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22 September 2022
Grant County man admits to drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Austin Curtis Harman, of Petersburg, West Virginia, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
Harman, 23, pleaded guilty this week to one count of “Possession with Intent to Distribute a Controlled Substance.” He admitted to possessing Methamphetamine in Grant County in January of 2022.
Harman faces up to 20 years of 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 Stephen D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Grant County man admits to child porn chargeRead the Press Release
ELKINS, WEST VIRGINIA – Jasper E. Shook, of Petersburg, West Virginia, has admitted to child pornography charges, United States Attorney William Ihlenfeld announced.
Shook, 35, pleaded guilty last week to one count of “Distribution of Child Pornography,” one count of “Aiding and Abetting Possession of Child Pornography,” and one count of “Aiding and Abetting Production of Child Pornography.”
Shook faces not less than 5 years and not more than 20 years of incarceration and a fine of up to $250,000 for the distribution of child pornography charge; he faces up to 20 years incarceration and a fine of up to $250,000 for the aiding and abetting possession of child pornography charge; and he faces up to not less than 15 years and not more than 30 years of incarceration and up to $250,000 for the aiding and abetting production of child pornography charge. 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.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Assistant U.S. Attorney Kimberley D. Crockett is prosecuting the case on behalf of the government. The Federal Bureau of Investigation and the West Virginia State Police investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Grand jury indicts 2 Cincinnati-area men of federal charges related to illegally flying drones over professional sporting eventsRead the Press Release
CINCINNATI – Two Cincinnati-area men have been charged with federal crimes alleging they illegally flew drones over professional sporting events in Cincinnati.
A federal grand jury has charged the men in separate incidents involving Cincinnati Bengals and Cincinnati Reds events.
NFL
The Cincinnati Bengals hosted an NFL playoff game at Paul Brown Stadium on Jan. 15. During the game, it is alleged that Dailon Dabney, 24, of Cincinnati, illegally flew his drone into the stadium and hovered over the players and portions of the stadium crowd. Dabney allegedly recorded his drone flight and posted the video to social media sites and YouTube.
MLB
April 12 was Opening Day for the Cincinnati Reds’ 2022 season and featured the first game of the season at Great American Ballpark. It is alleged that Travis Lenhoff, 38, of Northern Kentucky, flew a drone into the restricted flight area of Great American Ballpark during the Opening Day festivities.
“This is a growing problem that poses a direct risk to the players and the individuals in the stands,” said U.S. Attorney Kenneth L. Parker. “Even if the operator does not have an intent to harm, the operator could easily lose control and injure someone. Moreover, the sight of a drone flying overhead could lead to a panic in the crowd. If you attend these events like Reds games and Bengals games – leave the drones at home.”
“Flying a drone over a stadium full of fans is dangerous and illegal without the proper FAA training, licensing, and approved flight plan," stated FBI Cincinnati Special Agent in Charge J. William Rivers. “We will continue to work with the FAA and local police to investigate these incidents when proper FAA protocols and procedures are not followed.”
Any drone that weighs more than .55 pounds and less than 55 pounds must be registered with the Federal Aviation Administration (FAA). Dabney’s and Lenhoff’s drones are not registered with the FAA and they do not have a remote pilot certification.
Each defendant is charged with operating an unregistered drone, which is a federal crime punishable by up to three years in prison. Dabney is also charged with violating a temporary flight restriction (punishable by up to one year in prison).
Dabney and Lenhoff each have an initial appearance scheduled at 1:30pm on Oct. 12 in Cincinnati.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; the Federal Aviation Administration (FAA); Cincinnati Interim Police Chief Teresa A. Theetge and Hamilton County Sheriff Charmaine McGuffey announced the charges. Assistant United States Attorney Timothy S. Mangan is representing the United States in this case.
Indictments merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Gary Man Sentenced to 92 Months in PrisonRead the Press Release
HAMMOND- Schickell Best, 34 years old, of Gary, Indiana, was sentenced by United States District Court Judge Philip P. Simon on his plea guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Best was sentenced to 92 months in prison, 2 years of supervised release and ordered to pay $1200 in restitution.
According to documents in the case, on April 21, 2020, law enforcement located Best standing in front of a car. As officers approached him, Best dropped foil packets which later were determined to contain phencyclidine, commonly known as PCP or angel dust. A search of his vehicle resulted in the seizure of crack cocaine and a loaded revolver. Best’s criminal history revealed he has a prior federal felony conviction for being a felon in possession of a firearm as well as Indiana felony convictions for battery on law enforcement and battery by body waste, and as such, he is prohibited from possessing a firearm or ammunition.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Indiana State Police, the Lake County Police Department, and the Gary Police Department. This case was prosecuted by Assistant United States Attorneys Caitlin M. Padula and Kevin F. Wolff.
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.
Former Teacher Sentenced for Producing Child Sexual Abuse MaterialRead the Press Release
A Kansas man was sentenced today to 30 years in prison for impersonating a minor female on social media and enticing dozens of minors in the Topeka area to record and send him sexually explicit images and videos of themselves.
According to court documents, Jeffrey D. Pierce, 42, of Topeka, was a former teacher and basketball coach at Seaman High School in Topeka who impersonated a minor female on various social media platforms and induced minor males in the Topeka area to create and send him images of themselves engaging in sexually explicit conduct. Evidence recovered from Pierce’s phones and other electronic devices shows that his exploitative scheme lasted for at least several years and that he targeted minors in his own community, including his own students at the high school where he formerly taught.
“Soliciting the production of child sexual abuse material is a particularly disturbing crime, made even more egregious when committed by someone entrusted to teach and coach our children,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Today’s sentence reflects the unwavering commitment of our prosecutors and law enforcement partners to stand up for victims and to hold offenders accountable for their conduct.”
“Pierce, an educator and coach, used deception, manipulation and threats to exploit the most vulnerable victims and those he was entrusted to protect, our children” said Special Agent in Charge Charles Dayoub of the FBI Kansas City Field Office. “The investigation into his actions and today’s sentencing demonstrate the unwavering dedication of law enforcement to seek justice for our most innocent victims and those who are unable to defend themselves.”
Pierce was also sentenced to five years of supervised release and ordered to pay $55,100 in special assessments.
To date, the FBI has identified over 80 minors who were victimized by Pierce. Pierce’s online communications with these victims established that he coerced at least one minor to send him additional sexually explicit material by threatening to distribute that minor’s images to others, distributed sexually explicit images of other minors, and encouraged another minor to engage in in-person sexual conduct with him while he was still impersonating a minor female. In total, law enforcement recovered from Pierce’s electronic devices several thousand images and videos depicting minor males engaged in sexually explicit conduct, as well as hundreds of screenshots of social media accounts belonging to other users and multiple images of nude and undressing minors that appear to have been taken in locker rooms at two Topeka high schools.
The FBI investigated the case.
Trial Attorneys Kaylynn N. Shoop, Austin M. Berry, and William G. Clayman of the Justice Department’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case.
This case is brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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 http://www.justice.gov/psc.
Former Postal Employee Sentenced to 13 Months in Prison for Fraud in Connection with Unemployment Insurance BenefitsRead the Press Release
NEWARK, N.J. – A former U.S. Postal Service USPS employee was sentenced to 13 months in prison for conspiring to fraudulently obtain unemployment insurance benefits, U.S. Attorney Philip R. Sellinger announced.
Ross Clayton, 31, of Irvington, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Julien X. Neals to an information charging him with conspiring to commit wire fraud. Judge Neals imposed the sentence on Sept. 21, 2022, in Newark federal court.
According to documents filed in the case and statements made in court:
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. The CARES Act created a new temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA), which provided unemployment insurance benefits for individuals who were not eligible for other types of unemployment (the self-employed, independent contractors, gig economy workers). The CARES Act also created a new temporary federal program called Federal Pandemic Unemployment Assistance (FPUC) that provided an additional $600 weekly benefit to those eligible for PUA and regular unemployment insurance benefits.
Clayton was a USPS employee and took unemployment insurance benefits-related mail, including debit cards, from a USPS location in New Jersey. He used that mail to obtain unemployment insurance benefits to which he was not entitled.
In addition to the prison term, Judge Neals sentenced Clayton to two years of supervised release and ordered him to pay restitution in the amount of $53,321.05 and forfeiture in the amount of $28,397.49.
U.S. Attorney Sellinger credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Jonathan Mellone in Manhattan; and postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Acting Inspector in Charge Raimundo Marrero, Philadelphia Division; special agents with the U.S. Postal Service – Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi, and special agents of the U.S. Postal Service Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
Defense counsel: Robert M. Perry Esq., Mount Holly, New Jersey
Former Philadelphia VA Hospital Employee Sentenced to Two Years in Prison for Stealing Almost $500,000 in Government FundsRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Bruce Minor, 46, of Philadelphia, PA, was sentenced to two years in prison, three years of supervised release, and ordered to pay $462,256 restitution and forfeit the same amount by United States District Court Judge Chad F. Kenney for his scheme to embezzle money from his former employer, the Philadelphia Veterans’ Affairs Medical Center (VAMC).
In May 2022, the defendant pleaded guilty to one count of theft of government funds. The charge arose from his theft of approximately $487,000 in Veterans Affairs travel reimbursement funds, which he helped administer as part of his official duties as a travel clerk. In order to perpetrate the theft, Minor created fraudulent travel reimbursement claims in the names of at least three other VAMC employees and then diverted the fraudulently obtained funds into bank accounts he controlled. According to court documents, in an email to VAMC management, the defendant admitted to stealing approximately $13,000 in travel funds, though subsequent investigation showed that he stole upwards of $487,000 between December 2015 and September 2019.
“Americans – and especially the men and women who have served in uniform – deserve public employees who do their jobs honestly and with integrity,” said U.S. Attorney Romero. “This defendant selfishly took advantage of his position with the VA to commit fraud, cheating both the veterans who rely on VA programs and the taxpayers who fund those services.”
“This defendant deceitfully used his position at VA to steal funds to which he was not entitled,” said Special Agent in Charge Christopher F. Algieri of the Department of Veterans Affairs Office of Inspector General’s Northeast Field Office. “This illegal conduct compromises the integrity of VA programs and wastes funds that could otherwise be used for the benefit of our nation’s veterans. The VA OIG thanks the US Attorney’s Office for its commitment throughout this investigation.”
The case was investigated by the Department of Veterans Affairs, Office of Inspector General, and is being prosecuted by Assistant United States Attorney Christopher Diviny.
Former Newport News Police Officer Pleads Guilty to the Sexual Exploitation of ChildrenRead the Press Release
NEWPORT NEWS, Va. – A former sergeant with the Newport News Police Department pleaded guilty today to the sexual exploitation of children and receipt of child pornography.
According to court documents, Michael Nicholas Covey, 39, of Newport News, used a child to engage in sexually explicit conduct for the purposes of producing a visual depiction of such conduct and distributing those images to a sex offender in Ohio.
When child sexual assault images were found on the convicted sex offenders’ electronic devices, the images were submitted to the National Center for Missing and Exploited Children (NCMEC) in Alexandria. During the analysis of the images, NCMEC determined that the images may have been produced in Newport News. NCMEC forwarded the information to the Southern Virginia Internet Crimes Against Children Task Force (SOVA ICAC) who, in turn, contacted the FBI. Agents with the FBI were able to identify the child depicted in the images. Further investigation led the agents to Covey. He was arrested on a federal criminal complaint on Friday, June 10.
Covey pleaded guilty to two counts of the sexual exploitation of children and one count of receipt of child pornography and is scheduled to be sentenced on February 22, 2023. He faces a mandatory minimum sentence of 15 years in prison and a maximum penalty of 80 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. Magistrate Judge Douglas Miller accepted the plea.
Assistant U.S. Attorney Lisa McKeel and Pete Osyf are prosecuting the case.
This case was investigated by the FBI’s Norfolk Child Exploitation Task Force (NCETF), as part of Project Safe Childhood. The NCETF is composed of FBI agents and detectives from the Chesapeake Police Department, Hampton Police Division, and Newport News Police Department. Assistance in this matter was also provided by federal agents from Homeland Security Investigations. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children. Tips regarding child exploitation can be provided to the task force at 1-800-CALL-FBI or tips.fbi.gov.
Project Safe Childhood is a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s 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.justice.gov/psc
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:22-cr-48.
Former New Orleans Police Officer Charged with Civil Rights Violation for Sexual AssaultRead the Press Release
The Justice Department filed a bill of information charging Rodney Vicknair, 55, a former police officer with the New Orleans Police Department, with sexually assaulting a victim in violation of that victim’s constitutional rights.
The bill of information alleges that on Sept. 23, 2020, the defendant while acting under color of law as a police officer, willfully deprived the victim of her right to bodily integrity when he engaged in sexual conduct without her consent and without a legitimate law enforcement purpose.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and U.S. Attorney Duane A. Evans for the Eastern District of Louisiana made the announcement.
The FBI New Orleans Field Office and the New Orleans Police Department Public Integrity Bureau investigated the case. Criminal Chief Tracey Knight of the U.S. Attorney’s Office for the Eastern District of Louisiana and Special Litigation Counsel Fara Gold of the Criminal Section of the Department of Justice’s Civil Rights Division are prosecuting the case.
An information is only an allegation; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former New Orleans Police Officer Charged with Civil Rights Violation for Sexual AssaultRead the Press Release
WASHINGTON — The Justice Department filed a bill of information charging Rodney Vicknair, 55, a former police officer with the New Orleans Police Department, with sexually assaulting a victim in violation of that victim’s constitutional rights.
The bill of information alleges that on Sept. 23, 2020, the defendant while acting under color of law as a police officer, willfully deprived the victim of her right to bodily integrity when he engaged in sexual conduct without her consent and without a legitimate law enforcement purpose.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and U.S. Attorney Duane A. Evans for the Eastern District of Louisiana made the announcement.
The FBI New Orleans Field Office and the New Orleans Police Department Public Integrity Bureau investigated the case. Criminal Chief Tracey Knight of the U.S. Attorney’s Office for the Eastern District of Louisiana and Special Litigation Counsel Fara Gold of the Criminal Section of the Department of Justice’s Civil Rights Division are prosecuting the case.
An information is only an allegation; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Executive Director of Mississippi Department of Human Services Pleads Guilty for Conspiring to Defraud the State of MississippiRead the Press Release
Jackson, Miss. – A former Mississippi Department of Human Services (MDHS) official pleaded guilty today for conspiring to defraud the State of Mississippi of millions of dollars in federal funds.
According to court documents, John Davis, 54, of Jackson, Mississippi, and his co-conspirators fraudulently obtained and misused federal funds – including funds from two programs, Temporary Assistance for Needy Families (TANF) and The Emergency Food Assistance Program (TEFAP) – for their personal use and benefit. At Davis’s direction, MDHS provided federal funds to two nonprofit organizations and then directed the two nonprofit organizations to fraudulently award contracts to various entities and individuals for social services that were never provided. In addition, Davis caused the nonprofit organizations to disburse full or almost-full payments pursuant to those sham contracts at or near the beginning of the contract periods, regardless of whether any work had been performed and knowing that no significant services would be provided.
Davis pleaded guilty to one count of conspiracy to commit wire fraud and to commit theft concerning programs receiving federal funds, and one count of theft concerning programs receiving federal funds. He is scheduled to be sentenced on Feb. 2, 2023, and faces a maximum penalty of five years in prison for the conspiracy count and 10 years in prison for the theft concerning programs receiving federal funds count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Darren J. LaMarca for the Southern District of Mississippi; Special Agent in Charge Jermicha Fomby of the FBI Jackson Field Office; Special Agent in Charge Tamala Miles of the Department of Health and Human Services, Office of Inspector General (HHS-OIG); and Special Agent in Charge Dax Roberson of the Department of Agriculture, Office of Inspector General (USDA-OIG) made the announcement.
The FBI, HHS-OIG, and USDA-OIG are investigating the case.
Trial Attorneys Adrienne E. Rosen and Della Sentilles of the Criminal Division’s Money Laundering and Asset Recovery Section and Fraud Section, respectively, and Assistant U.S. Attorneys Dave Fulcher and Andrew Eichner for the Southern District of Mississippi are prosecuting the case.
Former Executive Director of Mississippi Department of Human Services Pleads Guilty for Conspiring to Defraud the State of MississippiRead the Press Release
A former Mississippi Department of Human Services (MDHS) official pleaded guilty today for conspiring to defraud the State of Mississippi of millions of dollars in federal funds.
According to court documents, John Davis, 54, of Jackson, Mississippi, and his co-conspirators fraudulently obtained and misused federal funds – including funds from two programs, Temporary Assistance for Needy Families (TANF) and The Emergency Food Assistance Program (TEFAP) – for their personal use and benefit. At Davis’s direction, MDHS provided federal funds to two nonprofit organizations and then directed the two nonprofit organizations to fraudulently award contracts to various entities and individuals for social services that were never provided. In addition, Davis caused the nonprofit organizations to disburse full or almost-full payments pursuant to those sham contracts at or near the beginning of the contract periods, regardless of whether any work had been performed and knowing that no significant services would be provided.
Davis pleaded guilty to one count of conspiracy to commit wire fraud and to commit theft concerning programs receiving federal funds, and one count of theft concerning programs receiving federal funds. He is scheduled to be sentenced on Feb. 2, 2023, and faces a maximum penalty of five years in prison for the conspiracy count and 10 years in prison for the theft concerning programs receiving federal funds count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Darren J. LaMarca for the Southern District of Mississippi; Special Agent in Charge Jermicha Fomby of the FBI Jackson Field Office; Special Agent in Charge Tamala Miles of the Department of Health and Human Services, Office of Inspector General (HHS-OIG); and Special Agent in Charge Dax Roberson of the Department of Agriculture, Office of Inspector General (USDA-OIG) made the announcement.
The FBI, HHS-OIG, and USDA-OIG are investigating the case.
Trial Attorneys Adrienne E. Rosen and Della Sentilles of the Criminal Division’s Money Laundering and Asset Recovery Section and Fraud Section, respectively, and Assistant U.S. Attorneys Dave Fulcher and Andrew Eichner for the Southern District of Mississippi are prosecuting the case
Former Denton Police Officer Sentenced for Child Exploitation ViolationsRead the Press Release
SHERMAN, Texas – An Argyle, Texas man has been sentenced to federal prison for child exploitation violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
David Schoolcraft, 39, pleaded guilty on Dec. 28, 2021, to possession of child pornography and was sentenced to 121 months in federal prison today by U.S. District Judge Amos L. Mazzant.
According to information presented in court, Schoolcraft came to the attention of law enforcement when it was discovered that he was distributing child pornography within a social media application between December 2020 and January 2021. An investigation revealed that he was engaged in this activity while at the Denton Police Department, where he served as a police officer, as well as at his home in Argyle. Federal agents served search warrants and met with Schoolcraft in February 2021, at which time Schoolcraft admitted to using a social media application and his cellular phone to trade child pornography. Schoolcraft admitted to possessing images and videos of prepubescent minors engaged in sexually explicit conduct, including children who were bound and sexually abused by adults. Schoolcraft was indicted by a federal grand jury on March 10, 2021.
“Children are the most precious and vulnerable members of our society, and justice and basic human decency demands that we do everything in our power to protect them from harm,” said U.S. Attorney Brit Featherston. “Schoolcraft violated his oath of office as a police officer and the trust of our community, and instead of protecting children he took pleasure in viewing children being sexually exploited and harmed. Although no sentence can make up for the pain he caused, this sentence should put everyone on notice that the Eastern District of Texas will not tolerate this behavior.”
“The details of this case are upsetting not only because it involves the distribution of material exploiting children, but also because the perpetrator was a police officer who was expected to serve and protect his community,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “The FBI and our law enforcement partners consistently work together to hold child predators accountable for their actions. We are also steadfast in our commitment to protect children from individuals who seek to exploit their innocence.”
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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.justice.gov/psc.
This case was investigated by the Federal Bureau of Investigation, Plano Police Department and Denton Police Department. This case was prosecuted by Assistant U.S. Attorney Marisa Miller.
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Former Boston Philharmonic Orchestra Artistic Advisor Sentenced to Five Years in Prison for Child Pornography OffenseRead the Press Release
BOSTON – A former employee of the Boston Philharmonic Orchestra and the Boston Philharmonic Youth Orchestra has been sentenced in federal court in Boston for possession of child pornography.
David St. George, 75, of Arlington, was sentenced on Sept. 14, 2022 by U.S. District Court Judge Richard G. Stearns to five years in prison and five years of supervised release. St. George was also ordered to pay a $5,100 special assessment and restitution of $3,000 to each of the victims in this case. On March 30, 2022, St. George pleaded guilty to one count of possession of child pornography.
“Child pornography is not a victimless crime. It depicts child abuse. Plain and simple. Every single image or video of the material entails unspeakable harm and trauma inflicted upon an innocent child, and those who possess, distribute or view it not only break the law but more importantly revictimize these children with each act that sexualizes them,” said United States Attorney Rachael S. Rollins. “As the chief federal law enforcement officer of our Commonwealth and a mother, I see it as my duty in this role to protect our children. And my office will dedicate every resource necessary to do so.”
“The child sexual abuse materials that St. George possessed captured the horrific abuse of children. Searches of his home and electronics revealed he possessed thousands of these images while he was employed by the Boston Philharmonic Orchestra and the Boston Philharmonic Youth Orchestra,” said Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in New England. “HSI is committed to pursuing those who possess and trade child sexual abuse material wherever they hide, even when they go to great lengths to anonymize their activity and conceal their identities.”
In May 2018, investigators received information regarding a shared secure online storage account containing child pornography. The IP address for this account ultimately was linked to St. George’s internet. The storage account contained over 5,000 files, including sexually explicit images and videos of children, many of which depicted child sexual abuse – including the depiction of an adult raping an infant of approximately one year of age.
In September 2018, a search of St. George’s residence revealed thousands of files of child pornography, including the depiction of sexual assaults of children between six-and-eight years old. Emails revealed that St. George continued to re-post child sexual abuse materials despite being repeatedly banned by an online service provider. During the search, St. George admitted that he had been receiving and downloading child pornography from the Dark Web while taking steps to conceal his identity, as well as receiving and downloading child pornography via email for upload to his shared secure storage account.
U.S. Attorney Rollins and HSI SAC Millhollin made the announcement. Valuable assistance was provided by the Arlington Police Department. Assistant U.S. Attorney James D. Herbert of Rollins’ Criminal Division prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
First-Ever Paycheck Protection Program False Claims Act Whistleblower Case in Which the United States Intervened Against the Borrower SettlesRead the Press Release
MIAMI – Pan African Interchange LLC and Stanley Damas have agreed to pay $21,583.31 to resolve False Claims Act allegations arising from their false certifications that Pan African Interchange LLC would not receive more than one Paycheck Protection Program (PPP) loan prior to December 31, 2020, announced U.S. Attorney Juan Antonio Gonzalez.
The Coronavirus Aid, Relief and Economic Security (CARES) Act authorized the issuance of PPP loans to eligible small businesses struggling to pay employees and other business expenses during the pandemic. Under the PPP, in 2020, eligible businesses could obtain one SBA guaranteed PPP loan. Businesses were required to spend loan proceeds for employee compensation, rent or mortgage, and other specified expenses and, depending on their use of the loan proceeds, could qualify for loan forgiveness up to the full amount of the loan if certain requirements were met.
The SBA delegated authority to third-party lenders to underwrite and approve the PPP loans. To obtain a PPP loan, a qualifying business (through its authorized representative) signed and submitted a PPP loan application online through the lender’s application platform. The PPP loan application required the business (through its authorized representative) to acknowledge the PPP program rules and make certain affirmative certifications in order to be eligible to obtain the loan. Borrowers were required to certify as true and accurate that the applicant had not and would not receive more than one loan under the PPP prior to December 31, 2020. A similar certification was required if a borrower applied for loan forgiveness.
On April 14, 2022, the United States intervened in, and on May 20, 2022, filed its Complaint in Intervention against Pan African Interchange LLC and its owner, Stanley Damas, in a whistleblower case filed against Pan African Interchange LLC pursuant to the qui tam provisions of the False Claims Act. This case is the first PPP False Claims Act whistleblower case in which the United States intervened. The United States alleged that after applying for a PPP loan on May 20, 2020, Pan African Interchange LLC, through Stanley Damas, applied for a second PPP loan on May 21, 2020, and having received a PPP loan on May 22, 2020 from its first application, falsely certified that Pan African Interchange had not and would not receive more than one loan prior to December 31, 2020, when on June 12, 2020, Pan African Interchange, LLC signed a promissory note for a second PPP loan that it received on June 24, 2020. The United States further charged in its Complaint in Intervention that, despite numerous demands, and in violation of the PPP rules and the FCA, Pan African Interchange LLC and Damas unlawfully refused to return the second PPP Loan.
After the United States filed and served its Complaint in Intervention, Damas and Pan African Interchange LLC paid back to the United States, $208,332.00 to satisfy the second Pan African Interchange PPP Loan. However, in the settlement announced today, Pan African Interchange LLC and Damas agreed to pay an additional $21,583.31.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Assistant U.S. Attorney James A. Weinkle handled the matter, and Department of Justice Civil Division Trial Attorney Jared Wiesner and the SBA’s Office of Litigation assisted.
The qui tam action in the United States District Court for the Southern District of Florida captioned United States of America ex rel. Bryan Quesenberry v. Pan African Interchange, LLC, et al., Case No. 9:20-cv-81717-DMM (S.D. Fla).
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
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Federal Jury Convicts Volusia County Man for Using His Missing Father’s Identity to Steal Social Security BenefitsRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces that a federal jury has found Robert Butzlaff (57, Volusia County) guilty of four counts of fraudulent use of an unauthorized access device and aggravated identity theft. Butzlaff faces a maximum penalty of 10 years in federal prison on each of the fraudulent use of an unauthorized access device charges and a consecutive 2-year mandatory minimum on the aggravated identity theft charge. His sentencing hearing is scheduled for December 7, 2022.
According to evidence presented at trial, Social Security beneficiary M.B. was reported missing in October 2014 and has never been located. M.B.’s disappearance was not reported to the Social Security Administration (SSA) and SSA continued to make benefit payments on his behalf. M.B.’s SSA benefits were being deposited into an account held jointly with his son, Butzlaff, at the time of his disappearance. Following M.B.’s disappearance, Butzlaff opened a new bank account using M.B.’s personally identifiable information and redirected M.B.’s SSA benefits to the new account. The new account was solely in M.B.’s name. Butzlaff obtained, and used, two debit cards issued in the name of M.B. to withdraw the funds being deposited by SSA into the new account. Butzlaff used the SSA funds intended for M.B. for his own personal expenses.
This case was investigated by the Social Security Administration, Office of the Inspector General and the Ormond Beach Police Department. It is being prosecuted by Special Assistant United States Attorney Suzanne Huyler.
Federal Jury Convicts Virginia Beach Man for Drug Trafficking and Firearm PossessionRead the Press Release
NORFOLK, Va. – A federal jury convicted a Virginia Beach man yesterday on charges of conspiracy to distribute controlled substances and possessing firearms in furtherance of drug trafficking.
According to court records and evidence presented at trial, Jerod Askew, 32, was involved in a conspiracy to distribute heroin, cocaine, crack cocaine and marijuana in the Hampton Roads area. His source of supply was located in Baltimore, Maryland, and he would rent vehicles to make frequent trips to Maryland to re-up his supply of drugs. He sent numerous text messages to his co-conspirators in the Hampton Roads area letting them know he had a supply of illegal narcotics for sale. A search warrant at his residence revealed approximately nine ounces of heroin, approximately two ounces cocaine, approximately one ounce of crack cocaine, marijuana, six loaded firearms and drug distribution paraphernalia. A search of his storage unit revealed over four pounds of marijuana, a loaded firearm, drug distribution paraphernalia, a kilo press, and empty kilo wrappers that once contained cocaine.
Askew faces a mandatory minimum of 15 years and a maximum life in prison when sentenced on March 17, 2023. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Charlie J. Patterson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division, made the announcement after Senior U.S. District Judge Rebecca Beach Smith accepted the verdict.
Assistant U.S. Attorneys Bill Muhr and Matthew Heck are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:21-cr-8.
Federal Jury Convicts Catoosa Man for Committing Sex Crimes Against Three ChildrenRead the Press Release
A federal jury convicted a Catoosa man Wednesday for engaging in criminal sexual conduct with three children, announced U.S. Attorney Clint Johnson. A fourth victim also came forward and testified at trial.
Garrin Michael Thompson, 48, of Catoosa, was found guilty of transportation of a minor with intent to engage in criminal sexual activity; aggravated sexual abuse of a child under 12 in Indian Country; and coercion and enticement of a minor.
“For more than 20 years, Garrin Thompson repeatedly preyed on children. This week, four victims testified in federal court, exposing his egregious crimes. I am thankful they found the courage to come forward to stop him from victimizing another child,” said U.S. Attorney Clint Johnson. “I also want to thank the entire prosecution team for their persistence in this case and commitment to justice. Law enforcement and prosecutors in northeastern Oklahoma will continue our relentless pursuit to hold accountable perpetrators of child sexual abuse.”
According to court documents, in March 2022, Thompson took a 10-year-old child from Catoosa to Tyler, Texas, where he sexually abused the girl at a hotel. The child was attending an athletic competition at the time. Thompson told the child that she should keep the incident a secret. Upon returning to Catoosa, the child began disclosing the abuse to friends, coaches and family members.
Two individuals contacted law enforcement to report the child’s allegations on April 14, 2022.
Forensic interviewers conducted interviews with the victim and others to whom Thompson had access. During the interviews, multiple other victims came forward.
Around that time, Thompson sent texts to the mother of several victims discussing the disclosures and had conversations where he offered to seek counseling and suggested that she encourage the victims to remain quiet about the allegations.
A second victim disclosed that she was between four and six years old when Thompson sexually abused her from 2007 and 2009. The victim also stated that Thompson would play a “tickle game,” frequently touching the victim on the inner thighs, lower stomach and near her pubic area while she was wearing clothes.
A third victim disclosed that from 2000 to 2001, Thompson attempted to coerce and entice the victim to engage in sexual activity on two occasions when the victim was between 10 and 12 years old. The victim stated that Thompson exposed the victim to pornography, masturbated in front of the victim, and attempted to get the victim to engage in oral sex.
Additionally, another victim was interviewed and also disclosed Thompson’s abuse.
FBI special agents became concerned when they learned Thompson had left his home, fearing he had the financial means to flee and the capability to destroy evidence because of his experience as a software engineer. The Catoosa Police Department searched for the defendant and located his car at a hotel the next morning. Thompson was arrested as he departed the hotel carrying a passport and various digital media storage devices.
Law enforcement seized the electronic devices, and later, seized more from his home. Evidence from the devices revealed that Thompson had a lascivious interest in children, including incest.
Agents found searches for videos related to incest involving minors and other sex crimes. They further learned that Thompson placed hidden video cameras in at least two homes where he could capture images of several of the victims and others without clothes.
In closing, Assistant U.S. Attorney Cheryl Baber described how our culture has become desensitized to sexualized language, images and actions but stated that it is society’s responsibility to maintain a sense of right and wrong, especially as it relates to the treatment of children. She then described the wrongs committed by Thompson- the inappropriate tickling games, the intentional exposure to pornography, the attempts to coerce a child to perform oral sex and engage in sodomy, and the aggravated sexual abuse of children. She explained that Thompson’s criminal acts ended the victims’ innocence. She then asked the jury to end Thompson’s claims of innocence by returning a guilty verdict.
The FBI and the Catoosa Police Department conducted the investigation. Assistant U.S. Attorneys Cheryl L. Baber and Edward Snow prosecuted the case.
Federal Indictment Charges Man with Illegally Possessing Loaded Gun on CTA Train in Downtown ChicagoRead the Press Release
CHICAGO — A federal grand jury has charged a man with illegally possessing a loaded handgun, cocaine, and fentanyl on a Chicago Transit Authority train.
The indictment in U.S. District Court in Chicago charges TERRELL WEATHERS, 29, of Chicago, with one count of illegal possession of a firearm, one count of possession of cocaine and fentanyl with the intent to distribute, and one count of possession of a firearm in furtherance of a drug trafficking crime. The indictment alleges that Weathers illegally possessed the handgun, cocaine, and fentanyl on July 13, 2021. Chicago Police officers boarded a CTA Green Line train at the Adams/Wabash stop in the city’s downtown Loop neighborhood and arrested Weathers.
Weathers was previously convicted of a criminal felony and was prohibited by federal law from possessing a firearm.
The charges in the federal indictment carry a mandatory minimum sentence of five years in federal prison and a maximum of life. Arraignment before U.S. Magistrate Judge Gabriel A. Fuentes has been set for Oct. 3, 2022, at 1:00 p.m.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Ashley T. Johnson, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI; and David Brown, Superintendent of the Chicago Police Department. The government is represented by Assistant U.S. Attorney Ann Marie E. Ursini.
“Anyone thinking of illegally possessing a firearm on public transit in Chicago needs to know that a federal prosecution could await them,” said U.S. Attorney Lausch. “We will continue to use every available federal law enforcement tool to keep Chicago transit riders safe.”
Holding alleged drug and firearm offenders accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Federal Grand Jury Indicts Louisville Man for Possession of Machine GunRead the Press Release
Louisville, KY – A federal grand jury in Louisville, Kentucky, returned an indictment on September 21, 2022, charging a local man with illegally possessing a machine gun.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and ATF Special Agent in Charge Shawn Morrow of the Louisville Field Division made the announcement.
According to court documents, on September 6, 2022, Gregory Tolbert, 19, knowingly possessed a machine gun, a Glock switch bearing no serial number. Tolbert is currently in state custody at the Louisville Metro Department of Corrections and will be scheduled for his initial appearance before a U.S. Magistrate Judge of the U.S. District Court for the Western District of Kentucky once he is transferred to federal custody. If convicted, he faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. There is no parole in the federal system.
The ATF and the Louisville Metro Police Department are investigating the case.
Special Assistant U.S. Attorney (SAUSA) Emily Lantz is prosecuting the case. SAUSA Lantz is an Assistant Jefferson County Commonwealth’s Attorney sworn in as a SAUSA to prosecute firearms cases in federal court. She works closely with federal, state, and local law enforcement agencies to combat violent crime. Funding for SAUSA Lantz’s position comes from a grant from the Bureau of Justice Assistance, a component of the Justice Department’s Office of Justice Programs, to the office of Jefferson County Commonwealth’s Attorney Tom Wine.
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.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Fall River Woman Pleads Guilty to Sexually Exploiting ChildrenRead the Press Release
BOSTON – A Fall River woman pleaded guilty today in federal court in Boston to child sexual exploitation charges.
Nichole Cyr, 27, pleaded guilty to two counts of sexual exploitation of children. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Dec. 20, 2022. Cyr was indicted by a federal grand jury in November 2020.
“Today, Ms. Cyr admitted to some of the most egregious conduct that my office prosecutes. She sexually victimized two children in her life – one that was only a toddler – captured the abuse on camera, and then shared the horrific material. Ms. Cyr took advantage of these young, innocent children entrusted to her care. For that, this predator is now a convicted felon facing a mandatory minimum sentence of 15 years in federal prison,” said United States Attorney Rachael S. Rollins. “My office will continue to use every tool in our arsenal to investigate and prosecute those who prey on and sexualize our children.”
“The production of child sexual abuse material immortalizes the horrific act of sexually abusing a child through photos and video, making it even more difficult for survivors to heal from the trauma of abuse. Today’s plea ensures Cyr will face significant time behind bars for her actions,” said Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in New England. “The protection of children is one of our greatest and most solemn duties as a law enforcement agency. HSI will continue in our mission to investigate predators like Cyr and bring them to justice before they can do more harm.”
In July 2020, Cyr was arrested for child exploitation offenses after child sexual abuse material (CSAM), including images and videos, were located on her cell phones. Forensic analysis of Cyr’s phones revealed CSAM involving a two-year-old victim and a seven-year-old victim, including videos and photographs that showed Cyr sexually abusing the two-year-old victim on various dates. Forensic analysis also revealed that Cyr had shared the CSAM with another individual. Subsequent investigation determined that the Cyr produced the CSAM of the two minor victims, who she had babysat on multiple occasions.
The charging statute provides for a minimum mandatory sentence of 15 years and up to 30 years in prison, five years of supervised release and a fine of $250,000. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rollins, HSI SAC Millhollin, Bristol County District Attorney Thomas M. Quinn III, Fall River Police Chief Paul Gauvin and New Bedford Police Chief Paul Oliveira made the announcement today. Assistant U.S. Attorney Anne Paruti, Chief of Rollins’ Major Crimes Unit, is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Eight Charged with Trafficking Methamphetamine in Akron, Portage and Trumbull County AreasRead the Press Release
AKRON – First Assistant U.S. Attorney Michelle M. Baeppler announced that eight individuals were charged today in an 18-count superseding indictment with operating a drug trafficking conspiracy that distributed methamphetamine throughout the city of Akron, Portage County and Trumbull County areas.
Named in the superseding indictment are Dolan Mitchell Ady, 50, of Kinsman, Ohio; Christen Tate Oakman, 27, of Akron, Ohio; Shaquille Michael Haskell, 31, of Akron, Ohio; Markus Eugene Shaw, 37, of Warren, Ohio; Jennifer Derosa, 34, of Warren, Ohio; Robert Russell Boring, 32, of Akron, Ohio; Joshua M. White, 35, of Warren, Ohio and Travis Spithaler, 35, of Warren, Ohio.
Each defendant is charged with conspiracy to possess with intent to distribute methamphetamine. In addition, the indictment charges various members of the drug trafficking organization with distribution of methamphetamine, distribution of Lysergic Acid Diethylamide (LSD), possession with the intent to distribute methamphetamine, felon in possession of a firearm, felon in possession of ammunition and possession of a firearm by a person with a prior misdemeanor domestic violence conviction.
According to the indictment, it is alleged that from October 2021 to April 2022, the named members of the drug trafficking organization conspired together to purchase methamphetamine and redistribute it throughout the city of Akron, Portage County and Trumbull County areas. The indictment alleges that members of the organization maintained residences in the city of Akron to store and sell methamphetamine and conducted counter-surveillance while engaging in drug trafficking activity in order to identify the potential presence of law enforcement. Additionally, the indictment alleges members of the organization utilized motels and a residence within Trumbull County to store and sell methamphetamine.
An indictment is only a charge and is not evidence of guilt. The defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, each defendant’s sentence will be determined by the court after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum; in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Portage County Sheriff’s Office Drug and Violent Crime Unit (PCSODVCU), Portage County Sheriff’s Office (PCSO), Akron Police Department Gun Violence Reduction Tactical Unit (APD GVRTU), Akron Police Department (APD), Ohio State Highway Patrol (OSP), Niles Police Department (NPD) and Warren Police Department (WPD).
This case is being prosecuted by Assistant United States Attorney Jason M. Katz.
East Hartford Resident Sentenced to More Than 11 Years in Federal Prison for Child Sex TraffickingRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JOEL LINDSAY, also known as “Joey Guapo,” 24, a citizen of Jamaica last residing in East Hartford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 135 months of imprisonment for child sex trafficking.
According to court documents and statements made in court, in October 2019, Lindsay conspired with his associate, Joseph Pina, to recruit, entice and transport a 16-year-old girl to engage in commercial sex acts. Specifically, on October 17, 2019, Lindsay, Pina and another individual picked up the minor victim and took her to a hotel in East Windsor. At the hotel, they took photographs of the minor victim and posted her photos on a website to advertise her sexual services. Lindsay and Pina then arranged prostitution appointments for the minor victim. On that night, the minor victim earned at least $100 from prostitution appointments, all of which she gave to Lindsay.
On October 18, 2019, Lindsay and Pina posted more advertisements on the same web site and arranged prostitution appointments for the minor victim at a hotel in Windsor Locks. The following two days, Lindsay and Pina posted advertisements on the website and the minor victim saw additional prostitution customers. The victim again gave all of the money earned through these appointments to Lindsay.
The investigation further revealed that Lindsay and Pina engaged in sexual activity with the minor victim, even though they knew that she was under the age of 18. The minor victim also reported to investigators that Lindsay physically assaulted her.
Lindsay, a citizen of Jamaica, has been detained since arrest on August 20, 2020. On October 15, 2021, he pleaded to sex trafficking of a minor.
Lindsay faces immigration proceedings when he completes his prison term.
Pina pleaded guilty to conspiracy to commit sex trafficking of a minor and, on March 2, 2022, was sentenced to 96 months of imprisonment.
This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Angel M. Krull.
Detroit Man Pleads Guilty to Spree of Three Violent CarjackingsRead the Press Release
DETROIT – Rayquan Sturgis, 23, of Detroit, MI, pled guilty today to a spree of three violent carjackings he committed in June and July 2020. Sturgis also pled guilty to additional charges of using and discharging a firearm during crimes of violence. Sturgis faces a mandatory minimum sentence of 15 years in prison with a maximum possible sentence of life in prison.
United States Attorney Dawn N. Ison announced the plea today and was joined in the announcement by James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Division.
“My office is committed to using all of our resources to combat violent crime in our community, particularly targeting those who use firearms to commit that violence. Today’s guilty pleas reflect that commitment and serve as a warning to those who use a gun to terrorize and harm others,” stated US Attorney Ison.
According to court records, Sturgis committed the three carjackings between June 10, 2020 and July 7, 2020 on the west side of Detroit. All three of the victims were strangers to Sturgis who had offered him a ride in their car. In the first carjacking on June 10, 2020, Sturgis pulled out a gun, pointed it at the victim, and forced her out of her car before stealing it.
In the second, on June 18, 2020, Sturgis got out of the victim’s van when they stopped, walked around to the driver’s side, and immediately fired multiple shots at the victim, striking him in the leg, arm, and hand. The victim suffered permanent injuries as a result.
Finally, on July 7, 2020, Sturgis got a ride from the third victim, before pistol whipping him and stealing his car and driving away.
Sentencing is set for January 25, 2022.
The case was investigated by special agents of the FBI and was prosecuted by Assistant United States Attorney Andrew R. Picek.
Defendant Sentenced to Five Extra Years for Assaulting Marshal at Sentencing HearingRead the Press Release
A west Texas man who assaulted two Deputy U.S. Marshals immediately after being sentenced to 30 years in prison for another crime was sentenced today to an additional five years for the attack, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Damien Dre Gonzales, 28, was charged in July 2021 with assaulting a federal officer. He pleaded guilty in May 2022 and was sentenced Wednesday by U.S. District Judge James Wesley Hendrix to five years in federal prison, to be served consecutive to his sentence in the other case.
“This case reminds us of the challenges law enforcement agents and officers face on a daily basis. We are immensely grateful to these officers for acting swiftly to keep the courtroom safe,” said U.S. Attorney Chad Meacham.
According to court documents, on June 10, 2021 Mr. Gonzalez was sentenced to 365 months in federal prison for kidnapping a 9-year-old girl from a birthday part in Levelland, Texas.
Immediately after the sentencing hearing had concluded, Mr. Gonzales grabbed the microphone from the defendant’s podium and swung it violently at a Deputy U.S. Marshal, who grabbed him by the arm in an attempt to control his outburst.
Another Deputy Marshal rushed forward to help, but Mr. Gonzales changed toward him and rammed him into a wooden bench.
With the help of a courtroom security officer, an FBI task force officer, and three DEA agents who happened to be present, the Marshals were able to subdue the defendant. Throughout, Mr. Gonzales hurled insults, curses, and threats at the officers and agents.
In recorded jailhouse calls following the incident, Mr. Gonzales bragged about assaulting the Marshals, stating that he “threw” and “ran at” both of them.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorney Ryan Redd prosecuted the assault case; Assistant U.S. Attorney Callie Woolam prosecuted the kidnapping case.
Defendant Sentenced in Drug Conspiracy Directed from Two PrisonsRead the Press Release
ALBANY, Ga. – A defendant involved in a heroin and methamphetamine trafficking network directed by himself and another co-defendant from two Georgia prisons was sentenced to federal prison today for his crimes.
Co-defendant Eric Gilbert, 46, of Calhoun State Prison, was sentenced to 228 months in prison to be followed by five years of supervised release by U.S. District Judge Leslie Abrams Gardner after he previously pleaded guilty to conspiracy to possess with intent to distribute controlled substances. There is no parole in the federal system.
Two co-defendants previously pleaded guilty and were sentenced on Aug. 4:
Joseph Collins, 38, of Augusta State Prison, was sentenced to 240 months in prison to be followed by five years of supervised release after pleading guilty to conspiracy to possess with intent to distribute controlled substances. Co-defendant Christopher Ogle, 38, of Dalton, Georgia, was sentenced to 132 months in prison to be followed by five years of supervised release after pleading guilty to conspiracy to possess with intent to distribute controlled substances.
Co-defendant Natalie Espinoza, 27, of Sugar Hill, Georgia, is charged with one count of conspiracy to possess with intent to distribute controlled substances. If convicted, Espinoza faces a maximum sentence of life in prison and a $10,000,000 fine. Espinoza is a wanted person; those with knowledge of her whereabouts can contact the United States Marshals Service by calling 1-877-WANTED-2.
“The penalty is steep for incarcerated persons who continue to conduct their criminal activity behind prison walls,” said U.S. Attorney Peter D. Leary. “Working with our law enforcement partners, our office will hold incarcerated persons accountable if they break the law from behind bars.”
“These sentencings remove dangerous criminals from our streets and send a clear message to others who may be contemplating or who are polluting our communities with poison from behind prison walls,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “The takeaway is that DEA and its law enforcement partners have a watchful eye on such criminals and will relentlessly pursue them.”According to court documents, an undercover source informed law enforcement in June 2020 about drug trafficking being coordinated by Gilbert from the Calhoun State Prison, including information about his affiliation with the Ghost Face Gangster criminal street gang and a Mexican drug trafficking cartel. The source said Gilbert had customers across the Southeast. On June 16, 2020, the source ordered heroin from Collins, who was an inmate at Augusta State Prison. Collins directed the source to Gilbert; Gilbert was recorded stating that he had been distributing heroin and methamphetamine for ten years. Gilbert arranged the deal later that day with the source. Espinoza, who is a wanted person, delivered approximately 80 grams of heroin. Espinoza allegedly worked with Gilbert to coordinate illegal drug transactions for him outside of prison. A series of controlled and recorded purchases of heroin and methamphetamine occurred. On Jan. 5, 2021, officers in Whitfield County, Georgia, received information that Gilbert was supplying methamphetamine to Ogle. Under surveillance, the informant agreed to purchase one kilogram of methamphetamine from Gilbert, supplied by Ogle. Ogle agreed to meet the informant on Jan. 6, 2021; as agents closed in on Ogle, he threw a Ziploc bag and his phone into a nearby pond. Agents retrieved the phone and the plastic bag, which contained 772 grams of methamphetamine.
The case was investigated by DEA.
The case was prosecuted by Assistant U.S. Attorney Leah McEwen.
Clarksville Man Convicted of Attempting to Persuade A Minor to Engage in Unlawful Sexual Activity & Other CrimesRead the Press Release
NASHVILLE – A Clarksville, Tennessee, man was convicted yesterday of attempting to persuade a minor to engage in unlawful sexual activity; attempting to transfer obscene material to an individual under the age of sixteen; and destruction of evidence to prevent search or seizure; announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
Kevin Figueroa, 33, was found guilty of all counts following a bench trial before Chief U.S. District Judge Waverly D. Crenshaw, Jr.
Figueroa was indicted in April, following an investigation that began in November 2019, after Figueroa initiated online contact with an undercover FBI agent who was posing as a 15-year-old female. Figueroa used the profile of “Spike tkro,” which identified him as a 25-year-old male living in Nashville, Tenn., and was communicating through the online dating application, Meet24. Figueroa continued to message the undercover agent, even after confirming the undercover persona used by the agent was a 15-year-old female, and sent a picture of a penis.
Figueroa continued to communicate with the undercover agent and proposed meeting for sexual activity on November 26, 2019. The meeting was arranged, however Figueroa failed to show. In December 2019, Figueroa again initiated contact with the undercover agent, this time using the mobile dating application MeetMe and the profile of “Kevin F,” a 32-year-old male living in Clarksville. Figueroa turned the conversation to a sexual nature and again suggested meeting for sexual activity, again after confirming the undercover persona was a 15- year-old female. A meeting was eventually arranged for March 17, 2020, at the purported residence of the minor female. When Figueroa arrived at the location, he was met by FBI agents and detained. When Figueroa learned that the agents intended to seize his cell phone, he quickly deleted the Kik messaging application and attempted to delete the Plenty of Fish dating application.
During the course of the investigation and after being charged with these crimes, agents learned that Figueroa had engaged in sexual activity with multiple minor victims before his initial contact with the undercover agent.
Figueroa faces a mandatory minimum of 10 years, and up to life in prison, when he is sentenced on December 2, 2022.
Assistant U.S. Attorneys Monica Morrison and Robert E. McGuire are prosecuting the case.
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Chappaqua Man Sentenced to 21 Years for Participating in A Gunpoint Robbery of 176 Kilograms of Cocaine and Smuggling A Firearm into A Federal PrisonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that DEEJAY WHITE was sentenced today to 21 years in prison for his participation in a May 29, 2019, gunpoint robbery in the Bronx targeting more than 150 kilograms of cocaine; his participation in a conspiracy to smuggle contraband, including narcotics and a firearm, into a federal detention facility; and his possession of that firearm while incarcerated. On July 23, 2021, WHITE pled guilty before U.S. District Judge P. Kevin Castel, who imposed this sentence.
U.S. Attorney Damian Williams said: “Deejay White was responsible for a dangerous gunpoint robbery of more than 150 kilograms of cocaine that left several victims injured. Even more troubling, after he was arrested and in jail, White continued to commit crimes. White devised a perilous scheme to bring a gun and drugs into a federal prison. White placed inmates, prison staff, and court personnel in grave danger. Today’s lengthy sentence sends a clear message that those who endanger others will be brought to justice.”
According to the Information, court documents, and statements made in open court:
In or about late May 2019, DEEJAY WHITE learned that a Bronx-based member of a Puerto Rico-based drug trafficking organization (“DTO”) was expecting a delivery of furniture, which concealed approximately 176 kilograms of cocaine. WHITE and others planned a violent, gunpoint robbery of the DTO’s cocaine. On May 29, 2019, WHITE drove to the Bronx apartment where the DTO’s cocaine was stored and parked outside with his wife and young child in the car. Minutes later, four coconspirators forced entry into the apartment and held up the 10 victims, including four children, at gunpoint. Two victims were pistol-whipped during the robbery, and a third sustained serious injuries after jumping out of the apartment’s third-floor window in an attempt to flee to safety. One of the robbers threw a duffel bag containing dozens of kilograms of cocaine into WHITE’s car, which then drove off.
WHITE was arrested on November 25, 2019, on charges relating to the gunpoint robbery and conspiracy to distribute the stolen cocaine, ordered detained, and housed at the Metropolitan Correctional Center (“MCC”) in Manhattan. Days after entering the MCC, WHITE began using contraband cellphones to conspire with others, including his wife, to commit additional crimes. Among other things, WHITE directed his wife to smuggle drugs into in the MCC, including cocaine and oxycodone, which his wife did on multiple occasions.
In or about January 2020, WHITE conspired with his wife and others to have a loaded firearm smuggled inside the MCC, which they did successfully. When Bureau of Prisons (“BOP”) officials discovered a contraband cellphone in WHITE’s cell on or about February 26, 2020, WHITE reported to an MCC investigator that there was a gun inside the MCC. WHITE lied to the MCC investigator about his own role in smuggling the firearm into the MCC. Once alerted that there may be a firearm inside the MCC, the BOP imposed a lockdown, which lasted several days, while officials searched for the gun. Following a search of the MCC, on or about March 5, 2020, WHITE’s loaded firearm was located inside a wall of WHITE’s MCC jail cell.
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In addition to his prison term, WHITE, 45, of Chappaqua, New York, was sentenced to five years of supervised release.
Mr. Williams praised the outstanding investigative work of the New York City Police Department the Bureau of Alcohol, Tobacco, Firearms and Explosives , the New York Field Division of the Drug Enforcement Administration , the New York Office of the United States Postal Inspection Service, the New York State Police, the New York Office of the Federal Bureau of Investigation, Special Agents from the U.S. Attorney’s Office for the Southern District of New York, the U.S. Customs and Border Protection in New York, and the Department of Justice Office of the Inspector General New York Field Office.
This effort is part of an Organized Crime Drug Enforcement Task Force (“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.
The prosecution of DEEJAY WHITE for conspiracy to commit Hobbs Act robbery and brandishing a firearm in furtherance of a drug trafficking crime is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Juliana N. Murray, Ryan B. Finkel, Peter J. Davis, and Kaylan E. Lasky are in charge of the prosecution.
The prosecution of DEEJAY WHITE for conspiring to receive contraband in prison and being a felon in possession of a firearm is being handled by the Office’s Narcotics and Public Corruption Units. Assistant United States Attorneys Juliana N. Murray, Ryan B. Finkel, Peter J. Davis, Kaylan E. Lasky, Aline R. Flodr, Daniel H. Wolf, and Jonathan E. Rebold are in charge of the prosecution.
Brooklyn Man Indicted on Federal Charges for Kidnapping a Child from Reading, PARead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Duane Taylor, 47, of Brooklyn, New York, was charged by Indictment with kidnapping after abducting a minor child from her home in Reading, Pennsylvania, and transporting the child to his residence last month. The defendant made his initial appearance in federal court in the Eastern District of Pennsylvania on these charges earlier today.
According to court documents, on the morning of August 31, 2022, City of Reading Police officers responded to the victim’s home when the child’s mother reported her missing from her bedroom, where she had last seen her around 10:30 p.m. the evening prior before going to bed. After searching for the child, her mother observed the back door of her residence was wide open, and law enforcement found the chain lock on that door was broken. Investigators reviewed video surveillance footage from the home’s security system, which showed a person entering the living room area at approximately 2:00 a.m., and proceeding to the stairs leading to the second floor. A short time later, the victim is seen walking down those stairs and through the living room, followed by the person who was later identified as the defendant, whom the victim’s mother also stated was her former boyfriend. Reading investigators contacted the New York City Police Department, who traced the defendant to his residence in Brooklyn, but did not locate the victim there. The victim was located later that day when a citizen called 911 to report a child alone and asking for help because she had been kidnapped from Pennsylvania.
“On August 31, 2022, millions of people received notification of an Amber Alert for a missing child from Reading, PA. Thanks to the hard work of investigators in Pennsylvania and New York City, the alleged kidnapper was swiftly tracked down and the child was found and reunited with her mother,” said U.S. Attorney Romero. “As any parent can understand, this was a terrifying situation for this family, and this defendant will now appear in federal court to answer to these charges.”
“Imagine one morning finding your home’s door broken open and your child’s bed empty,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “It’s a parent’s worst nightmare come true. We’re so thankful that this young victim was recovered safely, and for the great collaboration by law enforcement partners in locating and arresting her alleged abductor. Anyone who would harm a child like this is simply depraved and must be held accountable.”
If convicted, the defendant faces a maximum possible sentence of life in prison.
The case was investigated by the Federal Bureau of Investigation, the Reading Police Department, and the New York City Police Department, and is being prosecuted by Assistant United States Attorney Sherri A. Stephan.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Bridgeport Man Pleads Guilty to Child Exploitation OffenseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that MICHAEL NASTU, 63, of Bridgeport, waived his right to be indicted and pleaded guilty today before U.S. District Judge Omar A. Williams in Hartford to a child exploitation offense.
According to court documents and statements made in court, in March 2021, Nastu, using the Kik social media application, initiated a chat with an FBI Online Covert Employee who was posing as a 14-year-old girl from Connecticut. Between March 31 and June 25, 2021, Nastu sent the OCE sexually explicit messages and several pictures and videos of male genitalia, and he attempted to entice the OCE to send him child pornography in return. Although they had multiple text exchanges about meeting in person, Nastu never travelled to meet the OCE.
Nastu pleaded guilty to one count of attempted transfer of obscene materials to a minor, an offense that carries a maximum term of imprisonment of 10 years.
Nastu was arrested on a criminal complaint on June 30, 2021. He is released on a $100,000 bond pending sentencing, which is not scheduled.
This investigation is being conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Amanda S. Oakes and Nancy V. Gifford through the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Boyd County Man Pleads Guilty to Violent KidnappingRead the Press Release
ASHLAND, Ky. – A Catlettsburg, Ky., man, Jonathan Lee Smithers, 41, pleaded guilty on Wednesday, before U.S. District Judge David Bunning, to a federal kidnapping charge.
According to Smithers’ plea agreement, on May 1, 2022, Smithers physically assaulted a victim with whom he was in a romantic relationship. Then, under threat of force and using a firearm, Smithers made the victim accompany him to a store, where he brandished the weapon, assaulted her with the weapon, and confined her in the vehicle. Smithers then drove her to the Flatwoods area. After again confining her in the vehicle, Smithers stopped the vehicle and forced her to exit. Thereafter, still armed, he forced her to accompany him on foot, requiring her to climb fences, trespass on private property, and traverse random routes around the area for several hours. She was eventually able to escape and hide from Smithers and law enforcement found her collapsed at a gas station. Smithers remained in the area on foot, was spotted coming out of the woods, and law enforcement responded. Upon being approached by law enforcement, Smithers shot the responding officer in the throat. The officer survived life-threatening injuries.
Pursuant to the plea agreement, Smithers faces a sentence of life imprisonment.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office; Col. Phillip Burnett, Commissioner, Kentucky State Police; Chief Todd Kelley, Ashland Police Department; Chief David Smith, Flatwoods Police Department; and Sheriff Matt Smith, Greenup County Sheriff’s Office, jointly announced the guilty plea.
The investigation was conducted by the FBI, KSP, Ashland Police Department, Flatwoods Police Department, and the Greenup County Sherriff’s Office. The United States was represented by Assistant U.S. Attorney Erin Roth.
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Blue Ash gun dealer pleads guilty to manufacturing firearms without a license, making false entries on dealer recordsRead the Press Release
CINCINNATI – The owner of a Blue Ash gun shop pleaded guilty in U.S. District Court today to manufacturing firearms without a license, selling them, and knowingly reporting sales incorrectly on federal firearms forms.
Limin Ye, 53, of Blue Ash, Ohio, who owns and operates Opticzoom and Limin Sports Gun Shop, pleaded guilty to one count of engaging in the business of manufacturing firearms without a license and one count of aiding and abetting making false entry in records by a federal firearms dealer.
Terms of Ye’s plea agreement require her to forfeit more than 520 firearms and firearm receiver frames, surrender her federal firearms license, and not to apply or reapply for a federal firearms license. That prohibition applies to any business entity with which she is associated, either legally or in fact.
According to court documents, the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Industry Operations Investigators (IOI) conducted a compliance inspection at Opticzoom on Jan. 26 and found 71 lower receivers that Ye had manufactured into firearms, as well as a large stock of firearms parts and lower receivers that could be used to manufacture firearms. The inspectors told Ye that she was not allowed to sell the firearms she built because she did not have a federal firearms manufacturing license.
Yet three days later, an undercover agent went to the Dayton Gun Show and purchased two illegally manufactured firearms from Ye, who was a vendor at the show. Ye instructed one of her employees to list the purchase on the ATF 4473 transfer form as just “receivers” or the lower portion of a firearm instead of accurately listing the purchase as pistols.
Further investigation determined that Ye had been manufacturing firearms without a license since April 2021.
Manufacturing firearms without a license is punishable by up to five years in prison. False entry is punishable by up to one year in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; and Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), announced the plea entered today before U.S. District Judge Douglas R. Cole. Assistant United States Attorney Ashley N. Brucato is representing the United States in this case.
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Blair Man Sentenced for Plot to Kill Federal Fish and Wildlife OfficerRead the Press Release
Acting United States Attorney Steven Russell announced that Cody A. Cape, 24, of Blair, Nebraska, was sentenced today by United States District Judge Brian C. Buescher to a sentence of 117 months’ incarceration for Threatening to Murder a Federal Law Enforcement Officer and Carrying and Using a Firearm During a Crime of Violence. There is no parole in the federal system. Upon his release, Cape will serve a 3-year term of Supervised Release.
In October 2020, Cape was cited by a United States Fish and Wildlife Service (USFWS) Officer, for a fishing violation. Cape and his friend were subjects of an ongoing poaching investigation that was being investigated by the Officer. During the course of this investigation, Cape’s phone was seized pursuant to a search warrant.
On December 24, 2020, Cape was picked up by his friend and Cape directed his friend to drive to a specific location, which was the Officer’s personal residence in Blair. Cape then had his friend drive him to an apartment in Omaha where Cape retrieved a .45 caliber handgun and a rifle. Cape directed his friend to drive to the Desoto National Wildlife Refuge to look at the employee housing to see if the Officer was there. Cape’s friend refused. Cape placed his handgun on his lap and directed his friend to take him to Desoto National Wildlife Refuge. His friend was fearful and complied. The Desoto National Wildlife Refuge is located on the Nebraska – Iowa border. The main entrance to Desoto National Wildlife Refuge is in Iowa.
On their return from Desoto National Wildlife Refuge, Cape discussed ways he planned to kill the Officer to include using C4, TNT, or dynamite. Cape discussed wiring explosives to the Officer’s USFWS vehicle or throwing explosives through a window into the Officer’s residence to kill the Officer and his family. His friend later contacted police to report what had happened and Cape’s statements.
Cape was located by Blair Police Department officers on December 25, 2020, and had a .45 caliber handgun in his vehicle. Cape was interviewed by FBI and USFWS officers and admitted to making statements about killing the Officer, although Cape claimed he was not serious. Cape stated he was under a lot of stress due to the Officer’s poaching investigation. When asked if he had made statements to kill the Officer, Cape stated “probably” and then went on to state, “I don’t know where the f### I’d get that s###.” When asked for clarification, Cape stated “C4.”
This case was investigated by the Federal Bureau of Investigation, the United States Fish and Wildlife Service, and the Blair Police Department.
Beverly Hills Man Pleads Guilty to Charge for Using Fake Companies in Scheme to Steal Millions of Dollars in COVID Small Business LoansRead the Press Release
LOS ANGELES – A Beverly Hills man – whose sons pleaded guilty earlier this month to felonies for defrauding COVID-relief programs – pleaded guilty today to a federal criminal charge for fraudulently seeking more than $6.7 million in COVID-related small business loans for more than half a dozen fake companies.
Ramiro Da Rosa Mendes, 61, pleaded guilty to one count of wire fraud.
According to his plea agreement, from April 2020 to August 2020, Mendes schemed to fraudulently obtain federal disaster relief funds distributed through the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) programs that were intended to help small businesses through the economic shock of the COVID-19 pandemic.
Mendes claimed to own numerous fake businesses purportedly based in Beverly Hills, including One Wilshire Enterprises, Professional Music Services, and MB Property Management Group LLC. These companies were fake businesses that did not exist prior to the COVID-19 pandemic and did not have any operations or employees.
Mendes also claimed to be the owner of fake real estate services companies, including Ramiro Mendes Real Estate Services, Real Estate Services, and Real Estate Invesst-ments, also located in Beverly Hills and Massachusetts, as well as other businesses registered in Wyoming.
In his plea agreement, Mendes admitted to submitting 19 applications for PPP and EIDL loans that contained false and fraudulent information, including the purported existence of payroll expenses, phony tax forms, and the operational status of the businesses.
For example, on June 24, 2020, Mendes submitted a fraudulent PPP loan application to a Florida-based bank, seeking a loan of $975,100. The loan application falsely stated that One Wilshire Enterprises employed 18 people, had an average monthly payroll of $390,040, and, according to a false tax form, earned $4,810,149 in revenue in 2019. Based on this false information, the bank approved and funded a PPP loan in the amount of $793,300. The loan amount was wired into a bank account Mendes controlled.
Mendes admitted in his plea agreement to stealing the COVID-relief loans and misusing the proceeds for his own personal benefit, including the purchase of cryptocurrency. He further admitted that the intended loss in this case was approximately $6,708,963 and the actual loss was at least approximately $2,228,302.
United States District Judge Percy Anderson scheduled a December 12 sentencing hearing, at which time Mendes will face a statutory maximum sentence of 20 years in federal prison.
In separate cases, Mendes’ sons – Ammon Jose de Pina Mendes, 26, of Beverly Hills, and Mateus Pina Mendes, 33, of Los Angeles – each pleaded guilty on September 1 to one count of wire fraud. Using the names of fake businesses, Ammon and Mateus Mendes fraudulently obtained approximately $222,225 and $143,283, respectively, in PPP and EIDL loans. Their sentencing hearings are scheduled for November 29, at which time each defendant will face up to 20 years in federal prison.
This matter was investigated by the FBI; the Federal Housing Finance Agency – Office of the Inspector General; the United States Postal Inspection Service; the Federal Deposit Insurance Corporation – Office of the Inspector General; the Treasury Inspector General for Tax Administration – Office of the Inspector General; IRS Criminal Investigation; and the Small Business Administration – Office of the Inspector General.
Assistant United States Attorney Scott Paetty of the Major Frauds Section and Trial Attorney Jennifer Bilinkas of the Justice Department’s Fraud Section are prosecuting this case.
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 Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Berkeley County man sentenced for drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Dandre Trayham, of Martinsburg, West Virginia, was sentenced this week to 51 months of incarceration for distributing heroin, fentanyl, cocaine base, and cocaine hydrochloride, United States Attorney William Ihlenfeld announced.
Trayham, age 33, pleaded guilty in February 2022 to one count of “Conspiracy to Possess with Intent to Distribute Heroin, Fentanyl, Cocaine Base, and Cocaine Hydrochloride.” He admitted to working with others to sell the drugs from August 2020 o June 2021 in Berkeley County and elsewhere.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Beaumont Man Sentenced for Federal Drug Trafficking and Firearms ViolationsRead the Press Release
BEAUMONT, Texas – A Beaumont man has been sentenced to 10 years in federal prison for drug trafficking and firearms violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Tywayne Marquis Parker, 31, pleaded guilty on Feb. 8, 2022, to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime and was sentenced to 120 months in federal prison today by U.S. District Judge Marcia Crone.
According to information presented in court, on June 21, 2021, Parker was stopped in Beaumont for a traffic violation. A search of the vehicle revealed two firearms, approximately 100 grams of pills containing methamphetamine, and a large amount of cash and other evidence of drug trafficking.
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 Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Russell James.
Bank Robber Pleads GuiltyRead the Press Release
December 2021 Robbery of Independent Bank in Grand Rapids
GRAND RAPIDS, MICHIGAN – Kristin Cole Greinke, 41, of Grand Rapids, pleaded guilty to robbing Independent Bank located at 3090 Plainfield Avenue, N.E. in Grand Rapids, Michigan, U.S. Attorney Mark Totten announced today.
“Bank robbery doesn’t pay,” said U.S. Attorney Mark Totten. He continued, “Greinke faces up to 20 years in prison for his offense. We will continue to hold accountable anyone who commits this or similar crimes.”
On December 16, 2021, Greinke took a taxicab to Independent Bank. He went into the bank and presented a demand note that stated, “This is a robbery money in the bag no bait bills or dye packs or I’ll come back and kill you all 100 on the side.” The teller gave Greinke $6,230 and Greinke left the bank and witnesses saw him get in the taxi. The police contacted the taxicab company and reached the driver through dispatch. The driver made an excuse to stop and Greinke got out but was quickly arrested by responding officers. All of the money was recovered.
Greinke pleaded guilty to the bank robbery charge. He is scheduled to be sentenced by the Honorable Hala Y. Jarbou, U.S. District Judge, on Tuesday, January 31, 2023 and faces a maximum penalty of 20 years in prison. The judge will determine his sentence after considering the U.S. Sentencing Guidelines and other statutory factors, including that Greinke was previously convicted of bank robbery in federal court in 2003.
The Grand Rapids Police Department, Kent County Sheriff’s Department, and FBI investigated the case. Assistant U.S. Attorney Daniel Mekaru is prosecuting the case.
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Ballwin Man Admits Supplying Fatal Fentanyl, Hiding Body in BackyardRead the Press Release
ST. LOUIS – A man from Ballwin, Missouri on Thursday admitted providing the fentanyl that killed an acquaintance in 2020, and then hiding the body in the backyard.
Quinton O’Bryan Adaway, 26, pleaded guilty in front of U.S. District Judge Henry E. Autrey to one count of distributing fentanyl.
Adaway admitted that late in the evening of July 11, 2020 or early the next morning, he provided several capsules containing fentanyl to a man he’d known for several years. The victim, identified in court documents as “M.C.,” had bought drugs from Adaway in the past or traded drugs with him, the plea says, and both struggled with drug abuse. Adaway warned M.C. that the capsules were more potent than capsules M.C. had previously used.
M.C. was parked at the rear of the home on Holly Terrace Court where Adaway was living. He took the fentanyl in his car before leaving, overdosed and died. Later that day or the next, Adaway discovered the body and tried to hide it in the backyard by partially covering it with cloth and placing items around it. Adaway also removed the SIM card from M.C.’s cellular phone and disposed of the phone.
M.C.’s family and girlfriend began looking for him on July 12. M.C.’s girlfriend contacted Adaway, who denied knowing where he was. The next day, they reported M.C. missing to police and tracked M.C.’s cell phone to Adaway’s house.
The family contacted the Ballwin Police Department, and officers found M.C.’s body. Police found the SIM card, two of the victim’s debit cards, drugs and drug paraphernalia in Adaway’s home.
Adaway is scheduled to be sentenced January 12. Both sides have agreed to recommend a 10-year prison sentence.
Adaway was sentenced to four years in state prison after pleading guilty in St. Louis County Circuit Court to a felony charge of abandoning a corpse.
The Ballwin Police Department investigated this case. Assistant U.S. Attorney Jennifer Szczucinski is prosecuting the case.
Arizona City Man Sentenced to 27 Months for Straw Purchasing 82 Firearms Bound for MexicoRead the Press Release
PHOENIX, Ariz. – On September 13, 2022, Jorge Zuniga-Aguilera, 23, of Arizona City, Arizona, was sentenced by United States District Judge Douglas L. Rayes to 27 months in prison, followed by 36 months of supervised release. Zuniga-Aguilera previously pleaded guilty to Making a False Statement During the Purchase of a Firearm.
Between September 2020 and June 2021, Zuniga-Aguilera straw purchased at least 82 firearms from Arizona gun stores and put them into illegal commerce. Two of these firearms were recovered by law enforcement in Mexico City, Mexico. One was used to murder a Mexican citizen.
Zuniga-Aguilera purchased the firearms for a person whom he knew did not have legal status in the United States—and who therefore could not legally purchase firearms—in exchange for money. To make the purchases, Zuniga-Aguilera lied about where he lived and lied about being the true purchaser of the firearms.
“Border security means protecting our neighbor’s sovereignty,” said United States Attorney Gary Restaino. “When American guns flow south into Mexico, we all lose. Straw purchase prosecutions are an important step in securing the border and protecting communities in both countries.”
“ATF is committed to stopping illegal firearms trafficking both within the United States and internationally,” said Brendan Iber, ATF Special Agent in Charge. “We will continue to work with our law enforcement partners to identify and stop straw purchasers and those persons or organizations enabling straw purchasers.”
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, many 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 Bureau of Alcohol, Tobacco, Firearms and Explosives, assisted by the U.S. Customs and Border Protection, conducted the investigation in this case. Assistant U.S. Attorney Coleen Schoch, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-21-00744-DLR-PHX
RELEASE NUMBER: 2022-160_Zuniga-Aguilera# # #
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.
10-Time Felon from Indianapolis Sentenced to 12 Years in Federal Prison for Methamphetamine TraffickingRead the Press Release
TERRE HAUTE – Varonique Lowe, 44, of Indianapolis, was sentenced to twelve years in federal prison after pleading guilty to possession with the intent to distribute methamphetamine.
According to court documents, on September 29, 2021, Lowe was arrested in Terre Haute, Indiana, following a traffic stop. Lowe, who was driving the vehicle, stated she did not have a valid driver’s license. When the officer approached initially approached Lowe’s vehicle, he noticed the smell of burnt marijuana. A police K9 was called in to perform a narcotics search of Lowe’s vehicle, which resulted in a positive alert. A search of the vehicle revealed 768 grams of pure methamphetamine found inside of an Igloo cooler. Lowe admitted to possessing the methamphetamine with the intent to sell it to others. There were also two minor children in Lowe’s vehicle at the time of the traffic stop.
Lowe has 10 prior felony and 21 misdemeanor convictions in California, including six convictions relating to the sale of controlled substances and assault with a deadly weapon.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Michael Gannon, Assistant Special Agent in Charge of the DEA’s Indianapolis Field Office, made the announcement.
The Drug Enforcement Administration and the Terre Haute Police Department investigated the case. The sentence was imposed by U.S. District Judge Jane Magnus-Stinson. As part of the sentence, Judge Stinson ordered that Lowe be supervised by the U.S. Probation Office for five years following her release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Pamela S. Domash who prosecuted this case.
21 September 2022
West Virginia Ambulance Services Business Owner Indicted for Tax CrimesRead the Press Release
A federal grand jury in Charleston, West Virginia returned an indictment today charging a Pineville man with willful failure to pay over employment taxes and obstructing the IRS’s collection efforts.
According to the indictment, Christopher J. Smyth operated Wyoming County’s Best Ambulance Service Inc., Stat Ambulance Service Inc., and Stat EMS LLC, all of which provided ambulance services in Wyoming County, West Virginia. Smyth allegedly was responsible for collecting and paying over to the IRS employment taxes withheld from the wages of the three companies’ employees. Even though he allegedly withheld these funds from the wages of Stat Ambulance Service’s employees, Smyth did not pay to the IRS the full employee withholdings or the full employer’s share. After the IRS imposed penalties against Smyth for not paying over these funds, he allegedly stopped operating Stat Ambulance Service and created Stat EMS in the name of a nominee owner. Smyth nonetheless allegedly continued operating the new ambulance business in the same manner as the previous company, and did not pay over to the IRS all of the employment taxes owed on behalf of the employees of Stat EMS.
After the IRS attempted to collect the unpaid employment taxes for Stat EMS, as well as the resulting penalties, Smyth allegedly attempted to obstruct the IRS’s efforts by making false and misleading statements. Specifically, the indictment charges that Smyth stated that he did not own Stat EMS and did not have a personal bank account. To further obstruct the IRS’s collection efforts, Smyth allegedly paid personal expenses from Stat EMS’s business bank accounts, transferred funds from Stat EMS to bank accounts he controlled, and diverted his own paychecks into a bank account titled in the name of another person.
Smyth will be scheduled to make his initial court appearance before the U.S. District Court for the Southern District of West Virginia at a future date. If convicted, Smyth faces a maximum sentence of five years in prison for each of four counts of willful failure to pay over employment taxes and three years in prison for obstructing the IRS. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney William S. Thompson for the Southern District of West Virginia made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Alexander Effendi and Andrew Ascencio of the Tax Division and Assistant U.S. Attorney Erik Goes for the Southern District of West Virginia are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Wausau Man Sentenced to 84 Months for Methamphetamine DistributionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Jacob Ring, 31, Wausau, Wisconsin was sentenced today by U.S. District Judge William M. Conley to 84 months in federal prison for distributing 50 grams or more of methamphetamine. This prison term will be followed by 5 years of supervised release. Ring pleaded guilty to this charge on May 27, 2022.
Law enforcement developed Ring as a suspected methamphetamine dealer in April 2021 after a number of witnesses described Ring as a well-known source of methamphetamine in the Wausau area. In June and July 2021, law enforcement used a confidential informant to purchase over 50 grams of methamphetamine from Ring on two occasions. When Ring was arrested in August 2021, Ring had with him a backpack containing over 300 grams of methamphetamine, a digital scale, and a smoking device.
In sentencing Ring, Judge Conley stated a significant sentence was warranted because of Ring’s lengthy criminal history and the amount of methamphetamine he distributed. Judge Conley also noted that Ring was under supervision for prior Wisconsin methamphetamine convictions at the time he committed the offenses in this case. Judge Conley ordered the sentence imposed in this case to run concurrently with any other sentence Ring is serving as a result of revocation of that supervision.
The charge against Ring was a result of an investigation conducted by the Wisconsin Department of Justice Division of Criminal Investigation; Central Wisconsin Drug Task Force; Wausau Police Department; and the Marathon County Sheriff’s Office. The prosecution of this case has been handled by Assistant United States Attorney Taylor L. Kraus.
Vice President of Raleigh Healthcare Company Pleads Guilty to Making and Using Fake Physician Orders in Medicare AuditRead the Press Release
RALEIGH, N.C. – Kala Sloan, 28, pleaded guilty today to falsifying physician orders on behalf of a company that billed Medicare for millions of dollars. According to the criminal information and evidence summarized in Court, between 2014 and 2021, Carolina Rehab Products, Inc. (CRP) and Blue File DMC, LLC (Blue File) billed Medicare $50 million for durable medical equipment, such as back, shoulder, knee and wrist braces. The evidence showed that, in many instances, CRP and Blue File billed Medicare without supporting physician orders and without shipping the products. Tanya Parrish Grant, 51, of Raleigh, Sloan’s co-conspirator, was the CEO and Controller of the companies. Grant pled guilty to Healthcare Fraud in July of 2022 for her role as the orchestrator of the scheme.
Sloan was the Vice President of Operations for the companies, and knowingly submitted forged documents to prevent Medicare auditors from discovering prior false billings and recouping money. In October 2020, Cigna, a Medicare Advantage insurer, conducted an audit of claims submitted by CRP for reimbursement. According to the evidence presented in court, CRP did not have doctor’s orders or medical records sufficient to justify the billing to Cigna. At the direction of Grant, Sloan prepared blank prescription templates to mimic the orders that should have been in the patient files. Grant used the templates to forge and backdate the prescriptions to deceive auditors. Sloan the provided these documents to Cigna as though they were genuine and in existence prior to the audits.
Sloan pleaded guilty to Making/Using False Healthcare Writings and Documents and Aiding and Abetting. She faces a maximum of up to five years in prison.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge Terrence W. Boyle accepted the plea. The United States Department of Health and Human Services Office of the Inspector General, and the Federal Bureau of Investigation, investigated the case. Assistant U.S. Attorneys William M. Gilmore and Karen Haughton are prosecuting the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:22-cr-00191-BO.
Vallejo Tax Preparer and Business Owner Pleads Guilty to Assisting in Filing False Tax ReturnsRead the Press Release
SACRAMENTO, Calif. — Emilio Lara, 55, of American Canyon, pleaded guilty Tuesday to willfully aiding and assisting in the preparation and presentation of false and fraudulent income tax returns, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Lara was the owner of Lara’s Income Tax Services, an income tax preparation business in Vallejo. From 2009 to 2012, Lara prepared individual income tax returns for clients on which he falsely inflated certain Schedule A deductions. Lara listed inflated amounts for medical and dental expenses, charitable contributions by cash or check, charitable contributions other than by cash or check, and unreimbursed employee expenses, resulting in a loss to the IRS.
According to the plea agreement, Lara agreed to pay back $7,868 in restitution for tax loss to the IRS. Lara further agreed to a tax preparation injunction, which means he will be permanently prohibited from preparing or filing federal tax returns for anyone other than himself.
This case is the product of an investigation by the Internal Revenue Service – Criminal Investigation. Assistant U.S. Attorneys Michael Anderson and Emily Sauvageau are prosecuting the case.
Lara is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Jan. 10, 2023. Lara faces a maximum statutory penalty of three years in prison and a $100,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
U.S. Attorney, FBI file domestic violence charges for Tohatchi assaultRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced that Anthony Joe was charged with assault of a spouse, intimate partner, or dating partner by strangling and assault resulting in serious bodily injury in Indian Country. Joe, 37, of Tohatchi, New Mexico, and an enrolled member of the Navajo Nation, appeared in federal court on Sept. 20 for a preliminary and detention hearing and will remain in custody pending trial, which has not been scheduled.
According to a criminal complaint, on Aug. 13, Joe allegedly assaulted his dating partner. Joe and the victim had been in a four-year relationship and shared a six-month-old child. The victim was attempting to leave Joe’s residence to stay with her mother when Joe allegedly violently assaulted her. Joe allegedly punched the victim with a closed fist in the back of her head and in her side while she was holding their child. Joe allegedly kicked the victim in the back and pulled her away from the door by her hair. During the assault, Joe allegedly used his arm to choke the victim from behind, then knocked her down and used his hands to choke her.
The victim eventually escaped from the residence without her child. She ran to a nearby gas station and called law enforcement.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Joe faces up to 10 years in prison for each charge.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Nation Police Department. Assistant United States Attorney Brittany DuChaussee is prosecuting the case.
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Twice Convicted Felon Going to Prison for Drug Trafficking and Firearms PossessionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Rudolph Brumfield a/k/a Rudy, 36, of Geneva, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine, and possession of a firearm and ammunition by a convicted felon, was sentenced to serve 210 months in prison by Senior U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Brett A. Harvey, who handled the case, stated that Brumfield was the leader of a cocaine trafficking organization operating in Geneva and other areas of Ontario County. During the conspiracy, Brumfield obtained quantities of cocaine and marijuana from suppliers in California and elsewhere. In January 2020, investigators and officers from the Geneva Police Department and the Ontario County Sheriff’s Office executed search warrants at the Toledo Street residence of Brumfield’s girlfriend, which was used to store, manufacture, and sell the cocaine and marijuana, and at Brumfield’s North Genesee Street residence. During the searches, they recovered:
• 2.7 kilograms of cocaine and 69.7 grams of crack cocaine; • 18 one-pound packages of marijuana; • $161,581 in cash; • two firearms, one which was reported stolen in 2013, and a box of ammunition; • and materials commonly used to package drugs for street-level distribution.
Brumfield was previously convicted in 2006 and 2012 of felony charges in Ontario County Court and is legally prohibited from possessing firearms and ammunition.
The sentencing is the result of an investigation by the Ontario County Sheriff’s Office, under the direction of Sheriff Philip Povero, the Geneva Police Department, under the direction of Chief Mike Passalacqua; and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent In Charge John B. DeVito.
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Three Family Members of the Former Director of the St. Clair Housing Commission Plead Guilty to Conspiracy and to Defrauding HUDRead the Press Release
DETROIT – Three family members of the former executive director of the St. Clair Housing Commission, Lorena Loren, pleaded guilty today to various federal offenses due to their involvement in Loren’s fraudulent scheme to steal money from the U.S. Department of Housing and Urban Development (HUD), United States Attorney Dawn N. Ison announced.
Ison was joined in the announcement by Machelle L. Jindra, Special Agent in Charge of the U.S. Department of Housing and Urban Development and James Tarasca, Special Agent in Charge, Federal Bureau of Investigation.
Lorena Loren (now deceased) had previously pleaded guilty and been sentenced to prison for conspiring with several family members to steal federal funds provided to the St. Clair Housing Commission by HUD to administer low-income housing programs within St. Clair County. As part of her scheme, Loren stole approximately $336,000 in federal funds, including money earmarked for HUD’s Housing Choice Voucher program, commonly known as Section 8 housing, which allows low-income families to lease privately owned rental properties with the assistance of HUD rental subsidies.
Today, the three family members who pleaded guilty before the Honorable Mark A. Goldsmith are as follows:
Brian Loren (Lorena Loren’s husband), age 61, pleaded guilty to conspiring to commit federal program fraud. According to court records, Brian Loren conspired with his wife and others to embezzle money from the St. Clair Housing Commission. Brian Loren and another individual opened a joint bank account at a PNC Bank in Deland, Florida. Between August 2014 and August 2016, fraudulent Section 8 rental subsidy payments were issued to the PNC Joint Account Holder to benefit Lorena Loren, Brian Loren, and the PNC Joint Account Holder.
Ryan Loren (Lorena Loren’s son), age 35, pleaded guilty to receiving unlawful compensation from HUD with the intent to defraud. Ryan Loren admitted that, from August 2008 through August 2016, he made false statements to HUD and to a federal grand jury regarding where he lived in order to receive improper funds from HUD. Ryan Loren agreed that he illegally received between $40,000 and $95,000.
Kayla Loren (Ryan Loren’s wife and Lorena Loren’s daughter-in-law), age 31, also pleaded guilty to receiving unlawful compensation from HUD with the intent to defraud. Like her husband, Kayla Loren admitted that, from August 2010 through August 2016, she made false statements to HUD and to a federal grand jury regarding who lived with her in order to receive improper funds from HUD. Kayla Loren also agreed that she received between $40,000 and $95,000.
As part of her their guilty pleas, the defendants paid the remaining restitution owed to HUD. The total amount of restitution paid today was $99,835.29. In total, $336,340.22 in restitution has been repaid to HUD as a result of the prosecutions of the Loren family.
U.S. Attorney Dawn Ison commended the work of HUD and the FBI in conducting this criminal investigation and said, “The HUD Section 8 program serves some of the neediest in our community, very low-income families, the elderly, and the disabled. We are committed to prosecuting public officials who steal from any federal program and anyone who assists public officials in depriving lawfully-entitled citizens of the vital assistance they need.”
“HUD OIG is committed to bringing to justice those who fraudulently divert Federal housing program resources for their own personal gain,” said Special Agent in Charge, Machelle L. Jindra. “Together, with our law enforcement partners, we will pursue and hold accountable bad actors who prey on our most vulnerable communities and steal taxpayer funded resources that support these programs.”
“Having been trusted to serve the residents of St. Clair as a public official, Lorena Loren instead conspired with her family to steal federal funds for herself and her family, and today that family is admitting their collective role in that criminal scheme,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “This case is yet another example of the FBI’s commitment to rooting out public corruption in order to protect the integrity of the institutions that are supposed to serve the best interests of our citizens.
Brian Loren faces a maximum of five years in prison and a fine of up to $250,000. Ryan Loren and Kayla Loren each face a maximum of one year in prison and a fine of up to $100,000. A sentencing date will be set by the court.
The case was originally prosecuted by Dawn N. Ison and is now being prosecuted by Assistant United States Attorneys Sarah Resnick Cohen, Craig A. Weier, and Gjon Juncaj.
The case was investigated by agents of U.S. Department of Housing and Urban Development-Office of Inspector General and the Federal Bureau of Investigation.
Three Defendants Plead Guilty to Murder and Assault on the Red Lake Indian ReservationRead the Press Release
ST. PAUL, Minn. – Three individuals have pleaded guilty for their roles in a murder that took place in August 2019 on the Red Lake Indian Reservation, announced United States Attorney Andrew M. Luger.
According to court documents, on August 12, 2019, Alexia Gah Gi Gay Mary Cutbank, 21, of Bemidji, Mia Faye Sumner, 21, of Duluth, and Daniel Charles Barrett, 31, of Redby, armed with at least one handgun, entered the garage of a residence where Daniel Alan Johnson was known to reside. Once inside, Cutbank fired multiple gunshots, fatally wounding Johnson and seriously injuring a second victim, T.B.S. The three defendants returned to the waiting vehicle and left the scene. To assist the defendants in avoiding arrest, Rose Celeste Siewert, 50, of Cass Lake, drove Cutbank, Barrett, and Sumner off the Red Lake Indian Reservation.
Cutbank pleaded guilty yesterday before Senior U.S. District Judge Susan Richard Nelson to one count of aiding and abetting murder in the second degree and one count of aiding and abetting assault resulting in serious bodily injury. Barrett pleaded guilty on August 16, 2022, to one count of aiding and abetting murder in the second degree. Siewert pleaded guilty on September 14, 2022, to one count of accessory after the fact. Sentencing hearings for Cutbank, Barrett, and Siewert have not yet been scheduled. Sumner is currently scheduled to go to trial on October 31, 2022.
This case is the result of an investigation conducted by the Red Lake Tribal Police Department, the FBI, the FBI Headwaters Safe Trails Task Force, the Duluth Police Department, the Minnesota Bureau of Criminal Apprehension, and the Minnesota Department of Corrections, in collaboration with the United States Attorney’s Office Missing and Murdered Indigenous Persons Initiative.
Assistant U.S. Attorney Deidre Y. Aanstad is prosecuting the case.
Texas Man Sentenced for Fraud and Money Laundering Conspiracies Targeting Federally-Funded Meal Programs for Underprivileged YouthRead the Press Release
PITTSBURGH – A resident of Texas was sentenced in federal court for his role in defrauding federally-funded meal programs, United States Attorney Cindy K. Chung announced today.
Senior United States District Judge Arthur J. Schwab sentenced Charles Simpson, 44, of Dallas, Texas, to 30 months’ incarceration following his guilty plea to conspiracy to commit mail and wire fraud. Judge Schwab also ordered Simpson to pay restitution to the U.S. Department of Agriculture in the amount of $1,500,000, and to forfeit an additional approximately $427,000.
During Simpson’s plea hearing on May 19, 2022, he admitted, among other things, that he and his co-conspirators, Tanisha Jackson and Paige Jackson, operated HOIN, Inc. (HOIN), a Texas-based non-profit organization. The co-conspirators caused HOIN (a/k/a Helping Others In Need) to enroll as a “sponsor” in two programs funded by the United States Department of Agriculture (USDA) for the purpose of providing meals to underprivileged youth—the Child and Adult Care Feeding Program (CACFP) and the Summer Food Service Program (SFSP) (collectively, the feeding programs). CACFP funded after-school meal service during the school year, while SFSP operated in the summer months. In Pennsylvania, the Pennsylvania Department of Education (PADOE) administered the USDA-funded feeding programs. Simpson also acknowledged having previously been excluded from participating in the feeding programs in other states.
As part of the conspiracy, Simpson admitted that he and Tanisha Jackson caused the submission of false enrollment documentation to PADOE on behalf of HOIN in connection with its participation in CACFP and SFSP between 2015 and 2019. Among other misrepresentations, HOIN’s applications to PADOE used aliases for Simpson and Tanisha Jackson as a means to obscure their involvement and falsely certified that none of its principals had been excluded from the feeding programs. Simpson further admitted causing HOIN to submit reimbursement claims for hundreds of thousands of meals that were never served to eligible children by either inflating the number of meals that, in fact, were served, or by seeking reimbursements for meals purportedly served on days on which the identified feeding site was not operating at all. To conceal their fraudulent conduct and justify HOIN’s claimed meal service, Simpson and Tanisha Jackson submitted fabricated documents to PADOE in connection with periodic program reviews. On certain occasions, Tanisha Jackson would impersonate Paige Jackson, her daughter, in interactions with PADOE. Likewise, Paige Jackson used a fictitious name in dealings with PADOE. In total, PADOE issued reimbursement payments to HOIN in excess of approximately $4 million between 2015 and 2019.
In connection with the money laundering conspiracy, Simpson admitted that he and Tanisha Jackson engaged in numerous financial transactions involving the proceeds of the fraud. Specifically, Simpson and Tanisha Jackson spent hundreds of thousands of dollars in HOIN reimbursements on shopping sprees at high-end apparel stores, personal air travel and lodging, and the acquisition of at least nine luxury vehicles, including a Bentley, two Land Rovers, two Maseratis, two Mercedes, a Hummer, and a Porsche. Simpson and Tanisha Jackson also withdrew cash from HOIN bank accounts in excess of $10,000 on more than a dozen occasions.
Tanisha Jackson and Paige Jackson have separately entered guilty pleas and will be sentenced on Oct. 20, 2022, and Nov. 2, 2022, respectively.
Assistant United States Attorneys Eric G. Olshan and Nicole Vasquez Schmitt are prosecuting this case on behalf of the government.
The United States Department of Agriculture – Office of Inspector General, Internal Revenue Service – Criminal Investigation, and Federal Bureau of Investigation conducted the investigation of the defendants in this case.
Tennessee Man Sentenced to More than 27 Years in Prison for Child Pornography CrimesRead the Press Release
HUNTINGTON, W.Va. – Matthew Corban Hagy, 51, of Memphis, Tennessee, was sentenced today to 27 years and four months in prison, to be followed by 15 years of supervised release, for production and possession of child pornography. Hagy must also register as a sex offender.
A federal jury found Hagy guilty of one count each of production of child pornography and possession of child pornography on May 24, 2022. Evidence at trial established that Hagy traveled from Tennessee to Putnam County, West Virginia, as the caretaker for a man visiting family in Poca during the week of Christmas 2020. While there, Hagy took nude photographs of a 5-year-old boy and produced a graphic video of the boy. A search of Hagy’s phone revealed more than 700 additional images and videos of child pornography. In a statement given to police, Hagy admitted that he took a picture of the boy, but denied doing anything inappropriate.
“This individual did unspeakable harm to a child, and the sentence imposed today reflects that and makes sure that Hagy cannot prey on anyone else for a very long time,” said United States Attorney Will Thompson. “This is an important example of excellent casework and coordination by the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), the Putnam County Sheriff’s Department, the South Charleston Police Department, and the United States Secret Service. I also commend Assistant United States Attorneys Julie White and R. Gregory McVey for prosecuting the case.”
United States District Judge Robert C. Chambers imposed the sentence.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-99.
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