merely an accusation and Gallegos is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Gallegos was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Midland Man Sentenced to over 16 Years in Prison for Illegal Fentanyl and Firearm PossessionRead the Press Release
ALPINE – A Midland man was sentenced today to a total of 200 months in prison for possessing fentanyl and illegally possessing a firearm.
According to court documents, Edgar Parra, 36, sold a total of 112.3 grams of fentanyl to undercover DEA operatives on three separate occasions between August and October 2021. On November 11, 2021, the Midland Police Department executed a search warrant on Parra’s hotel room where they found a loaded handgun along with 3.7 grams of methamphetamine.
On March 23, 2022, Parra pleaded guilty to one count of conspiracy to possess with intent to distribute fentanyl and one count of possessing a firearm during and in furtherance of a drug trafficking crime. Parra has remained in federal custody since he was arrested on federal indictment charges on January 21, 2022.
“Prosecuting crimes involving deadly fentanyl is a priority for our office,” said U.S. Attorney Ashley C. Hoff. “We are thankful for the collaborative efforts of our law enforcement partners that have taken another fentanyl dealer off the streets such that he is no longer peddling this poison.”
“Illicit fentanyl is killing Americans across our nation, including in West Texas communities,” said Drug Enforcement Administration (DEA) Special Agent in Charge Greg Millard, El Paso Division. “This case shows that DEA and its law enforcement partners will ensure that criminals who deal in this deadly substance are held responsible for the harm they cause.”
DEA, with assistance from the Midland Police Department, investigated the case.
For more information on the dangers of fentanyl and DEA’s One Pill Can Kill campaign, please visit https://www.dea.gov/onepill.
Assistant U.S. Attorney Matthew Ellis prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Miami Resident Charged with Running $4.6 Million Ponzi Scheme, Spending Investor Money on Wedding and VacationsRead the Press Release
MIAMI -- South Florida federal prosecutors have charged Judith Dianne Paris-Pinder, 49, with defrauding people out of millions by lying about the nature of proposed investments (soon-to-be paid, lawyer-negotiated insurance company settlements) and the expected rate of return (50%).
Paris-Pinder was the President of Pinder Associates, Inc, a North Miami company. Prosecutors allege that from November 2019 to October 2021, Paris-Pinder used the following fraudulent sales pitch to lure investors into the scheme: She worked with lawyers representing litigation plaintiffs who had settled their claims but were still waiting for actual settlement payments from the insurance companies. Paris-Pinder would use investor funds to advance or lend to plaintiffs a portion of their settlements (less than the full settlement amount). In exchange for the advances or loans, once the litigation plaintiffs received the actual settlement payment from the insurance companies, they would turn that entire amount over to Paris-Pinder. Then, Paris-Pinder would distribute to investors their initial contributions plus any returns – which could be as high as 50%.
According to the charges, however, the entire investment scenario was a scam. Paris-Pinder did not work with lawyers representing litigation clients and there were no settlement agreements. It is alleged Paris-Pinder kept the Ponzi scheme going by using money from new investors to pay existing investors and that, in total, she deceived victims out of over $4.6 million. Paris-Pinder spent about $1 million on herself, paying for her wedding, vacations and other entertainment, say federal prosecutors.
Paris-Pinder made her initial appearance yesterday in federal magistrate court in Miami. If convicted, she faces up to 20 years in federal prison.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, Robert M. DeWitt, Acting Special Agent in Charge, FBI, Miami Field Office, and Russell C. Weigel, III, Commissioner, Florida Office of Financial Regulation announced the charges.
FBI Miami and Florida Office of Financial Regulation are investigating this case. Assistant U.S. Attorney Eric E. Morales is prosecuting it.
An information is a charging instrument containing allegations. A defendant is presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 22-cr-20452.
Mexican National Found Guilty of Importing and Possessing MarijuanaRead the Press Release
PECOS – A federal jury convicted a Mexican national last week of importing and possessing marijuana.
According to court documents and evidence presented at trial, U.S. Border Patrol (USBP) agents encountered Jose Manuel Ayala-Alas, 26, and six other co-defendants hiding in the brush in the High Lonesome Mountains on June 22, 2022. USBP agents were able to apprehend the group with assistance from the Texas Department of Public Safety (DPS) Aircraft Operations Division. Backtracking the group’s footprints, troopers flying the DPS helicopter assisted agents in the discovery of 10 burlap sacks containing approximately 603 pounds of marijuana hidden in the brush.
Ayala was found guilty of one count of importation of marijuana and one count of possession with intent to distribute marijuana. A sentencing date has not been set. Ayala faces up to 40 years in prison on each count.
Ayala’s co-defendants, Leonel Ayala-Alas, 23; Jeronimo Alas-Ayala, 29; Julio Ayala-Torres, 28; Arturo Gonzalez-Terrazas, 40; Pedro Rio-Molina, 20; and Jose Mirey Trueba-Molina, 19, all from Mexico, pleaded guilty to one count of possession with intent to distribute marijuana. All are scheduled to be sentenced in November 2022.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and Drug Enforcement Administration (DEA) Special Agent in Charge Greg Millard, El Paso Division made the announcement.
The DEA, with valuable assistance from USBP and DPS, is investigating the case.
Assistant U.S. Attorneys Matthew Ellis and Amy Greenbaum are prosecuting the case.
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Massachusetts Man Arrested with Ten Kilograms of Fentanyl Packaged for DistributionRead the Press Release
CONCORD –Johan M. Rodriguez, 37, of Lawrence, Massachusetts was charged in a criminal complaint today, with one count of conspiracy to possess with the intent to distribute and to distribute controlled substances, specifically, fentanyl, United States Attorney Jane E. Young announces.
Rodriguez was arrested in Dover, New Hampshire on September 26, 2022, and is scheduled to make an initial court appearance in the District of New Hampshire today at 3:00 pm.
The criminal complaint filed in court alleges that on September 26, 2022, Rodriguez hired an Uber to drive him from Lawrence, Massachusetts to a residence in Dover to deliver approximately ten kilograms of fentanyl for a Lawrence-based drug supplier. Law enforcement surveilled Rodriguez as he removed a toolbox and tool bag from the Uber’s trunk and carried them to the door of the residence where law enforcement encountered him. A search of the toolbox resulted in the seizure of approximately ten kilograms of suspected fentanyl which was separated into individual bundles ready for distribution.
The charges in the criminal complaint are only allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Federal Bureau of Investigation’s New Hampshire Major Offender Task Force and was assisted by the Strafford County Sheriff’s Office’s - Problem Solving Oriented Policing Unit, the Rockingham County Sheriff’s Office’s - Drug Task Force, and the Dover Police Department.
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Massachusetts Company Enters Settlement Agreement to Resolve Claims of Medicaid Over-BillingRead the Press Release
NEWARK, N.J. – A Boston, Massachusetts, company entered into a settlement agreement with the United States to resolve allegations that it caused improper claims for payment to be made to the U.S. Department of Health & Human Services, Centers for Medicare and Medicaid Services (CMS), U.S. Attorney Philip R. Sellinger announced today.
The investigation of Public Consulting Group LLC (PCG) was initiated through the filing of a complaint under the whistleblower provision of the False Claims Act. That complaint, which was unsealed on Sept. 26, 2022, alleged that PCG was hired by the state of New Jersey in 2005 to administer New Jersey’s “Special Education Medicaid Initiative,” or SEMI program. Under the SEMI program, the state of New Jersey and local school districts could obtain federal funding for providing eligible medical services to Medicaid-eligible students. The complaint alleged that PCG caused local school districts to submit claims to CMS for evaluation services that PCG knew or should have known were not covered by Medicaid.
The settlement agreement resolves common law claims by the United States against PCG for payment by mistake, arising from evaluation service claims submitted by or for New Jersey school districts under the SEMI program from April 23, 2006, through the date of settlement. PCG will pay $2.5 million to the United States. Once PCG makes the payment, the case will be dismissed. The relator, or whistleblower, who originally filed suit on behalf of the United States, will receive 21 percent of the settlement amount recovered by the United States.
U.S. Attorney Sellinger credited special agents of the U.S. Department of Health and Human Services, Office of Inspector General, (HHS-OIG) Office of Investigations-New Jersey Field Office, under the Direction of Special Agent in Charge Scott J. Lampert, and auditors working with HHS-OIG Office of Audit Services, under the direction of Regional Inspector General for Audit Services Brenda M. Tierney, with the investigation leading to the settlement.
The civil settlement agreement, by its terms, is neither an admission of liability by PCG nor a concession by the United States that its claims are not well founded.
The government is represented by Deputy Chief David E. Dauenheimer and Assistant U.S. Attorney David V. Simunovich of the Health Care Fraud Unit in Newark.
The qui tam case is captioned United States ex rel. Shane Shackford v. Public Consulting Group, Inc., et al., Civil Action No. 12-2437.
Maryland United States Attorney’s Office Resolves Disability Discrimination Lawsuit Against Maryland Developer Involving Multifamily Housing ComplexesRead the Press Release
Baltimore, Maryland – United States Attorney for the District of Maryland Erek L. Barron and Assistant Attorney General Kristen Clarke of the Department of Justice’s Civil Rights Division announced today that Maryland-based developer Stavrou Associates, Inc. and related entities have agreed to pay $185,000 to settle claims that they violated the Fair Housing Act (FHA) and the Americans with Disabilities Act (ADA) by failing to build 11 multi-family housing complexes in Maryland with required accessible features for people with disabilities. As part of the settlement, the defendants also agreed to make extensive retrofits to remove accessibility barriers at the complexes.
The government’s lawsuit, filed today, raises similar allegations against a second Maryland-based developer, Humphrey Stavrou Associates, Inc., and related entities, which were involved in building six other multi-family housing complexes in Maryland. The lawsuit involving those properties is unaffected by today’s settlement.
“The requirement that housing complexes be built with accessible features for people with disabilities is not new,” said U.S. Attorney for the District of Maryland Erek L. Barron. “Developers must include accessible features and we will hold accountable those who do not.”
“The Justice Department is committed to ensuring that multi-family housing properties are accessible to people with disabilities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “When the retrofits required by our settlement are completed, people with disabilities will have equal access to more than 1,000 residential units in Maryland.”
The combined 17 properties at issue in the litigation were built with financial assistance from the federal government’s Low-Income Housing Tax Credit program and the HOME Investment Partnerships Program, and some of the properties are specifically marketed as housing for seniors.
The settlement, which must still be approved by the U.S. District Court for the District of Maryland, requires the defendants to pay all costs related to the retrofits, $175,000 into a settlement fund to compensate individuals harmed by the inaccessible housing, and civil penalties of $10,000 to the government.
Under the settlement, the defendants will, among other things, replace steeply-sloped walkways and install new walkways to help residents reach units, amenities, mailboxes and entrances to the properties, remove obstacles from pedestrian pathways, widen doorways, and modify bathrooms and kitchens so they are accessible for individuals who use wheelchairs. The settlement also requires the defendants to receive training about the FHA and the ADA, to ensure that their future multi-family housing construction complies with these laws and to provide periodic reports to the Justice Department. The 11 complexes are:
1. Villages at Belle Hill, Elkton, Maryland
2. Burgess Mill Station I, Ellicott City, Maryland
3. Burgess Mill Station II, Ellicott City, Maryland
4. River Point Apartments, Essex, Maryland
5. Hammarlee House Apartments, Glen Burnie, Maryland
6. Overland Gardens, Landover, Maryland
7. Rainier Manor Phase II Apartments, Mount Rainier, Maryland
8. Chapel Springs Senior Apartments, Perry Hall, Maryland
9. Hampshire Village, Silver Spring, Maryland
10. Windsor Crossing Family Apartments, Suitland, Maryland
11. Windsor Crossing Senior Apartments, Suitland, MarylandThe six complexes built by Humphrey Stavrou Associates, Inc. that are the subject of the continuing lawsuit are:
1. Pin Oak Village, Bowie, Maryland
2. Woodland Creek Apartments (formerly “Henson Creek Manor I and II
Apartments”), Fort Washington, Maryland
3. Woodside Village Apartments, Fort Washington, Maryland
4. Acclaim at Lake Largo (formerly “Largo Center Apartments”), Largo, Maryland
5. Randolph Village Senior Apartments, Silver Spring, Maryland
6. Vistas at Lake Largo, Upper Marlboro, MarylandIndividuals who believe they or someone they know may have had difficulties because of the inaccessible conditions at any of these properties should send an e-mail to the Justice Department at [email protected] or leave a message at 1-833-591-0291, selecting option 1 for English, selecting option 4 for housing accessibility for persons with disabilities, and selecting option 4 for Stavrou Associates Inc.
The United States Attorney’s Office together with the Justice Department’s Civil Rights Division enforce the FHA, which prohibits discrimination in housing based on disability, race, color, religion, national origin, sex, and familial status. This law requires that multifamily housing buildings with four or more units constructed after March 13, 1991, have basic accessible features. Enacted in 1990, the ADA requires that places of public accommodation, such as rental offices at multifamily housing complexes constructed after Jan. 26, 1993, be accessible to persons with disabilities.
U.S. Attorney Erek L. Barron and Assistant Attorney General Kristen Clarke thanked Assistant U.S. Attorney Kimberly S. Phillips of the District of Maryland and Trial Attorneys Beth Pepper and Jennifer McAllister of the Justice Department’s Civil Rights Division, who are handling these cases.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-Maryland and https://www.justice.gov/usao-Maryland/civil-rights.
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Long Island Man Convicted of Attempted Sex Trafficking, Attempted Kidnapping, Unlawful Possession of a Firearm and Obstruction of JusticeRead the Press Release
Earlier today, in federal court in Central Islip, Andrew Frey pleaded guilty before United States Magistrate Judge Arlene R. Lindsay to being a felon in possession of a firearm and obstruction of justice. Today’s guilty plea follows the defendant’s conviction by a federal jury of the attempted sex trafficking and attempted kidnapping of two victims. The verdict in that case was returned on September 20, 2022 after two weeks of trial before United States District Judge Joan M. Azrack. When sentenced, the defendant faces a mandatory minimum sentence of 15 years’ imprisonment, and up to life in prison.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Rodney K. Harrison, Commissioner, Suffolk County Police Department (SCPD), announced the guilty plea and verdict.
“Frey targeted and used violence against vulnerable members of our society seeking to exploit them for his own sexual gratification,” stated United States Attorney Peace. “Fortunately, the young women whom the defendant sought to victimize were able to escape. Today’s guilty plea, and the jury’s verdict, make clear there was no escape from justice for this dangerous defendant.”
Mr. Peace also expressed his appreciation to the Suffolk County Sheriff’s Office, the Suffolk County District Attorney’s Office and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives for their assistance.
“The victims in this case jumped from a moving vehicle rather than risk the fate Frey had waiting for them. Based on the weapons investigators discovered, Frey's intent was dangerous, if not deadly. These women should be commended for their bravery, which we hope will serve as motivation for any other women being victimized by sexual predators to call us,” stated FBI Assistant Director-in-Charge Driscoll.
“The defendant has proven to be a dangerous individual with a propensity for preying upon and attacking vulnerable women who refuse to bend to the will of a sexual predator,” stated SCPD Commissioner Harrison. “I commend the victims for taking action and coming forward to work with law enforcement to bring a violent and dangerous man to justice.”
As proven at trial, the defendant attempted to traffic and kidnap two women in Suffolk County. In October 2018, the defendant lured a sex worker who was addicted to heroin into his car in Mastic, New York. When the victim refused to accompany him to a secluded location on the beach, the defendant became enraged and threatened her life. He tried to trap her inside his car by speeding, locking the doors and grabbing her neck. The victim managed to escape by jumping from his moving vehicle, suffering injuries to her back when she struck the pavement. The defendant later tracked down his victim sleeping inside of a friend’s parked car at a Long Island Railroad station. Armed with a knife, the defendant tried to remove the victim from the car, but her friend sped away. The defendant chased after them in his car, but the victim once again managed to escape.
In July 2019, the defendant attempted to take a second sex worker to a secluded wooded area in Coram, New York. When she refused, the defendant became enraged, screamed that he “owned” her and tried to prevent her from leaving by grabbing her as he was driving. The defendant’s second victim also escaped by jumping out of his moving car, suffering injuries to her knee.At the time of the defendant’s arrest in November 2019, law enforcement officers searched the defendant’s car and found multiple sets of handcuffs, as well as knives, rope and other items that he could use for restraint. The defendant had installed a device in his car which allowed him to conceal his license plate with the push of a button. Additionally, law enforcement officers recovered a Glock 23 handgun and ammunition located in a safe inside of the defendant’s home. Because the defendant was a convicted felon and was not legally permitted to possess a firearm, he pressured his son to obtain a pistol permit to conceal that he was the true owner of the firearm.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Oren Gleich, Ivory L. Bishop, Jr., Justina Geraci and Christopher Caffarone are in charge of the prosecution with the assistance of paralegal Dejah Turla.
The Defendant:
ANDREW FREY
Age: 57
Coram, New YorkE.D.N.Y. Docket No. 19-CR-537 (S-2) (JMA)
Leader of Sex Trafficking Ring Sentenced to 60 Years in Federal Prison, Ordered to Pay over $14 Million in RestitutionRead the Press Release
MIAMI – A South Florida federal district judge has sentenced William D. Foster, 50, to 60 years in prison for running a sex trafficking organization for more than 20 years that exploited dozens of vulnerable women and girls. The judge also entered a $3.4 million forfeiture money judgment against Foster and ordered him to pay over $14 million in restitution to his victims.
At any given time, up to 15 women and girls lived with, and worked for, Foster. Through manipulation, lies, and threats, Foster forced his victims to work at South Florida exotic dance clubs and engage in commercial sex. Foster told the victims that he would invest their earnings so that they could retire in their 20s, which was not true. Foster coerced victims into working eight-hour shifts, six days a week, every week of the year and kept all their money.
He used psychological coercion and violence to keep victims in line. If a victim wanted to buy things like food, clothes, or personal hygiene products, she first had to get permission from Foster. He required many of the victims to go on liquid diets, get unsafe weight loss surgeries, and take anti-anxiety and anti-psychotic medications without proper diagnoses. Foster often had sex with victims, some of whom were minors.
If a victim attempted to leave, Foster would threaten financial ruin and other harm. If a victim left, she left with nothing.
Foster expanded his operation beyond South Florida. He transported victims to other states including New York, New Jersey, Michigan, and Nevada, for the purpose of engaging in prostitution.
Law enforcement officers recovered one of Foster’s victims out of a Detroit hotel room after she called the National Human Trafficking Hotline.
Foster tried to grow his business by starting a website (Foster’s Care) that promised to help human trafficking victims. His plan, however, was not to save anyone, but to lure them into his commercial sex business.
Foster pled guilty in March to conspiracy to commit sex trafficking; sex trafficking of a minor; sex trafficking of a minor by force, fraud, and coercion; five counts of sex trafficking by force, fraud, and coercion; two counts of sex trafficking by fraud and coercion; conspiracy to transport individuals for purposes of prostitution; two counts of transporting individuals for prostitution and a money laundering conspiracy.
Two of Foster’s co-conspirators -- Ashleigh Holloway, 37, and Hanah Chan, 32 – pled guilty in the Southern District of Florida to bank fraud charges in connection with the operation. They are scheduled to be sentenced on October 11.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida; Robert M. DeWitt, Acting Special Agent in Charge, FBI Miami; and Anthony Salisbury, Homeland Security Investigations (HSI), Miami Field Office announced the sentence imposed yesterday by U.S. District Judge Raag Singhal.
FBI Miami and HSI Miami investigated this case. This case was prosecuted by Assistant U.S. Attorneys Jessica Kahn Obenauf and Brooke Elise Latta. Assistant U.S. Attorney Emily Stone is handling the asset forfeiture aspects of the case.
To report suspected human trafficking or to obtain resources for victims, please call 1-888-373-7888; text “BeFree” (233733), or live chat at HumanTraffickingHotline.org. The toll-free phone, SMS text lines, and online chat function are available 24 hours a day, 7 days a week, 365 days a year. Help is available in English, Spanish, Creole, or in more than 200 additional languages. The National Hotline is not managed by law enforcement, immigration or an investigative agency. Correspondence with the National Hotline is confidential and you may request assistance or report a tip anonymously. To learn more about the hotline, visit www.humantraffickinghotline.org.
To learn more about the U.S. Department of Justic’s efforts to combat human trafficking visit www.justice.gov/humantrafficking.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 19-cr-20804.
Lackawanna County Man Charged with Covid-Relief Fraud, Credit Card Fraud, and Identity Theft OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 23, 2022, Robert Brownstein, age 51, of Scranton, Pennsylvania, was charged in a criminal information with wire fraud conspiracy and aggravated identity theft.
According to United States Attorney Gerard M. Karam, the information alleges that Brownstein and his coconspirators used stolen identities to create forged identification documents and credit and debit cards. It is alleged that the conspirators used those forged items and stolen identities to open bank accounts, apply for lines of credit, and obtain retail merchandise. The conspirators also used the stolen identities to apply for multiple COVID-19 pandemic relief loans issued under the Small Business Administration’s Paycheck Protection Program (PPP), including by submitted false federal tax documentation.
The PPP is designed to help small businesses facing financial difficulties during the COVID-19 pandemic. Funded by the March 2020 CARES Act, PPP funds are offered in forgivable loans, provided that certain criteria are met, including use of the funds for employee payroll, mortgage interest, lease, and utilities expenses.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania Attorney General’s Office, and the Pottsville Bureau of Police. Assistant U.S. Attorney Phillip J. Caraballo 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.
The maximum penalty under federal law for the wire fraud conspiracy offense is 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. The aggravated identity theft offense carries a mandatory two-year sentence of imprisonment that is to run consecutive to any other term of imprisonment imposed. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Justice Department Resolves Disability Discrimination Lawsuit Against Maryland Developer Involving Multifamily Housing ComplexesRead the Press Release
The Justice Department announced today that Maryland-based developer Stavrou Associates Inc. and related entities have agreed to pay $185,000 to settle claims that they violated the Fair Housing Act (FHA) and the Americans with Disabilities Act (ADA) by failing to build 11 multifamily housing complexes in Maryland with required accessible features for people with disabilities. As part of the settlement, the defendants also agreed to make extensive retrofits to remove accessibility barriers at the complexes.
The government’s lawsuit, filed today, raises similar allegations against a second Maryland-based developer, Humphrey Stavrou Associates Inc., and related entities, which were involved in building six other multifamily housing complexes in Maryland. The lawsuit involving those properties is unaffected by today’s settlement.
“The Justice Department is committed to ensuring that multifamily housing properties are accessible to people with disabilities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “When the retrofits required by our settlement are completed, people with disabilities will have equal access to more than 1,000 residential units in Maryland.”
“The requirement that housing complexes be built with accessible features for people with disabilities is not new,” said U.S Attorney Erek L. Barron for the District of Maryland. “Developers must include accessible features and we will hold accountable those who do not.”
The combined 17 properties at issue in the litigation were built with financial assistance from the federal government’s Low-Income Housing Tax Credit program and the HOME Investment Partnerships Program, and some of the properties are specifically marketed as housing for seniors.
The settlement, which must still be approved by the U.S. District Court for the District of Maryland, requires the defendants to pay all costs related to the retrofits, $175,000 into a settlement fund to compensate individuals harmed by the inaccessible housing and civil penalties of $10,000 to the government.
Under the settlement, the defendants will, among other things, replace steeply-sloped walkways and install new walkways to help residents reach units, amenities, mailboxes and entrances to the properties, remove obstacles from pedestrian pathways, widen doorways and modify bathrooms and kitchens so they are accessible for individuals who use wheelchairs. The settlement also requires the defendants to receive training about the FHA and the ADA, to ensure that their future multifamily housing construction complies with these laws and to provide periodic reports to the Justice Department. The 11 complexes are:
- Villages at Belle Hill, Elkton, Maryland
- Burgess Mill Station I, Ellicott City, Maryland
- Burgess Mill Station II, Ellicott City, Maryland
- River Point Apartments, Essex, Maryland
- Hammarlee House Apartments, Glen Burnie, Maryland
- Overland Gardens, Landover, Maryland
- Rainier Manor Phase II Apartments, Mount Rainier, Maryland
- Chapel Springs Senior Apartments, Perry Hall, Maryland
- Hampshire Village, Silver Spring, Maryland
- Windsor Crossing Family Apartments, Suitland, Maryland
- Windsor Crossing Senior Apartments, Suitland, Maryland
The six complexes built by Humphrey Stavrou Associates Inc. that are the subject of the continuing lawsuit are:
- Pin Oak Village, Bowie, Maryland
- Woodland Creek Apartments (formerly “Henson Creek Manor I and II Apartments”), Fort Washington, Maryland
- Woodside Village Apartments, Fort Washington, Maryland
- Acclaim at Lake Largo (formerly “Largo Center Apartments”), Largo, Maryland
- Randolph Village Senior Apartments, Silver Spring, Maryland
- Vistas at Lake Largo, Upper Marlboro, Maryland
Individuals who believe they or someone they know may have had difficulties because of the inaccessible conditions at any of these properties should send an email to the Justice Department at [email protected] or leave a message at 1-833-591-0291, selecting option 1 for English, selecting option 4 for housing accessibility for persons with disabilities, and selecting option 4 for Stavrou Associates Inc.
The Justice Department’s Civil Rights Division enforces the FHA, which prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status. This law requires that multifamily housing buildings with four or more units constructed after March 13, 1991, have basic accessible features. Enacted in 1990, the ADA requires that places of public accommodation, such as rental offices at multifamily housing complexes constructed after Jan. 26, 1993, be accessible to persons with disabilities.
More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals may report disability discrimination or other forms of housing discrimination by calling the Justice Department at 1-833-591-0291, or submitting a report online at www.civilrights.justice.gov. Individuals also may report discrimination by contacting the Department of Housing and Urban Development at 1-800-669-9777, or by filing a complaint online.
Justice Department Files Disability Discrimination Lawsuit Against St. Louis, Missouri, Apartment ComplexRead the Press Release
The Justice Department announced the filing of a lawsuit against Missouri-based LJLD LLC and Westminster Properties LLC, the owners, developers and builders of a multifamily housing complex in St. Louis, Missouri. The lawsuit alleges that these defendants failed to design and construct housing units and related facilities at the Bridgewater Residences Apartments to make them accessible to persons with disabilities in compliance with the Fair Housing Act (FHA) and the Americans with Disabilities Act (ADA).
The lawsuit arose from a complaint by Metropolitan St. Louis Equal Housing and Opportunity Council (EHOC) filed with the Department of Housing and Urban Development (HUD). After HUD investigated the complaint, it determined that LJLD LLC and Westminster Properties LLC violated the FHA and issued a charge of discrimination. After EHOC chose to have the matter decided in federal court, HUD referred to the matter to the Justice Department.
“For more than three decades, federal law has required multifamily housing complexes to be designed and built with accessible features,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Department of Justice is committed to protecting the rights of people with disabilities to ensure that they have equal access to housing, including accessible parking, common areas and related facilities.”
“This lawsuit seeks changes in an apartment complex in which the visually impaired risk injury simply getting the mail,” said U.S. Attorney Sayler A. Fleming for the Eastern District of Missouri. “Wheelchair users may not be able to get into or use bathrooms, adjust their own thermostats, safely get to their patios or access the complex’s office, dog park and other amenities.”
“Builders and developers of multifamily housing complexes must adhere to the requirements of the Fair Housing Act to ensure that persons with disabilities have equal opportunity to live in these properties,” said Demetria McCain, HUD’s Principal Deputy Assistant Secretary for Fair Housing and Equal Opportunity. “HUD applauds today’s action and remains committed to working with the Justice Department to vigorously enforce our nation’s fair housing laws.”
The lawsuit, which was filed in the U.S. District Court for the Eastern District of Missouri, alleges that the Bridgewater Residences Apartments have significant accessibility barriers including excessively sloped pedestrian routes from apartment units to the public street and to site amenities (such as the dog park, mail center, dumpster, management/leasing office); barriers to accessible parking; inaccessible bathrooms; inaccessible door hardware; and insufficient maneuvering space at entrances to common use areas that make those entrances inaccessible to many people with disabilities.
The lawsuit seeks an order (1) requiring the defendants to bring the properties into compliance with the FHA and the ADA, (2) requiring the defendants to pay monetary damages to persons harmed by the lack of accessibility, as well as civil penalties to the United States to vindicate the public interest, and (3) prohibiting the defendants from designing or constructing future residential properties in a manner that discriminates against persons with disabilities. Bridgewater V LLC, the current owner of the apartment complex, also is named in the lawsuit as a necessary party to provide access to the property for the required retrofits.
Individuals who may have been affected by the lack of accessibility at these properties should call the Civil Rights Division’s Housing Discrimination Hotline at 1-833-591-0291, press 1 for English, press 4 for housing accessibility for persons with disabilities or the design and construction of accessible housing cases, then press 7 for United States v. LJLD (Bridgewater) to leave a message, or send an email to [email protected].
The FHA prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status. Among other things, it requires all multifamily housing constructed after March 13, 1991, to have basic accessibility features, including accessible routes without steps or steep slopes to all ground-floor units. Enacted in 1990, the ADA requires, among other things, that places of public accommodation – such as rental offices – at multifamily housing complexes designed and constructed for first occupancy after Jan. 26, 1993, be accessible to persons with disabilities. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt.
A complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Jefferson County man indicted on firearms charges involving “ghost guns”Read the Press Release
MARTINSBURG, WEST VIRGINIA – Brandon Michael Reckert, of Harpers Ferry, West Virginia, was indicted this month on firearms charges, United States Attorney William Ihlenfeld announced.
Reckert, 28, was indicted on one count of “Engaging in the Business Without a License,” two counts of “Possession of Firearm by Prohibited Person,” one count of “Transfer of Firearm in Violation of National Firearm Act,” and one count of “Possession of Unregistered Firearm.” Reckert, a person prohibited from having firearms because of a prior conviction, is accused of having and selling privately manufactured firearms, also known as “ghost guns,” without a license from March until September 2022 in Berkeley and Jefferson Counties, and elsewhere.
Reckert faces up to five years of incarceration and a fine of up to $10,000 for the business charge, faces up to 15 years of incarceration and a fine of up to $250,000 for each possession charge, and he faces up to 10 years and a fine of up to $250,000 for the transfer 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 Eleanor F. Hurney is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Berkeley County Sheriff’s Office, the Loudoun County (Virginia) Sheriff’s Office, and the West Virginia State Police investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Jackson Man Sentenced to 37 Months in Prison for Possession of a Firearm by Convicted FelonRead the Press Release
Jackson, Miss. – A Jackson man was sentenced to three years and one month in prison for being a 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, Alreco Hill, 33, was found in possession of a firearm by an officer of the Jackson Police Department on May 8, 2020, during a traffic stop. Hill had a pistol in the right front pocket of his pants. Hill has multiple prior felony convictions. As a convicted felon it is contrary to federal law for Hill to possess any firearm.
The Jackson Police Department and the FBI investigated the case.
Assistant U.S. Attorney Jessica S. Terrill prosecuted 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.