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Friday 5 August 2022
San Antonio Man Sentenced to 30 Years for Production of Child PornographyRead the Press Release
SAN ANTONIO – A San Antonio man was sentenced today to 30 years in prison for production of child pornography.
According to court documents, on December 1, 2020, officers from the San Antonio Police Department were called regarding a complaint that Michael Anthony Martinez Jr., 34, had video of child pornography on his cellular phone. A search warrant was executed on Martinez’s phone and numerous files depicting prepubescent children engaged in sexually explicit conduct were found. Also on the phone was a video Martinez filmed showing him sexually abusing a two-year-old child.
On April 7, 2022, Martinez pleaded guilty to one count of production of child pornography. Martinez has been in federal custody since his arrest on March 8, 2021.
“As a society, we must vigilantly protect the innocence and health of our children,” said Executive Assistant U.S. Attorney Kristy Callahan. “This defendant was caught only because someone had the courage to report him and protect a child from a dangerous predator. For the sake of our future generations, we must let authorities know when suspected child abuse is occurring.”
“The horrible acts perpetrated by those who exploit and victimize innocent children demand justice, and that’s why the FBI works tirelessly every day with our law enforcement partners on these cases,” said FBI San Antonio Special Agent in Charge Oliver E. Rich Jr. “This sentencing is a reminder of our continued focus on holding these dangerous predators accountable.”
The FBI and the San Antonio Police Department investigated the case.
Assistant U.S. Attorney Tracy Thompson 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 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 www.justice.gov/psc.
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San Antonio Bookkeeper Sentenced for FraudRead the Press Release
SAN ANTONIO – A San Antonio woman was sentenced today to 33 months in prison for financial and tax fraud.
According to court documents, Alicia Henderson, 60, was the office manager and bookkeeper for a non-profit corporation that provided services for the San Antonio Downtown Public Improvement District. Her responsibilities included oversight of the accounting and financial reporting functions for the non-profit corporation.
Between July 2014 and November 2017, Henderson forged or wrote to herself 118 checks drawn on the non-profit’s bank account and deposited the funds into her personal bank account. Henderson used the stolen money, totaling $291,385.23, for her own personal benefit but did not report the embezzled funds on her federal tax forms. Henderson owed $64,719 in taxes for 2014 to 2016.
In addition to the prison sentence, Henderson also was ordered to pay $356,104.23 in restitution. On October 21, 2020, Henderson pleaded guilty to one count of wire fraud and one count of false statements on an income tax return.
“Ms. Henderson betrayed the public trust by first stealing from a non-profit and then failing to pay taxes on her income,” said Executive Assistant U.S. Attorney Kristy Callahan. “Our office will continue to vigorously prosecute those who use their positions to defraud citizens of San Antonio for their own personal enrichment.”
“This individual took advantage of her position to personally enrich herself at the expense of the citizens of San Antonio,” said FBI San Antonio Special Agent in Charge Oliver E. Rich Jr. “The public can have confidence that the defendant will be held accountable for the crimes she committed.”
“The fraud and tax crimes perpetrated by Alicia Henderson cause people to distrust otherwise lawful enterprises and non-profit organizations,” said Special Agent in Charge Ramsey E. Covington, of IRS-Criminal Investigation’s Houston Field Office, which includes San Antonio in its jurisdiction. “The sentencing today hopefully helps restore some of that public trust and reinforce to other would-be criminals and tax evaders that there is a price to pay for crime.”
The FBI and IRS-CI investigated the case.
Assistant U.S. Attorneys Joseph E. Blackwell and William R. Harris prosecuted the case.
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Repeat child pornography offender sentenced to 10 years in prisonRead the Press Release
ST. LOUIS – U.S. District Judge Audrey G. Fleissig on Friday sentenced a man who was caught with child pornography for a second time to 10 years in prison.
Johnny Lee Hesse, now 41, pleaded guilty to a charge of possession of child pornography in 2013 and was sentenced to nearly five years in prison, followed by 20 years of supervised release.
In March of 2021, the U.S. Probation Office received a tip that Hesse was again in possession of child pornography. A search found an unapproved cell phone and a laptop computer, and Hesse admitted using both to search for child pornography. Hesse had over 1,000 images containing child pornography, including images he’d deleted, his plea agreement says.
Hesse pleaded guilty in May to one count of possession of child pornography and one count of accessing with intent to view child pornography.
The case was investigated by the U.S. Probation Office and Homeland Security Investigations. It 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. 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.
Readout of Justice Department Meeting with Families of Fallen OfficersRead the Press Release
The Attorney General, Deputy Attorney General, and Associate Attorney General today met with families of fallen officers to discuss the importance of the passage of the Public Safety Officer Support Act of 2022. The bipartisan bill expands coverage of the Public Safety Officers' Benefits Program, administered by the Justice Department’s Bureau of Justice Assistance, to include officers who are permanently and totally disabled due to particular mental health disorders and/or who die by suicide as a result of exposure to a traumatic event they encounter while on duty.
“Every day, public safety officers across the country put themselves in harm’s way to respond to some of the most difficult and traumatic moments that our communities face,” said Attorney General Merrick B. Garland. “The Justice Department welcomes the passage of the Public Safety Officer Support Act of 2022, which will enable us to provide support to the families of fallen officers who have died by suicide and to officers who have suffered debilitating trauma-related mental health injuries.”
“The Justice Department knows the toll that service in law enforcement can take, not only on those in uniform but also on those around them,” said Deputy Attorney General Lisa O. Monaco. “We commend Congress for passing the Public Safety Officer Support Act of 2022. It provides critical new support to families of the fallen. We will continue to do everything we can to ensure that public safety officers throughout the law enforcement community are cared for and protected, just as they care for and protect us all.”
“Supporting public safety officers and their families after a tragic loss or catastrophic disability is one of our solemn responsibilities at the Justice Department,” said Associate Attorney General Vanita Gupta. “Since 1976, the Public Safety Officers’ Benefits Program—administered by the Bureau of Justice Assistance—has provided nearly $2 billion in assistance to survivors of first responders. This bipartisan legislation is a welcome response to concerns expressed by the public safety community that this support be extended to recognize harms from an exposure to trauma while on duty. We commend members of Congress for their leadership on this issue and look forward to putting this bill to work on behalf of the brave professionals who serve and protect our communities.”
During the meeting, Department leadership heard directly from families about the unique grief of losing a loved one to suicide and discussed the impact this legislation will have on the healing process for families. Department officials recognized that public safety officers are routinely called to respond to stressful and potentially traumatic situations, often putting their lives in danger.
Participating in the meeting were family members of officers Howard “Howie” Liebengood of the U.S. Capitol Police, Jeffrey Smith of the D.C. Metropolitan Police Department, and Shelane Gaydos of the Fairfax County Police Department.
Rapid City Man Sentenced to Federal Prison for Illegal Possession of FirearmRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Rapid City, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on July 29, 2022, by Judge Jeffrey L. Viken, U.S. District Court.
Nathaniel Jones, age 54, was sentenced to 30 months in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Jones was indicted by a federal grand jury in 2021 and pleaded guilty on December 17, 2021. The conviction stems from Jones, who was previously convicted of a misdemeanor crime of domestic violence and is prohibited from possessing firearms, knowingly possessing a Taurus, model PTl11 G2c, 9xl9mm Luger caliber, semiautomatic pistol, which was found after Jones came into contact with law enforcement in August 2021 in Rapid City.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Jones was immediately remanded to the custody of the U.S. Marshals Service.
Pinon Man Arrested for Alleged Murder of Missing Navajo Woman and Acts of Domestic ViolenceRead the Press Release
PHOENIX, Ariz. –Yesterday, Tre C. James, 30, of Pinon, Arizona, was arrested for first-degree murder and several acts of domestic violence. James had his initial appearance yesterday before United States Magistrate Judge Camille D. Bibles. A detention hearing is scheduled for Tuesday, August 9, 2022, in Flagstaff, Arizona.
Earlier this week, a federal grand jury returned an eight-count indictment against James. Counts 1 and 2 allege James shot and killed Jamie Yazzie, a Pinon woman who went missing in the summer of 2019, and whose remains were found on the Hopi Indian Reservation in November 2021. Ms. Yazzie was listed as a missing person by both federal and tribal law enforcement, and the circumstances of her disappearance were investigated jointly by the Navajo Nation Division of Public Safety Criminal Investigation Services, Navajo Nation Police Department, Bureau of Indian Affairs, Navajo County Sherriff’s Office, and the Federal Bureau of Investigation.
James was also indicted for several acts of domestic violence. Counts 3 through 8 allege that James committed acts of domestic violence against three victims – between 2018 and 2021 – including suffocation, strangling, kidnapping, and assault with a dangerous weapon.
The U.S. Attorney’s Office for the District of Arizona is committed to addressing the persistent violence endured by Native American families and communities in the state of Arizona, including by working with Tribal nations to address the important issues of missing or murdered indigenous persons and acts of domestic violence. This office and the Department of Justice view this work as a priority for its law enforcement components.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The United States Attorney’s Office, District of Arizona, Phoenix, is handling the prosecution.
CASE NUMBER: CR-22-08073-PHX-PCT-DLR
RELEASE NUMBER: 2022-131_James# # #
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.
Peoria Man Sentenced to 11 Years in Prison for Distribution of Child PornographyRead the Press Release
PEORIA, Ill. – A Peoria, Illinois man, Kiantre D. Dykeman, 24, of the 5100 block of North Karen Court, has been sentenced to 132 months in federal prison, followed by 10 years of supervised release for distribution of child pornography. Dykeman must also register as a sex offender.
At the sentencing hearing, the government presented evidence that in February 2021, the Peoria Police Department coordinated with the Peoria County Sheriff’s Department and the United States Secret Service to investigate an individual suspected of selling images of child pornography on the Internet. Agents discovered during the investigation that Dykeman used Instagram to post images of prepubescent females accompanied by prices for various packages of child pornography and “teen nudes” images and videos. The account held by Dykeman represented that it had over 1,000 pictures depicting child pornography available for sale.
In March 2021, law enforcement executed a search warrant at Dykeman’s residence in Peoria. Dykeman admitted to using Instagram to advertise the sale of child pornography images and videos. He stated he downloaded the child pornography but did not create the images. A review of Dykeman’s online accounts established that he had distributed child pornography to others, in exchange for money, using online messaging and had received payment using internet-based applications. Evidence presented at sentencing established that Dykeman was engaged in distributing child pornography for approximately a two-month period and had received approximately $200 in exchange for distributing the images and videos of children engaged in sex acts with adults.
In imposing the sentence, U.S. District Court Judge James Shadid noted that the victims in child pornography cases are real people who have been sexually abused as children, and they are victimized and traumatized over and over again their entire lives by the reality that images of their abuse are sent out into cyberspace and traded for others’ gratification or gain.
Dykeman was indicted in March 2021 and pleaded guilty on April 4, 2022. He has been in the custody of the U.S. Marshals since that date.
The statutory penalties for distribution of child pornography are 5 to 20 years of imprisonment, 5 years to life of supervised release, and possible fines of up to $250,000.
“The Department of Justice is committed to the safety and well-being of children and will continue to aggressively identify, investigate, and prosecute those who engage in the receipt, possession, distribution, and production of images of child sex abuse,” said Assistant U.S. Attorney Ronald L. Hanna.
The Peoria Police Department and the United States Secret Service, along with the assistance of the Peoria County Sheriff’s Office and the Bloomington Police Department investigated the case. Assistant U.S. Attorney Ronald L. Hanna represented the government in the prosecution.
The case against Dykeman was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
Pelion Man Sentenced to 4 Years for Defrauding Investors Out of More Than $3 MillionRead the Press Release
COLUMBIA, SOUTH CAROLINA — Samuel Sturkie Jackson, Jr., 51, of Pelion, was sentenced to four years in federal prison for defrauding individual investors out more than three million dollars.
“When taxpayers invest their hard-earned money in a business, they have every right to expect that no one will rob them,” said U.S. Attorney Adair F. Boroughs. “Samuel Jackson did exactly that, and stole millions. With the thorough work of our state and federal partners, this Office brought him to justice and he will spend several years in federal prison and has been ordered to make restitution to his victims.”
“The U.S. Secret Service remains focused on bringing those who commit financial crimes to justice,” said John Hirt, Special Agent in Charge of the Columbia Field Office for the U.S. Secret Service. “In this instance, Samuel Jackson turned his investors into victims, betraying their trust to carry out his own embezzlement scheme. I commend our partners at SLED and the U.S. Attorney’s Office for their efforts working alongside the U.S. Secret Service personnel that investigated this case in order to bring some justice to the victims in this scheme.”
“White-collar crime costs all of us,” said South Carolina Law Enforcement Division (SLED) Chief Mark Keel. “SLED agents and our law enforcement partners will continue to aggressively pursue those who seek to defraud others.”
Evidence presented to the Court showed that, while operating an Automated Transaction Machine (ATM) business called Little Giant ATM, Jackson solicited investments from individual investors and promised them a monthly rate of return. The purpose of these investments was to load cash into the ATM machines, with anticipated profits from transaction fees. However, from 2015 to 2019, Jackson converted money from the business and investor deposits to his own use, spending the money on farm equipment, cars, and trips to Las Vegas. Through this scheme, Jackson defrauded Little Giant ATM investors of over $3.4 million.
United States District Judge Terry Wooten sentenced Jackson to 48 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system. Jackson was also ordered to pay $3.4 million in restitution.
The case was investigated by the U.S. Secret Service and SLED. First Assistant U.S. Attorney Book Andrews prosecuted the case.
Ohio Man Sentenced for Possession with Intent to Distribute Fentanyl and CocaineRead the Press Release
Acting United States Attorney Steven Russell announced that Jesus Guillen Lopez, 46, of Alvordton, Ohio, was sentenced today in federal court in Lincoln, Nebraska, for possession with intent to distribute 100 grams or more of fentanyl and 5 kilograms or more of cocaine. United States District Judge John M. Gerrard sentenced Lopez to 87 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a two-year term of supervised release.
On April 16, 2021, a Nebraska State Patrol trooper stopped a Chevy Traverse on I-80 for following too close. Lopez was the driver and told the trooper he was coming from Sacramento, California. Lopez gave law enforcement permission to search the vehicle. Law enforcement located 12.9 pounds of fentanyl and 14 pounds of cocaine in the engine compartment of the vehicle.
This case was investigated by the Nebraska State Patrol.
North Pekin Man Sentenced to 6 Years in Prison for Solicitation and Distribution of Child PornographyRead the Press Release
PEORIA, Ill. – A North Pekin, Illinois man, Larry Daniel Saal, 54, of the 100 block of Lincoln Boulevard, was sentenced on August 3, 2022, to 6 years in the Bureau of Prisons for soliciting an obscene visual depiction of a minor and for distribution of child pornography. The sentence is to be followed by a 6-year term of supervised release. Saal must also register as a sex offender and pay $13,000 in restitution to the victims.
At the sentencing hearing in front of U.S. District Court Judge Joe Billy McDade, the government presented evidence that, in 2015, Saal emailed another individual on Yahoo to request images and videos depicting adults sexually abusing prepubescent children. In 2016, Saal emailed images and videos containing child pornography to another Yahoo user. Law enforcement officers interviewed Saal in 2021, and he admitted receiving child pornography through Yahoo. Law enforcement officers obtained a search warrant for his phone, and they found images of child pornography and internet searches related to child pornography from April 2021.
Saal was indicted in September 2021 and pleaded guilty in February 2022.
The statutory penalties for each count are 5 to 20 years of imprisonment, a fine of up to $250,000, and 5 years to life of supervised release.
The Washington Police Department and Department of Homeland Security investigated the case, assisted by the Illinois State Police. Assistant U.S. Attorney Keith Hollingshead-Cook represented the government in the prosecution.
The case against Saal was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
North Carolina Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Calvin Moore, 32, of Silver City, North Carolina, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on October 14, 2021, law enforcement officers visited a Sixth Street residence in Charleston looking for Moore. In an attempt to flee, Moore jumped out of a window of the residence. After a brief struggle, officers detained Moore and found a loaded Bryco Arms Jennings .22LR firearm with a chambered round in Moore’s front pants pocket. The firearm was found to have been stolen.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Moore is prohibited from possessing a firearm because of his 2012 felony conviction in North Carolina for robbery with a dangerous weapon.
Moore is scheduled to be sentenced on November 3, 2022 and faces a maximum penalty of 10 years in prison, three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Monica D. Coleman is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-217.
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Newell Woman Sentenced to Federal Prison for Drug DistributionRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Newell, South Dakota, woman convicted of Distribution of a Controlled Substance was sentenced on August 4, 2022, by Judge Karen E. Schreier, U.S. District Court.
Kimberly Rich, age 56, was sentenced to six years and six months in federal prison, followed by five years of supervised release. Rich was also ordered to pay $170 restitution to the South Dakota Health Lab and a $100 special assessment to the Federal Crime Victims Fund.
Rich was indicted by a federal grand jury in February 2022 and pleaded guilty on May 13, 2022. The conviction stems from Rich knowingly and intentionally distributing a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, in January 2022.
The investigation was conducted by the South Dakota Division of Criminal Investigation and the Meade County Sheriff’s Office. Assistant U.S. Attorney Kelsey Blair prosecuted the case.
Rich was immediately remanded to the custody of the U.S. Marshals Service.
Newark, DE Man Pleads Guilty to Prescription Fraud Charges Just Before TrialRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Maurice Bertrand, 34, of Newark, DE, pleaded guilty just before jury selection was set to begin for trial in front of United States District Court Judge Harvey Bartle III, to one count of fraudulently obtaining oxycodone, and one count of attempting to fraudulently obtain oxycodone.
In September 2019, the defendant was charged in connection with his scheme to present forged prescriptions written under the name of a Center City doctor whom he had never met at a Marcus Hook area pharmacy. Evidence which would have been presented at trial would have shown that in May 2019, Bertrand obtained 90 oxycodone tablets, and in June 2019, he was intercepted by law enforcement while attempting to obtain 120 oxycodone tablets.
The charges against Bertrand and 12 other defendants were originally announced as part of the formation of the Newark/Philadelphia Regional Medicare Fraud Strike Force, a joint law enforcement effort that brings together the resources and expertise of the Health Care Fraud Unit in the Department of Justice Criminal Division’s Fraud Section, and the U.S. Attorney’s Offices for the Eastern District of Pennsylvania and the District of New Jersey. The Strike Force focuses its efforts on aggressively investigating and prosecuting complex cases involving patient harm, large financial loss, and the illegal prescribing and distribution of opioids and other dangerous narcotics. Bertrand is the last of the 13 total defendants to plead guilty to federal charges in connection with this investigation and faces up to eight years in prison.
“Stopping prescription fraud in order to stem the tide of illegal opioid distribution and addiction in our District is a top priority for our Office,” said U.S. Attorney Romero. “This thirteenth and final conviction in this investigation demonstrates our commitment to cutting off the supply of addictive drugs diverted to the streets in order to keep our communities safe.”
These cases were investigated by the Drug Enforcement Administration’s Tactical Diversion Squad and the U.S. Department of Health and Human Services Office of Inspector General, with assistance from the Easttown Township Police Department. The case is being prosecuted by Assistant U.S. Attorney David E. Troyer.
New York Woman Sentenced for Smuggling Suboxone into PrisonRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on August 4, 2022, Jessika Ann Sanders, age 34, of New York, was sentenced to three and a half months’ imprisonment to be followed by a two-year term of supervised release by Chief United States District Court Judge Matthew W. Brann, for providing contraband in prison.
According to United States Attorney Gerard M. Karam, Tyrone Wayne Meachem was an inmate at the Federal Correctional Institution, Allenwood (FCI Allenwood), in White Deer, Pennsylvania. On April 7, 2018, Sanders visited Meachem and gave him a sandwich containing three balloons filled with 68 strips of Suboxone. Suboxone contains buprenorphine, a controlled substance. Meachem recruited Sanders to smuggle the Suboxone so Meachem could pay off a debt to another inmate.
The case was investigated by the Federal Bureau of Prisons and the Federal Bureau of Investigation. Special Assistant U.S. Attorney Drew O. Inman and Assistant U.S. Attorney Geoffrey W. MacArthur prosecuted the case.
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New Orleans Man Sentenced to 64 Months for Violating the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – On August 4, 2022, United States District Judge Carl J. Barbier sentenced STEPHONE BRIDGES to 64 months in the Bureau of Prisons for being a felon in possession of a firearm, in violation of the Federal Gun Control Act, announced U.S. Attorney Duane A. Evans.
BRIDGES was charged on November 19, 2021 in a one-count indictment with possessing a Glock 49x 9mm semi-automatic pistol and a red transparent magazine with 18 live rounds while being a convicted felon. BRIDGES’s term of imprisonment will be followed by three (3) years of supervised release and the court ordered him to pay a $100 mandatory special assessment fee.
This case was brought as part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U. S. Attorney Duane A. Evans praised the work of the New Orleans Police Department, the Orleans Parish District Attorney’s Office, and the United States Federal Bureau of Investigation. The prosecution was handled by Assistant United States Attorney Rachal Cassagne.
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New Orleans Man Sentenced for Mortgage FraudRead the Press Release
NEW ORLEANS, LOUISIANA – THEODORE KURZ, age 72, a resident of New Orleans, Louisiana, was sentenced on August 4, 2022 for mortgage fraud by the Honorable Nannette Jolivette Brown, announced U.S. Attorney Duane A. Evans. KURZ was sentenced to time served, 5 years of supervised release, $751,900 in restitution, and a mandatory $100 special assessment fee.
According to court documents, KURZ obtained mortgages for three properties through the State of Louisiana, Division of Administration, Office of Community Development. He then forged mortgage cancellations that he filed with the Orleans Parish Clerk of Court to falsely make it appear that the loans had been satisfied. KURZ then obtained mortgages through a different lender, falsely claiming that there were no outstanding mortgages or liens on the properties.
U.S. Attorney Evans praised the work of the Office of Inspector General for the U.S. Department of Housing and Urban Development and the Federal Bureau of Investigation for investigating this matter. The prosecution of this case was handled by Assistant U. S. Attorney G. Dall Kammer, Chief of General Crimes Unit.
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Nampa Man Sentenced to 10.5 Years in Federal Prison for Distribution of MethamphetamineRead the Press Release
BOISE – A Nampa man was sentenced to 126 months in federal prison for distribution of methamphetamine.
According to court records, on June 9, 2021, Jason Paul Janes, 45, of Nampa, Idaho, distributed more than two pounds of methamphetamine for $3,800 to another person.
Janes has criminal history spanning nearly three decades, and includes convictions for burglary, forgery, and possession of a controlled substance.
U.S. District Judge Scott W. Skavdahl, from the District of Wyoming, sitting by designation, also ordered Janes to pay a $250 fine and to serve 5 years of supervised release following his prison sentence. Janes pleaded guilty to the charge on February 16, 2022
U.S. Attorney Josh Hurwit, of the District of Idaho made the announcement and commended the efforts of Treasure Valley Metro Violent Crime Task Force, which led to charges.
This case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit www.treasurevalleypartners.org.
This case was investigated by Treasure Valley Metro Violent Crime Task Force. The Task Force is comprised of federal, state, and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Ada County Sheriff’s Office; Boise Police Department; Caldwell Police Department; Canyon County Sheriff’s Office; Meridian Police Department; Nampa Police Department; and Idaho Department of Correction.
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Minnesota Man Sentenced to 10 Years in Prison for Illegally Possessing a ShotgunRead the Press Release
A Minnesota man who possessed a 12-gauge shot gun while using marijuana and being a convicted felon, was sentenced August 4, 2022 to 10 years in federal prison.
Michael Anthony Hangman, age 36, from Worthington, MN, received the prison term after a guilty plea to possession of a firearm by a prohibited person.
At the plea hearing, Hangman admitted to possessing a 12-gauge shotgun while being an unlawful user of marijuana and having prior felony convictions. Hangman led law enforcement on a police chase beginning in Minnesota and ending in Iowa. Hangman was traveling at speeds reaching 100 mph. Hangman’s shotgun was modified or cut to approximately 19 inches. Officers recovered marijuana, a digital scale with meth residue on it, and baggies from Hangman’s car. Hangman was prohibited from possessing firearms due to his drug use and prior felony convictions in the State of Minnesota for Terroristic Threats-Reckless Disregard, and Drugs-Storing Meth Paraphernalia in the Presence of Child or Vulnerable Adult.
Evidence presented at sentencing also revealed that Hangman brutally assaulted an inmate while incarcerated in the Woodbury County Jail on July 16, 2021 pending trial in this case and stabbed two more inmates in U.S. Penitentiary Leavenworth shortly before sentencing, on July 11, 2022.
Hangman was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Hangman was sentenced to 120 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorneys Ron Timmons and Mikala Steenholdt-Purdy, and was investigated by Osceola County Sheriff’s Office, Osceola County Attorney’s Office, Nobles County Sheriff’s Office (MN), Buffalo Police Department (MN), Bureau of Alcohol, Tobacco, & Firearms,
Iowa Division of Criminal Investigations Crime Laboratory, and Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4003.
Follow us on Twitter @USAO_NDIA.
Milton Man Sentenced for Money LaunderingRead the Press Release
BOSTON – The owner of a used car dealership in Fall River has been sentenced for money laundering.
Augustine Osemwegie, 53, of Milton, was sentenced on Aug. 3, 2022 by U.S. Senior District Court Judge Rya W. Zobel to six months of home confinement and two years of supervised release. Osemwegie was also ordered to pay a fine of $5,500 and forfeiture. On April 21, 2022, Osemwegie pleaded guilty to one count of money laundering.
Osemwegie used his car dealership, vehicle auctions and international car shipping to launder and transmit the proceeds of romance scams, pandemic unemployment fraud and other fraudulent schemes. Specifically, Osemwegie accepted fraud proceeds in cash from “customers,” took a percentage fee for laundering the funds and then used the remaining funds to purchase used vehicles at auto auctions, purportedly for the use of his customers. Osemwegie then shipped those vehicles abroad, principally to Nigeria, where they were sold for the benefit of Osemwegie’s customers.
In September 2020, during recorded calls and meetings with an undercover agent, Osemwegie agreed to accept fraud proceeds from the undercover agent and transfer them abroad, under the guise of purchasing a used luxury sedan.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Ian Stearns of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.
Mexican National Indicted for Illegal Re-EntryRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced today that JUAN MARTINEZ-CASTANEDA, a/k/a “Fernando A. Lopez”, a/k/a “Juan C. Martinez”, a/k/a “Oscar Flores”, a/k/a “Martin Peralta”, a/k/a “Juan Castaneda”, age 54, was charged on August 4, 2022 in a one-count indictment for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a).
According to the indictment, JUAN MARTINEZ-CASTANEDA (“MARTINEZ-CASTANEDA”) reentered the United States after he was previously deported on February 3, 2003. If convicted, MARTINEZ-CASTANEDA faces a maximum term of imprisonment of two years, a maximum fine of up to $250,000, a maximum term of supervised release of up to one year, and a mandatory $100 special assessment fee.
U. S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement in investigating this matter. Assistant U. S. Attorney Carter K. D. Guice, Jr. is in charge of the prosecution.
Methuen Man Pleads Guilty to Fentanyl Trafficking ChargesRead the Press Release
BOSTON – A Methuen man pleaded guilty on Aug. 3, 2022 in federal court in Boston to his involvement in a fentanyl distribution conspiracy.
Nino De Leon Guzman, a/k/a “Chino,” 31, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl, two counts of distribution of fentanyl, one count of distribution of 40 grams or more of fentanyl and one count of possession with intent to distribute 400 grams or more of fentanyl. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Oct. 27, 2022. Guzman was charged in June 2021 and subsequently indicted by a federal grand jury in July 2021.
From October 2020 through in or about June 2021, undercover law enforcement agents purchased fentanyl from Guzman and his associated drug trafficking organization on nine separate occasions in the Lawrence and Methuen area. At the time of his arrest on June 23, 2021, Guzman was found in possession of fentanyl and the cell phone undercover agents used to call him for fentanyl deals. A subsequent search of Guzman’s residence in Methuen resulted in the recovery of a kilogram brick of fentanyl, a blender containing multiple bags of fentanyl, a drug ledger, clothing he had worn in prior drug transactions and a sock in a nightstand containing $2,500 cash in drug proceeds.
“Drug traffickers who pedal the poison that is fentanyl will be aggressively prosecuted by our office,” said First Assistant United States Attorney Joshua S. Levy. “The quantities at issue in this prosecution put real lives at risk and inflict a huge amount of harm on the hardworking people of Lawrence and Methuen who want to raise their families in communities free from drug trafficking and violence.”
“Fentanyl is causing tremendous damage to the state of Massachusetts,” Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division. “This court proceeding should act as a warning to those traffickers who are distributing this poison in order to profit and destroy people’s lives. DEA’s top priority is combating the opioid epidemic by working with our local, county, state and federal partners to bring to justice anyone who distributes this deadly drug.”
The charges of conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl and possession with intent to distribute 400 grams or more of fentanyl each provide for a mandatory minimum sentence of 10 years and up to life in prison, at least five years and up to a lifetime of supervised release and a fine of up to $10 million. The charges of distribution of 40 grams or more of fentanyl each provide for a mandatory minimum sentence of five years and up to 40 years in prison, at least four years and up to a lifetime of supervised release and a fine of $5 million. The charge of distribution of fentanyl provides for up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins, First Assistant U.S. Attorney Levy and DEA SAC Boyle made the announcement today. Assistant U.S. Attorney Lindsey E. Weinstein of Rollins’ Narcotics & Money Laundering Unit is prosecuting the case.
Maryland Man Indicted for Employment Tax ViolationsRead the Press Release
A Maryland man made his initial appearance in federal court yesterday after being charged with 16 counts of willful failure to collect, account for and pay over employment taxes to the IRS.
According to the indictment, Brett Hill, of Parkton, owned and operated two telecommunications companies and was responsible for collecting and paying to the IRS income, Social Security, and Medicare taxes withheld from the wages of employees at both companies. Hill allegedly collected such taxes from the employees of the two companies but did not pay those taxes to the IRS or file quarterly employment tax returns. In total, Hill did not pay to the IRS approximately $900,000 in payroll taxes related to the two companies.
If convicted, Hill faces up to five years in prison for each of 16 counts of willful failure to collect or pay over employment taxes. 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 Erek L. Barron for the District of Maryland made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Shawn Noud and Catriona Coppler of the Justice Department’s Tax Division 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.
Man Who Posed as Teenager on Social Media Sentenced to 30 Years for Child Sexual ExploitationRead the Press Release
A 34-year-old man who posed as a teenage boy in order to solicit sexually explicit images from underage girls has been sentenced to 30 years in federal prison, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Matthew Ray Flores, of Fort Worth, was charged in January 2022. He pleaded guilty in February to sexual exploitation of a child and possession of child pornography and was sentenced Thursday to 360 months in federal prison by U.S. District Judge Reed C. O’Connor.
According to court documents, Mr Flores concocted an alias, 15-year-old “Ben Garcia,” which he used on various social media platforms to target 12 to 17 year old girls.
In November 2019, Mr. Flores reached out to a 14-year-old girl online and arranged a visit to her home. Because her family was inside the house at the time, he climbed into her bedroom through a window. Shaken by his apparent age, the child asked him to leave.
In the days that followed, Mr. Flores demanded she send him sexually explicit images of herself. She initially sent him partially-clothed photos, but eventually complied and sent nude photos. He then informed her that because he had “something to use against her,” she better let him back into her home.
Over the course of the next three months, Mr. Flores threatened to send the nude photos to friends and neighbors and sell them online to “rapists” if she did not send him additional photos. He eventually showed up at her bedroom armed with a condom, but she told him “we aren’t having sex,” and pushed him back out the window.
“I went through something no little girl my age should have gone through. I was vulnerable and lonely, which made me an easy target,” the victim testified at Thursday’s sentencing hearing. “I’ll never be the same as I was before. I hated myself for so long, feeling so confused and alone because of him… I can finally say this with the strength I have now: He has no power over me. I will not allow him to hold me back anymore.”
At the sentencing, prosecutors revealed that this was a pattern Mr. Flores exhibited the same pattern with at least seven victims over the course of two years.
The Fort Worth Police Department’s Internet Crimes Against Children Unit (ICAC) and the United States Secret Service’s Dallas Field Office conducted the investigation with the assistance of the Fort Worth Police Department’s Digital Forensics Lab, the McKinney Police Department, the United States Secret Service’s Los Angeles Field Office, and the Los Angeles County District Attorney’s Office. U.S. Attorney Brandie Wade prosecuted the case.
Man Sentenced to Prison for $4.7 Million Bank Fraud SchemeRead the Press Release
A California man was sentenced today in the Eastern District of New York to four years in prison for defrauding American Express of approximately $4.7 million and for laundering the proceeds of his fraud.
According to court documents and evidence presented at trial, between November 2017 and December 2019, Jasminder Singh, 45, of Fremont, used four business entities that he created and controlled and 10 American Express credit cards in those entities’ names to purchase thousands of Apple iPhones. He then sold the iPhones to overseas purchasers for millions of dollars. As part of his scheme, Singh falsely told American Express that he was unable to repay approximately $4.7 million in charges incurred from the purchase of the iPhones, and created fake payment invoices in order to secure additional credit from American Express. Singh then used the proceeds of the scheme to pay for personal expenses and to buy luxury items, including a $1.3 million home and a luxury vehicle.
Singh was ordered to pay $4,651,845.08 in restitution and ordered to forfeit $3,018,602.22.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Breon Peace for the Eastern District of New York; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; and Assistant Director-in-Charge Michael J. Driscoll of the FBI’s New York Field Office made the announcement.
The FBI investigated the case.
Trial Attorney Patrick J. Campbell of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michael W. Gibaldi of the Eastern District of New York prosecuted the case.
Madison Man Sentenced to 6 Years for Drug TraffickingRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Keante K. Gunn, 32, Madison, Wisconsin was sentenced yesterday by U.S. District Judge William M. Conley to 6 years in federal prison for possessing heroin, fentanyl, crack cocaine, and methamphetamine with the intent to distribute. The prison term will be followed by 5 years of supervised release. Gunn pleaded guilty to this charge on May 12, 2022.
On April 16, 19, 22, and 26, 2021, Dane County Narcotics Task Force officers, using a confidential informant and an undercover officer, purchased crack cocaine and heroin laced with fentanyl from Gunn in Madison.
On June 16, 2021, law enforcement officers arrested Gunn and searched his residence in Madison and in Gunn’s bedroom found a bag containing crack cocaine, heroin with fentanyl, and methamphetamine. In a safe in the same bedroom, officers found a Glock 9mm handgun with two loaded magazines. Gunn’s DNA was later discovered on one of the loaded magazines. Later that day, Gunn was interviewed by law enforcement and admitted that the drugs found in his apartment was his drug stash to sell to customers.
Gunn was prohibited from legally possessing a firearm based on multiple prior felony convictions. During the time of the controlled drug buys and home search, he was on extended supervision for three states cases, two involving convictions for second degree recklessly endangering safety and the other for burglary. His state supervision was revoked in September of 2021 and he is currently serving a total sentence of 18 months in state prison with an anticipated release date of November 24, 2022. Judge Conley ordered this federal sentence run concurrently with the remainder of Gunn’s state prison sentence.
At sentencing, Judge Conley explained that Gunn’s combination of dealing dangerous drugs and possessing a firearm posed a substantial danger to the community. He noted that Gunn had previously served 9 years in state prison on a series of prior cases involving a violent domestic relationship.
The charge against Gunn was the result of an investigation conducted by the Dane County Narcotics Task Force, Madison Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Steven P. Anderson prosecuted this case.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach involves collaboration by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent and deter gun violence.
Los Angeles Man Pleads Guilty to Insider Trading ConspiracyRead the Press Release
ST. PAUL, Minn. – A Los Angeles man has pleaded guilty to his role in an insider trading conspiracy involving a medical device company’s nonpublic business acquisition deal.
According to court documents, Afshin “Alex” Farahan, 55, of Los Angeles, admitted that beginning in January 2018 through at least August 2020, he and co-defendants Doron “Ron” Tavlin, 66, of Minneapolis, and David Gantman, 56, of Mendota Heights, willfully engaged in an insider trading conspiracy. The conspiracy involved nonpublic information about the acquisition of Company B, an Israeli-based company that specialized in robotics for spinal procedures, by Company A, an Ireland-based medical device company that primarily operated from its executive headquarters in Minneapolis. Tavlin, a former vice president of Company B, learned material, nonpublic information about Company A’s potential acquisition of Company B. In violation of his duty to the company, Tavlin tipped this information about the acquisition to his friend, Farahan, who then tipped the information to Gantman and instructed him to keep the information secret. Farahan knew that Company A’s imminent acquisition of Company B would likely result in an increase in Company B’s stock price. Farahan and Gantman used the nonpublic information to quickly purchase substantial amounts of Company B securities throughout August and September 2018. Specifically, between August 13, 2018, and September 17, 2018, Farahan purchased approximately $1,031,359 in Company B securities. On September 21, 2018, the day after Company B publicly announced its acquisition by Company A, Farahan and Gantman each sold all of their Company B securities for a combined profit of more than $500,000. Farahan’s total share of the profit was approximately $247,500.
According to court documents, Farahan further admitted that, after the acquisition occurred, Tavlin learned that the Financial Industry Regulatory Authority (FINRA) was investigating certain trades of Company B securities that occurred prior to the publicly announced acquisition. As part of its inquiry, FINRA asked insiders who knew about the secret acquisition negotiations, which included Tavlin, whether they knew any of the parties who traded in Company B securities leading up to the public announcement. In January 2019, Tavlin responded to FINRA’s inquiry by falsely denying that he recognized any names on a list of persons and entities that purchased Company B securities, which included Farahan and Gantman’s names.
According to court documents, Farahan also admitted that it was part of the insider trading conspiracy that Tavlin and Farahan agreed that Farahan would pay money to Tavlin in exchange for the material, nonpublic information that Tavlin provided to him. For example, in October 2019, Farahan gave Tavlin a $25,000 check in exchange for the information that Tavlin had provided about Company B leading up to the acquisition.
Farahan pleaded guilty yesterday before Senior U.S. District Judge Donovan W. Frank to one count of conspiracy to engage in insider trading. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the FBI.
Assistant U.S. Attorneys Matthew S. Ebert and Kimberly A. Svendsen are prosecuting the case.
Long-Time Leader of South L.A. Street Gang Sentenced to 35 Years in Federal Prison for Racketeering Activity that Included MurderRead the Press Release
LOS ANGELES – A long-time senior leader of the South Los Angeles-based East Coast Crips (ECC) street gang was sentenced late this afternoon to 420 months in federal prison for a series of criminal acts, including his participation in the 2014 murder of a rival gang member.
Paul Gary Wallace, 56, a.k.a. “Little Doc” and “Uncle Bill,” of South Los Angeles, was sentenced by United States District Judge André Birotte Jr.
At the conclusion of an 11-day trial in April 2022, a federal jury found Wallace guilty of one count of conspiracy to violate the Racketeer Influenced and Corruption Organizations (RICO) Act and one count of using a firearm in furtherance of a violent crime.
; Wallace was a member of the ECC for more than 30 years and rose to become the leader and most influential member of the gang’s “6-Pacc” set, a part of the gang responsible for control over territory in South Los Angeles.
He maintained his control over the gang through violence and intimidation. Wallace murdered and conspired to commit murder to enhance the gang’s violent reputation, to enhance his status within the gang, to retaliate against rivals, and to enforce discipline within the gang.
As a gang leader, Wallace’s other criminal conduct included selling drugs in ECC territory, extorting local businesses, presiding over robberies, and engaging in other acts of violence, including intimidation, assaults and shootings against the gang’s rivals.
The jury specifically found that on November 13, 2014, Wallace participated in the murder of a rival gang member. The murder weapon, an AK-47-style rifle, was later found in Wallace’s van.
“[Wallace] wreaked havoc on the community and neighborhoods controlled by the ECC, destroying lives with his violence and gang activity,” prosecutors argued in a sentencing memorandum. “The impact of his violent conduct on the victims, their families, and the community will be felt for years and, for the most unfortunate, the rest of their lives.”
The FBI and the Los Angeles Police Department investigated this matter.
Assistant United States Attorney Jeffrey M. Chemerinsky of the Violent and Organized Crime Section prosecuted this case.
Lincoln Man Sentenced to 21 1/2 Years in Prison for Production of Child PornographyRead the Press Release
Acting United States Attorney Steven Russell announced that Matt Tibbels, 59, of Lincoln, Nebraska, was sentenced today in Lincoln by United States District Judge John M. Gerrard for production of child pornography. Tibbels was sentenced to 21 1/2 years in prison and 10 years of supervised release. There is no parole in the federal system. Tibbels was additionally ordered to pay $29,000 which will contribute to funds established for victims of these types of cases.
This case began as a part of a Freenet peer-to-peer investigation by the FBI concerning a Freenet user who was receiving child pornography. The FBI traced IP addresses associated with the investigation to Tibbels’s residence. The residence was also operated as an in-home daycare. On October 5, 2021, a search warrant was executed where multiple devices were seized. A forensic examination of the devices revealed a total of 887 child pornography image files and 147 child pornography video files. While reviewing other electronic devices seized, FBI agents observed a video and seven images that depicted a child changing clothes in the main bedroom of the Tibbels’ family home. This child was positively identified as a child who had attended that daycare.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Federal Bureau of Investigation.
Lead defendants in Washington, Ga., area drug trafficking conspiracy sentenced to federal prisonRead the Press Release
AUGUSTA, GA: Four key defendants in a Washington, Ga., area drug trafficking conspiracy have been sentenced to federal prison, with just two of the 21 indicted defendants awaiting trail while others are serving prison terms or awaiting sentencing.
Exjaben Demontaz Hardman, a/k/a “Zay,” 43, of Washington, Ga., was sentenced to 135 months in prison followed by three years of supervised release and fined $2,500 after pleading guilty to Conspiracy to Possess with Intent to Distribute, and to Distribute, Methamphetamine, said David H. Estes, U.S. Attorney for the Southern District of Georgia.
U.S. District Court Chief Judge J. Randal Hall also sentenced Calvin Terrill Wynn, a/k/a “Swang Lo,” a/k/a “Lo,” 34, of Washington, to 66 months in prison followed by three years of supervised release and a $2,000 fine; Demetrius Antonio Perkins, a/k/a “Dee,” 40, of Washington, Ga., to 63 months in prison and a $2,000 fine; and Sherman Redzuees Blackmon, a/k/a “Shorty P,” 43, of Washington, to 47 months in prison. All three pled guilty to Conspiracy to Possess with Intent to Distribute, and to Distribute, Methamphetamine.
There is no parole in the federal system.
“Like far too many rural communities, the Wilkes County area has faced the challenge of gang-led drug trafficking operations and the violent crime generated by those illegal activities,” said U.S. Attorney Estes. “With exceptional work from our law enforcement partners, we continue to identify and dismantle these threats to the safety and security of our law-abiding citizens.”
The 50-count federal indictment in USA v. Hardman, et. al in July 2021 was the culmination of a more than two-year investigation initiated by the Wilkes County Sheriff’s Office and the FBI Safe Streets Task Force, and coordinated through the Organized Crime Drug Enforcement Task Forces (OCDETF). Dubbed Operation Wynner Storm, the investigation targeted gang-related drug trafficking in the Wilkes, Lincoln and McDuffie County areas north of Augusta. After months of investigation and controlled purchases, agents conducted nearly 20 court-authorized searches and seized methamphetamine, cocaine, crack cocaine, marijuana, drug sales paraphernalia, cash and firearms.
Eight defendants have now been sentenced after pleading guilty, and 11 other defendants await sentencing after pleading guilty. Two defendants are awaiting trial and are considered innocent unless and until being found guilty in court.
“These Georgia communities are safer today because of the removal of the drugs and this gang-led criminal network from our streets,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI Safe Streets Task Force will continue to use all available investigative resources to identify dealers, whether they attempt to hide in big cities or rural areas, to hold them accountable under the law.”
“ATF will continue to dedicate federal resources in conjunction with those crucial law enforcement contributions of local agencies to the pursuit of eradicating and forestalling criminal gang activity,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
“These sentences are the result of successful collaborative efforts between state, local, and federal agencies,” said Vic Reynolds, Director of the Georgia Bureau of Investigation. “We will continue to work with our partners to investigate gang activity and drug trafficking. It is a priority that we take illegal drugs and guns off our streets to keep our communities safe.”
The case was investigated under the Organized Crime Drug Enforcement Task Forces. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
Agencies investigating the case include the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service and the U.S. Probation Office; the Georgia Bureau of Investigation; the Georgia Department of Community Supervision; the Georgia State Patrol; the Wilkes County Sheriff’s Office; the Taliaferro County Sheriff’s Office; the McDuffie County Sheriff’s Office; the Richmond County Sheriff’s Office; and the Burke County Sheriff’s Office. The case is being prosecuted for the United States by Assistant U.S. Attorneys Patricia G. Rhodes and Jerimiah L. Johnson.
Kirkland Man Charged with Drug Trafficking Offense Related to recent Motel RobberyRead the Press Release
Spokane – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Scott Banchero, age 58, of Kirkland, Washington, was charged by federal criminal complaint with Possession with Intent to Distribute 500 Grams or More of a Mixture or Substance Containing a Detectable Amount of Methamphetamine, in violation of 21 U.S.C. 841(a)(1), (b)(1)(A)(viii).
As alleged in the criminal complaint, in the early morning hours of August 3, 2022, Banchero was identified as the victim of a robbery at a local motel in Spokane Valley, Washington. Banchero had just arrived from the Seattle, Washington area when the robbery occurred.
Agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Drug Enforcement Administration, as well as Detectives with the Spokane Police Department’s Special Investigations Unit, subsequently executed a federal search warrant on a storage unit rented to Banchero near Spokane, Washington. In the storage unit, law enforcement located approximately 20,000 fentanyl-laced pills, 2 pounds of methamphetamine, 1 kilogram of heroin, and a half pound of cocaine.
Assistant United States Attorneys Patrick Cashman and Caitlin Baunsgard of the Eastern District of Washington are handling this matter on behalf of the United States.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Kanawha County Man Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Galen Flowers, 40, of St. Albans, pleaded guilty today to possession with intent to distribute 5 grams or more of methamphetamine.
According to court documents and statements made in court, on May 6, 2022, the Drug Enforcement Administration (DEA) executed a federal search warrant at Flowers’ St. Albans home and at an adjoining property on which Flowers admitted he had been storing some of his property and other belongings, including several cars. DEA agents seized over 1,300 grams of actual methamphetamine and quantities of other controlled substances, including fentanyl, in connection with the search. Agents also seized 21 firearms and a stolen, loaded Glock 17 9mm semi-automatic pistol, which Flowers had obtained in an exchange for drugs.
Flowers is scheduled to be sentenced on November 29, 2022, and faces a mandatory minimum period of five years imprisonment and up to 40 years in prison, at least four years of supervised release, and a $5,000,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Kanawha County Sheriff’s Office.
Chief United States District Judge Thomas E. Johnston presided over the hearing. Assistant United States Attorney Negar M. Kordestani is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-131.
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Jury Convicts Madison Man of Interstate Transportation of Stolen PropertyRead the Press Release
MADISON, WIS. – A Madison, Wisconsin man has been convicted of conspiring to transport and transporting stolen goods worth in excess of $5,000 across state lines. Ahmeeshadye Curtis, 36, was convicted following a four-day trial in federal court in Madison. The jury reached a verdict yesterday evening after approximately nine hours of deliberation. The guilty verdict is announced by Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin.
The government presented evidence at trial that from November 2019 through December 24, 2019, Curtis conspired with Carl Carter, 39, also of Madison, to commit seven burglaries and attempt another of stores in Iowa, Ohio, Minnesota, and Wisconsin and travelled across state lines with the stolen merchandise. The stolen merchandise included cell phones (especially Apple iPhones), other electronics, and jewelry. Two of the burglaries occurred in Janesville, Wisconsin on November 28, 2019.
Carter was arrested following the last burglary in Wauwatosa, Wisconsin, on December 24, 2019, while Curtis fled and remained a fugitive for several months. He was arrested in Ohio in August 2021.
Chief U.S. District Judge James D. Peterson scheduled sentencing for November 3, 2022, at 10:00 a.m. Curtis faces a maximum penalty of 5 years in federal prison on the conspiracy charge and a maximum of 10 years on the charge of transporting stolen goods across state lines.
Carter pleaded guilty to the conspiracy charge and was sentenced on January 4, 2021, to 30 months in federal prison.
The case was investigated by the Federal Bureau of Investigation; the Janesville, Wauwatosa, West Allis, Wausau, and Everest Metro Police Departments in Wisconsin; the Creston and Cedar Falls Police Departments in Iowa; the Cuyahoga Falls Police Department in Ohio; the Minnetonka and Woodbury Police Departments in Minnesota; and the Rockton Police Department in Illinois. The prosecution is being handled by Assistant U.S. Attorneys Zachary Corey and David Reinhard.
Judge Sentences Southwest PA Man to 20 Years in Prison for Production and Attempted Production of Child Sexual Abuse MaterialsRead the Press Release
PITTSBURGH - A resident of Washington and Duncansville, Pennsylvania, was sentenced in federal court for three counts of production and attempted production of material depicting the sexual exploitation of a minor, United States Attorney Cindy K. Chung announced today.
United States District Judge Robert J. Colville sentenced Jacob Kolonis, age 29, to 240 months’ imprisonment (20 years) followed by 10 years of supervised release and ordered that he pay restitution totaling $9,000 to his minor victims.
During Kolonis’ plea hearing on February 9, 2022, Kolonis admitted to threatening seven minor females with the intent to extort them for nude and sexually explicit images. On three of these occasions, Kolonis threatened the minors to create and send videos of themselves engaged in sexually explicit conduct over Snapchat, as directed by Kolonis. Kolonis admitted to extorting the minors for his own sexual gratification.
Prior to imposing sentence, Judge Coleville acknowledged that Kolonis had engaged in exceptionally serious conduct and recognized the immense impact of Kolonis’ crime on his victims.
Assistant United States Attorney Heidi M. Grogan prosecuted this case on behalf of the government.
United States Attorney Chung commended Homeland Security Investigations (HSI), the Pennsylvania Office of the Attorney General–Child Predator Unit, the Bethel Park Police Department, the South Fayette Township Police Department, and the Stark County Sheriff’s Office (Ohio) for the investigation leading to the successful prosecution of Kolonis.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Inmate Sentenced for Suboxone Trafficking and Assaulting Corrections OfficerRead the Press Release
ABINGDON, Va. – An inmate being housed at Western Virginia Regional Jail, who physically assaulted and pepper-sprayed a corrections officer while awaiting sentencing on federal drug charges, was sentenced this week in federal court for both offenses.
Michael Selvidge, 38, was sentenced this week to 110 months for possession with the intent to distribute controlled substances and 41 months for assaulting a federal employee.
According to court documents, in the visitation room at U.S. Penitentiary Lee in 2019, Selvidge received contraband from a visitor. Specifically, he received 48 Suboxone strips that he intended to distribute within the prison. Selvidge ultimately pled guilty to three counts of possession and distribution of controlled substances in relation to that conduct.
While that case was pending, Selvidge was held at the Western Virginia Regional Jail. On January 16, 2022, a corrections officer at Western Virginia Regional Jail was conducting security rounds at the jail when he encountered Selvidge and directed him to return to his cell. Selvidge became upset, threatened the officer, and ultimately attacked the officer by striking him numerous times with his fists. During the attack, the officer attempted to repel Selvidge with his pepper spray but dropped the canister on the floor. Selvidge picked up the pepper spray, emptied it onto the officer’s face and body, and then threw the empty canister at the officer.
United States Attorney Christopher R. Kavanaugh of the Western District of Virginia made the announcement.
The Bureau of Prisons Special Investigative Services, the Western Virginia Regional Jail, and the United States Marshals Service investigated the case.
Special Assistant United States Attorney Christine Hummert and Assistant U.S. Attorney Whit D. Pierce prosecuted the case.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Aug. 4 was:
James Kelly Chavez, 40, of Billings, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Chavez faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Chavez was detained pending further proceedings. The Eastern Montana High Intensity Drug Trafficking Area Task Force, Drug Enforcement Administration and Montana Division of Criminal Investigation investigated the case. PACER case reference. 22-75.
Appearing on Aug. 2 was:
Oscar Albert Nevarez, 38, of Idaho Falls, Idaho, on charges of conspiracy to possess with intent to distribute meth, possession with intent to distribute meth and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious crime, Nevarez faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release on the drug crimes and a mandatory minimum five years to life in prison, consecutive to any other sentence, a $250,000 fine and five years of supervised release on the firearms crime. Nevarez was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Park County Sheriff’s Office investigated the case. PACER case reference. 22-43.
James D. Murrieta, 36, of Utica, New York, on charges of conspiracy to possess with intent to distribute meth, possession with intent to distribute meth, distribution of meth and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious crime, Murrieta faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release on the drug crimes and a mandatory minimum five years to life in prison, consecutive to any other sentence, a $250,000 fine and five years of supervised release on the firearms crime. Murrieta was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Park County Sheriff’s Office investigated the case. PACER case reference. 22-43.
Appearing on Aug. 4 in Great Falls before U.S. Magistrate Judge John T. Johnston for an initial appearance on a criminal complaint was:
Jorge Perez, 40, of Spokane, Washington, on charges of possession with intent to distribute controlled substances. If convicted of the most serious crime, Perez faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Perez was detained pending further proceedings. The FBI investigated the case. PACER case reference. 22-59.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Indictment Charges New Haven Man with Firearm and Narcotics OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and James M. Ferguson, Special Agent in Charge, ATF Boston Field Division, today announced that a federal grand jury in Hartford has returned an indictment charging NIQUELLE LANDELIUS, 26, of New Haven, with firearm and narcotics offenses.
The indictment, which was returned yesterday, alleges that on February 22, 2022, Landelius possessed a 9mm semi-automatic pistol, which had no serial number or manufacturer information, loaded with nine rounds of ammunition. On that date, Landelius also possessed quantities of crack cocaine and heroin that he intended to distribute.
The indictment further alleges that Landelius’ criminal history includes state convictions for felony narcotics offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
The indictment charges Landelius with one count of unlawful possession of ammunition by a felon, which carries a maximum term of imprisonment of 10 years, and one count of possession with intent to distribute cocaine base (“crack”) and heroin, which carries a maximum term of imprisonment of 20 years.
Landelius was arrested on state charges on February 22, 2022, and is currently in state custody. His federal arraignment is not scheduled.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the New Haven Police Department. This case is being prosecuted by Assistant U.S. Attorney Stephanie T. Levick.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Indianapolis Man Sentenced to 57 Months in Federal Prison for Trafficking Heroin while on ParoleRead the Press Release
INDIANAPOLIS – Darrion Elliott, 28, of Indianapolis, was sentenced to fifty-seven months in federal prison after pleading guilty to possession with intent to distribute heroin.
According to court documents, Elliott was on parole in Marion County, Indiana, after he was convicted of being a serious violent felon in possession of a firearm. On January 9, 2020, parole officers arrived for a scheduled home visit at the address Elliott falsely claimed was his residence. Officers found Elliott standing outside on the front porch with no key to access the residence. Officers searched Elliott’s phone and determined his actual address.
Officers searched Elliott’s actual residence and found 47 grams of heroin, a cutting agent for processing heroin, a digital scale, and plastic baggies. Officers also found three firearms: a loaded 9mm handgun, another 9mm handgun, a .25 caliber handgun, a .45 caliber rifle. As part of his guilty plea, Elliott admitted that he possessed the heroin with the intent to distribute it. Elliott has a serious criminal history spanning over a decade, which includes three prior felony convictions, all involving drugs and guns.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Indianapolis Metropolitan Police Department Chief Randal Taylor made the announcement.
The Indianapolis Metropolitan Police Department investigated the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives provided valuable assistance. The sentence was imposed by U.S. District Judge Sarah Evans Barker. As part of the sentence, Judge Barker ordered that Elliott be supervised by the U.S. Probation Office for three years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Abhishek S. Kambli who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime.
Honduran National Indicted for Illegal Re-EntryRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced today that SANTOS RAMOS-CASTILLO, a/k/a “Santos Ramos-Espinoza”, age 36, was charged on August 4, 2022 in a one-count indictment for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a).
According to the indictment, SANTOS RAMOS-CASTILLO (“RAMOS-CASTILLO”) reentered the United States after he was previously deported on November 16, 2015. If convicted, RAMOS-CASTILLO faces a maximum term of imprisonment of two years, a maximum fine of up to $250,000, a maximum term of supervised release of up to one year, and a mandatory $100 special assessment fee.
U. S. Duane Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement in investigating this matter. Assistant U. S. Attorney Carter K. D. Guice, Jr. is in charge of the prosecution.
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Holyoke Man Indicted for Being a Felon in Possession of a FirearmRead the Press Release
BOSTON – A Holyoke man has been indicted by a federal grand jury in Springfield for illegal firearm possession.
Joseph Anthony Montaner-Vasquez, 25, was indicted on one count of being a felon in possession of a firearm. Montaner-Vasquez is currently in state custody and will appear in federal court in Boston at a later date.
According to the indictment, on May 25, 2022, Montaner-Vasquez was found in possession of a Glock 9-millimeter caliber pistol and 20 rounds of ammunition. Montaner-Vasquez was previously convicted of a felony and is prohibited from possessing firearms and ammunition.
The charge of being a felon in possession of a firearm provides a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Holyoke Police Chief David Pratt made the announcement today. Assistant U.S. Attorney Neil L. Desroches of Rollins’ Springfield Branch Office is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Holyoke Man Arrested for Unlawful Possession of Machine Guns, Possessing Unregistered Firearms and Making False StatementsRead the Press Release
BOSTON – A Holyoke man was arrested today after being indicted by a federal grand jury in Springfield in connection with illegally possessing numerous firearms including unregistered machine guns, short-barreled rifles and other weapons as well as firearm silencers.
Daniel A. Augusto, 56, was indicted on one count of unlawful possession of machine guns, six counts of unlawful possession of unregistered firearms and one count of making false statements to federal agents. He will appear in federal court in Springfield this afternoon.
“Guns are deadly weapons. There are strict requirements regarding licensing for and registering of firearms. We believe Mr. Augusto not only unlawfully possessed numerous unregistered firearms, but also possessed a stockpile of machineguns and conversion devices that have the capability to rapidly cause death and destruction,” said United States Attorney Rachael S. Rollins. “The illegal possession of firearms and, moreover, machineguns, greatly threaten the safety of our communities. Gun laws are in place for a reason. The conduct alleged here is very serious. My office will continue to work with our law enforcement partners to identify and prosecute individuals who try to bring deadly weapons into our communities.”
“The unlawful possession of unregistered machineguns is a federal crime that ATF takes very seriously as it threatens the safety of our communities,” said James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division. “ATF has had a long and productive relationship with our local, state, and federal law enforcement partners in combating violent crime and stopping the unlawful possession of firearms that are not legally registered.”
According to the indictment, on Feb. 23, 2022, Augusto unlawfully possessed multiple unregistered firearms, magazines and silencers, including more than 40 conversion devices and forced reset triggers that are classified as machineguns under federal law. Specifically, Augusto allegedly possessed:
- One PTR Industries, Inc., model PTR 9, 9x19mm caliber firearm bearing serial number 9MC010480 with one magazine and an altered HK MP5-type machinegun trigger housing installed;
- 38 “switch-type” Glock machinegun conversion devices bearing a counterfeit Glock logo;
- Three Rare Breed FRT-15 forced reset triggers designed to allow drop-in installation into AR-15 type firearms, with no serial number;
- One Tommy Triggers FRT-15-3MD forced reset trigger designed to allow drop-in installation into AR-15-type firearms, with no serial number;
- One Imperial Arms Co., model EFFEN 90, 5.7x28mm caliber firearm bearing serial number HXX37 with one magazine;
- One PTR Industries, Inc., model PTR 9, 9x19mm caliber firearm bearing serial number 9MK001951 with a collapsible shoulder stock, thread protector, electronic sight, and forward grip, and with one magazine;
- One Sig Sauer, model MPX, 9x19mm caliber firearm bearing serial number 62B058947 with an electronic sight, a forward grip, and a Maxim Defense collapsible shoulder stock, and with one magazine;
- One Intratec, model Tec-9, 9x19mm caliber firearm bearing serial number 54601, with a secondary forward grip and a synthetic sling; and
- Two black firearms silencers with no markings.
It is further alleged that on Feb. 23, 2022, Augusto falsely stated to federal agents that all of the firearms in his residence belonged to his son and his girlfriend and that he never asked his son or his girlfriend to purchase firearms.
The charge of unlawful possession of machineguns provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. The charges of unlawful possession of unregistered firearms each provide for a sentence of up to 10 years in prison, three years of supervised release, a fine of $250,000 and forfeiture of the illegally possessed firearms. The charge of making false statements to federal agents provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rollins and ATF SAC Ferguson made the announcement today. Valuable assistance was provided by the Federal Bureau of Investigation and the Holyoke Police Department. Assistant U.S. Attorney Steven H. Breslow of Rollins’ Springfield Branch Office is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Grand Jury Charges Eight People in Spring Hill-Based Crestar Labs, LLC Medicare & Medicaid Fraud ConspiracyRead the Press Release
NASHVILLE – A federal grand jury in Nashville on Monday returned a 40-count second superseding indictment, charging eight people in a Medicare and Medicaid fraud conspiracy, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
The indictment was unsealed earlier today, following the arrests of five of those charged. Three others were arrested previously following earlier indictments.
Fadel Alshalabi, 54, of Waxhaw, North Carolina, was originally charged in July 2021, with conspiracy and violation of the Anti-Kickback Statute for his role in orchestrating a fraudulent Medicare and Medicaid billing scheme related to genetic testing. Alshalabi is the owner and Chief Executive Officer of a series of laboratories based in Spring Hill, Tennessee, called Crestar Labs, LLC (Crestar). Monday’s second superseding indictment charges Alshalabi and seven others with health care fraud, conspiracy to commit health care fraud, and conspiracy to violate and violations of the Anti-Kickback Statute. Alshalabi is also charged with money laundering.
Others charged in the second superseding indictment are Edward D. Klapp, 63, of Jupiter, Florida, the former Vice President of Sales for Crestar; Melissa L. Chastain, 57, of Belton, South Carolina, the owner and Chief Executive Officer of Genetix LLC, a marketing company that contracted with Crestar; Roger Allison, 64, of Greenville, South Carolina, the President of Genetix; Dakota White, 28, of Easley, South Carolina, the former Director of Client Services and Vice President of Operations for Crestar; Robert Alan Richardson, 53, of Silver Spring, Maryland, a principal of Freedom Medical Labs, LLC, a marketing company that contracted with Crestar; Edward Burch, 53 of Rockville, Maryland, also a principal of Freedom Medical Labs, LLC; and Samuel Harris, 27, of Salt Lake City, Utah, the owner of Secure Health, also a marketing company that contracted with Crestar. Edward Klapp and Lisa Chastain were originally charged in a first superseding indictment in October 2021.
The second superseding indictment alleges that the co-conspirators entered into sham contracts and paid kickbacks in exchange for genetic testing and urine analysis samples. This included targeting and recruiting elderly patients who were federal health care program beneficiaries in order to obtain their genetic material for conducting genetic tests. Marketers, who were not health care professionals, obtained swabs from the mouths of the patients at nursing homes, senior health fairs, and elsewhere. The tests were then purportedly approved by telemedicine doctors who did not engage in the treatment of the patients, and often did not even speak with the patients for whom they ordered tests. Frequently, the patients or their treating physicians never received the results of the tests. Alshalabi and the co-conspirators paid illegal kickbacks and bribes in exchange for the doctor’s orders and tests, without regard to medical necessity. During the period of 2016 to July 2021, Alshalabi and his co-conspirators billed Medicare and Medicaid over $150 million.
If convicted, Alshalabi faces up to 10 years on the money laundering charges, and all defendants face up to 10 years in prison on the health care fraud and Anti-Kickback Statute charges, and up to 5 years on the charge of conspiracy to violate the Anti-Kickback Statute.
This case is being investigated by the U.S. Department of Health and Human Services, Office of Inspector General, and the FBI, with the assistance of state partners including the Georgia Attorney General’s Office, Georgia Medicaid Fraud Control Unit, and the Tennessee Bureau of Investigation Medicaid Fraud Control Unit, as well as federal law enforcement partners and U.S. Attorney’s Offices in multiple districts, including in the Western District of North Carolina, Northern District of Georgia, District of South Carolina, and the Western District of Kentucky. Assistant U.S. Attorneys Sarah K. Bogni and Robert S. Levine are prosecuting the case.
An indictment is merely an accusation. The defendants are presumed innocent until proven guilty in a court of law.
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Georgia Man Sentenced to 20 Years for Trafficking Methamphetamine into Smyth CountyRead the Press Release
ABINGDON, Va.– A Georgia man, who was convicted in February 2022 for conspiring to traffic methamphetamine from Georgia into Southwest Virginia, was sentenced to 20 years in federal prison.
Jerada “Rod” Henderson, 40, of Locust Grove, Georgia, was convicted by a jury in February 2022 on one count of conspiracy to distribute methamphetamine and one count of possession with intent to distribute 50 grams or more of methamphetamine, a Schedule II controlled substance.
Henderson was arrested by the Smyth County Sheriff’s Office in October 2018 after law enforcement executed a search warrant on a home in Saltville, Virginia. Law enforcement found Henderson in the home, owned by Henderson’s co-conspirators, along with over 450 grams of crystal methamphetamine, a firearm, and ammunition.
United States Attorney Christopher R. Kavanaugh of the Western District of Virginia and Charlie J. Patterson, Special Agent in Charge of ATF’s Washington Field Division announced the conviction today.
The investigation was conducted by the Smyth County Sheriff’s Office, the Virginia State Police, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Assistant U.S. Attorney Daniel J. Murphy prosecuted the case.
Four Individuals Charged in Conspiracy to Traffic Cocaine and FentanylRead the Press Release
Tampa, Florida –United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Arnulfo Rodriguez-Munoz, (41, Fort Worth, TX), Enrique Velasquez (43, Dallas, TX), Heriberto Castillo, (44, Denton, TX), and David Ceballos (27, Alvarado, TX) with conspiracy to distribute and possess with the intent to distribute cocaine and fentanyl. If convicted on all counts, each faces a mandatory minimum sentence of 10 years, and up to, life in federal prison. The indictment also notifies that the United States intends to any assets which are alleged to be traceable to proceeds of the offense.
According to the indictment, from at least April 2021 through October 2021, the individuals conspired to distribute cocaine and fentanyl throughout the Middle District of Florida.
This case is being investigated by the Drug Enforcement Administration as part of the Organized Crime Drug Enforcement Task Force (OCDETF), which identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. It is being prosecuted by Assistant United States Attorneys Michael R. Kenneth and Diego F. Novaes.
Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
Four Defendants Indicted in Little Rock Mail TheftRead the Press Release
LITTLE ROCK—Four defendants have been indicted for their alleged involvement in stealing mail from mail receptacles. Byrannia Burks, 20, James Miller, 26, Kobe Powell, 24, and Eshawn Tucker, 21, all of Little Rock, have been charged by a grand jury with possession of stolen mail. Tucker and Burks were also charged with unlawful possession of a mail receptacle key.
Miller, Powell, and Tucker were all previously charged in criminal complaints filed July 18. All three, along with Burks, were subsequently indicted. Powell appeared in court today, and Miller, Tucker, and Burks will be arraigned by United States Magistrate Judge J. Thomas Ray later this month.
“The U.S. Postal Inspection Service will spare no effort to solve crimes affecting the U.S. Mail, the Post Office and its customers,” said Thomas Noyes, Inspector in Charge of the Fort Worth Division. “It’s unfortunate when mail thefts occur, but these arrests reflect the ongoing efforts and resolve Postal Inspectors maintain to arrest those responsible. We thank our federal, state and local law enforcement partners for their assistance, in addition to the U.S. Attorney’s Office for their commitment to prosecuting cases of this nature.”
“The Secret Service along with our partners in federal and local law enforcement remain committed to aggressively defending and protecting individuals, companies and other entities from criminal actors that steal, defraud and wreak havoc on so many across the country,” said Special Agent in Charge Allen Bryant of the U.S. Secret Service Little Rock Field Office. “The Secret Service believes that building trusted partnerships between all levels of law enforcement is a proven model for success in prosecuting these types of cases, and we thank the United States Postal Inspection Service, the Little Rock Police Department, the Arkansas State Police, and the U.S. Attorney’s Office for their dedication to this important mission.”
“Collectively, members of our Financial Crimes Unit, U.S. Postal Inspection Service, and Secret Service have been able to identify, disrupt and now federally indict those taking the opportunity to steal from locations deemed impenetrable by society,” stated Little Rock Police Department Assistant Chief Wayne Bewley. “The Little Rock Police Department values the working relationship with our federal partners, and these indictments display the work of many collaborative efforts.”
If convicted, each defendant faces potential penalties for possession of stolen mail of not more than five years imprisonment and for unauthorized possession of a mail receptacle key of not more than 10 years imprisonment. All charges carry a fine of not more than $250,000 and not more than three years of supervised release.
The case is being investigated by the United States Secret Service, the United States Postal Inspection Service, Arkansas State Police, and the Little Rock Police Department. An indictment only contains allegations. A defendant is presumed innocent unless and until proven guilty.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Former teacher admits possessing child pornographyRead the Press Release
BILLINGS — A former Judith Gap School teacher today admitted to possessing child pornography after Facebook submitted tips about the possible transmission of the material on its system to authorities, U.S. Attorney Jesse Laslovich said.
Jayson Gayo, 27, of Harlowton, pleaded guilty to possession of child pornography as charged in an indictment. Gayo faces a maximum of 20 years in prison, a $250,000 fine and five years of supervised release.
U.S. District Judge Susan P. Watters presided. Judge Watters set sentencing for Dec. 15 and ordered Gayo remanded into custody pending further proceedings. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The government alleged in court documents and in court that in August 2020, Facebook submitted a series of Cybertips after flagging the possible transmission of child pornography on its system. The information indicated that the transmission of child pornography was from an account that was connected to the Judith Gap School and to Gayo’s residence in Judith Gap. Gayo was a teacher at Judith Gap School. There was no indication that the images or Gayo’s conduct involved students at the school. Investigators executed a search warrant of Gayo’s residence, collected multiple electronic media items and determined that the items contained more than 400 images and videos of child pornography. A search warrant issued to Facebook for Gayo’s account found additional evidence of uploads of child pornography from that account.
Assistant U.S. Attorney Zeno B. Baucus is prosecuting the case, which was investigated by Homeland Security Investigations and the Montana Division of Criminal Investigation.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative, which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
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Former U.S. Postal Service worker pleads guilty to scheme to deliver drugs through the mailRead the Press Release
ATLANTA – Former mail carrier Robert Elliott Sheppard has pleaded guilty to drug trafficking charges for recruiting fellow mail carriers to deliver packages of controlled substances while he was on disability leave.
“Postal carriers occupy a position of trust in our communities and Sheppard violated that trust by exploiting his role as a mail carrier to traffic kilogram amounts of cocaine as well as marijuana,” said U.S. Attorney Ryan K. Buchanan. “Sheppard’s conduct is especially egregious because he recruited other postal carriers to participate in his criminal scheme once he was on disability leave. His conduct and greed potentially exposed countless innocent postal workers and the public to dangerous drugs and to the violence that these crimes frequently cause.”
“Sheppard’s greed taints the public’s trust in U.S. Postal Service employees, the majority of whom are hard-working and trustworthy individuals dedicated to delivering mail safely throughout our communities,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI wants it to be clear that public corruption remains our number one criminal program priority and, as such, we have dedicated significant resources toward the identification, investigation, and prosecution of any individuals involved in similar such conduct.”
“We appreciate the outstanding effort by both the investigative and legal teams,” said Special Agent in Charge Scott Pierce, USPS Office of Inspector General, Southern Area Field Office. “The vast majority of Postal Service employees are honest, hardworking individuals who would never dream of violating the public trust in this manner. An employee who decides otherwise, however, will be aggressively investigated by OIG special agents. This case serves as an excellent example of the successful collaboration between the USPS OIG, our federal and state law enforcement partners, and the U.S. Attorney’s Office to pursue and prosecute Postal Service employees involved in criminal activity.”
“Sheppard enlisted the help of two co-workers to smuggle drugs through the United States Postal system, entangling them in a drug conspiracy and furthering dangerous criminal activity. They have been brought to justice. It is now Sheppard’s time to be held accountable for his selfish actions. The DeKalb County District Attorney’s Office will continue to work with its law enforcement partners to ensure public officials like Sheppard will be brought to justice,” said DeKalb County District Attorney Sherry Boston.
According to U.S. Attorney Buchanan, the charges and other information presented in court: In 2014, Sheppard worked as a U.S Postal Service (USPS) mail carrier. In exchange for bribes, he used his position to deliver five-pound packages of drugs through the U.S. mails to Dexter Frazier, a local drug trafficker who sold cocaine and marijuana.
In 2016, Frazier approached Sheppard about delivering additional drug packages. Sheppard was on disability leave from the USPS at that time and unable to intercept and deliver packages. So Sheppard offered to recruit other mail carriers to deliver drugs for Frazier if Frazier paid Sheppard referral fees consisting of a mix of cash and marijuana. Frazier agreed.
Sheppard then contacted two coworkers, Tonie Harris and Clifton Lee. Sheppard explained to Harris and Lee that in exchange for payment, Frazier needed them to deliver packages of drugs. Sheppard instructed Harris and Lee how to arrange the deliveries to avoid detection. Harris and Lee agreed to participate in the scheme after which Sheppard gave their phone numbers to Frazier. Frazier then coordinated the illegal deliveries with Harris and Lee. Harris and Lee each delivered three packages for Frazier believing they contained two kilograms of cocaine or 10 pounds of marijuana.
Robert Elliott Sheppard, 60, of East Point, Ga., has pleaded guilty to charges of conspiracy to possess with intent to distribute cocaine and marijuana and unlawfully using the mail to commit that crime. Sentencing for Sheppard is scheduled for November 3, 2022.
Other participants in the scheme previously pleaded guilty and received the following sentences imposed by U.S. District Judge Steve C. Jones:
- Dexter Bernard Frazier, a/k/a “Dec,” 60, of Fairburn, Georgia, was sentenced on June 13, 2018, to nine years in prison to be followed by 10 years of supervised release. He was also ordered to pay restitution in the amount of $10,700. Frazier pleaded guilty to the offense of attempt to distribute cocaine and marijuana on March 6, 2018.
- Clifton Curtis Lee, a/k/a “Cliff,” 46, of Lithonia, Georgia, a letter carrier assigned to the Sandy Springs Post Office, was sentenced on June 18, 2018, to three years, 10 months in prison to be followed by three years of supervised release. He was also ordered to pay restitution in the amount of $1,800. Lee pleaded guilty to the offenses of attempt to distribute cocaine and bribery of public officials on February 28, 2018.
- Tonie Harris, 59, of Decatur, Georgia, a letter carrier assigned to the Sandy Springs Post Office, was sentenced on August 14, 2018, to three years, one month in prison to be followed by four years of supervised release. He was also ordered to pay restitution in the amount of $1,450. Harris pleaded guilty to the offenses of attempt to distribute cocaine and marijuana and bribery of public officials on March 20, 2018.
This case is being investigated by the Federal Bureau of Investigation, the U.S. Postal Service Office of Inspector General, and the DeKalb County District Attorney’s Office.
Assistant U.S. Attorney Garrett L. Bradford, Deputy Chief of the Public Integrity and Special Matters Section, is prosecuting the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
or further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Sanger Police Officer Charged with Sexually Assaulting Multiple Victims While on DutyRead the Press Release
A federal grand jury returned a 10-count indictment that was unsealed today charging a former Sanger Police Department officer with deprivation of constitutional rights under color of law for sexually assaulting four women with whom he interacted during the course of his duties.
According to the indictment, on multiple occasions from August 2017 to June 2021, J. DeShawn Torrence, 38, of Corcoran, California, engaged in various forms of nonconsensual sexual conduct, ranging from directing a victim to remove her clothing without a legitimate law enforcement purpose to forcing his victims to engage in sex acts, all while serving as a police officer. Torrence is no longer employed by the Sanger Police Department.
Four of the charged counts alleged each carries a maximum statutory penalty of life in prison and a $250,000 fine. One count carries a maximum statutory penalty of 10 years. The remaining five counts each carry a maximum statutory penalty of one year in prison and a fine of up to $100,000. Any sentence, however, would 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Anyone with information is encouraged to contact the FBI at 916-746-7000.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Phillip A. Talbert for the Eastern District of California and Acting Special Agent in Charge Dennis Guertin of the FBI Sacramento Field Office made the announcement.
This case is being investigated by the FBI Sacramento Field Office with assistance from the Fresno County Sheriff’s Office.
Special Litigation Counsel Fara Gold of the Criminal Section of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Karen Escobar are prosecuting the case.
Former Sanger Police Officer Charged with Multiple Civil Rights Violations Involving Sexual AssaultRead the Press Release
FRESNO, Calif. — A federal grand jury returned a 10-count indictment that was unsealed today charging a former Sanger Police Department officer with deprivation of constitutional rights under color of law for sexually assaulting four women with whom he interacted during the course of his duties.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Phillip A. Talbert, and Acting Special Agent in Charge Dennis Guertin of the FBI Sacramento Field Office made the announcement.
According to the indictment, on multiple occasions from August 2017 to June 2021, J. Deshawn Torrence, 38, of Corcoran, California, engaged in various forms of nonconsensual sexual conduct, ranging from directing a victim to remove her clothing without a legitimate law enforcement purpose to committing aggravated sexual abuse, all while serving as a police officer. Torrence is no longer employed by the Sanger Police Department.
This case is being investigated by the FBI Sacramento Field Office with assistance from the Fresno County Sheriff’s Office. Special Litigation Counsel Fara Gold of the Criminal Section of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Karen Escobar are prosecuting the case.
Four of the charged counts alleged each carries a maximum statutory penalty of life in prison and a $250,000 fine. One count carries a maximum statutory penalty of 10 years in prison. The remaining five counts each carry a maximum statutory penalty of one year in prison and a fine of up to $100,000. Any sentence, however, would 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former San Angelo Police Chief Sentenced to 15 ½ Years in Corruption CaseRead the Press Release
Former San Angelo Chief of Police Tim Vasquez was sentenced today to 15 ½ years in federal prison for accepting bribes, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
A federal jury found Timothy Ray Vasquez, 52, guilty of one count of receipt of a bribe by an agent of an organization receiving federal funds and three counts of honest services mail fraud in March after three days of trial. Mr. Vasquez – who was elected Chief of Police in 2004, then reelected in 2008 and 2012 – was first indicted in January 2020. He was sentenced today by U.S. District Judge James Wesley Hendrix, who also ordered him to pay a $35,000 fine.
“Law enforcement officers, particularly those in leadership positions, should be bastions of integrity. By accepting bribes, Mr. Vasquez defiled his badge,” said U.S. Attorney Chad Meacham following the verdict. “The Justice Department is determined to root out public corruption wherever we find it. Our citizens deserve honest public servants.”
“Mr. Vasquez will now be held accountable for using his official position for financial gain at the expense of the residents of San Angelo. Each act of greed and dishonor affected fundamental aspects of the government processes and procedures that were designed to benefit the people they serve,” said Dallas FBI Special Agent in Charge Matthew J. DeSarno. “Our communities should not have to question the integrity and trust of public officials, and today’s verdict is a step in restoring that confidence.”
According to evidence presented at trial, Mr. Vasquez used his official position to help Dailey & Wells Communications, Inc., a radio system vendor, land a $5.7-million-dollar contract with the City of San Angelo, Texas. In return, Dailey & Wells and its affiliates funneled Mr. Vasquez and his band, “Funky Munky,” more than $175,000. Dailey & Wells and its affiliates also provided him tickets for luxury suites at Dallas Cowboys and San Antonio Spurs games, tickets for a luxury suite at Journey concert, and free use of a luxury condominium at Alteza Condos in San Antonio.
Mr. Vasquez never disclosed to the City of San Angelo or the City Council that he had a business relationship with Dailey & Wells. The Texas Local Government Code, the City of San Angelo Employee Manual, and the San Angelo Purchasing Policy Manual all required Mr. Vasquez to disclose this relationship.
In February 2007, the City of San Angelo solicited bids for a new radio system for first responders, including the police department. In April, a committee recommended the city award the $5.6 million contract to Dailey & Wells, which was eventually selected for the contract.
Three months later, in July, Juniper Valley, L.P., an affiliate of Dailey & Wells, cut a $10,000 check to “Funky Munky Band.” Mr. Vasquez deposited the funds into his personal checking account. For the next eight years, Mr. Vasquez received yearly payments of approximately $8,000 from Dailey & Wells or its affiliates, Buster & Buddy and Trixie & Fini, either made out to Mr. Vasquez or his band. Testimony at trial revealed that Funky Munky’s average fee to play at an event was about $2,000. By June 2, 2015, Mr. Vasquez and Funky Munky had collected more than $84,000.
In 2014 and 2015, Dailey & Wells contacted the City of San Angelo about updating its radio system from a proprietary EDACS system, which was in the process of being phased out, to a P25 Phase II system. When the City’s IT Manager told Mr. Vasquez of the estimated cost of $6 million dollars and that it would have to go through the bidding process, Mr. Vasquez told the IT Manager they were not going through the bidding process and were going to continue to use Dailey & Wells. Mr. Vasquez suggested that the IT Manager use a public safety exception to avoid the bidding process and the IT Manager agreed. Ultimately, a purchasing cooperative was used to purchase the Dailey & Wells system.
Mr. Vasquez contacted a San Angelo City Councilmember and lobbied her to place the Dailey & Wells contract on the City Council’s agenda. Mr. Vasquez advocated for the Dailey & Wells contract before the City Council on December 16, 2014, and June 2, 2015.
Six people who were city council members at the time testified that Mr. Vasquez had significant influence with the City Council and it relied upon his advice in public safety matters. All six stated that they did not know Mr. Vasquez had a business relationship with Dailey & Wells before the vote on June 2, 2015. Five of those former city council members testified that if they had known that fact they would have voted against awarding the contract to Dailey & Wells. Two of the former city council members stated that if they had known of the payments then they would have disqualified Dailey & Wells from being a radio vendor to the city.
Following a presentation made by then-Chief Vasquez and another employee, San Angelo awarded a new $5.7 million contract to Dailey & Wells in late 2015.
In November 2016, Mr. Vasquez became aware that he was under investigation for the radio contract with Dailey & Wells. About one month later, Dailey & Wells wrote a $50,000 retainer check to “Funky Munky,” noting “Timothy R. Vasquez” in the check’s memo section. A few days later, Mr. Vasquez endorsed the $50,000 check and deposited the entire amount into his personal bank account.
In total, Mr. Vasquez, through Funky Munky, received at least $175,000 from Dailey & Wells and its affiliates.
The Federal Bureau of Investigation, the Tom Green County Sheriff’s Office, and the Texas Rangers conducted the investigation with the full cooperation of the San Angelo Police Department and the City of San Angelo. Assistant U.S. Attorneys Jeff Haag, Sean Long, and Juanita Fielden are prosecuting the case.
Former Real Estate Developer Sentenced to More Than 5 Years in Fraud Scheme Involving Daufuskie Island ResortRead the Press Release
CHARLESTON, SOUTH CAROLINA James Thomas Bramlette, 42, of Salt Lake City, Utah, was sentenced to more than five years in federal prisons after pleading guilty to wire and tax fraud.
Evidence presented to the Court showed that Bramlette and his co-conspirators raised over $10 million from investors to develop Melrose Resort on Daufuskie Island, knowing the resort was in dire financial condition and subject to foreclosure by the original lender. Bramlette and his co-conspirators repeatedly told investors their funds were being used to develop the resort when, in reality, the funds were used to pay the original lender not to foreclose, pay previous investors, and to pay employees, utilities, and taxes at the resort. Bramlette also used at least $1.8 million from investors for personal use and to live a lavish lifestyle.
“Mr. Bramlette’s prison sentence reflects the seriousness of his offense and the United States Attorney’s Office’s dedication to deterring fraud,” said U.S. Attorney Adair F. Boroughs. “This office will continue to prosecute those who cheat their fellow citizens and steal federal tax dollars.”
Concerning the wire fraud charge, in September 2016 Melrose Resort owed more than $500,000 in past due property taxes. The Beaufort County Treasurer’s Office notified Bramlette that the resort would be auctioned at a tax sale if the property taxes were not paid. In order to prevent the resort from being sold at the tax sale, Bramlette created a fake wire receipt that falsely represented that Melrose Resort had wired money to the Beaufort County Treasurer’s Office to pay the property taxes.
“Instead of being truthful about the continued financial problems at Melrose Resort, Bramlette defrauded investors and misled others who had interests in the property,” said Susan Ferensic, Special Agent in Charge of the FBI Columbia Field Office. “With this sentence, he will pay the consequences in prison and will no longer be able to continue his lavish lifestyle at the expense of those who put their trust in him.”
As to tax fraud charge, Bramlette was required to collect and pay federal payroll taxes from the wages of all employees at Melrose Resort. Bramlette collected payroll taxes from the employees, but he failed to turn over these taxes to the IRS. In total, Bramlette failed to turn over to the IRS approximately $1 million in payroll taxes.
"Employment tax evasion results in the loss of tax revenue to the United States Government.” stated Donald “Trey” Eakins, Internal Revenue Service (IRS) Special Agent in Charge, Charlotte Field Office. "Failure to pay over withheld taxes is a serious offense. Corporate executives have a responsibility to withhold income taxes for their employees and then remit those taxes to the IRS. IRS Criminal Investigation will vigorously pursue anyone who collects these taxes and uses the funds for their own personal gain."
United States District Judge Richard M. Gergel sentenced Bramlette to 63 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the FBI and the IRS. Assistant U.S. Attorney Amy Bower prosecuted the case.