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Thursday 11 August 2022
U.S. Attorney Announces $3.64 Million Settlement of Civil Fraud Lawsuit Against Menswear Company and Its Manager for Underpaying Customs Duties Owed on Apparel Imported into the United StatesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, AnnMarie Highsmith, Executive Assistant Commissioner for U.S. Customs and Border Protection’s (“CBP”) Office of Trade, and Francis Russo, Director, CBP Field Operations New York, announced today that the United States has filed and settled a civil lawsuit against Luchiano Visconti Loutie LLC d/b/a Luchiano Visconti (“LUCHIANO VISCONTI”), a New York-based company that imports and sells men’s apparel to retailers, as well as its manager, SASHA HOURIZADEH (“HOURIZADEH”). The settlement resolves claims that LUCHIANO VISCONTI and HOURIZADEH (collectively, “Defendants”) defrauded the United States by falsely underreporting to CBP the value of apparel imported from overseas in order to avoid paying customs duties owed on the goods.
U.S. Attorney Damian Williams said: “Luchiano Visconti and Hourizadeh engaged in a fraudulent scheme to cheat the Government of customs duties owed by falsely reporting the value of the apparel brought into this country. This Office is committed to combatting customs fraud and will continue to hold companies, as well as their executives, accountable when they mispresent the value of imported goods to evade paying legally required duties.”
Executive Assistant Commissioner AnnMarie Highsmith said: “Trade enforcement is a priority for CBP, and this settlement serves as a great example of collaborative efforts to enforce trade laws. The dedication of the men and women of the CBP Office of Trade, the Office of Chief Counsel, and the United States Attorney’s Office to protect a fair and competitive trade environment is vital to facilitating lawful trade.”
Under the settlement agreement approved by U.S. District Judge P. Kevin Castel, Defendants will pay $3,641,157 to the United States. As part of the settlement agreement, Defendants also made admissions regarding their conduct. LUCHIANO VISCONTI and HOURIZADEH admitted that LUCHIANO VISCONTI significantly underreported the actual value of imported menswear on entry documents filed with CBP and routinely underpaid customs duties on the menswear. Specifically, Defendants admitted that they regularly provided their customs brokers with information and documentation, including commercial invoices, that significantly understated the true value of the imported menswear and the price actually paid for the apparel. LUCHIANO VISCONTI and HOURIZADEH also admitted that, in some instances, they made changes to invoices provided by a foreign manufacturer before providing them to a customs broker. In other instances, as acknowledged by Defendants, foreign manufacturers transmitted invoices that LUCHIANO VISCONTI and HOURIZADEH knew or had reason to know did not reflect the actual value and price paid for the menswear.
As alleged in the Complaint filed in Manhattan federal court:
From December 2013 through August 2019, LUCHIANO VISCONTI and HOURIZADEH defrauded the United States by materially underreporting to CBP the value of imported apparel. Defendants knowingly submitted, or caused the submission of, customs entry forms and associated invoices to CBP that contained false valuations of the apparel.
In some cases, HOURIZADEH altered commercial invoices issued by a foreign manufacturer so that the invoices reflected lower and false prices. In other instances, a foreign manufacturer transmitted two categories of invoices to LUCHIANO VISCONTI and HOURIZADEH that, together, reflected the actual price paid for the apparel. The first category of invoices identified specific quantities and prices for the imported apparel. These invoices, in sum, reflected a substantially lower price than what LUCHIANO VISCONTI actually paid for the imported goods. The second category of invoices were for services relating to the production of the Menswear, such as “pre-production” services, “patent” services, and “designer” services. In reality, and as reflected in LUCHIANO VISCONTI’s own banking records, these invoices generally reflected an additional amount paid by LUCHIANO VISCONTI for the same shipment of apparel. Defendants, however, routinely failed to provide their customs broker with this second category of invoices, which constituted a substantial portion of LUCHIANO VISCONTI’s payments for the apparel.
In the settlement agreement, LUCHIANO VISCONTI and HOURIZADEH admitted, acknowledged, and accepted responsibility for the following conduct:
- From December 2013 through August 2019, LUCHIANO VISCONTI imported menswear from manufacturers based outside the United States, including Turkey and China (the “Foreign Manufacturers”).
- HOURIZADEH is the LUCHIANO VISCONTI manager who is responsible for managing the importation of the menswear and all customs entry issues, including the provision of relevant and necessary information and documentation to LUCHIANO VISCONTI’s customs brokers who prepared and submitted the entry summaries to CBP.
- LUCHIANO VISCONTI’s customs brokers used commercial invoices and other information provided by LUCHIANO VISCONTI and HOURIZADEH to determine the value of the menswear to declare to CBP and to calculate the amount of the customs duties owed. LUCHIANO VISCONTI and HOURIZADEH knew that the customs brokers would rely on the information and invoices when preparing the entry summaries submitted to CBP.
- LUCHIANO VISCONTI and HOURIZADEH regularly provided LUCHIANO VISCONTI’s customs brokers with information and documentation, including commercial invoices, that significantly understated the true value of the imported menswear and the price actually paid by LUCHIANO VISCONTI to the Foreign Manufacturers for the menswear.
- LUCHIANO VISCONTI did not pay over $1.8 million in customs duties that it was obligated to pay on the menswear.
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In connection with the filing of the lawsuit and settlement, the Government joined a whistleblower lawsuit that had previously been filed under seal pursuant to the False Claims Act.
Mr. Williams thanked U.S. Department of Homeland Security, Homeland Security Investigations, and CBP for their investigative efforts and ongoing support and assistance with the case.
This case is being handled by the Office’s Civil Frauds Unit. Assistant United States Attorney Charles S. Jacob is in charge of the case.
Two Methamphetamine Traffickers Are Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell sentenced Da Lee, 38, of Lawrenceville, Georgia, and Paul Mark James, 52, of Gastonia, North Carolina, to 168 months and 54 months in prison, respectively, for trafficking methamphetamine and marijuana, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
According to documents filed in this case and evidence introduced at Lee’s trial, from 2018 to 2020, Lee and James conspired to distribute methamphetamine in and around Catawba County. Court records show that while law enforcement investigators were investigating James’s drug distribution activities in Hickory, North Carolina, they determined that James frequently traveled out of state to purchase methamphetamine from his supplier in Georgia, later identified as Lee. On July 12, 2020, law enforcement conducted a traffic stop of James’s vehicle upon his return from a trip to Georgia. During the traffic stop, law enforcement found methamphetamine and marijuana in James’s vehicle, which Lee had provided to James. Court records show that the next day, law enforcement executed a search warrant at Lee’s Georgia residence, from which they seized a firearm, four pounds of marijuana, and more than $7,900 in cash. According to court records, over the course of the conspiracy, Lee supplied James with more than two pounds of methamphetamine.
On Feburary 23, 2022, a federal jury convicted Lee of conspiracy to distribute and to possess with intent to distribute methamphetamine and marijuana, and distribution of methamphetamine. Also in February 2022, James pleaded guilty to the same charges.
In making today’s announcement, U.S. Attorney King commended the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Catawba County Sheriff’s Office for their investigation of the case.
Assistant United States Attorneys Chris Hess and Taylor Stout prosecuted the case.
Two Men Federally Charged in Shooting at an FBI Agent in ColumbusRead the Press Release
COLUMBUS, Ga. –Two Columbus residents are facing federal charges alleging their involvement in the firing of multiple rounds at an FBI Agent in Columbus on July 28; one was remanded to federal custody following an initial appearance today, the other is in state custody. All of the defendants are presumed innocent until and unless proven guilty in a court of law beyond a reasonable doubt.
A federal indictment was returned on August 9 charging Jarvis Smith, 27, and Joshuia Brown, 24, with one count of forcible assault on a federal officer with a deadly weapon and one count of discharging a firearm during and in relation to a crime of violence. In addition, Smith is facing one count of possession of a firearm by a convicted felon. If convicted, Smith and Brown face a maximum of life in prison.
Brown had his initial appearance today before U.S. Magistrate Judge Charles Weigle; the government’s motion for detention for Brown was granted by the Court. Smith is currently being held on state charges and is anticipated to be brought into federal custody in the near future.
This case is being investigated by FBI, with assistance from multiple agencies including DEA, Columbus Police Department, Muscogee County Sheriff’s Office, Harris County Sheriff’s Office, Phenix City Police Department and Russell County, Alabama, Sheriff’s Office.
Assistant U.S. Attorneys Christopher Williams and Amy Helmick are prosecuting the case, with support from Assistant U.S. Attorney Leah McEwen.
Two Men Convicted of Laundering Proceeds of a Business Email Compromise SchemeRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted two individuals yesterday on charges of money laundering as part of a business email compromise (BEC) scheme.
According to court records and evidence presented at trial, Onyewuchi Victor Ibeh, 33, of Mitchellville, Maryland, and Jason Eugene Joyner, 42, of Hyattsville, Maryland, participated in a scheme to launder the proceeds of a BEC scheme. In this scheme, conspirators infiltrate the computer systems of a victim company, including their email servers and email accounts, through phishing attacks or the use of malware. Once there, the conspirators impersonate the victim’s business partner and claim the business partner’s bank account information has changed. Intending to send the money to the business partner, the victim business instead sends the money to bank accounts controlled by the conspirators.
The defendants and their coconspirators laundered over $13 million fraudulently obtained from numerous victim businesses—including five who testified at trial—as a result of a scheme. The co-conspirators laundered the proceeds of the scheme through various financial transactions using dozens of bank accounts that they directly and indirectly controlled. Joyner’s role in the scheme was to withdraw the proceeds of the fraud in cash, which he delivered to other conspirators, including Ibeh. Ibeh’s role in the scheme was to manage the money laundering by causing conspirators to open bank accounts, which he used to wire money domestically and internationally. Ibeh spent the proceeds of the fraud on luxury items, including a custom jewelry piece costing close to $40,000.
Ibeh and Joyner conspired with, among others, Anthony Ayeah and Mouaaz Elkhebri, both of whom have also been convicted of conspiracy to commit money laundering.
Ibeh and Joyner were convicted of conspiracy to commit money laundering and money laundering. Ibeh and Joyner each face a maximum penalty of 20 years in prison when sentenced on November 4, 2022. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Michael Ray, Inspector in Charge of Cybercrime and National Security of the U.S. Postal Inspection Service; and Matthew Stohler, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the verdict.
Assistant U.S. Attorney Christopher Hood, Assistant U.S. Attorney Russell Carlberg, and Special Assistant U.S. Attorney Elizabeth Bagwell are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-200.
Two Members of a Drug Trafficking Organization Sentenced to Federal Prison and Ordered to Forfeit $2 MillionRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III today sentenced Rogelio Zamora, age 24, to two years in federal prison, followed by three years of supervised release, for conspiracy to distribute and possess with the intent to distribute cocaine. On August 8, 2022, Judge Russell sentenced co-defendant Hugo Maldonado Ortiz, age 53, to five years in federal prison, followed by three years of supervised release on the same charge. Judge Russell further ordered that Zamora and Ortiz must forfeit $2 million seized during the course of the investigation, as proceeds of drug trafficking.
The sentences were announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration, Washington Division; Colonel Kevin M. Anderson, Chief of the Maryland Transportation Authority Police; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; Chief Malik Aziz of the Prince George’s County Police Department; Chief Marcus Jones of the Montgomery County Police Department; Chief Robert J. Contee III of the Metropolitan Police Department; Colonel Melissa Zebley, Superintendent of the Delaware State Police; and Colonel Robert Evanchick, Commissioner of the Pennsylvania State Police.
According to their guilty pleas, between April 2020 and October 26, 2020, Zamora and Ortiz were part of a conspiracy to distribute drugs, specifically to possess with intent to distribute those drugs in Baltimore and elsewhere. As their part of the conspiracy, Zamora and Ortiz obtained cash, packaged it, and delivered the currency to couriers for transportation. Zamora and Ortiz admitted that they knew, or should have known, that the cash they transferred to and from members of the conspiracy was the proceeds from the sale of illegal drugs in Baltimore and elsewhere. The defendants and their co-conspirators traveled to locations in Michigan, Pennsylvania, Maryland, and elsewhere to receive large amounts of bulk currency, believed to be narcotics proceeds, and then transported or arranged the transport of the bulk cash to California on behalf of their drug trafficking organization.
During the investigation a total of more than $2 million was seized by or delivered to law enforcement. Investigators know that this amount of drug proceeds represents revenue from the sale of approximately seventy-five kilograms of cocaine. Accordingly, Zamora agreed that it was foreseeable to him that the conspirators would distribute between five and 15 kilograms of cocaine. Ortiz agreed that it was foreseeable to him that the conspirators would distribute at least five kilograms of cocaine.
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 make our neighborhoods safer for everyone. PSN, an evidence-based program proven to be effective at reducing violent crime, is the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Erek L. Barron commended the DEA, the Maryland Transportation Authority Police, the Maryland State Police, the Prince George’s County Police Department, the Montgomery County Police Department, the Metropolitan Police Department, the Delaware State Police and the Pennsylvania State Police for their work in the investigation and thanked the DEA in New York, New Jersey and Detroit for their assistance. Mr. Barron thanked Assistant U.S. Attorney Joan C. Mathias, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Two Defendants Charged with Firearms and Narcotics TraffickingRead the Press Release
Damian Williams, United States Attorney for the Southern District of New York, Frank A. Tarentino III, the Special Agent-in-Charge of the New York Field Office of the Drug Enforcement Administration (“DEA”), and Keechant Sewell, the Commissioner of the New York City Police Department (“NYPD”), announced today that CESAR VASQUEZ, a/k/a “Aguila,” a/k/a “Primo,” and MICKY COLON, were arrested and charged in a nine-count Complaint with trafficking more than 50 firearms, along with methamphetamine and fentanyl, from Ohio to New York. VASQUEZ and COLON will be presented before United States Magistrate Judge Robert W. Lehrburger in Manhattan federal court later today.
U.S. Attorney Damian Williams said: “Illegal firearms, and especially military-style assault weapons, like many of those allegedly trafficked by these defendants, pose a dire threat to all New Yorkers. These weapons of war are designed to kill, and absent intervention from the dedicated federal, state, and local law enforcement agents who investigated this case, these guns could have been loose on the streets of New York City. That many of these guns were sold alongside narcotics only underscores the connection between drug trafficking and gun violence. We will continue to work with our dedicated partners at the DEA and NYPD to aggressively dismantle those networks that enable gun violence and endanger the lives of New Yorkers.”
DEA Special Agent-in-Charge Frank Tarentino said: “Fifty guns headed to criminal networks in New York were intercepted, preventing the potential for at least 50 instances of gun-related violence. These arrests and seizures clearly demonstrate DEA’s resolve to safeguarding our communities from the threats of drugs and guns. I would like to commend the tireless work and countless hours of collaboration by the New York Strike Force and U.S. Attorney’s Office Southern District of New York.”
NYPD Commissioner Keechant Sewell said: “The NYPD’s fight against the flow of illegal guns and narcotics into our city is at the forefront of our public-safety mission. The defendants in this case showed a callous disregard for human life, and we will never waver in our commitment to protect the people we serve – no matter where the threats to them originate. I want to thank the U.S. Attorney’s Office for the Southern District of New York, the DEA’s New York Division, and every local, state, and federal agency working with the Organized Crime Drug Enforcement Task Force for their efforts in this important investigation.”
As alleged in the Complaint filed today in Manhattan federal court[1]:
From at least June 2022 until their arrests today, VASQUEZ and COLON were part of a gun and narcotics trafficking operation that moved dozens of guns, alongside methamphetamine and fentanyl, from the Columbus, Ohio area to the Bronx. On five separate occasions, VASQUEZ, COLON, and their co-conspirators sold, or attempted to sell, firearms to undercover law enforcement agents. During three of those gun incidents, VASQUEZ, COLON, and their co-conspirators also sold, or attempted to sell, the undercover agents narcotics.
In total, VASQUEZ, COLON, and their co-conspirators sold law enforcement agents approximately 51 firearms, approximately 196 grams of methamphetamine, and a “sample” of fentanyl as a precursor to later fentanyl transactions. Included in the firearms that VASQUEZ, COLON, and their co-conspirators sold were more than a dozen assault rifles; other military-style weapons, including a semiautomatic shotgun and assault-type weapons that fire pistol rounds; and numerous handguns.
VASQUEZ and COLON were arrested early this morning in the Bronx, when they arrived from Ohio, bringing 23 guns and fentanyl into the city. Photos of some the firearms that VASQUEZ, COLON, and his co-conspirators sold are below.
Firearms Sold on June 4, 2022
Firearms Sold on June 17, 2022
Firearms Sold on June 23, 2022
Firearms Sold on July 6, 2022
Firearms Brought to the Bronx on August 11, 2022
VASQUEZ, 19, of Columbus, Ohio, has been charged in Count One with conspiring to traffic firearms, which carries a maximum sentence of 15 years in prison; in Count Two with trafficking firearms, which carries a maximum sentence of 15 years in prison; in Count Three with attempting to traffic firearms, which carries a maximum sentence of 15 years in prison; in Count Four with transferring a firearm for use in a drug trafficking crime, which carries a maximum sentence of 15 years in prison; in Count Five with attempting to transfer a firearm for use in a drug trafficking crime, which carries a maximum sentence of 15 years in prison; in Count Six with illegally dealing firearms, which carries a maximum sentence of five years in prison; in Count Seven with illegally transporting and distributing firearms, which carries a maximum sentence of five years in prison; in Count Eight with conspiring to traffic in methamphetamine and fentanyl, which carries a maximum sentence of 40 years in prison and a statutory minimum sentence of five years in prison; and in Count Nine with using and carrying firearms while engaging in the narcotics trafficking conspiracy, which carries a maximum sentence of life in prison and a statutory minimum sentence of five years in prison.
COLON, 21, of Columbus, Ohio, is charged in Count One, Count Three, and Counts Five through Nine of the Complaint. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of these defendants would be determined by a judge.
Mr. Williams praised the outstanding investigative work of the Organized Crime Drug Enforcement Task Force (“OCDETF”) New York Strike Force. The OCDETF New York Strike Force is a crime-fighting unit comprising federal, state, and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force and the New York/New Jersey High Intensity Drug Trafficking Area. The Strike Force is affiliated with the DEA’s New York Division and includes agents and officers of the DEA, New York City Police Department, New York State Police, Homeland Security Investigations, U.S. Internal Revenue Service Criminal Investigation Division, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Customs and Border Protection, U.S. Secret Service, U.S. Marshals Service, New York National Guard, Clarkstown Police Department, U.S. Coast Guard, Port Washington Police Department, and New York State Department of Corrections and Community Supervision.
Mr. Williams also thanked the United States Attorney’s Office for the Western District of Pennsylvania for its assistance in the case.
This case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Andrew Jones and Christy Slavik are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Tulsa Man Sentenced to 5 Years in Prison for Possessing Firearms in Furtherance of a Drug Trafficking CrimeRead the Press Release
A Tulsa man who possessed a revolver and shotgun to protect himself and the illicit drugs he was distributing was sentenced in federal court, announced U.S. Attorney Clint Johnson.
U.S. District Judge Claire V. Eagan sentenced LeMorris Walton Jr., 33, to five years in federal prison followed by five years of supervised release. He pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime on Oct. 14, 2021.
“My office will hold accountable individuals like LeMorris Walton Jr. for their continued criminal behavior. Felons carrying guns and dealing drugs contribute to the violence and economic decay experienced in too many neighborhoods across Northeast Oklahoma,” said U.S. Attorney Clint Johnson. “Federal authorities and our partners at the Tulsa Police Department are committed to reducing violent crime and building strong, safe communities.”
On Nov. 9, 2020, Walton possessed firearms at his residence in Tulsa for the purpose of protecting and furthering his marijuana, cocaine, and methamphetamine distribution operation. The defendant possessed a Herman Weihrauch .38 special revolver, a Maverick 12 gauge shotgun, and 33 rounds of ammunition. Walton is also a felon and is prohibited from possessing firearms and ammunition.
The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Thomas E. Buscemi prosecuted the case.
This case is being prosecuted as part of the 2150 Initiative. The initiative is a collaborative effort between the U.S. Attorney’s Office for the Northern District of Oklahoma, Tulsa Police Department, ATF, and all other local, state, tribal and federal law enforcement partners to combat violent crime by focusing efforts on prohibited persons in possession of firearms as well as straw purchasers.
Tri-Cities Man Sentenced to Ten Years in Federal Prison for Drug TraffickingRead the Press Release
Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Aurelio James Gonzalez, 30, of Kennewick Washington was sentenced in federal court in Spokane for two counts of Distribution of Methamphetamine. Chief United States District Judge Stanley A. Bastian sentenced Gonzales to a total of 120 months in federal prison and ordered Gonzales to serve a five-year term of supervised release. Gonzales plead guilty on October 27, 2021.
According to court documents, in September 2021, DEA Tri-Cities, in partnership with the METRO Drug Task Force, identified Gonzales as a pound-level methamphetamine trafficker operating in the Tri-Cities area and elsewhere. Through the use of a confidential source, DEA conducted several recorded meetings with Gonzales as well as two separate controlled buys, where Gonzales sold the confidential source at total of approximately two pounds of methamphetamine. On February 17, 2021, a federal search warrant was executed at his residence in Kennewick, WA, where Gonzales lived with his significant other and two small children. Gonzales had taken one of those small children with him when he sold the methamphetamine to the DEA confidential source. When DEA executed the search warrant, agents located and seized cocaine, a digital scale, $14,805 in U.S. currency, ledgers about how to engage in money laundering, and a total of three firearms. Most of these items were located near a “Santa Muerte” shrine, depicted below, which is commonly associated with drug trafficking.
United States Attorney Waldref commended the joint efforts of law enforcement for working together to keep the Eastern District safe: “This case involved both largescale methamphetamine distribution as well the possession of several firearms in furtherance of Mr. Gonzales’s drug-trafficking organization.” U.S. Attorney Waldref continued, “Today’s sentence removes Mr. Gonzales from our community for 10 years and reiterates the U.S. Attorney’s Office’s commitment to vigorously prosecute those who distribute poison in Eastern Washington.”
“This investigation illustrates the strong relationships we have with our federal, state and local partners as we work together to keep our communities safe, healthy and free from dangerous drugs,” said Jacob D. Galvan, Acting Special Agent in Charge, DEA Seattle Field Division.
This case was prosecuted under the Organized Crime Drug Enforcement Task Force (OCDETF) program. The OCDETF program provides supplemental federal funding to the federal and state agencies involved in the investigation of transnational drug trafficking and related offenses. The U.S. Attorney’s Office is partnering with federal, state, local, and tribal law enforcement to specifically identify the criminals responsible for these drug related offenses in the Eastern District of Washington and pursue criminal prosecution.
This case was investigated by the Drug Enforcement Administration Tri Cities Task Force in partnership with the Kennewick, Pasco and Richland Police Departments. This case was prosecuted by Stephanie Van Marter, an Assistant United States Attorney for the Eastern District of Washington.
Toppenish Woman Charged with Drug Trafficking and Firearm OffensesRead the Press Release
Yakima, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced that a federal grand jury has indicted Susen Ann Gorst, age 34, of Toppenish, Washington. The federal indictment charges Gorst with Possession with Intent to Distribute Fentanyl, Possession with Intent to Distribute Methamphetamine, and Possession of a Firearm in Furtherance of Drug Trafficking.
According to an August 1, 2021 criminal complaint, the investigation into Gorst stems from information that she was supplying fentanyl pills to multiple users in the Yakima area. Based on this information, the Yakama Nation Police Department and Drug Enforcement Administration (DEA) conducted surveillance at the El Corral Motel in Toppenish, Washington, where Gorst allegedly was selling fentanyl. On July 22, 2022, agents and officers from the DEA Yakima Resident Office, Homeland Security Investigations, the Yakama Nation Police Department, Yakima Police Department, and Toppenish Police Department executed a search warrant of Gorst’s motel room, where enforcement seized fentanyl pills, methamphetamine, and a Smith and Wesson semiautomatic firearm.
“When law enforcement and our communities come together, we are able to make tremendous strides toward addressing the opioid crisis,” stated U.S. Attorney Waldref. “Our office has been prosecuting fentanyl cases vigorously – on the Yakama Nation and throughout Eastern Washington – as part of our ongoing efforts to build safer and stronger communities. Fentanyl is particularly lethal, and we are proactively working to prevent the tragedy it causes on a daily basis.”
This case involves a joint investigation led by the Drug Enforcement Administration’s Yakima Resident Office, Yakama Nation Police Department, Homeland Security Investigations, Yakima Police Department, and the Toppenish Police Department. The case is being prosecuted by Frances Walker, Assistant United States Attorney for the Eastern District of Washington.
The details contained in the charging documents are merely allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Tobacco Wholesaler Sentenced for PACT ViolationRead the Press Release
BOSTON – A tobacco wholesaler from Connecticut was sentenced today in federal court in Springfield for violating the Prevent All Cigarette Trafficking (PACT) Act.
Syed I. Bokhari, 57, was sentenced by U.S. District Court Judge Mark G. Mastroianni to one year of probation. The government recommended a sentence of 18 months in prison. Bokhari pleaded guilty on April 19, 2022. In a related civil forfeiture action, Bokhari agreed to forfeit seized tobacco, currency, and other assets, which resulted in the recovery of $2,197,985 by the government.
Established in 2010, the PACT Act is designed to prevent the evasion of state tobacco taxes on cigarettes and smokeless tobacco. The PACT Act requires, among other things, businesses to file a statement with the state tobacco tax administrator prior to shipping cigarettes or smokeless tobacco into that state.
Bokhari owned and operated a wholesale supply business in Scranton, Pa., that sold smokeless tobacco to customers in Massachusetts. Between 2010 and June 5, 2012, Bokhari’s business shipped smokeless tobacco to customers in Massachusetts without ever filing the required statement with the Massachusetts tobacco tax administrator.
United States Attorney Rachael S. Rollins; Massachusetts Department of Revenue Commissioner Geoffrey E. Snyder; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation Division, Boston Office; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Matthew Millhollin, Special Agent in Charge for the Homeland Security Investigations in Boston made the announcement. Assistant U.S. Attorney Christopher L. Morgan of Rollins’ Springfield Branch Office prosecuted the case.
St. Simons man sentenced for bomb threat to IRS office in New YorkRead the Press Release
BRUNSWICK, GA: A Glynn County man was sentenced in federal court after admitting that he threatened to blow up an IRS office in New York.
Benjamin Stasko, 34, of St. Simons Island, was sentenced to time served and placed on three years of supervised release for his previous guilty plea on a charge of Interstate Transmission of a Threat to Injure, said David H. Estes, U.S. Attorney for the Southern District of Georgia. Since his arrest in July 2020, Stasko has been in federal custody for a total of 21 months – slightly longer than the period of custody recommended under federal sentencing guidelines.
“Benjamin Stasko’s sentence includes a requirement for substance abuse treatment, which tackles the rationale behind his ill-advised, dangerous threat,” said U.S. Attorney Estes. “Considering the massive law enforcement response generated by his actions, it’s fortunate that the episode ended safely.”
Stasko admitted that on July 6, 2020, he posted a comment on a federal agency’s website, alleging that a pipe bomb had been planted in the Ted Weiss Federal Building in New York, New York, as a threat directed toward the Internal Revenue Service. Federal Protective Service officers with bomb sniffing dogs and officers from the New York Police Department searched the facility and found no explosives. Investigators later located and arrested Stasko in St. Simons.
“The safety of Internal Revenue Service employees and property is one of the statutory roles of the Treasury Inspector General for Tax Administration,” said J. Russell George, the Treasury Inspector General for Tax Administration. “Attempts to interfere with IRS employees engaged in the performance of their official duties are aggressively pursued. We appreciate the efforts of the U.S. Attorney’s Office and our law enforcement partners in assisting to protect the integrity of federal tax administration.”
The case was investigated by the U.S. Department of Treasury, Treasury Inspector General for Tax Administration; the New York Police Department; and the Glynn County Police Department, and prosecuted for the United States by Assistant U.S. Attorneys E. Gregory Gilluly Jr. and Joshua S. Bearden.
St. Louis man indicted on cyberstalking chargesRead the Press Release
ST. LOUIS – A man from St. Louis was indicted by a federal grand jury Wednesday on charges accusing him of threatening or cyberstalking five people since October.
Robert Merkle, 53, was indicted on three cyberstalking charges and two counts of transmitting a threat. Each charge carries a penalty of up to five years in prison.
The indictment accuses Merkle of threatening or harassing four people in January and one person in October.
A motion seeking to have Merkle held in jail pending trial says beginning in the summer of 2021, Merkle began harassing women online and via text messages. He sent text messages to women in Missouri and elsewhere containing rape threats, the motion says.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the FBI and the Town and Country Police Department. Assistant U.S. Attorney Colleen Lang is prosecuting the case.
Springfield Company Pays $1 Million Related to Federal Embezzlement, Bribery InvestigationRead the Press Release
SPRINGFIELD, Mo. – A Springfield company will pay more than $1 million in forfeiture to the federal government under the terms of a non-prosecution agreement announced today, which acknowledges the criminal conduct of two former executives who are involved in a related criminal investigation.
“Company owners and executives abused their leadership positions in an unrelated charity to illegally enrich themselves and their for-profit company,” said U.S. Attorney Teresa Moore. “More than $1 million from the health care charity, primarily funded by Medicaid reimbursements, was siphoned to Pro1 through a series of illicit payments over several years. Pro1 has accepted responsibility for the criminal conduct of its former executives and cooperated with the federal investigation. Those embezzled funds will be recouped by the government under the terms of this non-prosecution agreement.”
“When federal funds are misappropriated, it harms the U.S. government and its taxpayers,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation’s St. Louis Field Office. “Pro1 executives abused their positions by causing federal funds meant for charitable purposes to become part of a scheme designed for their own financial gain. This non-prosecution agreement holds Pro1 accountable and restores the funds to the federal government.”
“This non-prosecution agreement holds Pro1 accountable for its actions in a scheme that directly benefited Pro1 and certain owners of the company in over $1 million in cost-savings and reduced expenses,” said FBI Kansas City Special Agent in Charge Charles Dayoub. “It reiterates that public funds provided to non-profit organizations and companies are not to be abused and the FBI, alongside other federal agencies, is committed to ensuring the public’s money is not used for inappropriate purposes or personal gain.”
“The diversion and theft of over $1 million of federal sourced funds, designated for employment training, behavioral healthcare and other public services by former executives of Preferred Family Healthcare and Pro1, was a gross abuse of the positions of trust they once held,” said Special Agent-in-Charge Steven Grell, Dallas Region, U.S. Department of Labor, Office of Inspector General. “They chose their own personal gain and benefit over the greater good of the public and the nonprofit organization whom they served. This agreement demonstrates Pro1’s willingness to take corrective actions regarding the fraudulent actions of its former executives.”
“Our investigation uncovered a scheme spanning several years to siphon money from a community-based health center to a for-profit company,” said Special Agent in Charge William J. Hannah of the Department of Justice Office of the Inspector General Chicago Field Office. “Today, we’re holding Pro1 accountable for this scheme and recovering over $1 million in ill-gotten gains. This non-prosecution agreement reiterates government funds are provided to these charitable organizations to benefit the public, and self-enriching schemes to steal from these government programs will not be tolerated.”
Pro1 IAQ, Inc., a Missouri corporation with operations in Springfield and Boulder, Colorado, designs and sells indoor thermostats nationwide. By signing the non-prosecution agreement, representatives of Pro1 admitted that former executive officers engaged in a conspiracy to embezzle funds from Preferred Family Healthcare, Inc., a Springfield-based nonprofit corporation, from 2008 to November 2017. Pro1 benefited from acts of alleged criminal misconduct by the executives, who were also executives of the charity and channeled funds from Preferred Family Healthcare to financially enrich the firm.
Under the terms of the non-prosecution agreement, Pro1 must forfeit $1,057,617 to the federal government, which is the amount Pro1 gained from the conspiracy.
Among the specific actions acknowledged in the non-prosecution agreement, executives and employees of Preferred Family Healthcare were utilized to complete tasks related to Pro1 operations, sometimes working full time for Pro1 while being paid by the charity. Additionally, the charity paid Pro1 for the lease of a warehouse for approximately three years, and provided office space in the charity’s main office building at no cost to Pro1 for more than a year.
While Pro1 did not provide appropriate oversight regarding the actions of its agents, which could be considered willful blindness, many of the actions taken by Pro1’s executives were done without specific knowledge of the president and the corporate board of directors. Pro1, as a part of this investigation, has discontinued the leadership roles of those executives and has cooperated fully with the federal criminal investigation.
Preferred Family Healthcare agreed earlier this year to pay more than $8 million in forfeiture and restitution to the federal government and the state of Arkansas under the terms of a non-prosecution agreement, which likewise acknowledges the criminal conduct of its former officers and employees.
Several former executives of Preferred Family Healthcare, former members of the Arkansas state legislature, and others have been convicted in federal court as part of the multi-jurisdiction, federal investigation. As part of the federal investigation, the former chief operating officer and chief financial officer of Preferred Family Healthcare were indicted by a federal grand jury on March 29, 2019. They pleaded not guilty, and are awaiting trial, which is scheduled to begin on Oct. 3, 2022.
The separate criminal cases are being prosecuted by Supervisory Assistant U.S. Attorney Randall Eggert and Assistant U.S. Attorney Shannon T. Kempf of the Western District of Missouri, Assistant U.S. Attorney Steven M. Mohlhenrich of the Western District of Arkansas, and Special Assistant U.S. Attorney Stephanie Mazzanti of the Eastern District of Arkansas.
IRS-Criminal Investigation, the FBI, and the Offices of the Inspectors General from the Departments of Justice, Labor, and the Federal Deposit Insurance Corporation (FDIC) investigated the cases. This is a combined investigation with the Western District of Missouri, the Western District of Arkansas, and the Eastern District of Arkansas.
Seffner Man Pleads Guilty to Conspiracy to Commit Wire Fraud and Conspiracy to Impede and Defraud the IRSRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Ricky Gonzales has pleaded guilty today to one count of conspiracy to commit wire fraud and one count of conspiracy to defraud the United States. Gonzales faces a maximum penalty of 20 years in federal prison on the conspiracy to commit wire fraud count, and up to, 5 years’ imprisonment on the conspiracy to defraud count.
According to the plea agreement, Gonzales owned and managed a construction company which he registered with the State of Florida. His company was named Ricky’s Construction Company and purported to supply construction services and a labor force to work for construction contractors.
As such, in order to comply with Florida law, Gonzales’s company was required to secure and maintain adequate worker’s compensation insurance coverage. The providers of worker’s compensation insurance base the premiums they charge and the amount of coverage they provide on the number of employees a company has, and the total annual payroll of those employees. Gonzales’s company had agreements with contractors and subcontractors to use workers purported to be his company’s employees at construction sites and these workers were often undocumented aliens who were actually working for and under the daily supervision and direction of the contractors. Gonzales or others regularly received “payroll checks” from these contractors that were then cashed at various financial institutions in order to pay the purported “employees” of Ricky’s Construction.
During the conspiracy, Gonzales falsely and fraudulently represented in insurance applications that his company had very limited payroll and a very limited number of employees who worked on construction jobsites. He also caused the transmission of false and fraudulent wire communications to numerous contractors representing that his company’s employees had full worker’s compensation coverage.
In reality, Gonzales’s company received and cashed more than $7 million in checks from various construction contractors for his purported “employees”. This payroll figure far exceeded the very limited payroll figures that Gonzales had reported to his worker’s compensation insurance company. As a result, these employees performed work on jobsites without adequate insurance coverage. In addition, the insurers lost premiums they would have charged had they been aware of the true number of workers their policies were being manipulated to cover.
As a result of these misrepresentations, Ricky’s Construction also disclaimed responsibility for ensuring that jobsite workers were legally authorized to work in the United States and that required state and federal payroll taxes were being paid for these workers. The contractors who actually paid these workers’ wages and used their services were thus also able to avoid responsibility for those duties. Over the course of this conspiracy, Gonzales’s misrepresentations caused a loss to the Internal Revenue Service of approximately $1,094,450 in unpaid payroll taxes.
This case is part of a series of prosecutions related to similar construction industry-related fraud in the Tampa Bay area. This case was investigated by the Homeland Security Investigations, the Internal Revenue Service - Criminal Investigation, and the State of Florida Department of Financial Services -Division of Investigative and Forensic Services. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Seattle man convicted of distributing fentanyl in downtown Seattle while armed with a firearmRead the Press Release
Seattle – A 31-year-old Seattle man was convicted today in U.S. District Court in Seattle of three federal crimes related to his distribution of fentanyl pills in downtown Seattle, announced U.S. Attorney Nick Brown. Kendall Alston was arrested on March 23, 2022, after Seattle Police Officers noted his hand-to-hand drug sales. The officers had been surveilling the area of 3rd Avenue between Pike and Pine Streets as part of “Operation New Day.” The emphasis patrol was aimed at increasing public safety in the Pike/Pine corridor where drug sales had led the area to become a hot spot for other crimes including assaults and shootings.
“Mr. Alston was armed with a loaded handgun while dealing potentially deadly fentanyl pills in downtown Seattle,” said U.S. Attorney Nick Brown. “We continue to work with our federal, state, and local partners to address the sense of lawlessness that has permeated our streets. Not every case is appropriate for federal prosecution, but where guns and drugs intersect, we are prepared to use our federal resources to hold offenders accountable.”
According to records filed in the case and testimony at trial, an officer in an observation point above the street witnessed a person in distinctive clothing engaging in what appeared to be a hand-to-hand drug sale. The officer returned to street level and saw the person later identified as Alston make another drug sale. Officers moved in and took Alston into custody. Alston carried 244 blue pills that were later tested and found to contain fentanyl. In his backpack, Alston carried a loaded Hi-Point .45 caliber semi-automatic handgun.
After a 3-day trial the jury deliberated about three hours before finding Alston guilty of knowingly distributing fentanyl, possession of fentanyl with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime. Following the guilty verdicts, Alston agreed to plead guilty to two additional counts of being a felon in possession of a firearm. The counts are related to his March arrest in downtown Seattle with the firearm, and a previous January 2022 arrest for shoplifting in Bellevue, where he was found to be carrying a different firearm.
Alston is prohibited from possessing firearms due to two felony convictions, a 2018 residential burglary conviction in Pierce County and a 2013 residential burglary conviction in King County.
Distribution of a controlled substance, possession of a controlled substance and unlawful possession of a firearm are punishable by up to ten years imprisonment. Possession of a firearm in furtherance of a drug trafficking crime is punishable by a consecutive five-year prison sentence on top of any sentence imposed on the other counts.
U.S. District Judge Lauren J. King scheduled sentencing for November 9, 2022.
The case was investigated by the Seattle Police Department with assistance from the Drug Enforcement Administration.
The case was prosecuted by Assistant United States Attorneys Cecelia Gregson and Casey Conzatti.
Savannah felon faces up to life in prison after admitting to day-long spree of armed robberiesRead the Press Release
SAVANNAH, GA: A Chatham County man faces a possible sentence of up to life in prison after admitting to a day-long spree of convenience store robberies.
Anthony Franzel Hamilton, 60, of Savannah, pled guilty to Conspiracy to Interfere with Commerce by Robbery, and Brandishing a Firearm in Furtherance of a Crime of Violence, said David H. Estes, U.S. Attorney for the Southern District of Georgia. The charges carry up to life in prison, along with substantial financial penalties and up to five years of supervised release after completion of the prison term. There is no parole in the federal system.
“For 18 hours in a single day, Anthony Hamilton terrorized store employees so he could steal money,” said U.S. Attorney Estes. “Our law enforcement partners did outstanding work in bringing his rampage to a halt, and he now will be held accountable for his violent crimes.”
As described in court documents and testimony, Hamilton was armed with a semiautomatic pistol when he robbed the Savannah Mart on East DeRenne Avenue shortly after midnight on Nov. 22, 2020. For the next 18 hours, Hamilton robbed four more Savannah convenience stores, and attempted to rob another, while brandishing the firearm and in least one instance threatening to shoot a store employee.
Savannah Police officers searching for the getaway vehicle described by witnesses soon located Hamilton and took him into custody without incident, finding the pistol under the seat of the car.
Sentencing before U.S. District Court Judge R. Stan Baker will be scheduled upon completion of an investigation by U.S. Probation Services.
“Thanks to the efforts of our law enforcement partners at the Savannah Police Department and the Department of Justice’s Project Safe Neighborhoods, Anthony Hamilton’s crime spree was brought to an end,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “His reckless disregard for the safety of the store employees and public easily could have turned into a tragedy. Fortunately, he is no longer a threat.”
This investigation took place under the umbrella of the U.S. Department of Justice’s Project Safe Neighborhoods. It was investigated by the FBI and the Savannah Police Department, and prosecuted for the United States by the U.S. Attorney’s Office for the Southern District of Georgia.
Robert Lenard Booth Sentenced to Ten Years for Defrauding Investors of over $2 Million in International Boiler Room SchemeRead the Press Release
Damian Williams, United States Attorney for the Southern District of New York, announced today that ROBERT LENARD BOOTH, a/k/a “Trevor Nicholas,” was sentenced to ten years in prison for defrauding investors of almost $2 million and laundering the proceeds as part of an international boiler room scheme. Back in April, a jury convicted BOOTH of conspiracies to commit securities fraud, wire fraud and money laundering. U.S. District Judge Jed S. Rakoff imposed the sentence in Manhattan federal court.
U.S. Attorney Damian Williams said: “For years, Robert Lenard Booth and his co-conspirators made fraud their business. They used elaborate paperwork and strategies for emotional manipulation to defraud individual investors, often repeatedly targeting the same victims and sometimes extracting from them their life savings. Today’s sentence holds him accountable and sends a message to those who engage in fraud that they will face consequences.”
According to previous filings in this case and the evidence presented at trial:
Previously a resident of Brooklyn, New York, BOOTH relocated overseas and spent years defrauding investors from Thailand and Panama. From at least June 2019 through August 2021, BOOTH ran, and conspired with others to run, a boiler room operation that sold investors nearly $2 million in securities that they never received. Targeting their victims repeatedly by phone, BOOTH and others pretended to be licensed brokers at real Manhattan brokerages, then used high-pressure tactics to pitch stocks at alleged discount prices. They followed up by sending the victims false documents to confirm the alleged stock purchases and trades.
Over time, the fraudsters established personal rapport with the victims and directed the victims to wire money—sometimes hundreds of thousands of dollars—to shell company accounts in New York, Hong Kong, and Singapore. To make the payments, a number of victims spent down their savings and took out loans and mortgages. To receive and launder the victims’ payments, BOOTH worked with other money launderers who established sham companies and then lied to banks to open U.S. bank accounts in the names of those companies.
In total, Booth’s boiler room defrauded at least 17 victims of $2,003,993.
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On April 27, 2022, BOOTH, 68, was convicted of conspiracies to commit securities fraud, wire fraud and money laundering after a six-day jury trial before Judge Rakoff. In addition to the prison sentence, BOOTH was sentenced to 3 years of supervised release. Orders have also been entered for $2,003,883 in restitution and $780,981.86 in forfeiture.
Mr. Williams praised the outstanding investigative work of the Special Agents of the United States Attorney’s Office, HSI, IRS-CI, and their partnership with the J5. The J5 works together to gather information, share intelligence and conduct coordinated operations against transnational financial crimes. The J5 includes the Australian Taxation Office, the Canadian Revenue Agency, the Dutch Fiscal Information and Investigation Service, Her Majesty's Revenue and Customs from the U.K. and IRS-CI from the U.S.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Andrew Jones, Jane Y. Chong, and Andrew Thomas are in charge of the prosecution.
Rhode Island Man Pleads Guilty to Role in Drug Trafficking and Violent Kidnapping ConspiracyRead the Press Release
BOSTON – A Pawtucket, R.I. man pleaded guilty yesterday in federal court in Boston to charges related to a violent kidnapping and witness retaliation and intimidation scheme.
Anthony Basilici, 39, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin, one count of possession and discharge of a firearm in furtherance of a drug trafficking crime, one count of conspiracy to commit kidnapping and one count of conspiracy to obstruct justice by retaliating against a witness, victim or informant. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Nov. 7, 2022. Basilici was charged along with 12 co-conspirators in a superseding indictment in March 2020.
“The defendant’s conduct is nothing short of horrifying. Mr. Basilici actively and willingly participated in a violent scheme to kidnap, beat and terrorize a victim who he wrongly believed was working with law enforcement. Additionally, he possessed a firearm for the purpose of facilitating the heroin trafficking conspiracy that he was involved in,” said United States Attorney Rachael S. Rollins. “This case is another example of how drug trafficking activities drive violence in our communities. Pursuing drug traffickers and violent criminals is a top priority of my administration. We will find and prosecute those who threaten the health and safety of our communities. They will be removed from the neighborhoods they terrorize and harm.”
“As we all know, drug trafficking in our communities, along with the gun and physical violence that often accompanies it, is a serious threat to our families and communities,” said Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division. “This is unacceptable and will not be allowed to happen. DEA and its local, state and federal partners are dedicated to bringing to justice those that commit these crimes.”
This case arose from a 2018 investigation into a wide-ranging heroin trafficking conspiracy in the Cape Cod area.
According to court documents, in 2019, law enforcement began investigating a Cape Cod drug trafficking organization (DTO), allegedly led by Edwin Otero. It is alleged that Otero and his co-conspirators distributed large quantities of heroin throughout Cape Cod, including Hyannis, Mashpee, Centerville and Osterville as well as Pawtucket, R.I. Interceptions from Otero’s phone identified Basilici as a key member of the DTO.
On May 8, 2019, Basilici and, allegedly, others were involved in a shooting at a co-conspirator’s residence related to a drug debt allegedly owed Otero. Basilici was intercepted as he discussed hiding in the woods after the shooting, and changing his phone number to avoid arrest. Intercepted communications showed Basilici and, allegedly, others speaking in code about finding and hiding guns used in the shooting.
Additionally, according to court documents, in April 2019, Basilici’s co-conspirators lured a victim from Massachusetts to Rhode Island, where they kidnapped and held him, stripped him naked, assaulted and threatened to rape him, and then took his clothing and cell telephone. The purpose of this kidnapping and assault was to retaliate against the victim because the co-conspirators erroneously believed the victim was cooperating with law enforcement, and the assailants repeatedly yelled at the victim for being a “rat.” Basilici, for his part, video recorded the assault—which lasted over 18 minutes. Basilici provided this video to Otero, who further intimidated or attempted to intimidate other witnesses after the kidnapping by sharing the video with numerous others.
The charge of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin provides for a sentence of up to 40 years in prison, a minimum of five years and up to life of supervised release and a fine of $5 million. The charge of possession and discharge of a firearm in furtherance of a drug trafficking crime provides for a mandatory minimum sentence of 10 years and up to life in prison, to be served consecutive to any other sentence imposed, up to five years of supervised release and a fine of up to $250,000. The charge of conspiracy to commit kidnapping provides for a sentence of up to life in prison, up to five years of supervised release and a fine of up to $250,000. The charge of conspiracy to obstruct justice by retaliating against a witness, victim, or informant provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rollins, DEA SAC Boyle, Barnstable Police Chief Matthew K. Sonnabend and Barnstable County Sheriff James M. Cummings, made the announcement today. Assistant U.S. Attorneys Christopher Pohl and Lauren Graber of Rollins’ Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Repeat Methamphetamine Trafficker Is Sentenced to 14 Years in Federal PrisonRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell sentenced Ronald Keith Scronce, 65, of Lincolnton, N.C., to 168 months in prison and five years of supervised release for trafficking methamphetamine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
According to filed documents and court proceedings, in July 2019, Scronce was on post release supervision for a state drug trafficking conviction. In accordance with the conditions of Scronce’s post release supervision, probation officers conducted a warrantless search of his residence, during which they seized methamphetamine. Between July and August 2021, law enforcement investigating the case determined that Scronce sold heroin and methamphetamine on multiple occasions. Scronce even wrote a Facebook post in which he referenced violence against “snitches” and traveling to the beach for the purpose of selling narcotics. On August 23, 2021, law enforcement arrested Scronce and executed a federal search warrant at his residence, seizing methamphetamine, cash, and two firearms.
On February 2, 2022, Scronce pleaded guilty to conspiracy to distribute and to possess with intent to distribute methamphetamine and three counts of possession with intent to distribute methamphetamine. At today’s sentencing hearing, Scronce’s sentence was enhanced due to his multiple prior convictions that led to his classification as a Career Offender, including prior convictions for Robbery with Dangerous Weapon, Sell/Deliver Morphine, Attempt Trafficking Methamphetamine, and Possession with Intent to Distribute Methamphetamine.
This case is the result of Organized Crime Drug Enforcement Task Force (OCDETF) investigation which has led to the federal prosecution of more than 60 individuals for drug trafficking. Law enforcement have also seized more than 27 kilograms of cocaine, 3.5 kilograms of heroin, 29 kilograms of fentanyl, 49 kilograms of methamphetamine, 70 firearms, more than $385,000 in cash, and over $800,000 in other property.
OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
In making today’s announcement, U.S. Attorney King commended the Drug Enforcement Administration, Homeland Security Investigations, the Lincoln County Sheriff’s Office, the Huntersville Police Department, and the Gastonia Police Department for their coordination and investigation of the case.
Assistant United States Attorney Steven Kaufman, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Repeat Immigration Offender and Illegal Alien Pleads Guilty to Illegal ReentryRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Jeronimo Quiahua-Garcia (21, Veracruz, Mexico) has pleaded guilty to illegally reentering the United States as a deported alien. Quiahua-Garcia faces a maximum penalty of two years in federal prison. A sentencing date has not yet been set.
According to court documents, Quiahua-Garcia was removed from the United States to Mexico on January 11, 2020, through Nogales, Arizona, and again on January 20, 2020, through Naco, Arizona. On May 24, 2022, law enforcement officers stopped a vehicle traveling southbound on I-75 in Hernando County, Florida. Quiahua-Garcia was a passenger in that vehicle, hidden among luggage in the back seat. Quiahua-Garcia did not know the driver of the vehicle. He said that he had paid the driver to transport him from Greely, Colorado to Plant City, Florida.
This case was investigated by United States Custom and Border Protection – United States Border Patrol, and the Florida Highway Patrol. It is being prosecuted by Assistant United States Attorney David W.A. Chee.
Registered Sex Offender Sentenced for Possession of Child Sexual Abuse MaterialRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that JACOB WIEBELT (“WIEBELT”), age 39, of Ponchatoula, Louisiana, was sentenced for Possession of Materials Involving the Sexual Exploitation of Children in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and (B)(2).
According to documents filed in federal court, the case against WIEBELT developed as a result of a lead to the Louisiana Bureau of Investigation (“LBI”) that a user uploaded child sexual abuse material (“CSAM”) to the Discord messenger service. Specifically, the lead reflected that the user uploaded sexually explicit videos of children who were prepubescent in age. On November 1, 2021, Homeland Security Investigations (“HSI”) special agents along with the LBI executed a federal search warrant at WIEBELT’s home in Ponchatoula. Agents advised WIEBELT of his Miranda rights and, after waiving his rights, he confessed to possessing, sharing, and uploading CSAM. WIEBELT admitted he created a Discord account and stated that other Discord users would share CSAM on the website and he would save the CSAM to his cellular telephone. WIEBELT would then upload the saved CSAM from his phone to other Discord users.
United States District Judge Jay C. Zainey sentenced WIEBELT to one hundred twenty-one (121) months imprisonment, followed by ten (10) years of supervised release, continued sex offender registration, and pay a $100.00 special assessment fee.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Louisiana Bureau of Investigation and the U.S. Department of Homeland Security, Homeland Security Investigations with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.
Putnam County Man Sentenced to 10 Years in Prison for Sex Trafficking CrimeRead the Press Release
CHARLESTON, W.Va. – James Michael Pritt, 40, of Buffalo, Putnam County, was sentenced today to 10 years in prison, to be followed by 10 years of supervised release, for attempted sex trafficking of a minor. Pritt must also register as a sex offender.
According to court documents and statements made in court, on October 1, 2021, Pritt contacted another man online and arranged to pay him $150 in exchange for the man providing him with a 14-year-old girl for sexual intercourse. When Pritt arrived at the meeting location in South Charleston later that day, he was arrested.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) Violent Crimes Against Children Task.
United States District Judge Judge Irene C. Berger imposed the sentence. Assistant United States Attorneys Jennifer Rada Herrald and Andrew D. Isabell prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-200.
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Philadelphia Pharmacy and Owner Who Pled Guilty Agree to Resolve Civil Fraud and Controlled Substance Liability for over $4 MillionRead the Press Release
PHILADELPHIA – U.S. Attorney Jacqueline C. Romero announced that the United States filed a proposed civil judgment with Philadelphia-based Spivack, Inc., previously operating under the name Verree Pharmacy, and owner-pharmacist Mitchell Spivack, to resolve allegations that they engaged in a years-long practice of illegally dispensing opioids and other controlled substances, and systematic health care fraud. The United States filed the related lawsuit against them and other employees of the pharmacy earlier this year. The pharmacy and Spivack have agreed, subject to court approval, to pay over $4.1 million to resolve their civil liability under the Controlled Substances Act, False Claims Act, and forfeiture. The proposed judgment would also permanently ban them from ever dispensing controlled substances in the future.
The culmination of a multi-year federal-state investigation, the previously-filed complaint alleged that Verree Pharmacy, its pharmacist and owner Mitchell Spivack, and other employees of Verree, had a responsibility to dispense opioids and other controlled substances only when appropriate. Instead, the United States alleged that the pharmacy and Spivack dispensed the drugs, even when faced with numerous red flags suggestive of diversion—such as opioids in extreme doses, dangerous combinations of opioids and other “cocktail” drugs preferred by those addicted, excessive cash payments for the drugs, blatantly forged prescriptions, and other signs that the pills were being diverted for illegal purposes. The complaint alleged that Verree—which was the top retail pharmacy purchasing oxycodone in Pennsylvania—has been a nationwide and regional outlier in its deviant purchasing, dispensing, and billing of controlled substances. To avoid scrutiny from the drug distributors that sold them the pills, Verree through Spivack allegedly made false statements to maintain the façade of legitimacy and keep the pharmacy stocked with these pills critical to their profits. Behind that façade, the complaint alleged that Spivack drew millions of dollars from the pharmacy while the public suffered the consequences.
The United States’ complaint alleged that Verree and Spivack were also engaged in an expansive health care fraud scheme involving fraudulent billings for drugs not actually dispensed. The alleged cornerstone of the scheme was a code used by the pharmacy employees in their internal computer system: “BBDF” or “Bill But Don’t Fill.” Verree, Spivack, and their co-conspirators allegedly used BBDF as a means to cover their losses on other drugs and further line their pockets with illicit profits by falsely claiming to insurers, including Medicare, that they had dispensed a drug to a patient, when in fact they had not. According to the complaint, this sophisticated fraud—which one of the employees admitted to investigators—resulted in significant damages to Medicare and other federal programs.
The lawsuit seeks civil penalties and damages on Verree, Spivack, and the other pharmacy employee defendants under the Controlled Substances Act, False Claims Act, and civil forfeiture.
The pharmacy and Spivack agreed to resolve this civil liability under terms outlined in the proposed consent judgment, if accepted by the court. Among other things, the pharmacy and Spivack would pay over $4.1 million in civil damages and penalties under the False Claims Act, Controlled Substances Act, and in civil forfeiture, along with the approximately $500,000 Spivack agreed to pay in criminal restitution and criminal forfeiture. The proposed resolution would also permanently prevent the pharmacy and Spivack from prescribing, distributing, or dispensing any controlled substances in the future, and prevents them from ever seeking another controlled substance registration from the Drug Enforcement Administration. The resolution would also impose a 22-year exclusion on the pharmacy and Spivack from Medicare and Medicaid.
The civil complaint relates to criminal charges that were previously filed against Mitchell Spivack. On May 31, 2022, the U.S. Attorney’s Office filed a one-count criminal information against Spivack for conspiracy to defraud the United States based on allegations similar to those in the civil litigation. Spivack pled guilty to that charge on June 29, 2022.
“Pharmacies and pharmacists who engage in illegal dispensing of opioids devastate their communities and worsen our country’s opioid epidemic” said U.S. Attorney Romero. “Providers who abuse Medicare and other federal health care programs by taking money with false billings also steal precious resources from programs critical to the health of our seniors and other citizens. This Office is committed to investigating and holding accountable those providers who violate their controlled substance and health care billing obligations. Our Office deeply appreciates our partnership with the DEA, HHS-OIG, and the Pennsylvania Attorney General’s Office in pursuing these cases.”
“In a city that has been so adversely and disproportionately affected by the opioid epidemic, Verree Pharmacy was the top retail pharmacy purchasing oxycodone in the entire state of Pennsylvania,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “Spivack and Verree Pharmacy routinely demonstrated total disregard for their professional and ethical obligations, and improperly dispensed powerful painkillers when numerous warning signs were present.”
“The Medicare and Medicaid Programs provide vital prescription drug services to their beneficiaries,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office for the Department of Health and Human Services, Office of Inspector General. “Pharmacies are required to only bill for prescriptions and products they actually provide to their patients. HHS-OIG will continue to work with the U.S. Attorney’s Office, the Pennsylvania Attorney General’s Office, and the DEA to investigate allegations of fraudulent insurance billings.”
“We know that nearly 80% of those who use heroin first started with misusing a prescription opioid,” said Attorney General Josh Shapiro. “Today, this pharmacy and their owner took a critical step in resolving the civil suit against them for allegedly filling prescriptions outside of medical standards for the highly addictive drug oxycodone. In addition to the owner’s criminal plea, this civil settlement will get them out of the drug business for good. The opioid crisis killed 5,438 Pennsylvanians last year – and we can’t afford to lose one more life. Pharmacies and medical professionals have a responsibility under the law to dispense these drugs only when appropriate.”
If the public has any information regarding Verree Pharmacy or any other health care fraud allegation, individuals should contact the HHS-OIG hotline at 800-HHS-TIPS.
The case is being investigated by the Philadelphia Field Division of the DEA, the Pennsylvania Department of State’s Bureau of Enforcement and Investigation, HHS-OIG, and the Pennsylvania Office of the Attorney General, with additional assistance from the HHS-OIG Office of Audit Services, Office of Personnel Management Office of Inspector General, the Defense Health Agency, and the Defense Criminal Investigative Service. The civil investigation and litigation are being handled by Assistant United States Attorneys Anthony D. Scicchitano and Sarah L. Grieb and auditors Dawn Wiggins and George Niedzwicki. The related criminal charges are being prosecuted by Assistant United States Attorney M. Beth Leahy and Special Assistant United States Attorney Linda Montag from the Pennsylvania Office of the Attorney General.
Except for what has been admitted in the criminal proceeding, the complaints in the civil litigation contain allegations only that the United States must prove if the case proceeds to trial. The proposed consent judgment would resolve any alleged civil liability as to Spivack, Inc. d/b/a Verree Pharmacy and Mitchell Spivack. The United States’ civil litigation against the remaining pharmacy employee defendants remains ongoing.
Penitas mayor convicted of defrauding La Joya school districtRead the Press Release
McALLEN, Texas – The current mayor of Penitas has pleaded guilty to fraud, announced U.S. Attorney Jennifer B. Lowery.
Rodrigo Lopez, 38, Penitas, admitted that in 2018 he aided and abetted the La Joya Independent School District (LJISD) athletic director in committing fraud against the district.
Through his company Xizaka LLC, Lopez had responded to an LJISD solicitation for bids for athletic supply vendors. He was approved. LJISD purchasing procedures require employees to disclose personal or financial interest in connection with bids to the superintendent. As an LJISD employee, he failed to do so.
Lopez also failed to submit the required Conflict of Interest Questionnaire disclosing his interest as a vendor prior to entering into transactions with LJISD.
LJISD purchasing procedures require competitive bids for purchases in excess of $15,000. LJISD purchasing procedures and state law also require competitive procurement mechanisms for contracts for goods in excess of $50,000 per year.
As a vendor, Lopez sold approximately 156 baseball gloves, 15,400 square feet of turf and three pitching machines to LJISD between March and August 2018 for a total of approximately $70,010. In efforts to approve the inflated costs associated with those purchases, Lopez fraudulently submitted over 20 separate invoices to the La Joya athletic director in efforts to aid and abet circumventing of competitive procurement procedures and subsequent approval of the invoices.
As a result of the fraudulent approvals, Lopez fraudulently received at least $34,923.70 in profits and proceeds from the LJISD.
Lopez agreed to pay restitution in that amount.
U.S. District Judge Micaela Alvarez accepted the plea and set sentencing for Oct. 31. At that time, Lopez faces up to 10 years in prison. He was permitted to remain on bond pending that hearing.
The FBI conducted the investigation with the assistance of the Bureau of Alcohol, Tobacco Firearms, and explosives, U.S. Department of Agriculture, Texas Department of Insurance and McAllen Police Department. Assistant U.S. Attorney Roberto Lopez Jr. is prosecuting the case.
Pasadena Man Pleads Guilty to Possession of Child PornographyRead the Press Release
Baltimore, Maryland – Raymond Martin Shamer, III, age 21, of Pasadena, Maryland, pleaded guilty today to possession of child pornography. Shamer admitted that he also distributed child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore.
According to his guilty plea, from at least July 7, 2019 through June 24, 2020, Shamer used online accounts to communicate with others about child pornography, to distribute child pornography, and to collect child pornography. Many of the files Shamer collected documented adults sexually abusing of infants and toddlers while they are bound and subjected to other violent conduct.
Shamer admitted that he used a secure communication application to upload images of children engaged in sexually explicit conduct, and that he shared links to those images with a group of users with whom he engaged in group chat conversations.
On June 24, 2020, a search warrant was executed at Shamer’s residence and investigators seized Shamer’s cell phones and computer. A subsequent forensic examination of the devices revealed a total of more than 1,000 images of child pornography on Shamer’s devices.
As detailed in his plea agreement, upon his release from prison, Shamer will be required to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (“SORNA”).
Shamer and the government have agreed that, if the Court accepts the plea agreement, Shamer will be sentenced to at least three years in federal prison, followed by at least 20 years of supervised release. U.S. District Judge Ellen L. Hollander has scheduled sentencing for November 29, 2022 at 11:00 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Erek L. Barron commended HSI for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Parma Man Charged with Conspiracy to Commit Arson During May 30, 2020, Demonstrations and Unrest in Downtown ClevelandRead the Press Release
A Parma man has been charged with one count of conspiracy to commit arson related to the destruction of a parking booth during the May 30, 2020, demonstrations and civil unrest in downtown Cleveland.
According to the indictment, Seth Calig, 49, and others known and unknown are accused of setting fire to the Shaia & PPR parking booth located on West 3rd Street on May 30, 2020. It is alleged that the defendant and others gathered around the parking booth and that the defendant ignited a roll of paper towels and cardboard with a lighter and placed it inside the booth. As a result, it is alleged that Calig and others caused physical damage to the parking booth.
An indictment is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the court after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum; in most cases, it will be less than the maximum.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Cleveland Division of Police. This case is being prosecuted by Assistant U.S. Attorney Kelly L. Galvin.
Parent Sentenced in College Admissions CaseRead the Press Release
BOSTON – A Pennsylvania man was sentenced today in federal court in Boston in connection with using fraud and bribery to facilitate his child’s acceptance to Georgetown University.
Robert Repella, 63, of Ambler, Penn., was sentenced by U.S. District Court Judge Allison D. Burroughs to one year of probation, with the first 25 days spent in home detention, 220 hours of community service and a fine of $220,000. In May 2020, Repella pleaded guilty to one count of conspiracy to commit mail fraud and honest services mail fraud.
Repella agreed to pay Gordon Ernst, the head Georgetown tennis coach at the time, more than $120,000 directly, in exchange for purporting to recruit his daughter to the Georgetown tennis team. Repella was not involved in the college admissions conspiracy led by William “Rick” Singer, which also involved Ernst.
Repella first met with Ernst in August 2017 and agreed to pay Ernst to use one of his six yearly recruitment slots for Repella’s daughter, even though her abilities were not at the level of a typical Georgetown recruit. During an arranged Georgetown campus visit for Repella’s daughter, Repella handed Ernst a check in the amount of $25,000. Repella made a second payment of $25,000 to Ernst slightly more than two weeks later. After Ernst designated Repella’s daughter as one of his tennis recruits, Repella made additional payments to Ernst, or for his benefit, through August 2018, including tuition payments to Ernst’s daughters’ private high school.
Ernst previously pleaded guilty and was sentenced to 30 months in prison, two years of supervised release and ordered to forfeit $3,435,053.
Case information, including the status of each defendant, is available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Terry Harris, Special Agent in Charge of the U.S. Department of Education Office of Inspector General Eastern Regional Office made the announcement today. Assistant U.S. Attorneys Stephen E. Frank, Leslie A. Wright, Kristen A. Kearney and Ian Stearns of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.
Oakland Resident Charged in Scheme to Distribute Drugs in the Tenderloin District of San FranciscoRead the Press Release
SAN FRANCISCO – The Office of the United States Attorney filed a federal criminal complaint charging Elio Hernandez-Zuniga with distributing methamphetamine and fentanyl in San Francisco’s Tenderloin District, announced U.S. Attorney Stephanie M. Hinds and Drug Enforcement Administration (DEA) Special Agent in Charge Wade R. Shannon. Zuniga was arrested Thursday, August 4, 2022, and appeared August 10, 2022, at a detention hearing before U.S. Magistrate Judge Sallie Kim, who remanded him into federal custody pending further proceedings.
According to the criminal complaint, on May 26, 2022, Hernandez-Zuniga, 25, of Oakland, was riding back and forth on a scooter in the Tenderloin district when an undercover law enforcement officer approached Zuniga and offered to purchase $100 worth of methamphetamine. Zuniga agreed to the transaction, exchanged telephone numbers with the undercover officer, and gestured to a colleague to come where the transaction was occurring. The complaint alleges that Zuniga conversed in Spanish with the associate, received something from him, and eventually provided the undercover officer with 10 small packages of suspected methamphetamine.
In additional filings in the case, the government alleges that Hernandez-Zuniga commuted directly from Oakland to San Francisco and back approximately six days a week between around 9 a.m. and 5 p.m. to sell drugs. The complaint describes an additional four transactions that are alleged to have occurred during June and July of 2022. The first transaction, on June 7, 2022, allegedly occurred after an undercover officer contacted Hernandez-Zuniga by text message and offered to purchase $100 worth of methamphetamine and $100 worth of fentanyl. Hernandez-Zuniga agreed and arranged to meet in the Tenderloin. The officer and Hernandez-Zuniga met, but Hernandez-Zuniga provided $200 worth of suspected methamphetamine, but no fentanyl. An additional transaction occurred the next day when Hernandez-Zuniga agreed to, and actually did, provide the undercover officer with $100 worth of suspected fentanyl.
The next transaction allegedly occurred July 7, 2022. On that day, the undercover officer drove an unmarked police vehicle and parked at the corner of Post and Larkin Streets in the Tenderloin. Hernandez-Zuniga allegedly parked his scooter nearby, entered the unmarked car, and negotiated the sale of two bags of suspected fentanyl, weighing in total over 50 grams. Similarly, the complaint describes a transaction that allegedly occurred July 27, 2022, after which the undercover officer again drove an unmarked police vehicle and parked at the corner of Post and Larkin Streets. Again, Hernandez-Zuniga entered the car and this time negotiated the sale of over 57 gross grams of suspected methamphetamine for $800.
In connection with his August 4, 2022, arrest, law enforcement officers found 162.2 grams of suspected fentanyl, 180 grams of suspected methamphetamine, 120.7 grams of suspected cocaine base, and 35.3 grams of suspected heroin in Zuniga’s possession. In addition, officers found packaging materials, multiple digital scales, and over $2,000 in cash.
The criminal complaint charges Hernandez-Zuniga with possession with intent to distribute and distribution of 40 grams or more of a mixture or substance containing a detectable amount of fentanyl, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(B)(vi), and possession with intent to distribute and distribution of a mixture or substance containing a detectable amount of methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(C). For the fentanyl distribution charge, Hernandez-Zuniga faces a mandatory minimum five years in prison as well as a maximum 40 years of imprisonment and $5,000,000 fine. For the methamphetamine distribution charge, Hernandez-Zuniga faces a maximum 20 years of imprisonment and $1,000,000 fine. However, any sentence after conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Hernandez-Zuniga is next scheduled to appear on August 31, 2022, before Judge Kim, for a further detention hearing.
Assistant U.S. Attorney Kevin Yeh is prosecuting this case with assistance from Mimi Lam and Alycee Lane.
This case is the result of an investigation by the DEA with assistance from the San Francisco Police Department.
New York Man Sentenced for Threatening Public OfficialsRead the Press Release
RICHMOND, Va. – A New York man was sentenced today to more than 9 years in federal prison for mailing threatening letters to a federal law enforcement officer with the Naval Criminal Investigative Service and to a federal prosecutor.
According to court documents, in 2021, Brock Beeman, 29, sent multiple threatening letters from prison to governmental employees associated with a separate criminal prosecution of the defendant in Norfolk. These letters included detailed threats to kill, torture, and/or maim various individuals, including a United States District Judge, a United States Probation Officer, Assistant United States Attorneys, Special Agents with the Naval Criminal Investigative Service, United States Marshals, and other individuals associated with the defendant’s Norfolk criminal prosecution, as well as their friends and family members. These letters further included bomb threats for various locations, including federal courthouses, a military installation, and law enforcement offices.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Shannon Saylor, Acting United States Marshal for the Eastern District of Virginia, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck.
Assistant U.S. Attorneys Angela Mastandrea-Miller and Avi Panth prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:21-cr-095.
Nevada Woman Charged with Obstructing Justice by Falsifying Records while Released on BailRead the Press Release
NEWARK, N.J. – A Nevada woman will make her initial court appearance today for allegedly falsifying records in connection with criminal charges she is currently facing in the District of New Jersey, U.S. Attorney Philip R. Sellinger announced.
Anna Kline, aka “Jordana Weber,” is charged by complaint with one count of falsifying records in a federal investigation. She was arrested Aug. 10, 2022, and is scheduled to appear today before U.S. Magistrate Judge Craig Denney in the District of Nevada.
According to the complaint:
On July 31, 2019, Kline and a conspirator, Jason Torres, were charged by criminal complaint in the District of New Jersey for their roles in a $7 million fraudulent advance fee scheme orchestrated by Kline between April 2017 and July 2019.
While out on bail on this charge, Kline, through her then-attorney, provided the government with a .pdf document that purported to be a portion of a Cellebrite report showing iMessages between Kline and Torres showing Torres making threats toward Kline and insinuating that Torres was primarily responsible for the fraudulent advance fee scheme.
A forensic review of the .pdf document revealed that it had been falsified. Kline also presented the fake Cellebrite report to a family court in California as part of a custody dispute between Kline and Torres. During that hearing, Kline represented that the report had been generated by a forensic examiner named “Drew Andrews.” The investigation revealed that “Andrews” did not exist, but was actually an alter-ego of Kline’s that she used to deceive the California family court, her attorney, and a forensic expert.
In addition to the fraudulent Cellebrite report, Kline also provided the government a computer that she claimed contained an iTunes backup that included the alleged text messages from Torres. A forensic review of the computer revealed that data on the computer, including the iTunes backup, had been manipulated. Kline changed, or caused to be changed, certain time stamps on the computer to make it appear as if the iTunes backup and other files stored on the computer were created in April 2020, when the fictional “Andrews” purportedly ran the fraudulent Cellebrite report.
The obstruction charge carries a maximum penalty of 20 years in prison and a fine of up to $250,000.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Anthony Torntore of the U.S. Attorney’s Cybercrime Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Nashville Man Sentenced to Federal Prison for Drug & Firearms ViolationsRead the Press Release
NASHVILLE – A Nashville, Tennessee man was sentenced to 15 years in federal prison today for drug and firearms violations, announced U.S. Attorney Mark H. Wildasin.
Anthony Ussery, 40, pleaded guilty in May to being a convicted felon in possession of a firearm; being a convicted felon in possession of ammunition; and possession with intent to distribute more than 40 grams of fentanyl.
According to Court records, On May 8, 2019, officers with the Metropolitan Nashville Police Department (MNPD) responded to a shots fired call at the intersection of East Trinity Lane and Meridian Street and discovered two victims with gunshot wounds. Video footage from a nearby business showed a black sedan approach the victims, at which point an individual fired multiple shots before fleeing the scene. The subsequent investigation identified Ussery as the shooter and the two victims, who are brothers, believed the shooting occurred as a result of a recent dispute with Ussery. Ussery was later arrested and charged by MNPD in relation to this shooting.
On March 23, 2021, while out on bond for the May 2019 shooting, Ussery was stopped by a Nashville Airport Authority police officer for a traffic violation and was found to be in possession of 57 grams of fentanyl and a loaded 9mm pistol. On March 25, 2021, a federal criminal complaint charged Ussery with federal crimes and he was subsequently indicted by a federal grand jury on July 13, 2021.
Ussery has four prior felony convictions, including attempted robbery; manslaughter; facilitation of the sale of drugs; and possession with intent to distribute Schedule IV controlled substances. In sentencing Ussery, the Court found that these convictions qualified him as an Armed Career Criminal, subjecting him to a mandatory minimum of 15 years in prison.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives; the Metropolitan Nashville Police Department; and the Nashville Airport Authority Department of Public Safety. Assistant U.S. Attorneys Josh Kurtzman and Dwight Artis prosecuted the case.
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Nashville Man Pleads Guilty to Federal Firearms Charge After Hiding Cache of Weapons in Detention CenterRead the Press Release
NASHVILLE – A Nashville, Tennessee man scheduled for trial in U.S. District Court next week pleaded guilty today to being a convicted felon in possession of a firearm, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
Alexander Friedmann, 52, was charged in May 2020, after an elaborate scheme was uncovered in which Friedman hid a variety of weapons and accessories in the Davidson County Downtown Detention Center (DDC) while it was under construction. Friedmann was found guilty last month of felony vandalism by a state trial jury.
“Whatever sinister plan Friedmann had intended was foiled by the keen attention to detail by DCSO employees,” said U.S. Attorney Wildasin. “I commend these dedicated law enforcement professionals who made the initial discovery and our other local and federal partners who initiated an enormous response to ensure the safety of all when the facility opened. “Through their efforts, the possibility for unspeakable tragedy was avoided.”
According to Court documents, in late December 2019, while preparing for the January 2020 opening of the facility, Davidson County Sherriff’s Office (DCSO) employees discovered two keys missing from the facility’s key control room. A review of video surveillance footage revealed that an individual, dressed in clothing consistent with facility construction workers, had entered the room and taken two keys to secure areas of the facility. On January 4, 2020, the same individual, later identified as Friedmann, was located on the property. Friedmann was wearing a yellow reflective vest, a hard hat, protective gloves, and a dust mask covering his face. Friedmann told DCSO employees he was there working, but it was determined that he was not employed by the construction company or any of its contractors. Friedmann was detained by the DCSO, and subsequently arrested by the Metropolitan Nashville Police Department. At the time of his arrest, Friedmann had a hand drawn schematic of a portion of the DDC, which he attempted to destroy by chewing it up and swallowing.
A subsequent review of historical surveillance footage determined that, beginning in August 2019, an individual dressed as a construction worker and alleged to be Friedmann, entered the facility on at least 10 occasions, sometimes accompanied by an accomplice who acted as a lookout. The individual was observed on video on several occasions removing material from the expansion joints in block walls and caulk from window areas, after which he placed items inside and covered the joints with another material. On other occasions, he was observed checking different parts of the facility and making notes. Based on the video evidence, a search of the identified areas of the facility was conducted on February 10, 2020, and investigators recovered three handguns, ammunition, handcuff keys, razor blades, and other items.
Subsequent investigation determined that Friedmann owned a condominium in a complex in Nashville and contracted an individual to build a 200 square foot fire-proof storage area in a basement area of one of the buildings. This storage area was constructed out of concrete block. When law enforcement executed a search warrant at this location on March 13, 2020, it appeared that this room was used as a practice facility. Investigators noticed several inconsistencies in the mortar joints of the block walls, similar to those discovered earlier at the DDC. It was also determined that Friedmann had recently moved several locked storage crates from the room to a friend’s house on Whites Creek Pike in Joelton, Tennessee.
On March 20, 2020, a search warrant was executed at the Joelton location, and investigators recovered several crates, which contained 21 firearms, including assault rifles, handguns, shotguns and a 37mm launcher.
Friedmann has been convicted of prior felonies, including armed robbery; assault with intent to commit first degree murder; and attempted aggravated robbery. Sentencing is scheduled for January 4, 2023.
This case was investigated by the FBI; the Bureau of Alcohol, Tobacco, Firearms & explosives; the Metropolitan Nashville Police Department and the Davidson County Sheriff’s Office. Assistant U.S. Attorney Rob McGuire is prosecuting the case.
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Middlesex County Company Admits Undervaluing Merchandise to Avoid Paying U.S. Customs DutiesRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, company has entered into a settlement agreement with the United States to resolve allegations that it made false statements to avoid paying customs duties, U.S. Attorney Philip R. Sellinger announced today.
According to the admissions and contentions of the United States in the settlement agreement:
Eos Energy Storage LLC (Eos) is a publicly traded company headquartered in Edison, New Jersey, that designs and sells industrial batteries to power companies and other commercial enterprises. From July 8, 2018, to June 7, 2019, Eos purchased components for its batteries from third parties in the United States and elsewhere, and then provided those components to a foreign manufacturer to be included in the assembly of batteries that Eos imported into the United States. Once the batteries were assembled, Eos imported them into the United States.
When Eos imported the assembled batteries into the United States, the company should have declared to U.S. Customs the value of the components that it provided to the foreign manufacturer. Eos failed to declare the value of those components to U.S. Customs. Eos also failed to declare transportation and packing costs that should have been declared. In the settlement agreement, Eos admitted that as the importer of record, it was obligated to declare the value of the components, as well as the transportation and packing costs, but failed to do so on more than 60 occasions. Under the settlement agreement, Eos will pay $1.02 million to the United States pursuant to the False Claims Act.
The settlement with Eos resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties, called relators, to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The relator, Vincent Icolari, will receive 20 percent of the settlement amount recovered by the United States pursuant to the False Claims Act.
U.S. Attorney Sellinger credited special agents with the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark, and U.S. Customs and Border Protection, Office of Field Operations under the direction of Director Francis Russo in New York, with the investigation leading to the settlement.
The government is represented by Assistant U.S. Attorney David V. Simunovich of the Health Care Fraud Unit in Newark.
The qui tam case is captioned United States ex rel. Icolari v. Eos Energy Storage, LLC, Civil Case No. 19-22129 (MCA) (LDW).
Meridian Man Pleads Guilty to Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – A Meridian man pleaded guilty today to possession of a firearm by a convicted felon, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court documents, Billy Ray Craven, 54, was found in possession of a firearm in his vehicle by officers of the Lauderdale County Sheriff’s Office on August 6, 2019, during a traffic stop.
Craven plead guilty to a violation of Title 18, United States Code, Section 922(g)(1) which criminalizes the possession of firearms by convicted felons. He is scheduled to be sentenced on November 8, 2022 and faces a maximum penalty of 10 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Lauderdale County Sheriff’s Office and the ATF are investigating the case.
Assistant U.S. Attorney Charles W. Kirkham 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.
Massachusetts Fugitive Charged with Possessing Fentanyl and CocaineRead the Press Release
Damian Williams, United States Attorney for the Southern District of New York, Frank A. Tarentino III, the Special Agent-in-Charge of the New York Field Office of the Drug Enforcement Administration (“DEA”), Ricky J. Patel, the Acting Special Agent-in-Charge of the New York Field Office of the Department of Homeland Security (“HSI”), and Keechant Sewell, the Commissioner of the New York City Police Department (“NYPD”), announced that BENITO BELLO, a/k/a “Zuriel Ayala Rodriguez” was charged in a criminal complaint today with possession of fentanyl and cocaine with the intent to distribute them. BELLO was arrested yesterday on an outstanding warrant in Massachusetts and has been charged by complaint in the Southern District of New York. BELLO will be presented before United States Magistrate Judge Robert W. Lehrburger in Manhattan federal court at a later date.
U.S. Attorney Damian Williams said: “As alleged, the defendant was trafficking huge quantities of fentanyl from his home in the Bronx—a home he shared with his minor children and a home that was next door to a day care center serving infants as young as six weeks old. Thanks to our law enforcement partners, approximately 14 kilograms of this deadly drug that is fueling the opioid epidemic in our city will never flood the streets.”
DEA Special Agent-in-Charge Frank Tarentino said: “Seventy five percent of all overdoses and poisonings involve an opioid like heroin and fentanyl. This seizure and arrest have saved lives and shut down a multi-million dollar drug mill located next door to a children’s day care. DEA works with our law enforcement partners every day to make this city and country safer and healthier. I applaud the collaboration and hard work by our law enforcement partners.”
HSI Acting Special Agent-in-Charge Ricky J. Patel said: “The dangers of fentanyl are well known. As drug traffickers become more brazen, displaying complete disregard for human life, the plague of addiction continues to tear apart families and communities not only in New York, but throughout the country. Yesterday’s enforcement action took approximately fourteen kilograms of this deadly narcotic not only off the street, but removed it from a residence mere steps from a day care center for young children. HSI, along with our law enforcement partners, will never cease in supporting our local communities in the fight against drug traffickers.”
NYPD Commissioner Keechant Sewell said: “These charges further affirm the NYPD’s unwavering commitment to ridding our city of illegal drugs. And this investigation – involving several law enforcement agencies across multiple states – is a perfect example of how focused collaboration makes us all safer. The narcotics trade wreaks havoc in our communities, and our job is to ensure that anyone who peddles this poison be brought to justice swiftly and successfully. To that end, I thank and commend the U.S. Attorney for the Southern District, the DEA’s New York Field Office, Homeland Security Investigations New York, and all of our law-enforcement partners for their outstanding work on this case.”
As alleged in the Complaint filed today in Manhattan federal court[1]:
On or about January 31, 2013, the Trial Court of Massachusetts, Superior Court, issued a warrant for the arrest of BELLO, a/k/a “Zuriel Ayala Rodriguez,” for failure to appear on charges of drug trafficking, assault and battery, possession of a dangerous weapon, and negligent operation of a motor vehicle.
On or about August 10, 2022, law enforcement agents sought to arrest BELLO on the Massachusetts warrant, after law enforcement surveillance located BELLO at a particular residence in the Bronx. The Bronx residence is located next to a day care center for children as young as six weeks old.
Law enforcement agents later searched the Bronx residence and recovered approximately 14 kilograms of fentanyl, one kilogram of cocaine, a kilogram press, a pill press, a scale, and other drug paraphernalia. Additionally, law enforcement agents recovered suspected fentanyl from a toilet in the Bronx residence, which was running as if it had been flushed.
BELLO, 44, of Lawrence, Massachusetts, is charged with possession with intent to distribute a controlled substance, which carries a maximum sentence of life imprisonment. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of DEA, HSI, and the NYPD. Mr. Williams also praised the United States Marshals for the Southern District of New York and the New York/New Jersey Regional Fugitive Task Force.
The case is being handled by the Office’s Narcotics Unit. Assistant United States Attorney Marguerite B. Colson is in charge of the prosecution.
The charges in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Maryland Men Sentenced to Prison Terms for Membership in Computer Fraud and Identity Theft Ring That Targeted State GovernmentsRead the Press Release
ALBANY, NEW YORK – Guy Cuomo a/k/a “John Monaco,” age 54, of Frederick, Maryland, was sentenced today to 45 months in prison for computer fraud, misuse of a social security number, aggravated identity theft and related conspiracy charges for his role in a scheme to sell information unlawfully obtained from the New York State Department of Labor and workforce agencies in other states.
The announcement was made by United States Attorney Carla B. Freedman and Jonathan Mellone, Special Agent in Charge, New York Region, United States Department of Labor, Office of Inspector General (USDOL-OIG).
The evidence at Cuomo’s 5-day trial showed that Cuomo worked for and managed companies owned by Jason “J.R.” Trowbridge in Frederick, Maryland, including Paymerica Corporation. Paymerica researched where purported debtors worked and sold the employer information—called place-of-employment information or “POE”—to debt collectors and companies selling information to debt collectors. In the debt collecting industry, the process is known as “skiptracing.”
To obtain the place-of-employment information, Cuomo and other members of the conspiracy pretended to be the debtors, created thousands of online unemployment insurance applications in the debtors’ names and with the debtors’ personal identifiers, including social security numbers, and completed the applications to the point where each debtor’s last known place of employment appeared. After confirming that the debtors worked for the relevant employers, Paymerica sold the place-of-employment information for approximately $90 per debtor. Over the course of approximately three years, Paymerica made nearly $1 million selling the stolen place-of-employment information.
Cuomo, Trowbridge and other conspirators took a number of steps to hide their activities from state agencies and law enforcement, including using Virtual Private Networks, or VPNs, to mask the Internet Protocol addresses used to access and fill out the unemployment insurance applications in the debtors’ names. The evidence showed that the scheme involved attempts to obtain place-of-employment information for as many as 200,000 people from all 50 states and that Paymerica sold place-of-employment information for at least 12,000 people from 40 states.
United States District Judge Mae A. D’Agostino also ordered Cuomo to serve a 3-year term of supervised release, to begin after he is released from prison.
On March 10, 2022, Senior United States District Judge Thomas J. McAvoy accepted an agreed-upon sentence and ordered that Trowbridge—who pled guilty to conspiracy, misuse of social security number, and aggravated identity theft on November 9, 2021—serve 39 months in prison to be followed by a 2-year term of supervised release, and to pay a $30,000 fine. Trowbridge also agreed to forfeiture of $446,996.46 held in various bank accounts tied to the scheme.
Trowbridge and Cuomo’s five co-defendants previously pled guilty to the following charges and will be sentenced by Judge D’Agostino at a later date:
Defendant
Charge(s)
Maximum Prison Term
Robin Chapin a/k/a “Thomas Price,” age 64, of Frederick, Maryland
Conspiracy to commit computer fraud, accessing a protected computer and obtaining information, aggravated identity theft
Two years for aggravated identity theft, maximum term of 10 years on remaining charges
Rebecca Fogle a/k/a “Roxanne Morris” and “Jessica Felton,” age 28, of Woodsboro, Maryland
Conspiracy to commit computer fraud, accessing a protected computer and obtaining information, aggravated identity theft
Two years for aggravated identity theft, maximum term of 10 years on remaining charges
Shamair Brison a/k/a “Felicia Carter,” age 37, of Frederick, Maryland
Aggravated identity theft
Two years
Sarah Bromfield a/k/a “Nicole Wagner,” age 42, of Frederick, Maryland
Aggravated identity theft
Two years
Anna Hardy a/k/a “Sarah Thomas,” age 69, of Frederick, Maryland
Aggravated identity theft
Two years
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.
The case was investigated by USDOL-OIG, with assistance from the New York State Department of Labor, Office of Special Investigations, and is being prosecuted by Assistant U.S. Attorneys Joshua R. Rosenthal and Cyrus P.W. Rieck. The case was also prosecuted to indictment by Assistant U.S. Attorney Wayne A. Myers.
Man Pleads Guilty to 2019 Delaware County MurderRead the Press Release
A 28-year-old man pleaded guilty Thursday in federal court for taking part in the 2019 Delaware County murder of Jerry Tapp and the shooting of a second victim, announced U.S. Attorney Clint Johnson.
Cody Dwayne Buzzard pleaded guilty to second degree murder in Indian Country and brandishing and discharging a firearm during and in relation to a crime of violence. Also charged for the crimes are Cody’s brother Dakota Buzzard and father James Buzzard. The two men are innocent until proven guilty beyond a reasonable doubt in a court of law.
“Today’s conviction was preceded by a meticulous and lengthy investigation by our local, state and federal law enforcement partners and Assistant U.S. Attorneys Ben Tonkin and Victor Régal,” said U.S. Attorney Clint Johnson. “My office will continue our pursuit for accountability in this case. Violent crime whether in Tulsa or in rural Oklahoma will be thoroughly investigated and the perpetrators brought to justice.”
“Today’s plea highlights the efforts of the FBI and our law enforcement partners in identifying, investigating, and prosecuting the most violent offenders in Indian Country,” said FBI Oklahoma City Special Agent in Charge Edward J. Gray. “Together we will continue to hold dangerous criminals like Mr. Buzzard accountable for their actions, pursue justice for victims, and make our communities a safer place for all Oklahomans.”
On Aug. 1, 2019, the Delaware County Sheriff’s Office responded to a 911 call reporting a shooting near Jay. Deputies discovered Jerry Tapp deceased in his front yard. It appeared that Tapp sustained multiple gunshot wounds to his body and that a second victim had sustained a gunshot wound to her arm. According to court documents, the victim told investigators that she heard a noise outside the home early that morning and thought Tapp had forgotten his keys to the house. When she turned on the light and opened the door, she heard gunfire and felt a sudden pain in her right wrist. She then shut and locked the front door, crawled to another room, and called 911. While investigating the crime, OSBI agents located and seized approximately 12, .22 caliber spent casings in the yard, driveway and roadway.
At 9:30 am the day of the crime, Dakota was located by deputies from the McDonald County Sheriff’s Office while driving a white 4-door Altima matching the victim’s description. OSBI agents later found four .22 caliber spent casings inside the vehicle and a .22 caliber rifle and bullets located behind a section of drywall in another individual’s residence who allegedly hid the firearm for the Buzzards. During the investigation, the shell casings found at the scene of the crime were identified as having been fired by the .22 caliber rifle.
On Aug. 6, 2019, investigators obtained Cody’s Facebook records after a search warrant was served. The day before the shooting Cody made inquiries using Facebook about getting a vehicle and firearm. He indicated that he “had business to tend to,” and he was going to “take care of a problem.”
During an interview with authorities, Dakota allegedly stated that he, James, and Cody Buzzard drove toward Tapp’s residence, parked up the road from the home, and waited for him to return from work. James Buzzard allegedly told his sons to retrieve a loaded .22 caliber rifle from the trunk of the car. Dakota stated that once Tapp drove by, the three men followed him to his home. After Tapp stepped out of his vehicle, prosecutors allege the Buzzards aided and abetted one another to shoot and kill Tapp and then shoot his girlfriend.
The FBI, Oklahoma State Bureau of Investigation (OSBI), Delaware County Sheriff’s Office, and McDonald County Sheriff’s Office conducted the investigation. Assistant U.S. Attorneys Ben Tonkin and Victor A.S. Régal are prosecuting the case.
See press release describing the charges here.
Lee’s Summit Man Sentenced to 15 Years in Prison for Four Bank RobberiesRead the Press Release
KANSAS CITY, Mo. – A Lee’s Summit, Mo., man was sentenced in federal court today for robbing four banks within a span of about two weeks.
Joseph P. Hall, 33, was sentenced by U.S. District Judge Howard F. Sachs to 15 years in federal prison without parole. Hall was sentenced as a career offender due to his prior felony convictions.
On Jan. 11, 2022, Hall pleaded guilty to two counts of bank robbery. Hall admitted that he stole $7,025 from Bank of America, 10100 E. State Route 350 in Raytown, Mo., on June 2, 2021. Hall also admitted that he stole $4,080 from Great Southern Bank, 150 S.E. Todd George Parkway in Lee’s Summit, Mo., on June 3, 2021.
According to court documents, Hall actually robbed four banks over a span of 15 days. In addition to the robberies to which he pleaded guilty, the court also considered the robbery of a Security Bank of Kansas City branch in Lee’s Summit on May 24, 2021, and the robbery of a Community America Credit Union in Independence on June 7, 2021, as relevant conduct for the purposes of today’s sentencing.
The total sum stolen by Hall during the four robberies was over $21,000. Each of the four bank robberies involved threatening conduct and statements, including Hall’s threats to kill or shoot tellers unless they complied with his demands.
According to court documents, during his first robbery at Security Bank of Kansas City, Hall walked up to the teller window, and loudly said: “Give me the money or I’m gonna kill everyone in here.”
During his second robbery, at Bank of America, Hall handed an employee a note demanding money and then escorted that employee to the teller, all while keeping his hand in his pocket. Upon arriving at the teller window with the employee, Hall instructed the teller to “give (him) all the money” or he would shoot and kill the employee. Hall then began counting backwards from 10, increasing his voice as the numbers got lower. Fearing Hall would kill the employee, the teller handed him the money.
During his third robbery, at Great Southern Bank, Hall again walked up to the teller window and stated: “Today is a good day, you are gonna get robbed. I have a weapon. You have five seconds or I’ll start (to) shoot.” The teller noticed that Hall kept one hand near his waistband during this interaction, and later indicated that she was afraid of being harmed if she did not comply with Hall’s demands While tellers were collecting money, Hall told them they were “going too slow” and “running out of time.”
Hall made similarly threatening statements during his fourth and final robbery, at Community America Credit Union. During that robbery, Hall approached a teller, greeted her, and placed a note on the counter that read: “Give me the money. Don’t say anything or I will kill you.”
On June 9, 2021, two days after the fourth robbery, law enforcement received an anonymous tip that Hall was at a hotel in Independence and had been in possession of a Taurus 9mm handgun. When officers knocked on the door of Hall’s hotel room, he opened the door and, upon seeing the officers, immediately slammed the door shut and barricaded himself inside the room for two-and-a-half hours. During that time, officers spoke with Hall, and he admitted that he was a convicted felon and had been in possession of a firearm. Hall eventually surrendered and was taken into custody.
Hall’s documented criminal history includes four felony convictions for robbery, two felony convictions for burglary, and a felony conviction for theft that involved breaking into a church and stealing more than $500 in property.
This case was prosecuted by Special Assistant U.S. Attorney Stephanie Bradshaw and Assistant U.S. Attorney Joseph M. Marquez. It was investigated by the FBI, the Kansas City, Mo., Police Department, the Lee’s Summit, Mo., Police Department, the Raytown, Mo., Police Department, the Independence, Mo., Police Department, and the Missouri State Highway Patrol.
Le ministère de la Justice clôt son enquête à la suite des améliorations apportées par le système judiciaire unifié du Dakota du Sud pour l’accès des personnes ayant des compétences limitées en anglaisRead the Press Release
Le ministère de la Justice (Justice Department) a annoncé aujourd’hui qu’il mettait fin à une enquête en matière de droits civils à la suite des mesures prises par le système judiciaire unifié du Dakota du Sud (Unified Judicial System, UJS) pour améliorer l’accès des personnes ayant une maîtrise limitée de l’anglais (limited English proficiency, LEP) aux programmes et aux activités judiciaires.
En octobre 2021, le ministère de la justice a finalisé son enquête sur l’UJS ouverte au titre du titre VI de la loi de 1964 sur les droits civils (Title VI of the Civil Rights Act of 1964, Title VI) interdisant toute discrimination fondée sur la race, la couleur et l’origine nationale par les bénéficiaires de l’aide financière fédérale. L’UJS a pris un certain nombre de mesures pour améliorer l’accès aux tribunaux d’État des personnes ayant une maîtrise limitée de l’anglais dans le Dakota du Sud. L’UJS a également officialisé un programme d’accès aux services linguistiques dans les tribunaux et publié plus récemment un programme d’accès aux services linguistiques à l’échelle de l’État qui exige de tous les tribunaux qu’ils fournissent des services d’interprétation et de traduction gratuitement à leurs usagers ayant une maîtrise limitée de l’anglais. En outre, l’UJS a dispensé aux juges et au personnel judiciaire une formation en matière d’accès aux services linguistiques portant notamment sur les exigences du Title VI et du droit de l’État. Le ministère clôt ainsi son enquête à la suite des mesures prises par l’UJS et d’autres actions qu’il a menées.
« La langue ne devrait jamais constituer un obstacle pour les personnes cherchant à accéder aux services de justice et aux tribunaux dans notre pays » a déclaré la Procureure générale adjointe Kristen Clarke, cheffe de la division des droits civils (Civil Rights Division) du ministère de la Justice. « Nous prenons acte des améliorations apportées par le système judiciaire unifié du Dakota du Sud qui ont contribué à améliorer considérablement l’accès aux tribunaux d’État pour les personnes ayant une maîtrise limitée de l’anglais ».
« Du projet de loi que l’UJS a introduit l’année dernière, devenu une loi d’État, au récent programme pour l’accès aux services linguistiques, l’UJS a amélioré l’expérience des usagers des tribunaux ayant une maîtrise limitée de l’anglais dans notre État », a déclaré Alison J.
Ramsdell, la Procureure des États-Unis pour le district du Dakota du Sud. « Notre bureau est chargé de travailler avec les partenaires étatiques et locaux afin de traiter les questions d’accès aux services linguistiques et d’autres questions importantes en matière de droits civils ».
Cette affaire a été menée conjointement par les procureurs de la division des droits civils et du bureau de la Procureure des États-Unis pour le district du Dakota du Sud. Des informations complémentaires sur la division des droits civils sont disponibles sur son site web à l’adresse www.justice.gov/crt, et des informations sur les programmes en matière de compétences limitées en anglais et le Title VI sont disponibles à l’adresse www.lep.gov/FRA. Le public peut signaler d’éventuelles violations des droits civils à l’adresse https://civilrights.justice.gov/report/ ou auprès du bureau de la Procureure des États-Unis pour le district du Dakota du Sud en remplissant le formulaire de dépôt de plainte disponible à l’adresse https://www.justice.gov/usao-sd/civil-rights.
Las Vegas Man Charged with Operating Sports Wagering Ponzi Scheme that Stole $8.5 Million from VictimsRead the Press Release
Matthew J. Turnipseede, 49, of Las Vegas, Nevada, was charged today in a 13-count indictment with defrauding approximately 72 investors in the Northern District of Ohio and elsewhere out of more than $8.5 million through a Ponzi scheme that promised investors double-digit profits achieved through various sports wagering businesses.
The defendant was officially charged with 12 counts of wire fraud and one count of mail fraud.
According to the indictment, from March 2015 to May 2021, the defendant induced victims to invest money in companies that he owned, namely Edgewize LLC, Moneyline Analytics, Moneyline Analytics Dublin Branch, and another company incorporated by Turnipseede, by falsely claiming that investor funds would be used to make sophisticated sports wagers according to an algorithm that generated double-digit returns.
According to the indictment, none of these companies ever generated the promised profits, and instead the defendant used investor money to maintain the business, seek new sources of funds, pay off earlier investors and fund personal expenses.
The indictment alleges that the defendant provided victim investors with operating agreements in which he claimed that all money invested would be used exclusively to place bets on sporting events and that the defendant would not be paid any compensation for placing the wagers but would retain a percentage of the winning profits.
To perpetuate the scheme, the defendant is accused of periodically emailing fraudulent financial statements to victims purporting to show substantial gains on their investments and employing an accounting firm to generate IRS forms based on fraudulent figures provided to the firm by the defendant. The indictment alleges that the defendant’s sports wagers never generated the promised profits for investors and that the information provided to the accounting firm was fraudulent. It is alleged that if a victim sought to withdraw some or all of their investments, the defendant used money from other victims’ contributions to cover the withdrawal.
In addition, it is also alleged that the defendant used investor funds to finance his personal expenses, including family vacations to Disneyland and Hawaii, spa treatments, lease payments on multiple vehicles and country club membership dues.
An indictment is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the court after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum; in most cases, it will be less than the maximum.
This case was investigated by the Cleveland FBI. This case is being prosecuted by Assistant U.S. Attorneys Erica D. Barnhill and Brian McDonough.
Kingpin Sentenced to Life in Prison plus 120 Months for Leading a Birmingham-Based Continuing Criminal Enterprise and Conspiracy to Distribute Methamphetamine, Heroin, Fentanyl, and CocaineRead the Press Release
BIRMINGHAM – A federal judge sentenced a Bessemer man charged under the “Kingpin” statute for leading a continuing criminal enterprise and large-scale drug trafficking conspiracy, announced U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr., and Internal Revenue Service Criminal Investigation (IRS-CI) Atlanta Field Office Special Agent in Charge James E. Dorsey.
United States District Judge Annmarie C. Axon sentenced Rolando Antuain Williamson, aka “Baldhead” and “Ball Head,” 37, of Bessemer, Alabama, to life in prison plus 120 months for leading a multi-million dollar continuing criminal enterprise; conspiring to distribute or possess with intent to distribute heroin, fentanyl, cocaine, methamphetamine, and marijuana; distributing or possession with intent to distribute heroin, fentanyl, cocaine, methamphetamine, and marijuana; using, carrying, or possessing a firearm during or in furtherance of a drug trafficking crime; and using a communication facility to commit a drug trafficking crime.
Two codefendants in the drug conspiracy were also sentenced by Judge Axon. Ishmywel Calid Gregory, also known as “C,” 38, of Mulga, Alabama, was sentenced to 480 months in prison, and Hendarius Lamar Archie, also known as “Hen,” 33, of Bessemer, Alabama, was sentenced to 169 months. Gregory and Archie were convicted of conspiring to distribute or possess with intent to distribute heroin, fentanyl, cocaine, methamphetamine, and marijuana. Both Gregory and Archie were also convicted of distributing or possessing with intent to distribute cocaine and marijuana. Archie was also convicted of using, carrying, or possessing a firearm during or in furtherance of a drug trafficking crime.
On April 18, 2022, after a week-long trial, a jury convicted Williamson, Gregory, Archie, and a fourth co-defendant of the charges.
A total of eighteen people were charged in the indictment returned on October 29, 2019. The indictment was the result of a three-year Organized Crime Drug Enforcement Task Force (“OCDETF”) investigation into the drug-trafficking enterprise based in Western Jefferson County. The task force identified acts in furtherance of the conspiracy committed by members of the organization over a period of six years. Fifteen of the defendants have now been sentenced, and three remaining defendants await sentencing later this month.
The OCDETF agencies involved in this investigation are the FBI, IRS, member agencies of the FBI North Alabama Safe Streets Task Force, the Jefferson County Sheriff’s Office, and the Bessemer Police Department.
The North Alabama Safe Streets Task Force arrested Williamson the morning of August 22, 2019, in the parking lot of a grocery store located in Homewood, Alabama. Williamson was driving a 2016 Dodge Hellcat worth $80,000. At the time of arrest, Williamson was armed two loaded pistols, additional loaded magazines, and was carrying almost $14,000 in cash. All other members of the conspiracy were arrested on or about November 13, 2019.
At the time of Williamson’s arrest, law enforcement officers seized from him and three of his stash houses, 366 grams of heroin/fentanyl, 109 grams of suspected cocaine, 573 grams of pure methamphetamine, 52 kilos of marijuana, over $97,000 in cash, multiple firearms, and over 1700 rounds of ammunition.
“As a result of the sustained and extensive investigation by our many law enforcement partners, this drug kingpin will spend the rest of his life in prison,” said U.S. Attorney Escalona. “It is difficult to imagine the harm to the community caused by this criminal enterprise. The addictions and other adverse health consequences, the economic harm, and the associated violence of drug trafficking will hopefully come to an end after these prosecutions. We are grateful and proud of the excellent work of this team of law enforcement professionals.”
“With this term of imprisonment, Williamson’s days as an international drug kingpin are over, and it is a decisive blow against the drug trafficking network. This was a team effort with our law enforcement partners, and I am proud of the work of the FBI’s North Alabama Safe Streets Task Force to bring members of this drug enterprise to justice,” said FBI SAC Johnnie Sharp.
“Great job by the investigators. These criminals were responsible for a major amount of drugs flowing through Jefferson County. These convictions are huge in our fight against illegal drugs,” said Sheriff Mark Pettway.
“First, I would like to take this opportunity to say thanks to all agencies involved in the investigation and ultimate convictions of those involved in this major drug distribution criminal enterprise. This is an example of what can be accomplished when agencies work together. It is our hope that these convictions will send a strong message to others that are committing or thinking about committing like crimes in Bessemer and surrounding areas. The Bessemer Police Department will remain committed to working with our Federal, State and local Law Enforcement partners to apprehend and convict other drug traffickers that attempt to operate in the City of Bessemer and surrounding areas,” said Bessemer Police Chief Michael Roper.
Forfeiture was obtained for two of Williamson’s high-end vehicles: a $46,000 Ford F-250 King’s Ranch and $37,000 Cadillac Escalade; over $100,000 dollars in cash; $45,000 in jewelry; and all firearms and ammunition used to facilitate the drug trafficking enterprise. Additionally, the United States proved $36,615,000 in gross proceeds against Williamson, and $4,000,700 in gross proceeds against Gregory.
This investigation is part of the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF is an independent component of the U.S. Department of Justice. Established in 1982, OCDETF is the centerpiece of the Attorney General’s strategy to combat transnational-organized-crime and to reduce the availability of illicit narcotics in the nation by using a prosecutor-led, multi-agency approach to enforcement. OCDETF leverages the resources and expertise of its partners in concentrated, coordinated, long-term enterprise investigations of transnational organized crime, money laundering, and major drug trafficking networks.
The Federal Bureau of Investigation and Internal Revenue Service investigated the case along with the Jefferson County Sheriff’s Office and Bessemer Police Department. Assistant U.S. Attorneys Jonathan S. Cross and Gregory R. Dimler prosecuted the case.
Justice Department Closes Review after the South Dakota Unified Judicial System Improves Access for People with Limited English ProficiencyRead the Press Release
Note: This press release has been translated in various languages.
WASHINGTON – The Justice Department today announced it will close a civil rights review based on actions the South Dakota Unified Judicial System (UJS) has taken to improve access to court programs and activities for people with limited English proficiency (LEP).
In October 2021, the Justice Department resolved a review of UJS opened pursuant to Title VI of the Civil Rights Act of 1964 (Title VI), which prohibits discrimination on the basis of race, color and national origin by recipients of federal financial assistance. UJS has taken a number of actions to improve access to state courts for LEP individuals in South Dakota. UJS has also formalized a court language access program, and recently, UJS issued a statewide language access plan that requires all courts to provide interpreter and translator services at no cost to LEP court users. Additionally, UJS has provided judges and court staff language access training that addresses Title VI and state law requirements. The department is closing this review due to these and other efforts by UJS.
"Language should never stand as a barrier for people seeking access to justice and access to courts in our country," said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. "We recognize the South Dakota Unified Judicial System’s improvements which have helped substantially improve access to state courts for people who are limited English proficient."
"From the bill UJS introduced last year that became state law to the recent language access plan, UJS has improved the experience of LEP court users in our state," said U.S. Attorney Alison J. Ramsdell for the District of South Dakota. "Our office is dedicated to working with state and local partners to address language access and other important civil rights issues."
This matter was conducted jointly by attorneys in the Civil Rights Division and the U.S. Attorney’s Office for the District of South Dakota. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and information about limited English proficiency and Title VI is available at www.lep.gov. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/ or with the U.S. Attorney’s Office for the District of South Dakota by completing the complaint form available at https://www.justice.gov/usao-sd/civil-rights.
Justice Department Closes Review after the South Dakota Unified Judicial System Improves Access for People with Limited English ProficiencyRead the Press Release
Note: This press release has been translated in various languages. See attachments below.
The Justice Department today announced it will close a civil rights review based on actions the South Dakota Unified Judicial System (UJS) has taken to improve access to court programs and activities for people with limited English proficiency (LEP).
In October 2021, the Justice Department resolved a review of UJS opened pursuant to Title VI of the Civil Rights Act of 1964 (Title VI), which prohibits discrimination on the basis of race, color and national origin by recipients of federal financial assistance. UJS has taken a number of actions to improve access to state courts for LEP individuals in South Dakota. UJS has also formalized a court language access program, and recently, UJS issued a statewide language access plan that requires all courts to provide interpreter and translator services at no cost to LEP court users. Additionally, UJS has provided judges and court staff language access training that addresses Title VI and state law requirements. The department is closing this review due to these and other efforts by UJS.
“Language should never stand as a barrier for people seeking access to justice and access to courts in our country,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We recognize the South Dakota Unified Judicial System’s improvements which have helped substantially improve access to state courts for people who are limited English proficient.”
“From the bill UJS introduced last year that became state law to the recent language access plan, UJS has improved the experience of LEP court users in our state,” said U.S. Attorney Alison J. Ramsdell for the District of South Dakota. “Our office is dedicated to working with state and local partners to address language access and other important civil rights issues.”
This matter was conducted jointly by attorneys in the Civil Rights Division and the U.S. Attorney’s Office for the District of South Dakota. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and information about limited English proficiency and Title VI is available at www.lep.gov. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/ or with the U.S. Attorney’s Office for the District of South Dakota by completing the complaint form available at https://www.justice.gov/usao-sd/civil-rights.
Jury Convicts Veteran of Defrauding VA for Disability BenefitsRead the Press Release
KANSAS CITY, KAN. – A federal jury convicted a Kansas veteran of wire fraud and theft of government funds in charges related to a scheme to defraud the U.S. Department of Veterans Affairs (VA) out of disability benefits.According to court documents and evidence presented at trial, Bruce Hay, 53, of Greeley, a U.S. Army veteran and former Osawatomie resident, fraudulently misrepresented and exaggerated the extent of symptoms related to a purported conversion disorder diagnosis to receive VA disability benefits to which he was not entitled. Specifically, Hay claimed he had constant jerking movements, tremors, head-bobs, could walk only with the use of a walker, and could not engage in basic activities of daily living, such as bathing, toileting, dressing, and eating. During VA examinations, he faked and exaggerated physical symptoms—displaying a significant limp, muscle spasms, head bobs, and jerking movements. Immediately before and after these examinations, he used a walker that he didn’t normally use outside of VA facilities. The VA found that Hay was 100% disabled based on those fraudulent misrepresentations.
Information collected through surveillance, video footage, photographs, testimony from community members, and other evidence showed Hay’s claims of mobility limitations as false. He, without assistance, engaged in residential construction, threw hay bales on the back of moving trucks, hunted deer, drove regularly, and hauled more than a million pounds of scrap metal.
As a result of his misrepresentations, Hay fraudulently received more than $450,000 in VA benefits. A jury found Hay guilty of six counts of wire fraud and 10 counts of theft of government funds.
Sentencing is scheduled for October 27, 2022 at 9:00 a.m. before U.S. District Judge Julie A. Robinson. Hay faces a maximum of penalty of 20 years in federal prison.
The Department of Veterans Affairs – Office of the Inspector General and the Social Security Administration - Office of the Inspector General are investigating the case.
Assistant U.S. Attorneys Ryan J. Huschka and D. Christopher Oakley are prosecuting the case.
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Jury Convicts Florida Man for Using a Minor to Produce Sexually Explicit MaterialRead the Press Release
PORTLAND, Ore.—A federal jury in Portland found a New Smyrna Beach, Florida man guilty today for video recording himself sexually abusing a child he met on social media and sharing the abuse video with others online.
Michael Wayne Lyon, 39, was found guilty of using a minor to produce a visual depiction of sexually explicit conduct.
According to court documents and trial testimony, in October 2017, Lyon began exchanging messages online with a 13-year-old child. He first claimed to be 15 years old and later “confessed” to be being 17. Lyon’s conversations with the child quickly turned sexually explicit and he convinced the child to send him naked photos of herself. After Lyon admitted to being in his 30s, the child tried to end their communication. Lyon persisted, continued contacting the child, and, in March 2018, travelled to the Pacific Northwest to meet the child.
Fearing for the safety of her family, the child agreed to meet Lyon. After traveling from Seattle to Oregon in a rented vehicle, Lyon took the child to a hotel near her residence where he sexually assaulted her. Lyon video recorded himself abusing the child and later shared the video online with several of the child’s friends and acquaintances. The child’s brother and mother captured a recording of the video before it disappeared and notified law enforcement. Local authorities interviewed the child’s parents and several other witnesses, but did not pursue the case further.
From 2018 through 2020, Lyon continued contacting the child and created multiple social media accounts to avoid the child’s repeated attempts to block him. Lyon’s messages became increasingly threatening and, later, openly violent. In October 2020, he threatened to kill the child and her family. Soon after, the child’s mother reported Lyon’s abuse and threats to the FBI.
On December 11, 2020, Lyon was charged by federal criminal complaint and an arrest was issued. Nine days later, he was arrested by local law enforcement in Hollidaysburg, Pennsylvania and turned over to the FBI. Lyon has remained in federal custody since his arrest.
On February 2, 2021, a federal grand jury in Portland returned a two-count indictment charging Lyon with cyberstalking and using a minor to produce a visual depiction of sexually explicit conduct.
Lyon faces a maximum sentence of 35 years in federal prison with a 15-year mandatory minimum sentence, a $500,000 fine and a life term of supervised release.
“In trials involving the sexual abuse of children, jurors are tasked with taking in and reviewing a horrendous set of facts. In this case, the young witness took the stand to tell the jury the details of what happened in her own words. The law enforcement community recognizes the courage it takes to go to police and to face an abuser at trial. Because of this strong young witness, the defendant was brought to justice, making our communities and children safer,” said Natalie Wight, U.S. Attorney for the District of Oregon.
“Michael Lyon displayed horrific and disturbing behavior victimizing an innocent child over and over again,” said William Brooks, Assistant Special Agent in Charge of the FBI Portland Field Office. “The FBI and our law enforcement partners work every day to shut down child predators and deliver justice for victims. While this verdict effectively ends Mr. Lyon’s ability to sexually exploit children, the damage caused by this crime can linger for a lifetime for the victim. The FBI remains constant in our commitment to provide resources for victims to assist in the healing process.”
This case was investigated by FBI Portland’s Child Exploitation Task Force (CETF) with assistance from the Hermiston and Umatilla Police Departments.
It was prosecuted by Pamela Paaso and Suzanne Miles, Assistant U.S. Attorneys for the District of Oregon.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at 1-800-CALL-FBI (1-800-225-5324) or submit a tip online at tips.fbi.gov.
The FBI CETF conducts sexual exploitation investigations, many of them undercover, in coordination with federal, state and local law enforcement agencies. CETF is committed to locating and arresting those who prey on children as well as recovering and assisting victims of sex trafficking and child exploitation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Justice Department to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Jacksonville Convicted Murderer Indicted for Firearms and Drug Trafficking OffensesRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Ronald Bernard Thomas, Jr. (45, Jacksonville) with distributing methamphetamine, possessing methamphetamine with the intent to distribute, two counts of possessing firearms in furtherance of drug trafficking crimes, and possession of firearms by a convicted felon. If convicted on all counts, Thomas faces a minimum mandatory sentence of 10 years, and up to life, in prison. The indictment also notifies Thomas that the United States intends to forfeit an FN Herstal pistol and a Glock pistol, which were used in the offenses.
According to the indictment, on July 8, 2022, Thomas, who also goes by the name “Gorilla,” sold methamphetamine and possessed a firearm in furtherance of that drug trafficking crime. On July 28, 2022, Thomas possessed methamphetamine that he intended to distribute, and possessed a firearm in furtherance of that drug trafficking crime. Furthermore, Thomas, who had been convicted of second-degree murder in 2002, possessed an FN Herstal pistol and a Glock pistol on July 28, 2022. Because Thomas is a convicted felon, he is prohibited from possessing firearms or ammunition under federal law.
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 Bureau of Alcohol, Tobacco, Firearms and Explosives and the Florida Highway Patrol. It will be prosecuted by Assistant United States Attorneys Laura Cofer Taylor and Frank Talbot.
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.
Idara ya Haki Inafunga Ukaguzi baada ya Mfumo wa Mahakama wa Dakota Kusini Kuboresha Ufikiaji kwa Watu Wenye Ustadi Kiasi wa KiingerezaRead the Press Release
Idara ya Haki leo (The Justice Department) imetangaza kuwa itafunga ukaguzi wa haki za kiraia kulingana na hatua ambazo Mfumo wa Mahakama wa Dakota Kusini (Unified Judicial System, UJS) umechukua ili kuboresha ufikiaji wa mipango na shughuli za mahakama kwa watu wenye ujuzi kiasi wa Kiingereza (limited English proficiency, LEP).
Mnamo Oktoba 2021, Idara ya Haki ilitatua ukaguzi wa UJS uliofunguliwa kwa mujibu wa Title VI ya Sheria ya Haki za Kiraia ya 1964 (Title VI of the Civil Rights Act of 1964, Title VI), ambayo inakataza ubaguzi kwa misingi ya mbari, rangi na asili ya kitaifa na wapokeaji wa usaidizi wa kifedha wa shirikisho. UJS imechukua hatua kadhaa ili kuboresha watu wa LEP kufikia mahakama za serikali huko Dakota Kusini. UJS pia imerasimisha mpango wa kufikia lugha ya mahakama, na hivi majuzi, UJS ilitoa mpango wa ufikiaji wa lugha katika jimbo lote ambayo inahitaji mahakama zote kutoa huduma za mkalimani na mfasiri bila gharama kwa watumiaji wa mahakama ya LEP. Zaidi ya hayo, UJS imewapa majaji na wafanyakazi wa mahakama ufikiaji wa mafunzo ya lugha ambayo inashughulikia Title VI na mahitaji ya sheria ya serikali. Idara inafunga ukaguzi huu kutokana na juhudi hizi na nyinginezo za UJS.
"Lugha haipaswi kuwa kama kizuizi kwa watu wanaotafuta haki na ufikiaji wa mahakama katika nchi yetu," alisema Msaidizi wa Mwanasheria Mkuu Kristen Clarke wa Kitengo cha Haki za Kiraia cha Idara ya Haki (Civil Rights Division). "Tunatambua maboresho ya Mfumo wa Mahakama wa Dakota Kusini ambao umesaidia kwa kiasi kikubwa kuboresha ufikiaji wa mahakama za serikali kwa watu ambao wana ustadi kiasi wa kiingereza."
"Kutoka kwa mswada wa UJS uliowasilishwa mwaka jana ambao ulikuwa sheria ya serikali hadi mpango wa hivi majuzi wa ufikiaji wa lugha, UJS imeboresha uzoefu wa watumiaji wa mahakama ya LEP katika jimbo letu," alisema Wakili wa Marekani Alison J. Ramsdell wa Wilaya ya Dakota Kusini. "Ofisi yetu imejitolea kufanya kazi na washirika wa serikali na wa mtaa kushughulikia ufikiaji wa lugha na maswala mengine muhimu ya haki za kiraia."
Suala hili liliendeshwa kwa pamoja na wanasheria katika Kitengo cha Haki za Kiraia na Ofisi ya Mwanasheria wa Marekani katika Wilaya ya Dakota Kusini. Maelezo ya ziada kuhusu Kitengo cha Haki za Kiraia yanapatikana kwenye tovuti yake kwa www.justice.gov/crt, na maelezo kuhusu ujuzi kiasi wa Kiingereza na Title VI yanapatikana katika www.lep.gov. Wanachama wa umma wanaweza kuripoti ukiukaji wa haki za kiraia unaowezekana katika https://civilrights.justice.gov/report/ au kwa Ofisi ya Mwanasheria wa Marekani wa Wilaya ya Dakota Kusini kwa kujaza fomu ya malalamiko inayopatikana katika https://www.justice.gov/usao-sd/civil-rights.
ID thief indicted for bank fraudRead the Press Release
Seattle – A 48-year-old Des Moines, Washington, woman was arrested August 14, 2022 after initially fleeing from federal agents when they went to arrest her August 11, 2022. Jennifer Suazo (aka Jennifer Esperanza) was indicted by a grand jury for five counts of Bank Fraud and two counts of Aggravated Identity Theft. Suazo is now detained at the Federal Detention Center at SeaTac pending trial.
According to the indictment, Suazo allegedly purchased victims’ identifying information from various sources, including the dark web, which she then used to open accounts at financial institutions in the victims’ names and to take over victims’ existing bank accounts. To carry out this fraud, Suazo created identification documents in victims’ names but with her photograph on the ID. Suazo also changed the mailing addresses for the accounts created or taken over so that she would receive all communications about the accounts and thereby hide her fraud and theft from the victims. Suazo also deposited victims’ checks into her personal bank account. Between 2019 and 2022, Suazo allegedly defrauded individual victims and financial institutions of at least $107,472.
Bank Fraud is punishable by up to 30 years in prison. Aggravated Identity Theft is punishable by a mandatory minimum two-year sentence to run consecutive to any sentence imposed on other counts of conviction.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the U.S. Postal Inspection Service with assistance from the Des Moines Police Department.
The case is being prosecuted by Special Assistant United States Attorney Jessica Ly.
suazo_indictment.pdfHope Man Sentenced to 138 months Imprisonment for Conspiracy to Distribute MethamphetamineRead the Press Release
COEUR D’ALENE – Sean Robert Wathen, 50, was sentenced in United States District Court for conspiracy to distribute methamphetamine. District Court Judge B. Lynn Winmill sentenced Wathen to 138 months in prison and ordered him to serve an additional five years of supervised release.
According to court records and evidence presented at trial, Wathen worked with Larry Junior Hillbroom and others to acquire and smuggle methamphetamine through international airports between North Idaho and the Pacific Islands of Guam and Palau. Wathen acquired pounds of methamphetamine for Hillbroom over several months in 2015. Hillbroom and others would then use several different methods to smuggle the drugs to Guam and Palau, including by placing them in shampoo containers and carrying the substance on their person. Once in Guam or Palau, Hillbroom would coordinate with local individuals to sell the methamphetamine.
Wathen was originally charged with Morgan Kenney, 36, Zachary Craig Carlson, 31, and Larry Junior Hillbroom, 37, all of Hope, Idaho. Kenney, Carlson, and Hillbroom previously pleaded guilty and were sentenced to imprisonment. Morgan Kenny was sentenced to 52 months, Zachary Craig Carlson was sentenced to 37 months, and Larry Junior Hillbroom was sentenced to 96 months.
U.S. Attorney Josh Hurwit, of the District of Idaho, made the announcement and commended the cooperative efforts of the Drug Enforcement Administration, Homeland Security Investigations, Bonner County Sheriff’s Office, Bureau of Indian Affairs, Coeur d’ Alene Police Department, Idaho State Police, U.S. Border Patrol, and the U.S. Marshals Service, which led to the charges and convictions.
“Whether illegal drugs are being pushed into Idaho or sent as far away as Palau and Guam, we will spare no effort to track down drug traffickers and hold them accountable,” said Hurwit. “I’m proud of the impressive work by the dedicated attorneys and staff of our office and our partner federal agents and local detectives, who work tirelessly together to maximize all of our combined resources to bring to justice those who traffic drugs in our communities."
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Harrisburg Man Indicted on Charges of the Unlicensed Dealing in FirearmsRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Johvaughan Young, age 23, of Harrisburg, Pennsylvania, was indicted yesterday by a federal grand jury on firearms charges.
According to United States Attorney Gerard M. Karam, the indictment alleges that Young purchased 13 handguns between June 30, 2020 and September 14, 2021, in Dauphin and Cumberland Counties, claiming that the guns were for himself when in fact they were not. The indictment also alleges that Young was engaged in the unlicensed business of dealing in firearms.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Harrisburg Bureau of Police. Assistant U.S. Attorney Jaime M. Keating 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.
This case was made possible by investigative leads generated from the ATF’s National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
The maximum penalty under federal law for this offense is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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