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Friday 23 September 2022
Statement from Assistant Attorney General Jonathan Kanter on the District Court’s Decision in U.S. v. U.S. Sugar and Imperial SugarRead the Press Release
Assistant Attorney General Jonathan Kanter issued the following statement regarding the District Court’s decision today in U.S. v. U.S. Sugar and Imperial Sugar.
"We are disappointed in the court’s decision not to block this merger, which would combine one of the largest sugar cane refiners with one of its primary competitors in the Southeastern United States and increase reliance on foreign imports. Further consolidation in the market for this important kitchen staple will have real-world consequences for millions of Americans. We are reviewing the opinion and will determine next steps shortly. We are, as always, grateful for the Antitrust Division staff’s tireless work protecting and promoting competition."
St. Louis County Man Sentenced to 10 Years in Prison for Armed RobberiesRead the Press Release
ST. LOUIS – U.S. District Judge Sarah E. Pitlyk on Friday sentenced a man from St. Louis County who robbed two stores and was shot while robbing a third to ten years in prison.
Malik Dorsey, 23, pleaded guilty at the start of Friday’s hearing to three robbery charges and one count of possession and brandishing of a firearm in furtherance of a crime of violence. He admitted two armed robberies and one attempted robbery.
On Dec. 5, 2020, he and a co-defendant, Darrion Gardner, robbed a T-Mobile store on Lackland Road in Overland. They forced an employee to the ground, stole cash from the cash registers and an employee and then stole phones from a storage area after forcing an employee at gunpoint to take them there.
Two days later, they robbed the Universal Accessories store on St. Charles Rock Road in Breckenridge Hills of cell phones.
Dorsey was in the process of robbing the Boost Mobile store at 7222 Manchester Road in Maplewood when he was shot by a store employee and wounded. He is now a paraplegic.
The crimes were caught on surveillance video and both Dorsey and Gardner were wearing GPS ankle monitors at the time.
Gardner, of St. Louis County, was sentenced September 13 to 14 years in prison. Both Dorsey and Gardner were also ordered to pay $16,183 in restitution.
The FBI and police departments in Overland Hills, Breckenridge Hills and Maplewood investigated this case.
St. Francis Woman Sentenced on Meth ChargesRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that a St. Francis, South Dakota, woman convicted of Conspiracy to Distribute Methamphetamine was sentenced on September 23, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Iverina Crow Eagle, 44, was sentenced to seven years and six months in federal prison, followed by four years of supervised release, a $1,000 fine, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Crow Eagle was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury in October of 2020. She pleaded guilty to the offense on June 2, 2022.
From January 2018 to February 2021, Crow Eagle was involved in a conspiracy with several other individuals to distribute methamphetamine on the Rosebud Sioux Indian Reservation. Over 500 grams of methamphetamine was distributed by Crow Eagle during the course of the conspiracy.
This case was investigated by Northern Plains Safe Trails Drug Enforcement Task Force and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Crow Eagle was immediately remanded to the custody of the U.S. Marshals Service.
South Dakota Women Indicted for Meth and Firearm ChargesRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that two South Dakota women have been indicted by a federal grand jury for Conspiracy to Distribute Methamphetamine, Possession with Intent to Distribute Methamphetamine, and Firearm charges.
Sarah Jahner Clifford, of Gettysburg, South Dakota, age 44, was indicted in September of 2022. She appeared before Judge Mark A. Moreno on September 21, 2022, and pleaded not guilty to the Indictment.
Tara Roberts, of Ridgeview, South Dakota, age 45, was indicted in September of 2022. She appeared before Judge Mark A. Moreno on September 19, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody, and/or a $10,000,000 fine, lifetime of supervised release, and $400 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that the two women were involved in a conspiracy to distribute over 500 grams of methamphetamine in and around central South Dakota. The Indictment further alleges that Jahner-Clifford, who is a prohibited person, was illegally in possession of two firearms, including a short-barrel shotgun.
The charges are merely an accusation and Jahner-Clifford and Roberts are presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force, the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bureau of Indian Affairs, and the South Dakota Highway Patrol. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Roberts was released on bond pending trial. Jahner-Clifford was remanded to the custody of the U.S. Marshals Service. A trial date has been sent for November 15, 2022.
South Carolina man convicted of COVID-19 Relief fraud in first Atlanta PPP trialRead the Press Release
ATLANTA – A federal jury in Atlanta convicted a South Carolina man of fraudulently obtaining a $300,000 forgivable Paycheck Protection Program (PPP) loan guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
“During the depths of the pandemic, Travis Crosby decided to steal federal relief funds meant to help struggling businesses,” said U.S. Attorney Ryan K. Buchanan. “Crosby has now been convicted of fraud in Atlanta’s first PPP fraud trial and will soon be sentenced for his theft.”
“Crosby’s personal greed affects every tax paying citizen in this country and took away from government funds intended to provide relief to small business and employees who desperately needed it during the pandemic,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “This conviction serves as a message that the FBI and our federal partners remain vigilant to make sure funds provided by programs like PPP are used as intended.”
“The Treasury Inspector General for Tax Administration will aggressively pursue those who attempt to defraud the Coronavirus Relief and Economic Security Act and its Paycheck Protection Program, which was created to assist legitimate business owners during the pandemic,” said J. Russell George, the Treasury Inspector General for Tax Administration. “We appreciate the efforts of our law enforcement partners and the US Attorney’s Office to ensure this criminal activity is held to account.”
“Conspiring to defraud SBA robs the nation of vital resources intended to support the nation’s small businesses,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “OIG remains committed to rooting out bad actors and protecting the integrity of SBA programs every day. I am continually grateful to the U.S. Attorney’s Office for its leadership and dedication to shining a light on darkness wherever it may be.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Travis Crosby conspired to submit a PPP loan application on behalf of Crosby’s company, Faithful Transport Services LLC (Faithful Transport). The loan application falsely inflated the number of employees and average monthly payroll for Faithful Transport, inducing a larger PPP loan than Crosby could legitimately obtain. Crosby and a co-conspirator also caused the submission of a forged tax document to support the false statements in the loan application. Crosby then engaged in a series of sham transactions with various individuals to make it appear that he was paying them payroll for work at Faithful Transport when, in reality, these individuals returned the vast majority of the funds to Crosby.
Crosby is the 11th defendant to be convicted as part of the Justice Department’s prosecution of a $3 million, Atlanta-based PPP fraud ring. Previously, 10 other members of the scheme were charged by the U.S. Attorney’s Office for the Northern District of Georgia and the DOJ Fraud Section. All other defendants pleaded guilty prior to trial. To date, authorities have recovered approximately $1.2 million of the stolen money.
Travis Crosby, 32, of Wellford, South Carolina, was convicted of conspiracy to commit bank fraud, bank fraud, making a false statement to a bank, and money laundering. He is scheduled to be sentenced on January 10, 2023.
Since the inception of the CARES Act, the Fraud Section has prosecuted over 150 defendants in more than 95 criminal cases and has seized over $75 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The FBI Atlanta Field Office; the SBA-OIG; and the TIGTA investigated the case.
Assistant U.S. Attorney Christopher J. Huber for the Northern District of Georgia, Trial Attorney Matthew Reilly of the Criminal Division’s Fraud Section are prosecuting the case. Special Assistant U.S. Attorney Diane D. Schulman for the Northern District of Georgia and Trial Attorney Michael P. McCarthy of the Criminal Division’s Fraud Section provided significant assistance.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Six Men Indicted for Orleans Parish Based Narcotics Trafficking ConspiracyRead the Press Release
NEW ORLEANS, LOUISIANA – Charles WADE, a/k/a “Poosie,” age 41, David Hester, a/k/a “Goon,” age 33, Brison Shelton, age 48, William Lang, age 44, Alfred Clay, age 58, and Saul Macedo-Rodriguez, age 36, were indicted Thursday, September 22, 2022, by a federal grand jury , for violations of the Federal Controlled Substances Act.
During the investigation, the federal Drug Enforcement Administration, seized over forty-one (41) kilograms of cocaine hydrochloride, ten (10) kilograms of fentanyl, and over four hundred thousand dollars ($400,000.00) in bulk cash.
According to court documents, WADE and LANG, were charged with conspiracy to distribute and possess with the intent to distribute five (5) kilograms more of cocaine hydrochloride, one (1) kilogram or more of a mixture and substance containing a detectable amount of heroin, and four hundred (400) grams or more of mixture and substance containing a detectable amount of fentanyl, in violation of Title 21, United States Code, Section 841(a)(1), 841 (b)(1)(A), and Section 846.
HESTER, CLAY, and MACEDO-RODRIGUEZ were charged with conspiracy to distribute and possess with the intent to distribute and possession with the intent to distribute five (5) kilograms or more of cocaine hydrochloride, in violation of Title 21, United States Code, Section 841(a)(1), 841(b)(1)(A), and Section 846.
SHELTON is charged with conspiracy to distribute and possess with the intent to distribute and possession with the intent to distribute five hundred (500) grams or more of cocaine hydrochloride, in violation of Title 21, United States Code, Section 841(a)(1), 841(b)(1)(B), and Section 846.
If convicted, WADE, HESTER, LANG, CLAY, and MACEDO-RODRIGUEZ face a mandatory minimum term of imprisonment of 10 years and a maximum of life imprisonment, a fine of up to $10,000,000.00, and at least 5 years of supervised release following any term of imprisonment. SHELTON faces a mandatory minimum term of imprisonment of 5 years and a maximum of 40 years imprisonment, a fine of up to $5,000,000.00, and at least 4 years of supervised release following any term of imprisonment. As to each count for which they were charged , the defendants also face a mandatory special assessment fee of $100.
U.S. Attorney Duane A. Evans reiterated that the indictment is merely a charging document and that the guilt of the defendants must be proven beyond a reasonable doubt.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This investigation was led by the Drug Enforcement Administration – New Orleans Field Division Office and assisted by the Federal Bureau of Investigation, United States Border Patrol, Gretna Major Crimes Task Force, Kenner Police Department, Jefferson Parish Sheriff’s Office, St. John’s Parish Sheriff’s Office, New Orleans Sheriff’s Office and New Orleans Police Department. The prosecution of this case is being handled by Assistant United States Attorney Christopher Usher.
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Sioux Falls Man Arrested for Role in Bank Fraud & Money Laundering ConspiraciesRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Commit Bank Fraud and Conspiracy to Launder Monetary Instruments.
Cameron Terrill Hardiman, age 42, was indicted in September of 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 21, 2022, and pleaded not guilty to the Superseding Indictment.
The maximum penalty upon conviction is up to up to 30 years in custody for Bank Fraud Conspiracy, 20 years in custody for Money Laundering Conspiracy, and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution and forfeiture may also be ordered.
According to the Superseding Indictment, in 2020 and continuing until April 2022, Hardiman and others conspired and agreed to knowingly conduct and attempt to conduct bank fraud and financial transactions affecting interstate commerce. Specifically, Hardiman and others knowingly conspired to defraud multiple financial institutions throughout the Sioux Falls area and elsewhere and to obtain funds by means of false or fraudulent pretenses, representations, and promises.
After obtaining funds through fraud, it is alleged that Hardiman and others engaged in depositing, transferring, wiring, and withdrawing the funds at financial institutions. It is alleged they knew the transactions were designed in whole or in part to conceal and disguise the nature, location, source, ownership, or control of the proceeds of the fraud scheme and that the funds involved represented the proceeds of unlawful activity.
The charges are merely accusations and Hardiman is presumed innocent until and unless proven guilty.
The investigation is being conducted by the following agencies: IRS Criminal Investigation; DHS – HSI; SFPD; SD Highway Patrol; and USPS.
Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Hardiman was remanded to the custody of the U.S. Marshals Service pending trial. A trial date of November 29, 2022, has been set.
Security Guard Arrested for Enticing 13-Year-Old to Repeatedly Produce Sexually Explicit MaterialRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces the arrest of Brett Avery Tipton (40, Rockledge) on a criminal complaint charging him with enticing a minor to produce child sexual abuse material. If convicted, Tipton faces a minimum mandatory penalty of 10 years, and up to life, in federal prison. Tipton made his initial appearance before U.S. Magistrate Judge Embry J. Kidd yesterday and was ordered detained pending trial.
According to the complaint, in 2020, Tipton began communicating with the child victim (who was then approximately 12 years old) through various social media platforms, including Snapchat, Telegram, PlayStation, and Facebook. At Tipton’s request and urging, the victim sent him numerous pictures of the victim engaging in sexually explicit conduct. In return, Tipton sent the victim gifts from Amazon, games, gaming equipment (such as headphones), and food through an online delivery service. The investigation revealed that Tipton engaged in this conduct with the victim for more than one year.
According to the complaint, the investigation also revealed that Tipton distributed child sex abuse material to online groups that trade such contraband. During an interview with the FBI, Tipton stated that he used his online accounts to interact with and solicit sexually explicit material from young teenage boys and men who ranged in age from 12 to 26 years old.
A complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Federal Bureau of Investigation (Orlando and Cincinnati), with assistance from the Licking County (Ohio) Sheriff’s Office, the Rockledge Police Department, and the United States Secret Service (Cincinnati). It will be prosecuted by Assistant United States Attorney Emily C. L. Chang.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Office and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Sacramento Man Sentenced to 15 Years in Prison for Possessing Methamphetamine for DistributionRead the Press Release
SACRAMENTO, Calif. — A Vern Saeteurn, 34, of Sacramento, was sentenced Thursday to 15 years in prison for possessing methamphetamine with the intent to distribute it, U.S. Attorney Phillip A. Talbert announced.
According to court documents, law enforcement agents searched Saeteurn’s home on Sept. 6, 2018. They found about 11 kilograms of methamphetamine, a garage lab for adulterating and packaging methamphetamine, and several guns — two of which had been stolen from law enforcement agencies. Four children were also present in the home. Saeteurn was purchasing around 10 kilograms of methamphetamine several times a week.
This case was the product of an investigation by the Federal Bureau of Investigation, Homeland Security Investigations, the Sacramento Sheriff’s Office, the Sacramento Police Department, the California Highway Patrol, and the California Department of Corrections & Rehabilitation. Assistant U.S. Attorney Michael Beckwith prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Rapid City Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Benjamen T. Flute, a/k/a Benjamin T. Flute, age 43, was indicted in September of 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 20, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Flute was convicted of Second Degree Rape in December of 2007. As a result of this conviction, he is required to register as a sex offender. It is alleged that between August 12, 2022, and August 25, 2022, Flute, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under State Law, and having traveled in interstate commerce, failed to properly register as a sex offender and update his registration.
The charge is merely an accusation and Flute is presumed innocent until and unless proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Flute was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Rapid City Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Roy Brushbreaker, III, age 28, was indicted in September of 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 20, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Brushbreaker was convicted of Abusive Sexual Contact in April 2019. As a result of this conviction, he is required to register as a sex offender. It is alleged that between July 20, 2022, and August 19, 2022, Brushbreaker a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender and update his registration.
The charge is merely an accusation and Brushbreaker is presumed innocent until and unless proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
The investigation is being conducted by the U.S. Marshals Service and the Rapid City Police Department. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Brushbreaker was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Pierre Man Indicted for Firearm ChargeRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Pierre, South Dakota, man has been indicted by a federal grand jury for Prohibited Person in Possession of a Firearm.
Cody Dewell, age 33, was indicted in July of 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 20, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 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 May 25, 2022, Dewell, being a convicted felon and an unlawful user of a controlled substance, knowingly possessed a firearm.
The charge is merely an accusation and Dewell is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force, the South Dakota Highway Patrol, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Dewell was released on bond pending trial. A trial date has not been set.
Philadelphia Man Charged with Drug Trafficking OffensesRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Demetri Carroll, age 27, of Philadelphia, was indicted yesterday by a federal grand jury on drug trafficking charges.
According to United States Attorney Gerard M. Karam, the indictment charges Carroll with one count of conspiracy to distribute controlled substances and nine counts of possession with intent to distribute controlled substances, including methamphetamine, fentanyl, cocaine base, and cocaine between October 2021 and August 2022, in Clinton and Lycoming Counties.
This case was investigated by the Lycoming County Narcotics Enforcement Unit, the Pennsylvania State Police and the Federal Bureau of Investigation. Assistant U.S. Attorney Alisan V. Martin is prosecuting the case.
This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The maximum penalty under federal law for the most significant offenses is 40 years’ imprisonment and a fine. A sentence for each of these offenses also includes a period of supervised release following imprisonment. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. Indictments are only allegations.
All persons charged by indictment are presumed to be innocent unless and until found guilty in court.
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Philadelphia Felon Pleads Guilty to Illegally Possessing a Firearm with an Extended Magazine While on Parole for RobberyRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Tyree Little, 22, of Philadelphia, PA, pleaded guilty earlier this week, just before trial was scheduled to begin today, to illegally possessing a firearm with an extended magazine.
The charge stems from an incident in July 2021, during a vehicle stop for a traffic violation, when Philadelphia Police Officers observed a firearm with an extended magazine sticking out from under the driver’s seat of the defendant’s car, where the defendant was seated. Little pleaded guilty to possessing that firearm, which he was not able to lawfully possess due to a prior felony conviction for robbery.
The defendant was on state parole for the robbery at the time, and he was also a participant in the Project Safe Neighborhoods (PSN) Call-In Program. The PSN Call-In Program is a violence prevention and re-entry initiative coordinated by the Pennsylvania Department of Corrections, Parole Field Services, and the U.S. Attorney’s Office for the Eastern District of Pennsylvania. The program, which is part of the Justice Department’s Project Safe Neighborhoods strategy, has been in operation since 2013 and is designed to reduce violent crime and recidivism of individuals returning from state incarceration to the 1st, 3rd, 12th, 16th, 18th, 19th, 22nd, 24th, 25th, 39th Police Districts in Philadelphia. Parolees attend a one-time meeting with law enforcement and community members imploring them refrain from violence and firearms possession. Law enforcement officials deliver a clear message of deterrence, warning parolees that if they continue to commit crime, they will be prosecuted to the fullest extent of the law. Following this meeting, parolees receive connections to resources to assist with their re-entry process into general society.
“Our Office is invested in the successful re-entry of previously convicted individuals to our communities for many reasons, chief among them is ensuring public safety,” said U.S. Attorney Romero. “Once their debt to society has been paid and their sentence served, previously convicted individuals often require extra support and services to become productive citizens, which is why the PSN Call-In Program exists. But participants are made aware that if they don’t adhere to the terms of the program including refraining from committing additional crimes, they will face serious federal charges as a result.”
“ATF is determined to make our streets safer by working with our local, state, and federal partners,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “We are committed to identifying and prosecuting armed criminals, especially repeat offenders, and remove them from our communities.”
“The Pennsylvania Department of Corrections and the Parole Field Services Department in particular sincerely appreciate the support and cooperation the U.S. Attorney’s Office has invested in this matter as well as in our ongoing partnership,” said Pennsylvania Department of Corrections Acting Secretary George Little. “Continued communication and collaboration between all levels of law enforcement is essential to building stronger, safer communities.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with assistance from the Philadelphia Police Department Highway Patrol, and is being prosecuted by AUSA Jeanine Linehan, Chief of the Violent Crimes Unit, and Assistant United States Attorney Katherine Shulman.
Pennsylvania Man Indicted for Assaulting a Reproductive Health Care ProviderRead the Press Release
A federal grand jury in Pennsylvania returned an indictment today charging a local man for assaulting a reproductive health care clinic escort in Philadelphia.
According to court documents, Mark Houck, 48, of Kintnersville, Pennsylvania, is alleged to have twice assaulted a man because he was a volunteer reproductive health clinic escort. The two-count indictment charges Houck with a violation of the Freedom of Access to Clinic Entrances (FACE) Act, which makes it a federal crime to use force with the intent to injure, intimidate, and interfere with anyone because that person is a provider of reproductive health care.
The charges stem from two separate incidents on Oct. 13, 2021, where Houck assaulted the victim, identified in the indictment as “B.L.,” because B.L. was a volunteer escort at the reproductive health care clinic.
If convicted of the offenses, Houck faces up to a maximum of 11 years in prison, three years of supervised release and fines of up to $350,000.
The FBI Philadelphia Field Office investigated the case. Trial Attorney Sanjay Patel of the Civil Rights Division and Assistant U.S. Attorney Anita Eve for the Eastern District of Pennsylvania are prosecuting the case.
An indictment is merely an allegation, and the defendant is presumed innocent unless proven guilty.
Omaha Man Sentenced for Methamphetamine ConspiracyRead the Press Release
Acting United States Attorney Steven Russell announced that German Reyes Jr., 25, of Omaha, Nebraska, was sentenced today in federal court in Omaha for conspiracy to distribute and possess with intent to distribute methamphetamine. United States District Judge Brian C. Buescher sentenced Reyes to imprisonment for a term of 188 months. There is no parole in the federal system. After his release from prison, he will begin a 5-year term of supervised release.
Between September and November 2020, German Reyes assisted Mexico-based sources of supply along with local co-conspirators to obtain and distribute methamphetamine. Beginning in September 2020, an undercover agent arranged multiple purchases of methamphetamine.
One such buy occurred on September 14, 2020, when the defendant, accompanied by a co-conspirator, sold a pound of methamphetamine to the undercover agent. Similarly, on November 9, 2020, a co-conspirator at Reyes’s direction sold the undercover agent a pound of methamphetamine.
The overall investigation resulted in the recovery of 1,587 grams of methamphetamine.
Co-defendant Abraham Alvarenga is pending sentencing on November 2, 2022.
This case was investigated by the Drug Enforcement Administration, Omaha Field Division, and the Omaha Police Department.
Oklahoma man sentenced to 25 years in prison for federal drug and firearms chargesRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that Caesar Nathanial James Crayton, 47, Oklahoma City, Oklahoma, was sentenced on Sept. 22 to 25 years in prison. On Feb. 16, a federal jury convicted Crayton on one count each of possession with intent to distribute five grams and more of methamphetamine, being a felon in possession of a firearm and ammunition, and carrying a firearm during and in relation to a drug trafficking crime.
On Aug. 16, 2020, Crayton approached a U.S. Border Patrol checkpoint on Interstate 10 west of Las Cruces, New Mexico. Crayton consented to a canine inspection of his vehicle, during which the canine alerted. During a hand search of the vehicle, agents located 53 grams of methamphetamine, a .45 caliber pistol, 537 rounds of ammunition, one 25-round ammunition magazine, one 13-round magazine, one 17-round magazine, $6,853 in U.S. currency and 10 soles in Peruvian currency.
At the time of the incident, Crayton previously had been convicted of multiple felonies. As a convicted felon, Crayton cannot legally possess firearms or ammunition.
Upon his release from prison, Crayton will be subject to eight years of supervised release.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case with assistance from U.S. Border Patrol. Assistant United States Attorneys Joni Autrey Stahl and Renee L. Camacho prosecuted the case.
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Ocean Beach Drug Dealer Sentenced to 12.5 Years for His Role in Fatal OverdoseRead the Press Release
Assistant U. S. Attorney Adam Gordon (619) 546-6720
NEWS RELEASE SUMMARY—September 23, 2022
SAN DIEGO - Anthony Souza of Ocean Beach was sentenced in federal court today to 150 months for conspiracy to distribute 400 grams and more of fentanyl. Souza’s distribution of fentanyl resulted in the fatal overdose of 28-year-old Chad Stevens, also of Ocean Beach.
According to his plea agreement, Souza admitted that he provided four counterfeit M-30 pills laced with fentanyl, commonly referred to as “blues,” to Stevens, on November 21, 2019. These pills caused Stevens to have a near-fatal overdose. Then approximately six months later, Souza again sold counterfeit “blues” to Stevens – this time with fatal results.
According to admissions in his plea agreement, Souza continued to sell “blues” despite the Stevens’ death, and on June 24, 2020, law enforcement conducted a search warrant of Souza’s residence. During the search, law enforcement seized $2,460 in U.S. currency, 115 grams of cocaine, and 183 counterfeit “blues,” and arrested Souza’s co-defendant, Alyson Marie Vaccacio. Vaccacio pleaded guilty to conspiracy to distribute 40 grams and more of fentanyl and 500 grams and more of cocaine, and her sentencing date is December 5, 2022.
Before pronouncing the sentence, U.S. District Judge Gonzalo P. Curiel said: “Drugs are often described as a poison, and, as we all know, poison kills, and that's what drugs do. They kill dreams, aspirations, goals, humanity, empathy. Drugs kill the ability to experience true joy, to make sound decisions. Drugs break up marriages. They break up families. And in this case, you have what can only be described as heartbreaking circumstances, that parents have had to bury not just one but two children as a result of fentanyl. And sometimes drugs kill people instantly. Most of the time, we have seen cases where drugs kill you a little bit at a time, where they destroy everything good about your life, eventually shorten your life, either by way of your health or resulting in violence. But in this instance, we have the death of Chad Stevens that occurred, essentially, in an instant. And so, ultimately, every drug dealer is responsible for death, either a slow-motion death, over the course of time, or the instant death of Chad Stevens.”
He later added: “The word needs to get out. The message needs to be clear that individuals who partake in the distribution of drugs -- and, particularly, this deadly drug, fentanyl … will receive a sentence in excess of 10 years. There has to be that message that is delivered loud and clear.”
“The days of recreational drug use need to be over,” said U.S. Attorney Randy Grossman. “We know from the DEA’s analysis of seized pills that more than 40 percent of counterfeit pills contain a deadly amount of fentanyl. We can’t say it enough. With fentanyl there is no such thing as a ‘safe’ recreational drug.” Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.
“Removing fake pills from our communities and those who distribute them are our top priorities,” said DEA Special Agent in Charge Shelly S. Howe. “San Diego is a safer place with Mr. Souza behind bars. We will continue to pursue those who are selling fake pills and contributing to the unprecedented number of overdoses and poisonings.”
“As law enforcement officers, there is nothing more painful than investigating a death that could have been prevented. While we all can do our part in removing these illegal and lethal drugs from the streets, the public can only benefit if we also do our part in educating to prevent additional overdose deaths,” said Chad Plantz, special agent in charge for HSI San Diego. “I am extremely proud of our HSI agents, working with our law enforcement partners, for the results of this investigation that will undoubtably make our neighborhoods safer.”
Special Agents and Task Force Officers with the Drug Enforcement Administration’s Overdose Response Team (formerly known as Team 10) led the investigation into Steven’s death. This case is the result of ongoing efforts by the U.S. Attorney’s Office, the Drug Enforcement Administration, Homeland Security Investigations, the Federal Bureau of Investigation, the San Diego Police Department, and the California Department of Health Care Services to investigate and prosecute the distribution of dangerous illegal drugs—fentanyl in particular—that result in overdose deaths. The Drug Enforcement Administration created the Overdose Response Team as a response to the increase in overdose deaths in San Diego County.
DEFENDANT Case Number 21-CR-1537 GPC
Anthony Souza Age: 46 San Diego, CA
Alyson Marie Vaccacio Age: 32 San Diego, CA
SUMMARY OF CHARGES
Conspiracy to Distribute 400 Grams and More of Fentanyl – Title 21, United States Code, Sections 841(a) and (b)(1)(C)
Maximum Penalty: Life in prison, with mandatory minimum of 10 years
Conspiracy to Distribute 40 Grams and More of Fentanyl – Title 21, United States Code, Sections 841(a) and (b)(1)(C)
Maximum Penalty: Forty years in prison, with five-year mandatory minimum.
AGENCY
Drug Enforcement Administration
Homeland Security Investigations
Federal Bureau of Investigation
San Diego Police Department
California Department of Health Care Services
Norwalk Drug Distributor Sentenced to 3 Years in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that KOUDRIS POUNDER, 38, formerly of Norwalk, was sentenced yesterday by U.S. District Judge Stefan R. Underhill in Bridgeport to 36 months of imprisonment, followed by three years of supervised release, for distributing controlled substances.
According to court documents and statements made in court, in the fall of 2019, Norwalk Police made controlled purchases of cocaine and MDMA (“ecstasy”) from Pounder. On November 19, 2020, a court-authorized search of Pounder’s residence revealed distribution quantities of cocaine, crack cocaine, methamphetamine, phencyclidine (PCP) and marijuana; items used to process and package drugs for street sale; and firearm parts.
Pounder was federally arrested on January 30, 2020. On February 24, 2022, he pleaded guilty to possession with intent to distribute controlled substances.
This is Pounder’s second federal conviction.
Pounder, who is released on a $50,000 bond and residing in the Bronx, New York, is required to report to prison on November 16.
This investigation was conducted by the DEA’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force and the Norwalk Police Department. The HIDTA Task Force includes personnel from the DEA Bridgeport Resident Office, the Connecticut State Police, and the Bridgeport, Norwalk, Stamford, Stratford, Milford and Danbury Police Departments. The case was prosecuted by Assistant U.S. Attorney Katherine E. Boyles.
Niagara Falls Man Going to Prison for 17 Years on Multiple Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, NY--U.S. Attorney Trini E. Ross announced today that Jeffrey Richards, 32, of Niagara Falls, NY, who was convicted of possession with intent to distribute acetyl fentanyl, possession of a firearm in furtherance of drug trafficking, and possession of a stolen firearm, was sentenced to serve 204 months in prison by U.S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that on December 14, 2018, a search warrant was executed at Richards’ residence on Packard Court in Niagara Falls. During the search, investigators recovered, among other items, amounts of acetyl fentanyl, fentanyl, cocaine, marijuana, alprazolam, approximately 10 firearms, various rounds of ammunition, drug trafficking paraphernalia, an improvised destructive device, and various items used in the manufacturing of destructive devices.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division, the Niagara Falls Police Department, under the direction of Superintendent John Faso, and the Niagara County Sheriff's Department, under the direction of Sheriff Michael Filicetti.
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New York Man Sentenced to 40 Months’ Imprisonment for Firearms OffenseRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Tyshawn Mack, age 30, of Brooklyn, New York, was sentenced yesterday to 40 months in prison by United States District Court Judge Robert D. Mariani for illegally possessing two firearms.
According to United States Attorney Gerard M. Karam, on January 18, 2019, Mack possessed a .380 caliber Ruger LCP pistol and a .32 caliber River Johnson Arms revolver, while prohibited by law to possess firearms because of a previous felony conviction. Both firearms were loaded at the time of Mack’s possession of them.
The case was investigated by the Federal Bureau of Investigation in Scranton and the Stroud Area Regional Police Department. Assistant U.S. Attorney Michelle Olshefski prosecuted the case.
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.
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New Orleans Woman Sentenced for Conspiracy to Distribute DrugsRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that on September 22, 2022, WYVONNE TYSON, age 35, of New Orleans, was sentenced by United States District Judge Eldon E. Fallon after previously pleading guilty to a drug offense.
Specifically, TYSON pled guilty to one count of conspiracy to distribute and possess with the intent to distribute five kilograms or more of cocaine hydrochloride, 100 grams or more of heroin, and a quantity of cocaine base, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(A), 841(b)(1)(B), 841(b)(1)(C) and 846.
According to court records, TYSON and others conspired to distribute heroin, cocaine, and cocaine base in the New Orleans metropolitan area and elsewhere. Moreover, TYSON admitted to transporting between 50 and 150 kilograms of cocaine from Texas to New Orleans on behalf of a drug trafficking organization.
In total, Judge Fallon sentenced TYSON to 70 months imprisonment, 3 years of supervised release, and a $100 mandatory special assessment fee.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (“OCDETF”). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration and Federal Bureau of Investigation in investigating this matter. Assistant United States Attorneys Elizabeth Privitera and Jonathan L. Shih are in charge of the prosecution.
New Orleans Resident Sentenced to Probation for Laundering Drug MoneyRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced today that Judge Susie Morgan sentenced ANNICE FALKINS, age 35, of New Orleans, Louisiana, to (5) five years of probation, which includes (1) one year of home detention, and a $100 mandatory special assessment fee for laundering money that was derived from the unlawful distribution of controlled substances, in violation of Title 18, United States Code, Section 1957.
According to court records, on April 6, 2016, FALKINS purchased a home in New Orleans East with 14 cashier’s checks that she acquired with funds she knew were earned from the illegal sale of heroin. Each of the cashier’s checks was in an amount less than $10,000, totaling approximately $118,226.51.
On December 27, 2017, FBI Special Agents from the New Orleans Gang Task Force received information regarding the pending delivery of approximately three kilograms of heroin that FALKINS’ codefendant and romantic partner, Arthur Johnson, was purchasing from his Chicago-based supplier. Later that day, surveillance agents observed meetings between Johnson and the man delivering the heroin at a Holiday Inn Hotel in New Orleans. During these meetings, Johnson paid approximately $187,000 for the heroin. The next day, FBI agents searched the home in New Orleans East that Johnson shared with FALKINS. During this search, agents seized 1.3 kilograms of heroin, over $11,000 in cash, numerous items of jewelry, six cell phones, a money counter, and a kilogram press used to package heroin.
FALKINS and Johnson pled guilty on August 24, 2021. On May 19, 2022, Judge Morgan sentenced Johnson to 262 months for conspiring to distribute heroin.
Pursuant to her plea agreement, FALKINS agreed to forfeit a Mercedes Benz car and a residential property in Davenport, Florida, both of which were purchased with proceeds from the illicit sale of heroin.
U.S. Attorney Evans praised the work of the FBI in investigating this matter. Assistant United States Attorney Brandon Long is in charge of the prosecution.
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New Orleans Man Found Guilty of Drug and Weapons ViolationsRead the Press Release
NEW ORLEANS, LA – United States Attorney Duane A. Evans announced today that DERRICK ESTES, age 42, of New Orleans, was found guilty as charged on September 21, 2022 after a two-day jury trial before U.S. District Judge Jay C. Zainey.
The jury found ESTES guilty as charged as to all four counts in the superseding indictment. The superseding indictment charged ESTES in Count 1 with possession with intent to distribute a quantity of fentanyl and cocaine. Count 2 charged ESTES with possessing a firearm in furtherance of a drug trafficking offense and Count 3 charged ESTES with being a felon in possession of a firearm. Finally, Count 4 charged ESTES with possession with the intent to distribute cocaine and over 40 grams of fentanyl.
The FBI’s New Orleans Violent Crime Task Force worked in conjunction with NOPD during the end of 2020 and the beginning of 2021 in the Algiers neighborhood of New Orleans due to a significant increase in shootings and homicides. On January 17, 2021, the New Orleans Police Department (NOPD) responded to the shooting of ESTES in the 1400 block of Teche Street in Algiers. ESTES did not notify police or EMS of the shooting and was transported to the hospital by his girlfriend. The hospital notified police of the incident and the approximate location of the shooting. During that investigation police located surveillance video footage of the shooting and observed ESTES exit his vehicle after the shooting and remove several items from his vehicle to the residence located at 1412 Teche Street, a residence linked to the ESTES family. Investigators elected to obtain a search warrant and executed the search warrant on the residence. NOPD located several items linked to ESTES, including a significant amount of narcotics, specifically cocaine and fentanyl, drug selling paraphernalia, and three firearms, which included an AK47 rifle. Investigators had observed ESTES possessing a very similar AK47 rifle on a Real Time Crime Camera following the shooting of his brother, Joe Estes, at a residence on Nunez Street in Algiers approximately one month prior. An arrest warrant was issued for ESTES, and he was subsequently arrested on February 1, 2021, at another residence in Algiers. Following ESTES’ arrest, NOPD conducted a search of that residence and the vehicle he was seen utilizing. That search resulted in the recovery additional narcotics, specifically cocaine and over 40 grams of fentanyl, drug selling paraphernalia, and approximately $2800.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. It is being prosecuted by Assistant United States Attorneys Inga Petrovich and Mike Trummel of the U.S. Attorney’s Office Violent Crime Unit.
Mississippi Man Charged with Federal Hate Crime for Cross BurningRead the Press Release
The Justice Department announced that Axel C. Cox, 23, has been charged with hate crime and arson violations for burning a cross in his front yard to threaten, interfere with and intimidate a Black family in Gulfport, Mississippi.
According to court documents, Cox is charged with one count of criminal interference with the right to fair housing and one count of using fire to commit a federal felony. The indictment alleges that on Dec. 3, 2020, Cox threatened, intimidated and interfered with a Black family’s enjoyment of their housing rights. According to the indictment, Cox burned a cross in his front yard, and used threatening and racially derogatory remarks toward his Black neighbors. Cox allegedly chose to burn the cross because of the victims’ race.
If convicted, Cox faces up to 10 years in prison for interfering with the victims’ housing rights and a mandatory minimum of 10 years in prison, consecutive to any other sentence, for using fire to commit a federal felony. Cox also faces a fine of up to $250,000 with respect to each charge.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Darren J. LaMarca for the Southern District of Mississippi and Special Agent in Charge Jermicha Fomby for the FBI Jackson Field Office made the announcement.
Assistant U.S. Attorney Andrea Cabell Jones for the Southern District of Mississippi and Trial Attorney Noah Coakley II of the Justice Department’s Civil Rights Division are prosecuting the case.
For more information and resources on the department’s efforts to combat hate crimes, visit www.justice.gov/hatecrimes.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Mississippi Man Charged with Federal Hate Crime for Cross BurningRead the Press Release
Gulfport, Miss. – The Justice Department announced that Axel C. Cox, 23, has been charged with hate crime and arson violations for burning a cross in his front yard to threaten, interfere with and intimidate a Black family in Gulfport, Mississippi.
According to court documents, Cox is charged with one count of criminal interference with the right to fair housing and one count of using fire to commit a federal felony. The indictment alleges that on Dec. 3, 2020, Cox threatened, intimidated and interfered with a Black family’s enjoyment of their housing rights. According to the indictment, Cox burned a cross in his front yard, and used threatening and racially derogatory remarks toward his Black neighbors. Cox allegedly chose to burn the cross because of the victims’ race.
If convicted, Cox faces up to 10 years in prison for interfering with the victims’ housing rights and a mandatory minimum of 10 years in prison, consecutive to any other sentence, for using fire to commit a federal felony. Cox also faces a fine of up to $250,000 with respect to each charge.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Darren J. LaMarca for the Southern District of Mississippi and Special Agent in Charge Jermicha Fomby for the FBI Jackson Field Office made the announcement.
Assistant U.S. Attorney Andrea Cabell Jones for the Southern District of Mississippi and Trial Attorney Noah Coakley II of the Justice Department’s Civil Rights Division are prosecuting the case.
For more information and resources on the department’s efforts to combat hate crimes, visit www.justice.gov/hatecrimes.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Mission Man Sentenced on Cocaine and Firearm ChargesRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that a Mission, South Dakota man convicted of Conspiracy to Distribute Cocaine, Prohibited Person in Possession of a Firearm, and Failure to Appear was sentenced on September 23, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Blade Ryan Marshall, 25, was sentenced to 10 years and 10 months in federal prison, followed by three years of supervised release, a $1,000 fine, and ordered to pay a $300 special assessment to the Federal Crime Victims Fund.
Marshall was indicted for Conspiracy to Distribute a Controlled Substance and Prohibited Person in Possession of a Firearm by a federal grand jury in October of 2020. Marshall was released on bond and then failed to appear for his jury trial in January of 2022. Marshall was indicted for Failure to Appear by a federal grand jury in February 2022. He pleaded guilty to all the offenses on June 21, 2022.
From January 2017 to March 2018, Marshall was involved in a conspiracy with at least seven other individuals to distribute cocaine, marijuana, and other drugs Marshall received in Colorado to individuals on the Rosebud Sioux Indian Reservation. As part of that conspiracy Marshall possessed firearms. Being a drug user, Marshall was prohibited from possessing firearms.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by Northern Plains Safe Trails Drug Enforcement Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Marshall was immediately remanded to the custody of the U.S. Marshals Service.
Mission Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Frank White Thunder, age 35, was indicted in September of 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 20, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
White Thunder was convicted of Abusive Sexual Contact in April 2008. As a result of this conviction, he is required to register as a sex offender. It is alleged that between April 12, 2022, and August 13, 2022, White Thunder, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender and update his registration.
The charge is merely an accusation and White Thunder is presumed innocent until and unless proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
The investigation is being conducted by the U.S. Marshals Service and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
White Thunder was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Mecklenburg County Man Sentenced in Middle District for Drug Trafficking and Firearms OffensesRead the Press Release
GREENSBORO – A Mecklenburg County man was sentenced today in Greensboro to 228 months for drug trafficking and firearm offenses that occurred in Cabarrus County, within the Middle District of North Carolina.
According to court documents, Montwon Lashawn Moss, 45, and his co-defendant Brittany Autumn Sandefur were arrested on March 12, 2021, after a cooperator ordered an ounce-and-a-half of methamphetamine from Sandefur and her supplier Moss. They agreed to meet at a location in Concord to conduct the sale. Moss drove Sandefur to the deal and when they arrived, they were arrested by officers with the Concord Police Department.
Upon searching Moss’s vehicle, officers located a loaded .40 caliber Smith & Wesson pistol on the floorboard and bags containing suspected methamphetamine weighing more than 110 grams. The firearm was later determined to have been reported stolen. Additional bags containing smaller amounts of suspected cocaine hydrochloride, MDMA, cocaine base, marihuana, alprazolam, and trazadone were also located in the vehicle. Later forensic testing of the suspected methamphetamine confirmed that Moss possessed at least 50 grams of methamphetamine.
Following his arrest, Moss admitted he knew he was a felon. As a felon, he was prohibited from possessing a firearm. Moss was previously convicted in March 2008 of the federal felony offenses possession with intent to distribute cocaine base and carrying a firearm during and in relation to a drug trafficking crime. He was also previously convicted in August 1994 of the state felony second degree murder, in the Superior Court of Mecklenburg County, North Carolina.
Moss pled guilty on June 8, 2022 in federal court to one count of possession with intent to distribute 50 grams or more of methamphetamine and one count of felon in possession of a firearm based on his March 12, 2021 conduct. Accordingly, Moss was sentenced today to 228 months of imprisonment, ten years of supervised release, and $200 in special assessments. Sandefur is set for sentencing in October, 2022.
U.S. Attorney Sandra Hairston made the announcement, and the case was prosecuted by Assistant United States Attorney Craig Principe. The Concord Police Department, N.C. State Bureau of Investigation, and the federal Bureau of Alcohol, Tobacco, Firearms, and Explosives assisted with the investigation.
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Man Admits to Participating in an Elder Fraud “Grandparent” Scam and a Covid-19 Cares Act Fraud Scheme Resulting in a Combined Loss of More Than $3 MillionRead the Press Release
Baltimore, Maryland – Medard Ulysse, age 38, of Miami, Florida, pleaded guilty today to wire fraud and conspiracy to commit mail fraud in relation to multiple fraud schemes, including an elder “grandparent” scheme and a COVID-19 CARES Act Fraud scheme.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Acting Special Agent in Charge Troy W. Springer, of the Washington Regional Office, U.S. Department of Labor, Office of Inspector General.
“Ulysee’s crimes are truly outrageous. Not only did he facilitate the deception and financial destruction of caring elderly victims by taking advantage of their love for their grandchildren, but he also used the identities of multiple victims to live large on federal CARES Act funding intended to ease financial hardships during a national crisis,” said U.S. Attorney for the District of Maryland, Erek L. Barron. “I hope this conviction helps inform our elderly neighbors and their caretakers of the common grandparent scam. Remember- don’t panic, take the time to verify.”
According to his guilty plea, from January 2018 to November 2019, Ulysse and others executed grandparent scams in which they persuaded elderly victims to send thousands of dollars in cash by posing as a police officer, lawyer, or other person in law enforcement and convincing victims that their grandchild needed money for bail or legal fees. If the victims complied, conspiracy members asked for more cash claiming that additional funds were needed for legal expenses, fines, or damages. Conspirators also pretended to be the troubled relative on these phone calls to convince the elderly victims to send cash. Further, during the calls, conspirators directed the victims to send cash to particular addresses. To conceal the scheme, the conspirators told the victims that a gag order had been placed on the case or that the situation was embarrassing for the grandchild, and that the victim should not share the information with others.
For example, in March 2019, a conspiracy member (co-conspirator 1) called Victim 1, an 83-year-old Saint Charles, Illinois woman and posed as her grandson. During the call, co-conspirator 1 convinced the victim that he had been in an accident and was in jail. Co-conspirator 1 then stated that Victim 1 needed to send money to an address in Lancaster, Pennsylvania to pay for purported damages. Out of concern, Victim 1 sent a package containing $20,000 in cash to the Lancaster address as instructed.
Ulysse admitted that he distributed and directed co-conspirators to distribute cash payments to other members for their participation in the scheme. As a result of the execution of the elder fraud scheme, Ulysse and his co-conspirators convinced at least 83 different victims to send a total of at least $2,420,280. Ulysse’s criminal actions resulted in the substantial financial hardship to at least five of the victims.
From April 2020 to November 2020, Ulysse conducted a separate unemployment benefit scheme to fraudulently obtain unemployment funds, including Federal Pandemic Unemployment Compensation and Pandemic Unemployment Assistance established under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). As part of the scheme to defraud, Ulysse and his conspirators used the identities of numerous victims to submit fraudulent unemployment claims to multiple state workforce agencies, including the Maryland Department of Labor and the California Employment Development Department. Once conspiracy members obtained the funds on state issued debit cards, they used the funds for their personal benefit.
As stated in his guilty plea, in November 2020, Ulysse was stopped in Valdosta, Georgia by Lowndes County Sheriff’s (“LCSO”). LCSO sheriffs executed a search Ulysse’s vehicle and found debit cards in the names of three identity theft victims as well as 25 other debit cards in names other than Ulysse’s name.
In total, between April 2020 and November 2020, Ulysse and others submitted at least 143 fraudulent applications in the names of identity theft victims and obtained approximately $618,767 in fraudulent funds.
Ulysse and the government have agreed that, if the Court accepts the plea agreement, Ulysse will be sentenced to a minimum of 48 months in federal prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for December 19 2023 at 11 a.m.
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.
United States Attorney Erek L. Barron commended the FBI, DOL-OIG, for their work in the investigation and thanked the Lowndes County Sheriff’s Department for their assistance. Mr. Barron thanked Assistant U.S. Attorneys Sean R. Delaney and Christine Goo, who are prosecuting the case.
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-md and https://www.justice.gov/usao-md/elder-justice-initiative.
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Louisiana Man Pleads Guilty to Firearms OffenseRead the Press Release
Gulfport, Mississippi – A Louisiana man pled guilty to being a felon in possession of a firearm, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Brad Byerley of the Drug Enforcement Administration.
Cedric Vontrell Franklin, 39, pled guilty in U.S. District Court in Gulfport.
According to court documents and information presented to the Court, on May 10, 2022, in Gulfport, Mississippi, law enforcement officers conducted a traffic stop on a vehicle driven by Franklin. Officers searched Franklin’s vehicle and recovered a loaded 40 caliber handgun. A search of Franklin’s criminal history revealed he has multiple felony drug convictions.
Franklin will be sentenced on December 19, 2022. He faces a maximum sentence of 10 years in prison. However, if the Court determines he is an Armed Career Offender, he faces a minimum of 15 years imprisonment and a maximum of life. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The DEA and the Mississippi Bureau of Narcotics investigated this case with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Gulfport Police Department
Assistant U.S. Attorney Jonathan Buckner is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Lincoln Woman Sentenced to 15 Years for Conspiracy to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Steven Russell announced that Katrina L. Coffman, 36, of Lincoln, Nebraska, was sentenced today in federal court in Lincoln. United States District Judge John M. Gerrard sentenced Coffman to 180 months in prison for conspiracy to distribute 500 grams of methamphetamine mixture, with a prior serious felony drug conviction. Due to a prior conviction for conspiracy to distribute 500 grams or more of methamphetamine, Coffman faced a mandatory minimum sentence of 15 years. After serving her sentence, Coffman will be placed on supervised release for 10 years. There is no parole in the federal system.
Information provided to law enforcement indicated that Coffman was involved in the distribution of at least three kilograms of methamphetamine mixture in the Lincoln area between January 2017 and February 2021. Law enforcement further determined that at least two ounces of methamphetamine seized from a vehicle during a traffic stop in February 2021 was intended to be provided to Coffman.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force.
Leader of Multi-State Drug Trafficking Organization Pleads Guilty to Drug and Gun ChargesRead the Press Release
PITTSBURGH – An Ohio resident pleaded guilty in federal court to violating federal narcotics laws, United States Attorney Cindy K. Chung announced today.
Bruce McKnight, 55, of Columbus, Ohio, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine from March of 2019 through September of 2020 and one count of conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl from March of 2020 through September of 2020 before United States District Judge J. Nicholas Ranjan. In addition, McKnight accepted responsibility for possessing a firearm in conjunction with his drug trafficking. McKnight is the lead Defendant of 13 defendants charged in the Indictment returned in this case.
In connection with the guilty plea, the court was advised that the Drug Enforcement Administration began investigating a cocaine and fentanyl trafficking organization that operated throughout the United States, including Florida, Ohio, Pennsylvania, and Puerto Rico. Beginning in December of 2019 and continuing through August of 2020, the DEA received authorization to conduct a Title III wiretap investigation into the organization. McKnight, as the leader of this multistate drug trafficking organization, was intercepted orchestrating and directing the movement of cocaine from various states into the Western District of Pennsylvania for distribution. McKnight was also intercepted communicating about acquiring fentanyl, distributing fentanyl, and cutting fentanyl to increase profits. In addition to the intercepted communications, agents seized cocaine, heroin, fentanyl, methamphetamine, ecstasy, marijuana, firearms, and bulk United States Currency from members of the organization, including McKnight.
Judge Ranjan scheduled sentencing for Feb. 23, 2023. The law provides for a total sentence of not less than 15 years to a maximum of life imprisonment, a fine not to exceed $20,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. McKnight remains in custody pending sentencing.
Assistant United States Attorney Mark V. Gurzo is prosecuting this case on behalf of the
government.The DEA in Pittsburgh, PA; the DEA, Columbus, OH; the DEA, Harrisburg, PA; Homeland Security Investigations (HSI), Pittsburgh, PA; HSI, Orlando, FL; Internal Revenue Service-Criminal Investigations; United States Postal Service, Columbus, Ohio; Pennsylvania Office of Attorney General; Lawrence County Drug Task Force – Special Investigations Unit; and New Castle Police Department conducted the investigation leading to the prosecution of McKnight.
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.
Las Vegas Man Sentenced to 15 Years in Prison for Trafficking MethamphetamineRead the Press Release
LAS VEGAS – A Las Vegas resident was sentenced yesterday by U.S. District Judge Andrew P. Gordon to 15 years in prison followed by five years of supervised release for conspiracy to distribute methamphetamine.
According to court documents and admissions made in court, on May 14, 2018, Elias Terrazas-Esquer (27) and a co-conspirator sold one pound of methamphetamine for $2,650. Terrazas-Esquer and the co-conspirator then agreed to sell an additional 20 pounds of methamphetamine the next day. On May 15, law enforcement arrested Terrazas-Esquer and the co-conspirator who were waiting in a parked car with 20 pounds of methamphetamine. Both were armed with guns.
U.S. Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.
This case was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States, using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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Kenosha Man Pleads Guilty to Injuring Police Officer During August 2020 Civil DisorderRead the Press Release
United States Attorney Gregory J. Haanstad of the Eastern District of Wisconsin announced that on September 23, 2022, Ashton Howard (age: 29) pleaded guilty to obstructing a law enforcement officer while that officer was engaged in his official duties during a civil disorder, in violation of Title 18, United States Code, Section 231(a)(3).
According to a written plea agreement, following the shooting of Jacob Blake on August 23, 2020, Ashton Howard was part of a crowd that gathered near the location of the shooting. Some members of the crowd became violent, and a police vehicle was damaged. As Kenosha Police Officers attempted to secure and move the damaged vehicle, Howard threw a brick at one of the officers. The brick hit the officer in the head, knocking him unconscious. The officer subsequently was transported to the hospital.
Sentencing is set for January 5, 2023 before Chief U.S. District Judge Pamela Pepper in courtroom #222 at 1:30 pm. At sentencing, Howard faces a maximum of five years in prison and a fine of up to $250,000. He also faces a term of supervised release after completing any period of imprisonment.
The Federal Bureau of Investigation and the Kenosha Police Department investigated the case. The case is being prosecuted by Assistant U.S. Attorneys Benjamin Proctor and John Scully.
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For Additional Information Contact:
Public Information Officer Kenneth Gales 414-297-1700
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Jury Convicts Fairfax County Serial Armed RobberRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted an Alexandria man yesterday on charges stemming from a string of armed gas station and convenience store robberies in the Herndon area of Fairfax County.
According to court records and evidence presented at trial, Rashawn Perkins, 28, wore a ski mask and brandished a firearm while committing four robberies in five weeks. The evidence established that Perkins robbed a 7-Eleven on December 30, 2021 and a Sunoco on January 19, 2022. The evidence further proved that on February 5, 2022, Perkins returned to both locations and robbed them at gunpoint again. Body-worn camera footage showed that when detectives with the Fairfax County Police Department’s Major Crimes Bureau executed a search warrant at Perkins’ residence, Perkins – who had previously been convicted of three felony offenses – threw a firearm out of his bedroom window. Evidence at the trial established that this was the same firearm Perkins used to commit several of the robberies.
Perkins faces a mandatory minimum of 28 years in prison and a maximum of life imprisonment when sentenced on January 12, 2023. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division; and Kevin Davis, Fairfax County Chief of Police, made the announcement after U.S. District Judge Michael S. Nachmanoff accepted the verdict.
Assistant U.S. Attorneys John C. Blanchard and Nicholas J. Patterson are prosecuting the case.
This matter was investigated by the FBI Washington Field Office’s Safe Streets Violent Crime Task Force, which is composed of Special Agents and detectives from law enforcement agencies within Northern Virginia and the District of Columbia. The task force concentrates on investigating violent crimes and criminal threats within the Capital Region.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:22-cr-114.
Jefferson Parish Man Indicted for Gun and Drug Trafficking OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – LANCE STEVENS, age 26, a resident of Gretna, Louisiana, was charged on September 22, 2022 in a six-count indictment for violations of the Federal Gun Control Act and the Federal Controlled Substances Act.
STEVENS is charged in Count 1 with possession with intent to distribute marijuana and tramadol, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(D), and 841(b)(1)(E). In Count 2, STEVENS is charged with possession of a firearm in furtherance of that drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A). In Count 3, STEVENS is charged with possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g)(1).
STEVENS is charged in Count 4 with possession with intent to distribute tapentadol, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C). In Count 5, STEVENS is charged with possession of a firearm in furtherance of that drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A). In Count 6, STEVENS is charged with possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g)(1).
As to Count 1, STEVENS faces a maximum sentence of 5 years imprisonment, up to a $250,000 fine, at least two years of supervised release for trafficking marijuana and at least one year of supervised release for trafficking tramadol, and a mandatory special assessment fee of $100. As to Count 4, STEVENS faces a maximum sentence of 20 years imprisonment, up to a $1,000,000 fine, at least three years of supervised release, and a mandatory special assessment fee of $100. As to Counts 2 and 5, STEVENS faces a mandatory minimum sentence of 5 years up to life imprisonment on each count, to run consecutively to all other sentences, up to a $250,000 fine, up to 5 years of supervised release, and a mandatory special assessment fee of $100. As to Counts 3 and 6, STEVENS faces a maximum term of imprisonment of 10 years as to each count, up to a $250,000 fine, up to three years of supervised release, and a mandatory special assessment fee of $100.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Jefferson Parish Sheriff’s Office, the Jefferson Parish District Attorney’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorneys David Berman and Rachal Cassagne are in charge of the prosecution.
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Issaquah, Washington man sentenced to 7 years in prison for dealing fentanyl and other drugs on the darknetRead the Press Release
Seattle – A 29-year-0ld Issaquah, Washington man was sentenced today in U.S. District Court in Seattle to seven years in prison for drug and gun charges, announced U.S. Attorney Nick Brown. Nicholas Partlow sold fentanyl, heroin, methamphetamine, and other drugs on the darknet more than 400 times. He also sold drugs locally and possessed five firearms in furtherance of his drug-trafficking activities. After contacts with law enforcement in 2020 and 2021, Partlow continued selling drugs. At the sentencing hearing, U.S. District Judge Richard A. Jones cited a range of aggravating factors in the case, including that Partlow sold fentanyl pills marked to look like prescription painkillers, and that Partlow used the darknet’s “cloak of darkness” to maintain his anonymity.
“Darknet drug dealers such as Mr. Partlow are spreading addiction and risk of overdose death across our country—all with the touch of a button,” said U.S. Attorney Nick Brown. “These defendants who deal in cyberspace don’t see the death their drugs leave behind. We must do all we can to interdict these deadly substances to reverse the record numbers of overdose deaths.”
According to records filed in the case, over the course of 2020, postal investigators seized several parcels that Partlow mailed to his drug customers. Inside, investigators found heroin, fentanyl pills, and other controlled substances. Investigators also covertly ordered drugs from Partlow through his darknet marketplace accounts.
In November 2020, law enforcement obtained a search warrant for Partlow’s Issaquah residence. That search turned up heroin, methamphetamine, fentanyl, ketamine, GHB, and other drugs; electronic equipment that Partlow used as part of his trafficking operation; and drug proceeds in cash and cryptocurrency.
Investigators also seized five firearms from Partlow—including a sawed-off shotgun and a pistol equipped with a silencer.
After the November 2020 search, Partlow continued trafficking drugs. He also tried to obtain another gun. In March 2021, police in Bellevue, Washington, arrested Partlow and an associate. Partlow carried narcotics and a notebook containing information about his trafficking activities. A few months later, in September 2021, Partlow crashed a car in Renton, Washington, while carrying narcotics and a taser. At the time, Partlow was wanted on a federal arrest warrant. He has been in federal custody since then.
After completing his seven-year prison sentence, Partlow will spend four years on federal supervised release. He is also forfeiting to the government a range of items, including guns, electronics, cryptocurrency, cash, and seven wristwatches.
In asking for a significant sentence, prosecutors noted the heavy toll of drug-overdose deaths during the very period when Partlow was distributing drugs, and described fentanyl and the darknet as “key drivers” of the overdose crisis.
“Partlow was no mere street-level dealer and should be not sentenced like one,” Assistant United States Attorney Jonas Lerman wrote in the government’s sentencing memorandum. “In hundreds of darknet transactions, he trafficked deadly drugs. By his own account, he started dealing on the darknet because it was ‘more lucrative’ than local dealing.”
“Fentanyl and heroin continue to be a menace on our streets, but Partlow will not” said Inspector in Charge Anthony Galetti. “He believed he could take advantage of those sickened by addiction for his own profit, however today he learns the true price of the dangerous and deadly narcotics he pedaled into our communities. I commend the work on the investigators on this case who worked tirelessly to bring Partlow to justice.”
In March 2022, Partlow pleaded guilty to two felonies: conspiring to distribute controlled substances and possessing firearms in furtherance of that crime.
The case was investigated by the U.S. Postal Service Office of Inspector General, with assistance from the U.S. Postal Inspection Service, the Drug Enforcement Administration (DEA), Homeland Security Investigations, the Federal Bureau of Investigation (FBI), U.S. Customs and Border Protection, and the Bellevue Police Department.
The case is being prosecuted by Assistant United States Attorney Jonas Lerman.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared recently before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Sept. 20 was:
Rafe Aaron Camp, 38, of Miles City, on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute meth and distribution of meth. If convicted of the most serious crime, Camp faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Camp was detained pending further proceedings. The Drug Enforcement Administration investigated the case. PACER case reference. 22-96.
Elmer Richard Petersen, 44, of Gillette, Wyoming, on charges of conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances, possession of firearm in furtherance of a drug trafficking crime and prohibited person in possession of a firearm. If convicted of the most serious crime, Petersen faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release on the conspiracy charge and a mandatory minimum five years to life, consecutive to any other sentence, a $250,000 fine and five years of supervised release on the charge of possession of a firearm in furtherance of drug trafficking. Petersen was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 22-91.
Appearing on Sept. 15 was:
Ethan Andrew Schilling, 25, of Billings, on charges of distribution of child pornography. If convicted of the most serious crime, Schilling faces a mandatory minimum of five years to 20 years in prison, a $250,000 fine and five years to life of supervised release. Schilling was released pending further proceedings. The FBI investigated the case. PACER case reference. 22-92.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Idaho I.T. Professional Pleads Guilty to Misappropriating Pre-Publication Investment Recommendations for Insider Trading SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that DAVID STONE pled guilty to one count of securities fraud in connection with an insider trading scheme. STONE was arrested in May of this year and pled guilty this morning before U.S. District Judge Mary Kay Vyskocil.
U.S. Attorney Damian Williams said: “David Stone admitted in court today that he unlawfully accessed pre-publication stock picks from an investment advice service so that he could beat the markets and generate millions in trading profits for himself. Today’s plea reflects this Office’s commitment to ensuring the integrity and fairness of our markets. David Stone now awaits sentencing for his crime and must also forfeit his illicit profits and make restitution.”
According to the allegations in the Information and statements made in public court proceedings:
From 2020 up to at least March 2022, DAVID STONE exploited market-moving stock recommendations made by an investment recommendation service (“Advisor-1”) before those recommendations were released to paying subscribers. STONE, an I.T. professional, accessed Advisor-1’s computing system using log-in credentials he obtained without authorization and used his improperly obtained access to view information relating to Advisor-1’s recommendations before they were announced to Advisor-1’s paying subscribers.
Advisor-1’s stock recommendations typically, but not always, lead to higher closing prices for the recommended stock as compared to the prior day’s closing price. By trading on those recommendations before they were announced, STONE was able to obtain significant profits unavailable to other market participants. In fact, across all the brokerage accounts he traded in, STONE realized gains of at least $3.5 million.
In addition to his own trading, STONE supplied trading tips to at least one other person (“Tipee-1”). Between in or about January 2021 up to and including in or about March 2022, on approximately 45 different days, STONE sent emails to Tipee-1 providing stock names and/or ticker symbols ahead of Advisor-1 announcements of stock recommendations to its paying subscribers. A brokerage account associated with Tipee-1 traded ahead of Advisor-1 recommendations on more than a dozen occasions. As a result of that trading, Tipee-1 profited more than approximately $2.7 million.
Before providing tips to Tipee-1, STONE summarized the terms by which STONE would provide information to Tipee-1, including steps they would take to hide their scheme. Among other things, STONE acknowledged that “what we are doing could be considered insider trading,” and accordingly, he recommended that Tipee-1 “[d]o other trades besides just what I tell you,” explaining, “[i]f all your trades are up 5x and you never make a loosing [sic] trade it may call attention of regulators.”
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DAVID STONE, 37, of Nampa, Idaho, pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. STONE is scheduled to be sentenced by Judge Vyskocil on February 14, 2023 at 2:00pm.
Mr. Williams praised the outstanding work of the FBI. Mr. Williams thanked the U.S. Securities and Exchange Commission, which has filed a parallel civil action.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Samuel P. Rothschild and Andrew Thomas are in charge of the prosecution.
Honduran Man Pleads Guilty to Unlawful Return to the United States After RemovalRead the Press Release
Gulfport, Miss. – A Honduran national pled guilty to the federal crime of unlawful return of an alien after deportation or removal.
U.S. Attorney Darren J. LaMarca of the Southern District of Mississippi, and Jason E. Schneider, Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector, made the announcement.
According to court documents, Jose Antonio Ferrera-Funez, 32, of Honduras, was arrested on June 22, 2022, on Interstate 10 in Jackson County. A Border Patrol Agent assigned to the South Mississippi Metro Enforcement Team made a traffic stop on a vehicle driven by Jose Antonio Ferrera-Funez, who did not have a driver’s license. Record checks revealed that Ferrera-Funez was an illegal alien who had been previously removed from the United States on multiple occasions.
Ferrera-Funez is scheduled to be sentenced on December 13, 2022, and faces a maximum penalty of two years in prison, a $250,000 fine and one year of supervised release. After completing any sentence of incarceration, he also is subject to Homeland Security proceedings to remove him again from the United States. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the Border Patrol, the South Mississippi Metro Enforcement Team and the Jackson County Sheriff’s Department.
Assistant U.S. Attorney Stan Harris is the prosecutor for the case.
Grant County woman admits to fentanyl chargeRead the Press Release
ELKINS, WEST VIRGINIA – Melissa Danielle Valkos, of Petersburg, West Virginia, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
Valkos, 30, pleaded guilty this week to one count of “Possession with Intent to Distribute Fentanyl.” She admitted to having fentanyl in Hardy County in February 2021.
Valkos faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Grand Jury - September 2022Read the Press Release
Acting United States Attorney Steven Russell announced the federal Grand Jury for the District of Nebraska has returned 21 unsealed Indictments charging 23 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Oscar Aguilar Pablo, age 37, of Crete, Nebraska, is charged with illegal reentry after deportation on or about September 14, 2022. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Jaime Alcala-Robles, age 45, is charged with illegal reentry of a removed alien after having been convicted of a felony on or about August 30, 2022. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Sarah Nichole Baldwin, age 30, is charged with possession with intent to distribute 50 grams or more of methamphetamine (actual) on or about February 10, 2022. The penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, not less than five-years and up to life term of supervised release, and a $100 special assessment.
* Daniel Conseco-Gallegos, age 27, of Omaha, is charged with illegal reentry of a removed alien after having been convicted of a felony on or about May 21, 2022. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Jose Pablo Cobarruvias-Ozuna, age 32, of Omaha, is charged with illegal reentry after deportation on or about January 5, 2022. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Jason Felder, age 41, of Omaha, is charged in a two-count Indictment. Count I charges Felder with Attempted Bank Robbery on or about August 10, 2022. The penalty if convicted is not less than 10 years’ and not more than 25 years’ imprisonment, a $250,000 fine, a three-year supervised release, and a $100 special assessment. Count II charges Felder with possession of a stolen firearm on or about August 10, 2022. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment
* Adriana Gonzalez, age 32, of San Ysidro, California, and Ildefonso Rivera-Leon, age 51, of San Ysidro, California, are charged with possession with intent to distribute 500 grams or more of methamphetamine and 100 grams of fentanyl on or about August 18, 2022. The penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, not less than five-years and up to life term of supervised release, and a $100 special assessment. There is also an allegation to forfeit $2,900 in United States currency seized on or about August 18, 2022.
* Robert T. Jaeger, age 44, is charged in a two-count Indictment. Count I charges Jaeger with a felon in possession of a firearm on or about August 23, 2022. The penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-years of supervised release, and a $100 special assessment. Count II charges Jaeger with receipt or possession of an unregistered firearm on or about August 23, 2022. The maximum possible penalty if convicted is 10 years’ imprisonment, a $10,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Jonny P. Jones, age 32, of Omaha, is charged in a three-count Indictment. Count I charges Jones with possession with intent to distribute 5 grams or more of methamphetamine (actual) on or about May 8, 2022. The penalty if convicted is not less than 5 years’ and up to 40 years’ imprisonment, a $5,000,000 fine, not less than four-years and up to life term of supervised release, and a $100 special assessment. Count II charges Jones with possession of a firearm during drug trafficking crime on or about May 8, 2022. The penalty if convicted is not less than 5 years’ imprisonment up to life imprisonment, a $250,000 fine, a five-years of supervised release, and a $100 special assessment. Count III charges Jones with a felon in possession of a firearm on or about May 8, 2022. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Miguel Lobano-Diaz, age 35, of Omaha, is charged in a two-count Indictment. Count I charges Lobano-Diaz with possession with intent to distribute 50 grams or more of methamphetamine (actual) on or about August 10, 2022. The penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, not less than five-years and up to life term of supervised release, and a $100 special assessment. Count II charges Lobano-Diaz with possession with intent to distribute cocaine on or about August 10, 2022. The penalty if convicted is 20 years’ imprisonment, a $1,000,000 fine, not less than three-years and up to life term of supervised release, and a $100 special assessment
* Alberto Mejia, age 34, of Omaha, is charged with possession of visual depictions of minors engaging in sexually explicit conduct on or about May 17, 2022. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, not less than five-years and up to life term of supervised release, and $22,100 in special assessments.
* Werner Monterroso-Monterroso, age 26, of Schuyler, Nebraska, is charged in a five-count Indictment. Count I charges Monterroso-Monterroso with unlawful transfer of a document or authentication feature on or about April 22, 2022. The penalty if convicted is 15 years’ imprisonment, a $250,000 fine, three-years term of supervised release, and a $100 special assessment. Count II charges Monterroso-Monterroso with sale of a card purporting to be a social security card on or about April 22, 2022. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. Count III charges Monterroso-Monterroso with unlawful transfer of a document or authentication feature on or about June 8, 2022. The maximum possible penalty if convicted is 15 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. Count IV charges Monterroso-Monterroso with sale of a card purporting to be a social security card on or about June 8, 2022. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. Count V charges Monterroso-Monterroso with possession with intent to use or transfer five or more documents or authentication features on or about August 24, 2022. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Travis Nyhoff, age 40, is charged with possession with intent to distribute 50 grams or more of methamphetamine (actual) on or about September 21, 2021. The penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, not less than five-years and up to life term of supervised release, and a $100 special assessment.
* Ecclesiast Oliver, age 69, is charged with assault on a federal employee on or about September 18, 2022. The maximum possible penalty if convicted is 8 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Rocky J. Patterson, age 68, is charged in a two-count Indictment. Count I charges Patterson with a felon in possession of a firearm on or about August 3, 2022. The penalty if convicted is 15 years’ imprisonment, a $250,000 fine, a three-years of supervised release, and a $100 special assessment. Count II charges Patterson with unlawfully taking a firearm from a federal firearms licensed business on or about August 3, 2022. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Scott Matthew Simmons, age 42, of Grand Island, Nebraska, and Scott Lee Meyer, age 33, of Grand Island, Nebraska, are charged in an eight-count Indictment. Count I charges Simmons and Meyer with conspiracy to produce child pornography beginning on or about 2018 and continuing to on or about August 15, 2022. The penalty if convicted is not less than 25 years’ and not more than 50 years’ imprisonment, a $250,000 fine, not less than five-year up to life supervised release, and a $55,100 special assessment. Count II charges Simmons and Meyer with committing Count I while on the sex-offender registry beginning on or about 2018 and continuing to on or about August 15, 2022. The maximum possible penalty if convicted is 10 years’ imprisonment consecutive to Count I, a $250,000 fine, not less than five-years up to life term of supervised release, and a $100 special assessment Count III charges Meyer with production of child pornography beginning on or about 2018 and continuing to on or about August 15, 2022. The penalty if convicted is not less than 25 years’ and not more than 50 years’ imprisonment, a $250,000 fine, not less than five-year up to life supervised release, and a 55,100 special assessment. Count IV charges Meyer with committing Count III while on the sex-offender registry beginning on or about 2018 and continuing to on or about August 15, 2022. The maximum possible penalty if convicted is 10 years’ imprisonment consecutive to Count I, a $250,000 fine, not less than five-years up to life term of supervised release, and a $100 special assessment Count V charges Simmons with production of child pornography beginning on or about 2018 and continuing to on or about August 15, 2022. The penalty if convicted is not less than 25 years’ and not more than 50 years’ imprisonment, a $250,000 fine, not less than five-year up to life supervised release, and a $55,100 special assessment. Count VI charges Simmons with committing Count III while on the sex-offender registry beginning on or about 2018 and continuing to on or about August 15, 2022. The maximum possible penalty if convicted is 10 years’ imprisonment consecutive to Count I, a $250,000 fine, not less than five-years up to life term of supervised release, and a $100 special assessment. Count VII charges Meyer with possession of child pornography beginning on or about August 25, 2022. The penalty if convicted is not less than 25 years’ and not more than 50 years’ imprisonment, a $250,000 fine, not less than five-year up to life supervised release, and a $55,100 special assessment. Count VIII charges Simmons with possession of child pornography beginning on or about August 26, 2022. The penalty if convicted is not less than 25 years’ and not more than 50 years’ imprisonment, a $250,000 fine, not less than five-year up to life supervised release, and a $55,100 special assessment.
* Mark A. Smith, age 49, of Omaha, is charged in a three-count Indictment. Count I charges Smith with possession with intent to distribute 50 grams or more of methamphetamine (actual) on or about July 16, 2022. The penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, not less than five-years and up to life term of supervised release, and a $100 special assessment. Count II charges Smith with possession of a firearm during drug trafficking crime on or about July16, 2022. The penalty if convicted is not less than 5 years’ imprisonment up to life imprisonment consecutive, a $250,000 fine, a five-years of supervised release, and a $100 special assessment. Count III charges Smith with a felon in possession of a firearm on or about July 16, 2022. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Edward Smith, age 22, of Omaha, is charged with possession of a firearm by a prohibited person on or about July 22, 2022. The penalty if convicted is 15 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Kyrell Wells, age 19, of Omaha, is charged in a two-count Indictment. Count I charges Wells with a felon in possession of a firearm on or about July 8, 2022. The penalty if convicted is 15 years’ imprisonment, a $250,000 fine, a three-years of supervised release, and a $100 special assessment. Count II charges Wells with a felon in possession of a firearm on or about August 11, 2022. The penalty if convicted is 15 years’ imprisonment, a $250,000 fine, a three-years of supervised release, and a $100 special assessment.
* Steven R. Windoloski, age 32, is charged with possession with intent to distribute 5 kilograms or more of cocaine on or about August 11, 2021. The penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, not less than five-years and up to life term of supervised release, and a $100 special assessment. There is also an allegation to forfeit any property.
* Alma L. Zapien, age 51, of Omaha, is charged with conspiracy to commit money laundering beginning on or about April 20, 2022 and continuing through June 30, 2022. The maximum possible penalty if convicted is 20 years’ imprisonment, a $500,000 fine, a three-year term of supervised release, and a $100 special assessment.
Grand Island Man Sentenced to 10 Years’ Imprisonment for Drug ConvictionRead the Press Release
Acting United States Attorney Steven Russell announced that Nicholas Holder, 43 of Grand Island, Nebraska, was sentenced today in federal court in Omaha, Nebraska, for Possession with Intent to Distribute Methamphetamine. Chief United States District Court Judge Robert F. Rossiter, Jr. sentenced Holder to 120 months’ imprisonment. After completing his term of imprisonment, Holder will be required to serve a five-year term of supervised release as there is no parole in the federal system.
On January 6, 2021, a Butler County Deputy Sheriff was dispatched to a vehicle in the ditch in rural Butler County, Nebraska. The deputy contacted the vehicle operated by Holder, who was passed out behind the wheel with his vehicle running. While being investigated for driving under the influence, Holder gave permission to search his vehicle which revealed approximately 13 ounces of methamphetamine, along with user quantities of mushrooms and marijuana.
This case was investigated by the Butler County Sheriff’s Office and the Nebraska State Patrol.
Gregory J. Haanstad Sworn in as United States AttorneyRead the Press Release
The United States Attorney’s Office has announced that Gregory J. Haanstad has taken the oath of office to become the United States Attorney for the Eastern District of Wisconsin. Mr. Haanstad was nominated by President Biden on June 6, 2022, and was confirmed by the United States Senate on September 13, 2022. He took the oath of office before Chief United States District Judge Pamela Pepper on September 19, 2022.
As United States Attorney, Mr. Haanstad is the top-ranking federal law enforcement official in the Eastern District of Wisconsin, which is comprised of 28 counties and which includes the cities of Milwaukee, Kenosha, Racine, and Green Bay. Mr. Haanstad oversees a staff of over 80 employees, including 44 attorneys.
The office is responsible for prosecuting federal crimes in the district, including crimes related to terrorism, public corruption, civil rights, child exploitation, firearms, fraud, cybercrime, human trafficking, and narcotics. The office also represents the United States in affirmative and defensive civil litigation and collects debts owed to the United States.
Mr. Haanstad has more than 20 years of experience as a federal prosecutor in the United States Attorney’s Office for the Eastern District of Wisconsin and has prosecuted a wide range of criminal cases, including those involving national security, financial fraud, public corruption, hate crimes, bank robberies, and drug conspiracies. Mr. Haanstad previously served as United States Attorney from 2016 to 2018; Acting United States Attorney from 2015 to 2016; First Assistant United States Attorney from 2010 to 2015; and Deputy Chief of the Criminal Division in 2010.
Before joining the United States Attorney’s Office, Mr. Haanstad served as a law clerk to United States Magistrate Judge William E. Callahan, Jr., on the United States District Court for the Eastern District of Wisconsin from 2000 to 2002.
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Former Securities Brokers Sentenced to Federal Prison Terms for Perpetrating Securities Fraud SchemeRead the Press Release
MIAMI – A South Florida federal judge has ordered prison sentences for two former securities brokers who defrauded investors out of $1.5 million by -- among other things -- lying about stock offerings, failing to disclose their exorbitant commission rates, and using an alias to hide one of the broker’s disciplinary pasts.
U.S. District Judge Rodney Smith sentenced Jeffrey Alan Horn, 47, of Coral Springs, Florida to 100 months and Omar Leon Plummer, 54, of Margate, Florida, to 36 months in prison. In April, a federal jury in Ft. Lauderdale found Horn and Plummer guilty of conspiring to commit securities fraud. The jury also found Horn guilty of conspiracy to commit mail fraud and wire fraud, and four counts of securities fraud.
Between October 2014 and April 2016, Horn and Plummer contacted prospective investors and made materially false statements and omissions about the private placement offering of restricted common shares of Sunset Capital Assets (formerly known as Sunset Brands). Horn and Plummer failed to disclose to prospective investors that that the brokers would receive exorbitant commissions from the sale of Sunset stock. In addition, Plummer failed to disclose his real name to prospective investors, using the alias “Al Goldstein” to conceal his extensive disciplinary history in the securities industry. This discipline history included cease-and-desist orders issued by state regulators in Colorado and Arkansas that prohibited Plummer from engaging in certain securities activities in those states.
Horn and Plummer misled prospective Sunset investors in other ways. For example, Horn sent Private Placement Memoranda and other written offering materials to investors that misrepresented both Sunset’s assets and the company’s intended use for the funds. Horn, Plummer, and others funneled nearly all $1.5 million of Sunrise investor money into their own pockets. Neither Horn nor Plummer held an active securities license with the Financial Industry Regulation Authority (FINRA) when they contacted investors about the Sunset offering.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Robert M. DeWitt, Acting Special Agent in Charge, FBI Miami, announced the sentences.
FBI Miami investigated this case, with assistance from FINRA. Assistant U.S. Attorneys Dwayne Williams and David Snider prosecuted the case. Assistant U.S. Attorney Emily Stone is handling asset forfeiture.
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 21-cr-60019.
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Former Broker Sentenced to 36 Months in Prison for Stock Fraud SchemeRead the Press Release
Earlier today, in federal court in Brooklyn, Craig Josephberg, a former registered broker who worked at multiple brokerage firms in New York, New York, was sentenced by United States District Judge Eric N. Vitaliano to 36 months imprisonment, to be followed by three years’ supervised release, for orchestrating a multi-million-dollar market manipulation scheme. Josephberg was also ordered to pay more than $16 million in restitution and $706,052 in forfeiture. Josephberg pleaded guilty to the charges set forth in a superseding indictment in March 2018, including two counts of securities and wire fraud conspiracy, two counts of securities fraud, and one count of wire fraud relating to his manipulation of stocks of multiple microcap or “penny” stocks, including the stock of CodeSmart Holding, Inc. (CodeSmart), Cubed, Inc. (Cubed), and others, (collectively the “Manipulated Public Companies”).
Breon Peace, United States Attorney for the Eastern District of New York, announced the sentence.
“Josephberg abused his position as a registered broker to victimize both his customers and the investing public through an expansive fraud scheme to manipulate the stock price of multiple companies for his own financial benefit,” stated United States Attorney Peace. “This prosecution and sentence shows that licensed professionals will be held to account when they deceive their customers and harm investors.”
Mr. Peace expressed his thanks to the Federal Bureau of Investigation, New York Field Office (FBI), and the United States Securities and Exchange Commission, New York Regional Office, for their invaluable efforts in the case.
The evidence at the trial of his co-conspirator Abraxas Discala established that Josephberg and his co-defendants participated in two schemes to manipulate the stock price of CodeSmart and Cubed as part of an overarching conspiracy to commit securities, mail and wire fraud with respect to the Manipulated Public Companies.
Josephberg’s co-defendant Abraxas Discala purported to raise capital for private start-up companies and offered to take them public through reverse mergers with public shell companies in exchange for obtaining control of a large portion of the free trading or unrestricted stock. Josephberg, Discala and their co-conspirators, including co-defendants Ira Shapiro, Marc Wexler, Matthew Bell, Victor Azrak, Darren Goodrich, Darren Ofsink and Michael Morris, then artificially inflated that stock through manipulative trading and promotional campaigns, generating large profits for themselves at the expense of unwitting investors. Josephberg, a registered investment advisor, sold inflated shares in the Manipulated Public Companies to his clients, ultimately leaving them with worthless shares while he made approximately $700,000 in trading profits, as well as additional commission income.
- The CodeSmart Scheme
In early May 2013, Discala and his co-conspirators engineered a reverse merger of CodeSmart, a private company, with a shell public company. After gaining control of CodeSmart’s unrestricted shares, Discala and his co-conspirators on two occasions, fraudulently inflated CodeSmart’s share price and trading volume and then sold the unrestricted CodeSmart stock at a profit when the share price reached desirable levels. Shapiro, the Chief Executive Officer of CodeSmart, issued numerous press releases, including press releases with false information to facilitate inflating CodeSmart’s stock price. The defendants fraudulently manipulated CodeSmart’s stock price from $1.77 to a high of $6.94 on July 12, 2013, leading to an inflated market capitalization of over $85 million.
The co-conspirators, including Josephberg, profited by selling CodeSmart stock, issued to them at pennies, to their clients and customers. On some occasions, Josephberg had his customers buy CodeSmart shares without his customers’ knowledge and consent. Additionally, Josephberg sold CodeSmart shares in his personal trading accounts at the same time that he purchased CodeSmart stock in his customers’ accounts.
Josephberg, Discala, Wexler, Bell, Ofsink and Morris made more than $6 million in illicit trading profits from the CodeSmart scheme, and the co-conspirators caused more than $12.5 million in losses to approximately 900 CodeSmart investors who purchased the publicly traded stock.
- The Cubed Scheme
In March 2014, Discala and his co-conspirators took Cubed public through an asset purchase agreement by a shell public company. After gaining control of all of Cubed’s unrestricted shares, between April 22, 2014 and April 30, 2014, Discala and his co-defendants, including Josephberg, Wexler, Bell, Goodrich and Azrak, fraudulently created trading volume in Cubed stock by purchasing more than 50% of the total number of Cubed shares purchased during this period. The defendants also were able to successfully control the price and volume of Cubed’s stock. Josephberg both purchased and placed bids on Cubed stock at specific prices to help manipulate the stock price and create the appearance of false demand. On June 23, 2014, Cubed reached its highest closing price of $6.75 per share, resulting in a market capitalization of approximately $200 million. Investors who bought publicly traded Cubed stock lost over $400,000. In addition, Cubed was able to raise over $2 million in a private offering of stock to investors who were deceived by how Cubed stock was performing in the market. Discala and Wexler also made over $1 million worth of illegal private sales of Cubed stock to over three dozen investors. Discala and his co-conspirators caused more than $4 million in total losses to approximately 100 Cubed investors.
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Discala, who was convicted after a trial, was previously sentenced to 138 months imprisonment and ordered to pay $16,346,023 in restitution. The remaining convicted defendants entered guilty pleas. Shapiro was previously sentenced to 21 months imprisonment and ordered to pay $12,557,553 in restitution, Goodrich was previously sentenced to 41-months imprisonment and ordered to pay $479,007.05 in restitution, and Morris was sentenced 6 months imprisonment and ordered to pay $112,575. 35 in resitution. Wexler, Bell, Azrak, and Ofsink are awaiting sentencing.
In July 2022, Mr. Peace was selected as the Chairperson of the White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (AGAC). As the leader of the subcommittee, Mr. Peace will play a key role in making recommendations to the AGAC to facilitate the prevention, investigation and prosecution of various financially motivated, non-violent crimes including mail and wire fraud, bank fraud, health care fraud, tax fraud, securities and commodities fraud, and identity theft.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Shannon C. Jones is in charge of the prosecution. Assistant United States Attorney Claire Kedeshian of the Office’s Asset Recovery Section is handling forfeiture matters.
The Defendant:
CRAIG JOSEPHBERG
Age: 49
New York, NYE.D.N.Y. Docket No. 14-CR-399 (S-1)(ENV)
Former Baldwin County Pain Doctor Convicted on All Counts at Fraud TrialRead the Press Release
MOBILE, AL – A federal jury convicted a Daphne man today for bank fraud, making false statements to federal agents, willfully refusing to pay court-ordered restitution, and aggravated identity theft.
According to court documents and evidence presented at trial, Rassan M. Tarabein, 63, a former neurologist and pain doctor in Baldwin County, pleaded guilty in 2017 to healthcare fraud and unlawful distribution of controlled substances. A federal judge in the Southern District of Alabama ordered Tarabein to pay more than $15 million in restitution to his victims. In early 2018, while awaiting sentencing in his federal case, Tarabein issued cashier’s checks worth more than $100,000 to himself without the court’s approval. Tarabein falsely represented to his probation officer that the checks were for payment of bills. Tarabein was sentenced to five years in federal prison in June 2018, but was released early to home confinement in November 2020 due to the COVID-19 pandemic.
While on home confinement in Fairhope in 2020, and unbeknownst to the court, Tarabein reissued the 2018 cashier’s checks to himself. From 2020 to 2022, Tarabein made no payments toward his restitution obligation. Instead, the jury reviewed evidence that Tarabein had access to and spent large sums of money on himself. In December 2021, Tarabein fraudulently deposited money into his bank account using information from another account that he had agreed to forfeit and that had been closed years earlier as part of his healthcare fraud and drug convictions in 2017. Further, in early 2022, Tarabein made false statements to his probation officer in his financial disclosures while continuing to conceal assets.
In April 2022, agents with the Federal Bureau of Investigation arrested Tarabein at the Pensacola International Airport while he was en route to the Middle East. Agents found Tarabein in possession of, among other things, a $31,000 counterfeit check dated March 2022 from a victim business in Georgia made payable to Tarabein at his address in Fairhope. The counterfeit check bore the name and signature of a representative of the victim business, which had previously lost tens of thousands of dollars from a successful deposit of a nearly identical fraudulent check months earlier.
Tarabein will be sentenced before Chief United States District Judge Jeffrey U. Beaverstock in January 2023. Tarabein is subject to a mandatory two-year prison sentence for his aggravated identity theft conviction. He also faces up to 30 years in prison for his bank fraud conviction.
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.The FBI is investigating the case.
Assistant U.S. Attorney Justin Roller of the Southern District of Alabama and Trial Attorneys Sinan Kalayoglu and Lindsay Heck of the Money Laundering and Asset Recovery Section, Criminal Division, are prosecuting the case on behalf of the United States.
Financial Officer Sentenced to Nearly Three Years for Defrauding Sumter County Non-ProfitRead the Press Release
COLUMBIA, SOUTH CAROLINA —Rodney Ellis, 71, of Sumter, was sentenced to nearly three years in federal prison after pleading guilty to his role in defrauding a local non-profit organization.
Evidence presented to the Court showed that while serving as the Financial Officer for Sumter Behavioral Health Services (SBHS), a 501c3 non-profit, Ellis defrauded the non-profit out of more than $800,000 over eight years. His scheme was to divert funds from SBHS banking accounts to his own personal banking accounts.
United States District Judge Terry L. Wooten sentenced Ellis to 33 months in federal prison, to be followed by a three-year term of court-ordered supervision. Ellis was also ordered to pay restitution to SBHS in the amount of $812,259.07. There is no parole in the federal system.
“By stealing from an organization that serves those suffering from substance abuse, Ellis took from those he should have been protecting,” said U.S. Attorney Adair F. Boroughs. “This case shows that financial crimes are not victimless, and often do the most harm to those who need help the most. This office will continue to aggressively prosecute fraud, and we appreciate the efforts of all state and federal agencies involved in this case.”
“Ellis used his position of power to take advantage of a system designed to help those with substance abuse challenges,” said Federal Bureau of Investigation (FBI) Columbia Special Agent in Charge, Susan Ferensic. “Our work is not finished. The FBI and our law enforcement partners will continue to dismantle the schemes that hurt health organizations and we will hold the perpetrators accountable.”
“I am grateful to the United States Attorney’s Office for their efforts in bringing Rodney Ellis to justice,” said Sumter County Sheriff Anthony Dennis “Ellis betrayed the trust of not only members of the Sumter Behavioral Health office, but the citizens of Sumter County. We hope the message is clear that anyone who betrays the trust of their employer by taking funds will be held responsible and all efforts will be utilized to bring them to justice.”
This case was investigated by the FBI and the Sumter County Sherriff’s Department. Assistant U.S. Attorney Amy Bower prosecuted the case.
Federal Inmate Involved in Fentanyl Trafficking Ring Sentenced to Years More in PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that FELIX CANCEL, JR., 49, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 108 months of imprisonment, followed by three years of supervised release, for participating in a fentanyl ring while incarcerated in a federal prison.
According to court documents and statements made in court, in May 2008, Cancel was sentenced in Hartford federal court to 240 months of imprisonment for narcotics distribution and money laundering offenses stemming from his leadership on an extensive Hartford-based heroin trafficking organization. Cancel has been detained in federal custody since March 2007.
In July 2019, the DEA’s Hartford Task Force began investigating a Mexican-based drug trafficking organization that was distributing fentanyl and heroin in Connecticut. The investigation revealed that Armando Gonzalez, David Cintron and other members of the organization received kilogram-quantities of narcotics, primarily fentanyl, from a source in Mexico, and then distributed the drug to street-level distributors. Members of the organization delivered cash generated from the sale of narcotics to a money broker in Brooklyn, New York, who assisted in laundering the narcotics proceeds before they were transferred to leaders of the drug trafficking organization. Between August and October 2019, investigators seized more than $200,000 in cash from members of the drug trafficking organization.
Gonzalez and Cintron used several locations to store, process and package fentanyl for street stale, including office space on Pratt Street in Hartford, an apartment in the Asylum Hill neighborhood in Hartford, and an apartment in New Britain.
The investigation revealed that, while he was incarcerated at a federal prison in New Hampshire, Cancel used a contraband cellphone to help coordinate large-scale fentanyl transactions between the Mexican source and Gonzalez and Cintron in Connecticut.
On June 3, 2020, a grand jury returned an indictment charging Cancel, Gonzalez, Cintron and seven others with narcotics distribution and money laundering offenses. On April 18, 2022, Cancel pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute fentanyl.
Gonzalez and Cintron pleaded guilty to related charges. On June 27, 2022, Gonzalez, of New Britain, was sentenced to 120 months of imprisonment. Cintron, of Manchester, is scheduled to be sentenced on September 30.
Judge Hall imposed the 108-month prison term concurrently with Cancel’s prior federal sentence, which has an anticipated completion date in August 2024.
The DEA’s Hartford Task Force includes personnel from the DEA Hartford Resident Office, the Connecticut State Police, and the Bristol, Hartford, East Hartford, Enfield, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. Agencies assisting the investigation include the DEA New York Organized Crime Drug Enforcement Task Force Strike Force and the New York Police Department.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.