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26 September 2022
Chinese National Convicted of Acting Within the United States as an Unregistered Agent of the People’s Republic of ChinaRead the Press Release
CHICAGO — A federal jury in Chicago today convicted a Chinese national of acting illegally within the United States as an agent of the People’s Republic of China.
JI CHAOQUN, 31, was found guilty on one count of conspiracy to act as an agent of a foreign government, specifically the People’s Republic of China, without first notifying the Attorney General; one count of acting as an agent of the People’s Republic of China without first notifying the Attorney General; and one count of making a material false statement to the U.S. Army. The jury acquitted Ji on two counts of wire fraud.
The conviction for acting as an unregistered Chinese agent is punishable by up to ten years in federal prison, while the conspiracy and false statement convictions are each punishable by up to five years. U.S. District Judge Ronald A. Guzman did not immediately set a sentencing date.
The verdicts were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Matthew G. Olsen, Assistant Attorney General for National Security at the U.S. Department of Justice; and Ashley T. Johnson, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI. The U.S. Army 902nd Military Intelligence Group provided valuable assistance. The government is represented by Assistant U.S. Attorneys Vikas Didwania and Barry Jonas of the Northern District of Illinois, and Senior Trial Attorney Heather Schmidt of the National Security Division’s Counterintelligence and Export Control Section.
Evidence presented at the two-week trial in U.S. District Court in Chicago revealed that Ji worked at the direction of high-level intelligence officers in the Jiangsu Province Ministry of State Security, a provincial department of the Ministry of State Security for the People’s Republic of China. Ji, a Chinese citizen residing in Chicago, was tasked by Xu Yanjun, a Deputy Division Director within the Ministry of State Security, with providing an intelligence officer with biographical information on certain individuals for possible recruitment by the JSSD. The individuals included Chinese nationals who were working as engineers and scientists in the United States, some of whom worked for U.S. defense contractors. This tasking was part of an effort by the Jiangsu provincial department to obtain access to advanced aerospace and satellite technologies being developed by companies within the U.S. Xu was convicted last year in the Southern District of Ohio of conspiracy and attempting to commit economic espionage and theft of trade secrets.
In 2016, Ji enlisted in the U.S. Army Reserves under the Military Accessions Vital to the National Interest program, which authorized the U.S. Armed Forces to recruit certain legal aliens whose skills are considered vital to the national interest. In his application to participate in the MAVNI program, Ji falsely stated that he had not had contact with a foreign government within the past seven years. In a subsequent interview with a U.S. Army officer, Ji again failed to disclose his relationship and contacts with a foreign intelligence officer.
California Woman Indicted for Embezzling More Than $1 Million from EmployerRead the Press Release
MINNEAPOLIS – A federal grand jury returned an indictment against a California woman for wire fraud, identity theft, and filing false tax returns after embezzling more than $1 million from her employer, announced U.S. Attorney Andrew M. Luger.
According to court documents, Mai Houa Xiong, 47, of Fresno, California, was employed as a financial manager for a Minneapolis-based property management company that provided financial services to homeowners’ associations throughout the Twin Cities metro area. Xiong’s duties included bookkeeping, and as manager she had nearly unfettered access to the victim homeowner’s associations’ financials, bank accounts, vendor and contractor payments, and bookkeeping systems. Between February 2015 and February 2022, Xiong devised and executed a fraud scheme to embezzle funds directly from the accounts to which she had access. These funds were HOA fees collected from residents, intended to pay for maintenance, construction, and other costs incurred by the victim associations.
As part of the scheme, Xiong repeatedly accessed the HOAs’ bank accounts and conducted electronic transfers of funds directly into her personal bank accounts. Xiong disguised these transfers by mis-labeling them to make it appear as if they were legitimate HOA expenses. Xiong also used her authority as a signatory to make cash withdrawals directly from the HOAs’ accounts, including making withdrawals after she was fired from her position in July 2021. After her termination, Xiong began collecting Unemployment Insurance (UI) funds. However, even after Xiong found new employment, she continued to wrongfully obtain public UI benefits.
Xiong is charged with five counts of wire fraud, one count of aggravated identity theft, four counts of making and subscribing a false return, and one count of failure to file an individual return. She was arrested on September 22, 2022, and made her initial appearance before Magistrate Judge Barbara A. McAuliffe in U.S. District Court in the Eastern District of California.
This case is the result of an investigation conducted by the IRS – Criminal Investigations, the Minnesota Bureau of Criminal Apprehension, and the Minneapolis Police Department.
Assistant U.S. Attorney Allison K. Ethen is prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Brooklyn Man Sentenced for Distributing Cocaine BaseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on September 23, 2022, Tyrish Stevenson, 48, of Brooklyn, New York, was sentenced by U.S. District Judge Christina Reiss to 37 months’ imprisonment and a 3-year term of supervised release for distributing cocaine base on September 9, 2021.
According to court records, throughout August and September 2021, investigators with the Burlington Police Department, with the assistance of members of the Drug Enforcement Administration, Burlington Resident Office, conducted multiple controlled purchases of narcotics from traffickers who were working together in Burlington, Vermont.
As part of this investigation, on September 9, 2021, a confidential informant purchased cocaine base from Stevenson in downtown Burlington. On September 23, 2021, investigators apprehended multiple traffickers involved in drug distribution, including Stevenson, who admitted to possessing with intent to distribute over 16 grams of cocaine base found nearby at the time of Stevenson’s arrest. That day, investigators also executed a search warrant at a Church Street residence in downtown Burlington. Within the Church Street residence, investigators recovered over 40 grams of cocaine base and over 18 grams of fentanyl, which Stevenson, with others, admitted to possessing with intent to distribute. Investigators also recovered a Mossberg .410 pump shotgun and a Savage Arms .22 Long Rifle from the Church Street residence.
United States Attorney Nikolas P. Kerest commended the efforts of the Burlington Police Department as well as the Drug Enforcement Administration, Burlington Resident Office, in the investigation and prosecution of Stevenson.
This case was prosecuted by Assistant U.S. Attorney Andrew Gilman. Stevenson was represented by Assistant Federal Public Defender Steven Barth, Esq.
Biogen Inc. Agrees to Pay $900 Million to Settle False Claims Act Allegations Related to Improper Physician PaymentsRead the Press Release
BOSTON – Pharmaceutical company Biogen Inc. (Biogen), based in Cambridge, Massachusetts, has agreed to pay $900 million to resolve allegations that it violated the False Claims Act by causing the submission of false claims to Medicare and Medicaid by paying kickbacks to physicians to induce them to prescribe Biogen drugs.
The settlement announced today resolves a lawsuit filed and litigated by former Biogen employee Michael Bawduniak against Biogen under the qui tam or whistleblower provisions of the False Claims Act, which permit a private party (known as a relator) to file a lawsuit on behalf of the United States and receive a portion of any recovery. The United States may intervene in the action or, as in this case, the relator may proceed with the lawsuit.
In his lawsuit filed in the District of Massachusetts, Bawduniak alleged that Biogen paid kickbacks to physicians to induce them to prescribe the company’s multiple sclerosis drugs. According to the relator’s complaint, from Jan. 1, 2009, through March 18, 2014, Biogen held programs through which it offered and paid remuneration, including speaker honoraria, speaker training fees, consulting fees and meals, to health care professionals who spoke at or attended Biogen’s speaker programs, speaker training meetings or consultant programs to induce them to prescribe the drugs Avonex, Tysabri and Tecfidera in violation of the Anti-Kickback Statute.
“We thank Mr. Bawduniak for uncovering this behavior and bringing it to light,” said United States Attorney Rachael S. Rollins. “This matter is an important example of the vital role that whistleblowers and their attorneys can play in protecting our nation’s public healthcare programs.”
“Bawduniak doggedly pursued this matter on behalf of the United States for over seven years,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “The settlement announced today underscores the critical role that whistleblowers and their attorneys play in utilizing the False Claims Act to combat fraud affecting federal healthcare programs.”
Under the terms of the settlement, Biogen will pay $843,805,187 to the United States and $56,194,813 to 15 states. The United States will pay Bawduniak a share of the federal recovery.
The case was monitored by the Department of Justice’s Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the District of Massachusetts.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Biogen Inc. Agrees to Pay $900 Million to Settle Allegations Related to Improper Physician PaymentsRead the Press Release
Pharmaceutical company Biogen Inc. (Biogen), based in Cambridge, Massachusetts, has agreed to pay $900 million to resolve allegations that it caused the submission of false claims to Medicare and Medicaid by paying kickbacks to physicians to induce them to prescribe Biogen drugs.
The settlement announced today resolves a lawsuit filed and litigated by former Biogen employee Michael Bawduniak against Biogen under the qui tam or whistleblower provisions of the federal False Claims Act, which permit a private party (known as a relator) to file a lawsuit on behalf of the United States and receive a portion of any recovery. The United States may intervene in the action or, as in this case, the relator may proceed with the lawsuit.
In his lawsuit filed in the District of Massachusetts, Bawduniak alleged that Biogen paid kickbacks to physicians to induce them to prescribe the company’s multiple sclerosis drugs. According to the relator’s complaint, from Jan. 1, 2009, through March 18, 2014, Biogen offered and paid remuneration, including in the form of speaker honoraria, speaker training fees, consulting fees and meals, to health care professionals who spoke at or attended Biogen’s speaker programs, speaker training meetings or consultant programs to induce them to prescribe the drugs Avonex, Tysabri and Tecfidera, in violation of the Anti-Kickback Statute.
“The relator diligently pursued this matter on behalf of the United States for over seven years,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The settlement announced today underscores the critical role that whistleblowers play in complementing the United States’ use of the False Claims Act to combat fraud affecting federal health care programs.”
“We thank Mr. Bawduniak for uncovering this behavior and bringing it to light,” said U.S. Attorney Rachael S. Rollins for the District of Massachusetts. “This matter is an important example of the vital role that whistleblowers and their attorneys can play in protecting our nation’s public health care programs.”
Under the terms of the settlement, Biogen will pay $843,805,187 to the United States and $56,194,813 to 15 states. Bawduniak will receive approximately 29.6% of the federal proceeds from the settlement.
The case is captioned United States ex rel. Bawduniak v. Biogen Idec, Inc., No. 12-cv-10601-IT (D. Mass.), and was monitored by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the District of Massachusetts.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Baltimore man admits to fentanyl chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Steven Bernard Parker, Jr., of Baltimore, Maryland, has admitted to selling a large amount of fentanyl, United States Attorney William Ihlenfeld announced.
Parker, also known as “Mac Man,” 35, pleaded guilty today to one count of “Distribution of Forty Grams or More of Fentanyl.” Parker admitted to selling 40 grams or more of fentanyl in June 2021 in Berkeley County.
Parker is facing at least five and up to 40 years of incarceration and a fine of up to $5,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative; the Bureau of Alcohol, Tobacco, Firearms & Explosives; and the Martinsburg Police Department investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Allport Woman Pleads Guilty to Conspiring to Distribute MethamphetamineRead the Press Release
JOHNSTOWN, Pa. – A former resident of Allport, PA pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney Cindy K. Chung announced today.
Tammie Brolin, age 54, pleaded guilty to Count Two of the Superseding Indictment before Senior United States District Judge Kim R. Gibson.
In connection with the guilty plea, from July 2019 to June 2020, Brolin did conspire to distribute and possess with the intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine.
Judge Gibson scheduled sentencing for January 31, 2023. The law provides for a minimum sentence of 10 years in prison and maximum sentence of life in prison, a fine of $10,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pennsylvania State Police conducted the investigation that led to the prosecution of Brolin. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, Homeland Security Investigations, Pennsylvania Office of the Attorney General, Clearfield County District Attorney’s Office, Erie County District Attorney’s Office, Millcreek Police Department, Erie Bureau of Police, and other local law enforcement agencies.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
24 September 2022
Former Caldwell Police Department Lieutenant Convicted of Falsifying Records, Witness Tampering, and Destruction of RecordsRead the Press Release
BOISE – A federal jury convicted a former Caldwell Police Department Lieutenant of falsifying a record or document in a federal investigation, witness tampering by harassment, and destroying a record to impair its use in an official proceeding. The jury found Hoadley not guilty of willful deprivation of rights under color of law.
Joseph Alan Hoadley, 42, of Caldwell, was convicted after a five-day jury trial in U.S. District Court before the Honorable Scott W. Skavdahl, U.S. District Court Judge for the District of Wyoming. He faces up to 20 years imprisonment and a $250,000 fine on each of the three charges. Sentencing is scheduled for December of 2022.
During the trial, the jury heard evidence that Hoadley, while employed as a Lieutenant with the Caldwell Police Department, used force against B.H. in Caldwell in 2017 while he was detained and handcuffed. Hoadley falsified a subsequent police report detailing his actions during the incident. In 2021, knowing that he was the target of an FBI investigation, Hoadley harassed and intimidated C.H. with the intent to dissuade him from cooperating with the FBI investigation. In April of 2022, after being indicted by a federal grand jury, Hoadley destroyed data on his city‑issued laptop and cellphone one day before turning them over to the acting Caldwell Police Chief, who had placed Hoadley on administrative leave because of the charges.
“The safety of our communities and our ability to uphold the rule of law depend on the honesty and integrity of law enforcement officers,” said U.S. Attorney Josh Hurwit. “And so we will never waiver in prosecuting violations of the law, even when a police officer is the offender. I am proud of our prosecutors and staff for their work on this difficult case. I also commend the FBI for its thorough and fair investigation. Finally, I want to recognize the current and former Caldwell Police officers who testified under extremely difficult circumstances.”
A press conference will be held at the U.S. Attorney’s Office in Boise at noon on Monday, September 26, 2022.
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23 September 2022
Upshur County woman admits to fentanyl chargesRead the Press Release
ELKINS, WEST VIRGINIA – Michaela Dawn Gregory, of Buckhannon, West Virginia, has admitted to selling fentanyl, United States Attorney William Ihlenfeld announced.
Gregory, 26, pleaded guilty today to one count of “Distribution of Fentanyl” and two counts of “Possession with Intent to Distribute Fentanyl.” Gregory admitted to having and distributing fentanyl in November 2020 in Upshur County.
Gregory faces up to 20 years of incarceration and a fine of up to $1,000,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Mountain Lakes Drug Task Force and the Buckhannon Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
United States Attorney's Office Honors Law Enforcement Personnel for Exceptional ServiceRead the Press Release
BOSTON – United States Attorney Rachael S. Rollins announces the recipients of the 2022 Law Enforcement Awards. Over 60 federal, state and local law enforcement personnel and community leaders who contributed to the success of federal cases during the 2021 calendar year are being recognized for their commitment to pursuing justice and public safety. Each year the U.S. Attorney in Massachusetts holds a formal ceremony to honor award recipients, which will take place in October 2022 at the John Joseph Moakley Courthouse.
These awards recognize federal agents, state troopers, local officers, investigators and community leaders for exceptional leadership, outstanding collaboration, investigative achievement and excellence, victim assistance and excellence in community engagement. Assistant U.S. Attorneys who prosecuted the cases nominated the honorees. In one instance, U.S. Attorney Rollins herself nominated the recipient due to their outstanding and unwavering commitment to the City of Boston – Former Acting Boston Police Commissioner Gregory Long.
“The typical workday does not exist for law enforcement professionals, they work around the clock. Day in and day out, law enforcement professionals work tirelessly in the pursuit of justice, often putting their lives on the line to protect the people of our Commonwealth against criminal operators,” said U.S. Attorney Rollins. “It is directly because of these dogged, relentless efforts that my office can hold perpetrators accountable through successful investigations and prosecutions. The Annual Law Enforcement Awards are an important opportunity to recognize and honor the professionals whose work has been instrumental to our cases and to keeping our communities safe.”
The category of Investigative Achievement Award is reserved for those who substantially contributed to the mission of the U.S. Attorney’s Office and the Department of Justice. The following cases and agencies will be honored:
U.S. v. Bruce Brown
Agency/Organization of Recipient(s): Federal Bureau of Investigation; Newton Police Department
U.S. v. Hubley
Agency/Organization of Recipient(s): IRS Criminal Investigation
U.S. v. Jasiel Correia
Agency/Organization of Recipient(s): Federal Bureau of Investigation; U.S. Department of Housing and Urban Development, Office of the Inspector General; U.S. Internal Revenue Service, Criminal Investigation; Massachusetts Office of Inspector General
U.S. v. John Casey
Agency/Organization of Recipient(s): Marshfield Police Department; Burlington Police Department
U.S. v. Leslie Caraceni et al., and U.S. v. Meghan Giacomuzzi
Agency/Organization of Recipient(s): Federal Bureau of Investigation; Homeland Security Investigations
U.S. v. Stefanie Hirsch et al.
Agency/Organization of Recipient(s): Federal Bureau of Investigation; U.S. Health and Human Services, Office of Inspector General
U.S. v. Sunil Akula
Agency/Organization of Recipient(s): Federal Bureau of Investigation
The category of Investigative Excellence recognizes an individual whose actions led directly to the arrest of a dangerous subject or to the exposure of a significant criminal conspiracy. The following case and agency will be honored:
U.S. v. Anthony Deordio and U.S. v. Jonathan Monson
Agency/Organization of Recipient(s): Federal Bureau of Investigation
The category of Excellence in Community Outreach and Prevention Award recognizes individuals, or a team of individuals, who have shown outstanding commitment and/or innovation in the area of law enforcement and community outreach to include training, relationship building, prevention programs and other similar activities. The following programs and agencies will be honored:
Civil Rights Opioid Work
Agency/Organization of Recipient(s): New England Americans with Disabilities Act Center, a project of the Institute for Human Centered Design in Boston
Project Safe Childhood Cape and Islands Education Series
Agency/Organization of Recipient(s): Federal Bureau of Investigation; Barnstable Police Department; Chatham Police Department, Orleans Police Department; Cape & Islands District Attorney’s Office
Project Safe Childhood in the Berkshires Education Series
Agency/Organization of Recipient(s): Department of Homeland Security, Federal Protective Service; North Adams Police Department; Berkshire District Attorney’s Office; North Adams Public Schools
The category of Exceptional Leadership recognizes an individual who has shown exceptional leadership of an organization or department in the face of adversity or significant challenges. The following agency will be honored:
Exceptional Leadership in the City of Boston
Agency/Organization of Recipient(s): Boston Police Department
The category of Outstanding Collaborative Award recognizes investigators from a multi-agency collaboration whose exceptional efforts to overcome significant challenges led to a successful conclusion. Recipients in one case also received the Victim Service Award. The following cases and agencies will be honored:
U.S. v. Anthony Howard
Agency/Organization of Recipient(s): Federal Bureau of Investigation; Boston Police Department
U.S. v. Derek Sheehan
Agency/Organization of Recipient(s): Federal Bureau of Investigation; Norwell Police Department; Massachusetts State Police
*Victim Service Award
U.S. v. Samuel Rodriguez, et al.
Agency/Organization of Recipient: Massachusetts State Police; Fairhaven Police Department; United States Drug Enforcement Administration; United States Postal Inspection Service
Two men sentenced to long prison terms for brutal murder on federal land near Spanaway, WashingtonRead the Press Release
Tacoma – A 53-year-old Tacoma man was sentenced today in U.S. District Court to 26 years in prison for second degree murder and being a felon in possession of a firearm, announced U.S. Attorney Nick Brown. Bobbie Anson Pease pleaded guilty in July 2021 to the 2018 murder of a 34-year-old woman on federal land, part of Joint Base Lewis-McChord (JBLM). Jeremy Jay Warren, 34, of Forks, Washington, was sentenced today to nearly 22 years in prison for his role in the murder. At the sentencing hearing for Pease, U.S. District Judge Robert J. Bryan called the crime “a tragic event” saying “What happened here is beyond the realm of normal human activity.”
“These two men violently took the life of a young woman – a single parent – who had trusted them to provide a ride and assistance,” said U.S. Attorney Nick Brown. “Instead, they viciously beat her with a metal baseball bat and shot her in the head. In order to protect our community from this wanton and senseless depravity, these lengthy sentences are appropriate.”
According to records in the case, Pease was temporarily sharing a house with the victim, her daughter, co-defendant Jeremy Warren and others in August and September 2018. On September 4, 2018, the victim asked Pease and Warren for a ride to a Spanaway convenience store. The men had a pistol and an aluminum baseball bat in the car. After going to the store and allowing the victim to purchase groceries, Pease drove the victim and Warren to a wooded area nearby, claiming he wanted to do some target shooting. At the wooded area, which was an undeveloped plot of federal land outside the fenced boundaries of JBLM, the men claim they confronted the victim about items they accused her of stealing – a drug pipe and pocket-knife – although the investigation did not confirm the victim had actually taken these items. The men beat the victim with the bat causing significant head injuries and broken bones. Then Pease took the pistol and fired three shots into the victim’s head, killing her instantly. The men left the body in the wooded area and disposed of the bat and the gun at various locations in the Tacoma and Spanaway area. The gun was ultimately recovered from the Puyallup River. The two made calls to the police attempting to mislead them during the investigation by claiming the victim has left the convenience store with someone else and moved out of state. On September 13, 2018, the victim’s body was discovered by railroad workers. Pease and Warren were arrested in late October 2018 after they had relocated to Forks, Washington, to avoid authorities and following an extensive manhunt.
Describing the victim as someone with a “big heart, a loud laugh and was exceptionally trusting,” Assistant United States Attorney Grady Leupold said the men’s “cruelty and violence put a hole in the hearts” of all the victim’s family members.
The victim’s parents and brothers spoke to the court of the pain of loss they feel. The victim’s father asking defendant Pease “Can you give me an honest answer why? That’s all I want to know. Why? – you took a valuable part of me.”
Pease has a lengthy criminal history dating back to 1991 in Washington State including: Assault and attempting to elude (Pierce County 2013); Escape (Jefferson County 2003); robbery with a deadly weapon enhancement (Pierce County 2003); witness tampering (Thurston County 2003); theft and attempting to elude (Pierce County 1999); car theft (Thurston County 1999); burglary (Pierce County 1992) and possession of stolen property (Pierce County 1991). The convictions mean Pease could not legally possess a firearm.
Warren was sentenced to 262 months in prison and 5 years of supervised release to follow the prison term.
“This case is truly horrific and demonstrates the subjects’ utter lack of regard for human life,” said Richard A. Collodi, Special Agent in Charge of the FBI Seattle Field Office. “So many elements of this case are senseless and tragic: luring the victim into the woods under the pretense of friendship, attacking a defenseless person with multiple types of weapons, and then covering up the murder and fleeing. Addressing violent crime remains a top priority of the FBI.”
The investigation was led by the FBI with assistance from Army CID, the Pierce County Sheriff’s Office, the Tacoma Police Department, and the Forks Police Department. The case was prosecuted by Assistant United States Attorneys Grady J. Leupold and Ye-Ting Woo.
Two Men Plead Guilty in $30 Million Foreign Exchange Fraud SchemeRead the Press Release
A Massachusetts man and a Florida man pleaded guilty today for their roles in perpetrating a foreign exchange trading scheme to steal $30 million from their investor victims.
According to court documents, Patrick Gallagher, 44, of Middleborough, Massachusetts, and Michael Dion, 49, of Orlando, Florida, devised a scheme in which they would solicit victims to invest in their foreign exchange company, Global Forex Management, by promising them large returns based on previous trading results that they had fabricated. They told the victims that their funds would be traded using an online trading platform provided by a co-conspirator’s company, IB Capital. Instead, Gallagher and Dion were working with other co-conspirators in the Netherlands to steal the victim investors’ money. In May 2012, Gallagher and Dion executed their scheme by intentionally creating losing trades for the investors and effectively stole $30 million from their victims. After fabricating the massive trading loss, Gallagher and Dion routed the stolen money through shell companies they had set up all over the world.
Gallagher and Dion each pleaded guilty to one count of conspiracy to commit securities fraud, and each face a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and Inspector in Charge Eric Shen of the U.S. Postal Inspection Service’s (USPIS) Criminal Investigations Group made the announcement.
The USPIS is investigating the case.
Trial Attorneys Brittain Shaw, Vasanth Sridharan, and Tian Huang of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section uses the Victim Notification System (VNS) to provide victims with case information and updates related to this case. Individuals or entities who believe they may be a victim in this case should contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing [email protected].
Two Members of Fentanyl Trafficking Ring Indicted for Conspiracy Resulting in the Death of a Toddler and Non-Fatal Overdose of an InfantRead the Press Release
EVANSVILLE – A federal grand jury in Evansville, Indiana, returned a superseding indictment charging Arcinial Montreal Watt, 34, and Jazmynn Alaina Brown, 24, both of Evansville, with federal crimes including conspiracy to distribute fentanyl resulting in death, conspiracy to distribute fentanyl resulting in serious bodily injury, and possession with the intent to distribute fentanyl.
According to court documents, during the conspiracy, Watt obtained significant quantities of fentanyl-laced counterfeit pills from an unknown source of supply and stored those pills inside a bedroom he shared with his girlfriend, Brown, at her residence on East Sycamore Street in Evansville. Watt further supplied Brown with fentanyl-laced counterfeit pills that Brown would sell to her own customers.
On October 26, 2021, two children living at that residence – a three-year-old girl and a one-year-old girl – accessed a quantity of fentanyl-laced counterfeit pills stored by Brown inside the bedroom she shared with Watt. Both children subsequently suffered a fentanyl overdose. The three-year-old girl was pronounced dead the following morning, and the one-year-old girl was taken to the hospital, where she was placed on a NARCAN drip. The one-year-old girl survived.
During the investigation, investigators seized over 5,000 fentanyl-laced counterfeit pills, over $30,000 in United States currency, and a firearm. According to the Drug Enforcement Administration, as little as 2 milligrams of fentanyl can be fatal, depending on a person’s body size, tolerance, and past usage. One kilogram of fentanyl has the potential to kill 500,000 people.
“This did not need to happen. A toddler is dead, and a baby was hospitalized because of the greed and utter disregard for human life displayed by those who traffic deadly drugs in our community,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “The serious charges announced today demonstrate that federal law enforcement and our local partners are determined to hold criminals accountable for pushing poison on our streets.”
“Alleged drug traffickers like Mr. Watt and Ms. Brown who are knowingly dealing poisonous and lethal fentanyl must be held accountable for their actions, especially when they show careless disregard for possessing and storing fentanyl pills that resulted in the death of an infant child and the overdose of another child who required life-saving medical intervention to survive the overdose,” said Michael Gannon, DEA Assistant Special Agent in Charge. “DEA remains committed to working hand in hand with our state, local and federal partners to keep our communities safe. DEA commends the outstanding work by the Evansville Police Department, the Evansville Vanderburgh County Drug Task Force, the Vanderburgh County Prosecutor’s Office, and the United States Attorney’s Office, Southern District of Indiana.”
“I’d like to express how grateful we are to have federal partners that share an objective of ridding our community and our neighborhoods of these very terrible drugs,” said Billy Bolin, Chief of Evansville Police Department. “In this particular incident a child, is no longer with us because of the choices made by adults. Our hearts go out to the loved ones that are left picking up the pieces of this destruction. The message we have is clear, if you choose to deal harmful drugs in our communities and neighborhoods, we will act and bring you to justice. I want to thank the men and women of the Evansville Police Department that responded to this run, The JTF Detectives that spent countless hours on this investigation, and our federal partners for seeing to it that these individuals face the consequences of their actions.”
If convicted of conspiracy to distribute fentanyl resulting in death or serious bodily injury, Watt and Brown face 20 years to life in prison, a fine of up to $10,000,000, and at least 5 years’ supervised release. If convicted of possession with the intent to distribute 400 grams or more of fentanyl, Watt faces 10 years to life in prison, a fine of up to $10,000,000, and at least 5 years’ supervised release. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case was the result of an investigation by the Evansville Police Department and the Drug Enforcement Administration. The Vanderburgh County Prosecutor’s Office Cyber Crime Task Force also provided invaluable assistance.
U.S. Attorney Myers thanked Assistant United States Attorney Kristian R. Mukoski, who is prosecuting this case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Maryland Men Charged with Trafficking Thousands of Fentanyl Pills into ConnecticutRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that a federal grand jury in Hartford has returned an indictment yesterday charging OSCAR FLORES, 34, of Mount Rainier, Maryland, and SEVERO ALELAR, 25, of Hyattsville, Maryland, with fentanyl trafficking offenses.
As alleged in court documents and statements made in court, on September 8, 2022, Flores, Alelar and others arrived in an SUV at a meeting location in Wethersfield to sell approximately 15,000 fentanyl pills to an undercover DEA agent. After Flores showed the undercover agent a sample on the fentanyl pills, the agent indicated that he needed to travel to another location to pick up the money. Flores, Alelar and the others followed the undercover agent’s vehicle as they traveled south into Rocky Hill. When a Rocky Hill police officer attempted to stop the SUV for a traffic violation, the SUV sped and ran over a roadside curb onto a grass area along the side of the road where law enforcement vehicles boxed it in. Investigators searched the SUV and found numerous Nerds candy boxes and Skittles candy bags containing thousands of fentanyl pills.
“Trafficking fentanyl is already and undoubtedly a serious offense, but one doesn’t have to stretch their imagination too far to consider how disguising fentanyl pills in children’s candy packaging, as we allege, can result in even more tragic consequences in the community,” said U.S. Attorney Avery. “I thank the DEA Task Force members for their work in this investigation and for taking this substantial quantity of fentanyl off the street.”
“Fentanyl is causing deaths in record numbers and DEA’s top priority is to aggressively pursue anyone who distributes this poison in order to profit and destroy people’s lives,” said DEA Special Agent in Charge Boyle. “Illegal drug distribution ravages the very foundations of our families and communities so every time we take pills containing fentanyl off the streets, lives are undoubtedly saved. This investigation demonstrates the strength of collaborative local, county and state law enforcement efforts in Connecticut and our strong partnership with the U.S. Attorney’s Offices.”
The indictment charges Flores and Alelar with conspiracy to distribute, and to possess with intent to distribute, 40 grams or more of fentanyl, and with possession with intent to distribute 40 grams or more of fentanyl. Each charge carries a mandatory minimum term of imprisonment of five years a maximum term of imprisonment of 40 years.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Flores and Alelar have been detained since September 8, 2022.
This investigation is being conducted by the DEA’s Hartford Task Force, which includes personnel from the DEA Hartford Resident Office, the Connecticut State Police, and the Bristol, Hartford, East Hartford, Enfield, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. The case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Two Drug Traffickers Receive Federal Prison Sentences Totaling over 30 YearsRead the Press Release
SHREVEPORT, La. – Two defendants have been sentenced for their involvement in the trafficking of methamphetamine in the Shreveport/Bossier City area, announced United States Attorney Brandon B. Brown. United States District Judge Donald E. Walter sentenced both defendants as follows:
Justin Lamar Shealey, 40, of Bossier City, Louisiana, was sentenced to 210 months (17 years, 6 months) in prison, followed by 5 years of supervised release, on drug trafficking charges. His co-defendant, John Chaz Bernos, 39, was previously sentenced on August 26, 2022 to spend 162 months (13 years, 6 months) in prison, followed by 5 years of supervised release.
Shealey and Bernos each pleaded guilty to conspiracy to possess with intent to distribute methamphetamine. On February 24, 2021, Louisiana State Police troopers conducted a traffic stop of Bernos. At the time of the stop, Bernos had an active arrest warrant outstanding. Troopers searched the vehicle Bernos was driving and discovered methamphetamine, marijuana, testosterone, and other assorted prescription pills. Bernos was arrested and later admitted to law enforcement officers with the U.S. Drug Enforcement Administration (DEA) that he purchased the methamphetamine and had intended to distribute to others. The methamphetamine was sent to the DEA laboratory for analysis and determined to be 61.8 grams of pure methamphetamine.
Further investigation led DEA agents to Shealey after learning he had sold methamphetamine out of his vehicle. Agents found Shealey at a local casino and received consent to search his vehicle. Inside, they found that he had over 600 grams of methamphetamine in the vehicle. Shealey later admitted to agents that he had been purchasing the methamphetamine in the Dallas area and would bring it back to the Shreveport/Bossier City area for distribution.
This case was investigated by the DEA and Louisiana State Police and prosecuted by Assistant U.S. Attorney Robert F. Moody.
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Three Sentenced in Violent Robbery AttemptRead the Press Release
CHARLOTTESVILLE, Va. – Three Charlottesville men, who admitted to the attempted armed robbery of an Albemarle County man, were sentenced Tuesday in federal court.
Tyreek Saquan Ragland, 23, the leader of the group who organized the robbery plan, pled guilty to one count of attempted Hobbs Act robbery and was sentenced to 77 months in federal prison.
Madison Wonne Zelee, 26, and Tyrel Anthony Dowell, 23, also pled guilty to one count each of Hobbs Act robbery as well as possession of a firearm by a convicted felon. Zelee was sentenced to 60 months in prison while Dowell received a sentence of 52 months.
According to court documents, Ragland, Zelee, and Dowell targeted the victim because they believed he would be in possession of a large quantity of marijuana and cash at his home in Albemarle County.
On the afternoon of September 30, 2021, Zelee knocked on the intended victim’s front door asking about a lost dog. Before opening the door, the intended victim saw Dowell emerging from the woods nearby wearing a ski mask. The intended victim refused to open the door, and Zelee and Dowell then fled the scene in a getaway vehicle driven by Ragland.
Shortly after this confrontation, the intended victim contacted his father about the incident, and they decided to go in search of the vehicle in which Ragland, Zelee, and Dowell had fled.
While the intended victim and his father were out searching for the getaway vehicle, a witness, who had remained at the intended victim’s residence, called them to report that a pizza delivery person was at the house trying to deliver a pizza. Aware that no pizza order had been placed, the intended victim instructed the witness not to open the door.
After immediately returning home, the intended victim observed a vehicle parked along the side of the road near his home that matched the getaway vehicle seen earlier in the day. Sensing danger, the intended victim and his father decided to leave again, but as they did, Zelee and Dowell came out of the nearby woods and began shooting at them, striking their vehicle. After the gunfire, Zelee and Dowell rejoined Ragland in the getaway vehicle and fled the scene for a second time.
United States Attorney Christopher R. Kavanaugh and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Division made the announcement.
The Federal Bureau of Investigation and the Albemarle County Police Department investigated the case.
Assistant U.S. Attorney Ronald M. Huber prosecuted the case.
Three Georgia Men Sentenced for Conspiring to Distribute Meth at Macon State PrisonRead the Press Release
MACON, Ga. –Three co-conspirators guilty of attempting to distribute methamphetamine intended for Macon State Prison were sentenced to prison for their crimes today.
Raquan Emahl Gray, 26, of Conley, Georgia, was sentenced to serve 240 months to be followed by three years of supervised release after he was found guilty of one count of conspiracy to possess with intent to distribute methamphetamine by a federal jury on May 24. Daquann Marquez Epps, 26, of Columbus, Georgia, was sentenced to serve 75 months to be followed by three years of supervised release after he previously pleaded guilty to one count of conspiracy to possess with intent to distribute a controlled substance. Demarea Demond Carey, 28, of Fairburn, Georgia, was sentenced to serve 75 months to be followed by three years of supervised release after he previously pleaded guilty to conspiracy to possess with intent to distribute methamphetamine. U.S. District Judge C. Ashley Royal handed down the sentences. There is no parole in the federal system.
“Those who facilitate drug trafficking into our prisons – putting both inmates and staff at risk – will be held accountable at the federal level,” said U.S. Attorney Peter D. Leary. “Preventing contraband from entering our prison system remains a high priority for our office and our law enforcement partners.”
“These defendants attempted to get drugs into a prison, but instead have landed themselves there,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “This investigation was a success because of the spirited efforts of all law enforcement agencies involved.”
“Illegal drugs have no place in Georgia, including in our prison system. They are dangerous and threaten the safety of all populations. We will continue to work diligently along with our local and federal partners to investigate and dismantle drug trafficking organizations no matter where they are,” said GBI Director Michael Register.
According to court documents and evidence presented at Gray’s trial, Gray and Epps were the passengers of a vehicle driven by Carey that was pulled over by a Crawford County Sherriff’s Office deputy in Roberta, Georgia, for traveling 25 mph over the posted speed limit on Sept. 2, 2019. A strong odor of marijuana was emanating from the car and Carey admitted he had smoked marijuana. A probable cause search of the vehicle found various packages wrapped in different colored duct tape and some were numbered. Some packages were softball shaped and wrapped in electrical tape. The packages contained 494 grams of methamphetamine, 150 pills which tested as methamphetamine, 50 cell phones, two large bags of cell phone chargers, approximately three pounds of marijuana, 19 bags of tobacco, a large bag of cigars and 19 lighters. Carey’s GPS destination on his cell phone was set for Macon State Prison. Gray has an extensive criminal history including felony convictions for robbery, burglary and theft by taking.
The DEA, GBI, Crawford County Sheriff’s Office, the Peach County Sheriff’s Office and the Georgia Department of Corrections investigated the case.
Assistant U.S. Attorneys Will Keyes and Leah McEwen prosecuted the case.
Taunton Man Sentenced for Being a Felon in Possession of Firearm and AmmunitionRead the Press Release
BOSTON – A Taunton man was sentenced today in federal court in Boston for illegally possessing a firearm and ammunition.
Jerrod Lee, 30, was sentenced by U.S. District Court Judge Indira Talwani to 37 months in prison and three years of supervised release. Lee was indicted in October 2020 with co-defendant Ronney Fullard. In December 2021, Lee pleaded guilty to one count of being a felon in possession of a firearm and ammunition.
In August 2020, during the execution of an arrest warrant in connection with pending state firearms charges, law enforcement found Lee and Fullard each in possession of a loaded firearm at Lee’s residence. Specifically, Lee possessed a Ruger .45 caliber pistol, Model P90 loaded with five rounds of .45 caliber ammunition and Fullard possessed a Taurus PT 709 9mm pistol loaded with six rounds of 9mm ammunition. Due to prior felony convictions, federal law prohibits both defendants from possessing firearms and ammunition.
On March 10, 2022, Fullard was sentenced to time served (approximately 14 months) and three years of supervised release after previously pleading guilty to the same charge.
United States Attorney Rachael S. Rollins; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Boston Police Commissioner Michael Cox; and Taunton Police Chief Edward James Walsh made the announcement today. Assistant U.S. Attorney Sarah Hoefle of Rollins’ Organized Crime & Gang Unit prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Statement from Assistant Attorney General Jonathan Kanter on the District Court’s Decision in U.S. v. U.S. Sugar and Imperial SugarRead the Press Release
Assistant Attorney General Jonathan Kanter issued the following statement regarding the District Court’s decision today in U.S. v. U.S. Sugar and Imperial Sugar.
"We are disappointed in the court’s decision not to block this merger, which would combine one of the largest sugar cane refiners with one of its primary competitors in the Southeastern United States and increase reliance on foreign imports. Further consolidation in the market for this important kitchen staple will have real-world consequences for millions of Americans. We are reviewing the opinion and will determine next steps shortly. We are, as always, grateful for the Antitrust Division staff’s tireless work protecting and promoting competition."
St. Louis County Man Sentenced to 10 Years in Prison for Armed RobberiesRead the Press Release
ST. LOUIS – U.S. District Judge Sarah E. Pitlyk on Friday sentenced a man from St. Louis County who robbed two stores and was shot while robbing a third to ten years in prison.
Malik Dorsey, 23, pleaded guilty at the start of Friday’s hearing to three robbery charges and one count of possession and brandishing of a firearm in furtherance of a crime of violence. He admitted two armed robberies and one attempted robbery.
On Dec. 5, 2020, he and a co-defendant, Darrion Gardner, robbed a T-Mobile store on Lackland Road in Overland. They forced an employee to the ground, stole cash from the cash registers and an employee and then stole phones from a storage area after forcing an employee at gunpoint to take them there.
Two days later, they robbed the Universal Accessories store on St. Charles Rock Road in Breckenridge Hills of cell phones.
Dorsey was in the process of robbing the Boost Mobile store at 7222 Manchester Road in Maplewood when he was shot by a store employee and wounded. He is now a paraplegic.
The crimes were caught on surveillance video and both Dorsey and Gardner were wearing GPS ankle monitors at the time.
Gardner, of St. Louis County, was sentenced September 13 to 14 years in prison. Both Dorsey and Gardner were also ordered to pay $16,183 in restitution.
The FBI and police departments in Overland Hills, Breckenridge Hills and Maplewood investigated this case.
St. Francis Woman Sentenced on Meth ChargesRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that a St. Francis, South Dakota, woman convicted of Conspiracy to Distribute Methamphetamine was sentenced on September 23, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Iverina Crow Eagle, 44, was sentenced to seven years and six months in federal prison, followed by four years of supervised release, a $1,000 fine, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Crow Eagle was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury in October of 2020. She pleaded guilty to the offense on June 2, 2022.
From January 2018 to February 2021, Crow Eagle was involved in a conspiracy with several other individuals to distribute methamphetamine on the Rosebud Sioux Indian Reservation. Over 500 grams of methamphetamine was distributed by Crow Eagle during the course of the conspiracy.
This case was investigated by Northern Plains Safe Trails Drug Enforcement Task Force and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Crow Eagle was immediately remanded to the custody of the U.S. Marshals Service.
South Dakota Women Indicted for Meth and Firearm ChargesRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that two South Dakota women have been indicted by a federal grand jury for Conspiracy to Distribute Methamphetamine, Possession with Intent to Distribute Methamphetamine, and Firearm charges.
Sarah Jahner Clifford, of Gettysburg, South Dakota, age 44, was indicted in September of 2022. She appeared before Judge Mark A. Moreno on September 21, 2022, and pleaded not guilty to the Indictment.
Tara Roberts, of Ridgeview, South Dakota, age 45, was indicted in September of 2022. She appeared before Judge Mark A. Moreno on September 19, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody, and/or a $10,000,000 fine, lifetime of supervised release, and $400 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that the two women were involved in a conspiracy to distribute over 500 grams of methamphetamine in and around central South Dakota. The Indictment further alleges that Jahner-Clifford, who is a prohibited person, was illegally in possession of two firearms, including a short-barrel shotgun.
The charges are merely an accusation and Jahner-Clifford and Roberts are presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force, the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bureau of Indian Affairs, and the South Dakota Highway Patrol. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Roberts was released on bond pending trial. Jahner-Clifford was remanded to the custody of the U.S. Marshals Service. A trial date has been sent for November 15, 2022.
South Carolina man convicted of COVID-19 Relief fraud in first Atlanta PPP trialRead the Press Release
ATLANTA – A federal jury in Atlanta convicted a South Carolina man of fraudulently obtaining a $300,000 forgivable Paycheck Protection Program (PPP) loan guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
“During the depths of the pandemic, Travis Crosby decided to steal federal relief funds meant to help struggling businesses,” said U.S. Attorney Ryan K. Buchanan. “Crosby has now been convicted of fraud in Atlanta’s first PPP fraud trial and will soon be sentenced for his theft.”
“Crosby’s personal greed affects every tax paying citizen in this country and took away from government funds intended to provide relief to small business and employees who desperately needed it during the pandemic,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “This conviction serves as a message that the FBI and our federal partners remain vigilant to make sure funds provided by programs like PPP are used as intended.”
“The Treasury Inspector General for Tax Administration will aggressively pursue those who attempt to defraud the Coronavirus Relief and Economic Security Act and its Paycheck Protection Program, which was created to assist legitimate business owners during the pandemic,” said J. Russell George, the Treasury Inspector General for Tax Administration. “We appreciate the efforts of our law enforcement partners and the US Attorney’s Office to ensure this criminal activity is held to account.”
“Conspiring to defraud SBA robs the nation of vital resources intended to support the nation’s small businesses,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “OIG remains committed to rooting out bad actors and protecting the integrity of SBA programs every day. I am continually grateful to the U.S. Attorney’s Office for its leadership and dedication to shining a light on darkness wherever it may be.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Travis Crosby conspired to submit a PPP loan application on behalf of Crosby’s company, Faithful Transport Services LLC (Faithful Transport). The loan application falsely inflated the number of employees and average monthly payroll for Faithful Transport, inducing a larger PPP loan than Crosby could legitimately obtain. Crosby and a co-conspirator also caused the submission of a forged tax document to support the false statements in the loan application. Crosby then engaged in a series of sham transactions with various individuals to make it appear that he was paying them payroll for work at Faithful Transport when, in reality, these individuals returned the vast majority of the funds to Crosby.
Crosby is the 11th defendant to be convicted as part of the Justice Department’s prosecution of a $3 million, Atlanta-based PPP fraud ring. Previously, 10 other members of the scheme were charged by the U.S. Attorney’s Office for the Northern District of Georgia and the DOJ Fraud Section. All other defendants pleaded guilty prior to trial. To date, authorities have recovered approximately $1.2 million of the stolen money.
Travis Crosby, 32, of Wellford, South Carolina, was convicted of conspiracy to commit bank fraud, bank fraud, making a false statement to a bank, and money laundering. He is scheduled to be sentenced on January 10, 2023.
Since the inception of the CARES Act, the Fraud Section has prosecuted over 150 defendants in more than 95 criminal cases and has seized over $75 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The FBI Atlanta Field Office; the SBA-OIG; and the TIGTA investigated the case.
Assistant U.S. Attorney Christopher J. Huber for the Northern District of Georgia, Trial Attorney Matthew Reilly of the Criminal Division’s Fraud Section are prosecuting the case. Special Assistant U.S. Attorney Diane D. Schulman for the Northern District of Georgia and Trial Attorney Michael P. McCarthy of the Criminal Division’s Fraud Section provided significant assistance.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Six Men Indicted for Orleans Parish Based Narcotics Trafficking ConspiracyRead the Press Release
NEW ORLEANS, LOUISIANA – Charles WADE, a/k/a “Poosie,” age 41, David Hester, a/k/a “Goon,” age 33, Brison Shelton, age 48, William Lang, age 44, Alfred Clay, age 58, and Saul Macedo-Rodriguez, age 36, were indicted Thursday, September 22, 2022, by a federal grand jury , for violations of the Federal Controlled Substances Act.
During the investigation, the federal Drug Enforcement Administration, seized over forty-one (41) kilograms of cocaine hydrochloride, ten (10) kilograms of fentanyl, and over four hundred thousand dollars ($400,000.00) in bulk cash.
According to court documents, WADE and LANG, were charged with conspiracy to distribute and possess with the intent to distribute five (5) kilograms more of cocaine hydrochloride, one (1) kilogram or more of a mixture and substance containing a detectable amount of heroin, and four hundred (400) grams or more of mixture and substance containing a detectable amount of fentanyl, in violation of Title 21, United States Code, Section 841(a)(1), 841 (b)(1)(A), and Section 846.
HESTER, CLAY, and MACEDO-RODRIGUEZ were charged with conspiracy to distribute and possess with the intent to distribute and possession with the intent to distribute five (5) kilograms or more of cocaine hydrochloride, in violation of Title 21, United States Code, Section 841(a)(1), 841(b)(1)(A), and Section 846.
SHELTON is charged with conspiracy to distribute and possess with the intent to distribute and possession with the intent to distribute five hundred (500) grams or more of cocaine hydrochloride, in violation of Title 21, United States Code, Section 841(a)(1), 841(b)(1)(B), and Section 846.
If convicted, WADE, HESTER, LANG, CLAY, and MACEDO-RODRIGUEZ face a mandatory minimum term of imprisonment of 10 years and a maximum of life imprisonment, a fine of up to $10,000,000.00, and at least 5 years of supervised release following any term of imprisonment. SHELTON faces a mandatory minimum term of imprisonment of 5 years and a maximum of 40 years imprisonment, a fine of up to $5,000,000.00, and at least 4 years of supervised release following any term of imprisonment. As to each count for which they were charged , the defendants also face a mandatory special assessment fee of $100.
U.S. Attorney Duane A. Evans reiterated that the indictment is merely a charging document and that the guilt of the defendants must be proven beyond a reasonable doubt.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This investigation was led by the Drug Enforcement Administration – New Orleans Field Division Office and assisted by the Federal Bureau of Investigation, United States Border Patrol, Gretna Major Crimes Task Force, Kenner Police Department, Jefferson Parish Sheriff’s Office, St. John’s Parish Sheriff’s Office, New Orleans Sheriff’s Office and New Orleans Police Department. The prosecution of this case is being handled by Assistant United States Attorney Christopher Usher.
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Sioux Falls Man Arrested for Role in Bank Fraud & Money Laundering ConspiraciesRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Commit Bank Fraud and Conspiracy to Launder Monetary Instruments.
Cameron Terrill Hardiman, age 42, was indicted in September of 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 21, 2022, and pleaded not guilty to the Superseding Indictment.
The maximum penalty upon conviction is up to up to 30 years in custody for Bank Fraud Conspiracy, 20 years in custody for Money Laundering Conspiracy, and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution and forfeiture may also be ordered.
According to the Superseding Indictment, in 2020 and continuing until April 2022, Hardiman and others conspired and agreed to knowingly conduct and attempt to conduct bank fraud and financial transactions affecting interstate commerce. Specifically, Hardiman and others knowingly conspired to defraud multiple financial institutions throughout the Sioux Falls area and elsewhere and to obtain funds by means of false or fraudulent pretenses, representations, and promises.
After obtaining funds through fraud, it is alleged that Hardiman and others engaged in depositing, transferring, wiring, and withdrawing the funds at financial institutions. It is alleged they knew the transactions were designed in whole or in part to conceal and disguise the nature, location, source, ownership, or control of the proceeds of the fraud scheme and that the funds involved represented the proceeds of unlawful activity.
The charges are merely accusations and Hardiman is presumed innocent until and unless proven guilty.
The investigation is being conducted by the following agencies: IRS Criminal Investigation; DHS – HSI; SFPD; SD Highway Patrol; and USPS.
Assistant U.S. Attorney Jeremy R. Jehangiri is prosecuting the case.
Hardiman was remanded to the custody of the U.S. Marshals Service pending trial. A trial date of November 29, 2022, has been set.
Security Guard Arrested for Enticing 13-Year-Old to Repeatedly Produce Sexually Explicit MaterialRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces the arrest of Brett Avery Tipton (40, Rockledge) on a criminal complaint charging him with enticing a minor to produce child sexual abuse material. If convicted, Tipton faces a minimum mandatory penalty of 10 years, and up to life, in federal prison. Tipton made his initial appearance before U.S. Magistrate Judge Embry J. Kidd yesterday and was ordered detained pending trial.
According to the complaint, in 2020, Tipton began communicating with the child victim (who was then approximately 12 years old) through various social media platforms, including Snapchat, Telegram, PlayStation, and Facebook. At Tipton’s request and urging, the victim sent him numerous pictures of the victim engaging in sexually explicit conduct. In return, Tipton sent the victim gifts from Amazon, games, gaming equipment (such as headphones), and food through an online delivery service. The investigation revealed that Tipton engaged in this conduct with the victim for more than one year.
According to the complaint, the investigation also revealed that Tipton distributed child sex abuse material to online groups that trade such contraband. During an interview with the FBI, Tipton stated that he used his online accounts to interact with and solicit sexually explicit material from young teenage boys and men who ranged in age from 12 to 26 years old.
A complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Federal Bureau of Investigation (Orlando and Cincinnati), with assistance from the Licking County (Ohio) Sheriff’s Office, the Rockledge Police Department, and the United States Secret Service (Cincinnati). It will be prosecuted by Assistant United States Attorney Emily C. L. Chang.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Office and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Sacramento Man Sentenced to 15 Years in Prison for Possessing Methamphetamine for DistributionRead the Press Release
SACRAMENTO, Calif. — A Vern Saeteurn, 34, of Sacramento, was sentenced Thursday to 15 years in prison for possessing methamphetamine with the intent to distribute it, U.S. Attorney Phillip A. Talbert announced.
According to court documents, law enforcement agents searched Saeteurn’s home on Sept. 6, 2018. They found about 11 kilograms of methamphetamine, a garage lab for adulterating and packaging methamphetamine, and several guns — two of which had been stolen from law enforcement agencies. Four children were also present in the home. Saeteurn was purchasing around 10 kilograms of methamphetamine several times a week.
This case was the product of an investigation by the Federal Bureau of Investigation, Homeland Security Investigations, the Sacramento Sheriff’s Office, the Sacramento Police Department, the California Highway Patrol, and the California Department of Corrections & Rehabilitation. Assistant U.S. Attorney Michael Beckwith prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Rapid City Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Benjamen T. Flute, a/k/a Benjamin T. Flute, age 43, was indicted in September of 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 20, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Flute was convicted of Second Degree Rape in December of 2007. As a result of this conviction, he is required to register as a sex offender. It is alleged that between August 12, 2022, and August 25, 2022, Flute, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under State Law, and having traveled in interstate commerce, failed to properly register as a sex offender and update his registration.
The charge is merely an accusation and Flute is presumed innocent until and unless proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Flute was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Rapid City Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Roy Brushbreaker, III, age 28, was indicted in September of 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 20, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Brushbreaker was convicted of Abusive Sexual Contact in April 2019. As a result of this conviction, he is required to register as a sex offender. It is alleged that between July 20, 2022, and August 19, 2022, Brushbreaker a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender and update his registration.
The charge is merely an accusation and Brushbreaker is presumed innocent until and unless proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
The investigation is being conducted by the U.S. Marshals Service and the Rapid City Police Department. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Brushbreaker was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Pierre Man Indicted for Firearm ChargeRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Pierre, South Dakota, man has been indicted by a federal grand jury for Prohibited Person in Possession of a Firearm.
Cody Dewell, age 33, was indicted in July of 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 20, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on May 25, 2022, Dewell, being a convicted felon and an unlawful user of a controlled substance, knowingly possessed a firearm.
The charge is merely an accusation and Dewell is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force, the South Dakota Highway Patrol, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Dewell was released on bond pending trial. A trial date has not been set.
Philadelphia Man Charged with Drug Trafficking OffensesRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Demetri Carroll, age 27, of Philadelphia, was indicted yesterday by a federal grand jury on drug trafficking charges.
According to United States Attorney Gerard M. Karam, the indictment charges Carroll with one count of conspiracy to distribute controlled substances and nine counts of possession with intent to distribute controlled substances, including methamphetamine, fentanyl, cocaine base, and cocaine between October 2021 and August 2022, in Clinton and Lycoming Counties.
This case was investigated by the Lycoming County Narcotics Enforcement Unit, the Pennsylvania State Police and the Federal Bureau of Investigation. Assistant U.S. Attorney Alisan V. Martin is prosecuting the case.
This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The maximum penalty under federal law for the most significant offenses is 40 years’ imprisonment and a fine. A sentence for each of these offenses also includes a period of supervised release following imprisonment. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. Indictments are only allegations.
All persons charged by indictment are presumed to be innocent unless and until found guilty in court.
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Philadelphia Felon Pleads Guilty to Illegally Possessing a Firearm with an Extended Magazine While on Parole for RobberyRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Tyree Little, 22, of Philadelphia, PA, pleaded guilty earlier this week, just before trial was scheduled to begin today, to illegally possessing a firearm with an extended magazine.
The charge stems from an incident in July 2021, during a vehicle stop for a traffic violation, when Philadelphia Police Officers observed a firearm with an extended magazine sticking out from under the driver’s seat of the defendant’s car, where the defendant was seated. Little pleaded guilty to possessing that firearm, which he was not able to lawfully possess due to a prior felony conviction for robbery.
The defendant was on state parole for the robbery at the time, and he was also a participant in the Project Safe Neighborhoods (PSN) Call-In Program. The PSN Call-In Program is a violence prevention and re-entry initiative coordinated by the Pennsylvania Department of Corrections, Parole Field Services, and the U.S. Attorney’s Office for the Eastern District of Pennsylvania. The program, which is part of the Justice Department’s Project Safe Neighborhoods strategy, has been in operation since 2013 and is designed to reduce violent crime and recidivism of individuals returning from state incarceration to the 1st, 3rd, 12th, 16th, 18th, 19th, 22nd, 24th, 25th, 39th Police Districts in Philadelphia. Parolees attend a one-time meeting with law enforcement and community members imploring them refrain from violence and firearms possession. Law enforcement officials deliver a clear message of deterrence, warning parolees that if they continue to commit crime, they will be prosecuted to the fullest extent of the law. Following this meeting, parolees receive connections to resources to assist with their re-entry process into general society.
“Our Office is invested in the successful re-entry of previously convicted individuals to our communities for many reasons, chief among them is ensuring public safety,” said U.S. Attorney Romero. “Once their debt to society has been paid and their sentence served, previously convicted individuals often require extra support and services to become productive citizens, which is why the PSN Call-In Program exists. But participants are made aware that if they don’t adhere to the terms of the program including refraining from committing additional crimes, they will face serious federal charges as a result.”
“ATF is determined to make our streets safer by working with our local, state, and federal partners,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “We are committed to identifying and prosecuting armed criminals, especially repeat offenders, and remove them from our communities.”
“The Pennsylvania Department of Corrections and the Parole Field Services Department in particular sincerely appreciate the support and cooperation the U.S. Attorney’s Office has invested in this matter as well as in our ongoing partnership,” said Pennsylvania Department of Corrections Acting Secretary George Little. “Continued communication and collaboration between all levels of law enforcement is essential to building stronger, safer communities.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with assistance from the Philadelphia Police Department Highway Patrol, and is being prosecuted by AUSA Jeanine Linehan, Chief of the Violent Crimes Unit, and Assistant United States Attorney Katherine Shulman.
Pennsylvania Man Indicted for Assaulting a Reproductive Health Care ProviderRead the Press Release
A federal grand jury in Pennsylvania returned an indictment today charging a local man for assaulting a reproductive health care clinic escort in Philadelphia.
According to court documents, Mark Houck, 48, of Kintnersville, Pennsylvania, is alleged to have twice assaulted a man because he was a volunteer reproductive health clinic escort. The two-count indictment charges Houck with a violation of the Freedom of Access to Clinic Entrances (FACE) Act, which makes it a federal crime to use force with the intent to injure, intimidate, and interfere with anyone because that person is a provider of reproductive health care.
The charges stem from two separate incidents on Oct. 13, 2021, where Houck assaulted the victim, identified in the indictment as “B.L.,” because B.L. was a volunteer escort at the reproductive health care clinic.
If convicted of the offenses, Houck faces up to a maximum of 11 years in prison, three years of supervised release and fines of up to $350,000.
The FBI Philadelphia Field Office investigated the case. Trial Attorney Sanjay Patel of the Civil Rights Division and Assistant U.S. Attorney Anita Eve for the Eastern District of Pennsylvania are prosecuting the case.
An indictment is merely an allegation, and the defendant is presumed innocent unless proven guilty.
Omaha Man Sentenced for Methamphetamine ConspiracyRead the Press Release
Acting United States Attorney Steven Russell announced that German Reyes Jr., 25, of Omaha, Nebraska, was sentenced today in federal court in Omaha for conspiracy to distribute and possess with intent to distribute methamphetamine. United States District Judge Brian C. Buescher sentenced Reyes to imprisonment for a term of 188 months. There is no parole in the federal system. After his release from prison, he will begin a 5-year term of supervised release.
Between September and November 2020, German Reyes assisted Mexico-based sources of supply along with local co-conspirators to obtain and distribute methamphetamine. Beginning in September 2020, an undercover agent arranged multiple purchases of methamphetamine.
One such buy occurred on September 14, 2020, when the defendant, accompanied by a co-conspirator, sold a pound of methamphetamine to the undercover agent. Similarly, on November 9, 2020, a co-conspirator at Reyes’s direction sold the undercover agent a pound of methamphetamine.
The overall investigation resulted in the recovery of 1,587 grams of methamphetamine.
Co-defendant Abraham Alvarenga is pending sentencing on November 2, 2022.
This case was investigated by the Drug Enforcement Administration, Omaha Field Division, and the Omaha Police Department.
Oklahoma man sentenced to 25 years in prison for federal drug and firearms chargesRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that Caesar Nathanial James Crayton, 47, Oklahoma City, Oklahoma, was sentenced on Sept. 22 to 25 years in prison. On Feb. 16, a federal jury convicted Crayton on one count each of possession with intent to distribute five grams and more of methamphetamine, being a felon in possession of a firearm and ammunition, and carrying a firearm during and in relation to a drug trafficking crime.
On Aug. 16, 2020, Crayton approached a U.S. Border Patrol checkpoint on Interstate 10 west of Las Cruces, New Mexico. Crayton consented to a canine inspection of his vehicle, during which the canine alerted. During a hand search of the vehicle, agents located 53 grams of methamphetamine, a .45 caliber pistol, 537 rounds of ammunition, one 25-round ammunition magazine, one 13-round magazine, one 17-round magazine, $6,853 in U.S. currency and 10 soles in Peruvian currency.
At the time of the incident, Crayton previously had been convicted of multiple felonies. As a convicted felon, Crayton cannot legally possess firearms or ammunition.
Upon his release from prison, Crayton will be subject to eight years of supervised release.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case with assistance from U.S. Border Patrol. Assistant United States Attorneys Joni Autrey Stahl and Renee L. Camacho prosecuted the case.
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Ocean Beach Drug Dealer Sentenced to 12.5 Years for His Role in Fatal OverdoseRead the Press Release
Assistant U. S. Attorney Adam Gordon (619) 546-6720
NEWS RELEASE SUMMARY—September 23, 2022
SAN DIEGO - Anthony Souza of Ocean Beach was sentenced in federal court today to 150 months for conspiracy to distribute 400 grams and more of fentanyl. Souza’s distribution of fentanyl resulted in the fatal overdose of 28-year-old Chad Stevens, also of Ocean Beach.
According to his plea agreement, Souza admitted that he provided four counterfeit M-30 pills laced with fentanyl, commonly referred to as “blues,” to Stevens, on November 21, 2019. These pills caused Stevens to have a near-fatal overdose. Then approximately six months later, Souza again sold counterfeit “blues” to Stevens – this time with fatal results.
According to admissions in his plea agreement, Souza continued to sell “blues” despite the Stevens’ death, and on June 24, 2020, law enforcement conducted a search warrant of Souza’s residence. During the search, law enforcement seized $2,460 in U.S. currency, 115 grams of cocaine, and 183 counterfeit “blues,” and arrested Souza’s co-defendant, Alyson Marie Vaccacio. Vaccacio pleaded guilty to conspiracy to distribute 40 grams and more of fentanyl and 500 grams and more of cocaine, and her sentencing date is December 5, 2022.
Before pronouncing the sentence, U.S. District Judge Gonzalo P. Curiel said: “Drugs are often described as a poison, and, as we all know, poison kills, and that's what drugs do. They kill dreams, aspirations, goals, humanity, empathy. Drugs kill the ability to experience true joy, to make sound decisions. Drugs break up marriages. They break up families. And in this case, you have what can only be described as heartbreaking circumstances, that parents have had to bury not just one but two children as a result of fentanyl. And sometimes drugs kill people instantly. Most of the time, we have seen cases where drugs kill you a little bit at a time, where they destroy everything good about your life, eventually shorten your life, either by way of your health or resulting in violence. But in this instance, we have the death of Chad Stevens that occurred, essentially, in an instant. And so, ultimately, every drug dealer is responsible for death, either a slow-motion death, over the course of time, or the instant death of Chad Stevens.”
He later added: “The word needs to get out. The message needs to be clear that individuals who partake in the distribution of drugs -- and, particularly, this deadly drug, fentanyl … will receive a sentence in excess of 10 years. There has to be that message that is delivered loud and clear.”
“The days of recreational drug use need to be over,” said U.S. Attorney Randy Grossman. “We know from the DEA’s analysis of seized pills that more than 40 percent of counterfeit pills contain a deadly amount of fentanyl. We can’t say it enough. With fentanyl there is no such thing as a ‘safe’ recreational drug.” Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.
“Removing fake pills from our communities and those who distribute them are our top priorities,” said DEA Special Agent in Charge Shelly S. Howe. “San Diego is a safer place with Mr. Souza behind bars. We will continue to pursue those who are selling fake pills and contributing to the unprecedented number of overdoses and poisonings.”
“As law enforcement officers, there is nothing more painful than investigating a death that could have been prevented. While we all can do our part in removing these illegal and lethal drugs from the streets, the public can only benefit if we also do our part in educating to prevent additional overdose deaths,” said Chad Plantz, special agent in charge for HSI San Diego. “I am extremely proud of our HSI agents, working with our law enforcement partners, for the results of this investigation that will undoubtably make our neighborhoods safer.”
Special Agents and Task Force Officers with the Drug Enforcement Administration’s Overdose Response Team (formerly known as Team 10) led the investigation into Steven’s death. This case is the result of ongoing efforts by the U.S. Attorney’s Office, the Drug Enforcement Administration, Homeland Security Investigations, the Federal Bureau of Investigation, the San Diego Police Department, and the California Department of Health Care Services to investigate and prosecute the distribution of dangerous illegal drugs—fentanyl in particular—that result in overdose deaths. The Drug Enforcement Administration created the Overdose Response Team as a response to the increase in overdose deaths in San Diego County.
DEFENDANT Case Number 21-CR-1537 GPC
Anthony Souza Age: 46 San Diego, CA
Alyson Marie Vaccacio Age: 32 San Diego, CA
SUMMARY OF CHARGES
Conspiracy to Distribute 400 Grams and More of Fentanyl – Title 21, United States Code, Sections 841(a) and (b)(1)(C)
Maximum Penalty: Life in prison, with mandatory minimum of 10 years
Conspiracy to Distribute 40 Grams and More of Fentanyl – Title 21, United States Code, Sections 841(a) and (b)(1)(C)
Maximum Penalty: Forty years in prison, with five-year mandatory minimum.
AGENCY
Drug Enforcement Administration
Homeland Security Investigations
Federal Bureau of Investigation
San Diego Police Department
California Department of Health Care Services
Norwalk Drug Distributor Sentenced to 3 Years in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that KOUDRIS POUNDER, 38, formerly of Norwalk, was sentenced yesterday by U.S. District Judge Stefan R. Underhill in Bridgeport to 36 months of imprisonment, followed by three years of supervised release, for distributing controlled substances.
According to court documents and statements made in court, in the fall of 2019, Norwalk Police made controlled purchases of cocaine and MDMA (“ecstasy”) from Pounder. On November 19, 2020, a court-authorized search of Pounder’s residence revealed distribution quantities of cocaine, crack cocaine, methamphetamine, phencyclidine (PCP) and marijuana; items used to process and package drugs for street sale; and firearm parts.
Pounder was federally arrested on January 30, 2020. On February 24, 2022, he pleaded guilty to possession with intent to distribute controlled substances.
This is Pounder’s second federal conviction.
Pounder, who is released on a $50,000 bond and residing in the Bronx, New York, is required to report to prison on November 16.
This investigation was conducted by the DEA’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force and the Norwalk Police Department. The HIDTA Task Force includes personnel from the DEA Bridgeport Resident Office, the Connecticut State Police, and the Bridgeport, Norwalk, Stamford, Stratford, Milford and Danbury Police Departments. The case was prosecuted by Assistant U.S. Attorney Katherine E. Boyles.
Niagara Falls Man Going to Prison for 17 Years on Multiple Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, NY--U.S. Attorney Trini E. Ross announced today that Jeffrey Richards, 32, of Niagara Falls, NY, who was convicted of possession with intent to distribute acetyl fentanyl, possession of a firearm in furtherance of drug trafficking, and possession of a stolen firearm, was sentenced to serve 204 months in prison by U.S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that on December 14, 2018, a search warrant was executed at Richards’ residence on Packard Court in Niagara Falls. During the search, investigators recovered, among other items, amounts of acetyl fentanyl, fentanyl, cocaine, marijuana, alprazolam, approximately 10 firearms, various rounds of ammunition, drug trafficking paraphernalia, an improvised destructive device, and various items used in the manufacturing of destructive devices.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division, the Niagara Falls Police Department, under the direction of Superintendent John Faso, and the Niagara County Sheriff's Department, under the direction of Sheriff Michael Filicetti.
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New York Man Sentenced to 40 Months’ Imprisonment for Firearms OffenseRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Tyshawn Mack, age 30, of Brooklyn, New York, was sentenced yesterday to 40 months in prison by United States District Court Judge Robert D. Mariani for illegally possessing two firearms.
According to United States Attorney Gerard M. Karam, on January 18, 2019, Mack possessed a .380 caliber Ruger LCP pistol and a .32 caliber River Johnson Arms revolver, while prohibited by law to possess firearms because of a previous felony conviction. Both firearms were loaded at the time of Mack’s possession of them.
The case was investigated by the Federal Bureau of Investigation in Scranton and the Stroud Area Regional Police Department. Assistant U.S. Attorney Michelle Olshefski prosecuted the case.
This case was also part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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New Orleans Woman Sentenced for Conspiracy to Distribute DrugsRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that on September 22, 2022, WYVONNE TYSON, age 35, of New Orleans, was sentenced by United States District Judge Eldon E. Fallon after previously pleading guilty to a drug offense.
Specifically, TYSON pled guilty to one count of conspiracy to distribute and possess with the intent to distribute five kilograms or more of cocaine hydrochloride, 100 grams or more of heroin, and a quantity of cocaine base, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(A), 841(b)(1)(B), 841(b)(1)(C) and 846.
According to court records, TYSON and others conspired to distribute heroin, cocaine, and cocaine base in the New Orleans metropolitan area and elsewhere. Moreover, TYSON admitted to transporting between 50 and 150 kilograms of cocaine from Texas to New Orleans on behalf of a drug trafficking organization.
In total, Judge Fallon sentenced TYSON to 70 months imprisonment, 3 years of supervised release, and a $100 mandatory special assessment fee.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (“OCDETF”). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration and Federal Bureau of Investigation in investigating this matter. Assistant United States Attorneys Elizabeth Privitera and Jonathan L. Shih are in charge of the prosecution.
New Orleans Resident Sentenced to Probation for Laundering Drug MoneyRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced today that Judge Susie Morgan sentenced ANNICE FALKINS, age 35, of New Orleans, Louisiana, to (5) five years of probation, which includes (1) one year of home detention, and a $100 mandatory special assessment fee for laundering money that was derived from the unlawful distribution of controlled substances, in violation of Title 18, United States Code, Section 1957.
According to court records, on April 6, 2016, FALKINS purchased a home in New Orleans East with 14 cashier’s checks that she acquired with funds she knew were earned from the illegal sale of heroin. Each of the cashier’s checks was in an amount less than $10,000, totaling approximately $118,226.51.
On December 27, 2017, FBI Special Agents from the New Orleans Gang Task Force received information regarding the pending delivery of approximately three kilograms of heroin that FALKINS’ codefendant and romantic partner, Arthur Johnson, was purchasing from his Chicago-based supplier. Later that day, surveillance agents observed meetings between Johnson and the man delivering the heroin at a Holiday Inn Hotel in New Orleans. During these meetings, Johnson paid approximately $187,000 for the heroin. The next day, FBI agents searched the home in New Orleans East that Johnson shared with FALKINS. During this search, agents seized 1.3 kilograms of heroin, over $11,000 in cash, numerous items of jewelry, six cell phones, a money counter, and a kilogram press used to package heroin.
FALKINS and Johnson pled guilty on August 24, 2021. On May 19, 2022, Judge Morgan sentenced Johnson to 262 months for conspiring to distribute heroin.
Pursuant to her plea agreement, FALKINS agreed to forfeit a Mercedes Benz car and a residential property in Davenport, Florida, both of which were purchased with proceeds from the illicit sale of heroin.
U.S. Attorney Evans praised the work of the FBI in investigating this matter. Assistant United States Attorney Brandon Long is in charge of the prosecution.
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New Orleans Man Found Guilty of Drug and Weapons ViolationsRead the Press Release
NEW ORLEANS, LA – United States Attorney Duane A. Evans announced today that DERRICK ESTES, age 42, of New Orleans, was found guilty as charged on September 21, 2022 after a two-day jury trial before U.S. District Judge Jay C. Zainey.
The jury found ESTES guilty as charged as to all four counts in the superseding indictment. The superseding indictment charged ESTES in Count 1 with possession with intent to distribute a quantity of fentanyl and cocaine. Count 2 charged ESTES with possessing a firearm in furtherance of a drug trafficking offense and Count 3 charged ESTES with being a felon in possession of a firearm. Finally, Count 4 charged ESTES with possession with the intent to distribute cocaine and over 40 grams of fentanyl.
The FBI’s New Orleans Violent Crime Task Force worked in conjunction with NOPD during the end of 2020 and the beginning of 2021 in the Algiers neighborhood of New Orleans due to a significant increase in shootings and homicides. On January 17, 2021, the New Orleans Police Department (NOPD) responded to the shooting of ESTES in the 1400 block of Teche Street in Algiers. ESTES did not notify police or EMS of the shooting and was transported to the hospital by his girlfriend. The hospital notified police of the incident and the approximate location of the shooting. During that investigation police located surveillance video footage of the shooting and observed ESTES exit his vehicle after the shooting and remove several items from his vehicle to the residence located at 1412 Teche Street, a residence linked to the ESTES family. Investigators elected to obtain a search warrant and executed the search warrant on the residence. NOPD located several items linked to ESTES, including a significant amount of narcotics, specifically cocaine and fentanyl, drug selling paraphernalia, and three firearms, which included an AK47 rifle. Investigators had observed ESTES possessing a very similar AK47 rifle on a Real Time Crime Camera following the shooting of his brother, Joe Estes, at a residence on Nunez Street in Algiers approximately one month prior. An arrest warrant was issued for ESTES, and he was subsequently arrested on February 1, 2021, at another residence in Algiers. Following ESTES’ arrest, NOPD conducted a search of that residence and the vehicle he was seen utilizing. That search resulted in the recovery additional narcotics, specifically cocaine and over 40 grams of fentanyl, drug selling paraphernalia, and approximately $2800.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. It is being prosecuted by Assistant United States Attorneys Inga Petrovich and Mike Trummel of the U.S. Attorney’s Office Violent Crime Unit.
Mississippi Man Charged with Federal Hate Crime for Cross BurningRead the Press Release
The Justice Department announced that Axel C. Cox, 23, has been charged with hate crime and arson violations for burning a cross in his front yard to threaten, interfere with and intimidate a Black family in Gulfport, Mississippi.
According to court documents, Cox is charged with one count of criminal interference with the right to fair housing and one count of using fire to commit a federal felony. The indictment alleges that on Dec. 3, 2020, Cox threatened, intimidated and interfered with a Black family’s enjoyment of their housing rights. According to the indictment, Cox burned a cross in his front yard, and used threatening and racially derogatory remarks toward his Black neighbors. Cox allegedly chose to burn the cross because of the victims’ race.
If convicted, Cox faces up to 10 years in prison for interfering with the victims’ housing rights and a mandatory minimum of 10 years in prison, consecutive to any other sentence, for using fire to commit a federal felony. Cox also faces a fine of up to $250,000 with respect to each charge.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Darren J. LaMarca for the Southern District of Mississippi and Special Agent in Charge Jermicha Fomby for the FBI Jackson Field Office made the announcement.
Assistant U.S. Attorney Andrea Cabell Jones for the Southern District of Mississippi and Trial Attorney Noah Coakley II of the Justice Department’s Civil Rights Division are prosecuting the case.
For more information and resources on the department’s efforts to combat hate crimes, visit www.justice.gov/hatecrimes.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Mississippi Man Charged with Federal Hate Crime for Cross BurningRead the Press Release
Gulfport, Miss. – The Justice Department announced that Axel C. Cox, 23, has been charged with hate crime and arson violations for burning a cross in his front yard to threaten, interfere with and intimidate a Black family in Gulfport, Mississippi.
According to court documents, Cox is charged with one count of criminal interference with the right to fair housing and one count of using fire to commit a federal felony. The indictment alleges that on Dec. 3, 2020, Cox threatened, intimidated and interfered with a Black family’s enjoyment of their housing rights. According to the indictment, Cox burned a cross in his front yard, and used threatening and racially derogatory remarks toward his Black neighbors. Cox allegedly chose to burn the cross because of the victims’ race.
If convicted, Cox faces up to 10 years in prison for interfering with the victims’ housing rights and a mandatory minimum of 10 years in prison, consecutive to any other sentence, for using fire to commit a federal felony. Cox also faces a fine of up to $250,000 with respect to each charge.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Darren J. LaMarca for the Southern District of Mississippi and Special Agent in Charge Jermicha Fomby for the FBI Jackson Field Office made the announcement.
Assistant U.S. Attorney Andrea Cabell Jones for the Southern District of Mississippi and Trial Attorney Noah Coakley II of the Justice Department’s Civil Rights Division are prosecuting the case.
For more information and resources on the department’s efforts to combat hate crimes, visit www.justice.gov/hatecrimes.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Mission Man Sentenced on Cocaine and Firearm ChargesRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that a Mission, South Dakota man convicted of Conspiracy to Distribute Cocaine, Prohibited Person in Possession of a Firearm, and Failure to Appear was sentenced on September 23, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Blade Ryan Marshall, 25, was sentenced to 10 years and 10 months in federal prison, followed by three years of supervised release, a $1,000 fine, and ordered to pay a $300 special assessment to the Federal Crime Victims Fund.
Marshall was indicted for Conspiracy to Distribute a Controlled Substance and Prohibited Person in Possession of a Firearm by a federal grand jury in October of 2020. Marshall was released on bond and then failed to appear for his jury trial in January of 2022. Marshall was indicted for Failure to Appear by a federal grand jury in February 2022. He pleaded guilty to all the offenses on June 21, 2022.
From January 2017 to March 2018, Marshall was involved in a conspiracy with at least seven other individuals to distribute cocaine, marijuana, and other drugs Marshall received in Colorado to individuals on the Rosebud Sioux Indian Reservation. As part of that conspiracy Marshall possessed firearms. Being a drug user, Marshall was prohibited from possessing firearms.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by Northern Plains Safe Trails Drug Enforcement Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Marshall was immediately remanded to the custody of the U.S. Marshals Service.
Mission Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Frank White Thunder, age 35, was indicted in September of 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 20, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
White Thunder was convicted of Abusive Sexual Contact in April 2008. As a result of this conviction, he is required to register as a sex offender. It is alleged that between April 12, 2022, and August 13, 2022, White Thunder, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender and update his registration.
The charge is merely an accusation and White Thunder is presumed innocent until and unless proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
The investigation is being conducted by the U.S. Marshals Service and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
White Thunder was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Mecklenburg County Man Sentenced in Middle District for Drug Trafficking and Firearms OffensesRead the Press Release
GREENSBORO – A Mecklenburg County man was sentenced today in Greensboro to 228 months for drug trafficking and firearm offenses that occurred in Cabarrus County, within the Middle District of North Carolina.
According to court documents, Montwon Lashawn Moss, 45, and his co-defendant Brittany Autumn Sandefur were arrested on March 12, 2021, after a cooperator ordered an ounce-and-a-half of methamphetamine from Sandefur and her supplier Moss. They agreed to meet at a location in Concord to conduct the sale. Moss drove Sandefur to the deal and when they arrived, they were arrested by officers with the Concord Police Department.
Upon searching Moss’s vehicle, officers located a loaded .40 caliber Smith & Wesson pistol on the floorboard and bags containing suspected methamphetamine weighing more than 110 grams. The firearm was later determined to have been reported stolen. Additional bags containing smaller amounts of suspected cocaine hydrochloride, MDMA, cocaine base, marihuana, alprazolam, and trazadone were also located in the vehicle. Later forensic testing of the suspected methamphetamine confirmed that Moss possessed at least 50 grams of methamphetamine.
Following his arrest, Moss admitted he knew he was a felon. As a felon, he was prohibited from possessing a firearm. Moss was previously convicted in March 2008 of the federal felony offenses possession with intent to distribute cocaine base and carrying a firearm during and in relation to a drug trafficking crime. He was also previously convicted in August 1994 of the state felony second degree murder, in the Superior Court of Mecklenburg County, North Carolina.
Moss pled guilty on June 8, 2022 in federal court to one count of possession with intent to distribute 50 grams or more of methamphetamine and one count of felon in possession of a firearm based on his March 12, 2021 conduct. Accordingly, Moss was sentenced today to 228 months of imprisonment, ten years of supervised release, and $200 in special assessments. Sandefur is set for sentencing in October, 2022.
U.S. Attorney Sandra Hairston made the announcement, and the case was prosecuted by Assistant United States Attorney Craig Principe. The Concord Police Department, N.C. State Bureau of Investigation, and the federal Bureau of Alcohol, Tobacco, Firearms, and Explosives assisted with the investigation.
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Man Admits to Participating in an Elder Fraud “Grandparent” Scam and a Covid-19 Cares Act Fraud Scheme Resulting in a Combined Loss of More Than $3 MillionRead the Press Release
Baltimore, Maryland – Medard Ulysse, age 38, of Miami, Florida, pleaded guilty today to wire fraud and conspiracy to commit mail fraud in relation to multiple fraud schemes, including an elder “grandparent” scheme and a COVID-19 CARES Act Fraud scheme.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Acting Special Agent in Charge Troy W. Springer, of the Washington Regional Office, U.S. Department of Labor, Office of Inspector General.
“Ulysee’s crimes are truly outrageous. Not only did he facilitate the deception and financial destruction of caring elderly victims by taking advantage of their love for their grandchildren, but he also used the identities of multiple victims to live large on federal CARES Act funding intended to ease financial hardships during a national crisis,” said U.S. Attorney for the District of Maryland, Erek L. Barron. “I hope this conviction helps inform our elderly neighbors and their caretakers of the common grandparent scam. Remember- don’t panic, take the time to verify.”
According to his guilty plea, from January 2018 to November 2019, Ulysse and others executed grandparent scams in which they persuaded elderly victims to send thousands of dollars in cash by posing as a police officer, lawyer, or other person in law enforcement and convincing victims that their grandchild needed money for bail or legal fees. If the victims complied, conspiracy members asked for more cash claiming that additional funds were needed for legal expenses, fines, or damages. Conspirators also pretended to be the troubled relative on these phone calls to convince the elderly victims to send cash. Further, during the calls, conspirators directed the victims to send cash to particular addresses. To conceal the scheme, the conspirators told the victims that a gag order had been placed on the case or that the situation was embarrassing for the grandchild, and that the victim should not share the information with others.
For example, in March 2019, a conspiracy member (co-conspirator 1) called Victim 1, an 83-year-old Saint Charles, Illinois woman and posed as her grandson. During the call, co-conspirator 1 convinced the victim that he had been in an accident and was in jail. Co-conspirator 1 then stated that Victim 1 needed to send money to an address in Lancaster, Pennsylvania to pay for purported damages. Out of concern, Victim 1 sent a package containing $20,000 in cash to the Lancaster address as instructed.
Ulysse admitted that he distributed and directed co-conspirators to distribute cash payments to other members for their participation in the scheme. As a result of the execution of the elder fraud scheme, Ulysse and his co-conspirators convinced at least 83 different victims to send a total of at least $2,420,280. Ulysse’s criminal actions resulted in the substantial financial hardship to at least five of the victims.
From April 2020 to November 2020, Ulysse conducted a separate unemployment benefit scheme to fraudulently obtain unemployment funds, including Federal Pandemic Unemployment Compensation and Pandemic Unemployment Assistance established under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). As part of the scheme to defraud, Ulysse and his conspirators used the identities of numerous victims to submit fraudulent unemployment claims to multiple state workforce agencies, including the Maryland Department of Labor and the California Employment Development Department. Once conspiracy members obtained the funds on state issued debit cards, they used the funds for their personal benefit.
As stated in his guilty plea, in November 2020, Ulysse was stopped in Valdosta, Georgia by Lowndes County Sheriff’s (“LCSO”). LCSO sheriffs executed a search Ulysse’s vehicle and found debit cards in the names of three identity theft victims as well as 25 other debit cards in names other than Ulysse’s name.
In total, between April 2020 and November 2020, Ulysse and others submitted at least 143 fraudulent applications in the names of identity theft victims and obtained approximately $618,767 in fraudulent funds.
Ulysse and the government have agreed that, if the Court accepts the plea agreement, Ulysse will be sentenced to a minimum of 48 months in federal prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for December 19 2023 at 11 a.m.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
United States Attorney Erek L. Barron commended the FBI, DOL-OIG, for their work in the investigation and thanked the Lowndes County Sheriff’s Department for their assistance. Mr. Barron thanked Assistant U.S. Attorneys Sean R. Delaney and Christine Goo, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/elder-justice-initiative.
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Louisiana Man Pleads Guilty to Firearms OffenseRead the Press Release
Gulfport, Mississippi – A Louisiana man pled guilty to being a felon in possession of a firearm, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Brad Byerley of the Drug Enforcement Administration.
Cedric Vontrell Franklin, 39, pled guilty in U.S. District Court in Gulfport.
According to court documents and information presented to the Court, on May 10, 2022, in Gulfport, Mississippi, law enforcement officers conducted a traffic stop on a vehicle driven by Franklin. Officers searched Franklin’s vehicle and recovered a loaded 40 caliber handgun. A search of Franklin’s criminal history revealed he has multiple felony drug convictions.
Franklin will be sentenced on December 19, 2022. He faces a maximum sentence of 10 years in prison. However, if the Court determines he is an Armed Career Offender, he faces a minimum of 15 years imprisonment and a maximum of life. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The DEA and the Mississippi Bureau of Narcotics investigated this case with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Gulfport Police Department
Assistant U.S. Attorney Jonathan Buckner is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Lincoln Woman Sentenced to 15 Years for Conspiracy to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Steven Russell announced that Katrina L. Coffman, 36, of Lincoln, Nebraska, was sentenced today in federal court in Lincoln. United States District Judge John M. Gerrard sentenced Coffman to 180 months in prison for conspiracy to distribute 500 grams of methamphetamine mixture, with a prior serious felony drug conviction. Due to a prior conviction for conspiracy to distribute 500 grams or more of methamphetamine, Coffman faced a mandatory minimum sentence of 15 years. After serving her sentence, Coffman will be placed on supervised release for 10 years. There is no parole in the federal system.
Information provided to law enforcement indicated that Coffman was involved in the distribution of at least three kilograms of methamphetamine mixture in the Lincoln area between January 2017 and February 2021. Law enforcement further determined that at least two ounces of methamphetamine seized from a vehicle during a traffic stop in February 2021 was intended to be provided to Coffman.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force.