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12 October 2022
Houstonian admits guilt in HPD officer shootingRead the Press Release
HOUSTON ‐ A 23-year-old Pasadena man has admitted to firearm and drug trafficking offenses related to his role in the shooting of a Houston Police Department (HPD) officer, announced U.S. Attorney Jennifer Lowery.
Jimmy Caston Bryan pleaded guilty to possessing with intent to distribute meth and to carrying and discharging a firearm during and in relation to a drug trafficking crime.
As part of his plea, Bryan admitted that on May 4 he fired multiple shots at an HPD officer near 14300 Gulf Freeway.
Bryan previously trafficked narcotics in the Houston area, had possessed meth and was believed to be in the possession of multiple firearms. On May 4, authorities conducted a traffic stop, at which time two HPD officers approached Bryan’s truck and requested identifying information.
Bryan did not comply which led law enforcement to ask him to step out of the vehicle. As one officer opened Bryan’s door, Bryan quickly reached into his waistband and pulled out a semi-automatic handgun.
As part of his plea, Bryan also admitted he shot and struck the other HPD officer twice - once in the chest and once in the right hip.
Both officers returned gunfire and struck Bryan.
A search of Bryan’s vehicle revealed over 48 grams of meth, heroin, cocaine, MDMA, a digital scale and two additional handguns.
Bryan faces up to 40 years for drug trafficking. He also faces up to life in prison for the firearm charge which must be served consecutively to the other prison term imposed.
Sentencing is set for Feb. 9, 2023, before Chief U.S. District Judge Lee H. Rosenthal. Bryan will remain in custody pending that hearing.
The Drug Enforcement Administration, HPD, Texas Department of Public Safety and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Michael Day is prosecuting the case.
Hocking County woman admits to sexually exploiting children as young as 3 years old with her boyfriendRead the Press Release
COLUMBUS, Ohio – A Logan, Ohio, woman pleaded guilty in U.S. District Court today to sexually exploiting minors and possessing child pornography.
Carrie Daniels, 41, was charged federally in April 2022, along with her significant other, Robert Gemienhardt, 37. Gemienhardt pleaded guilty to related offenses on Sept. 30 and awaits sentencing.
The two defendants groomed minor victims whom they had access too, sexually abused the victims, and created child pornography of the abuse.
According to court documents, the National Center for Missing and Exploited Children (NCMEC) received a tip from Kik messenger regarding Gemienhardt’s online child exploitation activities conducted at Daniels’s residence. The Ohio Internet Crimes Against Children (ICAC) Task Force and the Hocking County Sheriff’s Office then began investigating the allegations.
Subsequent search warrants executed by the Hocking County Sherriff’s Office, in conjunction with the FBI, revealed that Daniels had produced child pornography of an approximately 3-year-old child and distributed the images she had produced to Gemienhardt. Those images were ultimately recovered on Gemienhardt’s phone. In addition, further evidence revealed that at times, Gemienhardt and Daniels acted together and produced child pornography through the grooming and sexual abuse of minor victims they had access to between April and June of 2020.
Daniels and her boyfriend, who was a registered sex offender in the state of Ohio, exchanged thousands of illicit text messages detailing their sexual fantasies about four separate minor victims to whom they had access. Those text messages further revealed both Gemienhardt and Daniels had plans to act out some of the detailed fantasies by sexually abusing some of the minors.
Sexually exploiting a minor is a crime punishable by 15 to 30 years in prison. Possessing child pornography carries a potential penalty of up to 10 years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Hocking County Sheriff Lanny E. North announced the plea entered today before U.S. District Judge Edmund A. Sargus, Jr. Assistant United States Attorney Emily Czerniejewski is representing the United States in this case.
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Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. - A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Sun Prairie Teacher Charged with Producing Child Pornography
Matthew E. Quaglieri, 34, Sun Prairie, Wisconsin, is charged with 3 counts of producing child pornography. The indictment alleges that he intentionally used a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct on September 22, 23, and 29, 2022. At the time of the alleged offenses, Quaglieri was a teacher with the Sun Prairie Area School District.
If convicted, Quaglieri faces a mandatory minimum penalty of 15 years and a maximum of 30 years in federal prison on each count. The charges against him are the result of an investigation by the Sun Prairie Police Department and the Wisconsin Department of Justice Division of Criminal Investigation. Assistant U.S. Attorney Elizabeth Altman is handling the prosecution.
Tennessee Man Charged with Distributing Child Pornography
Trevor Blackburn, 22, Bell Buckle, Tennessee, is charged with distributing child pornography. The indictment alleges that on September 8, 2022, Blackburn posted a video of a minor engaged in sexually explicit conduct on a school district network. Blackburn is currently being held in state custody at the Chippewa County Jail. A date has not been set for his initial appearance in federal court.
If convicted, Blackburn faces a mandatory minimum penalty of 5 years and a maximum of 20 years in federal prison. The charge against him is the result of an investigation by the Chippewa County Sheriff’s Office; Federal Bureau of Investigation in Wisconsin, Tennessee, and Minnesota; Wisconsin Department of Justice Division of Criminal Investigation; Eau Claire County Sheriff’s Office; Douglas County Sheriff’s Office; and Gilman, Superior, and Cornell Police Departments. Assistant U.S. Attorney Elizabeth Altman is handling the prosecution; the U.S. Attorney’s Office for the Eastern District of Tennessee has provided assistance.
Madison Man Charged with Drug Crimes Involving Heroin, Fentanyl & Cocaine
Roland J. Scott III, 20, Madison, Wisconsin, is charged with distributing heroin, distributing a mixture of heroin and fentanyl, 2 counts of distributing fentanyl, and possessing 40 grams or more of fentanyl with intent to distribute. The indictment alleges that these offenses occurred between September 15 and October 7, 2021. The indictment further charges that from October 5 to 7, 2021, Scott used and maintained a place for the purpose of distributing heroin and fentanyl. The indictment also charges that on June 30, 2022, Scott possessed 400 grams or more of fentanyl with intent to distribute, possessed cocaine with intent to distribute, and possessed a loaded firearm in furtherance of a drug trafficking crime.
If convicted, Scott faces a maximum penalty of 20 years in federal prison on each distribution charge, the charge of possessing cocaine with intent to distribute, and the charge of maintaining a drug house. He faces a mandatory minimum of 5 years and a maximum of 40 years on the charge of possessing 40 grams or more of fentanyl with intent to distribute, and a mandatory minimum of 10 years and a maximum of life on the charge of possessing 400 grams or more of fentanyl with intent to distribute. The charge of possessing a loaded firearm in furtherance of a drug trafficking crime has a mandatory minimum penalty of 5 years and a maximum of life in prison. Federal law requires that any penalty imposed for the gun charge be served consecutive to any other sentence imposed.
The charges against Scott are the result of an investigation by the Madison Police Department, Dane County Narcotics Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Kathryn Ginsberg and Steven Anderson are handling the prosecution.
Madison Man Charged with Illegally Possessing Firearm & Ammunition
Donquil D. McLemore, 19, Madison, is charged with being a felon in possession of a firearm and ammunition. The indictment alleges that he possessed a .380 caliber handgun and ammunition on June 30, 2022.
If convicted, McLemore faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Madison Police Department, Dane County Narcotics Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Kathryn Ginsberg and Steven Anderson are handling the prosecution.
The charges against Scott and McLemore are 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.
Wausau Man Charged with Possessing Methamphetamine for Distribution
Anthony Anderson, 40, Wausau, Wisconsin, is charged with possessing 50 grams or more of pure methamphetamine with the intent to distribute. The indictment alleges that he possessed the methamphetamine on August 1, 2022.
If convicted, Anderson faces a mandatory minimum of 10 years and a maximum of life in federal prison. The charge against him is the result of an investigation by the Federal Bureau of Investigation and the Central Wisconsin Narcotics Task Force. Assistant U.S. Attorney Aaron Wegner is handling the prosecution.
Buffalo County Woman Charged with Misappropriating U.S. Postal Funds
Megan A. Torrez, 45, Alma, Wisconsin, is charged with 2 counts of misappropriating postal funds. The indictment alleges that on November 30 and December 27, 2021, while an employee of the U.S. Postal Service, Torrez converted to her own use more than $1,000 in U.S. Postal money orders.
If convicted, Torrez faces a maximum penalty of 10 years in federal prison on each count. The charges against her are the result of an investigation by the U.S. Postal Service, Office of Inspector General. Assistant U.S. Attorney Robert Anderson is handling the prosecution.
Barron County Postal Employee Charged with Theft of Mail
Joshua P. Copas, 37, Cumberland, Wisconsin, is charged with theft of mail. The indictment alleges that while an employee of the U.S. Postal Service, he stole items of mail which had come into his possession for the purpose of being conveyed by the Postal Service. Specifically, the indictment alleges that between April 7 and May 30, 2022, Copas stole Menards’ rebate checks from the mail.
If convicted, Copas faces a maximum penalty of 5 years in federal prison. The charge against him is the result of an investigation by the U.S. Postal Service, Office of Inspector General and the Rice Lake and Cumberland Police Departments. Assistant U.S. Attorneys Anita Boor and Steven Anderson are handling the prosecution.
Former Louisville, Kentucky, Police Officer Pleads Guilty for Using Excessive ForceRead the Press Release
Katie R. Crews, 29, of Jeffersonville, Indiana, pleaded guilty in federal court to violating an individual’s rights by using excessive force while acting as a police officer.
During the plea hearing, Crews admitted that on or about June 1, 2020, while acting as a police officer with the Louisville Metro Police Department, she shot an individual with a pepperball, while the individual was standing on private property and not posing a threat to the defendant or others. Crews pleaded guilty to one misdemeanor count for using unreasonable force. Crews’s guilty plea carries a maximum term of imprisonment of one year, and a maximum fine of $100,000. As part of the plea agreement, Crews is no longer an officer with the Louisville Metro Police Department and has forfeited her Kentucky law enforcement certification.
“Police officers who abuse their authority and act outside the bounds of the law will be held accountable,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to vigorously prosecute any officer who violates the public trust by using excessive force without cause.”
“I appreciate the outstanding investigatory work conducted by the FBI’s Louisville Public Corruption Civil Rights Task Force,” said U.S. Attorney Michael A. Bennett for the Western District of Kentucky. “We will continue to work diligently with our federal, state and local law enforcement partners to ensure the citizens of the Western District are protected from the use of excessive force without cause by officials sworn to protect them.”
“Police officers take an oath to protect and serve our communities,” said Special Agent in Charge Jodi Cohen for the FBI Louisville Field Office. “This case serves as an example that the FBI is committed to identifying and investigating those law enforcement officers who choose to abandon their oath and violate the public’s civil rights.”
With her guilty plea and pursuant to the terms of the plea agreement, the defendant will also forfeit her right to seek future employment in law enforcement. A sentencing date has been set for Jan. 30, 2023.
Assistant Attorney General Clarke, U.S. Attorney Bennett and Special Agent in Charge Cohen made the announcement.
The FBI and the Louisville Metro Police Department’s Public Integrity Unit jointly investigated the case through the Louisville Public Corruption Civil Rights Task Force. Assistant U.S. Attorney Amanda E. Gregory for the Western District of Kentucky and Civil Rights Trial Attorney Anita Channapati of the Justice Department’s Civil Rights Division prosecuted the case.
Former Louisville, Kentucky Police Officer Pleads Guilty for Using Excessive ForceRead the Press Release
WASHINGTON – Katie R. Crews, 29, of Jeffersonville, Indiana, pleaded guilty in federal court to violating an individual’s rights by using excessive force while acting as a police officer.
During the plea hearing, Crews admitted that on or about June 1, 2020, while acting as a police officer with the Louisville Metro Police Department, she shot an individual with a pepperball, while the individual was standing on private property and not posing a threat to the defendant or others. Crews pleaded guilty to one misdemeanor count for using unreasonable force. Crews’s guilty plea carries a maximum term of imprisonment of one year, and a maximum fine of $100,000. As part of the plea agreement, Crews is no longer an officer with the Louisville Metro Police Department and has forfeited her Kentucky law enforcement certification.
“Police officers who abuse their authority and act outside the bounds of the law will be held accountable,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to vigorously prosecute any officer who violates the public trust by using excessive force without cause.”
“I appreciate the outstanding investigatory work conducted by the FBI’s Louisville Public Corruption Civil Rights Task Force,” said U.S. Attorney Michael A. Bennett for the Western District of Kentucky. “We will continue to work diligently with our federal, state, and local law enforcement partners to ensure the citizens of the Western District are protected from the use of excessive force without cause by officials sworn to protect them.”
“Police officers take an oath to protect and serve our communities,” said Special Agent in Charge Jodi Cohen for the FBI Louisville Field Office. “This case serves as an example that the FBI is committed to identifying and investigating those law enforcement officers who choose to abandon their oath and violate the public’s civil rights.”
With her guilty plea and pursuant to the terms of the plea agreement, the defendant will also forfeit her right to seek future employment in law enforcement. A sentencing date has been set for January 30, 2023.
Assistant Attorney General Clarke, U.S. Attorney Bennett and Special Agent in Charge Cohen made the announcement.
The FBI and the Louisville Metro Police Department’s Public Integrity Unit jointly investigated the case through the Louisville Public Corruption Civil Rights Task Force. Assistant U.S. Attorney Amanda E. Gregory for the Western District of Kentucky and Civil Rights Trial Attorney Anita Channapati of the Justice Department’s Civil Rights Division prosecuted the case.
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Former Florida Tech CEO Pleads Guilty to Tax EvasionRead the Press Release
A district court judge accepted the guilty plea yesterday of the former CEO of a Jacksonville company who admitted to evading income taxes owed to the IRS based on a fraud he ran on his employer.
According to court documents and statements made in court, in 2015 and 2016, Jason Cory was a manager at a New York-based information technology services. From 2017 through 2019, Cory was the CEO of a different information technology services company based in Jacksonville. From 2015 through 2018, Cory used his positions as manager and CEO at the two companies to cause his employers to direct a total of more than $1.5 million to Gambit Matrix LLC, a shell company he controlled. With respect to the second employer, Cory did so under the false pretense the payments were for consulting services. In reality, Gambit Matrix did not provide consulting services and there was no justification for these payments.
Cory did not report the income he earned through transfers to Gambit Matrix on his tax return for 2015. He also did not file tax returns for the years 2016 through 2018 as required by law. To conceal the fraud scheme from the second employer and evade taxes on his income for these years, Cory invented fictitious owners of Gambit Matrix, made false representations to his employer, and falsified emails and IRS Forms W-9 (Request for Taxpayer Identification Number). Cory used the money directed to Gambit Matrix to pay for personal expenses such as credit card bills, rent and club memberships. Cory admitted that between 2015 and 2018, he evaded more than $600,000 in taxes.
Cory is scheduled to be sentenced on Jan. 30, 2023, and faces a maximum sentence of five years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.
The FBI and IRS-Criminal Investigation are investigating the case.
Assistant U.S. Attorney David B. Mesrobian for the Middle District of Florida and Trial Attorney Richard J. Hagerman of the Tax Division are prosecuting the case.
Former Florida Tech CEO Pleads Guilty to Tax EvasionRead the Press Release
Jacksonville, FL - A district court judge accepted the guilty plea yesterday of the former CEO of a Jacksonville company who admitted to evading income taxes owed to the IRS based on a fraud he ran on his employer.
According to court documents and statements made in court, in 2015 and 2016, Jason Cory was a manager at a New York-based information technology services. From 2017 through 2019, Cory was the CEO of a different information technology services company based in Jacksonville. From 2015 through 2018, Cory used his positions as manager and CEO at the two companies to cause his employers to direct a total of more than $1.5 million to Gambit Matrix LLC, a shell company he controlled. With respect to the second employer, Cory did so under the false pretense the payments were for consulting services. In reality, Gambit Matrix did not provide consulting services and there was no justification for these payments.
Cory did not report the income he earned through transfers to Gambit Matrix on his tax return for 2015. He also did not file tax returns for the years 2016 through 2018 as required by law. To conceal the fraud scheme from the second employer and evade taxes on his income for these years, Cory invented fictitious owners of Gambit Matrix, made false representations to his employer, and falsified emails and IRS Forms W-9 (Request for Taxpayer Identification Number). Cory used the money directed to Gambit Matrix to pay for personal expenses such as credit card bills, rent and club memberships. Cory admitted that between 2015 and 2018, he evaded more than $600,000 in taxes.
Cory is scheduled to be sentenced on Jan. 30, 2023, and faces a maximum sentence of five years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.
The FBI and IRS-Criminal Investigation are investigating the case.
Assistant U.S. Attorney David B. Mesrobian for the Middle District of Florida and Trial Attorney Richard J. Hagerman of the Tax Division are prosecuting the case.
Florissant Woman Sentenced to 2 Years in Prison, Ordered to Repay $787,000 in Pandemic FraudRead the Press Release
ST. LOUIS – U.S. District Judge Ronnie L. White on Wednesday sentenced a Florissant woman who committed coronavirus pandemic fraud to two years in prison and ordered her to repay $787,000.
Dionneshae Forland, 51, will be on supervised release for five years after she gets out of prison.
Forland pleaded guilty in July to bank fraud, theft of government property and four counts of wire fraud and admitted a scheme to fraudulently obtain money from the Paycheck Protection Program and the Missouri Small Business Grant Program.
Forland took advantage of relief programs intended for small businesses and employees at risk of losing their jobs and used the money for personal expenses, Assistant U.S. Attorney Jonathan Clow said in court.
From January 2021 through May 2021, Forland lied on PPP loan applications about payroll and the number of employees and submitted fraudulent documents to obtain four loans totaling $592,225. She spent the money on personal expenses.
Forland also fraudulently obtained a $150,000 loan for a company linked to her son, Dwayne Times, and two loans totaling $36,600 on behalf of two people referred to her by Times.
Forland unsuccessfully submitted four fraudulent grant applications to the Missouri Small Business Grant Program in July 2020. She did succeed in fraudulently obtaining a grant of $49,988. After Times took out $8,000 in cash, the money was “clawed back” due to officials’ fraud suspicions.
Nearly $600,000 has been seized from various accounts linked to Forland or Times.
Times, 31, pleaded guilty June 9 to one count each of wire fraud and theft of government property. Judge White sentenced him Tuesday to five years of probation and ordered Times to repay $194,850.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Jonathan Clow is prosecuting the case.
Five indicted by a federal grand jury for crimes including illegal firearms possessionRead the Press Release
SAVANNAH, GA: Five defendants are among those facing federal charges including illegal possession of firearms after separate indictments by a grand jury in the Southern District of Georgia, while recent actions in U.S. District Court include guilty pleas and criminal sentences related to illegal gun possession.
The indicted cases are being investigated as part of Project Safe Neighborhoods in collaboration with federal, state and local law enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the FBI, to reduce violent crime with measures that include targeting convicted felons who illegally carry guns.
“As we continue the fight against violent crime in our neighborhoods, removing guns from the hands of convicted felons helps keep our citizens safe,” said David H. Estes, U.S. Attorney for the Southern District of Georgia. “We appreciate the outstanding work of our law enforcement partners in protecting our communities.”
In the past four years, more than 775 defendants have been federally charged in the Southern District of Georgia for illegal firearms offenses – most often for possessing a firearm after conviction for a previous felony. In addition, recent federal legislation increased the maximum penalty for illegal possession of a firearm by a convicted felon to 15 years, up from 10, for those found in possession after the June 25, 2022 signing of the law.
Defendants named in federal indictments from the October 2022 term of the U.S. District Court grand jury include:
- Robert Triche, 40, of Savannah, charged with Possession with Intent to Distribute Heroin and Methamphetamine; Possession of a Firearm by a Convicted Felon; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; Conspiracy to Possess with Intent to Distribute, and to Distribute, Fentanyl; and Possession with Intent to Distribute Fentanyl;
- Maurice Brown, 21, of Savannah, charged with Possession of a Firearm by a Convicted Felon;
- Ricky Maurice Johnson, 35, of Swainsboro, Ga., charged with Possession of a Firearm by a Convicted Felon;
- Steve Shontell Heath, 46, of Hephzibah, Ga., charged with Possession of a Firearm by a Convicted Felon; and,
- William Beau Devore, 21, of Martinez, Ga., charged with Possession of a Firearm by a Convicted Felon.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
Additional defendants recently have been adjudicated on federal charges that include illegal firearms possession:
- James Hoffman, 37, of Savannah, was sentenced to 92 months in prison followed by three years of supervised release after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah Police officers arrested Hoffman after a foot chase in August 2020 while investigating a report of a man firing a pistol. The officers found a loaded pistol on the ground after tackling Hoffman, who has multiple prior felony convictions for violent crimes.
- Robert Alexander DuBose, 40, of Augusta, was sentenced to 84 months in prison followed by three years of supervised release and fined $1,500 after pleading guilty to Possession of a Firearm by a Convicted Felon. Richmond County Sheriff’s deputies investigating a vehicle break-in in November 2020 arrested DuBose after finding a pistol in his pants.
- Elijawan Leysath Rhodes, 29, of Augusta, was sentenced to 33 months in prison followed by three years of supervised release and fined $1,500 after pleading guilty to Possession of a Firearm by a Convicted Felon. Richmond County Sheriff’s Office investigators responding to gunfire at a Wrightsboro Road motel Dec. 31, 2021, arrested Rhodes after a brief chase when they found a pistol in Rhodes’ vehicle.
- Michael Jordan Sharp, 31, of Augusta, was sentenced to 36 months in prison followed by three years of supervised release and fined $1,200 after pleading guilty to Possession of a Firearm by a Convicted Felon. Sharp was on parole from a felony conviction on state charges for sale of methamphetamine when Richmond County Sheriff’s deputies and officers from the Georgia Department of Community Supervision found a pistol while searching his residence.
- Kevin Shawn McGahee, 48, of Stapleton, Ga, was sentenced to 56 months in prison followed by three years of supervised release and fined $1,500 after pleading guilty to Possession of Firearms by a Convicted Felon. McGahee’s April 2021 arrest followed a search of his residence where agents from the U.S. Drug Enforcement Administration and deputies from the Warren County and McDuffie County sheriff’s offices found methamphetamine, drug paraphernalia, and nearly two dozen firearms. Among those firearms was a Glock 9mm semi-automatic pistol equipped with a so-called “Glock switch,” an aftermarket accessory that converts firearms into automatic weapons. McGahee also faces state charges in the case.
- Neqwaun O’Neal Roberson, 23, of Augusta, was sentenced to 46 months in prison followed by three years of supervised release and fined $1,000 after pleading guilty to Possession of a Firearm by a Convicted Felon. Richmond County Sheriff’s deputies arrested Roberson in September 2021 on outstanding warrants for state charges, including aggravated assault and armed robbery, and found a loaded pistol in his pocket. Roberson is a member of Loyalty Over Everything (LOE) criminal street gang in Augusta.
- Jonathan R. White, 25, of Savannah, was sentenced to 46 months in prison followed by three years of supervised release after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah Police officers investigating a vehicle crash arrested White after seeing him remove a pistol from the vehicle and learning that White had a prior felony conviction.
- Ziquane Sandford, 24, of Hephzibah, was sentenced to five years of probation and fined $1,500 after pleading guilty to Engaging in the Business of Dealing in Firearms Without a License. Sandford admitted he sold firearms on four occasions without the required license.
- Charles Dean Jones, 26, of Grovetown, Ga., awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. A Georgia State Patrol trooper charged Jones in November 2021 after an attempted traffic stop, pursuit and crash of the motorcycle Jones was riding in Columbia County. Jones had a loaded pistol in a backpack he was wearing.
- Cody Truitt Devore, 23, of Sylvania, Ga., awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Columbia County Sheriff’s deputies arrested Devore after finding drugs and two guns in his vehicle during a traffic stop in January 2022. At the time, Devore was on federal supervised release for a 2019 federal conviction for firearms possession.
- Christopher Fitzgerald Jones, 35, of Augusta, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Richmond County Sheriff’s deputies arrested Jones in October 2021 on a felony warrant resulting from a series of domestic altercations. Jones, who was carrying a pistol at the time of his arrest, has a substantial criminal history that includes violence and illegal gun possession.
- James Deon Green, 51, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah Police officers arrested Green in December 2020 after a traffic stop and foot pursuit when they found a pistol in Green’s waistband.
- Diallow Akpan Johnson, a/k/a “Kevin Williams,” 50, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah Police officers were called to Johnson’s apartment in January 2021 to investigate a report of domestic violence and found a pistol and drugs in the residence.
- Quentin Jashawn Putney, 46, of Wrightsville, Ga., awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah Police officers arrested Putney, who was a back-seat passenger in a vehicle stopped for traffic violations, in July 2020 when they found him in possession of a pistol. Putney has prior criminal convictions that include domestic violence.
- Ryan Nickolus Smiley, a/k/a “Nick Smiley,” 40, of Springfield, Ga., awaits sentencing after pleading guilty to Possession of a Firearm and Ammunition by a Convicted Felon. A member of the Aryan Brotherhood white supremacist street gang, Smiley was on supervised release from a prior federal firearms conviction in March 2021 when the U.S. Marshal’s Service served an arrest warrant for a violation of supervised release and found ammunition and photos of Smiley in possession of firearms.
Agencies investigating these cases include the ATF, the FBI, the Georgia Bureau of Investigation, the Savannah Police Department, the Richmond County Sheriff’s Office, and the Georgia State Patrol.
The cases are being prosecuted for the United States by the Southern District of Georgia U.S. Attorney’s Office.
Under federal law, it is illegal for an individual to possess a firearm if he or she falls into one of nine prohibited categories including being a felon; illegal alien; or unlawful user of a controlled substance. Further, it is unlawful to possess a firearm in furtherance of a drug trafficking offense or violent crime. It is also illegal to purchase – or even to attempt to purchase – firearms if the buyer is a prohibited person or illegally purchasing a firearm on behalf of others. Lying on ATF Form 4473, which is used to lawfully purchase a firearm, also is a federal offense.
For more information from the ATF on the lawful purchasing of firearms, please see: https://www.atf.gov/qa-category/atf-form-4473
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Federal Safety and Health Officer Admits Conspiring with His Brother to Extort ContractorsRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted conspiring with his brother to extort multiple general contractors of approximately $14,000 in cash, U.S. Attorney Philip R. Sellinger announced.
Alvaro Idrovo, 46, of Bloomfield, New Jersey, pleaded guilty by videoconference before U.S. District Judge Katharine S. Hayden to an information charging him with one count of conspiring to defraud the United States and to commit an offense against the United States, specifically, an act of extortion under color of his office or employment with the U.S. Department of Labor, Occupational Safety and Health Administration (OSHA).
Idrovo was charged by complaint in September 2020 with his brother, Paul Idrovo, with one count of conspiring to commit an offense against the United States based on the extortion of a single contractor. Paul Idrovo previously pleaded guilty to an information charging the same offense and was sentenced to three years of probation and ordered to pay $15,600 in restitution.
According to documents filed in this case and statements made in court:
Alvaro Idrovo was a compliance safety and health officer for OSHA. He misrepresented to contractors at construction sites in New Jersey that they were facing significant OSHA fines, penalties and possibly jail if they did not get the alleged necessary OSHA safety training. Alvaro Idrovo would provide the contractors with the phone number for the required trainer – allegedly named “Jose Diaz” or “Paul Mejia” – which phone number belonged to Paul Idrovo, posing under these names to conceal the brothers’ relationship. Paul Idrovo was an authorized trainer for certain OSHA Outreach Training Programs, but was not an employee of OSHA.
The two men charged the contractors $4,000 to $6,000 each, in cash, for the alleged safety training. At the time that Paul Idrovo collected the cash, he provided the contractors with fraudulent computer-generated safety and health certificates for their individual employees, which falsely stated that the employees had received various types of OSHA certified safety training from “Jose Diaz” and “Paul Mejia,” when no training had been provided. Paul Idrovo shared with Alvaro Idrovo approximately $5,000 of the cash collected as part of the extortion conspiracy.
When OSHA officials learned of the attempt to extort one of the contractors, they referred the matter to federal law enforcement, who arranged for that contractor to make consensual recordings with both Idrovo brothers. During an April 2020 meeting surveilled by law enforcement, the contractor paid Paul Idrovo $6,000 in cash in exchange for ladder and safety awareness training certificates and a safety and health plan, filled in from a template. Alvaro Idrovo attached copies of the training certificates and the plan to his OSHA reports regarding the contractor’s violation despite knowing that the training certificates falsely claimed that training had been provided to the noted individuals on the specified dates in March 2020, that “Jose Diaz” had provided training, and that the alleged training was OSHA certified.
The conspiracy charge against Alvaro Idrovo carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Feb. 16, 2023.
U.S. Attorney Sellinger credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Jonathan Mellone in New York, and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Senior Trial Counsel Leslie Faye Schwartz of the Special Prosecutions Division.
Federal Inmate Sentenced to over 24 Years for Murder of Fellow InmateRead the Press Release
DETROIT - A federal inmate was sentenced to more than 24 years in prison yesterday for murdering a fellow inmate at Milan Correctional Facility, in Milan, Michigan, United States Attorney Dawn N. Ison announced.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Jonathan Hemingway, Warden, Milan Federal Correctional Institution.
Adam Taylor Wright, 42, formerly of Springfield, Illinois, pled guilty to Second Degree Murder in February of this year. United States District Court Judge Paul D. Borman sentenced Wright to 292 months, which will run concurrently/consecutively to the sentences of imprisonment he is serving in other cases.
According to court records, on January 2, 2019, Wright, along with co-defendants Alex Albert Castro, 42, and Jason Dale Kechego, 41, killed fellow inmate Christian Maire. Specifically, Wright and Kechego repeatedly kicked and stomped Maire in the head, and Wright prevented corrections officers from intervening while Castro repeatedly stabbed Maire. Wright, along with his two co-defendants, then worked together to throw Maire’s body down a flight of stairs. Maire died from multiple stab wounds (28 total) and blunt force trauma to the head.
“Deterring violence inside prisons will always be a priority of this office. Senseless acts of violence that jeopardize the safety of employees and inmates of the Bureau of Prisons will be aggressively prosecuted.” said U.S. Attorney Ison.
This case was investigated by special agents of the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Frances Lee Carlson and Andrew R. Picek.
Federal Grand Jury Indicts Henderson Man for Fentanyl Overdose DeathsRead the Press Release
Henderson, KY – A federal grand jury in Bowling Green returned a two-count indictment charging a local man with distribution of fentanyl causing two separate deaths in the Henderson area.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Henderson Police Chief Sean L. McKinney, and Henderson County Sheriff David Crafton made the announcement.
According to court documents, between December 27, 2021, and January 31, 2022, Elijah Lovell, 19, of Henderson, distributed fentanyl that resulted in the death of another person, “J.H.” Additionally, on May 5, 2022, Lovell distributed fentanyl that resulted in the death of “C.G.”
If convicted, Lovell faces a minimum sentence of 20 years and a maximum sentence of life in prison. There is no parole in the federal system. A federal district court judge will determine any sentence after considering the United States Sentencing Guidelines and other statutory factors.
The Henderson Police Department and the Henderson County Sheriff’s Office are investigating the case.
Assistant United States Attorney Frank Dahl is prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Fake Home Loans Land Perpetrators in PrisonRead the Press Release
MIAMI – After previously pleading guilty to Conspiracy to Commit Wire Fraud and Aggravated Identity Theft, Ana Amador and Sunilda Casilla were sentenced in federal court to prison and ordered to pay restitution. Amador was sentenced to 72 months in prison, three years of supervised release, and ordered to pay more than $1.6 million in restitution. Casilla was sentenced to 60 months in prison, three years of supervised release, and also ordered to pay more than $1.6 million in restitution.
According to facts admitted at the change of plea, Amador and Casilla submitted fraudulent loan applications in connection with sham real estate transactions. The two would look for vacant properties with a high market value. They used the personal identifying information of former clients to apply for the mortgages from private mortgage lenders. The lenders would fund the loans for the purported purchase of the properties, and Amador and Casilla would pocket the loan proceeds. There never was a genuine sale or property purchase.
Amador and Casilla were well versed in the mortgage industry and knew the details of the loan process, including the documents to be completed to obtain a loan. Amador worked as the president of a title company for a number of years. Casilla was a former attorney who worked with Amador doing real estate closings. They knew that “hard money lenders” would loan money for the purchase of properties as long as the property had sufficient value to serve as collateral to the loan. These lenders loaned money to high-risk clients unable to obtain a conventional mortgage for various reasons, to include poor credit risk, no verifiable income, or insufficient employment history. Amador and Casilla also knew that if they could convince the mortgage lenders to loan money for the purported purchase of a property, they could obtain the loan proceeds before anyone knew that a property wasn’t being purchased.
Amador and Casilla located high-end vacant residences that they would purportedly “buy” using someone else’s name, credit and identity to secure a hard money lender mortgage. Once the “sale” was complete, the mortgage proceeds would be wired from the hard money lender to a fictitious title company controlled by Amador and Casilla. The owner of the property did not know the real estate transaction occurred. The buyer of the property did not know they had purchased it. Instead, they made it seem as if a sale had been completed, thereby having the mortgage company wire the mortgage proceeds to their title companies, after which they would withdraw the money. Utilizing this scheme, they were responsible for an intended loss of more than $3.3 million and an actual loss to the victims of more than $1.6 million. They each were ordered to pay more than $1.6 in restitution.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida; Edwin S. Bonano, Special Agent in Charge, Federal Housing Finance Agency, Office of Inspector General; Brian Swain, Special Agent in Charge, U.S. Secret Service; and the U.S. Department of Treasury, Office of Inspector General, announced the sentences.
Federal Housing Finance Agency, Office of Inspector General; U.S. Secret Service; and the U.S. Department of Treasury, Office of Inspector General, investigated the case. Assistant U.S. Attorney Larry Bardfeld prosecuted the case. Assistant U.S. Attorney Gabrielle Charest-Turken is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-60312.
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Eight Defendants, Including a Brooklyn Medical Doctor, and Three Pharmacists, Charged with Illegally Distributing More Than 1.2 Million Oxycodone PillsRead the Press Release
Earlier today, in federal court in Brooklyn, a 10-count indictment was unsealed charging Dr. Somsri Ratanaprasatporn, her office manager Leticia Smith, Bassam Amin, Omar Elsayed, and Yousef Ennab who are pharmacists, Michael Kent, Anthony Mathis, and Raymond Walker with conspiracy to distribute and possess with intent to distribute oxycodone and related crimes. Smith and Kent are also charged with money laundering in connection with their alleged efforts to hide the proceeds of their illegal oxycodone distribution operation. All eight defendants were arrested this morning and are scheduled to be arraigned this afternoon before United States Magistrate Judge Robert M. Levy.
Breon Peace, United States Attorney for the Eastern District of New York; Frank A. Tarentino, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA); Elysia M. Doherty, Assistant Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General’s Office of Investigations, New York Region (HHS-OIG); Thomas M. Fattorusso, Special Agent-in-Charge, Internal Revenue Service Criminal Investigations, New York (IRS-CI); Keechant L. Sewell, Commissioner, New York City Police Department (NYPD); Jocelyn E. Strauber, Commissioner, New York City Department of Investigation (DOI); and Joshua Vinciguerra, Director, New York State Department of Health, Bureau of Narcotic Enforcement (BNE), announced the charges.
“Doctors and medical professionals have a professional obligation to do no harm, but, as alleged, the defendants callously supplied more than one million pills to traffickers for distribution, resulting in dangerous opioids flooding the streets of this district,” stated United States Attorney Peace. “Today’s charges demonstrate this Office’s continued commitment to stemming the availability of illegal drugs and holding to account those who contribute to the epic tragedy that is the opioid epidemic.”
“This structured drug trafficking ring’s operations started in a doctor’s office and ended with $24 million worth of diverted oxycodone on the streets. DEA and our law enforcement partners will continue to hold DEA Registrants and other medical professionals to the highest possible standards and also hold them accountable when they knowingly endanger members of the community. Together, we are all proud of this righteous work, and for the difference it makes in our communities. I commend the investigators and the prosecution team for their work on this wide-spread investigation,” stated DEA Special Agent-in-Charge Tarentino.
“As alleged, our health care system that serves vulnerable populations has been undermined by these individuals,” stated HHS-OIG Assistant Special Agent-in-Charge Doherty. “HHS-OIG, together with our law enforcement partners, will continue to vigorously pursue those who steal from government health care programs for personal gain.”
NYPD Commissioner Sewell stated: “Today’s charges prove again that our fight against the illegal drug trade is unremitting. The NYPD, together with all of our local, state, and federal law-enforcement partners, will pursue these criminals wherever they operate – and when the perpetrators are trusted members of the medical community, their crimes are especially egregious. I thank and commend the U.S. Attorney’s Office for the Eastern District of New York, the DEA’s New York Division, the Office of the Inspector General of the U.S. Department of Health and Human Services, the Internal Revenue Services’ Criminal Investigations, the NYS Department of Health’s Bureau of Narcotic Enforcement, the New York City Department of Investigation, and everyone else involved in this case for their exceptional work.”
“As charged, these defendant medical professionals and their co-conspirators supplied more than 1.2 million oxycodone pills to the streets of New York City, promoting the illicit trade of dangerously addictive opioids. DOI will continue to work tirelessly with our federal and law enforcement partners to ensure that pill mills such as this one are exposed and shut down, and that the individuals who run them are held accountable. I thank the United States Attorney’s Office for the Eastern District of New York and all our investigative partners on this investigation,” stated DOI Commissioner Strauber.“With this multi-million-dollar criminal scheme, it's alleged the defendants made their profits off the vulnerabilities and addictions of their customers throughout New York City. Law enforcement partnerships like those seen here today have been and continue to be an integral part of stopping the flow of highly addictive narcotics into our communities,” stated IRS-CI Special Agent-in-Charge Fattorusso.
“Today’s charges show how diverted prescription drugs still fuel the opioid epidemic in New York. The Bureau of Narcotic Enforcement remains resolute in its commitment to work together with our federal and local law enforcement partners to disrupt and dismantle the criminal organizations that abuse the public’s trust in health care practitioners to move these dangerous and addictive pills from pharmacies to our neighborhoods,” stated BNE Director Vinciguerra.
Oxycodone is a highly addictive opioid used to treat severe and chronic pain conditions. Every year, millions of Americans abuse oxycodone, and the misuse of prescription painkillers like oxycodone leads to hundreds of thousands of annual emergency room visits. More than 16,000 Americans died from prescription opioid overdoses in 2020. Oxycodone prescriptions have enormous cash value to drug dealers. For example, one oxycodone 30 mg tablet, which was the dosage prescribed in this case, can be sold by dealers on the street for between $20 and $30 in New York City.
As set forth in the indictment and publicly filed documents, between December 2018 and October 2022, the defendants operated a drug distribution ring out of a medical practice on Linden Boulevard in East New York, Brooklyn. Together, they unlawfully distributed more than 11,000 prescriptions for oxycodone, amounting to more than 1.2 million oxycodone pills, which carry a street value of at least $24 million. Ratanaprasatporn, a pediatrician and general practitioner, and Smith, issued the prescriptions; Amin, Ennab and Elsayed filled the prescriptions at pharmacies in Brooklyn and Staten Island, and Kent, Mathis, and Walker oversaw “crews” of sham patients who received medically unnecessary prescriptions. Together, the defendants made millions of dollars from the scheme. During the execution of a search warrant this morning, members of law enforcement recovered several hundred thousand dollars in U.S. currency from Smith’s residence. Law enforcement also recovered two handguns that Kent was observed tossing from a rear door of his residence.
If convicted of the drug charges, the defendants face up to 20 years’ imprisonment. If convicted of the money laundering charges, Smith and Kent face up to 20 years’ imprisonment for each count.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.The charges are the result of an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) investigation led by the United States Attorney’s Office for the Eastern District of New York and the DEA. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The government’s case is being prosecuted by Assistant United States Attorneys Laura Zuckerwise, Victor Zapana, and Gilbert Rein. Assistant United States Attorney Claire Kedeshian of the Office’s Asset Recovery Section is handling forfeiture matters.
New Yorkers who need help finding substance-use-disorder treatment resources should contact 1-877-8-HOPENY. The HopeLine provides high quality, responsive information, and referral services via phone and text message to callers throughout New York State experiencing substance abuse issues. HOPELine services are free and confidential.
The Defendants:
LETICIA SMITH
Age: 54
Brooklyn, New YorkBASSAM AMIN
Age: 69
Brooklyn, New YorkOMAR ELSAYED
Age: 28
Hackensack, New JerseyYOUSEF ENNAB
Age: 25
Brooklyn, New YorkMICHAEL KENT
Age: 49
Brooklyn, New YorkANTHONY MATHIS
Age: 55
New Windsor, New YorkDr. SOMSRI RATANAPRASATPORN
Age: 75
Staten Island, New YorkRAYMOND WALKER
Age: 70
Brooklyn, New YorkE.D.N.Y. Docket No. 22-CR464 (DLI)
Ecuadorian National Found Guilty of Possessing over 1,100 Kilograms of Cocaine in the Eastern Pacific OceanRead the Press Release
Tampa, FL – United States Attorney Roger B. Handberg announces that a federal jury has convicted Simon Arcentales Castro (38, Ecuador) of possessing with intent to distribute five kilograms or more of cocaine on a vessel subject to the jurisdiction of the United States. Arcentales Castro faces a mandatory minimum sentence of 10 years, and up to, life in federal prison. His sentencing hearing has been scheduled for January 6, 2023. He and two other individuals were indicted on January 27, 2022.
According to testimony presented at trial, a maritime patrol aircraft spotted a 50-foot low-profile in the Eastern Pacific Ocean, about 100 miles from the nearest point of land. The vessel was suspected of drug smuggling because it was purposely built to avoid detection, was operating without navigational lights at night, and was sailing in a location where maritime drug smuggling by similar vessels is common. The U.S. Coast Guard (USCG) Cutter James launched a small boat to investigate and found Arcentales Castro and two other men on board. The USCG determined the vessel to be without nationality, and therefore subject to U.S. jurisdiction. A search of the vessel revealed over 1,100 kilograms of cocaine, worth approximately $30 million, hidden in the vessel’s forward hull.
This case was investigated by the United States Coast Guard and the Panama Express Strike Force, a standing Organized Crime Drug Enforcement Task Force (OCDETF) Strike Force comprised of agents and analysts from the Drug Enforcement Administration, the Federal Bureau of Investigation, Homeland Security Investigations, the U.S. Coast Guard Investigative Service, the Naval Criminal Investigative Service, and the U.S. Southern Command's Joint Interagency Task Force South. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
The case is being prosecuted by Assistant United States Attorney Lauren Stoia.
Durable Medical Equipment Company Owner Sentenced for Health Care FraudRead the Press Release
MIAMI – A U.S. federal district judge has sentenced 56-year-old Ariel Madero Paez to 55 months in prison followed by 3 years of supervised release for submitting more than $2.2 million in fraudulent billings to Medicare.
From November 2021 through May 2022, Madero owned Always Medical Supply (Always), located in Stuart, Fla. Always, a Florida corporation, purported to provide durable medical equipment (DME) to eligible Medicare beneficiaries. In a five-month period in 2022, Always submitted approximately $2.2 million in fraudulent health care claims to Medicare for DME that the corporation never provided and that Medicare beneficiaries never requested. As a result, Medicare paid more than $1.4 million to Always. After Madero’s arrest on May 6, 2022, at Miami International Airport, bank accounts for Always and Madero had a sum of more than $500,000 derived from or traceable to health care fraud.
In addition to sentencing Madero to prison and supervised release terms, U.S. District Judge Donald M. Middlebrooks ordered him to pay restitution to Medicare in the amount of nearly $1.5 million and entered a forfeiture money judgment also in the amount of nearly $1.5 million. This is in addition to the forfeiture of the contents of Madero’s two bank accounts.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, and Omar Pérez Aybar, Special Agent in Charge, Health and Human Services, Office of Inspector General (HHS-OIG), Miami Field Office, made the announcement.
HHS-OIG Miami investigated the case. Assistant U.S. Attorney Diana M. Acosta prosecuted it. Assistant U.S. Attorney Peter Laserna is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-14029-Middlebrooks.
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Detroit Equity Fund Owner Charged with Defrauding Investors of over $27 millionRead the Press Release
DETROIT – An equity fund CEO was charged with bilking investors of over $27 million by fraudulently exaggerating his fund’s investment performance and by embezzling from the fund, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Division of the Federal Bureau of Investigation.
Andrew H. Middlebrooks, age 30, of Dallas, Texas, the former majority owner, chief executive officer, chief investment officer, and portfolio manager of EIA All Weather Alpha Fund 1 Partners (EIA) is charged in a Criminal Information with one count of wire fraud. During a significant part of the scheme, Middlebrooks resided in the Detroit metropolitan area. The information charges that from May 2017 through May 2022, Middlebrooks solicited clients for EIA by telling them he was able to exploit “inefficiencies” in global equity markets which would result in large returns for investors. From the beginning of the scheme to defraud, however, EIA’s fund failed to produce the predicted returns and suffered catastrophic losses.
Instead of informing EIA’s existing investors that the fund was failing, Middlebrooks solicited new investors with false statements about the fund’s performance and lulled existing investors by lying to them about the returns their investments generated. Middlebrooks also created and distributed false documents claiming that EIA’s performance was exceptional. In one document, created in the fall of 2019, Middlebrooks falsely claimed that EIA’s track record included a cumulative return of 476.81% with 81.82% of monthly trading showing a profit.
Middlebrooks also lied to investors about how their money would be used. During the scheme, Middlebrooks routinely took money from the fund for living expenses and transferred money from the fund to his wife’s business. By the Spring of 2022, Middlebrook’s scheme to defraud began unraveling, and EIA’s fund collapsed. Losses to at least 100 investors exceeded $27 million.
“Middlebrooks used an apparently legitimate company, sophisticated methods, and a complex web of lies to deceive his victims, but his crime amounts to nothing more than theft and unbridled greed. Middlebrooks’s ability to convince the victim-investors that his false promises were true allowed him to steal their money,” said United States Attorney Dawn N. Ison. “Today’s charge demonstrates our commitment to ensure the integrity of our financial systems.”
“Mr. Middlebrook allegedly lied to and stole money from investors and potential investors by providing false financial statements and inflating the fund's returns,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Division. “This case is an example of the FBI’s commitment to work with our partners to investigate those engaged in financial fraud and to protect the financial well-being of honest, hard-working Americans.”
Middlebrooks faces the following statutory maximum penalties: 20 years in prison, a $250,000 fine, and up to 3 years supervised release. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The investigation of this case was conducted by the Federal Bureau of Investigation. Both the United States Attorney’s Office and the Federal Bureau of Investigation wish to acknowledge and thank the Securities and Exchange Commission for its assistance.
DermaTran and three other pharmacies pay over $6.8 million to settle civil claimsRead the Press Release
ATLANTA - DermaTran Health Solutions, LLC; Pharmacy Insurance Administrators, LLC; Legends Pharmacy; TriadRx; and the former owners of Lake Side Pharmacy and related entities, agreed to pay $6,876,564 to resolve allegations that they violated the False Claims Act by waiving copays, charging the government higher prices than permitted, and trading federal healthcare business with other pharmacies.
“Waiving copays and charging the government higher prices leads to overutilization and costs federal programs millions of dollars in unnecessary spending,” said U.S. Attorney Ryan Buchanan. “Our office will continue to enforce the False Claims Act to recover government payments that result from such misconduct.”
“Health care fraud abuse like this case erodes the trust patients have in the health care system,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI will not stand by when there are allegations of companies operating corporate wide schemes to illegally line their pockets.”
“Fraud through compounding pharmacies bilked billions out of TRICARE and undermined the integrity of our healthcare system designed to care for our service members and their families,” stated Cynthia Bruce, Special Agent in Charge of the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service (DCIS). “I appreciate the partnership among involved law enforcement agencies and the U.S. Attorney’s Office to bring this matter to justice.”
“The OPM OIG has no tolerance for businesses that knowingly take advantage of FEHBP, violating the rules to make a profit,” said Amy K. Parker, Special Agent in Charge, OPM OIG. “I am extremely proud of the hard work of our investigators, analysts, and other law enforcement partners because overcharging the government is not a victimless crime – it contributes to higher premium prices and harms the financial integrity of the FEHBP.”
“The U.S. Postal Service, Office of Inspector General, will continue to tirelessly investigate those who commit frauds against federal benefit programs and the U.S. Postal Service. This settlement is a clear message that the USPS OIG is dedicated to rooting out corruption and bringing to justice those responsible for these crimes, said Special Agent in Charge Matthew Modafferi of the U.S. Postal Service, Office of Inspector General Northeast Area Field Office. The USPS OIG would like to thank our law enforcement partners and the Department of Justice for their efforts in this investigation”.
“Health care providers that try to boost their profits by submitting fraudulent claims to Federal health care programs threaten the integrity of those programs and drive up prices for everyone,” said Tamala E. Miles, Special Agent in Charge with the U.S. Department of Health and Human Services Office of Inspector General. “We work tirelessly alongside our law enforcement partners to protect the integrity of Federal health care programs and to ensure the appropriate use of taxpayer dollars.”
The government alleged that in 2012, pharmacy DermaTran Health Solutions, LLC (“DermaTran”), opened in Rome, Georgia, for the purpose of making and selling custom “compound” pain creams. DermaTran’s owners during the relevant time include DIII Consulting, LLC; SRM Holdings, LLC; Gussenhoven Holdings, LLC; Sam Moss; and Robert Gussenhoven. At the same time, another company named Pharmacy Insurance Administrators, LLC (“PIA”), was created to handle the billing for DermaTran. During the relevant time, PIA was a subsidiary of Insurance Administrative Solutions, LLC; which was a subsidiary of Gulfcoast Administrators, LLC; which was majority-owned by Life & Health Holdings, Inc.; which was a subsidiary of State Mutual Insurance Company.
Compound pain creams were very lucrative. Government-backed health insurance programs such as TRICARE (for the military) and the Federal Employees Health Benefits Program (for federal workers) would reimburse hundreds of dollars for these prescriptions. But the government programs imposed certain restrictions to limit spending. For example, patients were required to contribute to the cost of the prescription in the form of copays. The government programs also limited payments to the “usual and customary price”—the price charged to a cash-paying, uninsured patient.
The Government alleged that DermaTran and PIA found ways to avoid these restrictions. DermaTran and PIA created a copay-waiver program where patients would have their copays waived based on a brief, unverified statement of economic need. DermaTran and PIA also misled the government programs about the price being charged to uninsured, cash-paying patients by falsely stating that that price was high when, in fact, it was only $30. As a result, there were days that veterans were charged $600+ for pain creams, while uninsured patients were charged only $30.
Eventually, various auditors uncovered these problems and began to terminate DermaTran from their networks. The Government alleged that DermaTran, looking for a way to continue to earn money, began selling its out-of-network prescriptions to other pharmacies. The other pharmacies could fill the prescriptions because they were still in network. After filling the lucrative prescriptions, the other pharmacies remitted a portion of the proceeds to DermaTran and PIA. The government alleged that this arrangement constituted an illegal kickback. The other pharmacies that participated in this prescriptions-for-money scheme included Legends Pharmacy (in Texas), Lake Side Pharmacy (in Alabama), and TriadRx (in Alabama).
The Government’s False Claims Act claims based on the above allegations are being settled. PIA will contribute $6.5 million to the settlement. DermaTran is no longer operating and was sold in an arm’s-length transaction to a third-party buyer last year for the price of $40,000. That amount will be turned over to the government as part of the settlement. MLDP of Texas, LP (a/k/a “Legends Pharmacy”) will pay $59,293. TRIAD Rx, Inc. will pay $166,547. Lake Side Pharmacy is no longer in business, but former owners of Lake Side Pharmacy will pay $110,724. The former owners include Titan Medical Marketing, LLC; Donald Wayne Bogue; George Takashi Elkins; James Bernard Bogue, Jr.; Robert Joseph Puckett, Jr.; Robert Joseph Puckett, Sr.; Stephen Weston Wilson; and Charles Franklin Taylor, Jr.
This civil settlement resolves a lawsuit filed in the U.S. District Court for the Northern District of Georgia by a former accountant for DermaTran, under the qui tam, or whistleblower provisions, of the False Claims Act. United States ex rel. Doe v. DermaTran Health Solutions, LLC, et al., Civil Action No. 1:17-CV-1765. Under the False Claims Act, private citizens may bring suit for false claims on behalf of the United States and share in any recovery obtained by the government. The whistleblower will receive $1,434,775 from the settlements. PIA will also pay her attorney’s fees.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the FBI, the Defense Criminal Investigative Service, the US Office of Personnel Management – Office of the Inspector General, the U.S. Postal Service – Office of Inspector General, and the Health and Human Services – Office of Inspector General.
The civil settlement was reached by Assistant U.S. Attorney Anthony DeCinque.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Connecticut Man Pleads Guilty to Alien Smuggling and Possession of Child PornographyRead the Press Release
PLATTSBURGH, NEW YORK – Jose Angel Portillo-Lopez, age 72, of Norwalk, Connecticut, pled guilty today to conspiracy to commit alien smuggling and possession of child pornography.
The announcement was made by United States Attorney Carla B. Freedman and Acting Chief Patrol Agent Keith Hoops, United States Border Patrol, Swanton Sector.
Portillo-Lopez admitted that in April 2021, he traveled to the border in Burke, New York, where he assisted in the smuggling of four Vietnamese nationals from Canada and into the United States for profit. Further, the investigation revealed, and Portillo-Lopez admitted, that he possessed videos of child pornography on his cellphone.
Sentencing is scheduled for February 8, 2023, before United States District Judge David N. Hurd in Utica, New York, at which time Portillo-Lopez faces a mandatory term of 10 years in prison, a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the United States Border Patrol, Burke Station, and Homeland Security Investigations, and was prosecuted by Assistant U.S. Attorney Jeffrey C. Stitt.
Columbia County man sentenced to prison after admitting to possession of child pornographyRead the Press Release
AUGUSTA, GA: A Columbia County, Ga., man has been sentenced to federal prison after admitting he possessed images of children being sexually exploited.
Mark Christopher Greene, 46, of Appling, Ga., was sentenced to 102 months in prison after pleading guilty to Possession of Child Pornography, said David H. Estes, U.S. Attorney for the Southern District of Georgia. U.S. District Court Chief Judge J. Randal Hall also ordered Greene to pay $18,000 in restitution, to serve 15 years of supervised release and register as a sex offender after completion of his prison term.
There is no parole in the federal system.
“Protecting our most vulnerable citizens is an essential element of public safety,” said U.S. Attorney Estes. “We commend our vigilant law enforcement partners for identifying and shutting down digital predators.”
The investigation of Greene began in December 2019 when the National Center for Missing and Exploited Children received a cyber tip that identified images of child pornography. Armed with a search warrant, agents from the Georgia Bureau of Investigation seized electronic devices from Greene’s Appling residence and discovered dozens of images and videos of child exploitation on those devices.
Greene was on probation for a prior conviction for drug possession at the time of his arrest on the child pornography charge.
“The GBI will continue to work tirelessly to protect innocent child victims of online exploitation,” said Michael Register, Director of the GBI. “We are grateful for the relationships we maintain with our federal partner agencies to bring these offenders to justice.”
The case was investigated by the Georgia Bureau of Investigation and prosecuted for the United States by Assistant U.S. Attorney Jeremiah L. Johnson and Assistant U.S. Attorney 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/.
Citrus County Convicted Felon Indicted for Possessing Multiple FirearmsRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces the return of a superseding indictment charging Timothy James Roberts (29, Hernando) with possession of an unregistered National Firearms Act (NFA) weapon (short-barreled shotgun) and two counts of possession of a firearm by a convicted felon. Roberts faces a maximum penalty of 10 years in federal prison on the unregistered NFA weapon count, and up to 15 years’ imprisonment on each count of possession of a firearm by a convicted felon.
According to the superseding indictment, Roberts was in possession of firearms on two separate occasions. On August 7, 2022, he possessed a short-barreled shotgun not registered to him in the National Firearms Registration and Transfer Record. Additionally, on August 31, 2022, Roberts was in possession of a pistol and a revolver. Roberts has four prior felony grand theft convictions in state court. As a convicted felon, he is prohibited from possessing firearms or ammunition under federal law.
A superseding indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Citrus County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It will be prosecuted by Assistant United States Attorney Sarah Janette Swartzberg.
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.
Charleston Man Sentenced to more than 18 Years in Drug Trafficking CaseRead the Press Release
Oxford, MS – A Charleston man was sentenced Tuesday to more than 18 years in prison for selling methamphetamine.
According to court documents, James Taylor, 35, of Charleston, Mississippi pled guilty in the United States District Court for the Northern District to Mississippi to one count of conspiracy to traffic drugs. Taylor was sentenced by U.S. District Court Judge Sharion Aycock to 219 months for the conspiracy. He was further sentenced to 5 years supervised release following his release from prison. Taylor is currently in custody.
Taylor oversaw the drug trafficking organization of nine other defendants who were charged with conspiracy to distribute drugs and drug distribution. The investigation of this drug trafficking organization and its participants spanned multiple years.
Individuals who have been charged with conspiracy to distribute methamphetamine in this case include: Demandrick Hayes, Alvin Johnson, Linda Hunt, Brenda Hunt, Genise Cox, Aaron Prince, Dexter Ray, and Dana Smith.
“This conviction and lengthy sentence exemplifies DEA’s relentless commitment to keep dangerous drugs and those who traffic them off of our streets,” said DEA Assistant Special Agent in Charge Kevin Gaddy. “DEA, along with our federal, state and local law enforcement partners, will continue to focus on these drug trafficking organizations that spread poison in our communities.”
U.S. Attorney Clay Joyner remarked, “This case is a textbook example of what multiple federal and state agencies can accomplish when working in concert. This sentence was more than justified in this wide ranging, multi-state conspiracy.”
The Drug Enforcement Administration and the Mississippi Bureau of Narcotics investigated the case as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program in partnership with state and local law enforcement. Agencies assisting with the investigation included the United States Marshal’s Service, the United States Postal Inspector’s Service, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Tallahatchie County Sheriff’s Department, the Charleston Police Department, and the Leflore County Sheriff’s Department.
Assistant U.S. Attorney Clyde McGee prosecuted the case.
Charleston Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Kevin Gerard Denson, 36, of Charleston, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on June 30, 2022, law enforcement officers were dispatched to Leon Sullivan Way in Charleston in response to a report of shots fired. Officers encountered Denson exiting a vehicle in an alley near Jet Life Apparel. Officers found two firearms in the vehicle, a Dickinson, model XXPA, 12-gauge shotgun and a Smith & Wesson, model M&P 15, 5.56-caliber rifle. Both firearms were loaded with high-capacity drum magazines.
Officers also found a bullet hole at the entrance to Jet Life Apparel, and obtained a search warrant for the store’s video surveillance system. The footage showed Denson carrying the two firearms and Jonathan Kennedy, 41, of St. Albans, running across the store while holding the shotgun following an apparent altercation outside.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Denson knew he was prohibited from possessing a firearm because of his prior felony conviction for delivery of cocaine in Kanawha Circuit Court on June 12, 2013.
Denson is scheduled to be sentenced on February 1, 2023, and faces a maximum penalty of 15 years in prison, three years of supervised release, and a $250,000 fine.
The video surveillance footage showed Kennedy and Denson possessed the firearms after a vehicle stopped in front of Jet Life Apparel and its driver fired a pistol in the direction of the store following an apparent verbal argument. Officers recovered a spent 9mm casing from the street near where the pistol was fired from the vehicle.
Kennedy pleaded guilty to being a felon in possession of a firearm on October 4, 2022.
Jamon L. Woodson, 39, was indicted on one count of being a felon in possession of ammunition as the alleged driver of the vehicle. The indictment alleges Woodson possessed 9mm ammunition on June 30, 2022, and that he knew he was prohibited from possessing ammunition because of his felony conviction for conspiracy to distribute more than 500 grams of cocaine and a quantity of marijuana in United States District Court for the Northern District of West Virginia on January 7, 2011. Woodson was arraigned on the indictment on September 29, 2022, and his trial is scheduled for November 15, 2022. An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Charleston Police Department.
Chief United States District Judge Thomas E. Johnston presided over the hearings. Assistant United States Attorney Nowles Heinrich is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-145.
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Central Florida Government Worker Sentenced to 15 Months in Federal Prison for Fraud and Distribution of A Controlled SubstanceRead the Press Release
Orlando, FL – U.S. District Judge Gregory A. Presnell has sentenced Joseph Ellicott (43, Bradenton) to 15 months in federal prison for conspiracy to commit wire fraud, honest services fraud, and distribution of a controlled substance. The court also ordered Ellicott to forfeit $114,747, which are traceable to proceeds of the offense. Ellicott had pleaded guilty on February 9, 2022.
According to court documents, in January 2017, Ellicott was hired by a government agency in Seminole County (Governmental Agency) as a Special Projects Manager. The elected head of the Governmental Agency was a public official and Ellicott’s friend (Public Official). Beginning at least by January 2017, and continuing through 2019, Ellicott, the Public Official, and a contractor with the Governmental Agency (Contractor Conspirator) conspired with each other to commit wire fraud and honest services fraud.
The conspiracy involved the Contractor Conspirator and the Contractor Conspirator’s company entering into a contract with the Governmental Agency to provide goods and services to the Governmental Agency. The Contractor Conspirator and the Contractor Conspirator’s company submitted inflated invoices for payment. The Public Official agreed to use his official position to provide favorable official action on behalf of the Contractor Conspirator and the Contractor Conspirator’s company, including by continuing to employ the Contractor Conspirator and the Contractor Conspirator’s company and by causing the Contractor Conspirator and the Contractor Conspirator’s company to be paid, including for the inflated invoices. In exchange for the Public Official providing such favorable official action, the Contractor Conspirator agreed to pay bribes and kickbacks to the Public Official. Ellicott’s role in the conspiracy was to serve as the intermediary for the payment of a bribe and kickback of $6,000 that was made on September 25, 2017.
Further, for at least two years, Ellicott illegally sold Adderall to others. Over the course of at least two years, one of Ellicott’s customers paid him more than $5,000 for hundreds of Adderall pills.
This case was investigated by the United States Secret Service, the Federal Bureau of Investigation, and the Seminole County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Jennifer M. Harrington and Amanda S. Daniels and United States Attorney Roger B. Handberg.
Canton Woman Admits Defrauding HUD Section 8 Housing ProgramRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that DONNA CARNEY, 67, of Canton, pleaded guilty today before U.S. Circuit Judge Sarah A. L. Merriam in Bridgeport to one count of theft of government property.
According to court documents and statements made in court, in approximately 1995, Carney began receiving Section 8 tenant-based rental assistance under the housing choice voucher program of the U.S. Department of Housing and Urban Development (“HUD”). From approximately 2004 to 2019, Carney failed to report to HUD that she was married to her landlord and therefore had an interest in the home in which she lived, failed to report certain others living in her home, and falsely claimed that unauthorized residents were live-in aides.
Judge Merriam scheduled sentencing for February 2, 2023, at which time Carney faces a maximum term of imprisonment of 10 years.
Carney is released on $50,000 bond pending sentencing.
This investigation has been conducted by the U.S. Department of Housing and Urban Development – Office of Inspector General for Investigations and the Canton Police Department. The case is being prosecuted by Assistant U.S. Attorney Heather Cherry.
Broward County Couple Charged in Alleged Ponzi SchemeRead the Press Release
MIAMI – David Joseph Varrone, 56, and wife Sherry Varrone of Weston, Fla., have been charged in federal court with conspiring to commit wire fraud through an elaborate credit “leasing” and investment Ponzi scheme linked to their company, The Credit Engineers Inc.
According to allegations in separately filed Informations, from 2018 through 2021, the Varrones offered individuals with good credit a short-term “Credit Leasing” investment program tied to a purported hedge fund that would yield a guaranteed return on investments plus fully repay the loans within 36 months or less. The Varrones and their co-conspirators helped victims apply for the high interest, short term loans and the victims “leased” the proceeds to The Credit Engineers and David Varrone. However, there was no hedge fund and victims’ funds never were invested. Instead, the proceeds were used to enrich the Varrones and to pay back earlier victims—i.e., a Ponzi scheme. In total, the scheme funneled over $6.4 million of misappropriated victims’ funds into the Varrones’ accounts. Additionally, David Varrone fraudulently applied for and received approximately $650,000 in C.A.R.E.S. Act, Economic Injury Disaster Relief Loans from the U.S. Small Business Administration (SBA). These loans are intended to keep small businesses afloat and retain employees.
David Varrone was arraigned Tuesday and Sherry was arraigned today. If convicted, David Varrone faces a maximum penalty of 30 years in prison and Sherry Varrone faces a maximum penalty 0f 5 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines along with other mitigating, aggravating, and statutory factors.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Russell C. Weigel III, Commissioner of Florida’s Office of Financial Regulation (OFR), made the announcement.
OFR investigated the case, with assistance from the U.S. Secret Service. Assistant U.S. Attorney Trevor Jones is prosecuting the case. Assistant U.S. Attorney Emily Stone is handling asset forfeiture.
An information is a charging instrument containing allegations. A defendant is presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case numbers 22-cr-60197 and 22-cr-60196.
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Brother of Former L.A. City Councilman José Huizar Admits Lying to Investigators about Converting Cash to Checks for Ousted PoliticianRead the Press Release
LOS ANGELES – Salvador Huizar – the brother of former Los Angeles City Councilman José Huizar, who faces federal racketeering charges stemming from a “pay-to-play” scheme – admitted in a plea agreement filed today in United States District Court that he took cash from José Huizar on numerous occasions and immediately wrote checks back to him or arranged to pay his expenses, and then lied about his actions to federal investigators.
Salvador Huizar, 57, of Boyle Heights, agreed to plead guilty to one felony count of making false statements to federal investigators, acknowledging that he repeatedly lied about accepting cash from his brother, including to a federal grand jury and most recently two weeks ago during an interview with FBI agents and federal prosecutors.
“Between at least November 26, 2013, and August 22, 2018, upon José Huizar’s request, [Salvador Huizar] accepted envelopes of cash from José Huizar on at least 20 occasions,” Salvador Huizar admitted in the plea agreement. “In exchange, [Salvador Huizar] contemporaneously wrote checks, or facilitated electronic payments from [his] own bank account, to either José Huizar directly or to pay José Huizar’s expenses in the same amounts as the cash provided by José Huizar.”
Even though Salvador Huizar asked his brother on multiple occasions about the cash, José Huizar said “it was better that [Salvador Huizar] did not know the source of the cash,” according to the plea agreement.
Salvador Huizar admitted he lied to FBI agents on November 17, 2018, when he falsely stated that José Huizar never asked him to write any checks, except on two occasions and for which he was not paid back. However, on at least 20 occasions, José Huizar gave his brother an envelope of cash and asked him to write checks or facilitate electronic payments to José Huizar or for his expenses, the plea agreement states.
Salvador Huizar also admitted he made false statements to the FBI and federal prosecutors on January 30, 2020 – when he said cash from his brother was to pay off a debt or that he received cash later, after the check was written – and two weeks ago when he reiterated these false statements before recanting and saying José Huizar regularly had cash with him and gave Salvador Huizar cash at the time he wrote the checks.
During an appearance before a federal grand jury on March 5, 2020, Salvador Huizar also made false statements when he testified under oath that cash from José Huizar was to pay off a debt and that cash was received only after Salvador Huizar wrote a check to his brother.
As part of his plea agreement, Salvador Huizar has agreed to cooperate with the government’s ongoing investigation and has agreed to testify at the next two trials in this case.
Salvador Huizar is expected to formally enter his guilty plea before a federal judge in the coming weeks. The charge of making a false statement to a federal agency carries a statutory maximum sentence of five years in federal prison.
Assistant United States Attorneys Mack E. Jenkins, Chief of the Public Corruption and Civil Rights Section; Susan S. Har and J. Jamari Buxton of the Public Corruption and Civil Rights Section; and Patrick A. Castañeda of the International Narcotics, Money Laundering, and Racketeering Section are prosecuting the case against Salvador Huizar.
José Huizar and former Los Angeles Deputy Mayor Raymond Chan are scheduled to go to trial on February 21, 2023, on federal charges alleging they conspired to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act. Huizar allegedly agreed to accept at least $1.5 million in illicit financial benefits and faces dozens of additional federal criminal charges.
Previously in this racketeering case, real estate developer Dae Yong Lee and one of his companies were convicted in June of federal criminal charges for providing $500,000 in cash to José Huizar and his special assistant in exchange for their help in resolving a labor organization’s appeal of their downtown Los Angeles development project and obstructing justice by falsifying financial documents.
The next scheduled trial in this case is scheduled to begin October 25. Shen Zhen New World I LLC, an entity owned by real estate developer Wei Huang, is charged with bribing Huizar related to another downtown Los Angeles development project. Huang remains a fugitive.
Any member of the public who has information related to this or any other public corruption matter in the City of Los Angeles is encouraged to send information to the FBI’s tip line at tips.fbi.gov or to contact the FBI’s Los Angeles Field Office at (310) 477-6565.
Brookhaven Man Sentenced to 10 Years in Federal Prison for Distributing MethamphetamineRead the Press Release
Jackson, Miss. – A Brookhaven man was sentenced to 120 months in prison for distributing 50 grams or more of methamphetamine, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Richard Butler, 42, was sentenced in U.S. District Court in Jackson. Butler was further ordered to a five year term of supervised release following his prison term, and forfeiture of multiple firearms.
According to court documents, on September 25, 2019, following an investigation into sources of methamphetamine, agents with ATF and the Mississippi Bureau of Narcotics conducted a controlled purchase of 54 grams of methamphetamine from Butler in Brookhaven. Following this purchase, agents, using a cooperating person, purchased additional methamphetamine from Butler. Butler, a convicted felon, possessed a firearm when he was arrested.
Butler was indicted by a federal grand jury on March 16, 2021. He pled guilty on June 24, 2022, to possession with intent to distribute methamphetamine.
The Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives and Mississippi Bureau of Narcotics investigated the case.
This case was prosecuted by Assistant U.S. Attorney Bert Carraway.
Bowling Green Federal Grand Jury Returns Five Indictments for Drug Trafficking and Firearms OffensesRead the Press Release
Bowling Green, KY – A federal grand jury in Bowling Green returned five indictments today separately charging individuals with drug trafficking and firearms offenses.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, Special Agent in Charge Jerry C. Templet, Jr. of the Department of Homeland Security Investigations, and Special Agent in Charge J. Todd Scott of the DEA Louisville Field Division made the announcement.
According to the indictments:
Ahmed Al-Dulaimi, 23, of Bowling Green, is charged with being a felon in possession of three firearms. His prior felony convictions include theft by unlawful taking ($500 or more), fraudulent use of a credit card ($500 or more but less than $10,000), retaliation against a participant in the legal process, theft by unlawful taking (firearm), and receiving stolen property (firearm). If convicted, he faces a maximum of 10 years in prison;
Michael S. Johnson, 45, of Adolphus, KY, is charged with possessing with the intent to distribute 50 grams or more of methamphetamine. If convicted, he faces a minimum sentence of 10 years and a maximum sentence of life in prison;
James Duke, 43, of Campbellsville, KY, is charged with being a felon in possession of a firearm. His prior felony convictions include third-degree burglary, knowingly and fraudulently using an ID card/electronic code for benefits, and manufacturing methamphetamine. If convicted, he faces a maximum of 10 years in prison;
David Bridgewater, 39, of Campbellsville, KY, is charged with being a felon in possession of a firearm. His prior felony convictions include possession of a firearm by a convicted felon, first-degree wanton endangerment, and first-degree possession of a controlled substance. If convicted, he faces a maximum of 10 years in prison; and
Bladimir Gomez-Aguilar, 38, a citizen of Mexico, is charged with unlawful re-entry into the United States and possessing a firearm by a person unlawfully in the United States. If convicted, he faces a maximum of 15 years in prison.
A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. There is no parole in the federal system.
The ATF Bowling Green Field Office, the Department of Homeland Security Investigations, the DEA, the Bowling Green/Warren County Drug Task Force, the Kentucky State Police, the Bowling Green Police Department, the Campbellsville Police Department, the Kentucky Department of Fish and Wildlife Resources, and the Allen County Sheriff’s Office are investigating the cases.
These cases are being prosecuted by Assistant U.S. Attorneys Mark J. Yurchisin II and Madison Sewell of the U.S. Attorney’s Bowling Green Branch Office.
These cases are 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.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Billings man sentenced to five years in prison for sending nude picture of himself to fictitious girl in undercover operationRead the Press Release
BILLINGS — A Billings man who admitted to sending a nude picture of himself to a fictitious girl during an undercover sting operation was sentenced today to five years in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
Martin Leo Jimenez, 28, pleaded guilty in May to attempted transfer of obscene material to a minor.
U.S. District Judge Susan P. Watters presided.
In court documents, the government alleged that in October 2021, law enforcement was conducting an undercover sting investigation to identify and arrest individuals who were attempting to have sex with children. Jimenez responded to an undercover post and began to correspond with a fictitious mother to arrange for a sexual encounter with the mother’s fictitious 11-year-old daughter. During electronic communications with the undercover officer, Jimenez offered that he had “no age limits,” sent a nude picture of himself and discussed the various sexual acts he wanted to perform on the fictitious girl. The parties made plans to meet, and law enforcement arrested Jimenez when he arrived at the location. Jimenez later acknowledged that he intended to have sex with the mother and daughter.
Assistant U.S. Attorney Zeno B. Baucus prosecuted the case, which was investigated by the FBI, Billings Police Department, Yellowstone County Attorney’s Office and Yellowstone County Sheriff’s Office.
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Baltimore Businessman Pleads Guilty to Employment Tax CrimesRead the Press Release
A Baltimore businessman pleaded guilty today to willfully failing to account for and pay over employment taxes to the IRS.
According to court documents and statements made in court, Jonas Purisch operated two employee staffing companies, Titan Staffing Network, Inc. and Titan Services, LLC, which both provided workers for third-party manufacturing businesses in Maryland. Purisch owned the two companies and was responsible for their operations, including withholding and paying over to the IRS employment taxes on behalf of the employees. Between March 2018 and March 2021, Purisch withheld but did not pay over to the IRS more than $2 million in payroll taxes on behalf of the two companies’ employees. As part of his guilty plea, Purisch has agreed to pay more than $3.4 million in restitution to the IRS. This amount includes the employer’s share of the employment taxes Purisch owed to the IRS.
In April 2013, Purisch was convicted in the District of Maryland of filing a false individual income tax return and willful failure to file a tax return. He was sentenced to three months in prison.
Purisch is scheduled to be sentenced on Dec. 12. He faces a maximum of five years in prison for willful failure to account for and pay over employment taxes. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Erek L. Barron for the District of Maryland made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorney Michael C. Vasiliadis of the Tax Division is prosecuting the case.
Acting Deputy Assistant Attorney General Goldberg thanked the U.S. Attorney’s Office for the District of Maryland for its assistance in this matter.
Anchorage Man Pleads Guilty, Sentenced to Pay $4,000 Fine for Violating Marine Mammal Protection ActRead the Press Release
ANCHORAGE – An Anchorage man pleaded guilty to two counts of illegally trafficking in walrus ivory in U.S. District Court and ordered to pay a $4,000 fine and sentenced to two years probation.
Uzi Levi, 71, of Anchorage purchased six non-handicrafted Pacific walrus tusks and one three-tusked non-handicrafted Pacific walrus head mount from an undercover U.S. Fish and Wildlife Service special agent, all of which is in violation of the Marine Mammal Protection Act.
Under the Marine Mammal Protection Act, it is unlawful for a non-Alaskan native to transport, purchase, sell, export or offer to purchase, sell or export any marine mammal or marine mammal product for any purpose other than public display, scientific research or enhancing the survival of a species or stock or any marine mammal part that has not been made into an authentic native article of handicraft.
In June 2020, a special agent with the U.S. Fish and Wildlife Service observed what appeared to be an Alaskan Native male carrying a two-tusked, non-handicrafted walrus head mount into the car rental business office owned by Levi and then leave without it. A few weeks later, an undercover U.S. Fish and Wildlife Service special agent went to Levi’s car rental business and inquired about renting a vehicle. He explained that he didn’t have a lot of money and asked if there were other ways to rent a vehicle, such as trade or barter. The unidentified person at the business called Levi and handed the phone to the undercover agent. During this call and over the next eight months, Levi and the agent exchanged numerous phone calls and texts about the purchase of non-handicrafted, or raw, walrus ivory, which resulted in Levi purchasing six non-handicrafted Pacific walrus tusks on July 13, 2020, and one non-handicrafted, three tusked walrus head mount on September 29, 2020
Levi pleaded guilty to both counts and was sentenced before Chief United States District Court Judge Sharon L. Gleason. In handing down the sentence regarding Levi’s trafficking in raw ivory, Judge Gleason stated, “the defendant’s actions really impact Alaska Native artists who are trying to market their products.”
U.S. Attorney S. Lane Tucker for the District of Alaska made the announcement. The U.S. Fish and Wildlife Service investigated the case. Assistant U.S. Attorney Steve Skrocki prosecuted the case.
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Albert Lea Bookkeeper Pleads Guilty to Embezzling More Than $200,000 in Public Housing Rent PaymentsRead the Press Release
MINNEAPOLIS – An Albert Lea woman has pleaded guilty to stealing more than $200,000 in tenant rent payments, announced U.S. Attorney Andrew M. Luger.
According to court documents, between January 2010 and July 18, 2018, Marcie Marie Thumann, 44, worked as a bookkeeper for the Albert Lea Housing and Redevelopment Authority (HRA), a government program that received both federal and state funding to remedy the shortage of available low-incoming housing units. At the beginning of each month, the HRA’s computer system generated a rent-due balance for each tenant. Thumann, who was responsible for recording and reconciling payments to the HRA, received tenants’ rent payments via cash, check, or money order. During her tenure as the HRA’s bookkeeper, Thumann routinely embezzled HRA rent payments for her own personal use and benefit. She did so by pocketing cash payments and altering the payee information on payments made by check and money order. Thumann also manipulated the HRA’s computer system to conceal the money she stole, avoid detection, and prolong her fraud scheme. In total, Thumann stole at least $213,217 in tenant payments.
Thumann pleaded guilty today in U.S. District Court before Senior Judge David S. Doty to one count of theft from program receiving federal funds. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the U.S. Department of Housing and Urban Development – Office of the Inspector General and the Albert Lea Police Department.
Assistant U.S. Attorney Jordan L. Sing is prosecuting the case.
11 October 2022
Youngstown man admits to multiple drug chargesRead the Press Release
WHEELING, WEST VIRGINIA – Kamron Eugene Miller, Sr., of Youngstown, Ohio, has admitted to multiple drug charges, United States Attorney William Ihlenfeld announced.
Miller, 35, pleaded guilty today to one count of “Conspiracy to Distribute and Possess with the Intent to Distribute 50 Grams or More of Methamphetamine, Fentanyl, Cocaine Hydrochloride, and Cocaine Base,” three counts of “Distribution of 50 Grams or More of Methamphetamine,” one count of “Distribution of Methamphetamine,” and one count of “Distribution of Fentanyl.” Miller admitted to working with another to distribute the drugs from May to September 2021 in Hancock County and elsewhere, including the Northern District of Ohio.
His plea also agrees to the forfeiture of more than $210,000 in cash, an assault rifle, a pistol, and several rounds of ammunition seized during the investigation of the case.
Miller faces at least 10 years and up to life incarceration for the first five counts and faces up to 20 years of incarceration for the final count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Shawn M. Adkins and Clayton J. Reid are prosecuting the case on behalf of the government. The Hancock-Brooke-Weirton Drug Task Force, a HIDTA-funded initiative; the Drug Enforcement Administration Wheeling; the Drug Enforcement Administration Youngstown; and the Ohio Highway Patrol investigated. The Marshall County Drug Task Force, a HIDTA-funded initiative; the Ohio Valley Drug Task Force, a HIDTA-funded initiative; and the Mahoning County, Ohio Sheriff’s Office assisted in the investigation.
U.S. Magistrate Judge James P. Mazzone presided.
Yankton Woman Charged with Tampering with Consumer Products and Obtaining a Controlled Substance by FraudRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that a Yankton, South Dakota, woman has been indicted by a federal grand jury for two counts of Tampering with Consumer Products and two counts of Obtaining a Controlled Substance by Misrepresentation, Fraud, Forgery, Deception, and Subterfuge.
Lisa Merrigan, age 54, was indicted in October of 2022. She appeared before U.S. Magistrate Judge Veronica L. Duffy on October 6, 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 up to $400 to the Federal Crime Victims Fund. Restitution may also be ordered.
Counts one and two of the Indictment allege that on August 23, 2021, and September 7, 2021, Merrigan, who was working as a registered nurse in a hospital, tampered with vials of fentanyl citrate for injection stored inside the hospital’s Omnicell machine by removing the fentanyl citrate from the vials and replacing them with another liquid, knowing that the diluted fentanyl citrate could be dispensed to patients at the hospital.
Counts three and four of the Indictment allege that on August 23, 2021, and September 7, 2021, Merrigan knowingly and intentionally acquired and obtained fentanyl citrate, a Schedule II controlled substance, for injections by misrepresentation, fraud, forgery, deception, and subterfuge.
The charges are merely accusations and Merrigan is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Food and Drug Administration, Office of Criminal Investigations, the Drug Enforcement Administration, and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Ann M. Hoffman is prosecuting the case.
Merrigan was released on bond pending trial. A trial date has not been set.
Woman Pleads Guilty for Kidnapping Victim at KnifepointRead the Press Release
A Bristow woman pleaded guilty Tuesday for kidnapping a victim at knifepoint at a Sapulpa gas station and forcing her to drive to Kellyville, announced U.S. Attorney Clint Johnson.
Kimberly Nichole Biglow, 44, was convicted of kidnapping in Indian Country and assault with a dangerous weapon with intent to do bodily harm in Indian Country.
“Federal prosecutors and our partners at the Sapulpa and Kellyville Police Departments and the FBI remain committed to pursuing individuals who commit acts of violence within the Northern District of Oklahoma,” said U.S. Attorney Clint Johnson. “Kimberly Biglow has now been brought to justice for the harm and emotional distress she caused to the victim in this case.”
On Nov. 12, 2021, shortly before 6 am, the victim was at a Sapulpa gas station fueling her silver Ford F-350 when Biglow approached her wearing pink pants and a hoodie. The victim described her as acting and speaking strangely.
The victim believed the defendant was asking for a ride and told her she was unable to provide one. She continued fueling the vehicle and believed Biglow had walked into the convenience store.
Instead, when she entered her truck, she saw Biglow in the passenger’s seat pointing an open folding knife with a silver blade at her. Biglow demanded the victim take her to a location in Sapulpa. The victim complied and initially drove around Sapulpa before being directed to drive south toward Kellyville on Highway 66.
The victim then told Biglow that her family had likely already contacted authorities since she had not answered their call. Panicked, Biglow directed the victim to stop and exited the vehicle near a Phillips 66 gas station on Highway 66 in Kellyville.
The victim called 911 and drove back north where she met with a responding Sapulpa police officer. Biglow was located outside the Phillips 66 in Kellyville and taken into custody.
The FBI, Sapulpa Police Department, and Kellyville Police Department conducted the investigation. Assistant U.S. Attorney Alex Scott and Spencer Willson are prosecuting the case.
Washington Woman Pleads Guilty to Conspiring to Destroy or Remove Property to Prevent SeizureRead the Press Release
FRESNO, Calif. — Brigit Marie Bissell, 27, of Bothell, Washington, pleaded guilty today to conspiring to destroy or remove property to prevent seizure, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Jan. 14, 2022, Bissell was arrested in Fresno County. Following Bissell’s arrest, agents seized two of her cellphones and informed her they would be seeking a search warrant to search the contents of her phones.
Between Jan. 16, 2022, and Jan. 17, 2022, Bissell called her associate from jail and explained that the FBI had seized her phones and was in the process of obtaining a search warrant. Bissell then instructed her associate to log in to her iCloud account and delete the contents of her phone. Bissell’s associate agreed to carry out their plan of deleting the contents of the phone for the purpose of preventing or impairing the FBI’s investigation.
The case is the product of an investigation by the Federal Bureau of Investigation, the California Highway Patrol’s Special Operations Unit, and the Fresno High Impact Investigations Team. Assistant U.S. Attorney Antonio J. Pataca is prosecuting the case.
Bissell is scheduled to be sentenced by U.S. District Judge Ana de Alba on Jan. 17, 2023. Bissell faces a maximum sentence of five years in prison and a fine up to $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Wakonda Man Charged with Theft in Connection with Health Care and Obtaining a Controlled Substance by MisrepresentationRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that a Wakonda, South Dakota, man has been indicted by a federal grand jury for one count of Theft in Connection with Health Care and three counts of Obtaining a Controlled Substance by Misrepresentation, Fraud, Forgery, Deception, and Subterfuge.
Cody Carstensen, age 46, was indicted in October of 2022. He appeared before U.S. Magistrate Judge Veronica L. Duffy on October 5, 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 up to $400 to the Federal Crime Victims Fund. Restitution may also be ordered.
Count one of the Indictment alleges that between June 2019 and February 2022, Carstensen knowingly and willfully embezzled, stole, and converted without authority to the use of any person other than the rightful owner hydrocodone, oxymorphone, oxycontin, oxycodone, and morphine valued at more than $100.
Count two of the Indictment alleges that between June 13, 2020, and May 22, 2021, Carstensen knowingly and intentionally acquired and obtained hydrocodone, a Schedule II controlled substance, by misrepresentation, fraud, forgery, deception, and subterfuge.
Count three of the Indictment alleges that between July 22, 2020, and December 15, 2020, Carstensen knowingly and intentionally acquired and obtained morphine, a Schedule II controlled substance, by misrepresentation, fraud, forgery, deception, and subterfuge.
Count four of the Indictment alleges that between April 2, 2020, and December 16, 2021, Carstensen knowingly and intentionally acquired and obtained oxycodone, a Schedule II controlled substance, by misrepresentation, fraud, forgery, deception, and subterfuge.
The charges are merely accusations and Carstensen is presumed innocent until and unless proven guilty.
The investigation is being conducted by DEA and DCI. Assistant U.S. Attorney Ann M. Hoffman is prosecuting the case.
Carstensen was released on bond pending trial which has been set for December 13, 2022.
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U.S. Attorney’s Office Announces Environmental Justice and Housing Conditions InitiativeRead the Press Release
PHOENIX, Ariz. – Ensuring safe housing conditions is a priority for the U.S. Attorney’s Office for the District of Arizona. Working with our DOJ partners, the U.S. Attorney’s Office seeks to secure environmental justice for all communities, particularly underserved communities that have been historically marginalized and overburdened, including low-income communities, communities of color, and Tribal and Indigenous communities, to ensure that everyone enjoys the same degree of protection from environmental and health hazards and equal access to a healthy environment in which to live, learn, play and work. To learn more about the Department of Justice’s environmental justice initiatives, visit the Office of Environmental Justice.
The U.S. Attorney for the District of Arizona, Gary Restaino, is pleased to announce that he has named an Environmental Justice Coordinator, who will coordinate with the Department of Justice and with other federal, state, Tribal, and local agencies on civil and criminal environmental justice matters that arise in the District of Arizona. The U.S. Attorney’s Office is particularly focused on advancing environmental justice through Title VI of the Civil Rights Act of 1964 and welcomes information from the public that brings to our attention possible discrimination against communities of color by local governments, including zoning and redevelopment decisions that disproportionately affect minority and underserved communities, and polluting businesses that receive municipal tax credits.
Please visit our Environmental Justice website for more information. If you are concerned about discriminatory environmental and housing conditions, email the U.S. Attorney’s Office at [email protected] and call DOJ Civil Rights at 1-888-TITLE-06 (1-888-848-5306).
RELEASE NUMBER: 2022-172_Environmental Justice
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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.
U.K. Businessman Graham Bonham-Carter Indicted for Sanctions Evasion Benefitting Russian Oligarch Oleg Vladimirovich DeripaskaRead the Press Release
A U.K. national was arrested today for conspiracy to violate U.S. sanctions imposed on Russian Oligarch Oleg Vladimirovich Deripaska and wire fraud in connection with funding U.S. properties purchased by Deripaska and efforts to expatriate Deripaska’s artwork in the United States through misrepresentations. The U.S. government will seek his extradition to the United States. Deripaska was previously charged with U.S. sanctions violations in an indictment unsealed on Sept. 29.
In 2014, the President issued Executive Order 13660, which declared a national emergency with respect to the situation in Ukraine. To address this national emergency, the President blocked all property of individuals determined by the U.S. Department of the Treasury to be responsible for or complicit in actions or policies that threatened the security, sovereignty or territorial integrity of Ukraine, or who materially assist, sponsor or provide support for individuals or entities engaging in such activities. Executive Order 13660 and regulations issued pursuant to it prohibit making or receiving any funds, goods or services by, to, from or for the benefit of any person designated by the U.S. Treasury.
On April 6, 2018, the U.S. Treasury’s Office of Foreign Assets Control (OFAC) designated Deripaska as a Specially Designated National (SDN), in connection with its finding that the actions of the Government of the Russian Federation with respect to Ukraine constitute an unusual and extraordinary threat to U.S. national security and foreign policy (the OFAC Sanctions). According to the U.S. Treasury, Deripaska was sanctioned for having acted or purported to act on behalf of, directly or indirectly, a senior official of the Government of the Russian Federation, and for operating in the energy sector of the Russian Federation economy.
According to court documents, Graham Bonham-Carter, 62, of the United Kingdom, worked for entities controlled by Deripaska from July 2003 through the present. Among other things, Bonham-Carter managed Deripaska’s residential properties located in the United Kingdom and Europe, including a house in Belgravia Square, London. Even after OFAC designated Deripaska, Bonham-Carter continued to work for Deripaska and refer to Deripaska as his “boss.” For example, in an email dated on or about June 18, 2018, Bonham-Carter wrote: “Times a bit tough for my boss as sanctions have hit him from the USA so not an ideal time.” In an email dated on or about Oct. 13, 2021, Bonham-Carter wrote: “It[’]s all good apart from banks keep shutting me down because of my affiliation to my boss Oleg Deripaska.... I have even been advised not to go to the USA where Oleg still has personal sanctions as the authorities will undoubtedly pull me to one side and the questioning could be hours or even days!!”
As alleged in the indictment, after Deripaska’s designation, Bonham-Carter engaged in over $1 million of illicit transactions to fund real estate properties in the United States for Deripaska’s benefit. Between in or about 2005 and in or about 2008, Deripaska purchased three residential properties in the United States, two in New York City and one in Washington, D.C. (the U.S. Properties). The properties were managed by a company named Gracetown Inc. After OFAC imposed sanctions on Deripaska on or about April 6, 2018, Gracetown Inc. continued to manage the properties Deripaska’s benefit. Shortly after Deripaska’s designation, Deripaska instructed Bonham-Carter to set up a new company for managing Deripaska’s properties. On or about May 25, 2018, Bonham-Carter wrote in an email that “OVD [i.e., Deripaska] wants me to set up my own company to run the [Belgravia Square] house and to possibly include Japan, Italy, China and more.” Less than two months later, on or about July 17, 2018, Bonham-Carter incorporated GBCM Limited.
Between in or about March 2021 and in or about December 2021, while in Deripaska’s employ, Bonham-Carter transmitted payments for the upkeep of the U.S. Properties. Bonham-Carter wired payments totaling $1,043,964.30 from a bank account in Russia held in the name of GBCM Limited, to bank accounts held by Gracetown Inc. in New York City. Gracetown Inc. used the funds from GBCM Limited to pay for various expenses associated with the U.S. Properties, including staff salaries, property taxes and other services, and to maintain and keep up the U.S. Properties.
As alleged, Bonham-Carter also attempted to unlawfully transfer artwork purchased by Deripaska from an auction house in New York City to London through misrepresentations concealing Deripaska’s ownership of the artwork. In May 2021, when advised by the auction house that it had reason to believe that the artwork belonged to Deripaska, Bonham-Carter falsely stated that the artwork and a payment of $12,146 that Bonham-Carter had made to ship the Artwork do not belong to Deripaska. In fact, as Bonham-Carter knew, Deripaska had purchased the artwork, it remained his property, and the funds used to pay for shipping would be billed to Deripaska.
Bonham-Carter is charged in a three-count indictment with one count of conspiring to violate and evade U.S. sanctions, in violation of the International Emergency Economic Powers Act (IEEPA), one count of violating IEEPA and one count wire fraud, each of which counts carries a maximum sentence of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Task Force KleptoCapture Director Andrew C. Adams, U.S. Attorney Damian Williams for the Southern District of New York and Assistant Director Alan E. Kohler Jr. of the FBI’s Counterintelligence Division made the announcement.
The FBI New York Field Office and Counterintelligence Division are investigating the case, with valuable assistance provided by the Justice Department’s National Security Division Counterintelligence and Export Control Section and the Justice Department’s Office of International Affairs. The National Crime Agency of the United Kingdom provided substantial assistance.
The investigation was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2 and run out of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
Assistant U.S. Attorneys Anden Chow and Vladislav Vainberg for the Southern District of New York are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.K. Businessman Arrested for Sanctions Evasion Benefitting Russian Oligarch Oleg DeripaskaRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York and Michael J. Driscoll, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an Indictment charging GRAHAM BONHAM-CARTER, a citizen of the United Kingdom, with conspiring to violate United States sanctions imposed on Russian oligarch Oleg Vladimirovich Deripaska and wire fraud in connection with BONHAM-CARTER’s funding of U.S. properties purchased by Deripaska and efforts to expatriate Deripaska’s artwork in the U.S. through misrepresentations. BONHAM-CARTER was arrested today in the United Kingdom, and the United States Government will be seeking his extradition to the United States. Deripaska was previously charged with U.S. sanctions violations in an Indictment unsealed on September 29, 2022 (the “Deripaska Indictment”).
U.S. Attorney Damian Williams said: “As alleged, Graham Bonham-Carter provided property management and other services to his employer, sanctioned Russian oligarch Oleg Deripaska. Bonham-Carter obscured the origin of funding for upkeep and management of Deripaska’s lavish U.S. assets, in violation of the international sanctions. OFAC sanctions preclude supporters of the brutal and unjust Russian war regime from using U.S. dollars in any financial transactions, and we thank our international partners for their continued partnership in enforcing this critical sanctions program.”
Andrew C. Adams, Director of Task Force KleptoCapture said: “The international real estate market, and its infamous opacity, afforded Bonham-Carter no shelter from the diligence and expertise of U.S. law enforcement and our partners. Others who would attempt to move illicit money through international markets should take notice: neither powerful connections nor sophisticated deceptions succeeded in hiding Bonham-Carter’s efforts to illegally service a sanctioned oligarch.”
FBI Assistant Director-in-Charge Michael J. Driscoll said: "With each new action we take, we shine a light on the vast network of individuals willing to work with Russian oligarchs who brazenly break our laws and abuse our financial systems. Bonham-Carter allegedly hid Deripaska's money and assets from federal authorities, and continued to do so even after Deripaska was sanctioned by the U.S. Our work would not be possible without the ongoing and dedicated partnerships with our international counterparts, all of whom are strategically focused on stopping the Russian oligarchs and their criminal kleptocracy."
According to the allegations contained in the Indictment unsealed today in Manhattan federal court and the Deripaska Indictment:[1]
In 2014, the President issued Executive Order 13660, which declared a national emergency with respect to the situation in Ukraine. To address this national emergency, the President blocked all property of individuals determined by the U.S. Treasury to be responsible for or complicit in actions or policies that threatened the security, sovereignty, or territorial integrity of Ukraine, or who materially assist, sponsor, or provide support individuals or entities engaging in such activities. Executive Order 13660 and regulations issued pursuant to it, prohibit making or receiving any funds, goods or services by, to, from, or for the benefit of any person designated by the U.S. Treasury.
On April 6, 2018, the United States Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) designated Deripaska as a Specially Designated National (“SDN”), in connection with its finding that the actions of the Government of the Russian Federation with respect to Ukraine constitute an unusual and extraordinary threat to U.S. national security and foreign policy (the “OFAC Sanctions”). According to the U.S. Treasury, Deripaska was sanctioned for having acted or purported to act on behalf of, directly or indirectly, a senior official of the Government of the Russian Federation, and for operating in the energy sector of the Russian Federation economy.
From approximately July 2003 through the present, BONHAM-CARTER worked for entities controlled by Deripaska. Among other things, BONHAM-CARTER manages Deripaska’s residential properties located in the United Kingdom and Europe, including a house in Belgravia Square, London. Even after OFAC designated Deripaska, BONHAM-CARTER continued to work for Deripaska and refer to Deripaska as his “boss.” For example, in an email dated on or about June 18, 2018, BONHAM-CARTER wrote: “Times a bit tough for my boss as sanctions have hit him from the USA so not an ideal time.” In an e-mail dated on or about October 13, 2021, BONHAM-CARTER wrote: “It[’]s all good apart from banks keep shutting me down because of my affiliation to my boss Oleg Deripaska.... I have even been advised not to go to the USA where Oleg still has personal sanctions as the authorities will undoubtedly pull me to one side and the questioning could be hours or even days!!”
As alleged in the Indictment, after Deripaska’s designation, BONHAM-CARTER engaged in over a million dollars of illicit transactions to fund real estate properties in the United States for Deripaska’s benefit. Between in or about 2005 and in or about 2008, Deripaska purchased three residential properties in the United States, two in New York, New York, and one in Washington, D.C. (the “U.S. Properties”). The properties were managed by a company named Gracetown, Inc. After OFAC imposed sanctions on Deripaska on or about April 6, 2018, Gracetown, Inc. continued to manage the properties for Deripaska’s benefit. Shortly after Deripaska’s designation, Deripaska instructed BONHAM-CARTER to set up a new company for managing Deripaska’s properties. On or about May 25, 2018, BONHAM-CARTER wrote in an email that “OVD [i.e., Deripaska] wants me to set up my own company to run the [Belgravia Square] house and to possibly include Japan, Italy, China and more.” Less than two months later, on or about July 17, 2018, BONHAM-CARTER incorporated GBCM Limited.
Between in or about March 2021 and in or about December 2021, while in Deripaska’s employ, BONHAM-CARTER transmitted payments for the upkeep of the U.S. Properties. BONHAM-CARTER wired payments totaling $1,043,964.30 from a bank account in Russia held in the name of GBCM Limited, to bank accounts held by Gracetown, Inc. in New York, New York. Gracetown, Inc. used the funds from GBCM Limited to pay for various expenses associated with the U.S. Properties, including staff salaries, property taxes, and other services, and to maintain and keep up the U.S. Properties.
As alleged, BONHAM-CARTER also attempted to unlawfully transfer artwork purchased by Deripaska from an auction house in New York City to London through misrepresentations concealing Deripaska’s ownership of the artwork. In May 2021, when advised by the auction house that it had reason to believe that the artwork belonged to Deripaska, BONHAM-CARTER falsely stated that the artwork and a payment of $12,146 that BONHAM-CARTER had made to ship the Artwork do not belong to Deripaska. In fact, as BONHAM-CARTER knew, Deripaska had purchased the artwork, it remained his property, and the funds used to pay for shipping would be billed to Deripaska.
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BONHAM-CARTER, 62, of the United Kingdom, is charged in a three-count Indictment with one count of conspiring to violate and evade U.S. sanctions, in violation of the International Emergency Economic Powers Act (“IEEPA”), one count of violating IEEPA, and one count of wire fraud, each of which carries a maximum sentence of 20 years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the FBI and its New York Field Office, Counterintelligence Division. Mr. Williams further thanked the Department of Justice’s National Security Division, Counterintelligence, and Export Control Section and the Justice Department’s Office of International Affairs of the Department’s Criminal Division for their guidance and support throughout this investigation. Finally, Mr. Williams praised the outstanding efforts of the authorities in the United Kingdom, in particular the National Crime Agency.
The investigation was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls, and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2 and run out of the Office of the Deputy Attorney General, the task force will continue to leverage all of the Department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
The case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Anden Chow and Vladislav Vainberg are in charge of the case.
The charges in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the Indictments, and the description of the Indictments set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Two Former eBay Employees Sentenced for Aggressive Cyberstalking CampaignRead the Press Release
BOSTON – Two former employees of eBay, Inc. were sentenced today for their roles in a cyberstalking campaign targeting the editor and publisher of a newsletter that eBay executives viewed as critical of the company.
Stephanie Popp, 34, of Louisville, Ky., eBay’s former Senior Manager of Global Intelligence, was sentenced to one year and one day in prison and two years of probation. Stephanie Stockwell, 28, of Redwood City, Calif., the former manager of eBay’s Global Intelligence Center, was sentenced to two years of probation, with one year to be served in home confinement. Both sentences were imposed by Senior U.S. District Court Judge William G. Young
On Sept. 29, 2022, co-conspirator James Baugh was sentenced to 57 months in prison, two years of supervised release and was ordered to pay a fine of $40,000. Also on Sept. 29, 2022, co-conspirator David Harville was sentenced to two years in prison, two years of supervised release and was ordered to pay a fine of $20,000. Co-conspirators and former eBay employees Philip Cooke, Brian Gilbert and Veronica Zea previously pleaded guilty for their roles in the conspiracy to cyberstalk the victims. Cooke was sentenced in July 2021 to 18 months in prison. Gilbert and Zea are awaiting sentencing.
Between approximately Aug. 5, 2019 and Sept. 6, 2019, Stockwell, Popp and their co-conspirators at eBay agreed to engage in a harassment campaign targeting a husband and wife in Natick, Mass. for their roles in publishing a newsletter that reported on issues of interest to eBay sellers. Senior executives at eBay were frustrated with the newsletter’s tone and content as well as the substance of comments posted beneath the newsletter’s articles. The harassment campaign arose from communications between those senior executives and Baugh, who was eBay’s senior security employee.
In August 2019, the defendants and their co-conspirators executed a three-part harassment campaign intended to intimidate the victims and to influence their reporting about eBay. The campaign included sending anonymous and disturbing deliveries to the victims’ home; sending private Twitter messages and public tweets criticizing the newsletter’s content; threats to visit the victims in Natick; and traveling to Natick to surveil the victims and installing a GPS tracking device on their car.
Stockwell, at Baugh’s direction, purchased a laptop for use in harassing the victims, and used an anonymous email account to order online live spiders and a prepaid debit card to purchase a late-night pizza delivery to the victims’ home. Other deliveries ordered to the victims’ home included a book on surviving the death of a spouse, a bloody pig mask, a fetal pig and a funeral wreath. Stockwell also prepared an eBay “Person of Interest” report for the Bay Area—a fictitious list of potential suspects to provide to the Natick Police Department to deflect the police from suspecting that eBay employees were actually harassing the victims.
As part of the second phase of the campaign, Popp sent private Twitter messages and public tweets, drafted or approved by Baugh, Gilbert, or Cooke, criticizing the newsletter’s content. The threatening Twitter messages were written as if they had been sent by eBay sellers who were unhappy with the victims’ coverage in the newsletter. Some of these messages posted the victims’ home address and threats to show up at their home. The harassment also featured Craigslist posts inviting members of the public to experience sexual encounters at the victims’ home.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division; and Natick Police Chief James G. Hicks made the announcement today. eBay provided valuable assistance and cooperation with the investigation. Assistant U.S. Attorney Seth B. Kosto, Deputy Chief of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.
Tulare County Man Pleads Guilty to Federal Gun and Drug ChargesRead the Press Release
FRESNO, Calif. — Jonathan Gallegos, 32, of Ivanhoe, pleaded guilty today to conspiring to distribute and possess with intent to distribute methamphetamine and marijuana and using a firearm during and in relation to a drug trafficking crime, U.S. Attorney Phillip A. Talbert announced.
According to court documents, the charges arose from a long-term investigation that uncovered evidence of a scheme involving the trade of illegal drugs sourced in Mexico and California for firearms sourced in Texas. In 2021, a team of local, state, and federal law enforcement officers partnered in an investigation into the Tulare County Surenos Street Gang. Part of the investigation focused on Gallegos and his associates, who were involved in shipping illegal drugs and firearms across state lines.
Between April 6, 2021, and Dec. 17, 2021, Gallegos and associates shipped kilograms of marijuana and methamphetamine from post offices in Central California to residences in San Antonio, Texas. Gallegos’s drug-buying customers shipped firearms back to Gallegos and his associates in California, as payment for the narcotics they had received. Gallegos is a felon who cannot lawfully possess firearms.
This case is the product of an investigation by the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the Tulare County Sheriff’s Office, the Tulare County Area Regencies Gun Enforcement Team, the Visalia Police Department, the California Department of Justice’s Bureau of Investigation, the California Highway Patrol’s Special Operations Unit, and the Tulare County District Attorney’s Office. Assistant U.S. Attorneys Justin J. Gilio and Antonio J. Pataca are prosecuting the case.
Gallegos is scheduled to be sentenced by U.S. District Judge Ana de Alba on Jan. 17, 2023. Gallegos faces a mandatory minimum sentence of 15 years up to life in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Tucson Man Sentenced to 17.5 Years for Possession of Methamphetamine and FirearmsRead the Press Release
TUCSON, Ariz. – Gabriel Joseph Bustamante, 43, of Tucson, Arizona, was sentenced on September 28, 2022, by United States District Judge Rosemary Márquez to 17.5 years in prison, followed by five years of supervised release. Bustamante previously pleaded guilty to Possession with Intent to Distribute Methamphetamine and Felon in Possession of Firearms.
On April 22, 2021, federal agents served a search warrant on Bustamante’s residential trailer and seized 3.6 kilograms of pure methamphetamine and multiple firearms. Agents also searched two storage units belonging to Bustamante where they recovered additional firearms.
This investigation was a collaborative effort between federal law enforcement agencies and is part of the Organized Crime Drug Enforcement Task Force (OCDETF) initiative in Southern Arizona that is led by the Tucson Strike Force. 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.
Homeland Security Investigations, the Drug Enforcement Administration, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation in this case. Assistant U.S. Attorneys Ashley Culver and David Petermann, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-21-1116-TUC-RM
RELEASE NUMBER: 2022-174_Bustamante# # #
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.
Tonawanda Man Pleads Guilty for His Role in Debt Collection SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Greg MacKinnon, 56, of the City of Tonawanda, NY, pleaded guilty to conspiring to defraud the United States before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of five years in prison, and a fine of $250,000.
Assistant U.S. Attorney Russell T. Ippolito, who is handling the case, stated that between June 2011, and April 27, 2017, MacKinnon operated Vantage Point Services, a debt collection business. MacKinnon and others involved in the conspiracy fraudulently and unlawfully collected on debt, earning income exceeding $10,000 every year from such criminal activity. MacKinnon, and his co-conspirators, diverted money from Vantage Point Services to other debt collection business entities controlled by the co-conspirators. The money was diverted, and made to appear as ordinary business expenses, to avoid reporting income exceeding $10,000 in any year from criminal activity and paying income taxes.
The plea is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge Thomas Fattorusso, and Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Matthew Scarpino.
Sentencing is scheduled for January 18, 2023, before Judge Arcara.
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Three Men Sentenced to Life in Federal Prison for Double Homicide—Murder for Hire ConspiracyRead the Press Release
Tampa, Florida – U.S. District Judge Charlene E. Honeywell today sentenced Kermon Williams, a/k/a “The General” (42, St. Petersburg), James Higgs, Jr., a/k/a “Hammer” (40, St. Petersburg), and Jhaphre Higgs, a/k/a “Pre” (35, St. Petersburg) each to life in federal prison followed by 20 years’ imprisonment for a double homicide, murder for hire conspiracy. Williams, Higgs, Jr., and Higgs were found guilty by a federal jury on June 24, 2022.
According to testimony and evidence presented at trial, Williams asked Jhaphre and James Higgs, Jr., to kill Tywan Armstrong, a rival drug dealer, who Williams saw as a threat to his drug business. Williams paid Jhaphre and James Higgs, Jr., with cash and drugs and gave them an AR-15 rifle to commit the murder. Jhaphre and James Higgs, Jr. made their first attempt on Armstrong’s life on September 22, 2018, shooting at him several times with an AR-15. Armstrong survived the first attempt on his life. Afterwards, Williams directed Jhaphre and James Higgs, Jr. to make the murder as public as possible to send a message on the street.
On January 21, 2019, Jhaphre and James Higgs, Jr., following William’s directive, opened fire on Armstrong’s car with an AR-15 and .40 caliber pistol in front of a large crowd of people gathered at a St. Petersburg gas station. The hail of bullets struck Armstrong 28 times, front passenger Roger Ford 11 times, and a rear passenger several times. Despite heroic efforts on the part of officers from the St. Petersburg Police Department and members of St. Petersburg Fire Rescue, both Armstrong and Ford died from their injuries.
All three defendants have previously been convicted of multiple felonies. Williams had previously been convicted of performing a lewd and lascivious act in the presence of a child under the age of 16. Jhaphre Higgs had previously been convicted of aggravated battery with possession of a firearm. And James Higgs, Jr., had previously been convicted of accessory after the fact to murder.
“This demonstrates how science – in this case, digital ballistics technology – can breathe life into violent gun crime cases,” said ATF Tampa Field Division Special Agent in Charge Craig W. Saier. “And despite the twist and turns over the course of the three-plus year investigation, we never gave up.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the St. Petersburg Police Department, the Pinellas County Sheriff’s Office, and the Florida Department of Law Enforcement. It was investigated and prosecuted by former Assistant United States Attorney Natalie Hirt Adams. The trial was conducted by Assistant United States Attorneys Craig R. Gestring and Charlie D. Connally.
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.
Three Individuals Charged for Distributing over 400,000 Fentanyl Pills and 25 Pounds of MethamphetamineRead the Press Release
PHOENIX, Ariz. – Keivin Crosswell-Cervantes, 28, of Mexico, Carlos Alberto Castro-Ruiz, 27, of Avondale, Arizona, and Alexander Ortega-Islas, 22, of Phoenix, Arizona, were indicted on October 4, 2022, on Conspiracy to Distribute Fentanyl and Methamphetamine along with Use or Carry a Firearm during a Drug Trafficking Offense. The three defendants had their initial appearance on September 23, 2022, before United States Magistrate Judge Eileen S. Willett.
On Sept. 21, 2022, HSI special agents arrested Crosswell-Cervantes, Castro-Ruiz, and Ortega-Islas and seized approximately 410,000 blue fentanyl pills, approximately 20,000 multi-colored fentanyl pills, also known as “skittles”, and approximately 25 pounds of methamphetamine in Avondale, Arizona. During the enforcement action, special agents also seized an AK-47 style pistol, a Kimber 1911 45 caliber pistol with two magazines, and an FN 45 caliber pistol.
A conviction for Conspiracy to Distribute Fentanyl and Methamphetamine carries a mandatory minimum sentence of 10 years in prison with a maximum penalty of life in prison, a fine of up to $10,000,000, or both.
A conviction for Use or Carry a Firearms during a Drug Trafficking Offense carries a mandatory minimum sentence of 5 years in prison, consecutive to any other sentence, with a maximum penalty of 20 years in prison, a fine of up to $250,000, or both.
An indictment 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.
Special Agents from Homeland Security Investigations, Nogales, conducted the investigation in this case. Assistant U.S. Attorney Matthew G. Eltringham, District of Arizona, Tucson, OCDETF Section, is handling the prosecution.
CASE NUMBER: MJ-22-9370-ESW
RELEASE NUMBER: 2022-171_Crosswell-Cervantes et al.# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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Three Defendants Sentenced to Prison for Fentanyl Pill TraffickingRead the Press Release
SACRAMENTO, Calif. — Three defendants were sentenced today for trafficking fentanyl pills and other drugs, U.S. Attorney Phillip A. Talbert announced.
The three defendants were sentenced for their involvement with a Sacramento-based drug trafficking organization (DTO). According to court documents, the DTO was led by Jose Lopez-Zamora, and from at least May 2019 until January 2021, it was responsible for importing tens of thousands of fentanyl-laced counterfeit oxycodone “M-30” pills from Mexico and distributing them in northern California and elsewhere. In addition, they distributed cocaine and methamphetamine.
Rudi Jean Carlos Flores, 29, of Manteca, was sentenced to 10 years and one month in prison for conspiracy to distribute and to possess with intent to distribute fentanyl, cocaine, and methamphetamine. According to court documents, Flores was a Manteca-based distributor for the Lopez-Zamora DTO. During a federal wiretap in October through December 2020, agents intercepted calls in which Flores ordered 1,000 or more M-30 pills from Lopez-Zamora on multiple occasions. In one wiretapped call, Lopez-Zamora admonished Flores to make sure his customers did not text him, because if one of Flores’s customers were to die from the pills, the texts would hurt Flores. Flores laughed and said he understood. In another wiretapped call, Flores promised to look into and confront some “gangsters” whom Lopez-Zamora suspected of stealing a load of 11,000 M-30 fentanyl pills from him. Agents searched Flores’s residence on Jan. 13, 2021, and found about 400 M-30 fentanyl pills, $33,470 in cash, and two loaded handguns. Text messages on Flores’s seized phone revealed that he informed an associate that there would be retaliation if someone “snitched” on them.
Jason Lamar Lee, 49, of Sparks, Nevada, was sentenced to eight years and seven months in prison for conspiracy to distribute and to possess with intent to distribute fentanyl, cocaine, and methamphetamine. According to court documents, Lee was a Reno-based distributor for the Lopez-Zamora DTO who obtained one to two thousand fentanyl M-30 pills and pound quantities of methamphetamine from Lopez-Zamora. In multiple wiretapped phone calls, Lee and Lopez-Zamora discussed how they needed to identify a suspected informant so they could retaliate by murdering him. Agents searched Lee’s residence on Jan. 13, 2021, and found over 1,000 fentanyl M-30 pills, almost a pound of methamphetamine, and two handguns.
Mateo Elias Guerrero-Gonzales, 24, of Sacramento, was sentenced today to two years and three months in prison for distribution of fentanyl. According to court documents, on Feb. 6, 2020, Guerrero-Gonzales sold 100 fentanyl M-30 pills to a confidential source. When co-defendant Christopher Williams began to snort one of the pills that he received as payment for brokering the deal, Guerrero-Gonzales warned him to snort only half the pill because they contained fentanyl. On Jan. 13, 2021, agents searched Guerrero-Gonzales’s residence and found psilocybin mushrooms, marijuana, $7,675 in cash, seven firearms, and numerous firearm magazines and boxes of ammunition. One of the firearms was a short-barrel rifle and one was a fully automatic Glock handgun.
This case is the product of an investigation by the Drug Enforcement Administration, Homeland Security Investigations, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, the U.S. Postal Inspection Service, the Yuba-Sutter Narcotic and Gang Enforcement Task Force (NET-5), the California Highway Patrol, the Butte Interagency Narcotics Task Force (BINTF), the Tri-County Drug Enforcement Team (TRIDENT), the Sacramento County Sheriff’s Department, the Sacramento Police Department, the Roseville Police Department, the Manteca Police Department, the Yuba City Police Department, and the West Sacramento Police Department. Assistant U.S. Attorney David W. Spencer is prosecuting the case.
Three other defendants have pleaded guilty: Christopher Kegan Williams pleaded guilty, and on Dec. 14, 2021, was sentenced to two and a half years in prison. Alejandro Tello pleaded guilty and is scheduled to be sentenced on Jan. 17, 2023. Baudelio Vizcarra Jr., pleaded guilty, and is scheduled to be sentenced on Nov. 3, 2022.
Charges are pending against the following defendants: Jose Guadalupe Lopez-Zamora, Leonardo Flores Beltran, Christian Anthony Romero, Joaquin Alberto Sotelo Valdez, Erika Gabriela Zamora Rojo, Jose Luis Aguilar Saucedo, Rosario Zamora Rojo, and Sandro Escobedo. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Syracuse Man Sentenced to 70 Months for Possession with Intent to Distribute Kilograms of CocaineRead the Press Release
SYRACUSE, NEW YORK – Alex Carrasquillo-Rosado, age 31, of Syracuse, was sentenced today to 70 months’ imprisonment to be followed by five years of supervised release for possessing with intent to distribute six kilograms of cocaine seized from his car and house in November of 2021.
The announcement was made by United States Attorney Carla B. Freedman, Ketty Larco-Ward, Inspector in Charge, United States Postal Inspection Service (USPIS), Boston Division, Matthew Scarpino, Acting Special Agent in Charge, Homeland Security Investigations (HSI), Buffalo Field Office, Thomas Fattorusso, Executive Special Agent in Charge, Internal Revenue Service – Criminal Investigation Division (IRS-CI), New York Field Office, and Joseph Cecile, Chief of Police, Syracuse Police Department.
This case is being investigated by the United States Postal Inspection Service (USPIS), Homeland Security Investigations (HSI), Internal Revenue Service – Criminal Investigation Division (IRS-CI), and the Syracuse Police Department. Investigative assistance was provided by the Drug Enforcement Administration (DEA), United States Border Patrol, and the Onondaga County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Michael D. Gadarian.
Sulphur Springs Shooter Indicted for Possessing A FirearmRead the Press Release
Tampa, FL – United States Attorney Roger B. Handberg announces the return of an indictment charging Thaddeus Timeaus Howard (29, Tampa) with unlawful possession of a firearm. If convicted, Howard faces a maximum penalty of 10 years in federal prison.
According to statements made in open court, on July 9, 2022, near the intersection of North Nebraska Avenue and East Fairbanks Street in the Sulphur Springs neighborhood of Tampa, Howard fired approximately seven shots at his ex-girlfriend. Surveillance video played during Howard’s arraignment showed an individual, whom prosecutors allege is Howard, fire multiple shots from a pistol. After firing the weapon, Howard entered his vehicle and chased his target who had fled in a car driven by her cousin. That chase ended when Howard caused a multi-vehicle accident near the intersection of North Nebraska Avenue and East Broad Street after swerving in and out of oncoming traffic. Howard fled the scene of that crash on foot and was apprehended by officers from the Tampa Police Department. Officers searched Howard after taking him in to custody and located a pistol in the pocket of his jeans.
At the time of the incident, Howard had prior felony convictions for armed robbery and aggravated assault with a deadly weapon. Federal law prohibits felons from possessing firearms or ammunition.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Tampa Police Department and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney David P. Sullivan. The forfeiture will be handled by Assistant United States Attorney James A. Muench.
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.