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22 September 2022
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.
Minneapolis Man Pleads Guilty to Violent Carjacking Outside Northeast Minneapolis Restaurant, Admits to Two Additional Armed Carjackings in Golden ValleyRead the Press Release
ST. PAUL, Minn. – A Minneapolis man has pleaded guilty to a violent carjacking of a woman outside her place of work in northeast Minneapolis and admitted his involvement in two additional armed carjackings, announced U.S. Attorney Andrew M. Luger.
According to court documents, on June 9, 2022, Shamir Nathann Black, 18, and an unidentified accomplice approached a woman outside of her place of work and demanded her car keys. Black proceeded to push the victim to the ground and hit her on the head with a firearm. A bystander attempted to assist the victim but was also assaulted by Black. During the struggle, Black discharged the firearm in the bystander’s direction. Black and an accomplice then got into the victim’s vehicle, but surrounding witnesses pulled Black from the driver’s seat and put him on the ground. Black and his accomplice fled the scene on foot.
After arriving at the scene, officers with the Minneapolis Police Department located a Shadow Systems 9mm semiautomatic pistol wrapped in a gray sweatshirt. The firearm had been reported stolen in Prior Lake in April 2022. Investigators reviewed a social media video that showed Black waving around a handgun that matched the firearm recovered at the crime scene. Further investigation revealed that a Volkswagen Jetta had been taken in a Prior Lake home burglary on the same night the firearm was stolen. Law enforcement later recovered the stolen Jetta from Black’s Minneapolis residence. On June 24, 2022, Black was taken into custody.
Black pleaded guilty on September 20, 2022, before U.S. District Judge Wilhelmina Wright to one count of carjacking. As part of the plea, Black also admitted to being involved in two additional armed carjackings in Golden Valley this past spring. Black faces up to 15 years’ imprisonment for the carjacking and will be sentenced at a later date.
This case is the result of an investigation conducted by the FBI, the Minneapolis Police Department, the Golden Valley Police Department, and the Hennepin County Sheriff’s Office.
Assistant U.S. Attorney Lauren Roso is prosecuting the case.
Mid-State Man Pleads Guilty to Federal Drug Distribution and Firearms ChargesRead the Press Release
NASHVILLE – Rodd Griffin, 42, of Cunningham, Tennessee, pleaded guilty today in U.S. District Court to possession with intent to distribute methamphetamine and heroin, and possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
According to the plea agreement, law enforcement began investigating Griffin in January 2020, after receiving a tip that he was selling heroin from his home in Cunningham, Tenn. Law enforcement officers then made a series of controlled buys of heroin and methamphetamine from Griffin and also received information that Griffin travelled to Atlanta on a regular basis to pick up large amounts of heroin and methamphetamine.
On January 16, 2020, law enforcement officers executed a search warrant at Griffin’s home and recovered three handguns and two rifles, one of which was a FN M16A2 with a “burst” selector and a suppressor, and embossed with “Property of the U.S. Government.” Officers also seized $40,000 in $5,000 bundles; a total of 1300g of methamphetamine; 232.4g of heroin; and 400g of marijuana.
While officers were conducting the search, Griffin arrived home, and a search of his person and vehicle yielded digital scales and other paraphernalia associated with illegal substances, and more than $6,000 cash, which included some of the buy money from a previous controlled buy.
Griffin was also found to have been previously convicted of a felony and was prohibited from possessing firearms.
The plea agreement, if accepted by the Court, calls for Griffin to be sentenced to 23 years in prison.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives; the 19th Judicial District Drug Task Force; and the Montgomery County Sheriff’s Office. Special Assistant U.S. Attorney Steven T. Brantley is prosecuting the case.
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Mexican man convicted of smuggling over 8 kilos of narcotics in candy boxRead the Press Release
McALLEN, Texas – A federal jury has convicted a 35-year-old U.S. citizen residing in Monterrey, Mexico, for his part in smuggling two kilograms of cocaine and six kilograms of meth, announced U.S. Attorney Jennifer B. Lowery.
They deliberated for approximately 45 minutes following a four-day trial before returning a guilty verdict against Nestor Alan Garcia on all six counts as charged.
According to the testimony, Garcia attempted to enter the Hidalgo Port of Entry in a taxi on May 13. He claimed he was going to a party in McAllen and had a box of “pulparindo” candy, puppies and various meat products. Authorities referred Garcia to secondary inspection. There, a search of the box of candy revealed approximately 6.2 kilograms of meth and 2.08 kilograms of cocaine.
Law enforcement testified Garcia had attempted to hide the narcotics in a box of candy and later lied when he claimed he did not know how the drugs had been placed in the box or came into his custody. He coordinated the smuggling of the narcotics with his mother for days ahead of the smuggling event at the Hidalgo Port of Entry.
The defense attempted to convince the jury Garcia had no knowledge of the drugs and was simply doing a favor for his mother. The jury did not believe those claims and found him guilty as charged.
Sentencing has been set for Dec. 8 before U.S. District Judge Randy Crane. Garcia faces a mandatory minimum of 10 years and up to life in federal prison and a possible $10 million maximum fine.
He has been and will remain in custody pending sentencing.
Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Eliza Carmen Rodriguez and Lee Fry prosecuted the case.
Maryland Man Sentenced to Five Years in Prison for Firearms Trafficking ConspiracyRead the Press Release
WASHINGTON – James Hutchings Jr., 41, of Waldorf, Maryland, was sentenced today to five years in prison on a firearms trafficking conspiracy charge, announced U.S. Attorney Matthew M. Graves, Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division. and Charlie J. Patterson, Special Agent in Charge of the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Hutchings was found guilty by a jury in May 2022, following a trial in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Chief Judge Beryl A. Howell. Following his prison term, he will be placed on three years of supervised release.
The conspiracy underpinning the verdict and sentence began in 2018, when Hutchings helped facilitate the transfer of multiple firearms into the hands of a convicted felon and narcotics trafficker, Linwood Douglas Thorne, 50, of Washington, D.C. Hutchings worked with his firearms supplier, a straw purchaser named Kofi Appiah, 33, of Temple Hills, Maryland, to help purchase the firearms in the state of Georgia and transport them into the District of Columbia.
At trial, the government presented a myriad of digital evidence, showcasing the defendant’s involvement in the conspiracy, to include his purchase orders of firearms, his online payment process, and his extensive connections with Thorne’s enterprise. The jury quickly returned a guilty verdict based on the evidence.
Appiah was previously sentenced to 37 months’ imprisonment as a result of his role in this conspiracy, and Thorne awaits sentencing after a jury convicted him of his narcotics trafficking enterprise. Thorne faces up to life in prison.
In announcing the sentence, U.S. Attorney Graves Special Agent in Charge Jacobs, and Special Agent in Charge Patterson commended the work of those who investigated the case, including those from the ATF and FBI. They also expressed appreciation for the assistance provided by the U.S. Marshals Service, Prince George’s County, Md. Police Department, and the U.S. Attorney’s Office for the District of Maryland. Additionally, they commended the work of the U.S. Attorney’s Office for the Middle District of Georgia, which assisted in the arrest of Appiah, in 2019.
Finally, they expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorney Gregory Rosen, who indicted and prosecuted the case, and Assistant U.S. Attorney Samuel Frey, who tried the case alongside Paralegal Specialist Alexis Spencer-Anderson. They also acknowledged the work of former Assistant U.S. Attorneys Brandon Regan and Andrea Duvall, who assisted in the case.
Marion County man admits to fentanyl chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Charles Edward Bell, Jr., of Fairmont, West Virginia, has admitted to possessing fentanyl, United States Attorney William Ihlenfeld announced.
Bell, 25, pleaded guilty this week to one count of “Possession with Intent to Distribute Fentanyl.” Bell admitted to possessing fentanyl in Marion County in March of 2021.
Bell faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Three Rivers Drug Task Force and the West Virginia State Police investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Manchester Man Sentenced to 3 Years in Federal Prison for Distributing Fentanyl in HartfordRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that RAYMOND JURADO, 36, of Manchester, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 36 months of imprisonment, followed by three years of supervised release, for distributing fentanyl
According to court documents and statements made in court, in 2017, the FBI’s Northern Connecticut Gang Task Force and Hartford Police Department received information that Jurado’s associate, Randy Texidor, was distributing significant quantities of heroin. Between October and December 2017, investigators made eight controlled purchases of escalating quantities of heroin and/or fentanyl from Texidor, and on another four occasions purchased heroin/fentanyl from Jurado. The investigation revealed that Texidor and Jurado used an apartment on Wadsworth Street in Hartford to process, package and store heroin. On February 13, 2018, a court-authorized search of the apartment revealed approximately 92 grams of fentanyl, 23 grams of heroin, 500 dose bags of suspected heroin/fentanyl, items used to process and package narcotics, a .380 caliber pistol, and $5,981 in cash.
Jurado and Texidor were arrested on February 13, 2018. On April 28, 2022, Jurado pleaded guilty to conspiracy to possess with intent to distribute fentanyl.
Jurado, who is released on bond, is required to report to prison on November 9.
Texidor pleaded guilty to fentanyl distribution and gun possession offenses and, on March 18, 2021, was sentenced to 72 months of imprisonment.
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 was being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Madison County Man Sentenced to 240 Months for Production of Child PornographyRead the Press Release
FRANFORT, Ky. — A Richmond, Ky., man, Scotty Dale Johnson, 51, was sentenced on Thursday, to 240 months in federal prison, by U.S. District Judge Gregory Van Tatenhove, for production of child pornography.
According to Johnson’s plea agreement, he created a Snapchat account, where he purported to be a teenage female. Using that account, Johnson then friended teenage boys, some of who he knew in real life and some he met online and engaged in sexual chatting with the boys. One victim, known by Johnson, was persuaded, induced, enticed, or coerced to send sexually explicit images of himself, via Snapchat, believing he was corresponding with a teenage female. The victim became suspicious that the account was fraudulent and eventually reported it to law enforcement.
Law enforcement eventually obtained a warrant for the Snapchat account and discovered that Johnson was corresponding with over 1000 different individuals, including several minor males. Johnson admitted that he attempted to, or did, persuade, entice, or coerce at least eight additional minor victims to produce sexually explicit images.
Johnson pleaded guilty in March 2021.
“This disgraceful conduct involved both predatory deception and sexual exploitation of a minor,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “Sadly, this case serves as a stark reminder of the serious risks minors face when online. That means we must all be diligent in protecting them and demonstrating safe online activity. Due to the work of our enforcement partners, fortunately, this case can also serve as a warning to those who engage in this conduct: the consequences will likely be a significant prison sentence.”
"This case demonstrates the grave dangers that children face online, where predators can pretend to be anyone in order to target the most vulnerable among us,” said Special Agent in Charge Jodi Cohen, FBI Louisville. “With this sentencing, we have removed a dangerous child predator from our community, and a clear message has been sent that those who seek to exploit children will be held accountable.”
Under federal law, Johnson must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for life.
United States Attorney Shier; Special Agent in Charge Cohen; Col. Phillip Burnett, Commissioner, Kentucky State Police; and Chief Joe Monroe, University of Kentucky Police Department, jointly announced the sentence.
The investigation was conducted by the FBI, KSP, and the University of Kentucky Police Department. The United States was represented by Assistant U.S. Attorney Erin Roth.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched by the Department of Justice. 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.
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Lebanon Man Sentenced to 10 Years in Federal Prison for Trafficking Methamphetamine in Parke, Clay, and Vigo CountiesRead the Press Release
TERRE HAUTE – Max W. Woodard II, 51, of Lebanon, Indiana, was sentenced to ten years in federal prison after pleading guilty to possession with intent to distribute methamphetamine.
According to court documents, on April 19, 2022, a law enforcement officer stopped Woodard’s vehicle for a traffic violation near U.S. 40 and North Miami Gardens Street in Vigo County, Indiana. The officer identified Woodard as the driver and sole occupant of the vehicle. Woodard appeared nervous when the officer approached his vehicle, and he did not comply with the officer’s commands. The officer asked Woodard to exit the vehicle, but Woodard refused. The officer attempted to open Woodard’s door, but it was locked. The officer continued to ask Woodard to exit the vehicle and he continued to refuse.
Another officer with a police K9 arrived on the scene and the K9 alerted to the presence of controlled substances inside the vehicle. Officers searched the vehicle and found a black bag containing 477 grams of methamphetamine. Woodward was traveling to Terre Haute, Indiana to sell the methamphetamine when he was stopped by police. Woodard was taken into custody and transported to jail.
The next day, on April 20, 2022, investigators went to Woodard’s residence in Lebanon, after Woodard consented to a search of his residence. The officers found two loaded firearms in Woodard’s couch: a black 9mm handgun and .22 caliber handgun. Two additional firearms were surrendered to law enforcement by a third-party who had removed the firearms from Woodard’s residence shortly before officers’ arrival. All four firearms belonged to Woodard.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, Michael Gannon, Assistant Special Agent in Charge of the DEA’s Indianapolis Field Office, made the announcement.
This case was investigated by DEA. The Vigo County Sheriff’s Office, Boone County Sheriff’s Office and Terre Haute Police Department provided valuable assistance. The sentence was imposed by U.S. District Judge Jane Magnus-Stinson. As part of the sentence, Judge Stinson ordered that Woodard be supervised by the U.S. Probation Office for five years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney M. Kendra Klump who prosecuted this case.
Las Vegas Man Sentenced to over Four Years in Prison for Damaging U.S. CourthouseRead the Press Release
LAS VEGAS – A Las Vegas resident was sentenced yesterday by U.S. District Judge Andrew P. Gordon to 51 months in prison followed by three years of supervised release for trying to burn down the Foley Federal Building and U.S. Courthouse in 2020.
In June 2022, Marty Clark (32) pleaded guilty to depredation against property of the United States.
According to court documents and admissions made in court, on November 7, 2020, Clark intended to set fire to the Foley Federal Building and U.S. Courthouse, located in downtown Las Vegas. At approximately 3:20 a.m., Clark poured gasoline on wood framing at the building’s front entrance and set fire to the framing. A security officer stationed inside the building attempted to stop Clark. Clark pushed the officer to escape and then fled the scene. Clark caused approximately $5,000 in damages to the building.
U.S. Attorney Jason M. Frierson for the District of Nevada, Special Agent in Charge Patrick Gorman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (San Francisco Field Division), and U.S. Marshal Gary Schofield made the announcement.
The case was investigated by ATF, Las Vegas Fire and Rescue, U.S. Marshals Service, FBI, Federal Protective Service, and the Las Vegas Metropolitan Police Department All-Hazard Regional Multi-Agency Response Section. Assistant U.S. Attorney Bianca Pucci prosecuted the case.
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Justice Department Announces $21.72 Million to Reduce Sexual and Domestic Violence on Campus, Support Children and Youth and Engage Men and Boys as AlliesRead the Press Release
The Justice Department announced today nearly $22 million in upcoming grant awards to address and prevent sexual assault, domestic violence, dating violence, and stalking on college campuses, provide services to youth victims and children exposed to such violence and engage men and boys as allies.
Specifically, the Office on Violence Against Women (OVW) will award $10,688,200 through 36 grants to address and prevent domestic violence and sexual assault on college campuses through the Grants to Reduce Sexual Assault, Domestic Violence, Dating Violence and Stalking on Campus Program (Campus). In addition, the Consolidated Youth and Engaging Men Grant Program (CYEM) will award $11,031,653 through 25 grants to implement programming that encourages men and boys to be role models and change agents in their communities working toward the goal of eliminating sexual and domestic violence.
“Studies show that approximately one in five women surveyed have been victimized by sexual assault while in college,” said Associate Attorney General Vanita Gupta. “We need to support college campuses with the resources to create a campus culture that is not tolerant of sexual assault or dating violence. These grants will help colleges and universities develop prevention policies, offer survivor-centered services, and train campus police to meet the needs of their students. These grants also provide critical intervention services to children and young adults, in addition to engaging them to be leaders in combatting violence.”
Of particular note, the Campus awards include support for historically Black colleges and universities (HBCUs), Hispanic serving institutions (HSIs), and Tribal colleges and universities (TCUs).
“One of OVW’s top priorities is to improve our outreach and services to underserved communities,” said OVW Acting Director Allison Randall. “We recognize that HBCUs, HSIs and TCUs face unique issues and challenges in preventing and responding to campus violence and we’re honored to work with grantees in 2023 and in the years to come to support survivors. We’re grateful to announce these awards during September when we are celebrating National Hispanic-Serving Institutions Week and in recognition of the National HBCU Week conference held by the White House.”
The Campus Program supports higher education institutions in developing services and programs that are designed to address and prevent sexual assault, domestic violence, dating violence and stalking on campus. Grantees are required to adopt a multidisciplinary response program that involves student affairs, student health, athletics, residence life, law enforcement and victim service providers. They also provide incoming students with prevention and educational programs about sexual and domestic violence, training for campus police and security and training for judicial and disciplinary board members.
The CYEM Program serves victims 24 and younger and promotes boys’ and men’s roles in combating violence against women and girls. Grantees provide services for youth who are victims of or exposed to sexual and domestic violence, youth victims of sex trafficking and commercial sexual exploitation, counseling, mentoring and support for non-abusing parents and caretakers. Grantees also provide training for programs on how to safely identify children and families who are experiencing domestic violence and refer them to programs that can provide services. Grantees also create public education campaigns to encourage men and boys to be allies to women and girls in preventing sexual and domestic violence.
OVW will announce FY23 grant solicitations for both grant programs at the in late fall. Please visit www.justice.gov/ovw for more information on upcoming grant opportunities.
Insurance Broker Charged in $4 Million Investment Fraud and Ponzi SchemeRead the Press Release
INDIANAPOLIS – A federal grand jury has charged Brian Simms, 44, of Lebanon, Indiana, with six counts of Wire Fraud. Simms was arrested yesterday and made his initial appearance in federal court in Indianapolis yesterday afternoon.
According to court documents, Simms was a licensed insurance broker with his company Brendanwood Financial Brokerage LLC. Simms was not licensed to sell securities nor registered to provide financial advising services. Nevertheless, beginning in 2013, Simms began inducing clients to cash out or liquidate their traditional and long-term insurance products and investments and reinvest the funds with Simms at Brendanwood. Simms allegedly made materially false and fraudulent pretenses, claims, representations, and promises to victim investors that he would invest their funds in investment products—when, in fact, he intended to use their funds for his own personal benefit. Rather than investing the victim investors’ in investment products as promised, Simms used the funds to pay business expenses related to Brendanwood such as payroll for its employees, or for his own personal expenditures, including payments to credit cards, Amazon, grocery stores, gasoline, restaurants, and utilities.
To conceal his scheme Simms created false financial statements. Simms also misappropriated victim investors’ money to make limited, Ponzi-type payments to other victim investors. Simms mislead the victim investors to believe that payments he made to them represented returns on proper investments, when they were in fact funds misappropriated from other victim investors. In total, Simms misappropriated approximately $3,995,535 from Victim Investors.
Simms made his initial court appearance today before U.S. Magistrate Tim A. Baker of the U.S. District Court for the Southern District of Indiana and was released on his own recognizance under pretrial supervision. If convicted, he faces a maximum penalty of 20 years in federal prison for each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
“Investment frauds and Ponzi schemes deprive victims of their hard-earned savings and financial security,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “The charges and ongoing investigation in this case demonstrate that our office and our federal and state law enforcement partners will work tirelessly to ensure that those who abuse positions of trust to satisfy their own greed will face the consequences. I encourage investors and any other members of the public who may have additional relevant information about the allegations against Brian Simms and Brendanwood Financial Brokerage to come forward to the FBI.”
“This indictment should serve as a reminder of the FBI’s commitment to aggressively investigate those who utilize their positions of trust to commit financial fraud,” said Robert Middleton, Acting Special Agent in Charge of the Federal Bureau of Investigation’s Indianapolis Field Office. “We will continue to work with our partners to protect the financial well-being of honest, hard-working Americans.”
“Regulating securities to protect your hard-earned money is one of the most vital roles under the office of Secretary of State,” said Indiana Secretary of State Holli Sullivan. “Hoosiers can check with our office to see if the business or individual seeking investment is properly registered, and you can contact us if anything seems suspicious.”
The case is being investigated by the Federal Bureau of Investigation and the Indiana Secretary of State’s Securities Division.
If you believe that you have information relating to allegations of fraud involving Brendanwood Financial Brokerage LLC or Brian Simms, contact the FBI’s Indianapolis Field Office at 317-595-4000.
U.S. Attorney Myers thanked Assistant United States Attorney Tiffany J. Preston, who is prosecuting this case.
Inmate Sentenced to 30 Months for Attempting to EscapeRead the Press Release
RALEIGH, N.C. – A federal inmate was sentenced today to 30 months for attempting to escape from the Federal Correctional Institution in Butner, North Carolina (“FCI Butner”).
According to court documents, Charles Asher, 62, an inmate at FCI Butner at the time of the offense, was found hiding in the bushes on the compound at approximately 9:00 p.m. on September 14, 2020, near the exit door of the institution. At the time he was discovered, Asher was required per FCI Butner orders and policy to be in his assigned housing unit. Asher was found with multiple unauthorized items that could be used to effectuate an escape, including: a homemade rope approximately 14 feet in length, grey gloves, a blue mattress cover, and a homemade cardboard replica handgun wrapped with black electrical tape.
Asher previously pled guilty to the sole count of attempted escape from prison pursuant to 18 U.S.C. § 751(a), on June 9, 2022.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after United States District Judge Terrence W. Boyle sentenced Asher. The Federal Bureau of Prisons investigated the case and Special Assistant U.S. Attorney Mallory Brooks Storus prosecuted the case.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:21-CR-00120-BO.
Indianapolis Woman Sentenced to over Seven Years in Federal Prison for Armed Robbery and Carjacking of a Lyft DriverRead the Press Release
INDIANAPOLIS – Kenyasia Edmond, 20, of Indianapolis, was sentenced to eighty-five months in federal prison after pleading guilty to robbery, carjacking, and brandishing a firearm in furtherance of a crime of violence.
According to court documents, during October 2020, investigators with the Indianapolis Metropolitan Police Department and Federal Bureau of Investigation were investigating a string of armed robberies. The robberies were of Lyft drivers and were alleged to have been perpetrated by two young females. On October 22, 2020, Kenyasia Edmond, then 18 years old, and Taa’mya Alisa Womack, then 17 years old, of Indianapolis, hailed a Lyft to pick them up from the Glendale area of Indianapolis. When the Lyft arrived Edmond and Womack entered the back seat of the vehicle. During transit to their destination Edmond and Womack placed guns against the victim’s head and ordered her to stop the vehicle. Once the vehicle came to a stop, the victim and Edmond exited from the vehicle. Edmond pushed the victim to the ground, placed her foot on the victim’s back and ordered her not to move. Edmond and Womack then fled the area in the victim’s vehicle.
The victim ran to a nearby gas station and called the police. Later that evening investigators spotted a vehicle matching the description of the victim’s car. Investigators conducted a traffic stop on the vehicle, which was occupied by Edmond, Womack, and a juvenile who was not involved in the carjacking. After confirming that the vehicle was stolen, officers ordered the three occupants to exit the vehicle. While placing Edmond under arrest, investigators heard what they believed to be a metallic object fall to the ground. A subsequent search of the area revealed a 9mm semiautomatic pistol.
During a search of the vehicle, investigators located the victim’s cell phone and other items belonging to the victim. In addition to those items, investigators located clothing which matched the description of the clothing the victim said the robbers wore.
Edmond was taken to IMPD headquarters where she waived her rights and agreed to be interviewed. During the interview Edmond informed investigators that she hailed the Lyft for the purpose of robbing the driver. While Edmond admitted that a firearm was used during the commission of the robbery and carjacking, she stated that it was Womack who wielded the weapon. Womack was prosecuted as an adult in Marion County courts.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Field Office, made the announcement.
FBI investigated the case and IMPD provided valuable assistance. The sentence was imposed by U.S. District Chief Judge Tanya Walton Pratt. As part of the sentence, Judge Pratt ordered that Edmond be supervised by the U.S. Probation Office for three years following her release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Lawrence D. Hilton who prosecuted this 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.
IRS Obtains Court Order Authorizing Summons for Records Relating to U.S. Taxpayers Who Failed to Report and Pay Taxes on Cryptocurrency TransactionsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, David A. Hubbert, Deputy Assistant Attorney General for the Justice Department’s Tax Division, and Charles P. Rettig, Commissioner of the Internal Revenue Service (“IRS”), announced that U.S. District Judge Paul G. Gardephe entered an order on September 22, 2022, authorizing the IRS to issue a so-called John Doe summons requiring M.Y. Safra Bank to produce information about U.S. taxpayers who may have failed to report to the IRS, and pay taxes on, cryptocurrency transactions. Specifically, the IRS summons seeks information about customers of SFOX, a cryptocurrency prime broker, who used banking services that M.Y. Safra Bank offered to SFOX customers engaged in cryptocurrency transactions. As described further in the IRS’s petition in support of the summons, though taxpayers who transact in cryptocurrencies are required to report any associated profits and losses on their tax returns, the IRS’s experience has demonstrated significant tax compliance deficiencies relating to cryptocurrencies and other digital assets.
U.S. Attorney Damian Williams said: “Taxpayers are required to truthfully report their tax liabilities on their returns, and liabilities that arise from cryptocurrency transactions are not exempt. The government is committed to using all of the tools at its disposal, including John Doe summonses, to identify taxpayers who have understated their tax liabilities by not reporting cryptocurrency transactions, and to make sure that everyone pays their fair share.”
Deputy Assistant Attorney General David A. Hubbert said: “Taxpayers who transact with cryptocurrency should understand that income and gains from cryptocurrency transactions are taxable. The information sought by the summons approved today will help to ensure that cryptocurrency owners are following the tax laws.
IRS Commissioner Charles P. Rettig said: “The government’s ability to obtain third-party information on those failing to report their gains from digital assets remains a critical tool in catching tax cheats. The court’s granting of the John Doe summons reinforces our ongoing, significant efforts to ensure that everyone pays their fair share. Taxpayers earning income from digital asset transactions need to come into compliance with their filing and reporting responsibilities.”
According to the allegations in the documents filed in support of the petition to authorize the John Doe summons, and other information in the public record:
SFOX is a cryptocurrency prime dealer and trading platform that connects digital currency exchanges, over-the-counter virtual currency brokers, and liquidity providers globally. SFOX has over 175,000 registered users who have collectively undertaken more than $12 billion in transactions since 2015. Based on its recent experiences with cryptocurrencies, the IRS has strong reason to believe that many virtual currency transactions are not being properly reported on tax returns. Among other reasons, there is no third-party reporting to the IRS in connection with such transactions, and summonses served on other cryptocurrency dealers have revealed significant underreporting of such transactions. Further, IRS investigations have identified at least ten U.S. taxpayers who used SFOX’s services for cryptocurrency transactions but failed to report those transactions to the IRS as required by law.
SFOX has partnered with M.Y. Safra to offer SFOX users access to cash-deposit bank accounts. SFOX users were able to use their funds at M.Y. Safra to buy and sell positions in virtual currency from SFOX. Based on M.Y. Safra’s arrangement with SFOX, the IRS expects that in response to the John Doe summons, M.Y. Safra will be able to provide information about the identities and cryptocurrency transactions of SFOX users who also used M.Y. Safra’s services—which the IRS will then be able to use in conjunction with other information to examine whether these users complied with the internal revenue laws.
In this action, the district court granted the IRS permission to serve what is known as a John Doe summons on M.Y. Safra. There is no allegation in this action that M.Y. Safra engaged in any wrongdoing. Rather, the IRS utilizes John Doe summonses to obtain information about possible violations of the internal revenue laws by individuals whose identities are unknown. The John Doe summons directs M.Y. Safra to produce records that will enable the IRS to identify U.S. taxpayers who were customers of SFOX and who engaged in cryptocurrency transactions that may not have been properly reported on tax returns. In parallel, the IRS was authorized on August 15 by the U.S. District Court for the Central District of California to serve a John Doe summons on SFOX itself.
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This case is being handled by the Office’s Tax and Bankruptcy Unit. Assistant U.S. Attorney Jean-David Barnea is in charge of the case.
Harrison County woman admits to firearm chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Laken N. Swiger, of Clarksburg, West Virginia, has admitted to conspiring with another individual to violate federal firearms laws, United States Attorney William Ihlenfeld announced.
Swiger, 28, pleaded guilty this week to one count of “Conspiracy to Violate Federal Firearms Laws,” and one count of “False Statement During Purchase of Firearm.” She admitted to knowingly making a false and fictitious written statement to purchase a firearm.
She is facing up to 5 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Christopher L. Bauer is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, & Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Harrison County man admits to gun chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Christopher Neal Boram, II, of Clarksburg, West Virginia, has admitted to unlawfully possessing a firearm, United States Attorney William Ihlenfeld announced.
Boram, 35, pleaded guilty this week to one count of “Unlawful Possession of a Firearm.” Boram was previously convicted of “Delivery of a Controlled Substance” in March 2019 in Harrison County Circuit Court. As a result of that conviction, he is prohibited from possessing a firearm.
Boram faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah E. Wagner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Haitian National Pleads Guilty to Firearms TraffickingRead the Press Release
Denver – The United States Attorney’s Office for the District of Colorado announces Haitian national Peniel Olibris, age 32, has pleaded guilty to smuggling goods, specifically firearms, from the United States.
According to the plea agreement, the defendant came to the attention of law enforcement in October of 2019 when a firearms store manager in Arvada, Colorado, reported a suspicious customer. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) began investigating and learned that between February 2019 and June 2020, Olibris and an associate purchased 77 firearms in the District of Colorado.
The plea agreement states in July 2020, Mr. Olibris admitted to law enforcement agents that he shipped “a few” firearms to Haiti, where he is from and where some of his family members still live. He explained that he placed the firearms in boxes inside cars and had the drivers take the cars from Colorado to Florida. In Florida, one of his associates coordinated with a shipping company to send the cars containing firearms to Haiti. The defendant explained he was trying to obtain a federal firearms license that would enable him to sell firearms, but had not yet done so.
According to the shipping company located in Fort Lauderdale, Florida, Olibris shipped 13 cars to Haiti between September 30, 2019 and May 29, 2020. This conduct violated of the Arms Export Control Act and the International Traffic in Arms Regulations.
The defendant entered his guilty plea on September 19, 2022, before Judge Regina M. Rodriguez. Sentencing is scheduled for January 12, 2023.
This case was investigated by Homeland Security Investigations (HSI) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant United States Attorneys Laura Cramer-Babycz and Albert Buchman are handling the prosecution.
Case number: 22-cr-00238.
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For more information about the U.S. Attorney's Office for the District of Colorado, visit: https://www.justice.gov/usao-co/pr
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Guilty Verdict in Trial of Defendants Involved in Athens Drug Conspiracy Directed from a Georgia PrisonRead the Press Release
ATHENS, Ga. – Two individuals involved in a larger armed drug conspiracy operating in the Athens area were found guilty by a federal jury for their crimes late yesterday afternoon.
Brendan R. Gates, 37, of Commerce, Georgia, and Cindy Stamey, 49, of Danielsville, Georgia, were each convicted of one count of possession with intent to distribute methamphetamine; Gates was also convicted of one count of possession of a firearm in furtherance of a drug trafficking crime. The verdict was reached on Sept. 21 following a three-day trial that began on Sept. 19 before U.S. District C. Ashley Royal. Stamey faces a minimum mandatory term of ten years up to a maximum of life in prison; Gates faces a minimum mandatory term of 15 years up to a maximum of life in prison.
The following co-defendants have all pleaded guilty for their crimes and two have been sentenced:
Malcody Dinges aka Cody aka Yes, Sir Cody, 43, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on Dec. 16, 2021, and was sentenced to serve 240 months in prison (to run consecutive to any state-imposed sentence) to be followed by three years of supervised release;
Ervin Sales Temaj aka Milton Aguilar, 34, of Norcross, Georgia, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on April 13 and was sentenced to 121 months in prison to be followed by three years of supervised release;
Adonias Sales Temaj aka Alacran, 28, of Norcross, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on July 14 and faces a minimum mandatory term of ten years up to a maximum of life in prison;
Justin Maddox, 44, of Athens, pleaded guilty to possession of methamphetamine with intent to distribute on Aug. 3, 2021, and faces a maximum of twenty years in prison;
Christopher Wilson, 41, of Hull, Georgia, pleaded guilty to possession of methamphetamine with intent to distribute on April 13 and faces a maximum of twenty years in prison;
Carrie Kasper, 31, of Athens, pleaded guilty to possession of methamphetamine with intent to distribute on July 15, 2021, and faces a minimum mandatory term of ten years up to a maximum of life in prison; and,
Katlyn Lackey, 21, of Commerce, pleaded guilty to possession of methamphetamine with intent to distribute on May 12 and faces a minimum mandatory term of ten years up to a maximum of life in prison.
Sentencing for the defendants will occur at a date determined by the Court.
“This conviction concludes a lengthy criminal investigation into a methamphetamine drug trafficking organization operating in the Athens area with ties to a Georgia prison,” said U.S. Attorney Peter D. Leary. “Law enforcement at every level are working to dismantle these types of criminal networks which are plaguing our communities.”
“Drug dealing breeds violence and traffickers who engage in this dangerous lifestyle often protect their drug stash with firearms,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “Consequently, these defendants will spend well-deserved time in prison. DEA and its law enforcement partners are committed to making communities safer by removing such criminals from the streets.”
According to court documents and evidence presented at trial, federal agents learned in 2018 that co-defendant Dinges was conducting drug deals using contraband cell phones while in custody at Wheeler Correctional facility. During the course of the investigation, agents learned that Dinges was communicating with the co-defendants and others located in the Athens region about controlled substances; these individuals would travel to locations in Atlanta as directed by Dinges to receive methamphetamine and return to Athens to distribute the drugs. Dinges received a fee for brokering the deals. When federal agents executed a search warrant at Gates’ residence, they seized a handgun and methamphetamine.
The case was investigated by DEA, the Gwinnett County Sheriff’s Office, the Athens-Clarke Police Department, the Oconee County Sheriff’s Office, the Madison County Sheriff's Office and the Greene County Sheriff’s Office.
Assistant U.S. Attorney Tamara Jarrett is prosecuting the case.