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Friday 23 September 2022
Father, daughter tax preparers sentenced for income tax filing fraudRead the Press Release
AUGUSTA, GA: A Richmond County man and his daughter have been sentenced after admitting they filed fraudulently inflated tax returns on behalf of clients.
Ezra Hatcher Sr., 67, of Hephzibah, Ga., was sentenced to 24 months in prison, followed by three years of supervised release, and ordered to pay $69,682 in restitution after previously pleading guilty to Conspiracy to Defraud the United States, said David H. Estes, U.S. Attorney for the Southern District of Georgia. Hatcher’s daughter, Sherry Hatcher, 42, of Augusta, was sentenced to five years’ probation and ordered to pay $4,141 in restitution after previously pleading guilty to Aiding and Assisting in the Filing of a False Tax Return.
In addition, each defendant is permanently prohibited from preparing or filing federal tax returns for anyone other than themselves.
“Family run small businesses are the backbone of American free enterprise, and the Hatchers could have established themselves as honorable participants in the tax preparation business,” said U.S. Attorney Estes. “Instead, serial scam artist Ezra Hatcher made a business of defrauding taxpayers, and he and his daughter are being held accountable for their crimes.”
As described in court documents and testimony, an IRS investigation of tax preparation services operated by Ezra Hatcher and Sherry Hatcher determined that from 2014 to 2018, their tax services filed 21 tax returns containing fraudulent information on behalf of seven individuals. The returns included false information relating to Schedule C expenses, income, and earned income credits, causing the IRS to issue excess refunds amounting to nearly $75,000.
Ezra Hatcher previously served a federal prison sentence for preparing false income tax returns after pleading guilty in 1998.
“The Hatchers abused their clients’ trust in an effort to fraudulently gain more funds,” said IRS-Criminal Investigation Special Agent in Charge James E. Dorsey. “The sentencing is proof we are holding return preparers accountable. To help detect these schemes and avoid getting a surprise IRS audit bill, it’s important to pick an honest, transparent return preparer and not the one who promises a big refund. Always review your return with your return preparer and ask questions.”
The case was investigated by IRS-Criminal Investigations, and prosecuted for the United States by Assistant U.S. Attorneys Henry W. Syms Jr. and Jennifer A Stanley.
Eagle Butte Man Sentenced for AssaultRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that an Eagle Butte, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on September 22, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Melvin Semon, age 55, was sentenced to 15 months in federal prison, followed by three years of supervised release, and ordered to pay a special assessment to the Federal Crime Victims Fund in the amount of $100.
Semon was indicted by a federal grand jury in April of 2022. He pleaded guilty on June 16, 2022.
On the evening of January 3, 2022, Semon became angry with the victim in their Eagle Butte home. He hit her and threw her against the kitchen chairs or table, breaking her right arm. Rather than assisting her, he departed. Responding officers found the victim sitting on the kitchen floor, crying and clutching her right arm. She required extensive reconstructive surgery to reset the bone and will likely never regain full function of her arm.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Carl Thunem prosecuted the case.
Semon was immediately remanded to the custody of the U.S. Marshals Service.
Eagle Butte Man Indicted for Firearm ChargeRead the Press Release
United States Attorney Alison J. Ramsdell announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Felon in Possession of a Firearm.
Dominic Houston, age 24, 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, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on August 17, 2022, Houston, being a convicted felon, knowingly possessed a firearm.
The charge is merely an accusation and Houston 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 Cheyenne River Sioux Tribe Law Enforcement Services, Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Houston was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
District Man Sentenced to Seven Years for Shooting Outside NightclubRead the Press Release
Defendant Must Serve Five-Year Mandatory Minimum in Prison
WASHINGTON – Deante Green, 25, of Washington, D.C., was sentenced today to seven years – five of which must be served in prison – on charges stemming from the shooting of two people outside a nightclub in the Dupont Circle area of Northwest Washington last summer, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Green pleaded guilty in February 2022, in the Superior Court of the District of Columbia, to assault with a dangerous weapon and possession of a firearm during a crime of violence. He was sentenced by the Honorable Michael O’Keefe. Following his prison term, Green will be placed on three years of supervised probation. He must also perform 90 hours of community service.
According to the government’s evidence, on Sunday, June 27, 2021, at approximately 10 p.m., Green accosted a man outside a nightclub in the 1200 block of Connecticut Avenue NW, following a dispute over a double-booked table at the establishment. An altercation followed, and Green fired a gun twice at the man as the man was running away. One bullet hit the man in the left thigh. The second shot hit a woman who worked at a neighboring establishment who was not involved in the dispute. That victim was hit in the left arm. The gunshot shattered a bone, and she has lost some use of the arm and now has only partial use of her thumb. Green, who fled the scene, was arrested on July 8, 2021. He has been in custody ever since.
In announcing the sentence, U.S. Attorney Graves and Chief Contee commended those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Crystal Waddy, and Assistant U.S. Attorney Paul V. Courtney, who prosecuted the matter.
Dekalb Man Sentenced to 15 Months in Prison for Possessing a Firearm as a Convicted FelonRead the Press Release
Jackson, Miss. - A Dekalb, Mississippi man was sentenced to one year and three months in prison for possession of a firearm by a convicted felon, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
According to court documents, Lil’Christopher Jerome Mason, 27, was found in possession of a firearm by officers of the Meridian Police Department on June 9, 2021, during a traffic stop. Mason had a .380 caliber pistol on the front passenger seat of his car. Mason has a prior felony conviction for Burglary of a Dwelling. As a convicted felon it is contrary to federal law for Mason to possess any firearm.
The Meridian Police Department and the FBI investigated the case.
Assistant U.S. Attorney Charles W. Kirkham prosecuted the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Defendant Admits to Killing a Woman and Attempting to Set a Fire to Conceal the CrimeRead the Press Release
A Tulsa woman admitted Friday to strangling a female victim, causing her death, then attempting to set the victim’s body and residence on fire to conceal the crime, announced U.S. Attorney Clint Johnson.
Jessica Lavon McBride, 30, of Tulsa, pleaded guilty to voluntary manslaughter in Indian Country and attempt to commit arson.
“Jessica McBride stayed in the home of the victim, and in return, she took her life because of missing food stamps,” said U.S. Attorney Clint Johnson. “My office and our law enforcement partners at the Tulsa Police Department and FBI will continue to hold perpetrators, like McBride, accountable for their criminal acts.”
The victim, Tracy Russell, had previously allowed the defendant and her boyfriend to stay with her in exchange for assistance with groceries but at a later time, requested the two leave her Tulsa residence.
In her plea agreement, McBride admitted to returning to the residence and killing the victim by strangulation on March 17, 2019. McBride said she committed the crime during a heated argument that started when she accused the victim of stealing her food stamps. Those claims were never substantiated.
In an effort to destroy evidence, McBride admitted that she covered the victim with a blanket and attempted to set the victim’s body and residence on fire. Her attempt failed, and McBride made plans to return, asking another individual to assist in setting the place on fire.
That individual reported the crime and McBride’s plan to authorities on March 20, 2019. That night, the individual and an undercover investigator picked up McBride and drove to the victim’s residence. McBride exited the vehicle carrying a plastic bag, which was later found to contain gas camp fuel and lighter fluid, and entered the residence through a window with the intention of setting the place on fire. Tulsa police officers then directed McBride out of the residence and took her into custody. Officers also recovered the victim’s body.
The Tulsa Police Department and FBI conducted the investigation. Assistant U.S. Attorneys Thomas E. Buscemi and Robert T. Raley are prosecuting the case.
Darknet drug distributor sent to prisonRead the Press Release
HOUSTON – A 42-year-old man residing in Houston has been ordered to federal prison following his conviction of conspiracy to distribute cocaine as a Darknet vendor, announced U.S. Attorney Jennifer B. Lowery.
Dennis Escobar aka Choppa pleaded guilty Dec. 22, 2021, to engaging in a conspiracy to distribute more than five kilograms of cocaine.
Today, U.S. District Judge Sim Lake ordered Escobar to serve 150 months in federal prison to be immediately followed by five years of supervised release. In handing down the sentence, Judge Lake noted Escobar’s criminal history and his role in the offense.
Escobar and others engaged in a large-scale conspiracy to distribute various narcotics including cocaine via Darknet marketplaces. Escobar and co-conspirators also used the U.S. Postal Service to send narcotics to buyers who paid the group using cryptocurrency.
The investigation was the result of a law enforcement effort to identify individuals in the Houston area selling and distributing narcotics via DarkNet marketplaces.
The U.S. Postal Inspection Service and Food and Drug Administration conducted the investigation with assistance of the Drug Enforcement Administration and Houston Police Department.
The plea is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed Operation Be That Guy. OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States. It uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Assistant U.S. Attorney Jason Corley prosecuted the case.
Crips Gang Member Sentenced to 13 Years in Federal Prison for Conspiracy to Distribute and Possess with Intent to Distribute CocaineRead the Press Release
Baltimore, Maryland – Yesterday, U.S. District Judge George L. Russell sentenced Terrell Walton, age 36, of Delaware, to 13 years in federal prison, followed by 5 years of supervised release, for conspiracy to distribute and possess with intent to distribute cocaine and crack cocaine. Walton and co-defendant, Che Jaron Durbin, age 43, of Aberdeen, Maryland were convicted by a federal jury of conspiracy to distribute and possess with intent to distribute cocaine and crack cocaine. The jury also found Durbin guilty of two counts of possession with intent to distribute cocaine.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Harford County State’s Attorney Albert J. Peisinger, Jr.; Special Agent in Charge Jarod A. Forget of the Drug Enforcement Administration, Washington Office; Sheriff Jeffrey Gahler of the Harford County Sheriff’s Office; and the Harford County Drug Task Force, a High Intensity Drug Trafficking Areas (HIDTA) program, comprised of members of the Harford County Sheriff’s Office, the Aberdeen Police Department, the Bel Air Police Department, and the Havre de Grace Police Department.
According to evidence presented at Durbin’s eight-day trial, Durbin supplied Walton and co-conspirator Michael Ronnell Wells, age 37, of Forest Hill, Maryland with cocaine and crack for local distribution. Several text messages between Walton and Wells referenced Durbin as “Big Bro” and the need to “holla” at him, which was code for a drug transaction. The evidence at trial also showed that Walton obtained cocaine from Durbin, which Walton then sold to a network of individuals in Harford County. Intercepted communications between Durbin and Walton included discussions regarding the amounts of drugs and the price, often using coded language.
During Walton’s sentencing, the government produced evidence of Walton’s Crips gang membership as well as evidence that Walton assaulted a fellow inmate while incarcerated. Specifically, in April 2020, Walton attacked Durbin, causing significant damage to one of Durbin’s eyes. As a result of Walton’s attack, Durbin could possibly lose vision in the impacted.
Walton’s co-defendant, Durbin, is scheduled for sentencing on September 30, 2022, at 9:30 a.m. before U.S. District Judge George L. Russell. Co-defendant Wells pled guilty to his participation in the conspiracy and was sentenced to 71 months in federal prison.
United States Attorney Erek L. Barron commended the Harford County State’s Attorney’s Office, the DEA, the Harford County Sheriff’s Office, and the Harford County Drug Task Force for their work in the investigation and thanked the U.S. Postal Inspection Service and the Maryland State Police for their assistance. Mr. Barron thanked Assistant United States Attorney Kenneth Clark and Special Assistant United States Attorney Christopher J. Romano, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Columbia Man Found Guilty of Multiple Federal Drug OffensesRead the Press Release
Hattiesburg, Mississippi – Alfredric James, 37, of Columbia, Mississippi, was charged in a federal indictment with one count of conspiracy to distribute methamphetamine and one count of possession with intent to distribute methamphetamine. After a three-day trial, James was found guilty of both counts.
U.S. Attorney Darren LaMarca and Special Agent in Charge Brad L. Byerley of the Drug Enforcement Administration made the announcement.
According to court documents and trial testimony, on December 9, 2020, James retrieved a pound of pure methamphetamine hidden by two of his conspirators in a barbecue grill at a residence in Hattiesburg. Having been alerted to the transaction, agents attempted to stop James’s vehicle. James fled but was apprehended with the meth after a short pursuit. James was responsible for distributing over 8 kilograms of methamphetamine to the Hattiesburg, Mississippi area in a two month period in the Fall of 2020.
James will be sentenced on January 12, 2023, by U.S. District Judge Keith Starrett. He faces a maximum penalty of life in prison.
The case is the result of an extensive investigation, dubbed “Don’t Tell On Me Bro,” which began as an operation targeting illegal drug trafficking in the Hattiesburg, Mississippi area. “Don’t Tell On Me Bro” is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The case was investigated by the Drug Enforcement Administration, Lamar County Sheriff’s Office, Forrest County Sheriff’s Office, Hattiesburg Police Department and the Mississippi Bureau of Narcotics.
The case was prosecuted by Assistant United States Attorneys Keesha Middleton and Shundral Cole.
Colorado Man Sentenced to 30 Months in Prison for Actions During Jan. 6 Capitol BreachRead the Press Release
WASHINGTON — A Colorado man was sentenced today to 30 months in prison for his actions during the breach of the U.S. Capitol on Jan. 6, 2021. His and others’ actions disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the presidential election.
Thomas Patrick Hamner, 49, of Peyton, Colorado, was sentenced in the District of Columbia.
According to court documents, on Jan. 6, 2021, Hamner illegally entered the West Lawn of the U.S. Capitol, which was barricaded with fencing. Upon seeing rioters break through the police line, Hamner hopped over the barricades and began pulling them down. At approximately 1 p.m., a crowd of violent rioters assembled on the West Plaza of the Capitol. U.S. Capitol Police formed a line of bike racks to act as a barrier against the crowd. Officers fended off repeated attempts by those in the mob to pull on the bike racks, either with their hands or with ropes and straps. At approximately 1:14 p.m., Hamner engaged with a tug-of-war with a Capitol Police officer and an officer from the Metropolitan Police Department over a bike rack that was being used as a barricade.
Additionally, at approximately 1:40 p.m., Hamner joined others in the mob in pushing a large metal sign into the defensive line formed by law enforcement officers.
Hamner was arrested on Nov. 9, 2021, in Colorado Springs. He later was indicted on a total of six charges, including five felonies. He pleaded guilty on May 17, 2022, to one of the felony charges, interfering with law enforcement officers during a civil disorder. He has pleaded not guilty to the remaining five charges and is awaiting further court proceedings.
Following his prison term, Hamner will be placed on three years of supervised release. He also must pay $2,000 in restitution.
This case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section. The U.S. Attorney’s Office for the District of Colorado assisted in the prosecution.
The case is being investigated by the FBI’s Denver Field Office, Colorado Springs Resident Agency and the FBI’s Washington Field Office, which identified Hamner as #61 in its seeking information photos. Assistance was provided by the Metropolitan Police Department and the U.S. Capitol Police.
In the 20 months since Jan. 6, 2021, more than 870 individuals have been arrested in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including over 265 individuals charged with assaulting or impeding law enforcement. The investigation remains ongoing.
Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.
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For more information about the U.S. Attorney's Office for the District of Colorado, visit: https://www.justice.gov/usao-co/pr
Follow the U.S. Attorney’s Office, District of Colorado, on Twitter USAO_CO for the latest news.
Chatham County man sentenced to federal prison for possession of child pornographyRead the Press Release
AUGUSTA, GA: A Chatham County sex offender has been sentenced to more than 10 years in prison after admitting he possessed child pornography.
Christopher Jason Shaw, 43, of Pooler, Ga., was sentenced to 125 months in prison after previously pleading guilty to Possession of Child Pornography, said David H. Estes, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge R. Stan Baker also ordered Shaw to pay $14,000 in restitution, to serve 25 years of supervised release after completion of his prison term, and to register as a sex offender. There is no parole in the federal system.
“Protecting our most vulnerable citizens from predators is a vital part of keeping our communities safe,” said U.S. Attorney Estes. “Our vigilant law enforcement partners continue to perform outstanding work in identifying these predators and putting them behind bars.”
As described in court documents and testimony, Shaw was a registered sex offender and on state probation in 2019 from a 2010 conviction in Georgia for charges including sexual exploitation of children. He also had a 2005 conviction in South Carolina for charges including committing a lewd act upon a child. An officer from the Georgia Department of Community Supervision, responding to a report that Shaw was in violation of the terms of his probation, visited Shaw’s residence and confirmed the violations.
The officer seized Shaw’s cell phone, and analysis by agents from the FBI and Georgia Bureau of Investigation found several hundred images of child sexual exploitation on the phone – many of them involving sexual abuse of infants and toddlers. Shaw then was federally charged with Possession of Child Pornography, and pled guilty in June.
“Shaw clearly did not learn his lesson from the past charges he was serving probation on involving child sexual exploitation,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “But now, thanks to assistance from our law enforcement partners, Shaw will spend a lengthy time in prison for his repeated crimes where he will no longer be able to violate the rights of innocent children.”
“The GBI will continue to work tirelessly to protect innocent victims of online exploitation,” said Michael Register, Director of the Georgia Bureau of Investigation. “We are grateful for the partnerships we maintain with our state and federal agencies to bring these predators to justice.”
The case was investigated by the FBI, the Georgia Bureau of Investigation, and the Georgia Department of Community Supervision, and prosecuted for the United States by Assistant U.S. Attorneys Jennifer A. Stanley and Project Safe Childhood Coordinator Tara M. Lyons.
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 800-843-5678, or https://report.cybertip.org/.
Charlottesville Armed Robbery Team Pleads GuiltyRead the Press Release
CHARLOTESVILLE, Va. – The final two defendants in a four-man robbery team that threatened both an Albemarle County woman and a Charlottesville man at gunpoint pleaded guilty Tuesday in federal court.
Corey Raymont Kinney, 48, and Quincy “Boosie” Brock, 27, both of Charlottesville, pled guilty to one count each of brandishing and possessing a firearm during a crime of violence. Brock also pled guilty to committing Hobbs Act robbery.
Adrian Chevarr Anderson, 39, and Markel Corevis Morton, 43, previously pleaded guilty to participating in the two robberies.
“Reducing violent crime in the Western District of Virginia is a cornerstone of this United States Attorney’s Office and we will continue to work with our local, state, and federal law enforcement partners to investigate and prosecute those who participate in violent, criminal behavior,” United States Attorney Christopher R. Kavanaugh said today. “These individuals showed blatant disregard for the well-being of others and for that they were held accountable.”
“Addressing violent crime in our communities remains a top priority for the FBI. Through our partnership with the Albemarle County Police Department and the United States Attorney's Office in the Western District of Virginia, we were able to remove four violent criminals from the community who will face significant sentences for their crimes,” said Stanley M. Meador, Special Against in Charge of the FBI’s Richmond Division. “Individuals with knowledge of violent crimes occurring in their communities are encouraged to contact law enforcement immediately -either call 911, your local police/sheriff, FBI Richmond at 804-261-1044, or send info to tips.FBI.gov.”
“The Albemarle County Police Department remains committed to collaborating with our local, state, and federal law enforcement partners, like the United State Attorney’s Office and the Federal Bureau of Investigation. This commitment to cooperation is vital to keeping the citizens, residents, and visitors of Albemarle County safe,” stated Colonel Sean Reeves, Chief of Police for Albemarle County.
According to court documents, Morton recruited Brock, Anderson, and Kinney to rob a local drug dealer with a promise to split $50,000 in cash he believed to be hidden in the drug dealer’s apartment in Albemarle County.
In August 2021, Brock, Anderson, and Kinney forced entry into the apartment and held a female victim at gunpoint as both the apartment and the female victim’s car were searched. During the robbery, Brock, Anderson, and Kinney took the victim’s phone and other personal items but did not find the $50,000.
When they returned empty-handed, Morton insisted they locate the drug dealer’s cash stash at a second location on Prospect Avenue in the City of Charlottesville. All four men were armed with firearms when they drove to the second location and stole a safe containing approximately $50,000. As they were leaving the apartment, Brock and Morton were intercepted by a man who was standing outside and they pointed their firearms at him before fleeing the scene.
The Albemarle County Police Department and the Federal Bureau of Investigation led the investigation of the case.
Assistant U.S. Attorneys Heather L. Carlton and Ronald M. Huber prosecuted the case for the United States.
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.
Camden County Man Sentenced to 130 Months in Prison for Fentanyl Trafficking and Illegally Possessing FirearmRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man with four prior felony convictions was sentenced to 130 months in prison for possessing with intent to distribute fentanyl and to illegally possessing a firearm, U.S. Attorney Philip R. Sellinger announced.
Tyquan Burrell, 30, of Camden, previously pleaded guilty by videoconference before U.S. District Judge Robert B. Kugler in Camden federal court to two counts of an indictment charging him with possession with intent to distribute more than 400 grams of fentanyl and illegal possession of a firearm by a convicted felon. Judge Kugler imposed the sentence on Sept. 22, 2022, in Camden federal court.
According to documents filed in this case and statements made in court:
On Oct. 1, 2020, law enforcement officers executing a search warrant at Burrell’s residence found 2,521 wax folds and three sandwich-sized clear plastic bags containing more than 300 grams of fentanyl, approximately $34,000 in U.S. currency, and a loaded handgun in a bedroom used by Burrell. That same day, Burrell was arrested in Camden County, New Jersey. A search incident to arrest found him to be in possession of 418 wax folds containing fentanyl.
In addition to the prison term, Judge Kugler sentenced Burrell to five years of supervised release.
This prosecution is part of the Violent Crime Initiative (VCI) in Camden. The Camden VCI was formed in January of 2020 by the U.S. Attorney’s Office for the District of New Jersey, the Camden County Prosecutor’s Office, and the Camden County Police Department for purpose of combatting violent crime in and around the Camden area. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to investigate and prosecute violent offenders who endanger the safety of the community. The VCI includes the U.S. Attorney’s Office, the Camden County Prosecutor’s Office, the Camden County Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the FBI, the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), the Drug Enforcement Administration (DEA), the U.S. Marshals, The U.S. Probation Office, the Camden County Sheriff’s Office, the New Jersey State Parole Board, the New Jersey State Police, the Rutgers University Police Department, and the Liberty Mid-Atlantic High Intensity Drug Trafficking Area (HIDTA) program.
U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Acting Special Agent in Charge Richard W. Reinhold; the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; the Camden County Prosecutor’s Office, under the direction of Prosecutor Grace C. MacAulay; the Gloucester Township Police Department, under the direction of Chief David J. Harkins; the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson; and the Winslow Township Police Department under Chief George M. Smith, with the investigation leading to today’s sentencing. He also thanked the Camden County Sherriff’s Office, under the direction of Sherriff Gilbert L. “Whip” Wilson; special agents of the ATF, Newark Field Division, under the direction of Special Agent in Charge Jeffrey L. Matthews; and officers of the N.J. State Police, under the direction of Col. Patrick J. Callahan, for their assistance with the case.
The government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.
Defense counsel: Thomas Young Esq., Assistant Federal Public Defender, Camden
Cairo, Georgia, Resident Sentenced to Prison for His Role in Major Drug Conspiracy Responsible for Distributing 100+ Kilos of MethRead the Press Release
ALBANY, Ga. – A southwest Georgia resident involved in a high-volume methamphetamine distribution ring was sentenced to prison this afternoon after admitting to his role in the conspiracy.
Joseph Jones aka Bae, 31, of Cairo, was sentenced to serve 360 months in prison to be followed by five years of supervised release by U.S. District Judge Leslie Abrams Gardner after he pleaded guilty to conspiracy to possess with intent to distribute methamphetamine. There is no parole in the federal system.
“Mr. Jones has been held accountable for his role in a significant drug distribution network responsible for pushing more than one hundred kilograms of methamphetamine in southwest Georgia,” said U.S. Attorney Peter D. Leary. “Law enforcement broke this substantial methamphetamine ring, which was feeding addiction and fostering misery in this region of the state.”
“The success of this case is the direct result of the effective partnership between our local, state and federal agencies. We will work tirelessly together to hold accountable drug dealers supplying our neighborhoods with poison. The GBI is dedicated to thoroughly investigating these crimes to lead to successful prosecution,” said GBI Director Michael Register.
According to court documents, GBI agents conducted a wiretap investigation into the drug distribution activities of Jones, beginning in March 2019. The investigation revealed that Jones and his co-defendants were engaged in the distribution of methamphetamine in southwest Georgia. Jones was taken into custody following a search of his Cairo residence on June 12, 2019. Inside the home, agents found a quantity of methamphetamine floating in the toilet and in the sewage line, $13,323 in cash, two handguns, digital scales and 16 cellular phones. In addition, written ledgers describing various transactions amounting to the distribution of 13 kilograms of methamphetamine were discovered in Jones’ vehicle.
A total of 16 co-defendants have been brought to justice in this case, including Jones; court records attribute this criminal drug distribution network to be responsible for distributing more than 100 kilograms of methamphetamine. For more information, please visit: https://www.justice.gov/usao-mdga/pr/federal-jury-convicts-cairo-georgia-man-his-role-100-kilo-meth-distribution-network.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Jones’ case was investigated by the GBI.
Assistant U.S. Attorney Leah McEwen prosecuted the case.
Business Partner of Art Dealer Inigo Philbrick Pleads Guilty to Defrauding Art Buyers and FinancersRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that ROBERT NEWLAND, the business partner of art dealer INIGO PHILBRICK, who specialized in post-war and contemporary fine art with galleries in London, United Kingdom, and Miami, Florida, pled guilty today before United States District Judge Sidney H. Stein to one count of conspiracy to commit wire fraud for perpetrating a multi-year scheme to defraud various individuals and entities in order to finance PHILBRICK’s art business. NEWLAND, a citizen of the United Kingdom, was arrested in the United Kingdom on February 23, 2022, and extradited from the United Kingdom to the United States on September 22, 2022. PHILBRICK has been sentenced to seven years in prison for the multi-year, $86 million fraud scheme.
U.S. Attorney Damian Williams said: “Robert Newland conspired with Inigo Philbrick to take advantage of the lack of transparency in the art market to defraud art collectors, investors, and lenders in order to finance Philbrick’s art business. Newland has now admitted his guilt and awaits sentencing for his role in perpetrating this extensive fraud.”
According to the allegations in the Complaint, Indictment, and statements made in court:
From approximately 2016 through 2019, to finance his art business, PHILBRICK engaged in a scheme to defraud multiple individuals and entities in the art market located in the New York metropolitan area and abroad (the “Fraud Scheme”). NEWLAND was PHILBRICK’s business partner and financial adviser and conspired with PHILBRICK to perpetrate the Fraud Scheme. NEWLAND and PHILBRICK made material misrepresentations and omissions to art collectors, investors, and lenders to access valuable art and obtain sales proceeds, funding, and loans. NEWLAND and PHILBRICK knowingly misrepresented the ownership of certain artworks, for example, by selling a total of more than 100%ownership in an artwork to multiple individuals and entities without their knowledge and by selling artworks and/or using artworks as collateral on loans without the knowledge of co-owners and without disclosing the ownership interests of third parties to buyers and lenders.
Over the years, PHILBRICK obtained over $86 million in loans and sale proceeds in connection with the Fraud Scheme. Artworks about which NEWLAND and PHILBRICK made these fraudulent misrepresentations in furtherance of the Fraud Scheme include, among others, a 1982 painting by the artist Jean-Michel Basquiat titled “Humidity,” a 2010 untitled painting by the artist Christopher Wool, and an untitled 2012 painting by the artist Rudolf Stingel depicting the artist Pablo Picasso.
In the fall of 2019, NEWLAND and PHILBRICK’s Fraud Scheme collapsed as various investors and lenders learned about the material misrepresentations and omissions PHILBRICK and NEWLAND had made.
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NEWLAND, 45, a U.K. citizen residing in the United Kingdom, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum prison term of 20 years.
The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
PHILBRICK, 35, a U.S. citizen formerly residing in the United Kingdom, pled guilty to one count of wire fraud on November 18, 2021. On May 23, 2022, United States District Judge Sidney L. Stein sentenced PHILBRICK to 84 months in prison and two years of supervised release. PHILBRICK was further ordered to pay a forfeiture of $86,672,790 and restitution of $82,592,367.
Mr. Williams praised the investigative work of the Federal Bureau of Investigation’s Art Crime Team. He also thanked the U.S. Department of Justice’s Office of International Affairs and the U.S. Marshals Service for their support and assistance in the defendant’s extradition.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Jessica K. Feinstein and Cecilia E. Vogel are in charge of the prosecution.
Bucks County Man Indicted on Federal Charges for Assaulting a Reproductive Healthcare Clinic EscortRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Mark Houck, 48, of Kintnersville, PA, was charged by Indictment 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 defendant was arrested and made his initial appearance in federal court on these charges earlier today.
According to court documents, the defendant is alleged to have twice assaulted a man because he was a volunteer reproductive health care clinic escort. The charges stem from two separate incidents both on October 13, 2021, which occurred at the Planned Parenthood Elizabeth Blackwell Health Center on Locust Street in Philadelphia, where Houck allegedly assaulted the victim, a 72-year-old man, identified in the Indictment as “B.L.,” because B.L. was a volunteer escort at the reproductive health care clinic. In the first incident, B.L. was attempting to escort two patients exiting the clinic, when the defendant forcefully shoved B.L. to the ground. In the second incident, the defendant verbally confronted B.L. and forcefully shoved B.L. to the ground in front of the Planned Parenthood center, causing injuries to B.L. that required medical attention.
“Assault is always a serious offense, and under the FACE Act, if the victim is targeted because of their association with a reproductive healthcare clinic, it is a federal crime,” said U.S. Attorney Romero. “Our Office and the Department of Justice are committed to prosecuting crimes which threaten the safety and rights of all individuals.”
“Put simply, violence is never the answer,” said Jacqueline Maguire, Special Agent in Charge of the FBI's Philadelphia Division. “Violating the FACE Act by committing a physical assault is a serious crime for which the FBI will work to hold offenders accountable.”
If convicted, the defendant faces a maximum possible sentence of 11 years in prison, three years of supervised release, and fines of up to $350,000.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Anita Eve and DOJ Trial Attorney Sanjay Patel of the Civil Rights Division.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Bronson Man Sentenced to more than 10 years in Federal Prison for KidnappingRead the Press Release
A man who kidnapped his ex-girlfriend was sentenced today, to more than 10 years in federal prison.
Zachary Smith, 21, from Bronson, Iowa, received the prison term after a March 25, 2022, guilty plea to kidnapping.
Evidence in this case revealed that, before the instant offense, on May 11, 2021, Smith sent emails to his ex-girlfriend pretending to be his own father, advising her that Smith had committed suicide on May 8, 2021, and telling her to come to his former residence to claim some of her property. The ex-girlfriend and another girl went to the residence, where Smith – armed with a BB gun -- was waiting for them. He locked and chained the door shut and would not let either woman leave. Law enforcement rescued the women, and a no contact order was issued against Smith.
On June 3, 2021, Smith violated the order of protection, when he hid in the back seat of his ex-girlfriend’s car at about 5:00 a.m., and waited for her to come out of her South Sioux City home. When she did, she was joined by a juvenile female. Smith lay hidden in the car as the two women drove to a near-by school. When the juvenile female left the car to join her athletic practice, Smith sprang on his ex-girlfriend. He threatened her with a B.B. gun, drugged her with homemade chloroform, and kidnapped her, bringing her ultimately to a home in rural Bronson, Iowa. Additionally, Smith told his victim that he had friends watching her family, and they would hurt her family if she resisted. Ultimately, the victim escaped and fled. She flagged down a passing motorist who happened to be her aunt, who was in the area searching for her.
Smith was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Smith was sentenced to 121 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. Smith is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the South Sioux City, Nebraska Police Department, the Sioux City, Iowa Police Department, the Woodbury County Sheriff’s Office, the Federal Bureau of Investigation, and Homeland Security Investigations. This case was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4068.
Follow us on Twitter @USAO_NDIA.
Boston Man Sentenced to Seven Years in Prison for Racketeering and Drug Trafficking ConspiraciesRead the Press Release
BOSTON – A Boston man was sentenced yesterday for racketeering (RICO) and drug trafficking conspiracies stemming from his involvement in the Boston-based street gang, NOB.
Joshua Teixeira, a/k/a “Trouble,” 27, was sentenced by U.S. District Court Judge Leo T. Sorokin to seven years in prison and three years of supervised release. In April 2022, Teixeira pleaded guilty to one count of RICO conspiracy and one count of conspiracy to distribute and to possess with intent to distribute controlled substances.
Teixeira is one of 10 defendants indicted in June 2020 as part of a federal sweep targeting numerous NOB street gang members and associates, all of whom have pleaded guilty to various charges and are scheduled to be sentenced in the upcoming months.
According to court documents, NOB – an abbreviation for the Norton/Olney/Barry streets in Dorchester – is a violent criminal enterprise whose members and associates are involved in numerous types of criminal activities throughout Massachusetts, including murders, attempted murders, armed robberies, drug trafficking, sex trafficking and illegal firearms offenses. In addition to multiple firearms and drugs recovered during the investigation, numerous contraband items including 11 firearms, over one kilogram of fentanyl (including over 2,000 fentanyl pills manufactured to appear as commercial oxycodone pills), a commercial pill press, over 15 pounds of marijuana and approximately $36,000 in cash were also seized.
Teixeira was an active and central member of the NOB gang who personally committed, planned and supported various crimes on behalf of the NOB gang including drug trafficking activities involving multiple pounds of marijuana. In May 2018, Teixeira drove with two other NOB members/associated into a rival gang territory during ongoing hostilities between the gangs. Teixeira was armed with a 9mm handgun and fired at least six rounds at a group of people in a residential neighborhood, leading to an exchange of gunfire. No one was hit by Teixeira’s gunfire. The Court determined this conduct constituted attempted murder and took it into consideration at sentencing.
First Assistant United States Attorney Joshua S. Levy; Boston Police Commissioner Michael Cox; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Douglas Bartlett, Acting U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; New Bedford Police Chief Joseph C. Cordeiro; Quincy Police Chief Paul Keenan; Randolph Police Chief Anthony Marag; Brockton Police Chief Brenda Perez; Stoughton Police Chief Donna McNamara; Suffolk County District Attorney Kevin Hayden; Suffolk County Sheriff Steven W. Tompkins; Plymouth County Sheriff Joseph D. McDonald, Jr.; Bristol County District Attorney Thomas M. Quinn III; and Norfolk County Sheriff Patrick W. McDermott made the announcement today. Assistant U.S. Attorneys Michael Crowley and Sarah Hoefle of the Organized Crime & Gang Unit prosecuted the case.
Boston Man Sentenced for Federal Firearm OffenseRead the Press Release
BOSTON – A Boston man was sentenced yesterday in federal court in Boston in connection with his illegal possession of ammunition.
Syrus Hampton, 32, was sentenced by U.S. District Court Judge Indira Talwani to 18 months in prison and 30 months of supervised release. The U.S. Attorney’s Office had requested 42 months in prison. In May 2021, Hampton pleaded guilty to one count of being a felon in possession of ammunition.
In January 2019, during a routine traffic stop by local law enforcement for a car lights violation, Hampton sped away from police and jumped out of his still-running minivan – causing the vehicle to run over a police officer’s foot and crash into two other cars, including one occupied by a pregnant woman and her children. Hampton was shortly apprehended and was found in possession of an Uzi-style machinegun firearm that had been made from a kit and bared no serial number (commonly known as a “ghost gun”) loaded with an extended magazine containing 20 rounds of ammunition and a bullet in the chamber. Hampton was prohibited from possessing ammunition due to a prior felony conviction punishable by more than one year in prison.
United States Attorney Rachael S. Rollins; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Commissioner Michael Cox made the announcement today. Assistant U.S. Attorneys Elianna J. Nuzum and Adam W. Deitch of Rollins’ Criminal Division prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Bloomfield Man Sentenced to 87 Months in Federal Prison for Drug and Gun OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that PHILLIP GARCIA, also known as “Flip,” 50, last residing in Bloomfield, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 87 months of imprisonment, followed by four years of supervised release, for narcotics distribution and firearm possession offenses.
According to court documents and statements made in court, an investigation by the FBI’s Northern Connecticut Gang Task Force revealed that Garcia sold cocaine, as well as fentanyl disguised as oxycodone pills, through a network of associates in the Hartford area. The investigation also revealed that Garcia unlawfully possessed firearms. Between July and December 2020, investigators made multiple controlled purchases of fentanyl pills and cocaine from Garcia and his associates. Investigators also acquired from Garcia two handguns, one of which was stolen, and firearm magazines.
Garcia was arrested on December 16, 2020. On February 14, 2022, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 40 grams or more of fentanyl and 500 grams or more of cocaine, and one count of possession of a firearm by a felon.
Garcia has been detained since his arrest.
Judge Shea also ordered Garcia to forfeit his 2018 Cadillac XTS, and $19,472 in cash.
The FBI’s Northern Connecticut Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
The case is being prosecuted by Assistant U.S. Attorneys Konstantin Lantsman and Brian Leaming, 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.
Austin-Area Man Sentenced to 48 Years in Federal Prison for Fraud and Money Laundering Violations in the Eastern District of TexasRead the Press Release
SHERMAN, Texas – A Leander man has been sentenced to 48 years in federal prison for fraud and money laundering violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
James Clark Nix, 73, was found guilty by a jury on April 21, 2022, of conspiracy to commit wire fraud, wire fraud, money laundering, and aiding and abetting. Nix was sentenced to 576 months in federal prison by U.S. District Judge Amos L. Mazzant on Sep. 22, 2022.
According to information presented at trial, James Nix and his son, Bradley Nix, used their businesses, AMIG and NECO, to defraud victim investors of at least $6 million, under the false promise of small business investments and high interest returns of up to 10 percent. Once in possession of the fraudulent funds, James Nix used the money for various expenses such as luxury homes, hotels, and vehicles. During the investigation, investigators lawfully seized a Maserati and Land Rover that were tied to James Nix’s fraudulent conduct. The jury convicted James Nix on all counts - conspiracy, wire fraud, and money laundering.
“James Nix conned hard working people out of their life savings in order to fund his luxurious lifestyle,” said U.S. Attorney Brit Featherston. “Nix left a trail of heartache and destruction through each of his victims, and this sentence ensures that he will never victimize another person again.”
“Mr. Nix’s conduct was uniquely sinister and deceptive. He obtained the trust of his clients, many of whom were his friends, over the course of decades. He manipulated this trust to obtain their life’s savings and 401ks, while promising them good investments that would provide them with a comfortable retirement. In reality, Mr. Nix was using this money to operate a Ponzi scheme and fund a life of luxury. Ultimately, Mr. Nix's lies and greed destroyed his clients’ financial futures and deprived them of their hard earned retirement,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “Investment fraud is a pervasive threat that affects all ages and demographics. We encourage the public to conduct due diligence before investing with an individual or business and review FBI online resources on business and investment fraud scams at fbi.gov.”
“Mr. Nix exploited his position as a personal accountant to gain the trust of investors, steal their hard-earned money, and unjustly enrich himself. His elaborate Ponzi scheme was like a ‘house of cards’ - the underlying structure fell apart and left investors in financial ruin,” said IRS Criminal Investigation Special Agent in Charge Christopher J. Altemus, Jr. of the Dallas Field Office. “This sentence reflects the egregiousness of Nix’s crimes and now Nix will spend the rest of his life in prison.”
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation and prosecuted by Assistant U.S. Attorneys from the Eastern District of Texas.
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Arizona Woman Sentenced to Six Years in Prison for Conspiracy to Damage the Dakota Access PipelineRead the Press Release
DES MOINES, IA – An Arizona woman was sentenced today in federal court to six years in prison for Conspiracy to Damage an Energy Facility. Ruby Katherine Montoya, age 32, was ordered to serve three years of supervised release to follow her prison term and pay $3,198,512.70 in restitution.
According to court documents, Montoya, and co-defendant Jessica Reznicek, as early as November 8, 2016, and continuing until May 2, 2017, conspired with other individuals to damage the Dakota Access Pipeline at several locations within the Southern District of Iowa, Northern District of Iowa, and the District of South Dakota. Specifically, Montoya admitted to damaging and attempting to damage the pipeline by: (1) using an oxyacetylene cutting torch to burn holes in the pipeline, and (2) setting fire to pipeline instrumentation and equipment in Mahaska, Boone, and Wapello Counties within the Southern District of Iowa.
U.S. Attorney Richard D. Westphal stated, “The sentence imposed today demonstrates that any crime of domestic terrorism will be aggressively investigated and prosecuted by the federal government. The seriousness of the defendant’s actions – that occurred multiple times, at different locations, resulting in over $3 million dollars in restitution – warranted the significant prison sentence imposed by the Court and should deter others who think of engaging in such criminal acts.”
Following the sentencing, FBI Omaha Special Agent in Charge Eugene Kowel said, “The sentence received by Ruby Montoya sends a clear message that those who commit violence through an act of domestic terrorism will be identified, investigated, and prosecuted. The FBI is committed to protecting the American people. We will continue to work with our law enforcement partners to bring domestic terrorists to justice.”
Montoya’s co-defendant, Jessica Reznicek, was sentenced to 96 months imprisonment on June 30, 2021.
This matter was investigated by the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Iowa Department of Public Safety, Fusion Center; Iowa State Fire Marshall; Des Moines Police Department; Sheriff’s Departments in Mahaska, Boone, Buena Vista, Cherokee, Jasper, Polk, Sioux, and Wapello Counties in Iowa; Lincoln County in South Dakota; and Minnehaha County in Minnesota. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Adams County Man Sentenced to 60 Months’ Imprisonment for Throwing A Molotov Cocktail at the Adams County CourthouseRead the Press Release
HARRISBURG—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Samson Yohe, age 30, of Gettysburg, Pennsylvania, was sentenced to 60 months in prison to be followed by three years of supervised release by U.S. District Court Judge Jennifer P. Wilson for malicious attempt to destroy a building by fire and explosive. Judge Wilson also ordered Yohe to pay restitution in the amount of $280.
According to United States Attorney Gerard M. Karam, on the evening of December 22, 2019, Yohe threw an incendiary device consisting of an antique bottle filled with an unidentified liquid, several matches, and a white cotton sock at a window of the Adams County Courthouse. The device did not ignite, but did damage the window causing $280 in damage.
The conviction was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Gettysburg Police Department. Assistant U.S. Attorneys Daryl F. Bloom and Scott R. Ford prosecuted the case.
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18-Year-Old Man Charged with High-Speed Flight from an Immigration CheckpointRead the Press Release
TUCSON, Ariz. – Oblin Jeremias Redondo-Lopez, 18, of Honduras, was arrested September 20, 2022, and charged by criminal complaint with High-Speed Flight from an Immigration Checkpoint and Illegal Entry into the United States. Redondo-Lopez had his initial appearance yesterday before United States Magistrate Judge Eric J. Markovich.
On Tuesday, a gold 2002 Buick Rendezvous drove through the United States Border Patrol checkpoint on West Arivaca Road near Amado, Arizona. The vehicle did not slow down or stop as required by the speed bumps, signage, and Arizona Department of Transportation regulations. Instead, the vehicle fled the checkpoint with agents in pursuit. The driver continued onto Interstate 10 traveling at an estimated 110 miles per hour in a 75 mile per hour zone when he was finally stopped by the Pinal County Sheriff’s Department on Interstate 10 near Picacho Peak. The driver was identified as Oblin Jeremias Redondo-Lopez.
A conviction for High-Speed Flight from an Immigration Checkpoint carries a maximum penalty of 5 years in prison, a fine of up to $250,000, or both.
A criminal complaint is simply the method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
Customs and Border Protection’s U.S. Border Patrol conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, is handling the prosecution.
CASE NUMBER: 22-00594MJ
RELEASE NUMBER: 2022-161_Redondo-Lopez
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Thursday 22 September 2022
West Virginia Man Charged with Federal Civil Rights Offenses for Sexual Assault of Two VictimsRead the Press Release
A former parole officer with the West Virginia Division of Corrections and Rehabilitation was arrested today after being charged in federal court with civil rights violations, obstruction of justice and making false statements to federal investigators.
Anthony DeMetro, 44, was charged in a seven-count indictment unsealed today, with five counts of acting under color of law to deprive individuals of their civil rights, one count of obstruction of justice and one count of false statements to federal investigators. The indictment alleges that, while DeMetro was acting in his official capacity as a parole officer, he sexually assaulted two victims on a total of five separate occasions. The indictment further alleges that DeMetro lied to a state investigator and to federal investigators about his sexual misconduct.
If convicted, DeMetro faces maximum penalties of life imprisonment on three of the civil rights counts, 20 years on the obstruction of justice count, five years on the false statements count and one year on each of the remaining civil rights counts.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney William S. Thompson for the Southern District of West Virginia and Special Agent in Charge Michael D. Nordwall of the FBI Pittsburgh Field Division made the announcement.
The FBI Pittsburgh Field Division investigated this case. Trial Attorneys Kathryn E. Gilbert and Nikhil Ramnaney of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Monica Coleman for the Southern District of West Virginia are prosecuting this case.
Anyone with information about Anthony DeMetro should contact the FBI’s Charleston Resident Agency at 304-346-2300.
An indictment is merely an allegation, and the defendant is presumed innocent unless proven guilty.
West Greenwich Man Detained in Seizure of Six Ghost Guns, Three Silencers, and AmmunitionRead the Press Release
PROVIDENCE – A West Greenwich man, a convicted felon prohibited from possessing a firearm and ammunition, is detained in federal custody after federal agents allegedly seized six “ghost guns,” three silencers, and more than one thousand rounds of ammunition from his home, announced United States Attorney Zachary A. Cunha.
It is alleged in court documents that in July, the United States Postal Inspection Service identified the residence of Walter Garbecki, 37, as being associated with at least seven purchases and deliveries of kits and firearm parts used to assemble “ghost guns,” firearms without serial numbers and other manufacturer or importer markings, rendering them difficult to trace by law enforcement officials. Additionally, it is alleged, Garbecki placed and received at least seven orders for various types of ammunition.
On September 20, 2022, agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the U.S. Postal Inspection Service executed a court-authorized search of Garbecki’s residence and seized four fully functioning ghost guns and two in various stage of assembly, three silencers, approximately 1,500 rounds of ammunition, and various parts and kits used to assemble “ghost guns.”
According to court records, Garbecki, was previously convicted in Rhode Island state court on charges of sale or possession of silencers; unlawful devices attached to a semi-automatic weapon allowing automatic fire; possession of a firearm while delivering or manufacturing a controlled substance; and drug trafficking. He was released from the Rhode Island Adult Correctional Institutions in September 2020 and is currently on state probation until September 2030.
Garbecki is charged by way of a federal criminal complaint with possession of firearms/ammunition by a felon and receive/possession of firearm silencers not registered. A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant United States Attorney Ronald R. Gendron.
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Vernon Man Sentenced to 33 Months in Prison for Illegal Gun PossessionRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that RONDELL CHAMBERS, 32, of Vernon, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 33 months of imprisonment, followed by three years of supervised release, for unlawfully possessing a loaded firearm.
According to court documents and statements made in court, on October 17, 2020, Hartford Police stopped a vehicle in which Chambers was a passenger in order to arrest Chambers on outstanding warrants. When Chambers stepped out of the vehicle, he dropped a satchel containing a loaded Bersa Firestorm .40 caliber pistol. Chambers was arrested and the firearm was seized.
Chambers’ criminal history includes multiple state felony convictions for drug and gun offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On May 27, 2022, Chambers pleaded guilty to unlawful possession of a firearm and ammunition by a felon.
Chambers, who is released on a $150,000 bond, is required to report to prison on November 11.
This matter was investigated by the Federal Bureau of Investigation’s Violent Crimes Task Force and the Hartford Police Department. The case was prosecuted by Assistant U.S. Attorneys Elena L. Coronado and David Sheldon through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. In May 2021, the Justice Department launched a violent crime reduction strategy strengthening PSN based on these core principles: Fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
United States Attorney for the District of Columbia Matthew M. Graves' Statement Regarding Identity Theft and Fraud Victim ResourcesRead the Press Release
With our ever-increasing use of online platforms, scammers continue to develop new and innovative ways to steal personal information from unsuspecting victims in order to commit fraud and identity theft. Whenever you are online, please be on the lookout for anything that appears to be an effort to trick you into either directly providing your personal information or providing access to your online accounts so that scammers can pore through your data on their own. If despite your best efforts, you fall victim to one of these crimes, our Office is providing a list of helpful resources to use to try to contain the damage from the theft:
https://www.justice.gov/usao-dc/identity-theft-victim-resources
In our efforts to pursue justice every day, our Office remains committed to devoting resources to the detection, investigation, and prosecution to the fullest extent of the law of those who try to steal personal information.
U.S. Attorney Urges the Public to Report Suspected Hurricane Fiona Relief Fraud and Cautions Those Who Would Seek to Illegally Profit from this DisasterRead the Press Release
SAN JUAN, Puerto Rico – United States Attorney W. Stephen Muldrow of the District of Puerto Rico today urged the public to report suspected fraud schemes related to disaster relief operations and federal funding for victims of Hurricane Fiona by calling National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or the NCDF's on-line portal for complaints at https://www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form.
In coordination with our federal and local law enforcement partners, the U.S. Attorney’s Office will investigate and prosecute hurricane relief schemes. The NCDF Hotline can receive and enter complaints into a centralized system that can be accessed by all U.S. Attorneys, as well as Justice Department litigating and law enforcement components to identify, investigate and prosecute fraud schemes.
United States Attorney Muldrow also cautioned those unscrupulous and predatory individuals and organizations who use this tragic event to take advantage of those in need and who seek to illegally profit from this natural disaster at the expense of the good and hard-working residents of Puerto Rico.
“The United States Attorney’s Office will aggressively prosecute those who commit disaster-related fraud, including those who willfully attempt to delay or disrupt the delivery of critical supplies to those in need, including water, gasoline, diesel fuel and other materials, so that they can unjustly enrich themselves,” said U.S. Attorney Muldrow. “We also take this opportunity to thank our first responders and those who have selflessly helped their neighbors and others in need. It is that spirit of resilience and compassion that typifies Puerto Rico.”
“Disaster Fraud and related acts of corruption hurt those who need it most in their time of greatest need. This should shock everyone’s conscience and move anyone who witnesses such acts to immediate action,” said Special Agent in Charge of the FBI San Juan Field Office, Joseph González. “The FBI is on alert, and we encourage anyone with information on disaster fraud and/or any related acts of corruption, to call 787-987-6500 or leave a tip online by visiting Tips.FBI.Gov - Don’t let criminals steal Puerto Rico’s chance to recover from the devastating effects of Hurricane Fiona.”
Some examples of disaster-related fraud schemes include:
- Impersonation of federal law enforcement officials
- Identity theft
- Fraudulent submission of claims to insurance companies and the federal government
- Fraudulent activity related to solicitations for donations and charitable giving
- Fraudulent activity related to individuals and organizations promising high investment returns from profits from recovery and cleanup efforts
- Price gouging
- Theft, looting, and other violent crime
Members of the public are reminded to apply a critical eye and do their due diligence before giving contributions to anyone soliciting donations on behalf of disaster victims. Solicitations can originate from e-mails, websites, door-to-door collections, mailings and telephone calls, and similar methods.
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Two Sentenced to Prison for Key Roles in Multi-State Methamphetamine Trafficking OrganizationRead the Press Release
CHARLESTON, W.Va. – Two men were sentenced to prison for roles in a drug trafficking organization (DTO) responsible for distributing large quantities of methamphetamine in Kanawha County, with one also sentenced for participating in a foiled Fourth of July 2021 murder scheme.
Ramon David Alston, 42, of Decatur, Georgia, was sentenced today to 12 years and six months in prison, to be followed by five years of supervised release, for conspiracy to distribute 500 or more grams of methamphetamine. Brian Dangelo Terry, 37, of Charleston was sentenced to 10 years in prison, to be followed by five years of supervised release, for conspiracy to distribute 500 or more grams of methamphetamine and for being a felon in possession of a firearm.
According to court documents and statements made in court, from 2020 until at least September 28, 2021, Alston sold 1-pound and multi-pound quantities of methamphetamine from his Georgia residence to individuals including co-defendants from Charleston, West Virginia, as part of the DTO. Alston admitted that he knew these customers intended to distribute methamphetamine in the Southern District of West Virginia.
Alston further admitted that co-defendants Terry and Jonathan Gregory Bush visited his residence separately on July 19, 2021, and that he sold Bush a kilogram of methamphetamine. Bush was later stopped by police and arrested after being found in possession of the methamphetamine. Alston admitted to having sold approximately 6 pounds of methamphetamine to Terry over the course of the DTO conspiracy.
Terry admitted to obtaining methamphetamine from Alston as well as from sources in Columbus, Ohio, for distribution in and around Charleston. Terry distributed more than 16 pounds of methamphetamine between March 2019 and August 3, 2021. Terry and co-defendant Treydan Leon Burks along with others pooled their money in order to obtain the drugs, used couriers to transport drugs and drug proceeds, and distributed the drugs to lower-level dealers and users.
Terry further admitted that he, Burks and co-defendants James Edward Bennett and Douglas Jonathan Wesley armed themselves at a Rand residence on July 4, 2021, and drove to Charleston’s West Side with the intent to murder someone. Alerted to the plot, police in marked cruisers converged on the area. The four men abandoned their vehicle in a Washington Street parking lot due to the increased police presence. Federal agents executed a search warrant on the vehicle and recovered four loaded firearms, including a Spike’s Tactical, Model SL15, .223-caliber pistol. Terry was aware that he was prohibited from possessing a firearm following felony convictions for malicious wounding on February 25, 2005, and possession with intent to deliver marijuana on March 8, 2011, both in Kanawha County Circuit Court.
The case is part of a long-term investigation of methamphetamine distribution that resulted in the conviction of 17 individuals for various drug and firearm offenses in three separate indictments. Alston, Terry and 12 others pleaded guilty, including Burks and Bennett. Wesley and remaining co-defendants Timothy Wayne Dodd and Leo Antoine Smith were convicted at trial.
United States Attorney Will Thompson made the announcement and commended the excellent investigative work by the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Marshals Service, the Charleston Police Department, the Metropolitan Drug Enforcement Network Team (MDENT), and the Putnam County Sheriff’s Office.
United States District Judge Joseph R. Goodwin imposed the sentences. Assistant United States Attorney Joshua Hanks prosecuted the case.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-172.
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Two New York Men Charged with Three Gunpoint Robberies and with Conspiracy to Commit Robberies in New Jersey, New York and PennsylvaniaRead the Press Release
NEWARK, N.J. – Two Brooklyn, New York men are charged with three gunpoint robberies of check cashing locations in different parts of New Jersey in 2021 and 2022 and with conspiracy to commit robberies in New Jersey, New York and Pennsylvania, U.S. Attorney Philip R. Sellinger announced.
Ramel Harris, 40, of Brooklyn, and Neville Brown, 38, of Brooklyn, are charged by complaint with one count of Conspiracy to Commit Hobbs Act Robbery, three counts of Hobbs Act Robbery, and one count of Using, Carrying, and Brandishing a Firearm During and in Relation to a Crime of Violence. Harris and Brown each made their initial appearance on September 6, 2022 before U.S. Magistrate Judge James B. Clark, III in Newark federal court and were detained.
According to documents filed in this case and statements made in court:
On several dates between January 2021 and January 2022, two individuals, later identified as Harris and Brown, attempted to rob a check cashing location in Nanuet, New York, and thereafter successfully robbed three check cashing locations in different parts of New Jersey while brandishing a firearm and using zip ties to restrain female employees at each location. During those robberies, Harris and Brown stole over $578,000.
During the subsequent investigation, law enforcement learned that the conspirators surveilled check cashing locations in the following locations: Mount Kisco, New York, Allentown, Pennsylvania and West Chester, Pennsylvania. Law enforcement collected an extensive amount of video surveillance footage that ultimately linked Harris and Brown to the robberies.
The Hobbs Act Robbery and Conspiracy to Commit Hobbs Act Robbery counts each carry a maximum potential penalty of 20 years in prison. The brandishing of a firearm during a crime of violence count carries a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years in prison, which must run consecutive to any other term of imprisonment imposed. Each count also carries a fine of up to $250,000 fine, or twice the gain or loss from the offenses, whichever is greatest.
U.S. Attorney Sellinger credited members of the FBI’s New Jersey field office, under the direction of Special Agent in Charge James E. Dennehy; members of the FBI’s New York field office, under the leadership of Assistant Director In Charge Michael J. Driscoll; members of the FBI’s Philadelphia field office, under the leadership of Special Agent in Charge Jacqueline Maguire; members of the Hackettstown Police Department, under the direction of Police Chief James Macaulay; members of the Old Bridge Police Department, under the leadership of Acting Chief of Police Donald F. Fritz, Jr.; members of the Parsippany-Troy Hills Police Department, under the leadership of Police Chief Richard Pantina; members of the Morris County Prosecutor’s Office, under the leadership of Prosecutor Robert J. Carroll; members of the Clarkstown Police Department, under the leadership of Police Chief Jeffrey Wanamaker; members of the Westchester County (New York) Department of Public Safety; and members of the Borough of West Chester (Pennsylvania) Police Department, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Benjamin Levin of the National Security Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Two Leaders and Member of Rollin’ 30s Crips Gang SentencedRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that defendants RANDY TORRES, a/k/a “Rico,” was sentenced to 39 and 1/2 years in prison and WALSTON OWEN, a/k/a “Purpose,” was sentenced to 39 and 1/2 years in prison today for their roles as leaders of the violent Rollin’ 30s Crips street gang. DERRICK RICHARDSON, a/k/a “J-ROCC,” who served under Torres in the Rollin’ 30s Crips, received a sentence of 24 and 1/2 years in prison today for shooting and killing Nestor Suazo, 25, on September 19, 2015, in the Bronx, New York. Richardson’s sentence was imposed to run concurrently with a previously imposed sentence of 11 years in prison for related Crips offenses. United States District Judge Victor Marrero imposed today’s sentences.
U.S. Attorney Damian Williams said: “Randy Torres and Walston Owen were leaders of a violent gang that terrorized the law-abiding citizens of the Bronx neighborhoods where the gang operated. Under their leadership, two individuals were killed, and others were caught in the crossfire of the gang’s shootings. One of those individuals, Nestor Suazo, was killed at Torres’s direction by Derrick Richardson. Nothing can undo the trauma experienced by his family and the many others affected by the defendants’ crimes, but justice requires that those responsible be held accountable. Today, Torres, Owen, and Richardson were rightly sentenced to decades in prison for their horrific crimes.”
According to the allegations contained in the Superseding Indictments, other documents in the public record, and the evidence at trial:
From at least in or about 2009 up to and including in or about 2017, in the Southern District of New York and elsewhere, RANDY TORRES, WALSTON OWEN, DERRICK RICHARDSON, and others were members or associates of a racketeering enterprise known as the “Rollin’ 30s,” also known as the “Harlem Mafia Crips” or “Dirt Gang.” In order to fund the enterprise, protect and expand its interests, and promote its standing, members and associates of the Rollin’ 30s committed, conspired, attempted, and threatened to commit acts of violence, including murder, attempted murder, and robbery; and they conspired to distribute and possess with intent to distribute narcotics.
TORRES, a “Big Homie,” described himself as “four levels from the top” of the Crips national leadership and oversaw the management of multiple Crips sets and hundreds of Crips members in New York City and elsewhere. TORRES was employed as a maintenance worker in a Bronx elementary school during part of the offense and used the school and its gym to hold gang meetings where he handled gang business. The evidence at trial showed that TORRES committed and ordered multiple acts of violence, including ordering a shooting in September 2015 that killed Nester Suazo, a/k/a “Smacc.” The shooting was carried out by RICHARDSON, a soldier in the Rollin’ 30s who served under Torres. RICHARDSON was captured on surveillance footage fleeing the scene of the murder and discarding the gun he used in the shooting.
OWEN was the leader of the “Stratford Avenue Rollin’ 30s,” a subset of the gang in the Bronx. As the head of that set, Owen stored guns for the gang, collected money, issued directives to younger or less powerful members, and participated in numerous acts of gang violence, including committing a shooting in May 2015 that injured two innocent bystanders and ordering a shooting that resulted in the March 2015 Bronx murder of another innocent bystander, Victor Chafla.
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TORRES and OWEN were convicted after trial before United States District Judge Victor Marrero in February 2022 of racketeering conspiracy offenses. OWEN was also convicted of attempted murder in aid of racketeering, assault resulting in serious bodily injury in aid of racketeering, and related firearms offenses. Those charges were brought in the case United States v. Torres, et al., 16 Cr. 809 (VM). As part of that same case, RICHARDSON previously pled guilty in January 2019 before Judge Marrero to narcotics conspiracy and racketeering conspiracy. In October 2021, RICHARDSON pled guilty in a related case to narcotics offenses in connection with Suazo’s homicide. Those charges were brought in the case Unites States v. Richardson, 20 Cr. 299 (VM).
In addition to the prison terms, Judge Marrero sentenced Torres, 41, of New York, to three years of supervised release, Owen, 38, of New York, to five years of supervised release, and Richardson, 29, of the Bronx, New York, to three years of supervised release.
Mr. Williams praised the outstanding investigative work of the New York City Police Department and the Department of Homeland Security, Homeland Security Investigations.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Anden Chow and Jacqueline C. Kelly are in charge of the prosecution.
Two Defendants Sentenced for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – LUIS RIVAS, age 59, a Colombian citizen who was living in New Orleans, and ANGEL SANTIAGO HERNANDEZ, age 49, a Colombian citizen who was living in Houston, were sentenced on September 21, 2022 before the Honorable Jane Triche Milazzo on charges of violating the Federal Controlled Substances Act, announced U.S. Attorney Duane A. Evans.
According to the court records, RIVAS, and HERNANDEZ each pleaded guilty to charges of possessing heroin and cocaine with the intent to distribute. HERNANDEZ admitted that he possessed approximately 3 kilograms of cocaine, a kilogram of heroin, and tens of thousands of dollars in cash during a traffic stop in August 2021. RIVAS admitted that he possessed with the intent to distribute a kilogram of heroin and several thousand dollars that police found at a residence in New Orleans where he was staying.
Judge Milazzo sentenced each defendant to 70 months in the Bureau of Prisons, to be followed by four years of supervised release. They were also ordered to pay a mandatory $100 special assessment fee.
This case was investigated by Special Agents of the Drug Enforcement Administration (DEA). The prosecution is being handled by Assistant United States Attorney David Haller.
Tucson Man Charged with Making a False Statement to Federal Agents During Investigation into Mass ShootingRead the Press Release
TUCSON, Ariz. – Last week, Josue Lopez Quintana, 25, of Tucson, Arizona, was charged by criminal complaint for Making a False Statement to Law Enforcement. Quintana had his initial appearance Monday before United States Magistrate Judge Eric J. Markovich.
On August 25, 2022, following a mass shooting in Tucson, Arizona that resulted in the death of four individuals, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) initiated an investigation into the acquisition of a firearm used in the shooting. According to the complaint, ATF was able to determine that the firearm’s lower receiver was purchased at a Federal Firearms Licensee (FFL) in Tucson, Arizona, by Quintana in November 2021. Quintana allegedly completed a form at the FFL stating that he was the true purchaser of the lower receiver, and that he was not acquiring the lower receiver on behalf of another person. On August 26, 2022, federal agents interviewed Quintana about the purchase, during which Quintana allegedly made false statements about the purchase of the lower receiver.
A conviction for Making a False Statement to Law Enforcement carries a maximum penalty of five years’ imprisonment, a $250,000 fine, or both.
A criminal complaint is merely an allegation of criminal conduct, not evidence. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
ATF is conducting the investigation in this case, with assistance from the Tucson Police Department and Homeland Security Investigations. The Financial Crimes and Public Corruption Section of the U.S. Attorney’s Office, District of Arizona, Tucson, is handling the prosecution.
CASE NUMBER: 22-00499MJ
RELEASE NUMBER: 2022-158_Quintana# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Three Business Owners Charged with Wiring Drug Trafficking Money to MexicoRead the Press Release
KANSAS CITY, Mo. – The owners of three money wiring businesses in the Kansas City metropolitan area are among five new defendants charged for their roles in a $4.7 million conspiracy to distribute more than 335 kilograms of methamphetamine and 22 kilograms of heroin, and to utilize wire transfers to send the drug-trafficking proceeds to Mexico.
Ana Lilia Leal-Martinez, 46, a citizen of Mexico residing in Overland Park, Kansas, Ana Paola Banda, 50, and Maria de Lourdes Carbajal, 53, both of whom are citizens of Mexico residing in Shawnee, Kan., Javier A. Alvarez, 24, of Phoenix, Arizona, and John A. Caylor, 53, of Kansas City, Mo., were charged in a 112-count superseding indictment returned under seal by a federal grand jury in Kansas City, Mo., on Tuesday, Sept. 20.
The superseding indictment replaces a 91-count indictment that was returned on June 1, 2022; it retains all of the original 39 defendants and charges, and includes five additional defendants and 21 additional counts. The superseding indictment was unsealed and made public today following the arrests and initial court appearances of the additional defendants.
Leal-Martinez, Banda, Carbajal, Alvarez and Caylor, along with all of the original defendants, are charged with participating in a conspiracy to distribute methamphetamine and heroin from Feb. 28, 2020, to June 1, 2022.
In addition to the drug-trafficking conspiracy, Leal-Martinez, Banda, and Carbajal – who each own a money wiring business – are charged with participating in a money-laundering conspiracy related to transporting or transferring the proceeds of the drug-trafficking conspiracy to Michoacán, Mexico. Leal-Martinez is the owner of Imagen Leal, located at 407 S. Parker in Olathe, Kan. Banda is the owner of La Bendicion 2, located at 2701 S. 47th St. in Kansas City, Kan. Carbajal is the owner of Azteca Imports, located at 11226 W. 75th St. in Overland Park, Kan.
Leal-Martinez, Banda, and Carbajal remain in federal custody pending a detention hearing. The government’s detention motion notes that drug-trafficking organizations that generate multi-million dollar revenues are unable to effectively operate without individuals who enable foreign drug suppliers to receive proceeds from controlled substances sold here in the United States. Money sent back to Michoacán, Mexico, further fuels the drug trade and attendant violence in communities in the United States and Mexico. Banda, Carbajal, and Leal-Martinez are citizens of Mexico unlawfully present in the United States, says the detention motion, and thus a flight risk.
In the motion for detention, the government states that investigators found numerous wire transfers that were sent in alias sender names, as directed by another member of the drug-trafficking organization, through these businesses during January, February, May, and June 2022 totaling approximately $138,914. Investigators believe this represents a very small portion of the actual drug proceeds sent by this organization.
On June 22, 2022, federal agents with IRS-Criminal Investigation and Homeland Security Investigations executed search warrants for evidence of money laundering at La Bendicion 2 and Azteca Imports. A search warrant had previously been executed at Imagen Leal.
The superseding indictment, like the original indictment, charges Mexican nationals Jose Jesus Sanchez-Mendez, also known as “Michoacano,” 41, Jesus Morales-Garcia, also known as “Don Jesus,” 43, Luis Eduardo Pineda-Zarao, 26, Juan Bernardo Galeana-Aguilar, 45, Baltazar Flores-Norzagaray, also known as “Sinaloa,” 50, Rafael Perez-Esquivel, 51, Jose Eliazar Valle-Rivera, 39, Uziel Morales-Baltazar, 31, Erick Fernando Martinez Contreras, also known as “Alex,” 34, Joel Enrique Roman, also known as “Pelon,” 44, Miguel Angel Juarez-Lopez, also known as “Chapo,” 47, Jonathan Zuniga-Villafuerte, 30, Sergio Armando Valencia-Ochoa, 36, Juan Humberto Lemus-Mejia, 24, Yuliana Del Carmen Perez Ciprian, 38, Trinidad Torres-Meza, 41, Miriam Veronica Bustos-Martinez, 37, and Liliana Valencia-Mendoza, 40, addresses unknown; Flor Gonzalez-Celestine, 52, of Kansas City, Mo.; and Jose Bernabe Zamora-Cardenas, also known as “Mufa,” 52, of Kansas City, Kan.
The superseding indictment, like the original indictment, also charges Tina Marie Cruces, 36, Lisbet Espino, 24, Frank Anthony Valdivia, 43, Melissa A. Bates, 55, and Monica L. McCubbin, 39, all of Kansas City, Mo.; Santiago Raul Mendieta-Sanchez, 41, a citizen of Honduras residing in Kansas City, Mo., Jennifer S. Lawson, 35, of Buckner, Mo.; Felton Stone Jr., 45, Donald R. Moses, also known as “Moe,” 51, Felipe Antonio Alcala, 30, Anthony C. Hughes, 37, Maria Nancy Valdez, 32, Ignacio Barragan-Vazquez, 32, Yvonne Guzman-Carpio, also known as “Morena,” 39, Kongmhink Her, 41, addresses unknown; Marco Antonio Salazar, also known as “Tono,” 29, and Nelson Alirio Garcia-Guerra, 28, both citizens of Guatemala, addresses unknown; Arantxa Sabrina Valderrama-Barros, also known as “Sabri,” 25, a citizen of Venezuela, address unknown; and Daniel Felipe Suarez-Reinoso, 30, a citizen of Colombia, address unknown.
Sanchez-Mendez, Zamora-Cardenas, Valencia-Ochoa, Valencia-Mendoza and Suarez-Reinoso, who were charged in the money-laundering conspiracy in the original indictment, are likewise charged in the superseding indictment.
Sanchez-Mendez and Morales-Garcia are also charged with engaging in a continuing criminal enterprise related to the drug-trafficking and money-laundering conspiracies and other offenses alleged in the indictment. The indictment alleges Sanchez-Mendez and Morales-Garcia occupied a position of organizer, supervisor, or manager of the ongoing criminal enterprise, from which they obtained substantial income.
The federal indictment charges various defendants in various counts of distributing heroin and fentanyl, distributing methamphetamine, possessing methamphetamine and heroin with the intent to distribute, possessing firearms in furtherance of a drug-trafficking crime, being an illegal alien in possession of a firearm, being a felon in possession of a firearm, money laundering, reentry by an illegal alien, and using cell phones to facilitate drug-trafficking crimes.
The indictment also contains forfeiture allegations that would require the defendants to forfeit to the government $4,718,700, which represents the proceeds of the alleged drug-trafficking conspiracy and criminal enterprise. The indictment alleges the conspiracy involved the distribution of more than 335.5 kilograms of methamphetamine, with an average street price of $300 per ounce, and more than 22.1 kilograms of heroin, with an average street price of $1,500 per ounce.
The forfeiture allegations would also require the defendants to forfeit to the government $277,440 that was seized by law enforcement officers from a vehicle driven by Suarez-Reinoso and $114,863 that was seized by law enforcement officers while executing search warrants at four Kansas City, Mo., residences.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorneys Byron H. Black, Patrick C. Edwards, and Mary Kate Butterfield. It was investigated by Homeland Security Investigations, U.S. Customs and Border Protection, the Drug Enforcement Administration, the Jackson County Drug Task Force, IRS-Criminal Investigation, the Kansas Bureau of Investigation, the Kansas City, Mo., Police Department, the Kansas City, Kan., Police Department, the Missouri State Highway Patrol, the Kansas Highway Patrol, the Independence, Mo., Police Department, the Minnesota Bureau of Criminal Apprehension, the Minnesota State Patrol, the Olmsted County, Minn., Sheriff’s Office, the Texas Department of Public Safety, the FBI, the Clay County, Mo., Sheriff’s Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service.
Organized Crime and Drug Enforcement Task Force
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
KC Metro Strike Force
This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
Straw Purchaser Sentenced to 58 Months in Federal PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN — David Tillman Deloach, 39, from Kalamazoo, Michigan was sentenced to serve 58 months in the Federal Bureau of Prisons for using a stolen identity to illegally purchase 28 handguns. Chief U.S. District Judge Hala Y. Jarbou also imposed 3 years of supervised release following his release from custody.
U.S. Attorney Mark Totten stated, “Mr. Deloach’s crimes are serious. By using another person’s identity over the course of approximately five months to purchase a cache of handguns, Mr. Deloach is fueling the epidemic of violence plaguing our communities. Mr. Deloach is arming convicted felons, like himself, who are legally prohibited from possessing firearms. My office, working with the ATF, will continue to target individuals who are straw purchasing firearms.”
A Special Agent from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Chicago Field Division began investigating Mr. Deloach after he was stopped by Indiana State Police for traffic violations and during a search of his car, troopers found two handguns. As a convicted felon, Mr. Deloach was prohibited from possessing any firearms. Three months later, Mr. Deloach was a passenger in a car stopped by Chicago Police, in which officers found five handguns. The ATF Special Agent discovered that between March and July 2021, Mr. Deloach, a convicted felon, used a stolen identity to purchase 28 handguns from three licensed gun stores in Western Michigan. Only three of these pistols have been seized by police; the location of vast majority of the handguns purchased by Mr. Deloach remains unknown.
On September 20, 2022, Mr. Deloach pleaded guilty to aggravated identity theft, being a felon in possession of firearms, and making false statements during the purchase of firearms. In sentencing Mr. Deloach to serve almost 5 years in federal prison, Judge Jarbou expressed her desire to protect the community and send a strong message of deterrence to others.
“Straw purchasers play a pivotal role in enabling the unlawful possession of guns and the violence that can follow,” said ATF Special Agent in Charge of the Chicago Field Division Kristen de Tineo. “ATF, in collaboration with our local, state and federal partners, is committed to working together to stop the flow of guns to individuals who cannot legally purchase them.”
This case was investigated by the ATF as part of the Department of Justice’s Project Safe Neighborhoods, a nationwide initiative to reduce violent crime. The U.S. Attorney’s Office, county prosecutor’s offices, and federal, state, local, and tribal law enforcement work closely together to identify and prosecute individuals responsible for driving violent crime in our communities to make neighborhoods safer for everyone. Individuals with information or concerns about violent crime or firearms offenses should contact local law enforcement. For more information about Project Safe Neighborhoods, visit: https://www.justice.gov/psn.
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Statement from United States Attorney Zachary A. Cunha Regarding United States v. JosephRead the Press Release
BOSTON – United States Attorney Zachary A. Cunha announces that, in accordance with an agreement reached with Massachusetts state District Court Judge Shelley M. Richmond Joseph, Judge Joseph has today referred herself to the Massachusetts Commission on Judicial Conduct, a forum that is designed to investigate and address judicial misconduct and to make final recommendations on discipline to the Supreme Judicial Court of Massachusetts, the state’s highest judicial body. As part of this agreement, Judge Joseph has also made factual admissions that the Commission can consider as part of its review, along with the public allegations previously made in this case.
Former court officer and co-defendant Wesley MacGregor, who is no longer employed by the Massachusetts state court system, has entered into a deferred prosecution agreement with the United States with respect to the single count of perjury with which he is charged.
In light of these agreements, the United States has filed a motion to dismiss three of the four counts of the pending indictment, and to defer prosecution on the final count against Mr. MacGregor. This will resolve the entirety of the pending federal prosecution.
“This case is about the conduct of a sitting state court judge, on the bench, in the course of her judicial duties. Its purpose has been to shed light on, and, as warranted, to secure accountability for that conduct,” said U.S. Attorney Cunha. “After I was assigned to oversee this matter, I undertook a full and comprehensive review of the evidence, the applicable law, and relevant equitable and prudential factors. Having done so, I have concluded that the interests of justice are best served by review of this matter before the body that oversees the conduct of Massachusetts state court judges, rather than in a continued federal criminal prosecution. The requirement that Judge Joseph refer herself to the Massachusetts Commission on Judicial Conduct and make certain factual admissions will ensure that review takes place.”
Judge Joseph and Mr. MacGregor were indicted in April 2019 in the District of Massachusetts on obstruction of justice charges for allegedly preventing an ICE Officer from taking custody of an alien defendant. Mr. MacGregor was also charged with one count of perjury.
Mr. Cunha, the United States Attorney for the District of Rhode Island, was assigned to oversee this matter by the Department of Justice upon recusal of the U.S. Attorney for the District of Massachusetts.
St. Louis County Man Admits Drug / Gun ChargeRead the Press Release
ST. LOUIS –A man from St. Louis County, Missouri on Thursday admitted involvement in a gun deal that turned into a police chase after a shooting.
Michael Joseph Monroe, 25, pleaded guilty in front of U.S. District Judge Matthew T. Schelp to one felony count of conspiracy to possess a firearm in furtherance of drug trafficking.
On Aug. 21, 2019, during a joint investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Louis County Police Department, Monroe sold a 9mm pistol for $325 to someone near a market in Dellwood.
Treyvon Perry, 20, of St. Louis, was in the passenger seat of the car, a black Audi A6 with heavily tinted windows and an Illinois temporary license tag. He was armed.
Investigators then learned that shortly before the gun deal, the passenger of a black Audi A6 matching the description of Monroe’s car fired multiple shots at another car on westbound Highway I-270 near Old Halls Ferry Road. The shooting victim’s vehicle was hit six times, including three times directly underneath the left driver’s side door.
Police soon located the Audi again, and Monroe fled, reaching speeds in excess of 100 mph in a chase that lasted about 12 miles before he crashed. During the chase, Monroe forced a marked police vehicle off the road.
Police found fentanyl, cocaine base, oxycodone and a mixture of other drugs in the car, as well as a single bullet.
Perry pleaded guilty in July to the same charge as Monroe. He is scheduled to be sentenced October 27. Monroe is scheduled to be sentenced December 20.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Louis County Police Department. Assistant U.S. Attorney Paul D’Agrosa prosecuted the case.
Springfield, Illinois, Man Sentenced to 42 Months’ Imprisonment for Possessing a Firearm as a Felon and COVID-19 FraudRead the Press Release
SPRINGFIELD, Ill. – A Springfield, Illinois, man, Carlos Wright, 32, of the 1800 block of 11th Street, was sentenced on September 21, 2022, to concurrent terms of 42 months’ imprisonment for possession of a firearm by a felon and 24 months’ imprisonment for wire fraud and false statements on loan applications, to be followed by concurrent three-year terms of supervised release. Additionally, Wright must pay restitution in the amount of $46,666.
At Wright’s sentencing hearing, U.S. District Judge Sue E. Myerscough found that Wright knowingly possessed a firearm, that is, a Century Arms Ras4, at a time when he knew he was a felon and was on probation. Additionally, Judge Myerscough found that Wright provided false information on applications to obtain pandemic Paycheck Protection Program (“PPP”) loans. Wright received a total of $41,666.00 in loan funds.
At the sentencing hearing, the government presented evidence that Wright does not own or operate any business and was not employed when he submitted the false applications. Further, at the time of his arrest for possessing a firearm as a felon, Wright had been driving around with the loaded firearm in the passenger seat.
A federal grand jury returned an indictment charging Wright with the weapons charge in June 2021 and returned a second indictment charging Wright with the fraud offenses in December 2021. Wright pleaded guilty in April 2022.
Wright faced the following statutory penalties: 1) for possession of a firearm as a felon: not more than 10 years in prison, not more than a $250,000 fine, and not more than three years of supervised release; 2) for wire fraud: not more than 20 years in prison, not more than a $250,000 fine, not more than three years of supervised release, and restitution in an amount ordered by the Court; and 3) for false statements on a loan application: not more than 30 years in prison, not more than five years of supervised release, not more than a $1,000,000 fine, and restitution in an amount ordered by the Court.
“We very much appreciate the efforts of law enforcement to remove firearms from the hands of those not legally permitted to possess them,” said Assistant U.S. Attorney Sierra Senor-Moore. “Additionally, we hope those who improperly obtained some of the limited funds available to help businesses during the pandemic realize the detriment they caused to their own community.”
“The U.S. Secret Service remains committed to investigating and arresting those that engage in crimes that undermine the integrity of the U.S. financial and payment systems,” said Stephen Webster, the Resident Agent in Charge of the U.S. Secret Service’s Springfield, Illinois, Office.
The investigation of the firearm charge was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Springfield Police Department. The wire fraud and false statements on loan application charges were investigated by the U.S. Secret Service. Assistant U.S. Attorney Sierra Senor-Moore represented the government in the prosecution.
Spanish Fork Man and His Two Businesses Charged with Wire Fraud and Money Laundering Offenses.Read the Press Release
SALT LAKE CITY – James Wolfgramm, aka Semisi Niu, aka James Vaka Niu, 43, of Spanish Fork, and two of his businesses, Bitex LLC (Bitex), and Ohana Capital Financial, Inc. (OCF), have been charged by a federal grand jury in the District of Utah with seven felony counts in connection with multiple financial fraud schemes. In the indictment, Wolfgramm is charged with five counts of wire fraud and two counts of money laundering. Bitex is named in two wire fraud counts. OCF is named in two wire fraud counts, as well as the two money laundering counts.
According to the allegations contained in the indictment, since at least 2018, Wolfgramm represented himself on social media and in private communications as a multimillionaire who made his fortune in cryptocurrency. To gain trust with victims and attract them to his businesses, Wolfgramm used images of cryptocurrency wallets holding millions of dollars’ worth of cryptocurrency, a suitcase full of cash, and social media posts of expensive sports cars Wolfgramm claimed to own. However, some of these images were believed to have been taken from websites and social media feeds of others
The indictment further alleges that Wolfgramm and Bitex collected nearly $1.7 million from two victims by purporting to sell a high-powered cryptocurrency mining machine – the “Bitex Blockbuster” – that did not actually exist. According to the indictment, Wolfgramm and Bitex displayed one of these purported machines in Bitex’s office space, connected to a monitor that appeared to display the machine’s real-time mining operations. In reality, the machine was fake, and the monitor displayed a pre-recorded loop that simply gave the appearance of mining activity.
The indictment also alleges that Wolfgramm and OCF marketed the business with the motto “Banking the Unbankable” and purported to offer financial services to entities ineligible for traditional bank accounts. According to the indictment, OCF’s websites falsely claimed to have a Board of Advisors and falsely promised that OCF customer funds were bonded. Under these pretenses, OCF received millions of dollars from customers who believed their money would be kept on deposit until the customers directed the release of their funds. Instead, Wolfgramm and OCF spent these funds on unrelated business expenses, including in one instance, providing a refund to a prior, unrelated depositor.
In the final scheme alleged in the indictment, Wolfgramm fraudulently agreed to purchase the Sports City complex and land in Draper for $15 million in 2021. Wolfgramm took possession of the property and took over billing for all Sports City customers – collecting close to $160,000 – without ever paying any utilities or expenses on the property and without making any of the promised payments to the seller on the sales contract. As part of the fraud, Wolfgramm gave the victims a $1 million check that bounced. Wolfgramm later claimed to have paid more than $255,000 in taxes for the property. According to the indictment, however, that payment failed, and Wolfgramm knew the account from which it was purportedly drawn had insufficient funds.
Wolfgramm, Bitex, and OCF are set to be arraigned in federal court on these charges.
If you believe you have been a victim of this crime, please call the FBI at (801) 579-1400.
Assistant United States Attorneys Aaron Clark and Stewart Young are prosecuting the case, and special agents from the FBI are conducting the investigation.
Allegations are not findings of guilt, and all defendants are presumed innocent until proven guilty at trial.
South Carolina Man Convicted of COVID-19 Relief FraudRead the Press Release
A federal jury in Atlanta convicted a South Carolina man today 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.
According to court documents and evidence presented at trial, Travis Crosby, 32, of Wellford, 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 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 Jan. 10, 2023, and faces a maximum penalty of 30 years in prison for conspiracy to commit bank fraud, bank fraud, and making a false statement to a bank, and 20 years for money laundering. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
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 Fraud Section and the U.S. Attorney’s Office for the Northern District of Georgia. All other defendants pleaded guilty prior to trial. To date, authorities have recovered approximately $1.2 million of the stolen money.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge Amaleka McCall-Brathwaite of the U.S. Small Business Administration, Office of Inspector General (SBA-OIG); and Special Agent in Charge Mark Morini Jr. of the U.S. Treasury Inspector General for Tax Administration (TIGTA) made the announcement.
The FBI Atlanta Field Office; the SBA-OIG; and the TIGTA investigated the case.
Trial Attorney Matthew Reilly of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Christopher J. Huber for the Northern District of Georgia are prosecuting the case and Trial Attorney Michael P. McCarthy of the Criminal Division’s Fraud Section and Special Assistant U.S. Attorney Diane D. Schulman for the Northern District of Georgia provided significant assistance.
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.
Sleep and Respiratory Equipment Manufacturer to Pay $1.2 Million to Resolve Allegations of Unlawful KickbacksRead the Press Release
Philips RS North America LLC, formerly known as Respironics, Inc. (“Respironics”), a nationwide manufacturer of sleep and respiratory durable medical equipment (“DME”), has agreed to pay $1,283,825.40 to settle allegations that it unlawfully induced referrals for its equipment in violation of the False Claims Act and Anti-Kickback Statute.
The government specifically alleged that, between December 2015 and December 2016, Respironics helped a DME supplier procure a twelve-month, interest-free loan that was fully guaranteed by Respironics. Under the arrangement, Respironics bore the full financial risk of non-collection on the loan in the event the DME supplier defaulted on the loan. The United States contended this arrangement violated the Anti-Kickback Statute and, in turn, the False Claims Act.
“Illegal kickbacks in our federal healthcare system create an unfair marketplace and the potential for medical decisions to be made based on financial incentive rather than what’s best for the patient,” said U.S. Attorney Timothy Duax. “Our office is committed to the full and fair enforcement of the Anti-Kickback Statute and False Claims Act.”
In addition to the civil settlement, Respironics entered into a five-year Corporate Integrity Agreement (CIA) with HHS-OIG. The CIA requires Respironics to implement and maintain a robust compliance program that includes, among other things, review of arrangements with referral sources and monitoring of Respironics’ sales force. The CIA also requires Respironics to retain an independent monitor, selected by the OIG, to assess the effectiveness of Respironics’ compliance systems.
This civil matter arose from an action brought under the whistleblower provisions of the False Claims Act. Pursuant to that Act and the settlement agreement, the whistleblower will share in the United States’ financial recovery.
The claims asserted against Respironics are allegations only; there was no determination or admission of liability.
The case was handled by Assistant United States Attorneys Jacob A. Schunk and Matthew K. Gillespie.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-cv-12-LTS-KEM.
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Sioux City Man Sentenced to Federal Prison for Illegal Possession of a FirearmRead the Press Release
A man who illegally possessed a firearm was sentenced today to more than 3 years in federal prison.
David Thompson, 46, from Sioux City, Iowa, received the prison term after an April 21, 2022, guilty plea to being a prohibited person in possession of a firearm. Thompson was previously convicted of the following felonies: (1) furnishing a controlled substance to an Inmate on March 19, 2010; (2) forgery on March 19, 2010; and (3) domestic abuse assault on January 19, 2020, all in the Woodbury County, Iowa District Court. Each of these convictions prohibit Thompson from lawfully possessing a gun. Additionally, Thompson had been convicted of a domestic abuse misdemeanor, and admitted to being an illegal user of drugs. Both of these facts also prohibited Thompson from lawfully possessing a gun.
Evidence in this case showed that on December 31, 2021, Thompson was drinking alcohol, smoking marijuana, and was upset. During an argument, Thompson went outside to the front yard of the residence and fired a pistol into the sky 11 times while in a crowded urban area. Family members, including five juveniles were present inside the residence. Thompson admitted the firearm was his, that he was a felon, and that he was using controlled substances, mainly marijuana.
Thompson was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Thompson was sentenced to 42 months’ imprisonment and must pay a special assessment of $100. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. Thompson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Sioux City, Iowa Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4013. Follow us on Twitter @USAO_NDIA.
Sheldon Man to Federal Prison for Illegal Possession of a FirearmRead the Press Release
Clinton Kreykes, 40, from Sheldon, Iowa, was sentenced on September 21, 2022, to two years in federal prison for illegal possession of a firearm by a prohibited person.
On March 23, 2022, Kreykes pled guilty to possession of a firearm by a prohibited person. At the plea and sentencing hearings, evidence showed that Kreykes was previously convicted of a felony offense, Burglary–3rd degree, and was a methamphetamine user. Both prohibit a person from legally possessing a gun. Evidence showed that on September 16, 2021, as part of Kreykes’ Iowa probation conditions, a compliance check was conducted at Kreykes’ camper in Sibley, Iowa. The probation officer located drug paraphernalia, and Kreykes was arrested. A search warrant was then issued and executed on the camper where law enforcement located loose prescription pills, a small baggy of methamphetamine, a Mossberg 20-gauge shotgun, shotgun shells, and additional items related to drug use.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Kreykes was sentenced to 24 months’ imprisonment and must serve a three-year term of supervised release following imprisonment. There is no parole in the federal system. Kreykes remains in custody of the United States Marshal until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by Osceola County Sheriff’s Office and Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4078. Follow us on Twitter @USAO_NDIA.
Satsuma Woman Sentenced to Two Years in Prison for EmbezzlmentRead the Press Release
MOBILE, AL – A Satsuma woman was sentenced this week to two years in prison for stealing money from her former employer.
According to court documents, Angela Clifton, 43, was the chief financial officer for a manufacturing company in Satsuma. In this role, Clifton had authorization to use multiple corporate credit cards for legitimate business expenses, and she was also in charge of the company’s payroll and 401k plan.
In 2018, the company discovered that Clifton, then the company’s Controller, had made over $25,000 worth of Amazon purchases for personal using corporate credit cards. None of these purchases were legitimate business expenses. Prior to her resignation, Clifton paid some of this money back to the company. However, after her resignation, an audit was conducted and the company discovered that Clifton was not only making personal purchases with the corporate credit cards, but also fraudulently receiving 401k matches from the company when she was not contributing to her plan, and was issuing to herself unauthorized paychecks and bonuses. In total, the company discovered that Clifton abused her role as Controller and fraudulently obtained over $200,000 in money and personal items between 2012 and 2018.Clifton pleaded guilty to three counts of wire fraud. At her sentencing hearing, Clifton testified and contested the restitution amount claimed by the company. The current Director of Finance for the company also testified as to the restitution amount. Senior Judge Callie V.S. Granade will determine the final restitution owed. The company’s CEO explained to the Court that Clifton’s actions not only damaged the company financially, but also severely damaged the culture of trust that once existed in his small business.
Clifton will serve 24 months in federal prison followed by three years of supervised release. She will also be ordered to pay full restitution to the victim company.
This case was investigated by the United States Secret Service Office in Mobile.Assistant U.S. Attorneys Christopher Bodnar and Marjorie Vincent-Tripp prosecuted the case on behalf of the United States.
Rhinelander Man Sentenced to 25 Years’ Imprisonment for Child Sex TraffickingRead the Press Release
United States Attorney Gregory J. Haanstad of the Eastern District of Wisconsin announced that on September 21, 2022, Paul S. Osterman (age: 36) of Rhinelander, Wisconsin, was sentenced to 25 years in federal prison by Senior District Judge William C. Griesbach
Osterman previously pled guilty to “sex trafficking of a child under the age of 14 years-old” in violation of Title 18, United States Code, Section 1591(a)(1). Osterman used social media applications and public wi-fi “hotspots” to communicate with children, often requesting to exchange money for sexual acts. In July 2019, Osterman travelled from his home in Rhinelander to the south side of Chicago, where he lured a minor with whom he had been communicating online into his vehicle. He then engaged in sexual acts with the child in exchange for money. Further investigation revealed that Osterman attempted or performed sexual acts with several minors throughout Wisconsin, Illinois, and Minnesota.
At the sentencing hearing, Judge Griesbach noted the horrendous nature of the crime and the strong need to deter Osterman from engaging in further abuse. The judge noted that Osterman’s crimes were not made in haste and that Osterman had “committed despicable acts over a lengthy period of time.” Upon the completion of his federal prison sentence, the defendant will serve the remainder of his life on supervised release. He will also be required to register as a sexual offender under state and federal law.
This case was investigated by the Wisconsin Department of Justice Division of Criminal Investigation, the Oneida County Sheriff’s Office, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Abbey M. Marzick and Daniel R. Humble.
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 U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Renton, Washington, man pleads guilty to unlawful possession of destructive devicesRead the Press Release
Seattle – A 34-year-old Renton, Washington, man pleaded guilty today in U.S. District Court in Seattle in connection with the plot to burn the Seattle Police Officers Guild building in downtown Seattle in September 2020, announced U.S. Attorney Nick Brown. Justin Christopher Moore will be sentenced by U.S. District Judge Lauren King on December 21, 2022.
According to the plea agreement, Moore admits he made and carried a box of 12 Molotov cocktails in a protest march to the Seattle Police Officers Guild (SPOG) building on Labor Day, September 7, 2020. Ultimately the marchers were moved away from the building in downtown Seattle, when police smelled gasoline and grew concerned about the intentions of protestors. The box containing the 12 gasoline devices was found in the parking lot next to the SPOG building. Using video from that day and from other protests, as well as information from the electronic devices of other co-conspirators, Moore was confirmed as the person seen carrying the box of destructive devices.
In June 2021, law enforcement executed a search warrant at Moore’s residence. They seized clothing that is consistent with the images of what Moore was wearing when he carried the Molotov cocktails. From the basement storage area they also recovered numerous items that are consistent with manufacturing explosive devices. Law enforcement recovered a notebook in which Moore had made entries related to the manufacturing of destructive devices and the ingredients necessary.
Unlawful possession of a destructive device is punishable by up to 10 years in prison.
The case was investigated by the FBI, the Bureau of Alcohol, Tobacco, Fireworks & Explosives (ATF), and the Seattle Police Department.
The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
Putnam County Woman Pleads Guilty to Federal Fraud CrimesRead the Press Release
HUNTINGTON, W.Va. – Laura Danielle Jackson, 32, of Hurricane, pleaded guilty today to two counts of mail fraud and one count of aggravated identity theft.
According to court documents and statements made in court, on September 17, 2018, Jackson was working at a South Charleston business when she obtained the personal identification information of an individual who applied for employment there. Between September 18, 2018, and September 27, 2018, Jackson applied for and received two separate credit cards with this individual’s stolen information and had the fraudulent credit cards mailed to her Hurricane residence. Jackson admitted that she activated the cards and purchased $10,626.70 in goods, merchandise and other items of value with them.
Jackson is scheduled to be sentenced on December 19, 2022, and faces a maximum penalty of 42 years in prison, six years of supervised release, and a $750,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Secret Service, the South Charleston Police Department, the Putnam County Sheriff’s Department and the West Virginia State Police.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Ryan Blackwell is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-16.
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Pittsburgh Felon Sentenced to 12½ Years in Prison for Drug and Gun Law ViolationsRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 12½ years (152 months) of imprisonment on his conviction of federal narcotics and firearms violations, United States Attorney Cindy K. Chung announced today.
Chief United States District Judge Mark Hornack imposed the sentence yesterday on James W. Johnson, age 37, formerly of the City’s Glen Hazel section.
According to information presented to the court and at the trial, on Dec. 30, 2016, Johnson was observed by Pittsburgh Bureau of Police officers selling fentanyl to an individual out of an abandoned residence on Renova Street in the Hazelwood section of Pittsburgh. Johnson is associated with the Hazelwood Mob gang that operates in that area. The law enforcement officers stopped the purchaser after the sale and recovered the purchased drugs. The individual identified the defendant as the seller of those drugs. Based on that information and other evidence, law enforcement obtained a search warrant for the abandoned Renova Street residence, which was executed on Jan. 2, 2017. When law enforcement executed the search warrant, they encountered the defendant leaving the abandoned residence and he had a key for the residence and two cellular telephones. A search of the residence revealed distribution quantities of fentanyl, cocaine and methamphetamine, along with a loaded and stolen handgun, a ballistic vest, and other evidence of drug trafficking. A search of the cellular telephones associated with the defendant revealed communications associated with drug trafficking and communications with the individual who purchased fentanyl on Dec. 30, 2016.
The defendant has a lengthy criminal history, including multiple felony convictions for prior drug trafficking and illegal gun possession. He was therefore precluded for possession of firearms or ammunition under federal law.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
United States Attorney Chung commended the Pittsburgh Bureau of Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Johnson.
Petrochemical Producer Altivia Agrees to Comprehensive Program to Reduce Harmful Air Pollution from Leaking Equipment to Resolve Clean Air Act Violations in OhioRead the Press Release
ALTIVIA Petrochemicals LLC has agreed to a consent decree that would require it to pay a $1,112,500 civil penalty and improve leak detection and repair work practices to settle alleged violations of the Clean Air Act (CAA) at a petrochemical manufacturing facility in Haverhill, Ohio. Emissions of hazardous air pollutants (HAPs), such as phenol, from leaking equipment impact the environment and may cause serious health effects including anorexia, vertigo and blood and liver effects.
According to the seven-count complaint, filed on Oct. 5, 2021, in the Southern District of Ohio, ALTIVIA allegedly violated CAA requirements to monitor and repair leaking equipment, demonstrate compliance with regulations applicable to chemical plants and control HAP emissions from equipment as required.
“This case and settlement show that the Department of Justice will litigate vigorously against companies that violate federal environmental law,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The significant civil penalty obtained will serve as deterrent against future non-compliance and the compliance program will require ALTIVIA to upgrade its monitoring and maintenance practices to help prevent future violations due to fugitive emissions.”
“Prevention or immediate detection and repair are critical when protecting health and the environment,” said U.S. Attorney Kenneth Parker for the Southern District of Ohio. “The Justice Department and the Environmental Protection Agency (EPA) are vigilantly ensuring compliance with the Clean Air Act and other environmental laws.”
“This consent decree will benefit communities in Ohio by reducing hazardous air pollution,” said EPA Region 5 Administrator Debra Shore. “The settlement, which resolves years of Clean Air Act violations, will require ALTIVIA to improve its Clean Air Act compliance efforts and to implement monitoring and repair best practices.”
In addition to paying a penalty, ALTIVIA will implement a comprehensive program to reduce emissions of HAPs from leaking equipment such as valves and connectors. These emissions, known as “fugitive” emissions because they are not discharged from a stack, but rather leak directly from equipment, are generally controlled through work practices, like monitoring and repairing leaks. The settlement requires ALTIVIA to implement enhanced work practices, including more frequent leak monitoring, better repair practices and innovative new efforts designed to prevent leaks.
In addition, the enhanced program requires ALTIVIA to replace valves with new “low emissions” valves or valve packing material designed to significantly reduce the likelihood of future leaks of HAPs. The settlement further requires ALTIVIA to control similar emissions from a previously uncontrolled process tank. The estimated cost of these controls is $730,000. The compliance program and engineered controls will reduce HAP emissions by up to 97 tons per year.
The consent decree is subject to a 30-day comment period and final approval by the court. A copy of the consent decree is available on the Department of Justice website at www.usdoj.gov/enrd/Consent_Decrees.html.