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23 September 2022
Business Partner of Art Dealer Inigo Philbrick Pleads Guilty to Defrauding Art Buyers and FinancersRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that ROBERT NEWLAND, the business partner of art dealer INIGO PHILBRICK, who specialized in post-war and contemporary fine art with galleries in London, United Kingdom, and Miami, Florida, pled guilty today before United States District Judge Sidney H. Stein to one count of conspiracy to commit wire fraud for perpetrating a multi-year scheme to defraud various individuals and entities in order to finance PHILBRICK’s art business. NEWLAND, a citizen of the United Kingdom, was arrested in the United Kingdom on February 23, 2022, and extradited from the United Kingdom to the United States on September 22, 2022. PHILBRICK has been sentenced to seven years in prison for the multi-year, $86 million fraud scheme.
U.S. Attorney Damian Williams said: “Robert Newland conspired with Inigo Philbrick to take advantage of the lack of transparency in the art market to defraud art collectors, investors, and lenders in order to finance Philbrick’s art business. Newland has now admitted his guilt and awaits sentencing for his role in perpetrating this extensive fraud.”
According to the allegations in the Complaint, Indictment, and statements made in court:
From approximately 2016 through 2019, to finance his art business, PHILBRICK engaged in a scheme to defraud multiple individuals and entities in the art market located in the New York metropolitan area and abroad (the “Fraud Scheme”). NEWLAND was PHILBRICK’s business partner and financial adviser and conspired with PHILBRICK to perpetrate the Fraud Scheme. NEWLAND and PHILBRICK made material misrepresentations and omissions to art collectors, investors, and lenders to access valuable art and obtain sales proceeds, funding, and loans. NEWLAND and PHILBRICK knowingly misrepresented the ownership of certain artworks, for example, by selling a total of more than 100%ownership in an artwork to multiple individuals and entities without their knowledge and by selling artworks and/or using artworks as collateral on loans without the knowledge of co-owners and without disclosing the ownership interests of third parties to buyers and lenders.
Over the years, PHILBRICK obtained over $86 million in loans and sale proceeds in connection with the Fraud Scheme. Artworks about which NEWLAND and PHILBRICK made these fraudulent misrepresentations in furtherance of the Fraud Scheme include, among others, a 1982 painting by the artist Jean-Michel Basquiat titled “Humidity,” a 2010 untitled painting by the artist Christopher Wool, and an untitled 2012 painting by the artist Rudolf Stingel depicting the artist Pablo Picasso.
In the fall of 2019, NEWLAND and PHILBRICK’s Fraud Scheme collapsed as various investors and lenders learned about the material misrepresentations and omissions PHILBRICK and NEWLAND had made.
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NEWLAND, 45, a U.K. citizen residing in the United Kingdom, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum prison term of 20 years.
The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
PHILBRICK, 35, a U.S. citizen formerly residing in the United Kingdom, pled guilty to one count of wire fraud on November 18, 2021. On May 23, 2022, United States District Judge Sidney L. Stein sentenced PHILBRICK to 84 months in prison and two years of supervised release. PHILBRICK was further ordered to pay a forfeiture of $86,672,790 and restitution of $82,592,367.
Mr. Williams praised the investigative work of the Federal Bureau of Investigation’s Art Crime Team. He also thanked the U.S. Department of Justice’s Office of International Affairs and the U.S. Marshals Service for their support and assistance in the defendant’s extradition.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Jessica K. Feinstein and Cecilia E. Vogel are in charge of the prosecution.
Bucks County Man Indicted on Federal Charges for Assaulting a Reproductive Healthcare Clinic EscortRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Mark Houck, 48, of Kintnersville, PA, was charged by Indictment with a violation of the Freedom of Access to Clinic Entrances (FACE) Act, which makes it a federal crime to use force with the intent to injure, intimidate, and interfere with anyone because that person is a provider of reproductive health care. The defendant was arrested and made his initial appearance in federal court on these charges earlier today.
According to court documents, the defendant is alleged to have twice assaulted a man because he was a volunteer reproductive health care clinic escort. The charges stem from two separate incidents both on October 13, 2021, which occurred at the Planned Parenthood Elizabeth Blackwell Health Center on Locust Street in Philadelphia, where Houck allegedly assaulted the victim, a 72-year-old man, identified in the Indictment as “B.L.,” because B.L. was a volunteer escort at the reproductive health care clinic. In the first incident, B.L. was attempting to escort two patients exiting the clinic, when the defendant forcefully shoved B.L. to the ground. In the second incident, the defendant verbally confronted B.L. and forcefully shoved B.L. to the ground in front of the Planned Parenthood center, causing injuries to B.L. that required medical attention.
“Assault is always a serious offense, and under the FACE Act, if the victim is targeted because of their association with a reproductive healthcare clinic, it is a federal crime,” said U.S. Attorney Romero. “Our Office and the Department of Justice are committed to prosecuting crimes which threaten the safety and rights of all individuals.”
“Put simply, violence is never the answer,” said Jacqueline Maguire, Special Agent in Charge of the FBI's Philadelphia Division. “Violating the FACE Act by committing a physical assault is a serious crime for which the FBI will work to hold offenders accountable.”
If convicted, the defendant faces a maximum possible sentence of 11 years in prison, three years of supervised release, and fines of up to $350,000.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Anita Eve and DOJ Trial Attorney Sanjay Patel of the Civil Rights Division.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Bronson Man Sentenced to more than 10 years in Federal Prison for KidnappingRead the Press Release
A man who kidnapped his ex-girlfriend was sentenced today, to more than 10 years in federal prison.
Zachary Smith, 21, from Bronson, Iowa, received the prison term after a March 25, 2022, guilty plea to kidnapping.
Evidence in this case revealed that, before the instant offense, on May 11, 2021, Smith sent emails to his ex-girlfriend pretending to be his own father, advising her that Smith had committed suicide on May 8, 2021, and telling her to come to his former residence to claim some of her property. The ex-girlfriend and another girl went to the residence, where Smith – armed with a BB gun -- was waiting for them. He locked and chained the door shut and would not let either woman leave. Law enforcement rescued the women, and a no contact order was issued against Smith.
On June 3, 2021, Smith violated the order of protection, when he hid in the back seat of his ex-girlfriend’s car at about 5:00 a.m., and waited for her to come out of her South Sioux City home. When she did, she was joined by a juvenile female. Smith lay hidden in the car as the two women drove to a near-by school. When the juvenile female left the car to join her athletic practice, Smith sprang on his ex-girlfriend. He threatened her with a B.B. gun, drugged her with homemade chloroform, and kidnapped her, bringing her ultimately to a home in rural Bronson, Iowa. Additionally, Smith told his victim that he had friends watching her family, and they would hurt her family if she resisted. Ultimately, the victim escaped and fled. She flagged down a passing motorist who happened to be her aunt, who was in the area searching for her.
Smith was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Smith was sentenced to 121 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. Smith is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the South Sioux City, Nebraska Police Department, the Sioux City, Iowa Police Department, the Woodbury County Sheriff’s Office, the Federal Bureau of Investigation, and Homeland Security Investigations. This case was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4068.
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Boston Man Sentenced to Seven Years in Prison for Racketeering and Drug Trafficking ConspiraciesRead the Press Release
BOSTON – A Boston man was sentenced yesterday for racketeering (RICO) and drug trafficking conspiracies stemming from his involvement in the Boston-based street gang, NOB.
Joshua Teixeira, a/k/a “Trouble,” 27, was sentenced by U.S. District Court Judge Leo T. Sorokin to seven years in prison and three years of supervised release. In April 2022, Teixeira pleaded guilty to one count of RICO conspiracy and one count of conspiracy to distribute and to possess with intent to distribute controlled substances.
Teixeira is one of 10 defendants indicted in June 2020 as part of a federal sweep targeting numerous NOB street gang members and associates, all of whom have pleaded guilty to various charges and are scheduled to be sentenced in the upcoming months.
According to court documents, NOB – an abbreviation for the Norton/Olney/Barry streets in Dorchester – is a violent criminal enterprise whose members and associates are involved in numerous types of criminal activities throughout Massachusetts, including murders, attempted murders, armed robberies, drug trafficking, sex trafficking and illegal firearms offenses. In addition to multiple firearms and drugs recovered during the investigation, numerous contraband items including 11 firearms, over one kilogram of fentanyl (including over 2,000 fentanyl pills manufactured to appear as commercial oxycodone pills), a commercial pill press, over 15 pounds of marijuana and approximately $36,000 in cash were also seized.
Teixeira was an active and central member of the NOB gang who personally committed, planned and supported various crimes on behalf of the NOB gang including drug trafficking activities involving multiple pounds of marijuana. In May 2018, Teixeira drove with two other NOB members/associated into a rival gang territory during ongoing hostilities between the gangs. Teixeira was armed with a 9mm handgun and fired at least six rounds at a group of people in a residential neighborhood, leading to an exchange of gunfire. No one was hit by Teixeira’s gunfire. The Court determined this conduct constituted attempted murder and took it into consideration at sentencing.
First Assistant United States Attorney Joshua S. Levy; Boston Police Commissioner Michael Cox; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Douglas Bartlett, Acting U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; New Bedford Police Chief Joseph C. Cordeiro; Quincy Police Chief Paul Keenan; Randolph Police Chief Anthony Marag; Brockton Police Chief Brenda Perez; Stoughton Police Chief Donna McNamara; Suffolk County District Attorney Kevin Hayden; Suffolk County Sheriff Steven W. Tompkins; Plymouth County Sheriff Joseph D. McDonald, Jr.; Bristol County District Attorney Thomas M. Quinn III; and Norfolk County Sheriff Patrick W. McDermott made the announcement today. Assistant U.S. Attorneys Michael Crowley and Sarah Hoefle of the Organized Crime & Gang Unit prosecuted the case.
Boston Man Sentenced for Federal Firearm OffenseRead the Press Release
BOSTON – A Boston man was sentenced yesterday in federal court in Boston in connection with his illegal possession of ammunition.
Syrus Hampton, 32, was sentenced by U.S. District Court Judge Indira Talwani to 18 months in prison and 30 months of supervised release. The U.S. Attorney’s Office had requested 42 months in prison. In May 2021, Hampton pleaded guilty to one count of being a felon in possession of ammunition.
In January 2019, during a routine traffic stop by local law enforcement for a car lights violation, Hampton sped away from police and jumped out of his still-running minivan – causing the vehicle to run over a police officer’s foot and crash into two other cars, including one occupied by a pregnant woman and her children. Hampton was shortly apprehended and was found in possession of an Uzi-style machinegun firearm that had been made from a kit and bared no serial number (commonly known as a “ghost gun”) loaded with an extended magazine containing 20 rounds of ammunition and a bullet in the chamber. Hampton was prohibited from possessing ammunition due to a prior felony conviction punishable by more than one year in prison.
United States Attorney Rachael S. Rollins; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Commissioner Michael Cox made the announcement today. Assistant U.S. Attorneys Elianna J. Nuzum and Adam W. Deitch of Rollins’ Criminal Division prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Bloomfield Man Sentenced to 87 Months in Federal Prison for Drug and Gun OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that PHILLIP GARCIA, also known as “Flip,” 50, last residing in Bloomfield, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 87 months of imprisonment, followed by four years of supervised release, for narcotics distribution and firearm possession offenses.
According to court documents and statements made in court, an investigation by the FBI’s Northern Connecticut Gang Task Force revealed that Garcia sold cocaine, as well as fentanyl disguised as oxycodone pills, through a network of associates in the Hartford area. The investigation also revealed that Garcia unlawfully possessed firearms. Between July and December 2020, investigators made multiple controlled purchases of fentanyl pills and cocaine from Garcia and his associates. Investigators also acquired from Garcia two handguns, one of which was stolen, and firearm magazines.
Garcia was arrested on December 16, 2020. On February 14, 2022, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 40 grams or more of fentanyl and 500 grams or more of cocaine, and one count of possession of a firearm by a felon.
Garcia has been detained since his arrest.
Judge Shea also ordered Garcia to forfeit his 2018 Cadillac XTS, and $19,472 in cash.
The FBI’s Northern Connecticut Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
The case is being prosecuted by Assistant U.S. Attorneys Konstantin Lantsman and Brian Leaming, through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Austin-Area Man Sentenced to 48 Years in Federal Prison for Fraud and Money Laundering Violations in the Eastern District of TexasRead the Press Release
SHERMAN, Texas – A Leander man has been sentenced to 48 years in federal prison for fraud and money laundering violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
James Clark Nix, 73, was found guilty by a jury on April 21, 2022, of conspiracy to commit wire fraud, wire fraud, money laundering, and aiding and abetting. Nix was sentenced to 576 months in federal prison by U.S. District Judge Amos L. Mazzant on Sep. 22, 2022.
According to information presented at trial, James Nix and his son, Bradley Nix, used their businesses, AMIG and NECO, to defraud victim investors of at least $6 million, under the false promise of small business investments and high interest returns of up to 10 percent. Once in possession of the fraudulent funds, James Nix used the money for various expenses such as luxury homes, hotels, and vehicles. During the investigation, investigators lawfully seized a Maserati and Land Rover that were tied to James Nix’s fraudulent conduct. The jury convicted James Nix on all counts - conspiracy, wire fraud, and money laundering.
“James Nix conned hard working people out of their life savings in order to fund his luxurious lifestyle,” said U.S. Attorney Brit Featherston. “Nix left a trail of heartache and destruction through each of his victims, and this sentence ensures that he will never victimize another person again.”
“Mr. Nix’s conduct was uniquely sinister and deceptive. He obtained the trust of his clients, many of whom were his friends, over the course of decades. He manipulated this trust to obtain their life’s savings and 401ks, while promising them good investments that would provide them with a comfortable retirement. In reality, Mr. Nix was using this money to operate a Ponzi scheme and fund a life of luxury. Ultimately, Mr. Nix's lies and greed destroyed his clients’ financial futures and deprived them of their hard earned retirement,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “Investment fraud is a pervasive threat that affects all ages and demographics. We encourage the public to conduct due diligence before investing with an individual or business and review FBI online resources on business and investment fraud scams at fbi.gov.”
“Mr. Nix exploited his position as a personal accountant to gain the trust of investors, steal their hard-earned money, and unjustly enrich himself. His elaborate Ponzi scheme was like a ‘house of cards’ - the underlying structure fell apart and left investors in financial ruin,” said IRS Criminal Investigation Special Agent in Charge Christopher J. Altemus, Jr. of the Dallas Field Office. “This sentence reflects the egregiousness of Nix’s crimes and now Nix will spend the rest of his life in prison.”
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation and prosecuted by Assistant U.S. Attorneys from the Eastern District of Texas.
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Arizona Woman Sentenced to Six Years in Prison for Conspiracy to Damage the Dakota Access PipelineRead the Press Release
DES MOINES, IA – An Arizona woman was sentenced today in federal court to six years in prison for Conspiracy to Damage an Energy Facility. Ruby Katherine Montoya, age 32, was ordered to serve three years of supervised release to follow her prison term and pay $3,198,512.70 in restitution.
According to court documents, Montoya, and co-defendant Jessica Reznicek, as early as November 8, 2016, and continuing until May 2, 2017, conspired with other individuals to damage the Dakota Access Pipeline at several locations within the Southern District of Iowa, Northern District of Iowa, and the District of South Dakota. Specifically, Montoya admitted to damaging and attempting to damage the pipeline by: (1) using an oxyacetylene cutting torch to burn holes in the pipeline, and (2) setting fire to pipeline instrumentation and equipment in Mahaska, Boone, and Wapello Counties within the Southern District of Iowa.
U.S. Attorney Richard D. Westphal stated, “The sentence imposed today demonstrates that any crime of domestic terrorism will be aggressively investigated and prosecuted by the federal government. The seriousness of the defendant’s actions – that occurred multiple times, at different locations, resulting in over $3 million dollars in restitution – warranted the significant prison sentence imposed by the Court and should deter others who think of engaging in such criminal acts.”
Following the sentencing, FBI Omaha Special Agent in Charge Eugene Kowel said, “The sentence received by Ruby Montoya sends a clear message that those who commit violence through an act of domestic terrorism will be identified, investigated, and prosecuted. The FBI is committed to protecting the American people. We will continue to work with our law enforcement partners to bring domestic terrorists to justice.”
Montoya’s co-defendant, Jessica Reznicek, was sentenced to 96 months imprisonment on June 30, 2021.
This matter was investigated by the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Iowa Department of Public Safety, Fusion Center; Iowa State Fire Marshall; Des Moines Police Department; Sheriff’s Departments in Mahaska, Boone, Buena Vista, Cherokee, Jasper, Polk, Sioux, and Wapello Counties in Iowa; Lincoln County in South Dakota; and Minnehaha County in Minnesota. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Adams County Man Sentenced to 60 Months’ Imprisonment for Throwing A Molotov Cocktail at the Adams County CourthouseRead the Press Release
HARRISBURG—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Samson Yohe, age 30, of Gettysburg, Pennsylvania, was sentenced to 60 months in prison to be followed by three years of supervised release by U.S. District Court Judge Jennifer P. Wilson for malicious attempt to destroy a building by fire and explosive. Judge Wilson also ordered Yohe to pay restitution in the amount of $280.
According to United States Attorney Gerard M. Karam, on the evening of December 22, 2019, Yohe threw an incendiary device consisting of an antique bottle filled with an unidentified liquid, several matches, and a white cotton sock at a window of the Adams County Courthouse. The device did not ignite, but did damage the window causing $280 in damage.
The conviction was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Gettysburg Police Department. Assistant U.S. Attorneys Daryl F. Bloom and Scott R. Ford prosecuted the case.
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18-Year-Old Man Charged with High-Speed Flight from an Immigration CheckpointRead the Press Release
TUCSON, Ariz. – Oblin Jeremias Redondo-Lopez, 18, of Honduras, was arrested September 20, 2022, and charged by criminal complaint with High-Speed Flight from an Immigration Checkpoint and Illegal Entry into the United States. Redondo-Lopez had his initial appearance yesterday before United States Magistrate Judge Eric J. Markovich.
On Tuesday, a gold 2002 Buick Rendezvous drove through the United States Border Patrol checkpoint on West Arivaca Road near Amado, Arizona. The vehicle did not slow down or stop as required by the speed bumps, signage, and Arizona Department of Transportation regulations. Instead, the vehicle fled the checkpoint with agents in pursuit. The driver continued onto Interstate 10 traveling at an estimated 110 miles per hour in a 75 mile per hour zone when he was finally stopped by the Pinal County Sheriff’s Department on Interstate 10 near Picacho Peak. The driver was identified as Oblin Jeremias Redondo-Lopez.
A conviction for High-Speed Flight from an Immigration Checkpoint carries a maximum penalty of 5 years in prison, a fine of up to $250,000, or both.
A criminal complaint is simply the method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
Customs and Border Protection’s U.S. Border Patrol conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, is handling the prosecution.
CASE NUMBER: 22-00594MJ
RELEASE NUMBER: 2022-161_Redondo-Lopez
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
22 September 2022
West Virginia Man Charged with Federal Civil Rights Offenses for Sexual Assault of Two VictimsRead the Press Release
A former parole officer with the West Virginia Division of Corrections and Rehabilitation was arrested today after being charged in federal court with civil rights violations, obstruction of justice and making false statements to federal investigators.
Anthony DeMetro, 44, was charged in a seven-count indictment unsealed today, with five counts of acting under color of law to deprive individuals of their civil rights, one count of obstruction of justice and one count of false statements to federal investigators. The indictment alleges that, while DeMetro was acting in his official capacity as a parole officer, he sexually assaulted two victims on a total of five separate occasions. The indictment further alleges that DeMetro lied to a state investigator and to federal investigators about his sexual misconduct.
If convicted, DeMetro faces maximum penalties of life imprisonment on three of the civil rights counts, 20 years on the obstruction of justice count, five years on the false statements count and one year on each of the remaining civil rights counts.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney William S. Thompson for the Southern District of West Virginia and Special Agent in Charge Michael D. Nordwall of the FBI Pittsburgh Field Division made the announcement.
The FBI Pittsburgh Field Division investigated this case. Trial Attorneys Kathryn E. Gilbert and Nikhil Ramnaney of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Monica Coleman for the Southern District of West Virginia are prosecuting this case.
Anyone with information about Anthony DeMetro should contact the FBI’s Charleston Resident Agency at 304-346-2300.
An indictment is merely an allegation, and the defendant is presumed innocent unless proven guilty.
West Greenwich Man Detained in Seizure of Six Ghost Guns, Three Silencers, and AmmunitionRead the Press Release
PROVIDENCE – A West Greenwich man, a convicted felon prohibited from possessing a firearm and ammunition, is detained in federal custody after federal agents allegedly seized six “ghost guns,” three silencers, and more than one thousand rounds of ammunition from his home, announced United States Attorney Zachary A. Cunha.
It is alleged in court documents that in July, the United States Postal Inspection Service identified the residence of Walter Garbecki, 37, as being associated with at least seven purchases and deliveries of kits and firearm parts used to assemble “ghost guns,” firearms without serial numbers and other manufacturer or importer markings, rendering them difficult to trace by law enforcement officials. Additionally, it is alleged, Garbecki placed and received at least seven orders for various types of ammunition.
On September 20, 2022, agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the U.S. Postal Inspection Service executed a court-authorized search of Garbecki’s residence and seized four fully functioning ghost guns and two in various stage of assembly, three silencers, approximately 1,500 rounds of ammunition, and various parts and kits used to assemble “ghost guns.”
According to court records, Garbecki, was previously convicted in Rhode Island state court on charges of sale or possession of silencers; unlawful devices attached to a semi-automatic weapon allowing automatic fire; possession of a firearm while delivering or manufacturing a controlled substance; and drug trafficking. He was released from the Rhode Island Adult Correctional Institutions in September 2020 and is currently on state probation until September 2030.
Garbecki is charged by way of a federal criminal complaint with possession of firearms/ammunition by a felon and receive/possession of firearm silencers not registered. A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant United States Attorney Ronald R. Gendron.
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Vernon Man Sentenced to 33 Months in Prison for Illegal Gun PossessionRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that RONDELL CHAMBERS, 32, of Vernon, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 33 months of imprisonment, followed by three years of supervised release, for unlawfully possessing a loaded firearm.
According to court documents and statements made in court, on October 17, 2020, Hartford Police stopped a vehicle in which Chambers was a passenger in order to arrest Chambers on outstanding warrants. When Chambers stepped out of the vehicle, he dropped a satchel containing a loaded Bersa Firestorm .40 caliber pistol. Chambers was arrested and the firearm was seized.
Chambers’ criminal history includes multiple state felony convictions for drug and gun offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On May 27, 2022, Chambers pleaded guilty to unlawful possession of a firearm and ammunition by a felon.
Chambers, who is released on a $150,000 bond, is required to report to prison on November 11.
This matter was investigated by the Federal Bureau of Investigation’s Violent Crimes Task Force and the Hartford Police Department. The case was prosecuted by Assistant U.S. Attorneys Elena L. Coronado and David Sheldon through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. In May 2021, the Justice Department launched a violent crime reduction strategy strengthening PSN based on these core principles: Fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
United States Attorney for the District of Columbia Matthew M. Graves' Statement Regarding Identity Theft and Fraud Victim ResourcesRead the Press Release
With our ever-increasing use of online platforms, scammers continue to develop new and innovative ways to steal personal information from unsuspecting victims in order to commit fraud and identity theft. Whenever you are online, please be on the lookout for anything that appears to be an effort to trick you into either directly providing your personal information or providing access to your online accounts so that scammers can pore through your data on their own. If despite your best efforts, you fall victim to one of these crimes, our Office is providing a list of helpful resources to use to try to contain the damage from the theft:
https://www.justice.gov/usao-dc/identity-theft-victim-resources
In our efforts to pursue justice every day, our Office remains committed to devoting resources to the detection, investigation, and prosecution to the fullest extent of the law of those who try to steal personal information.
U.S. Attorney Urges the Public to Report Suspected Hurricane Fiona Relief Fraud and Cautions Those Who Would Seek to Illegally Profit from this DisasterRead the Press Release
SAN JUAN, Puerto Rico – United States Attorney W. Stephen Muldrow of the District of Puerto Rico today urged the public to report suspected fraud schemes related to disaster relief operations and federal funding for victims of Hurricane Fiona by calling National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or the NCDF's on-line portal for complaints at https://www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form.
In coordination with our federal and local law enforcement partners, the U.S. Attorney’s Office will investigate and prosecute hurricane relief schemes. The NCDF Hotline can receive and enter complaints into a centralized system that can be accessed by all U.S. Attorneys, as well as Justice Department litigating and law enforcement components to identify, investigate and prosecute fraud schemes.
United States Attorney Muldrow also cautioned those unscrupulous and predatory individuals and organizations who use this tragic event to take advantage of those in need and who seek to illegally profit from this natural disaster at the expense of the good and hard-working residents of Puerto Rico.
“The United States Attorney’s Office will aggressively prosecute those who commit disaster-related fraud, including those who willfully attempt to delay or disrupt the delivery of critical supplies to those in need, including water, gasoline, diesel fuel and other materials, so that they can unjustly enrich themselves,” said U.S. Attorney Muldrow. “We also take this opportunity to thank our first responders and those who have selflessly helped their neighbors and others in need. It is that spirit of resilience and compassion that typifies Puerto Rico.”
“Disaster Fraud and related acts of corruption hurt those who need it most in their time of greatest need. This should shock everyone’s conscience and move anyone who witnesses such acts to immediate action,” said Special Agent in Charge of the FBI San Juan Field Office, Joseph González. “The FBI is on alert, and we encourage anyone with information on disaster fraud and/or any related acts of corruption, to call 787-987-6500 or leave a tip online by visiting Tips.FBI.Gov - Don’t let criminals steal Puerto Rico’s chance to recover from the devastating effects of Hurricane Fiona.”
Some examples of disaster-related fraud schemes include:
- Impersonation of federal law enforcement officials
- Identity theft
- Fraudulent submission of claims to insurance companies and the federal government
- Fraudulent activity related to solicitations for donations and charitable giving
- Fraudulent activity related to individuals and organizations promising high investment returns from profits from recovery and cleanup efforts
- Price gouging
- Theft, looting, and other violent crime
Members of the public are reminded to apply a critical eye and do their due diligence before giving contributions to anyone soliciting donations on behalf of disaster victims. Solicitations can originate from e-mails, websites, door-to-door collections, mailings and telephone calls, and similar methods.
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Two Sentenced to Prison for Key Roles in Multi-State Methamphetamine Trafficking OrganizationRead the Press Release
CHARLESTON, W.Va. – Two men were sentenced to prison for roles in a drug trafficking organization (DTO) responsible for distributing large quantities of methamphetamine in Kanawha County, with one also sentenced for participating in a foiled Fourth of July 2021 murder scheme.
Ramon David Alston, 42, of Decatur, Georgia, was sentenced today to 12 years and six months in prison, to be followed by five years of supervised release, for conspiracy to distribute 500 or more grams of methamphetamine. Brian Dangelo Terry, 37, of Charleston was sentenced to 10 years in prison, to be followed by five years of supervised release, for conspiracy to distribute 500 or more grams of methamphetamine and for being a felon in possession of a firearm.
According to court documents and statements made in court, from 2020 until at least September 28, 2021, Alston sold 1-pound and multi-pound quantities of methamphetamine from his Georgia residence to individuals including co-defendants from Charleston, West Virginia, as part of the DTO. Alston admitted that he knew these customers intended to distribute methamphetamine in the Southern District of West Virginia.
Alston further admitted that co-defendants Terry and Jonathan Gregory Bush visited his residence separately on July 19, 2021, and that he sold Bush a kilogram of methamphetamine. Bush was later stopped by police and arrested after being found in possession of the methamphetamine. Alston admitted to having sold approximately 6 pounds of methamphetamine to Terry over the course of the DTO conspiracy.
Terry admitted to obtaining methamphetamine from Alston as well as from sources in Columbus, Ohio, for distribution in and around Charleston. Terry distributed more than 16 pounds of methamphetamine between March 2019 and August 3, 2021. Terry and co-defendant Treydan Leon Burks along with others pooled their money in order to obtain the drugs, used couriers to transport drugs and drug proceeds, and distributed the drugs to lower-level dealers and users.
Terry further admitted that he, Burks and co-defendants James Edward Bennett and Douglas Jonathan Wesley armed themselves at a Rand residence on July 4, 2021, and drove to Charleston’s West Side with the intent to murder someone. Alerted to the plot, police in marked cruisers converged on the area. The four men abandoned their vehicle in a Washington Street parking lot due to the increased police presence. Federal agents executed a search warrant on the vehicle and recovered four loaded firearms, including a Spike’s Tactical, Model SL15, .223-caliber pistol. Terry was aware that he was prohibited from possessing a firearm following felony convictions for malicious wounding on February 25, 2005, and possession with intent to deliver marijuana on March 8, 2011, both in Kanawha County Circuit Court.
The case is part of a long-term investigation of methamphetamine distribution that resulted in the conviction of 17 individuals for various drug and firearm offenses in three separate indictments. Alston, Terry and 12 others pleaded guilty, including Burks and Bennett. Wesley and remaining co-defendants Timothy Wayne Dodd and Leo Antoine Smith were convicted at trial.
United States Attorney Will Thompson made the announcement and commended the excellent investigative work by the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Marshals Service, the Charleston Police Department, the Metropolitan Drug Enforcement Network Team (MDENT), and the Putnam County Sheriff’s Office.
United States District Judge Joseph R. Goodwin imposed the sentences. Assistant United States Attorney Joshua Hanks prosecuted the case.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-172.
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Two New York Men Charged with Three Gunpoint Robberies and with Conspiracy to Commit Robberies in New Jersey, New York and PennsylvaniaRead the Press Release
NEWARK, N.J. – Two Brooklyn, New York men are charged with three gunpoint robberies of check cashing locations in different parts of New Jersey in 2021 and 2022 and with conspiracy to commit robberies in New Jersey, New York and Pennsylvania, U.S. Attorney Philip R. Sellinger announced.
Ramel Harris, 40, of Brooklyn, and Neville Brown, 38, of Brooklyn, are charged by complaint with one count of Conspiracy to Commit Hobbs Act Robbery, three counts of Hobbs Act Robbery, and one count of Using, Carrying, and Brandishing a Firearm During and in Relation to a Crime of Violence. Harris and Brown each made their initial appearance on September 6, 2022 before U.S. Magistrate Judge James B. Clark, III in Newark federal court and were detained.
According to documents filed in this case and statements made in court:
On several dates between January 2021 and January 2022, two individuals, later identified as Harris and Brown, attempted to rob a check cashing location in Nanuet, New York, and thereafter successfully robbed three check cashing locations in different parts of New Jersey while brandishing a firearm and using zip ties to restrain female employees at each location. During those robberies, Harris and Brown stole over $578,000.
During the subsequent investigation, law enforcement learned that the conspirators surveilled check cashing locations in the following locations: Mount Kisco, New York, Allentown, Pennsylvania and West Chester, Pennsylvania. Law enforcement collected an extensive amount of video surveillance footage that ultimately linked Harris and Brown to the robberies.
The Hobbs Act Robbery and Conspiracy to Commit Hobbs Act Robbery counts each carry a maximum potential penalty of 20 years in prison. The brandishing of a firearm during a crime of violence count carries a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years in prison, which must run consecutive to any other term of imprisonment imposed. Each count also carries a fine of up to $250,000 fine, or twice the gain or loss from the offenses, whichever is greatest.
U.S. Attorney Sellinger credited members of the FBI’s New Jersey field office, under the direction of Special Agent in Charge James E. Dennehy; members of the FBI’s New York field office, under the leadership of Assistant Director In Charge Michael J. Driscoll; members of the FBI’s Philadelphia field office, under the leadership of Special Agent in Charge Jacqueline Maguire; members of the Hackettstown Police Department, under the direction of Police Chief James Macaulay; members of the Old Bridge Police Department, under the leadership of Acting Chief of Police Donald F. Fritz, Jr.; members of the Parsippany-Troy Hills Police Department, under the leadership of Police Chief Richard Pantina; members of the Morris County Prosecutor’s Office, under the leadership of Prosecutor Robert J. Carroll; members of the Clarkstown Police Department, under the leadership of Police Chief Jeffrey Wanamaker; members of the Westchester County (New York) Department of Public Safety; and members of the Borough of West Chester (Pennsylvania) Police Department, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Benjamin Levin of the National Security Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Two Leaders and Member of Rollin’ 30s Crips Gang SentencedRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that defendants RANDY TORRES, a/k/a “Rico,” was sentenced to 39 and 1/2 years in prison and WALSTON OWEN, a/k/a “Purpose,” was sentenced to 39 and 1/2 years in prison today for their roles as leaders of the violent Rollin’ 30s Crips street gang. DERRICK RICHARDSON, a/k/a “J-ROCC,” who served under Torres in the Rollin’ 30s Crips, received a sentence of 24 and 1/2 years in prison today for shooting and killing Nestor Suazo, 25, on September 19, 2015, in the Bronx, New York. Richardson’s sentence was imposed to run concurrently with a previously imposed sentence of 11 years in prison for related Crips offenses. United States District Judge Victor Marrero imposed today’s sentences.
U.S. Attorney Damian Williams said: “Randy Torres and Walston Owen were leaders of a violent gang that terrorized the law-abiding citizens of the Bronx neighborhoods where the gang operated. Under their leadership, two individuals were killed, and others were caught in the crossfire of the gang’s shootings. One of those individuals, Nestor Suazo, was killed at Torres’s direction by Derrick Richardson. Nothing can undo the trauma experienced by his family and the many others affected by the defendants’ crimes, but justice requires that those responsible be held accountable. Today, Torres, Owen, and Richardson were rightly sentenced to decades in prison for their horrific crimes.”
According to the allegations contained in the Superseding Indictments, other documents in the public record, and the evidence at trial:
From at least in or about 2009 up to and including in or about 2017, in the Southern District of New York and elsewhere, RANDY TORRES, WALSTON OWEN, DERRICK RICHARDSON, and others were members or associates of a racketeering enterprise known as the “Rollin’ 30s,” also known as the “Harlem Mafia Crips” or “Dirt Gang.” In order to fund the enterprise, protect and expand its interests, and promote its standing, members and associates of the Rollin’ 30s committed, conspired, attempted, and threatened to commit acts of violence, including murder, attempted murder, and robbery; and they conspired to distribute and possess with intent to distribute narcotics.
TORRES, a “Big Homie,” described himself as “four levels from the top” of the Crips national leadership and oversaw the management of multiple Crips sets and hundreds of Crips members in New York City and elsewhere. TORRES was employed as a maintenance worker in a Bronx elementary school during part of the offense and used the school and its gym to hold gang meetings where he handled gang business. The evidence at trial showed that TORRES committed and ordered multiple acts of violence, including ordering a shooting in September 2015 that killed Nester Suazo, a/k/a “Smacc.” The shooting was carried out by RICHARDSON, a soldier in the Rollin’ 30s who served under Torres. RICHARDSON was captured on surveillance footage fleeing the scene of the murder and discarding the gun he used in the shooting.
OWEN was the leader of the “Stratford Avenue Rollin’ 30s,” a subset of the gang in the Bronx. As the head of that set, Owen stored guns for the gang, collected money, issued directives to younger or less powerful members, and participated in numerous acts of gang violence, including committing a shooting in May 2015 that injured two innocent bystanders and ordering a shooting that resulted in the March 2015 Bronx murder of another innocent bystander, Victor Chafla.
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TORRES and OWEN were convicted after trial before United States District Judge Victor Marrero in February 2022 of racketeering conspiracy offenses. OWEN was also convicted of attempted murder in aid of racketeering, assault resulting in serious bodily injury in aid of racketeering, and related firearms offenses. Those charges were brought in the case United States v. Torres, et al., 16 Cr. 809 (VM). As part of that same case, RICHARDSON previously pled guilty in January 2019 before Judge Marrero to narcotics conspiracy and racketeering conspiracy. In October 2021, RICHARDSON pled guilty in a related case to narcotics offenses in connection with Suazo’s homicide. Those charges were brought in the case Unites States v. Richardson, 20 Cr. 299 (VM).
In addition to the prison terms, Judge Marrero sentenced Torres, 41, of New York, to three years of supervised release, Owen, 38, of New York, to five years of supervised release, and Richardson, 29, of the Bronx, New York, to three years of supervised release.
Mr. Williams praised the outstanding investigative work of the New York City Police Department and the Department of Homeland Security, Homeland Security Investigations.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Anden Chow and Jacqueline C. Kelly are in charge of the prosecution.
Two Defendants Sentenced for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – LUIS RIVAS, age 59, a Colombian citizen who was living in New Orleans, and ANGEL SANTIAGO HERNANDEZ, age 49, a Colombian citizen who was living in Houston, were sentenced on September 21, 2022 before the Honorable Jane Triche Milazzo on charges of violating the Federal Controlled Substances Act, announced U.S. Attorney Duane A. Evans.
According to the court records, RIVAS, and HERNANDEZ each pleaded guilty to charges of possessing heroin and cocaine with the intent to distribute. HERNANDEZ admitted that he possessed approximately 3 kilograms of cocaine, a kilogram of heroin, and tens of thousands of dollars in cash during a traffic stop in August 2021. RIVAS admitted that he possessed with the intent to distribute a kilogram of heroin and several thousand dollars that police found at a residence in New Orleans where he was staying.
Judge Milazzo sentenced each defendant to 70 months in the Bureau of Prisons, to be followed by four years of supervised release. They were also ordered to pay a mandatory $100 special assessment fee.
This case was investigated by Special Agents of the Drug Enforcement Administration (DEA). The prosecution is being handled by Assistant United States Attorney David Haller.
Tucson Man Charged with Making a False Statement to Federal Agents During Investigation into Mass ShootingRead the Press Release
TUCSON, Ariz. – Last week, Josue Lopez Quintana, 25, of Tucson, Arizona, was charged by criminal complaint for Making a False Statement to Law Enforcement. Quintana had his initial appearance Monday before United States Magistrate Judge Eric J. Markovich.
On August 25, 2022, following a mass shooting in Tucson, Arizona that resulted in the death of four individuals, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) initiated an investigation into the acquisition of a firearm used in the shooting. According to the complaint, ATF was able to determine that the firearm’s lower receiver was purchased at a Federal Firearms Licensee (FFL) in Tucson, Arizona, by Quintana in November 2021. Quintana allegedly completed a form at the FFL stating that he was the true purchaser of the lower receiver, and that he was not acquiring the lower receiver on behalf of another person. On August 26, 2022, federal agents interviewed Quintana about the purchase, during which Quintana allegedly made false statements about the purchase of the lower receiver.
A conviction for Making a False Statement to Law Enforcement carries a maximum penalty of five years’ imprisonment, a $250,000 fine, or both.
A criminal complaint is merely an allegation of criminal conduct, not evidence. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
ATF is conducting the investigation in this case, with assistance from the Tucson Police Department and Homeland Security Investigations. The Financial Crimes and Public Corruption Section of the U.S. Attorney’s Office, District of Arizona, Tucson, is handling the prosecution.
CASE NUMBER: 22-00499MJ
RELEASE NUMBER: 2022-158_Quintana# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Three Business Owners Charged with Wiring Drug Trafficking Money to MexicoRead the Press Release
KANSAS CITY, Mo. – The owners of three money wiring businesses in the Kansas City metropolitan area are among five new defendants charged for their roles in a $4.7 million conspiracy to distribute more than 335 kilograms of methamphetamine and 22 kilograms of heroin, and to utilize wire transfers to send the drug-trafficking proceeds to Mexico.
Ana Lilia Leal-Martinez, 46, a citizen of Mexico residing in Overland Park, Kansas, Ana Paola Banda, 50, and Maria de Lourdes Carbajal, 53, both of whom are citizens of Mexico residing in Shawnee, Kan., Javier A. Alvarez, 24, of Phoenix, Arizona, and John A. Caylor, 53, of Kansas City, Mo., were charged in a 112-count superseding indictment returned under seal by a federal grand jury in Kansas City, Mo., on Tuesday, Sept. 20.
The superseding indictment replaces a 91-count indictment that was returned on June 1, 2022; it retains all of the original 39 defendants and charges, and includes five additional defendants and 21 additional counts. The superseding indictment was unsealed and made public today following the arrests and initial court appearances of the additional defendants.
Leal-Martinez, Banda, Carbajal, Alvarez and Caylor, along with all of the original defendants, are charged with participating in a conspiracy to distribute methamphetamine and heroin from Feb. 28, 2020, to June 1, 2022.
In addition to the drug-trafficking conspiracy, Leal-Martinez, Banda, and Carbajal – who each own a money wiring business – are charged with participating in a money-laundering conspiracy related to transporting or transferring the proceeds of the drug-trafficking conspiracy to Michoacán, Mexico. Leal-Martinez is the owner of Imagen Leal, located at 407 S. Parker in Olathe, Kan. Banda is the owner of La Bendicion 2, located at 2701 S. 47th St. in Kansas City, Kan. Carbajal is the owner of Azteca Imports, located at 11226 W. 75th St. in Overland Park, Kan.
Leal-Martinez, Banda, and Carbajal remain in federal custody pending a detention hearing. The government’s detention motion notes that drug-trafficking organizations that generate multi-million dollar revenues are unable to effectively operate without individuals who enable foreign drug suppliers to receive proceeds from controlled substances sold here in the United States. Money sent back to Michoacán, Mexico, further fuels the drug trade and attendant violence in communities in the United States and Mexico. Banda, Carbajal, and Leal-Martinez are citizens of Mexico unlawfully present in the United States, says the detention motion, and thus a flight risk.
In the motion for detention, the government states that investigators found numerous wire transfers that were sent in alias sender names, as directed by another member of the drug-trafficking organization, through these businesses during January, February, May, and June 2022 totaling approximately $138,914. Investigators believe this represents a very small portion of the actual drug proceeds sent by this organization.
On June 22, 2022, federal agents with IRS-Criminal Investigation and Homeland Security Investigations executed search warrants for evidence of money laundering at La Bendicion 2 and Azteca Imports. A search warrant had previously been executed at Imagen Leal.
The superseding indictment, like the original indictment, charges Mexican nationals Jose Jesus Sanchez-Mendez, also known as “Michoacano,” 41, Jesus Morales-Garcia, also known as “Don Jesus,” 43, Luis Eduardo Pineda-Zarao, 26, Juan Bernardo Galeana-Aguilar, 45, Baltazar Flores-Norzagaray, also known as “Sinaloa,” 50, Rafael Perez-Esquivel, 51, Jose Eliazar Valle-Rivera, 39, Uziel Morales-Baltazar, 31, Erick Fernando Martinez Contreras, also known as “Alex,” 34, Joel Enrique Roman, also known as “Pelon,” 44, Miguel Angel Juarez-Lopez, also known as “Chapo,” 47, Jonathan Zuniga-Villafuerte, 30, Sergio Armando Valencia-Ochoa, 36, Juan Humberto Lemus-Mejia, 24, Yuliana Del Carmen Perez Ciprian, 38, Trinidad Torres-Meza, 41, Miriam Veronica Bustos-Martinez, 37, and Liliana Valencia-Mendoza, 40, addresses unknown; Flor Gonzalez-Celestine, 52, of Kansas City, Mo.; and Jose Bernabe Zamora-Cardenas, also known as “Mufa,” 52, of Kansas City, Kan.
The superseding indictment, like the original indictment, also charges Tina Marie Cruces, 36, Lisbet Espino, 24, Frank Anthony Valdivia, 43, Melissa A. Bates, 55, and Monica L. McCubbin, 39, all of Kansas City, Mo.; Santiago Raul Mendieta-Sanchez, 41, a citizen of Honduras residing in Kansas City, Mo., Jennifer S. Lawson, 35, of Buckner, Mo.; Felton Stone Jr., 45, Donald R. Moses, also known as “Moe,” 51, Felipe Antonio Alcala, 30, Anthony C. Hughes, 37, Maria Nancy Valdez, 32, Ignacio Barragan-Vazquez, 32, Yvonne Guzman-Carpio, also known as “Morena,” 39, Kongmhink Her, 41, addresses unknown; Marco Antonio Salazar, also known as “Tono,” 29, and Nelson Alirio Garcia-Guerra, 28, both citizens of Guatemala, addresses unknown; Arantxa Sabrina Valderrama-Barros, also known as “Sabri,” 25, a citizen of Venezuela, address unknown; and Daniel Felipe Suarez-Reinoso, 30, a citizen of Colombia, address unknown.
Sanchez-Mendez, Zamora-Cardenas, Valencia-Ochoa, Valencia-Mendoza and Suarez-Reinoso, who were charged in the money-laundering conspiracy in the original indictment, are likewise charged in the superseding indictment.
Sanchez-Mendez and Morales-Garcia are also charged with engaging in a continuing criminal enterprise related to the drug-trafficking and money-laundering conspiracies and other offenses alleged in the indictment. The indictment alleges Sanchez-Mendez and Morales-Garcia occupied a position of organizer, supervisor, or manager of the ongoing criminal enterprise, from which they obtained substantial income.
The federal indictment charges various defendants in various counts of distributing heroin and fentanyl, distributing methamphetamine, possessing methamphetamine and heroin with the intent to distribute, possessing firearms in furtherance of a drug-trafficking crime, being an illegal alien in possession of a firearm, being a felon in possession of a firearm, money laundering, reentry by an illegal alien, and using cell phones to facilitate drug-trafficking crimes.
The indictment also contains forfeiture allegations that would require the defendants to forfeit to the government $4,718,700, which represents the proceeds of the alleged drug-trafficking conspiracy and criminal enterprise. The indictment alleges the conspiracy involved the distribution of more than 335.5 kilograms of methamphetamine, with an average street price of $300 per ounce, and more than 22.1 kilograms of heroin, with an average street price of $1,500 per ounce.
The forfeiture allegations would also require the defendants to forfeit to the government $277,440 that was seized by law enforcement officers from a vehicle driven by Suarez-Reinoso and $114,863 that was seized by law enforcement officers while executing search warrants at four Kansas City, Mo., residences.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorneys Byron H. Black, Patrick C. Edwards, and Mary Kate Butterfield. It was investigated by Homeland Security Investigations, U.S. Customs and Border Protection, the Drug Enforcement Administration, the Jackson County Drug Task Force, IRS-Criminal Investigation, the Kansas Bureau of Investigation, the Kansas City, Mo., Police Department, the Kansas City, Kan., Police Department, the Missouri State Highway Patrol, the Kansas Highway Patrol, the Independence, Mo., Police Department, the Minnesota Bureau of Criminal Apprehension, the Minnesota State Patrol, the Olmsted County, Minn., Sheriff’s Office, the Texas Department of Public Safety, the FBI, the Clay County, Mo., Sheriff’s Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service.
Organized Crime and Drug Enforcement Task Force
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
KC Metro Strike Force
This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
Straw Purchaser Sentenced to 58 Months in Federal PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN — David Tillman Deloach, 39, from Kalamazoo, Michigan was sentenced to serve 58 months in the Federal Bureau of Prisons for using a stolen identity to illegally purchase 28 handguns. Chief U.S. District Judge Hala Y. Jarbou also imposed 3 years of supervised release following his release from custody.
U.S. Attorney Mark Totten stated, “Mr. Deloach’s crimes are serious. By using another person’s identity over the course of approximately five months to purchase a cache of handguns, Mr. Deloach is fueling the epidemic of violence plaguing our communities. Mr. Deloach is arming convicted felons, like himself, who are legally prohibited from possessing firearms. My office, working with the ATF, will continue to target individuals who are straw purchasing firearms.”
A Special Agent from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Chicago Field Division began investigating Mr. Deloach after he was stopped by Indiana State Police for traffic violations and during a search of his car, troopers found two handguns. As a convicted felon, Mr. Deloach was prohibited from possessing any firearms. Three months later, Mr. Deloach was a passenger in a car stopped by Chicago Police, in which officers found five handguns. The ATF Special Agent discovered that between March and July 2021, Mr. Deloach, a convicted felon, used a stolen identity to purchase 28 handguns from three licensed gun stores in Western Michigan. Only three of these pistols have been seized by police; the location of vast majority of the handguns purchased by Mr. Deloach remains unknown.
On September 20, 2022, Mr. Deloach pleaded guilty to aggravated identity theft, being a felon in possession of firearms, and making false statements during the purchase of firearms. In sentencing Mr. Deloach to serve almost 5 years in federal prison, Judge Jarbou expressed her desire to protect the community and send a strong message of deterrence to others.
“Straw purchasers play a pivotal role in enabling the unlawful possession of guns and the violence that can follow,” said ATF Special Agent in Charge of the Chicago Field Division Kristen de Tineo. “ATF, in collaboration with our local, state and federal partners, is committed to working together to stop the flow of guns to individuals who cannot legally purchase them.”
This case was investigated by the ATF as part of the Department of Justice’s Project Safe Neighborhoods, a nationwide initiative to reduce violent crime. The U.S. Attorney’s Office, county prosecutor’s offices, and federal, state, local, and tribal law enforcement work closely together to identify and prosecute individuals responsible for driving violent crime in our communities to make neighborhoods safer for everyone. Individuals with information or concerns about violent crime or firearms offenses should contact local law enforcement. For more information about Project Safe Neighborhoods, visit: https://www.justice.gov/psn.
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Statement from United States Attorney Zachary A. Cunha Regarding United States v. JosephRead the Press Release
BOSTON – United States Attorney Zachary A. Cunha announces that, in accordance with an agreement reached with Massachusetts state District Court Judge Shelley M. Richmond Joseph, Judge Joseph has today referred herself to the Massachusetts Commission on Judicial Conduct, a forum that is designed to investigate and address judicial misconduct and to make final recommendations on discipline to the Supreme Judicial Court of Massachusetts, the state’s highest judicial body. As part of this agreement, Judge Joseph has also made factual admissions that the Commission can consider as part of its review, along with the public allegations previously made in this case.
Former court officer and co-defendant Wesley MacGregor, who is no longer employed by the Massachusetts state court system, has entered into a deferred prosecution agreement with the United States with respect to the single count of perjury with which he is charged.
In light of these agreements, the United States has filed a motion to dismiss three of the four counts of the pending indictment, and to defer prosecution on the final count against Mr. MacGregor. This will resolve the entirety of the pending federal prosecution.
“This case is about the conduct of a sitting state court judge, on the bench, in the course of her judicial duties. Its purpose has been to shed light on, and, as warranted, to secure accountability for that conduct,” said U.S. Attorney Cunha. “After I was assigned to oversee this matter, I undertook a full and comprehensive review of the evidence, the applicable law, and relevant equitable and prudential factors. Having done so, I have concluded that the interests of justice are best served by review of this matter before the body that oversees the conduct of Massachusetts state court judges, rather than in a continued federal criminal prosecution. The requirement that Judge Joseph refer herself to the Massachusetts Commission on Judicial Conduct and make certain factual admissions will ensure that review takes place.”
Judge Joseph and Mr. MacGregor were indicted in April 2019 in the District of Massachusetts on obstruction of justice charges for allegedly preventing an ICE Officer from taking custody of an alien defendant. Mr. MacGregor was also charged with one count of perjury.
Mr. Cunha, the United States Attorney for the District of Rhode Island, was assigned to oversee this matter by the Department of Justice upon recusal of the U.S. Attorney for the District of Massachusetts.
St. Louis County Man Admits Drug / Gun ChargeRead the Press Release
ST. LOUIS –A man from St. Louis County, Missouri on Thursday admitted involvement in a gun deal that turned into a police chase after a shooting.
Michael Joseph Monroe, 25, pleaded guilty in front of U.S. District Judge Matthew T. Schelp to one felony count of conspiracy to possess a firearm in furtherance of drug trafficking.
On Aug. 21, 2019, during a joint investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Louis County Police Department, Monroe sold a 9mm pistol for $325 to someone near a market in Dellwood.
Treyvon Perry, 20, of St. Louis, was in the passenger seat of the car, a black Audi A6 with heavily tinted windows and an Illinois temporary license tag. He was armed.
Investigators then learned that shortly before the gun deal, the passenger of a black Audi A6 matching the description of Monroe’s car fired multiple shots at another car on westbound Highway I-270 near Old Halls Ferry Road. The shooting victim’s vehicle was hit six times, including three times directly underneath the left driver’s side door.
Police soon located the Audi again, and Monroe fled, reaching speeds in excess of 100 mph in a chase that lasted about 12 miles before he crashed. During the chase, Monroe forced a marked police vehicle off the road.
Police found fentanyl, cocaine base, oxycodone and a mixture of other drugs in the car, as well as a single bullet.
Perry pleaded guilty in July to the same charge as Monroe. He is scheduled to be sentenced October 27. Monroe is scheduled to be sentenced December 20.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Louis County Police Department. Assistant U.S. Attorney Paul D’Agrosa prosecuted the case.
Springfield, Illinois, Man Sentenced to 42 Months’ Imprisonment for Possessing a Firearm as a Felon and COVID-19 FraudRead the Press Release
SPRINGFIELD, Ill. – A Springfield, Illinois, man, Carlos Wright, 32, of the 1800 block of 11th Street, was sentenced on September 21, 2022, to concurrent terms of 42 months’ imprisonment for possession of a firearm by a felon and 24 months’ imprisonment for wire fraud and false statements on loan applications, to be followed by concurrent three-year terms of supervised release. Additionally, Wright must pay restitution in the amount of $46,666.
At Wright’s sentencing hearing, U.S. District Judge Sue E. Myerscough found that Wright knowingly possessed a firearm, that is, a Century Arms Ras4, at a time when he knew he was a felon and was on probation. Additionally, Judge Myerscough found that Wright provided false information on applications to obtain pandemic Paycheck Protection Program (“PPP”) loans. Wright received a total of $41,666.00 in loan funds.
At the sentencing hearing, the government presented evidence that Wright does not own or operate any business and was not employed when he submitted the false applications. Further, at the time of his arrest for possessing a firearm as a felon, Wright had been driving around with the loaded firearm in the passenger seat.
A federal grand jury returned an indictment charging Wright with the weapons charge in June 2021 and returned a second indictment charging Wright with the fraud offenses in December 2021. Wright pleaded guilty in April 2022.
Wright faced the following statutory penalties: 1) for possession of a firearm as a felon: not more than 10 years in prison, not more than a $250,000 fine, and not more than three years of supervised release; 2) for wire fraud: not more than 20 years in prison, not more than a $250,000 fine, not more than three years of supervised release, and restitution in an amount ordered by the Court; and 3) for false statements on a loan application: not more than 30 years in prison, not more than five years of supervised release, not more than a $1,000,000 fine, and restitution in an amount ordered by the Court.
“We very much appreciate the efforts of law enforcement to remove firearms from the hands of those not legally permitted to possess them,” said Assistant U.S. Attorney Sierra Senor-Moore. “Additionally, we hope those who improperly obtained some of the limited funds available to help businesses during the pandemic realize the detriment they caused to their own community.”
“The U.S. Secret Service remains committed to investigating and arresting those that engage in crimes that undermine the integrity of the U.S. financial and payment systems,” said Stephen Webster, the Resident Agent in Charge of the U.S. Secret Service’s Springfield, Illinois, Office.
The investigation of the firearm charge was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Springfield Police Department. The wire fraud and false statements on loan application charges were investigated by the U.S. Secret Service. Assistant U.S. Attorney Sierra Senor-Moore represented the government in the prosecution.
Spanish Fork Man and His Two Businesses Charged with Wire Fraud and Money Laundering Offenses.Read the Press Release
SALT LAKE CITY – James Wolfgramm, aka Semisi Niu, aka James Vaka Niu, 43, of Spanish Fork, and two of his businesses, Bitex LLC (Bitex), and Ohana Capital Financial, Inc. (OCF), have been charged by a federal grand jury in the District of Utah with seven felony counts in connection with multiple financial fraud schemes. In the indictment, Wolfgramm is charged with five counts of wire fraud and two counts of money laundering. Bitex is named in two wire fraud counts. OCF is named in two wire fraud counts, as well as the two money laundering counts.
According to the allegations contained in the indictment, since at least 2018, Wolfgramm represented himself on social media and in private communications as a multimillionaire who made his fortune in cryptocurrency. To gain trust with victims and attract them to his businesses, Wolfgramm used images of cryptocurrency wallets holding millions of dollars’ worth of cryptocurrency, a suitcase full of cash, and social media posts of expensive sports cars Wolfgramm claimed to own. However, some of these images were believed to have been taken from websites and social media feeds of others
The indictment further alleges that Wolfgramm and Bitex collected nearly $1.7 million from two victims by purporting to sell a high-powered cryptocurrency mining machine – the “Bitex Blockbuster” – that did not actually exist. According to the indictment, Wolfgramm and Bitex displayed one of these purported machines in Bitex’s office space, connected to a monitor that appeared to display the machine’s real-time mining operations. In reality, the machine was fake, and the monitor displayed a pre-recorded loop that simply gave the appearance of mining activity.
The indictment also alleges that Wolfgramm and OCF marketed the business with the motto “Banking the Unbankable” and purported to offer financial services to entities ineligible for traditional bank accounts. According to the indictment, OCF’s websites falsely claimed to have a Board of Advisors and falsely promised that OCF customer funds were bonded. Under these pretenses, OCF received millions of dollars from customers who believed their money would be kept on deposit until the customers directed the release of their funds. Instead, Wolfgramm and OCF spent these funds on unrelated business expenses, including in one instance, providing a refund to a prior, unrelated depositor.
In the final scheme alleged in the indictment, Wolfgramm fraudulently agreed to purchase the Sports City complex and land in Draper for $15 million in 2021. Wolfgramm took possession of the property and took over billing for all Sports City customers – collecting close to $160,000 – without ever paying any utilities or expenses on the property and without making any of the promised payments to the seller on the sales contract. As part of the fraud, Wolfgramm gave the victims a $1 million check that bounced. Wolfgramm later claimed to have paid more than $255,000 in taxes for the property. According to the indictment, however, that payment failed, and Wolfgramm knew the account from which it was purportedly drawn had insufficient funds.
Wolfgramm, Bitex, and OCF are set to be arraigned in federal court on these charges.
If you believe you have been a victim of this crime, please call the FBI at (801) 579-1400.
Assistant United States Attorneys Aaron Clark and Stewart Young are prosecuting the case, and special agents from the FBI are conducting the investigation.
Allegations are not findings of guilt, and all defendants are presumed innocent until proven guilty at trial.
South Carolina Man Convicted of COVID-19 Relief FraudRead the Press Release
A federal jury in Atlanta convicted a South Carolina man today of fraudulently obtaining a $300,000 forgivable Paycheck Protection Program (PPP) loan guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents and evidence presented at trial, Travis Crosby, 32, of Wellford, conspired to submit a PPP loan application on behalf of Crosby’s company, Faithful Transport Services LLC (Faithful Transport). The loan application falsely inflated the number of employees and average monthly payroll for Faithful Transport, inducing a larger PPP loan than Crosby could legitimately obtain. Crosby and a co-conspirator also caused the submission of a forged tax document to support the false statements in the loan application. Crosby then engaged in a series of sham transactions with various individuals to make it appear that he was paying them payroll for work at Faithful Transport when, in reality, these individuals returned the vast majority of the funds to Crosby.
Crosby was convicted of conspiracy to commit bank fraud, bank fraud, making a false statement to a bank, and money laundering. He is scheduled to be sentenced on Jan. 10, 2023, and faces a maximum penalty of 30 years in prison for conspiracy to commit bank fraud, bank fraud, and making a false statement to a bank, and 20 years for money laundering. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Crosby is the 11th defendant to be convicted as part of the Justice Department’s prosecution of a $3 million, Atlanta-based PPP fraud ring. Previously, 10 other members of the scheme were charged by the Fraud Section and the U.S. Attorney’s Office for the Northern District of Georgia. All other defendants pleaded guilty prior to trial. To date, authorities have recovered approximately $1.2 million of the stolen money.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge Amaleka McCall-Brathwaite of the U.S. Small Business Administration, Office of Inspector General (SBA-OIG); and Special Agent in Charge Mark Morini Jr. of the U.S. Treasury Inspector General for Tax Administration (TIGTA) made the announcement.
The FBI Atlanta Field Office; the SBA-OIG; and the TIGTA investigated the case.
Trial Attorney Matthew Reilly of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Christopher J. Huber for the Northern District of Georgia are prosecuting the case and Trial Attorney Michael P. McCarthy of the Criminal Division’s Fraud Section and Special Assistant U.S. Attorney Diane D. Schulman for the Northern District of Georgia provided significant assistance.
Since the inception of the CARES Act, the Fraud Section has prosecuted over 150 defendants in more than 95 criminal cases and has seized over $75 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Sleep and Respiratory Equipment Manufacturer to Pay $1.2 Million to Resolve Allegations of Unlawful KickbacksRead the Press Release
Philips RS North America LLC, formerly known as Respironics, Inc. (“Respironics”), a nationwide manufacturer of sleep and respiratory durable medical equipment (“DME”), has agreed to pay $1,283,825.40 to settle allegations that it unlawfully induced referrals for its equipment in violation of the False Claims Act and Anti-Kickback Statute.
The government specifically alleged that, between December 2015 and December 2016, Respironics helped a DME supplier procure a twelve-month, interest-free loan that was fully guaranteed by Respironics. Under the arrangement, Respironics bore the full financial risk of non-collection on the loan in the event the DME supplier defaulted on the loan. The United States contended this arrangement violated the Anti-Kickback Statute and, in turn, the False Claims Act.
“Illegal kickbacks in our federal healthcare system create an unfair marketplace and the potential for medical decisions to be made based on financial incentive rather than what’s best for the patient,” said U.S. Attorney Timothy Duax. “Our office is committed to the full and fair enforcement of the Anti-Kickback Statute and False Claims Act.”
In addition to the civil settlement, Respironics entered into a five-year Corporate Integrity Agreement (CIA) with HHS-OIG. The CIA requires Respironics to implement and maintain a robust compliance program that includes, among other things, review of arrangements with referral sources and monitoring of Respironics’ sales force. The CIA also requires Respironics to retain an independent monitor, selected by the OIG, to assess the effectiveness of Respironics’ compliance systems.
This civil matter arose from an action brought under the whistleblower provisions of the False Claims Act. Pursuant to that Act and the settlement agreement, the whistleblower will share in the United States’ financial recovery.
The claims asserted against Respironics are allegations only; there was no determination or admission of liability.
The case was handled by Assistant United States Attorneys Jacob A. Schunk and Matthew K. Gillespie.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-cv-12-LTS-KEM.
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Sioux City Man Sentenced to Federal Prison for Illegal Possession of a FirearmRead the Press Release
A man who illegally possessed a firearm was sentenced today to more than 3 years in federal prison.
David Thompson, 46, from Sioux City, Iowa, received the prison term after an April 21, 2022, guilty plea to being a prohibited person in possession of a firearm. Thompson was previously convicted of the following felonies: (1) furnishing a controlled substance to an Inmate on March 19, 2010; (2) forgery on March 19, 2010; and (3) domestic abuse assault on January 19, 2020, all in the Woodbury County, Iowa District Court. Each of these convictions prohibit Thompson from lawfully possessing a gun. Additionally, Thompson had been convicted of a domestic abuse misdemeanor, and admitted to being an illegal user of drugs. Both of these facts also prohibited Thompson from lawfully possessing a gun.
Evidence in this case showed that on December 31, 2021, Thompson was drinking alcohol, smoking marijuana, and was upset. During an argument, Thompson went outside to the front yard of the residence and fired a pistol into the sky 11 times while in a crowded urban area. Family members, including five juveniles were present inside the residence. Thompson admitted the firearm was his, that he was a felon, and that he was using controlled substances, mainly marijuana.
Thompson was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Thompson was sentenced to 42 months’ imprisonment and must pay a special assessment of $100. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. Thompson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Sioux City, Iowa Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4013. Follow us on Twitter @USAO_NDIA.
Sheldon Man to Federal Prison for Illegal Possession of a FirearmRead the Press Release
Clinton Kreykes, 40, from Sheldon, Iowa, was sentenced on September 21, 2022, to two years in federal prison for illegal possession of a firearm by a prohibited person.
On March 23, 2022, Kreykes pled guilty to possession of a firearm by a prohibited person. At the plea and sentencing hearings, evidence showed that Kreykes was previously convicted of a felony offense, Burglary–3rd degree, and was a methamphetamine user. Both prohibit a person from legally possessing a gun. Evidence showed that on September 16, 2021, as part of Kreykes’ Iowa probation conditions, a compliance check was conducted at Kreykes’ camper in Sibley, Iowa. The probation officer located drug paraphernalia, and Kreykes was arrested. A search warrant was then issued and executed on the camper where law enforcement located loose prescription pills, a small baggy of methamphetamine, a Mossberg 20-gauge shotgun, shotgun shells, and additional items related to drug use.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Kreykes was sentenced to 24 months’ imprisonment and must serve a three-year term of supervised release following imprisonment. There is no parole in the federal system. Kreykes remains in custody of the United States Marshal until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by Osceola County Sheriff’s Office and Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4078. Follow us on Twitter @USAO_NDIA.
Satsuma Woman Sentenced to Two Years in Prison for EmbezzlmentRead the Press Release
MOBILE, AL – A Satsuma woman was sentenced this week to two years in prison for stealing money from her former employer.
According to court documents, Angela Clifton, 43, was the chief financial officer for a manufacturing company in Satsuma. In this role, Clifton had authorization to use multiple corporate credit cards for legitimate business expenses, and she was also in charge of the company’s payroll and 401k plan.
In 2018, the company discovered that Clifton, then the company’s Controller, had made over $25,000 worth of Amazon purchases for personal using corporate credit cards. None of these purchases were legitimate business expenses. Prior to her resignation, Clifton paid some of this money back to the company. However, after her resignation, an audit was conducted and the company discovered that Clifton was not only making personal purchases with the corporate credit cards, but also fraudulently receiving 401k matches from the company when she was not contributing to her plan, and was issuing to herself unauthorized paychecks and bonuses. In total, the company discovered that Clifton abused her role as Controller and fraudulently obtained over $200,000 in money and personal items between 2012 and 2018.Clifton pleaded guilty to three counts of wire fraud. At her sentencing hearing, Clifton testified and contested the restitution amount claimed by the company. The current Director of Finance for the company also testified as to the restitution amount. Senior Judge Callie V.S. Granade will determine the final restitution owed. The company’s CEO explained to the Court that Clifton’s actions not only damaged the company financially, but also severely damaged the culture of trust that once existed in his small business.
Clifton will serve 24 months in federal prison followed by three years of supervised release. She will also be ordered to pay full restitution to the victim company.
This case was investigated by the United States Secret Service Office in Mobile.Assistant U.S. Attorneys Christopher Bodnar and Marjorie Vincent-Tripp prosecuted the case on behalf of the United States.
Rhinelander Man Sentenced to 25 Years’ Imprisonment for Child Sex TraffickingRead the Press Release
United States Attorney Gregory J. Haanstad of the Eastern District of Wisconsin announced that on September 21, 2022, Paul S. Osterman (age: 36) of Rhinelander, Wisconsin, was sentenced to 25 years in federal prison by Senior District Judge William C. Griesbach
Osterman previously pled guilty to “sex trafficking of a child under the age of 14 years-old” in violation of Title 18, United States Code, Section 1591(a)(1). Osterman used social media applications and public wi-fi “hotspots” to communicate with children, often requesting to exchange money for sexual acts. In July 2019, Osterman travelled from his home in Rhinelander to the south side of Chicago, where he lured a minor with whom he had been communicating online into his vehicle. He then engaged in sexual acts with the child in exchange for money. Further investigation revealed that Osterman attempted or performed sexual acts with several minors throughout Wisconsin, Illinois, and Minnesota.
At the sentencing hearing, Judge Griesbach noted the horrendous nature of the crime and the strong need to deter Osterman from engaging in further abuse. The judge noted that Osterman’s crimes were not made in haste and that Osterman had “committed despicable acts over a lengthy period of time.” Upon the completion of his federal prison sentence, the defendant will serve the remainder of his life on supervised release. He will also be required to register as a sexual offender under state and federal law.
This case was investigated by the Wisconsin Department of Justice Division of Criminal Investigation, the Oneida County Sheriff’s Office, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Abbey M. Marzick and Daniel R. Humble.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Renton, Washington, man pleads guilty to unlawful possession of destructive devicesRead the Press Release
Seattle – A 34-year-old Renton, Washington, man pleaded guilty today in U.S. District Court in Seattle in connection with the plot to burn the Seattle Police Officers Guild building in downtown Seattle in September 2020, announced U.S. Attorney Nick Brown. Justin Christopher Moore will be sentenced by U.S. District Judge Lauren King on December 21, 2022.
According to the plea agreement, Moore admits he made and carried a box of 12 Molotov cocktails in a protest march to the Seattle Police Officers Guild (SPOG) building on Labor Day, September 7, 2020. Ultimately the marchers were moved away from the building in downtown Seattle, when police smelled gasoline and grew concerned about the intentions of protestors. The box containing the 12 gasoline devices was found in the parking lot next to the SPOG building. Using video from that day and from other protests, as well as information from the electronic devices of other co-conspirators, Moore was confirmed as the person seen carrying the box of destructive devices.
In June 2021, law enforcement executed a search warrant at Moore’s residence. They seized clothing that is consistent with the images of what Moore was wearing when he carried the Molotov cocktails. From the basement storage area they also recovered numerous items that are consistent with manufacturing explosive devices. Law enforcement recovered a notebook in which Moore had made entries related to the manufacturing of destructive devices and the ingredients necessary.
Unlawful possession of a destructive device is punishable by up to 10 years in prison.
The case was investigated by the FBI, the Bureau of Alcohol, Tobacco, Fireworks & Explosives (ATF), and the Seattle Police Department.
The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
Putnam County Woman Pleads Guilty to Federal Fraud CrimesRead the Press Release
HUNTINGTON, W.Va. – Laura Danielle Jackson, 32, of Hurricane, pleaded guilty today to two counts of mail fraud and one count of aggravated identity theft.
According to court documents and statements made in court, on September 17, 2018, Jackson was working at a South Charleston business when she obtained the personal identification information of an individual who applied for employment there. Between September 18, 2018, and September 27, 2018, Jackson applied for and received two separate credit cards with this individual’s stolen information and had the fraudulent credit cards mailed to her Hurricane residence. Jackson admitted that she activated the cards and purchased $10,626.70 in goods, merchandise and other items of value with them.
Jackson is scheduled to be sentenced on December 19, 2022, and faces a maximum penalty of 42 years in prison, six years of supervised release, and a $750,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Secret Service, the South Charleston Police Department, the Putnam County Sheriff’s Department and the West Virginia State Police.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Ryan Blackwell is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-16.
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Pittsburgh Felon Sentenced to 12½ Years in Prison for Drug and Gun Law ViolationsRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 12½ years (152 months) of imprisonment on his conviction of federal narcotics and firearms violations, United States Attorney Cindy K. Chung announced today.
Chief United States District Judge Mark Hornack imposed the sentence yesterday on James W. Johnson, age 37, formerly of the City’s Glen Hazel section.
According to information presented to the court and at the trial, on Dec. 30, 2016, Johnson was observed by Pittsburgh Bureau of Police officers selling fentanyl to an individual out of an abandoned residence on Renova Street in the Hazelwood section of Pittsburgh. Johnson is associated with the Hazelwood Mob gang that operates in that area. The law enforcement officers stopped the purchaser after the sale and recovered the purchased drugs. The individual identified the defendant as the seller of those drugs. Based on that information and other evidence, law enforcement obtained a search warrant for the abandoned Renova Street residence, which was executed on Jan. 2, 2017. When law enforcement executed the search warrant, they encountered the defendant leaving the abandoned residence and he had a key for the residence and two cellular telephones. A search of the residence revealed distribution quantities of fentanyl, cocaine and methamphetamine, along with a loaded and stolen handgun, a ballistic vest, and other evidence of drug trafficking. A search of the cellular telephones associated with the defendant revealed communications associated with drug trafficking and communications with the individual who purchased fentanyl on Dec. 30, 2016.
The defendant has a lengthy criminal history, including multiple felony convictions for prior drug trafficking and illegal gun possession. He was therefore precluded for possession of firearms or ammunition under federal law.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
United States Attorney Chung commended the Pittsburgh Bureau of Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Johnson.
Petrochemical Producer Altivia Agrees to Comprehensive Program to Reduce Harmful Air Pollution from Leaking Equipment to Resolve Clean Air Act Violations in OhioRead the Press Release
ALTIVIA Petrochemicals LLC has agreed to a consent decree that would require it to pay a $1,112,500 civil penalty and improve leak detection and repair work practices to settle alleged violations of the Clean Air Act (CAA) at a petrochemical manufacturing facility in Haverhill, Ohio. Emissions of hazardous air pollutants (HAPs), such as phenol, from leaking equipment impact the environment and may cause serious health effects including anorexia, vertigo and blood and liver effects.
According to the seven-count complaint, filed on Oct. 5, 2021, in the Southern District of Ohio, ALTIVIA allegedly violated CAA requirements to monitor and repair leaking equipment, demonstrate compliance with regulations applicable to chemical plants and control HAP emissions from equipment as required.
“This case and settlement show that the Department of Justice will litigate vigorously against companies that violate federal environmental law,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The significant civil penalty obtained will serve as deterrent against future non-compliance and the compliance program will require ALTIVIA to upgrade its monitoring and maintenance practices to help prevent future violations due to fugitive emissions.”
“Prevention or immediate detection and repair are critical when protecting health and the environment,” said U.S. Attorney Kenneth Parker for the Southern District of Ohio. “The Justice Department and the Environmental Protection Agency (EPA) are vigilantly ensuring compliance with the Clean Air Act and other environmental laws.”
“This consent decree will benefit communities in Ohio by reducing hazardous air pollution,” said EPA Region 5 Administrator Debra Shore. “The settlement, which resolves years of Clean Air Act violations, will require ALTIVIA to improve its Clean Air Act compliance efforts and to implement monitoring and repair best practices.”
In addition to paying a penalty, ALTIVIA will implement a comprehensive program to reduce emissions of HAPs from leaking equipment such as valves and connectors. These emissions, known as “fugitive” emissions because they are not discharged from a stack, but rather leak directly from equipment, are generally controlled through work practices, like monitoring and repairing leaks. The settlement requires ALTIVIA to implement enhanced work practices, including more frequent leak monitoring, better repair practices and innovative new efforts designed to prevent leaks.
In addition, the enhanced program requires ALTIVIA to replace valves with new “low emissions” valves or valve packing material designed to significantly reduce the likelihood of future leaks of HAPs. The settlement further requires ALTIVIA to control similar emissions from a previously uncontrolled process tank. The estimated cost of these controls is $730,000. The compliance program and engineered controls will reduce HAP emissions by up to 97 tons per year.
The consent decree is subject to a 30-day comment period and final approval by the court. A copy of the consent decree is available on the Department of Justice website at www.usdoj.gov/enrd/Consent_Decrees.html.
Peoria Man Sentenced to 28 Months in Federal Prison for Possessing a Firearm as a FelonRead the Press Release
PEORIA, Ill. – A Peoria, Illinois, man, Arnez J. Salazar, 26, of the 2800 block of Linn Street, was sentenced on September 21, 2022, to 28 months in federal prison for unlawful possession of a firearm by a convicted felon, to be followed by a three-year term of supervised release.
At the sentencing hearing before Senior U.S. District Judge Michael M. Mihm, the government presented evidence that on January 14, 2022, Peoria Police officers approached Salazar in a local pub in order to arrest him on an outstanding warrant. During the arrest, officers located a handgun inside the inner pocket of a coat Salazar wore into the pub and then hung on the back of his chair. The gun was a .380 caliber, semi-automatic pistol loaded with ammunition, including a round in the chamber. At the time, Salazar had multiple prior felony convictions prohibiting him from lawfully possessing a firearm.
A federal grand jury returned an indictment against Salazar in February 2022, following his arrest on a related federal criminal complaint in January 2022. Salazar pleaded guilty in May 2022. He has remained in the custody of the U.S. Marshals Service since his arrest.
The statutory penalties for possession of a firearm by a felon are up to 15 years’ imprisonment, up to five years of supervised release, and a possible fine of up to $250,000.
The Peoria Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant U.S. Attorney Ronald L. Hanna represented the government in the prosecution.
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.
Peoria Man Sentenced to 15 Years in Prison for Repeat Child Pornography OffenseRead the Press Release
PEORIA, Ill. – A Peoria, Illinois, man, David Robertson II, 39, of the 500 block of Voris Street, was sentenced on September 9, 2022, to 15 years in prison for receipt of child pornography, to be followed by a lifetime term of supervised release.
At the sentencing hearing in front of U.S. District Judge James E. Shadid, the government presented evidence that in September 2021 Robertson was serving a term of supervised release for a prior federal conviction for receipt of child pornography. At that time, one of the conditions of Robertson’s supervised release allowed probation officers to conduct periodic, unannounced exams of computer equipment and/or communications devices, including phones, due to the nature of his prior conviction. During a routine probation home visit in September 2021, Robertson turned over a mobile phone and a tablet that he had not reported to either his probation officer or on his sex offender registry. Robertson indicated to authorities that the electronic devices would contain child pornography, which was confirmed by a preliminary examination. The U.S. Secret Service subsequently obtained and executed a search warrant for Robertson’s devices, which confirmed Robertson had downloaded child pornography. In addition, the investigation revealed that Robertson owned three unregistered email accounts and a previously unreported phone number, along with a browser history of websites indicative of child pornography. In total, the evidence showed that Robertson’s devices contained 52 videos and 1,680 images of child pornography.
As noted previously, at the time of this offense, Robertson was serving a term of supervised release related to his prior 2010 federal conviction for receipt of child pornography (for which he also served a ten-year sentence of imprisonment). Robertson had previously violated the terms of his supervised release in that 2010 federal case when he possessed obscene visual representations of the sexual abuse of children; his release was revoked in June 2020, and he was sentenced to a term of imprisonment of twelve months and a day, to be followed by a ten-year term of supervised release, for that first violation. For the instant second violation of the supervised release term, Robertson was sentenced to twenty-four months’ imprisonment, to run concurrently to the 15-year sentence imposed in this case.
Robertson was indicted in December 2021 and entered a guilty plea in March 2022. He has remained in the custody of the U.S. Marshals Service since his arrest.
The statutory penalties for receipt of child pornography after a previous conviction for production, possession, or receipt of child pornography are 15 to 40 years imprisonment, to be followed by a term of supervised release of five years up to life. Special assessments under the Justice for Victims of Trafficking Act are also possible.
The United States Secret Service and Peoria County Sheriff’s Office investigated the case. Assistant U.S. Attorney Katherine G. Legge represented the government in the prosecution.
The case against Robertson was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Passaic County Man Sentenced to 84 Months in Prison for Receiving and Possessing Child PornographyRead the Press Release
NEWARK, N.J. – A Passaic County man was sentenced to 84 months in prison for receiving and possessing child pornography, U.S. Attorney Philip R. Sellinger announced.
Vaughn Tiedeman, 49, of West Milford, New Jersey, previously pleaded guilty to receipt and possession of child pornography before U.S. District Judge Susan D. Wigenton in Newark federal court. Judge Wigenton imposed the sentence on Sept. 21, 2022, in Newark federal court.
According to documents filed in this case and statements made in court:
Between July 2018 and April 2019, Tiedeman downloaded and possessed more than 600 images of child sexual abuse, including images of young children and depictions of violence.
In addition to the prison term, Judge Wigenton sentenced Tiedeman to 10 years of supervised release and order him to pay restitution of $9,000 to the victims.
U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Acting Special Agent in Charge Richard W. Reinhold, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorneys Sarah A. Sulkowski of the Violent Crime Unit and Francesca Liquori, Chief of the Narcotics/Organized Crime and Drug Enforcement Task Force Unit, in Newark.
Defense counsel: Stephen Turano Esq., Newark
Parkville Man Sentenced for $335 Million Fraud, $615,000 Tax ViolationsRead the Press Release
KANSAS CITY, Mo. – A Parkville, Mo., man who was charged in two federal cases was sentenced in federal court today for his role in a $335 million scheme to defraud federal programs that award contracts to firms owned by minorities, veterans, and service-disabled veterans, and in a separate case to filing false tax returns that cheated the government out of more than $615,000 in taxes owed.
“This defendant pocketed millions of dollars in profits that should have gone to firms led by disabled veterans and minority owners,” said U.S. Attorney Teresa Moore. “He not only stole contracts from those firms, he cheated on his taxes and thus stole from honest citizens by not paying his fair share. Now he will go to prison and he will pay back every dollar gained through fraud and deception.”
Patrick Michael Dingle, 51, was sentenced by U.S. District Judge Roseann Ketchmark to eight years in federal prison without parole. The court also ordered Dingle to forfeit to the government $4,659,061, which represents his profit from the scheme. The court also ordered Dingle to pay $615,847 in restitution to the Internal Revenue Service and $82,704 in restitution to the Missouri Department of Revenue.
“The defendant’s actions impacted small business owners and veterans, hindered economic welfare and undermined the public’s faith in programs intended to help those who need them. The Department of Defense (DoD) Office of Inspector General, Defense Criminal Investigative Service and our law enforcement partners are dedicated to protecting the integrity of the procurement process and holding violators accountable,” said Special Agent in Charge Michael Mentavlos, DCIS Southwest Field Office. “We take these matters seriously and will continue to aggressively investigate fraud and corruption allegations that impact the DoD.”
“Conspiring to fraudulently obtain millions of dollars in government contracts from programs designed to benefit service-disabled veteran business owners steals opportunities from the deserving and lines the pockets of the greedy,” said Special Agent in Charge Gregory Billingsley with the Department of Veterans Affairs Office of Inspector General’s Central Field Office. “The VA OIG thanks the Department of Justice and our law enforcement partners for their joint efforts to achieve justice in this case.”
“Defrauding the government is never acceptable, especially when taking advantage of programs designed to assist those minorities and veterans most in need,” said IRS Criminal Investigation Acting Special Agent in Charge Charles Miller. “IRS-CI is proud to partner in these investigations to keep egregious schemes like this at bay.”
On Sept. 13, 2021, Dingle pleaded guilty to the charges contained in both federal cases. Dingle pleaded guilty to one count of conspiracy to commit wire and major program fraud. Dingle also pleaded guilty, in a separate case, to one count of filing a false tax return.
$335 Million Fraud Conspiracy
Dingle admitted that he conspired with Matthew C. McPherson, 46, of Olathe, Kansas, to fraudulently obtain contracts set aside by the federal government for award to small businesses owned and controlled by veterans, service-disabled veterans and certified minorities.
Dingle was the operations manager for Zieson Construction Company located in North Kansas City, Mo. Dingle and his co-conspirators controlled and operated Zieson, which was originally formed in 2009 with Stephon Ziegler, 61, of Weatherby Lake – an African-American service-disabled veteran – as the nominal owner. Zieson’s primary business was obtaining federal construction contracts set aside for award to small businesses owned and controlled by service-disabled veterans or certified minorities. However, Ziegler did not control the day-to-day operations or the long-term decision making of Zieson. Dingle and his co-conspirators actually controlled and operated Zieson, and received most of the profits from Zieson.
Ziegler signed Zieson checks when requested to do so, signed bids for government jobs when requested to do so and served as a courier of checks and invoices when requested to do so. Ziegler did not participate in any way in the management and control of either day-to-day operations or long-term decision-making for Zieson.
Dingle and McPherson were not eligible for these set-aside contracts because they were not certified minorities or veterans. Although Zieson was not eligible, the firm received approximately 199 federal contracts set aside for award to minority-owned small businesses and veteran-owned small businesses between 2009 and 2018. The government paid Zieson approximately $335 million for those contracts, for which conspirators gained approximately $15 million in profit. Several of the set-aside contracts awarded to Zieson were valued in excess of $1 million, including a contract at Topeka, Kan., awarded on July 13, 2012, valued at approximately $4,125,800.
Dingle, McPherson, and others submitted false and fraudulent Past Performance Questionnaires in support of Zieson bids for set aside contracts.
McPherson was sentenced on Jan. 5, 2022, to two years and four months in federal prison without parole after pleading guilty to one count of conspiracy to commit wire fraud and major program fraud. He was ordered to forfeit to the government $5,516,786, which represents his share of the fraud proceeds.
Ziegler was sentenced on May 12, 2022, to 12 months in federal prison without parole after pleading guilty to making a false statement to the U.S. Department of Veterans Affairs.
False Tax Returns
Dingle also pleaded guilty, in a separate case, to filing a false tax return. Dingle admitted that he claimed $799,425 in fraudulent business expenses on his tax return for 2016. As a result of the false and fraudulent expenses offset on Dingle’s 2016 tax return, the government suffered a loss of approximately $349,784.
Dingle also admitted that he filed false tax returns over a four-year period from 2013 to 2016, which resulted in a total loss to the government of $615,847.
This case was prosecuted by Assistant U.S. Attorneys Paul S. Becker and Stacey Perkins Rock. It was investigated by the Department of Veterans Affairs, Office of Inspector General; the Department of Defense Criminal Investigative Service; the U.S. General Services Administration, Office of Inspector General; the U.S. Small Business Administration, Office of Inspector General; the Army Criminal Investigation Command, Major Procurement Fraud Unit; the Department of Agriculture, Office of Inspector General; IRS-Criminal Investigation; the U.S. Secret Service; the Air Force Office of Special Investigations, Procurement Fraud; the Naval Criminal Investigative Service; the Defense Contract Audit Agency - Operations Investigative Support (OIS); the U.S. Department of Labor, Office of Inspector General; and the Department of Labor, Employee Benefits Security Administration (EBSA).
Owner of Commercial Flooring Contractor Pleads Guilty to Participating in Kickback Scheme to Defraud a U.S. Army FacilityRead the Press Release
The owner of a Fairbanks, Alaska, commercial flooring company, pleaded guilty on Sept. 22 for his role in a conspiracy to provide kickbacks related to contracts for commercial flooring services at a U.S. Army Facility.
Benjamin W. McCulloch pleaded guilty to five-count felony charges filed on Aug. 25, 2022, in the U.S. District Court for the District of Alaska. According to the plea, from March 2016 to March 2021, McCulloch conspired to pay kickbacks to an employee of a prime contractor related to flooring construction contracts administered by the U.S. Army at Fort Wainwright. The charges state that McCulloch conspired to inflate the costs of four flooring construction subcontracts, and then provided the proceeds to his co-conspirator as kickbacks. During the five-year scheme, McCullough paid over $100,000 in kickbacks.
“When subcontractors and prime contractors at U.S. Army facilities collude, they undermine competition for government contracts and waste public funds intended to bolster our national defense,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “The division and our law enforcement partners will bring to justice criminals who cheat on government contracts.”
“Those who engage in fraudulent kickback schemes undermine the government’s competitive contracting practices, and harm American taxpayers in the process,” said Special Agent in Charge Antony Jung of the FBI’s Anchorage Field Office. “Detecting and disrupting these schemes will always be a priority for the FBI, and together with our partners, we will hold offenders accountable.”
“Today’s plea is a fitting end for those who conspire to defraud the U.S. Army,” said Special Agent in Charge L. Scott Moreland of the U.S. Army Criminal Investigation Division’s Major Procurement Fraud Field Office. “The Army CID’s Major Procurement Fraud Field Office is proud to work with our federal law enforcement partners to protect the coffers of the U.S. government from those who break the law and threaten economic damage to the U.S. Army.”
“The government contracting process is supposed to be a healthy competition, not a rigged match with illegal kickbacks thrown in,” said Special Agent in Charge Bret Kressin of the IRS-Criminal Investigation, Seattle Field Office. “Mr. McCulloch’s greed not only undermined the U.S. Army, but it hurt our communities when the stolen funds went directly to line his coconspirators’ pockets.”
“Mr. McCulloch’s guilty plea is a crucial step forward in holding him, and potentially others, accountable for his illegal efforts to enrich himself and others by willfully committing a years-long fraud against the U.S. Army and American taxpayer,” said Special Agent in Charge Bryan D. Denny of the Department of Defense, Office of Inspector General (DOD-OIG), Defense Criminal Investigative Service (DCIS), Western Field Office. “DCIS and our partners will continually seek to identify and eliminate kickback schemes, such as those utilized by Mr. McCulloch, because they corrupt the DoD procurement system by unlawfully suppressing competition and increasing costs.”
The charges to which McCulloch pleaded guilty carry a maximum penalty of ten years in prison and a fine of $250,000. The fine for the anti-kickback conspiracy charge may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine. In addition to his guilty plea, McCulloch has agreed to pay restitution.
The Antitrust Division’s San Francisco Office, the U.S. Attorney’s Office for the District of Alaska, the FBI’s Anchorage Field Office, the U.S. Army Criminal Investigation Division’s Major Procurement Fraud Field Office, the DCIS’s Western Field Office in Seattle, and the IRS’s Criminal-Investigation Seattle Office are investigating this case.
Anyone with information in connection with this investigation is urged to contact the Antitrust Division’s San Francisco Office at 415-934-5300, the Antitrust Division’s Citizen Complaint Center at 888-647-3258 or http://www.justice.gov/atr/contact/newcase.html, or the FBI’s Anchorage Field Office at 907-276-4441.
In November 2019, the Department of Justice created the Procurement Collusion Strike Force (PCSF), a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state and local. To learn more about the PCSF, or to report information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to federal government contracts, go to https://www.justice.gov/procurement-collusion-strike-force.
Organizer of Asheville Gun Store Burglary Is Sentenced to More Than 19 Years in PrisonRead the Press Release
ASHEVILLE, N.C. – Jesse Lynn Williams, 34, of Asheville, was sentenced to 235 months in prison today for his role in the burglary of an Asheville gun store, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Chief U.S. District Judge Martin Reidinger also ordered Williams to serve three years under court supervision after he is released from prison.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief David Zack of the Asheville Police Department (APD) join U.S. Attorney King in making today’s announcement.
According to filed court documents and today’s sentencing hearing, Williams organized the burglary of Carolina Guns and Gear West, LLC (Carolina Guns and Gear), a Federal Firearms Licensee (FFL) located at 3106 Sweeten Creek Road, in Asheville. Williams recruited his two co-defendants, Lyron Deshawn Greenlee and Alexa Rae Basillo, to assist him with the burglary. Court records show that on January 7, 2022, Williams broke into the gun store and stole 33 firearms, while Greenlee and Bassillo served as lookouts or drivers during the burglary.
As part of the planning and preparation for the burglary, Williams and Bassillo customized satellite map imagery of the area surrounding the gun store, which diagrammed the location of the store and avenues of approach and escape near the store. The maps also identified where co-conspirators would be stationed as lookouts. Court records also show that Williams, assisted by Bassillo, acquired tools and equipment for the break-in, including two-way radios which co-conspirators used to communicate over the course of the burglary.
According to court documents, immediately after the burglary, Williams, Greenlee, and Bassillo traveled to Greenlee’s residence, where they divvied up the stolen firearms. Over the course of the investigation, law enforcement determined that Williams received 15 or 16 of the stolen firearms. To date, law enforcement have recovered eight of the 33 stolen firearms.
On January 10, 2022, law enforcement arrested Williams and Bassillo while the two were in Bassillo’s parked vehicle. At the time of the arrest, law enforcement recovered from the vehicle a firearm stolen from the gun store, a crowbar, bolt cutters, and other items used in the burglary, a homemade silencer, a loaded pistol, and a loaded SKS rifle that belonged to Williams.
On April 13, 2022, Williams pleaded guilty to theft of firearms from an FFL and aiding and abetting, and possession of a firearm by a convicted felon. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. Greenlee was sentenced last week to eight and a half years in prison. Bassillo is currently awaiting sentencing.
In making today’s announcement U.S. Attorney King thanked the ATF and APD for their investigation of the case.
The U.S. Attorney’s Office in Asheville is handling the prosecution.
Orange County Man Charged with Interfering with Flight Crew After Assault on Flight Attendant Was Captured on VideoRead the Press Release
LOS ANGELES – An Orange County man was charged today in a federal criminal complaint that alleges he punched a flight attendant in the back of the head during a flight from Mexico to Los Angeles – an assault that a fellow passenger recorded on video.
Alexander Tung Cuu Le, 33, of Westminster, is charged with one count of interference with flight crew members and attendants, a crime that carries a statutory maximum sentence of 20 years in federal prison.
Le is expected to make his initial appearance this afternoon in United States District Court in downtown Los Angeles.
According to an affidavit filed with the complaint, on September 21, Le flew on American Airlines flight 377 from San José del Cabo, Mexico to Los Angeles International Airport. Approximately 20 minutes after takeoff, Le exited his seat while flight attendants were conducting food and beverage service. Le grabbed one flight attendant’s left shoulder from behind and asked for coffee. Moments later, Le grabbed both of the flight attendant’s shoulders from behind. After the flight attendant stepped back and put up a defensive posture, Le walked to the front of the airplane.
Le then allegedly loitered near the first-class cabin and then sat in an unoccupied aisle near the wall dividing the first-class cabin and the main cabin of the aircraft. A different flight attendant approached Le and requested that Le return to his assigned seat. Le did not comply and allegedly stood up and assumed a fighting stance towards the flight attendant by making closed fists with both of his hands, which the flight attendant interpreted as a threat.
Around this time, Le allegedly swung his arm at the flight attendant and missed. The flight attendant decided to report Le’s behavior to the pilot, turned away from Le and walked towards the front of the airplane. At this time, Le rushed toward the flight attendant and punched him in the back of the head, which was witnessed by several passengers, including one who filmed the attack, according to the affidavit.
After assaulting the flight attendant, Le fled toward the back of the airplane. Several passengers apprehended Le near an exit row. Out of safety concerns, Le was moved to a different row, and his hands and legs were cuffed. Le continuously unbuckled his seatbelt, causing flight attendants to restrain him to the seat with seatbelt extenders.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The FBI is investigating this matter.
Assistant United States Attorney Kellye Ng-McCullough of the General Crimes Section is prosecuting this case.
Nurse Sentenced to Prison for Tampering with Fentanyl VialsRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that BRYAN WILSON, 40, of Madison, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 24 months of imprisonment, followed by three years of supervised release, for tampering with fentanyl vials at the company where he was employed. Judge Shea also ordered Wilson to pay a $5,000 fine.
According to court documents and statements made in court, Wilson was employed as a nurse by The Vascular Experts, a Connecticut company that performs outpatient medical procedures. As part of his duties, Wilson was responsible for conducting sedations on patients and he had access to the secure area in his workplace that contained vials of drugs used as anesthetics, including fentanyl. In August and September 2021, Wilson took vials of fentanyl that were intended to be used to formulate infusion for patients. He used a syringe to withdraw the fentanyl from the vials and reinjected saline into the vials so that it would appear as if none of the narcotics were missing. When another nurse at the company noticed that vials had been tampered with, and Wilson was subsequently questioned by company officials, Wilson admitted that he stole the fentanyl and used it to treat a medical condition.
On February 10, 2022, Wilson pleaded guilty to one count of tampering with a consumer product.
Wilson, who is released on bond, is required to report to prison on January 9, 2023.
Wilson has surrendered his nursing license.
This matter was investigated by the Food and Drug Administration, Office of Criminal Investigations; the DEA’s Hartford Diversion Control Division; and the Connecticut Department of Consumer Protection, Drug Control Division. The case was prosecuted by Assistant U.S. Attorney Ray Miller.
North Carolina Felon Sentenced to 52 Months for Illegally Possessing FirearmRead the Press Release
ALBANY, NEW YORK – Duquan McLeod, age 32, of Rockingham, North Carolina, was sentenced today to 52 months in prison for unlawfully possessing a loaded pistol as a felon.
The announcement was made by United States Attorney Carla B. Freedman and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
As part of his previously entered guilty plea, McLeod admitted that he possessed a 9mm semi-automatic pistol when Schenectady Police Department officers encountered him in downtown Schenectady on March 16, 2021. The patrol officers, who were responding to a call of individuals fighting, observed McLeod drop the pistol to the ground when they approached him. The pistol was equipped with a fully loaded 30-round magazine. A prior felony conviction for armed robbery prevented McLeod from legally possessing the firearm.
United States District Judge Glenn T. Suddaby also ordered McLeod to serve a 3-year term of supervised release following his release from prison.
This case was investigated by ATF and the Schenectady Police Department, with assistance from the Schenectady County District Attorney’s Office. This case was prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
This case is part of Project Safe Neighborhoods (PSN), 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.
North Alabama Law Enforcement Actions to Combat Fentanyl Distribution Leads to Five Men Charged in Federal IndictmentsRead the Press Release
BIRMINGHAM, Ala. – Federal grand jury indictments have been unsealed charging five men, in separate and unrelated incidents, for possessing and/or distributing fentanyl, announced U.S. Attorney Prim F. Escalona and Drug Enforcement Administration Special Agent in Charge Brad L. Byerley.
Working with state and local law enforcement, last month a federal grand jury indicted five individuals on federal charges related to possession or distribution of fentanyl, including distribution of fentanyl that resulted in death:
- A one-count indictment filed in U.S. District Court charges Theophylis Rayvon Pride aka OPI, 33, of Huntsville, with distribution of fentanyl resulting in death in July 2021 in Madison County.
- A two-count indictment filed in U.S. District Court charges JT Toombs, III, 37, of Alexander City, and Demarcus Leon Hill, 40, of Hoover, with conspiracy to possess with intent to distribute 40 grams or more of fentanyl in August 2021 in Talladega County.
- A six-count indictment filed in U.S. District Court charges Azarious Taron Williams, 25, and Darien Avante Arnold, 22, both of Florence, with conspiracy to distribute and possession with the intent to distribute methamphetamine and a substance containing fentanyl between November 2020 and June 2022 in Lauderdale County.
DEA investigated the cases along with Alabama Law Enforcement Agency, Huntsville Police Department, Lauderdale County Drug Task Force, and the Franklin County Sheriff’s Office. Assistant United States Attorneys Robert J. Becher, M. Blake Milner, and John M. Hundscheid are prosecuting the cases.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Nigerian National Residing in Cleveland Sentenced to Prison for Serving as “Money Mule” in Financial Fraud SchemesRead the Press Release
CLEVELAND – A Nigerian national residing in Cleveland was sentenced today by U.S. District Judge Donald C. Nugent to two and a half years in prison and ordered to pay $438,604.89 in restitution after she pleaded guilty to her role as a “money mule” for various financial fraud schemes that targeted individuals in the United States and elsewhere.
According to court documents, from June 2018 to August 2020, Deborah Anderson, 30, of Nigeria, was part of a financial fraud conspiracy that obtained money from victims through fraudulent investment opportunities, romance scams, fraudulent sales or rentals and other types of schemes.
Court documents show that Anderson served as a “money mule” or someone who transfers or moves illegally acquired money on behalf of someone else. As part of the conspiracy, victims transferred money to accounts controlled by Anderson, who, in turn, transferred the funds to various unknown individuals in Nigeria.
Additionally, court documents state that Anderson used victim funds to purchase personal items and later exported those items to Nigeria.
In total, victims suffered a combined loss of $438,604.89 as a result of the various scams.
Anderson pleaded guilty to one count of wire fraud in June 2022. As part of the sentencing, Anderson was ordered to surrender to the Bureau of Immigration and Customs Enforcement, U.S. Department of Homeland Security, at the conclusion of her sentence.
The investigation preceding the indictment was conducted by Homeland Security Investigations (HSI). This case was prosecuted by Assistant U.S. Attorneys Brian M. McDonough and Kathryn Gaughan Andrachik.
Nacogdoches Man Sentenced for Federal Drug Trafficking and Firearms ViolationsRead the Press Release
BEAUMONT, Texas – A Nacogdoches man has been sentenced for federal drug trafficking and firearms violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Timothy Ray Hill, Jr., 28, pleaded guilty on Feb. 17, 2022, to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime and was sentenced to 130 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to information presented in court, on March 20, 2021, law enforcement officers responded to a private party in San Augustine, Texas where a man was brandishing a firearm. Upon arrival, a sheriff’s deputy encountered Hill, who was walking toward him with his hand on the grip of a pistol that was protruding from his front pant pocket. After Hill ignored the deputy’s commands to take his hand off the gun, a police officer deployed his taser against Hill to end the standoff. The deputy then searched Hill and recovered the loaded pistol, 394 methamphetamine pills, and a large amount of cash.
This case was 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.
This case was investigated by the San Augustine Police Department, the San Augustine County Sheriff’s Office, and the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney John B. Ross.
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Mississippi Tax Preparer Sentenced to Prison for Filing False Client ReturnsRead the Press Release
A Mississippi man was sentenced today to 27 months in prison for preparing false tax returns for his clients.
According to court documents and statements made in court, Orland Reed worked at a Gulfport tax return preparation business. Between 2012 and 2014, Reed prepared tax returns for clients that included one or more false items, including false education credits, dependent information, federal income tax withholdings, and retirement contributions in an effort to generate larger refunds from the IRS than the clients were entitled to receive. At times, Reed also listed a different tax preparer even though he prepared the returns himself.
In addition to preparing false tax returns, on at least two occasions Reed misappropriated portions of his clients’ refunds that were sent by the IRS to the tax preparation business in the form of prepaid debit cards. Specifically, Reed withdrew some of the funds on the cards before delivering them to the clients.
In addition to the term of imprisonment, U.S. District Judge Taylor B. McNeel ordered Reed to serve one year of supervised release and to pay $69,185 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and United States Attorney Darren J. LaMarca of the Southern District of Mississippi made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorney Kevin Schneider of the Tax Division and Assistant U.S. Attorney Stan Harris for the Southern District of Mississippi prosecuted the case.
Mississippi Tax Preparer Sentenced to Prison for Filing False Client ReturnsRead the Press Release
Jackson, Miss. - A Mississippi man was sentenced today to 27 months in prison for preparing false tax returns for his clients.
According to court documents and statements made in court, Orland Reed worked at a Gulfport tax return preparation business. Between 2012 and 2014, Reed prepared tax returns for clients that included one or more false items, including false education credits, dependent information, federal income tax withholdings, and retirement contributions in an effort to generate larger refunds from the IRS than the clients were entitled to receive. At times, Reed also listed a different tax preparer even though he prepared the returns himself.
In addition to preparing false tax returns, on at least two occasions Reed misappropriated portions of his clients’ refunds that were sent by the IRS to the tax preparation business in the form of prepaid debit cards. Specifically, Reed withdrew some of the funds on the cards before delivering them to the clients.
In addition to the term of imprisonment, U.S. District Judge Taylor B. McNeel ordered Reed to serve one year of supervised release and to pay $69,185 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and United States Attorney Darren J. LaMarca of the Southern District of Mississippi made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorney Kevin Schneider of the Tax Division and Assistant U.S. Attorney Stan Harris for the Southern District of Mississippi prosecuted the case.