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Monday 1 August 2022
United States Attorney’s Office Releases Second Quarter Immigration Enforcement Statistics for 2022Read the Press Release
PHOENIX, Ariz. – Today, the United States Attorney’s Office announced its immigration enforcement statistics for April 2022 to June 2022. These cases are prosecuted in partnership with the Tucson and Yuma Sectors of the Customs and Border Protection’s U.S. Border Patrol, along with Homeland Security Investigations and assistance from other federal, state, and county agencies. In the three-month period ending June 30, 2022, the United States brought criminal charges in Arizona against 1,044 individuals who illegally entered or re-entered the United States. In its ongoing effort to deter unlawful immigration, the United States also filed 288 felony cases against individuals responsible for smuggling undocumented noncitizens to and within the District of Arizona.
Reducing migrant smuggling and mitigating the risk to communities impacted by these offenses continues to be a priority for the Office and its law enforcement partners. Some of these prosecutions are directed against leaders and coordinators of non-U.S. citizen smuggling organizations. Other prosecutions are aimed at deterring young adult drivers, often recruited over social media platforms, from engaging in this dangerous activity. Prosecutions against young drivers include three cases brought against juvenile smugglers during this time-period.
These statistics represent United States Attorney's Office prosecutions only. The numbers do not include individuals apprehended by immigration enforcement officials and subjected solely to administrative process.
RELEASE NUMBER: 2022-129_2022 Second Quarter Immigration Enforcement Statistics
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Two men plead guilty to federal charges in retaliatory drug murder in St. LouisRead the Press Release
ST. LOUIS – Two men from St. Louis County on Monday admitted their involvement in a retaliatory murder in 2020.
Cevone Weeden, 26, pleaded guilty Monday in front of U.S. District Judge Ronnie L. White to two felony counts: conspiracy to distribute and possession with intent to distribute controlled substances possession with intent to distribute controlled substances and possession of a firearm in furtherance of a drug trafficking crime that resulted in murder.
Herschell Perkins, 37, pleaded guilty to the firearm charge.
As part of his plea, Weeden admitted firing at least 12 shots at Joel Phillips, 22, in the parking lot of a McDonald’s at 1420 Hampton Avenue in St. Louis on August 20, 2022.
Two days before the murder, Phillips had arranged to buy fentanyl from Weeden, his source of supply of the drug, but instead robbed Weeden and then blocked Weeden’s phone number.
Weeden enlisted another person to call Phillips and arrange to buy fentanyl, a ploy designed to lure Phillips out into the open so Weeden could retaliate.
After Phillips agreed to meet the buyer at the McDonald’s, Perkins drove Weeden to the area, watched Phillips, and then picked Weeden up after the murder.
Phillips was found dead in the driver’s seat of his vehicle, along with $1,814 in cash, a gun, a phone and 156 capsules containing a mixture of drugs including the fentanyl Phillips stole from Weeden.
As part of the plea agreement, prosecutors have agreed to recommend no more than 25 years in prison for Weeden. He is scheduled to be sentenced Nov. 1.
Both prosecutors and Perkins’ lawyer have agreed to recommend 15 years in prison for Perkins, who is scheduled to be sentenced Nov. 2.
The case was investigated by the St. Louis Metropolitan Police Department and the Drug Enforcement Administration.
Two Orange County Men Sentenced to Federal Prison for Conning Investors Out of $1.9 Million Through Cryptocurrency OfferingRead the Press Release
SANTA ANA, California – Two Orange County men each were sentenced today to federal prison terms for conning more than 2,000 investors into purchasing a cryptocurrency that purportedly provided exclusive access to a profitable trading program, and then using most of the $1.9 million raised to line their own pockets.
Jeremy David McAlpine, 26, of Fountain Valley, was sentenced to 36 months in federal prison by United States District Judge Cormac J. Carney. In a separate hearing today, Judge Carney sentenced Zachary Michael Matar, 29, of Huntington Beach, to 30 months in federal prison. Judge Carney scheduled a September 26 restitution hearing in this case.
McAlpine and Matar each pleaded guilty in August 2021 to one count of securities fraud.
In 2017, McAlpine and Matar founded Dropil Inc., a Belize-based company operating out of Fountain Valley. Dropil provided and managed investments in digital assets including a cryptocurrency called DROPs that McAlpine and Matar developed. McAlpine and Matar were also primarily responsible for the development of Dropil’s digital asset trading program, an automated trading bot called “Dex,” which could be used exclusively with DROPs.
McAlpine and Matar induced investors to purchase DROPs by making false claims about DROPs, the functionality and profitability of Dex, and the number of investors and volume of investment in DROPs that had purportedly already been achieved and that purportedly enhanced – through the operation of supply and demand – the value of DROPs. Dex was said to provide an “expertly managed portfolio balancing algorithm [that] manages risk,” according to information published on Dropil’s website. The DROP tokens were said to “ensure privacy while also offering added value and exclusivity.” Dropil further promised that Dex’s trading would generate profits that would be distributed as additional DROP tokens every 15 days.
Beginning in late 2017, McAlpine and Matar began an unregistered offer and sale of DROPS on Dropil’s website. In January 2018, the defendants launched an initial coin offering (ICO) for the sale of DROPs, again through Dropil’s website, which continued through March 2017. Neither McAlpine, Matar nor Dropil was registered with the Securities and Exchange Commission (SEC) as a broker or dealer.
To induce investors to purchase DROPs, McAlpine and Matar made a series of false statements to investors in a “White Paper” published on Dropil’s website and on its Twitter account, promoting the cryptocurrency’s supposed success. Among other false statements, the White Paper asserted that trading with Dex would produce average annual returns of between 24% and 63% depending on the “risk profile” selected by the investor.
In response to investigative subpoenas from the SEC, the defendants manufactured fake Dex profitability reports, giving the false appearance that Dex was operational and profitable. Defendants also fabricated an investor spreadsheet for the SEC that purported to show that Dropil had successfully raised $54 million from 34,000 investors both foreign and domestic. In fact, the ICO raised under $2 million from fewer than 2,500 investors. McAlpine also provided false sworn testimony to the SEC about the amount of money raised in the ICO, as well as about Dex and its purportedly profitable trading activity.
In total, the defendants obtained approximately $1,896,657 from 2,472 investors through the sale of approximately 629 million DROPs. McAlpine and Matar used the invested money as promised to fund disbursements to themselves and their associates.
In sentencing memoranda, prosecutors argued that the defendants’ “offenses were serious and troubling: They caused significant financial harm to an extremely large number of victims and entailed efforts to derail law enforcement’s attempts to root out and address wrongdoing.”
As part of the settlement of a separate civil case brought by the SEC, Dropil Inc., McAlpine and Matar in July 2021 agreed to permanent injunctions barring further fraudulent conduct and prohibiting them from directly or indirectly participating in the offer, purchase, or sale of digital securities.
The FBI investigated this matter.
Assistant United States Attorney Ranee A. Katzenstein, Chief of the Major Frauds Section, prosecuted this case.
Third Defendant Pleads Guilty to Multimillion Dollar Tax Fraud Scheme Involving Professional Athletes and a PPP Loan Fraud SchemeRead the Press Release
A California man pleaded guilty today to conspiring with others in schemes to defraud the IRS and the Paycheck Protection Program (PPP), a federal loans initiative designed to help businesses pay their employees and meet expenses during the COVID-19 pandemic.
According to court documents and statements made in court, Thanh Ngoc Rudin, 58, was a principal of Mana Tax Services, a tax preparation business in the Los Angeles area. Rudin engaged in a conspiracy to commit two sets of fraud schemes using Mana Tax.
First, from June of 2019 through July 2021, Thanh Rudin conspired with his brother, Quin Ngoc Rudin, as well as Seir Havana and others, to prepare and file with the IRS a series of false and fraudulent income tax returns on behalf of at least nine professional athletes. The false tax returns reported fabricated business and personal losses to generate refunds the athletes were not entitled to receive. The co-conspirators told the professional athletes that Mana Tax also could amend prior year tax returns to correct purported errors made by the athletes’ previous accountants to get additional refunds they were not entitled to receive. Mana Tax then charged the athletes a fee of 30% of the resulting refund.
Thanh Rudin and his co-conspirators also used Mana Tax to apply for PPP loans on behalf of a number of small businesses, shell entities controlled by the co-conspirators themselves with few or no employees, and business entities controlled by others. To obtain the PPP loans to which the applicants were not entitled, the co-conspirators grossly inflated the number of employees and monthly payroll costs claimed on the PPP loan applications and submitted fabricated tax returns in support of the applications. In exchange for processing the applications, Mana Tax charged a fee of 30% of the value of the loan received.
During the investigation, the government seized more than $11.8 million from bank accounts containing PPP loan fraud proceeds controlled by the conspirators. In addition, Havana surrendered cashier’s checks worth approximately $5.6 million, representing a portion of the fees charged to professional athletes for the preparation of their false tax returns, and a portion of the fees charged for obtaining fraudulent PPP loans. The two schemes resulted in total losses of more than $25 million.
Thanh Rudin is scheduled to be sentenced on November 9. He faces a maximum penalty of five years in prison for the conspiracy charge and 20 years in prison for wire fraud. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
On May 13, Quin Rudin pleaded guilty to conspiracy to defraud the United States, conspiracy to commit wire fraud, and wire fraud. His sentencing hearing is scheduled for September 14. On July 20, Havana pleaded guilty to conspiracy to defraud the United States, conspiracy to commit wire fraud, and money laundering. His sentencing hearing is scheduled for Nov. 9.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Jessica D. Aber for the Eastern District of Virginia, Special Agent in Charge Wayne A. Jacobs of the FBI Washington Field Office Criminal Division, and Special Agent in Charge Darrell J. Waldon of the Washington, D.C. Field Office, IRS-Criminal Investigation made the announcement.
The U.S. Attorney’s Office for the Central District of California provided assistance with the investigation.
Assistant Chief David Zisserson of the Tax Division and Assistant U.S. Attorneys Kimberly M. Shartar and Kimberly R. Pedersen are prosecuting the case.
Tampa Man Sentenced to over 5 Years for Conspiracy to Commit Access Device Fraud and Aggravated Identity Theft Related to COVID Unemployment Insurance BenefitsRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday today sentenced Devaris McClain (30, Tampa) to five years and one month in federal prison for conspiracy to commit access device fraud and aggravated identity theft. As part of his sentence, the Court also ordered McClain to pay $92,346.54 to the U.S. Department of Labor and various financial institutions. McClain had pleaded guilty on January 18, 2022.
According to court documents, from approximately January 2015 through August 2016, McClain and his co-conspirators made counterfeit credit and debit cards by obtaining prepaid gift cards, embossing them with their names and other persons’ stolen personal identifying information (PII), and obliterating the magnetic strips on the backs of the cards to ensure employees at retail establishments would have to hand-key in the stolen account numbers embossed on the fronts of the cards. McClain and his co-conspirators then used the cards to purchase items, including gift cards, from retail establishments to convert the cards to cash.
McClain also participated in a scheme to fraudulently obtain unemployment insurance (UI) benefits from various state workforce agencies. These UI benefits were transferred to bank accounts or loaded onto debit cards issued in the names of victims whose PII had been stolen. In particular, McClain used a fraudulently obtained debit card in the name of a victim to withdraw money using ATMs. The U.S. Department of Labor determined that McClain obtained $86,804 in UI benefits to which he was not entitled.
In March 2020, the President signed the Families First Coronavirus Response Act and the Coronavirus Aid, Relief, and Economic Security Act, which expanded states’ ability to provide UI for many workers impacted by COVID-19, including for workers who were not ordinarily eligible for benefits.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
This case was investigated by the Federal Bureau of Investigation, the U.S. Department of Labor – Office of Inspector General, and the Tampa Police Department. It was prosecuted by Assistant United States Attorneys John Cannizzaro and Gregory D. Pizzo.
Statement from U.S. Attorney Cole Finegan on Verdict in USA v. Lawrence Rudolph and Lori MillironRead the Press Release
"Today, a jury in federal court found Lawrence Rudolph guilty of murdering his wife, Bianca Rudolph, and of defrauding multiple life insurance companies. They also found Lori Milliron guilty of being an accessory after the fact to the murder, obstruction of justice, and two counts of perjury before the grand jury.
We are thankful for the jury’s diligence looking at all the evidence in this case. Bianca Rudolph deserved justice. This case was an exceptional example of the entire U.S. Attorney’s Office pulling together with our law enforcement partners to uncover the truth and seek justice for a victim who had no other voice.
I also want to specifically thank the efforts of the FBI, which worked to obtain justice by literally going around the world to interview witnesses and collect evidence. Their efforts were exemplary, and we are grateful to them.
The mission of the Department of Justice is just that -- to do justice. We are proud to perform that service for the people of Colorado, as well as the victims in this matter.
We can only hope this verdict brings Bianca’s family some amount of peace." - U.S. Attorney Cole Finegan
St. Johnsbury Business Owner Sentenced to Imprisonment for Tax EvasionRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Blakely H. Jenkins, Sr., 61, of St. Johnsbury, Vermont, was sentenced today to one year and one day of imprisonment for evading taxes and committing identity theft while running his St. Johnsbury-based painting business, Blake Jenkins Painting, Inc. United States District Judge William K. Sessions III also ordered Jenkins to serve a two-year term of supervised release.
In February 2022, Jenkins pleaded guilty to two counts of evasion of employment taxes and one count of identity theft. According to court records and proceedings, Jenkins evaded employment taxes from mid-2015 to mid-2020 by paying his employees “off the books” wages either in cash or in checks falsely denoted as being for non-wage purposes. Jenkins took a number of steps to execute this plan, including falsifying records, creating bogus documents, and signing another person’s name without permission. Every employment tax return that Jenkins’ company submitted to the Internal Revenue Service during this period contained false information that significantly underreported the amounts that Jenkins actually paid his employees. In total, Jenkins’ company failed to report over $1.3 million in employee wages, resulting in over $340,000 in unpaid federal taxes.
“Investigating and prosecuting white collar offenses is a top priority of the U.S. Attorney’s Office,” said United States Attorney Nikolas P. Kerest. “We will continue to work closely with the Criminal Division of the Internal Revenue Service and our other excellent law enforcement partners to hold accountable those who line their own pockets at the expense of others, whether by avoiding their tax obligations, collecting benefits to which they are not entitled, or defrauding victim individuals or companies.”
“The IRS Criminal Investigation Division takes these violations of law very seriously,” said Joleen D. Simpson, Special Agent in Charge, IRS Criminal Investigation, Boston Field Office. “By not reporting all wages to the IRS, hardworking employees may not have access to all of the Social Security, Medicare and Unemployment Compensation they are entitled to receive. Employers have an obligation to their employees to not only accurately report all wages, but to pay over all tax withholdings. Investigating employment tax fraud is a priority for the special agents of IRS Criminal Investigation as we strive to protect the trust that individuals put in their employers to make sure their future benefits are secure.”
The United States was represented in this matter by Assistant U.S. Attorney Nicole Cate. Jody Frey, Esq. represented the defendant.
Springfield Man, Woman Plead Guilty to Child Exploitation EnterpriseRead the Press Release
SPRINGFIELD, Mo. – A Springfield man and a Springfield woman have pleaded guilty in federal court to engaging in a child exploitation enterprise that victimized at least three children.
Kevin Grant McMillan, 35, pleaded guilty today before U.S. Chief Magistrate Judge David P. Rush to engaging in a child exploitation enterprise from Jan. 1, 2017, to Nov. 6, 2019.
By pleading guilty today, McMillan admitted that he engaged in a series of felony violations, including the sexual exploitation of a minor and receiving and distributing child pornography. Those felony violations, constituting three or more separate incidents and involving more than one minor victim, comprise a child exploitation enterprise.
Co-defendant Christine Marie Rossiter, 36, of Springfield, pleaded guilty on Thursday, June 28, to the same charge.
According to today’s plea agreement, the federal investigation began in May 2019 when the National Center for Missing and Exploited Children notified law enforcement that McMillan had uploaded three files of child pornography through his Gmail account. The Springfield Police Department was also investigating McMillan in a separate case involving an 8-year-old victim, identified in court documents as Jane Doe 2. Springfield investigators identified additional Google accounts that contained child pornography.
On Nov. 6, 2019, law enforcement officers executed a search warrant at McMillan’s residence, where they contacted a second, 15-year-old victim, identified in court documents as Jane Doe 1, and a 17-year-old minor. Officers seized five laptops, two hard drives, an Apple iPad, a cell phone, and seven USB/micro SD cards. A forensic analyst found images of child pornography depicting Jane Doe 1, Jane Doe 2, and a third victim, a toddler identified in court documents as Jane Doe 3. There were a total of 27,542 pornographic images and videos of subjects whose age is difficult to determine and child erotica. There was a total of 682 images and videos of bestiality pornography. There were 111 videos and images of child exploitive animated pornography located on the devices.
Investigators found additional child pornography in McMillan’s Dropbox account.
Investigators found SMS and MMS messaging between McMillan and Rossiter from Jan. 1, 2018, to April 2, 2019. During the messaging, they exchanged bestiality pornography, incest-related pornography, and bondage pornography. In a Facebook conversation between March 2019 and May 2019, they extensively discussed engaging in sexual contact with other individuals, including children. In April 2019, they discussed McMillan wanting to have sexual contact with a 13-year-old minor male, identified in court documents as John Doe.
Investigators also found conversations between McMillan and another co-defendant in which McMillan said he wanted to drug and sexually assault Jane Doe 1 (who was 13 years old at the time). The co-defendant said she would be interested in assisting him in drugging and raping children and adult women. McMillan also sent this co-defendant sexually explicit images of Jane Doe 1 and Jane Doe 3. Throughout the conversations they had with each other from January 2017 until April 2019, they exchanged incest-related pornography, bondage pornography, bestiality pornography, child pornography, and child erotica. They also had conversations about having sexual contact with children and about having children together and impregnating them.
Under federal statutes, McMillan and Rossiter each are subject to a mandatory minimum sentence of 20 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by Homeland Security Investigations, the Southwest Missouri Cyber Crimes Task Force, and the Springfield, Mo., Police Department.
Project Safe Childhood
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.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Readout of Election Threats Task Force Briefing with Election Officials and WorkersRead the Press Release
Assistant Attorney General Kenneth A. Polite, Jr. convened a virtual discussion today with a bipartisan group of approximately 750 election officials and workers to provide an update on the work of the Justice Department’s Election Threats Task Force.
Assistant Attorney General Polite thanked the election community for continuing to prioritize this national public safety issue, for engaging directly with the task force over the past year, and stressed the importance that those lines of communication stay open ahead of election season. He also reminded the election community of the individual points of contact they have in every FBI field office in the country.
Following Assistant Attorney General Polite’s remarks, the task force shared intelligence, data, and analysis stemming from their first year of work. This included:
- The task force has reviewed over 1,000 contacts reported as hostile or harassing by the election community.
- Approximately 11% of those contacts met the threshold for a federal criminal investigation. The remaining reported contacts did not provide a predication for a federal criminal investigation. While many of the contacts were often hostile, harassing, and abusive towards election officials, they did not include a threat of unlawful violence.
- In investigations where the source of a reported contact was identified, in 50% of the matters the source contacted the victim on multiple occasions. These investigations accordingly encompassed multiple contacts. The number of individual investigations is less than 5% of the total number of reported contacts.
- The task force has charged four federal cases and joined another case that was charged prior to the establishment of the task force. There have also been multiple state prosecutions to date. The task force anticipates additional prosecutions in the near future.
- Election officials in states with close elections and postelection contests were more likely to receive threats. 58% of the total of potentially criminal threats were in states that underwent 2020 post-election lawsuits, recounts, and audits, such as Arizona, Georgia, Colorado, Michigan, Pennsylvania, Nevada, and Wisconsin.
The task force also briefed the election community on available funds for enhanced security for election offices, and the availability of additional resources from both academic and non-governmental organizations.
Joining Assistant Attorney General Polite in the briefing today was Principal Deputy Chief John Keller of the Justice Department’s Public Integrity Section, FBI Assistant Director Luis Quesada, and FBI Public Corruption and Civil Rights Section Chief Joseph Rothrock
Portsmouth Man Pleads Guilty to Unlawful Possession with the Intent to Distribute Large Quantities of "Ice" Methamphetamine and FentanylRead the Press Release
CONCORD -Robert Corson, 33, formerly of Portsmouth, pleaded guilty in federal court to one count of unlawful possession with intent to distribute 40 grams and more of fentanyl and 5 grams and more of “ice” methamphetamine, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, on July 28, 2021, the FBI arrested Corson on federal drug trafficking charges outside of Corson’s storage unit at a storage facility in Portsmouth. When he was arrested, Corson was wearing a fanny pack around his waist that contained multiple baggies of fentanyl packaged for sale. The FBI subsequently searched Corson’s storage unit and seized approximately 294 grams of “ice” methamphetamine, 231 grams of fentanyl and other items associated with drug trafficking.
Corson is scheduled to be sentenced on November 9, 2022.
This matter was investigated by the FBI NH Major Offender Task Force, the New Hampshire State Police, and the Portsmouth, New Hampshire Police Department. The case is being prosecuted by Assistant U.S. Attorney Jennifer Cole Davis.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Pelahatchie Woman Sentenced to Statutory Maximum of 10 Years in Murder-For-Hire PlotRead the Press Release
Jackson, Miss. – A Pelahatchie woman was sentenced to the statutory maximum of 120 months in prison for using interstate commerce facilities in the commission of a murder-for-hire, announced United States Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation’s Jackson Field Office.
Jessica Leeann Sledge, 40, was sentenced by United States District Judge Carlton W. Reeves today. The sentence included a fine of $1,000 and a term of three years of supervised release following her release from prison.
Sledge previously pled guilty and admitted that between September of 2021 and November 1, 2021, she used the internet, her cell phone and the “Whatsapp” application to arrange a murder-for-hire. Unknown to Sledge, the “hitman” she hired via the internet to commit the murder was in fact an FBI Special Agent. On November 1, 2021, Sledge met in Brandon, Mississippi, with the individual she thought was the assassin she had hired in order to provide an additional payment and to provide additional information concerning her intended victim. The intended victim was ultimately unharmed. Following her arrest, Sledge waived her rights and admitted to her role in the murder-for-hire plot.
The case was investigated by the Federal Bureau of Investigation. Deputy Criminal Chief Dave Fulcher prosecuted the case.
Ocala Man Arrested for Lying on Federal Firearm Form at Gun DealerRead the Press Release
Ocala, Florida –United States Attorney Roger B. Handberg announces the arrest of Ralph Fontil, Jr. (24, Ocala) on a two-count indictment charging him with making a materially false statement in connection with the purchase of firearms and causing a Federal Firearm Licensee (FFL) to maintain false information in its official records. If convicted of both charges, Fontil faces up to 15 years in federal prison.
According to the court records, between April 3, 2020, and September 24, 2021, Fontil purchased 22 handguns from multiple gun dealers in the Middle District of Florida, including 17 Glock pistols. While purchasing the firearms, Fontil certified on each ATF Form 4473 (Firearm Transaction Record) that he was the “actual transferee/buyer” of the firearms. One of the gun boxes for a Glock pistol Fontil purchased on April 3, 2020, was found at the home of a convicted felon on August 24, 2021. In recorded jail conversations, Fontil admitted to buying the firearm for the convicted felon, who is prohibited from possessing firearms or ammunition under federal law.
An indictment is merely an allegation that a defendant has committed a federal criminal offense. Every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the Marion County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Hannah Nowalk.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Mercer County Man Pleads Guilty to Federal Gun CrimeRead the Press Release
BLUEFIELD, W.Va. – A Mercer County man pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, Bobby Glen Trent, 37, of Princeton, admitted to pointing a Diamondback Arms, Model DB9, 9mm pistol at a man on Highland Avenue in Princeton on September 24, 2019. Trent had gotten into an argument with the man while walking by the man’s house. During the argument, Trent approached the man, pointed the firearm at him, and threatened to shoot him. The man called 911. Trent was eventually arrested by law enforcement officers. The officers recovered the firearm in the bushes near the man’s house. Trent admitted the firearm had a defaced serial number.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Trent knew he was prohibited from possessing a firearm because of his felony convictions for grand larceny and conspiracy in Cabell County Circuit Court on March 4, 2011.
Trent is scheduled to be sentenced on November 15, 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 Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Princeton Police Department.
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Nowles Heinrich 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. 1:21-cr-138.
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Martinsburg woman admits to cocaine chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jennifer Hardy, of Martinsburg, West Virginia, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
Hardy, 32, pleaded guilty today to one count of “Aiding and Abetting Distribution of Cocaine Base.” Hardy admitting to working with another to sell cocaine base, also known as “crack,” in February 2021 in Berkeley County.
Hardy faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Man admits role in fatal 2019 St. Louis attempted carjackingRead the Press Release
ST. LOUIS – A man from St. Louis on Monday admitted involvement in a fatal 2019 attempted carjacking that was caught on tape, and could now face between 23 and 25 years in federal prison.
On June 3, 2019 at 6:03 a.m., Jalen Exavier Simms and another man saw Jabari Clark sleeping in the driver’s seat of his 2012 Dodge Ram truck in front of his home in the 3000 block of Rauschenbach Avenue in St. Louis. Simms admitted in his guilty plea Monday that he approached Clark on the driver’s side while the other man approached the passenger side of the vehicle. Both pointed handguns at Clark.
Simms began trying to remove Clark from the truck. After a struggle lasting about 30 seconds, Simms’ companion fired several shots, hitting Clark multiple times. Both men then fled.
Clark staggered out of his truck and collapsed on his front lawn, where he died, despite efforts by family members to administer aid.
Investigators obtained surveillance video of the shooting from a nearby home. Simms also dropped a phone charging cord that had his DNA on it.
Investigators are still seeking the identity of the shooter. Anyone with information is asked to call St. Louis Metropolitan Police Department’s Homicide Division at 314-444-5371 or report information anonymously via St. Louis Regional Crimestoppers at 866-371-TIPS.
Simms, 27, pleaded guilty Monday, the day his trial was supposed to start, in front of U.S. District Court Judge Henry E. Autrey to one count of attempted carjacking resulting in death.
As part of the plea, both sides have agreed to request a prison sentence of between 23 and 25 years. Simms is scheduled to be sentenced Nov. 2.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Louis Metropolitan Police Department.
Man Sentenced to 21 Months in Prison for Stock Fraud SchemesRead the Press Release
Assistant U. S. Attorney Aaron P. Arnzen (619) 546-8384
NEWS RELEASE SUMMARY – August 1, 2022
SAN DIEGO – Ongkaruck Sripetch was sentenced in federal court to 21 months in prison for participating in illegal securities fraud schemes.
Sripetch, a resident of Los Angeles who used the aliases “King Richards” and “Shelby Saint-Claire,” pleaded guilty in February. He admitted that he failed to comply with securities regulations requiring that stock offerings be registered with the Securities and Exchange Commission. He also admitted that his relevant conduct included conspiring with his co-defendants to pump-and-dump the stock of two companies: Ottawa, Canada-based VMS Rehab Systems, which claimed to sell “quality of life orthopedic seat cushions for the home healthcare sector,” and Argus Worldwide, a company headquartered in Cheyenne, Wyoming, which purportedly focused on “digital/internet products and services, smart consumer electronic products and health industries.” In reality, the companies did not live up to the defendants’ claims.
Through these pump-and-dump schemes, Sripetch and his co-conspirators artificially inflated the price of these stocks and then sold the stocks to unwitting investors through the public securities markets.
In handing down the sentence, U.S. District Judge Marilyn L. Huff noted that “real people lost real money” while the “defendant was living a lavish lifestyle” with his fraud proceeds.
“Pump-and-dump schemes victimize investors who are sold a bill of goods,” said U.S. Attorney Randy Grossman. “But these schemes also erode the integrity of the United States’ securities markets. This sentence reflects the seriousness of these crimes.” Grossman thanked the prosecution team and the FBI for their excellent work on this case.
“Sripetch learned the hard way that crime does not pay, and today's sentencing should send a clear message to anyone thinking they can get away with defrauding innocent investors for their personal gain,” said Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office. “The defendant conspired with others to commit securities fraud schemes with total disregard for the consequences. Financial crimes have long been at the forefront of the FBI’s efforts, and we will continue to meticulously investigate any and all fraudsters in pursuit of our mission of protecting the American people.”
The United States appreciates the assistance provided on this matter by the Securities and Exchange Commission.
DEFENDANT Case Number 20cr0160-H
Ongkaruk Sripetch Age: 47 Los Angeles, CA
SUMMARY OF CHARGES
Violation of SEC Offering Registration Requirements – Title 15, U.S.C., Section 77e(a)(1)
AGENCY
Federal Bureau of Investigation
Lowell Woman Arrested for Trafficking FirearmsRead the Press Release
BOSTON – A Lowell woman was arrested on July 29, 2022 for allegedly trafficking firearms without a license.
Leticia Alcantara, 25, was charged with one count of dealing in firearms without a license. Following an initial appearance on July 29, 2022 before U.S. District Court Magistrate Judge Jennifer C. Boal, Alcantara was detained pending a detention hearing scheduled for Aug. 3, 2022.
“Illegal firearms trafficking stokes violent crime trends and poses a very real threat to the safety our communities,” said United States Attorney Rachael S. Rollins. “We believe Ms. Alcantara contributed to this violent threat through regular sales offers for numerous firearms, including an AR-15 rifle. She held no license and was ready to sell firearms that could have gone to prohibited individuals. This is dangerous and could have resulted in significant violence and harm. We will continue to work with our law enforcement partners to identify and prosecute those engaged in illegal firearms trafficking.”
According to the charging document, law enforcement opened an investigation in October 2021 into firearms trafficking in Massachusetts and identified Alcantara as an alleged firearms dealer. On Feb. 15, 2022, Alcantara allegedly offered to sell a 9mm handgun to two individuals who, unbeknownst to her, were cooperating with law enforcement. It is alleged that, on March 15, 2022, Alcantara met with the cooperating witnesses at a prearranged meeting location in a parking lot in Falmouth to conduct the transaction. There, Alcantara was observed entering the vehicle occupied by the cooperating witnesses and allegedly produced a black trash bag from her purse that contained the firearm.
It is further alleged that, on multiple occasions in July 2022, Alcantara communicated with one of the cooperating witnesses regarding additional firearms she was offering for sale, including sending photos of: a 9mm handgun on July 2, 2022; a small holster-grip revolver and one large black pistol on July 7, 2022; and two handguns on July 9, 2022. At the direction of law enforcement, the cooperating witness agreed to purchase the last two handguns Alcantara offered for sale. On July 12, 2022, Alcantara met with the cooperating witnesses during a controlled purchase in Plymouth. There, Alcantara was observed entering the vehicle and allegedly produced one .45 caliber pistol and one 9mm pistol from a dark colored bag.
On July 12, 2022, Alcantara sent additional photos of two firearms for sale which, at the direction of law enforcement, the cooperating witness agreed to purchase. On July 19, 2022, Alcantara arrived at the same prearranged meeting location in Plymouth where she allegedly entered the cooperating witnesses’ vehicle and provided two 9mm pistols. Following the transaction, Alcantara allegedly continued communicating with the cooperating witness about additional firearms for sale, including a handgun and an AR-15 rifle.
The charge of dealing in firearms without a license provides for a sentence of up to five years in prison, up to 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.
U.S. Attorney Rollins and James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement today. Valuable assistance in the investigation was provided by the Plymouth and Falmouth Police Departments. Assistant U.S. Attorney Charles Dell’Anno of Rollins’ Major Crime Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Justice Department Secures Settlement in Race Discrimination and Retaliation Suit Against SEPTARead the Press Release
The Department of Justice announced today that it has reached a settlement with the Southeastern Pennsylvania Transportation Authority (SEPTA), a regional public transportation authority based in Philadelphia. The settlement resolves the department’s complaint alleging that three officers of the SEPTA Police Department were subjected to a hostile work environment by their supervisor and experienced retaliation when they opposed the harassment, in violation of Title VII of the Civil Rights Act of 1964 (Title VII). Title VII is a federal statute that prohibits employment discrimination on the basis of race, color, national origin, sex and religion, and prohibits retaliation against employees for opposing employment practices that are discriminatory under Title VII.
“All transit police officers deserve to go to work each day without fear of harassment and retaliation from their supervisors and colleagues,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This settlement sends a clear message that the department stands ready to protect employees who are subject to racial harassment and a hostile work environment, particularly in law enforcement agencies dedicated to serving the public.”
The department’s complaint, filed today in the U.S. District Court for the Eastern District of Pennsylvania, alleges that SEPTA subjected the officers, who belonged to a special investigative unit, to racial and religious harassment and retaliated against them because they opposed the harassment. According to the complaint, the officers’ supervisor repeatedly harassed them with racial slurs and derogatory comments about Black people and Muslims, threatened the officers and physically assaulted them. The complaint further alleges that the Police Chief retaliated against the officers for opposing the harassment. The officers’ supervisor and the Police Chief are no longer employed by SEPTA. Under the terms of the consent decree, if approved by the court, SEPTA will implement anti-discrimination and retaliation policies and provide trainings for its employees. SEPTA will also pay the officers a total of $496,000 in compensatory damages.
The United States’ complaint is based on charges of discrimination filed with the Equal Employment Opportunity Commission’s Philadelphia District Office, which investigated the charges and found reasonable cause that SEPTA violated Title VII. After unsuccessful conciliation efforts, the EEOC referred the charges to the Justice Department.
The full and fair enforcement of Title VII is a top priority of the Justice Department’s Employment Litigation Section of the Civil Rights Division. Additional information about the Civil Rights Division and the jurisdiction of the Employment Litigation Section is available on its websites at www.justice.gov/crt and www.justice.gov/crt/employment-litigation-section.
Huntington Man Sentenced to Prison for Role in Multi-State Drug RingRead the Press Release
HUNTINGTON, W.Va. – A Huntington man was sentenced to four years and four months in prison, to be followed by three years of supervised release, for his role in a drug trafficking organization (DTO) that distributed large amounts of fentanyl, methamphetamine and other illegal drugs in the Huntington area.
According to court documents and statements made in court, Reginald Jerome Hairston, 44, admitted that he conspired with other individuals to distribute methamphetamine and fentanyl between May and July 2021. Hairston acquired quantities of the controlled substances from co-defendant Christopher Leon Vest for purchase by other individuals. Hairston and Vest each pleaded guilty to conspiracy to distribute methamphetamine, fentanyl, and cocaine. Vest was sentenced to 12 years and six months in prison on May 16, 2022.
The case is the result of a long-term investigation that disrupted the DTO and its distribution of fentanyl, methamphetamine, oxycodone, heroin, cocaine and crack. All 18 defendants have pleaded guilty.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Southern West Virginia TOC-West Task Force. The Southern West Virginia TOC-West Task Force consists of officers with the Cabell County Sheriff’s Department, the Hurricane Police Department, and the Marshall University Police Department, with support from the West Virginia State Police, the Drug Enforcement Administration (DEA) and the Violent Crime and Drug Task Force West. The Ohio Highway Patrol, the Kentucky State Police, and the FBI and DEA in Columbus, Ohio also assisted in the investigation.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorneys Joseph F. Adams and Courtney L. Cremeans prosecuted the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-109.
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Guatemalan National Pleads Guilty to Entering the US After a Prior RemovalRead the Press Release
BANGOR, Maine: A Guatemalan national pleaded guilty in federal court today to entering the United States after a prior removal, U.S. Attorney Darcie N. McElwee announced.
According to court records, in June 2022, the Hancock County Sheriff’s Office detained seven individuals following a traffic stop in Dedham. Records revealed that none of the subjects had legal status in the U.S., and all seven admitted crossing from Mexico on foot. Upon arrival at the Calais Border Patrol Station, an immigration database search confirmed that the seven individuals were illegally present in the U.S. and further revealed that Cruz Isabel Mayen-Dubon, 35, a citizen and national of Guatemala, had previously been removed from the U.S. in June 2007, May 2010, August 2012, October 2012 and January 2016.
Mayen-Dubon faces up to two years in prison and a $250,000 fine. He also faces not more than one year of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Border Patrol and the Hancock County Sheriff’s Office investigated the case.
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Fort Kipp woman admits manslaughter charge in vehicle deathRead the Press Release
GREAT FALLS — A Fort Kipp woman today admitted to a manslaughter charge for striking and killing a man with her vehicle on the Fort Peck Indian Reservation, U.S. Attorney Jesse Laslovich said.
JoAnna Sayetsitty, 35, pleaded guilty to a superseding information charging her with involuntary manslaughter. Sayetsitty faces a maximum of eight years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge John Johnston presided. Sentencing will be set sometime later this fall before Chief U.S. District Judge Brian M. Morris. The court will determine a sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The government alleged in court documents that on Aug. 25, 2019, law enforcement responded to a call of a deceased individual who had been found in a wheat field south of Fort Kipp, on the Fort Peck Indian Reservation. The individual, identified as John Doe, was eventually identified after law enforcement posted a description of his clothing on social media. Officers interviewed Sayetsitty, who had been in a relationship with John Doe, at her residence. Officers discovered front-end damage to Sayetsitty’s Suburban SUV and found a piece of material matching John Doe’s clothing hanging from the vehicle.
The government further alleged that Sayetsitty told officers that on the evening she last saw John Doe, they had been driving around the area, drinking alcohol and listening to music. The two began arguing, John Doe got out of the car and Sayetsitty drove away from where he was standing in the field. Sayetsitty told officers multiple times that she was the only driver of the vehicle. Officers impounded the vehicle and, pursuant to a search warrant, found evidence from the undercarriage that matched John Doe’s DNA. An autopsy determined that John Doe died of blunt force injuries typical of a pedestrian being struck by a vehicle. Sayetsitty admitted in court to driving the vehicle in a reckless manner, and striking John Doe, causing his death.
Assistant U.S. Attorney Wendy A. Johnson is prosecuting the case, which was investigated by the FBI, Fort Peck Tribes Department of Law and Justice, and the Roosevelt County Sheriff’s Office.
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Former Owner of T-Mobile Retail Store in Eagle Rock Found Guilty of Committing $25 Million Scheme to Illegally Unlock CellphonesRead the Press Release
LOS ANGELES – A former owner of a T-Mobile retail store in Eagle Rock has been found guilty by a jury of 14 federal criminal charges for his $25 million scheme to enrich himself by stealing T-Mobile employee credentials and illegally accessing the company’s internal computer systems to illicitly “unlock” and “unblock” cellphones, the Justice Department announced today.
Argishti Khudaverdyan, 44, of Burbank, was found guilty of one count of conspiracy to commit wire fraud, three counts of wire fraud, two counts of accessing a computer to defraud and obtain value, one count of intentionally accessing a computer without authorization to obtain information, one count of conspiracy to commit money laundering, five counts of money laundering, and one count of aggravated identity theft.
The jury returned the guilty verdict Friday evening in United States District Court.
According to evidence presented at his four-day trial, Khudaverdyan ran a multi-year scheme that illegally unlocked and unblocked cellphones, which generated approximately $25 million in criminal proceeds. During this time, most cellphone companies – including T-Mobile – “locked” their customers’ phones so they could be used only on the company’s network until the customers’ phone and service contracts had been fulfilled. If customers wanted to switch to a different carrier, their phones had to be “unlocked.” Carriers also “blocked” cellphones to protect consumers in the case of lost or stolen cellphones.
From August 2014 to June 2019, Khudaverdyan fraudulently unlocked and unblocked cellphones on T-Mobile’s network, as well as the networks of Sprint, AT&T and other carriers. Removing the unlock allowed the phones to be sold on the black market and enabled T-Mobile customers to stop using T-Mobile’s services and thereby deprive T-Mobile of revenue generated from customers’ service contracts and equipment installment plans.
Khudaverdyan advertised his fraudulent unlocking services through brokers, email solicitations, and websites such as unlocks247.com. He falsely claimed the fraudulent unlocks that he provided were “official” T-Mobile unlocks.
From January 2017 through June 2017, Khudaverdyan and a former business partner were also co-owners of Top Tier Solutions Inc., a T-Mobile store in Eagle Rock Plaza. However, after T-Mobile terminated Khudaverdyan’s contract in June 2017 based on his suspicious computer behavior and association with unauthorized unlocking of cellphones, Khudaverdyan continued his fraud.
To gain unauthorized access to T-Mobile’s protected internal computers, Khudaverdyan obtained T-Mobile employees’ credentials through various dishonest means, including sending phishing emails that appeared to be legitimate T-Mobile correspondence, and socially engineering the T-Mobile IT Help Desk. Khudaverdyan used the fraudulent emails to trick T-Mobile employees to log in with their employee credentials so he could harvest the employees’ information and fraudulently unlock the phones.
Working with others in overseas call centers, Khudaverdyan also received T‑Mobile employee credentials which he then used to access T-Mobile systems to target higher-level employees by harvesting those employees’ personal identifying information and calling the T-Mobile IT Help Desk to reset the employees’ company passwords, giving him unauthorized access to the T-Mobile systems which allowed him to unlock and unblock cellphones.
All told, Khudaverdyan and others compromised and stole more than 50 different T-Mobile employees’ credentials from employees across the United States, and they unlocked and unblocked hundreds of thousands of cellphones during the years of the scheme.
Khudaverdyan obtained more than $25 million for these criminal activities. He used these illegal proceeds to pay for, among other things, real estate in Burbank and Northridge.
United States District Judge Stephen V. Wilson scheduled an October 17 sentencing hearing, at which time Khudaverdyan will face statutory maximum sentences of 20 years in federal prison for each wire fraud count, 20 years in federal prison for conspiracy to commit money laundering, 10 years in federal prison for each money laundering count, five years in federal prison for each count of intentionally accessing a computer without authorization to obtain information, five years in federal prison for the count of accessing a computer to defraud and obtain value, and a mandatory two years in federal prison for aggravated identity theft.
Alen Gharehbagloo, 43, of La Cañada Flintridge, a co-defendant and a former co-owner of Top Tier Solutions Inc., pleaded guilty on July 5 to three felonies: conspiracy to commit wire fraud, accessing a protected computer with intent to defraud, and conspiracy to commit money laundering. His sentencing hearing is scheduled for December 5.
The United States Secret Service Cyber Fraud Task Force (CFTF) in Los Angeles and IRS Criminal Investigation’s Western Area Cyber Crime Unit investigated this matter. The CFTF includes representatives of the United States Secret Service, the FBI, the Los Angeles Police Department, the Los Angeles County District Attorney’s Office, and the California Highway Patrol.
Assistant United States Attorneys Lisa E. Feldman and Andrew M. Roach of the Cyber and Intellectual Property Crimes Section are prosecuting this case. Assistant United States Attorney Jonathan S. Galatzan, Chief of the Asset Forfeiture Section, is handling the asset forfeiture portion of this case.
Former Nurse Sentenced to 18 Months in Federal Prison for Tampering with Morphine Medications at Moses Lake ClinicRead the Press Release
Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Esther Rae Tuller, age 41, of Moses Lake, Washington, was sentenced today in federal court in Spokane for tampering with morphine medication while working as a registered nurse. Chief United States District Judge Stanley A. Bastian sentenced Tuller to 18 months in federal prison, followed by three years of supervised release.
According to court documents, between August 2019 and April 2020, Tuller was a Washington-licensed registered nurse employed at the Confluence Health Clinic in Moses Lake. Her position as a nurse provided her with access to medications, including opioid narcotics such as morphine, an opioid derivative commonly prescribed by hospitals and health care facilities to relieve pain.
While working at Confluence Health, Tuller used syringes to remove morphine from at least 17 vials, and then ingested that morphine as part of her own opioid addiction. She then replaced the morphine with a saline solution that was essentially salt dissolved in water, and attempted to glue the caps back onto the vials to make them appear intact. Before Tuller was apprehended by law enforcement, at least one Confluence Health patient who was prescribed morphine had to be rushed to the emergency room; that patient continued to be in excruciating pain after receiving only saline from what was supposed to be morphine vials. In sentencing Ms. Tuller, Chief Judge Bastian noted that Tuller’s conduct did not simply involve stealing medications, but putting patients at risk.
United States Attorney Vanessa R. Waldref emphasized that fostering safe and strong communities in Eastern Washington means addressing the opioid epidemic in all of its forms. “While Ms. Tuller’s addiction to opioids is both tragic and far too common, her decision to take advantage of her access to medical-grade morphine was an egregious breach of trust. It is deeply troubling that she compounded her misconduct by secretly replacing that morphine with saline in vials that she knew would be distributed to patients, recklessly endangering patients who rely on the integrity of our health care system every day.” United States Attorney Waldref continued: “I want to especially commend the stellar investigative work by the Drug Enforcement Administration’s Diversion Group and the Food and Drug Administration’s Office of Criminal Investigations. We will continue to work with our law enforcement partners to hold accountable those who abuse their position of trust and endanger patients.”
“Our DEA Diversion Investigators are another tool we are utilizing to address the opioid epidemic we are now facing,” said Jacob D. Galvan, Acting Special Agent in Charge, DEA Seattle Field Division. “Their actions and investigations helped remove an individual from a position of trust and stop any further harm from happening to vulnerable individuals.”
“The FDA oversees the U.S. drug supply to ensure that it is safe and effective, and those who knowingly tamper with medicines put patients’ health at risk,” said Acting Special Agent in Charge Robert M. Iwanicki, FDA Office of Criminal Investigations Los Angeles Field Office. “We will continue to protect the public health and bring to justice health care professionals who take advantage of their unique position and compromise their patients’ health and comfort by tampering with needed drugs.”
This investigation was conducted by the DEA’s Diversion Group in the Seattle Field Office, and the FDA’s Office of Criminal Investigations, Seattle Domicile. Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene prosecuted this matter on behalf of the United States.
Former Louisiana State Senator and Chair of a State Political Party Pleads Guilty for Role in Nearly Seven-Year Scheme to Defraud Campaign Entity, Donors, and Political Party OrganizationRead the Press Release
NEW ORLEANS – The United States Attorney’s Office announced that former Louisiana State Senator and Chair of State Political Party “A”, KAREN CARTER PETERSON, age 52, from New Orleans, Louisiana, pleaded guilty as charged today before United States District Judge Sarah S. Vance to a one-count bill of information charging her with wire fraud, in violation of Title 18, United States Code, Sections 1343 and 2.
According to court documents, PETERSON served as a Louisiana State Senator for the 5th District from about 2010 until about April 8, 2022, and as the Chair of State Political Party A between about 2012 and 2020. As a Louisiana State Senator, PETERSON formed and maintained a campaign organization, the “Karen Carter Peterson Campaign Fund (“KCPCF”),” to solicit and raise campaign funds from individual and corporate donors. The campaign funds were solicited based upon the representations and premise that the funds would be used to facilitate PETERSON’S reelection for the position of State Senator. In the course of soliciting campaign donations, PETERSON failed to disclose to potential contributors that she had already used prior contributions for her personal benefit.
In furtherance of her scheme, PETERSON diverted, and caused her friends and associates to divert, campaign funds from the KCPCF to PETERSON’S personal use for the purpose of obtaining and using money and property from contributors to the KCPCF by means of materially false and fraudulent representations and promises for nearly seven (7) years. She did so by writing checks drawn on the KCPCF account to her friends and associates and directing them to cash the checks at financial institutions in the New Orleans, Louisiana area and then to give PETERSON the proceeds. Occasionally she allowed the individuals cashing the checks to keep a small portion of the proceeds. PETERSON used the funds to pay for personal expenses unrelated to her campaign or the holding of public office, including to pay gambling-related expenses. Further, PETERSON caused the public filing of false and misleading campaign finance reports that mischaracterized expenditures as being for legitimate purposes related to her campaign or the holding of public office, but were, in fact, unrelated to such purposes and, instead, were diverted to PETERSON’S personal use. In total, between about November 25, 2013, and March 5, 2020, PETERSON fraudulently employed the scheme to divert and convert to her personal use approximately $94,250 that had been donated by contributors to her campaign.
Additionally, in her role as Chair of State Political Party A, PETERSON oversaw the strategic decision-making, operations, outreach, and direction of Party A and supervised its permanent staff, including individuals who had signatory authority of State Political Party A’s financial accounts. PETERSON exploited her position to choose entities (“ Companies”) operated by her associates, purportedly to provide campaign-related services to State Political Party A, and to determine the amount that Party A would pay each of the Companies. PETERSON represented to State Political Party A that the payments were for a campaign purpose. In reality, the Companies provided either no or minimal services for State Political Party A. PETERSON then willfully and wrongfully directed the Companies to remit a portion of the funds paid to them by State Political Party A to PETERSON through either checks drawn on the accounts of the Companies or in cash. In total, between about October 7, 2019, and April 4, 2020, PETERSON received approximately $53,106.93 of funds from State Political Party A through this fraudulent scheme.
PETERSON faces a maximum term of twenty (20) years in prison, a fine of up to $250,000.00, up to three (3) years of supervised release after imprisonment, and a mandatory $100 special assessment fee. Sentencing before Judge Vance has been scheduled for December 7, 2022.
The United States Attorney’s Office stated, “Since public trust is essential for a healthy, functioning government, it is likewise essential that any breaches of this trust be vigorously investigated and prosecuted. Our office will continue to assure the public of our unwavering commitment to identify and prosecute anyone who engages in public corruption.”
“Candidates for public office must be held to the highest standards of conduct, especially when they seek funds from the public for their campaigns. Today’s guilty plea sends a clear message to elected officials like former Louisiana State Senator Karen Carter Peterson that those who misuse campaign contributions and steal money from a political party organization for personal gain, will be held accountable,” said FBI New Orleans Special Agent in Charge Douglas A. Williams, Jr. “We thank our partners at the United States Attorney’s Office Eastern District of Louisiana, Internal Revenue Service – Criminal Investigation, and Metropolitan Crime Commission for their strong partnerships in helping the FBI disrupt public corruption in Louisiana."
The United States Attorney’s Office praised the work of the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, and Forensic Accountant Josephine M. Beninati, CPA, CFE in this matter and thanks the Metropolitan Crime Commission for its assistance. Assistant United States Attorneys Jordan Ginsberg, Chief of the Public Corruption Unit, and Jonathan L. Shih are in charge of the prosecution.
Former Illinois Elementary School Teacher Sentenced to 50 Years in Federal Prison for Sexually Exploiting an Indiana ChildRead the Press Release
INDIANAPOLIS – Pedro Ibarra, 48, of Elk Grove Village, Illinois, was sentenced today to fifty years in federal prison for sexual exploitation of a child and attempted sexual exploitation of a child.
According to court documents, on June 21, 2021, Ibarra engaged in a Google Duo online chat with a boy who lived in Indiana. The child was under 13 years old at the time. During that chat, Ibarra persuaded the child to engage in sexually explicit conduct, which Ibarra recorded on his cell phone. On June 22, 2021, Ibarra drove from Illinois to Hancock County, Indiana, where he picked the victim up and drove the boy to a local hotel. At the hotel, Ibarra engaged in sexually explicit conduct with the child, which Ibarra recorded on his cell phone.
During the investigation, Ibarra’s cell phone was examined by the Indiana State Police. Officers were able to lawfully access information stored on the device. In addition to images of the Indiana child, an examiner discovered multiple recordings of Ibarra engaged in sexually explicit conduct with another boy. This child was later identified as a boy who lived in Illinois and was younger than fifteen years old.
Ibarra was a Chicago Public School teacher when he committed these crimes and taught elementary school students for more than three years.
“The heinous sexual abuse of these children is every parent’s nightmare. These tragic crimes reiterate that those who seek to sexually exploit our children online and in person are often the people parents and children should be able to trust,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “The significant sentence imposed today shows that federal, state, and local law enforcement will work together tirelessly to identify child sexual predators and send them to prison where they belong.”
“This sentence illustrates our strong commitment to protect our children from those who engage in this type of activity and exploit them,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “Because of the teamwork of the FBI and our law enforcement partners this perpetrator will no longer be able to prey on the most vulnerable in our community.”
“The Hancock County Sheriff’s Department worked to have Ibarra in custody within hours of the child’s report,” said Detective David Wood. “Communities place a tremendous amount of trust in teachers, and when someone in such a position commits crimes of sexual exploitation, it is a reminder of how vigilant we need to be in looking out for our children.”
“Indiana State Police investigators work diligently every day, all across Indiana, and in close collaboration with its law enforcement partners, to help bring to justice those who seek to perpetuate the victimization of children”, said Indiana State Police Superintendent Douglas G. Carter.
“Those who perpetuate crimes against children in Hancock County and throughout the State must know that we will do everything within our power to protect our kids and hold offenders accountable,” said Aimee Herring, Hancock County Chief Deputy Prosecutor. “Special thanks to our federal partners and the Hancock County Sheriff’s Department for all of their work on this investigation and prosecution which ultimately resulted in Ibarra’s conviction.”
The Federal Bureau of Investigation, the Hancock County Sheriff’s Department, and the Indiana State Police investigated the case. The Hancock County Prosecutors Office provided valuable assistance. As part of Ibarra’s sentence, Judge James Patrick Hanlon ordered that he be supervised by the U.S. Probation Office for life following his release from prison and ordered Ibarra to pay $30,000 each to both minor victims. Ibarra must also register as sex offender wherever he lives, works, or goes to school, as required by law.
U.S. Attorney Myers thanked Assistant U.S. Attorney Kristina M. Korobov who prosecuted this case.
In fiscal year 2019, the most recent year for which data is available, the Southern District of Indiana was second out of the 94 federal districts in the country for the number of child sexual exploitation cases prosecuted.
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 U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, 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
Former Greene County Commissioner of Revenue Sentenced on Federal Witness Tampering ChargeRead the Press Release
CHARLOTESVILLE, Va. – The former Commissioner of Revenue for Greene County, Virginia was sentenced today to three months in federal prison and a fine of $7,500 for attempted witnessed tampering in connection to his son’s drug distribution charges.
Larry Vernon Snow, 73, of Ruckersville, Va., pleaded guilty in May 2022 to one count of attempted witness tampering related to his efforts to harass and dissuade a confidential informant from cooperating in a federal investigation of both himself and his son, as well as to prevent the confidential informant from aiding law enforcement in other investigations. Bryant Snow, 33, pleaded guilty in May to one count of distribution of heroin. He was sentenced last week to approximately 23 months in prison.
“This public official abused his access to Virginians’ personal information, and he did so to retaliate against a witness who helped law enforcement catch his son distributing narcotics in the same community the defendant was supposed to serve. The Department of Justice will hold accountable public officials who exploit their positions of trust and anyone who seeks to harass, intimidate, or retaliate against federal witnesses," United States Attorney Christopher R. Kavanaugh said today.
“The residents of Greene County deserve to have faith and confidence in the public servants elected to office. Mr. Snow disregarded his oath and duties as a public-servant and began a personal vendetta against the person who cooperated in a law enforcement matter, and willingly involved the community in his campaign to hinder an investigation,” said Stanley Meador, Special Agent in Charge of the FBI’s Richmond Division. “The FBI is pleased with today’s sentencing and encourages anyone who suspects witness tampering may be occurring to report it to authorities immediately.”
According to court documents, Larry Snow used his access as the former Commissioner of Revenue to a Virginia Department of Motor Vehicles (DMV) database as part of an effort to retaliate against and tamper with the confidential informant, Person A, after Person A aided law enforcement in controlled purchases of methamphetamine and heroin from Bryant Snow.
Specifically, while incarcerated in Central Virginia Regional Jail (CVRJ), Bryant Snow received documents and other evidence regarding his state case. This information included paperwork that showed license plate numbers belonging to Person A and Person A’s mother. In a series of recorded jail calls following his plea and sentencing to the state methamphetamine charge, the Snows agreed that Larry Snow would use his DMV access to print out “paperwork to corroborate” Person A’s confidential informant status so that Bryant would have “proof” in jail to show other inmates.
In the recorded jail calls, the Snows discussed their animosity towards confidential informants generally and Person A specifically. For example, Larry Snow stated to Bryant in one call that “[Person A]’s gonna get his, I promise you that.” Larry Snow then stated they should let “everybody know all about it” and “who he is, what he’s doing,” in reference to Person A’s cooperation. After Larry Snow mailed the DMV paperwork to Bryant at CVRJ and Bryant told Larry that he “showed it to a lot of people in here,” Larry Snow expressed approval that they were letting drug traffickers know who Person A “is and what he’s doing” so that his cooperation would “come back and bite him in the ass.”
Later, after receiving a May 2019 notice that he was under federal investigation involving his conduct toward Person A, Larry Snow drafted and caused approximately 12,000 leaflets to be mailed in October 2019 to the residents of Greene County in an attempt to further harass Person A and hinder, prevent, and dissuade Person A from causing or aiding in any federal prosecutions of the Snows or others. In recorded jail calls following the distribution of the leaflets, Bryant Snow and Larry Snow discussed the known “drug dealer” in the leaflet and confirmed it was Person A. Larry Snow concluded the call by stating, “it’s out there now” because information about Person A’s cooperation with law enforcement had been disseminated in the county via the leaflets.
In connection with entering his guilty plea earlier this year, Larry Snow resigned from his elected position as the Commissioner of Revenue in Greene County, a position he has held since 1987 and had been re-elected to while under federal indictment. As part of the plea agreement and a condition of his imposed sentence, Larry Snow agreed not to run for elected office during his sentence or period of court supervision.
At sentencing, Judge Norman K. Moon explained what factors were significant in his decision to impose a prison sentence. Judge Moon found that Larry Snow had abused his position of trust, endangered a government informant, and continued to do so even after receiving notice of a pending federal investigation. Judge Moon remarked that Larry Snow had shown “disdain for law enforcement and those that work with law enforcement.” Judge Moon also rejected the defendant’s request to serve his sentence on home confinement and found that “incarceration is necessary” to reflect the seriousness of the misconduct and “promote respect for the law.”
The investigation of the case was conducted by the Federal Bureau of Investigation and the Virginia Department of Motor Vehicles.
Assistant United States Attorney Katie Burroughs Medearis and Ryan S. Faulconer, Senior Counsel with the Computer Crime and Intellectual Property Section of the Department of Justice’s Criminal Division, are prosecuting the case for the United States. Former Assistant United States Attorney Kathryn Rumsey and Assistant United States Attorney S. Cagle Juhan assisted in the prosecution of the case.
Former Deuel Vocational Institution Inmate Pleads Guilty to Participation in $1 Million Unemployment Insurance Benefits Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Kenneth Ray Hawkins, 47, formerly an inmate at the Deuel Vocational Institution (DVI), a California state prison in Tracy, pleaded guilty today to conspiring to commit mail fraud and aggravated identity theft in a scheme to defraud California and the United States, including the California Employment Development Department (EDD), by the submission of fraudulent unemployment insurance claims, U.S. Attorney Phillip A. Talbert announced.
On May 13, 2021, a federal grand jury returned an indictment, charging Hawkins; Jacqueline Marie Marquez, 35, of Barstow and Las Vegas; Alyssa Marie Jones, 34, of Barstow and Las Vegas; and Ebony Chanel Jones, 21, of Barstow, with conspiracy to commit mail fraud and mail fraud. On July 25, 2022, Hawkins was additionally charged with conspiracy to commit mail fraud and aggravated identity theft.
According to court documents, between June 2020 and January 2021, the four defendants conspired to execute and executed a scheme to defraud by filing fraudulent unemployment insurance claims with EDD, seeking Pandemic Unemployment Assistance benefits under the CARES Act. During the conspiracy, Hawkins, an inmate at DVI, collected personally identifiable information, including names and Social Security numbers, of California prison inmates and other individuals and used the identities and an unauthorized cellphone to submit dozens of the fraudulent claims from his jail cell. The claims represented, among other things, that the claimants had recently lost employment from businesses or were unable to find employment due to the COVID-19 pandemic. These claims were fraudulent because the inmates were incarcerated, not recently employed, and ineligible for unemployment insurance benefits.
In the applications, Hawkins requested that the benefits be mailed to various California and Nevada addresses that were under the control of one or more co-conspirators. EDD approved at least 60 of the fraudulent claims and authorized Bank of America to mail out EDD debit cards containing benefits. Marquez, Alyssa Jones, and Ebony Jones then obtained the EDD debit cards and used them to withdraw the benefits at ATMs throughout California and Nevada for the benefit of the conspirators. The scheme sought over $1 million and resulted in EDD paying out over $890,000.
This case is the product of an investigation by the U.S. Postal Inspection Service, the California Department of Corrections and Rehabilitation Office of Correctional Safety, the DVI Investigative Services Unit, and the California Employment Development Department – Investigation Division. Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
Alyssa Jones, Ebony Jones and Marquez await sentencing after having also pleaded guilty to their participation in the scheme.
Hawkins is scheduled to be sentenced on Oct. 24, 2022, by U.S. District Judge William B. Shubb. Hawkins faces a maximum statutory penalty of five years in prison and a $250,000 fine for conspiracy and a mandatory, consecutive two-year prison term for aggravated identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
FCA US LLC Sentenced in Connection with Conspiracy to Cheat U.S. Emissions TestsRead the Press Release
FCA US LLC (FCA US), formerly Chrysler Group LLC, was sentenced today in federal court in Detroit and ordered to pay a fine of $96,145,784; and a forfeiture money judgment of $203,572,892. The court also imposed a three-year term of organizational probation.
The conviction results from the company’s conspiracy to defraud U.S. regulators and customers by making false and misleading representations about the design, calibration, and function of the emissions control systems on more than 100,000 Model Year 2014, 2015, and 2016 Jeep Grand Cherokee and Ram 1500 diesel vehicles, and about these vehicles’ emission of pollutants, fuel efficiency, and compliance with U.S. emissions standards.
“This case demonstrates the Criminal Division’s dedication to prosecuting companies that seek to place profits above full candor, good corporate governance, and timely remediation,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Today’s sentence shows that companies that engage in misleading U.S. regulators, or their own customers, will be held accountable.”
“Today’s sentence is an appropriate punishment for a company that schemed to defraud regulators and consumers,” said U.S. Attorney Dawn N. Ison. “All corporations should be transparent and honest in dealing with the federal government and the public. This prosecution reflects how seriously my office takes this principle.”
“Today’s sentencing of FCA US, which includes a $300M criminal penalty, is the result of an exhaustive three-year investigation,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. "This resolution shows that the Department of Justice is committed to holding corporate wrongdoers accountable for misleading regulators. My sincere thanks go to our investigative partners at EPA-CID and the FBI.”
“Today’s sentencing clearly demonstrates that the EPA and our federal partners will hold major corporations like FCA accountable for complying with vehicle emissions standards,” said Acting Assistant Administrator Larry Starfield for the Environmental Protection Agency’s Office of Enforcement and Compliance Assurance. “Stopping violations of environmental laws and the defrauding of consumers is paramount to the protection of clean air and human health.”
According to the company’s admissions and court documents, beginning at least as early as 2010, FCA US developed a new 3.0-liter diesel engine for use in FCA US’s Jeep Grand Cherokee and Ram 1500 vehicles (the Subject Vehicles) that would be sold in the United States. FCA US designed a specific marketing campaign to market these vehicles to U.S. customers as “clean EcoDiesel” vehicles with best-in-class fuel efficiency. However, according to court documents, FCA US installed software features in the Subject Vehicles and engaged in other deceptive and fraudulent conduct intended to avoid regulatory scrutiny and to fraudulently help the Subject Vehicles meet the required emissions standards, while maintaining features that would make them more attractive to consumers, including with respect to fuel efficiency, service intervals, and performance.
Specifically, FCA US purposely calibrated the emissions control systems on the Subject Vehicles to produce less NOx emissions during the federal test procedures, or driving “cycles,” than when the Subject Vehicles were being driven by FCA US’s customers under normal driving conditions. FCA US then engaged in deceptive and fraudulent conduct to conceal the emissions impact and function of the emissions control systems from its U.S. regulators and U.S. customers by (a) submitting false and misleading applications to U.S. regulators to receive authorization to sell the vehicles, (b) making false and misleading representations to U.S. regulators both in person and in response to written requests for information, and (c) making false and misleading representations to consumers about the Subject Vehicles in advertisements and in window labels, including that the Subject Vehicles complied with U.S. emissions requirements, had best-in-class fuel efficiency as measured by EPA testing, and were equipped with “clean EcoDiesel engine[s]” that reduced emissions.
For example, FCA US referred to the manner in which it manipulated one method of emissions control as “cycle detection” and “cycle beating.” Without the “cycle beating” use of this emissions control software, the Subject Vehicles were unable to pass the emissions portions of the federal test procedures while also receiving a fuel efficiency rating that could be marketed to FCA US’s potential customers as “best-in-class,” consistent with FCA US’s 3.0-liter diesel program’s goals, timing, and marketing strategy. Because FCA US knew that the decision to calibrate the emissions control system used on the Subject Vehicles to perform differently “on cycle” versus “off cycle” would be subjected to significant scrutiny by U.S. regulators, FCA US made false and misleading representations to regulators to ensure that it obtained regulatory approval to sell the Subject Vehicles in the United States.
Under the terms of FCA’s guilty plea, which has been approved by the Court, FCA has agreed to continue to cooperate with the Department of Justice in any ongoing or future criminal investigations relating to this conduct. In addition, FCA US has also agreed to continue to implement a compliance and ethics program designed to prevent and detect fraudulent conduct throughout its operations and will report to the department regarding remediation, implementation, and testing of its compliance program and internal controls.
The government reached this agreement with FCA US based on several factors including, among others, the nature and seriousness of the offense conduct, the company’s failure to voluntarily and timely disclose the conduct that triggered the investigation, and its failure to conduct sufficient, timely, or appropriate remedial action. FCA US received credit for cooperation with the department’s investigation and has enhanced, and committed to further enhance, its compliance program and internal controls.
In the related criminal prosecution, three FCA employees, Emanuele Palma, Sergio Pasini, and Gianluca Sabbioni were indicted for conspiracy to defraud the United States and to violate the Clean Air Act and six counts of violating the Clean Air Act. They await trial. An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI and EPA’s Criminal Investigations Division are investigating the case.
Trial Attorney Michael P. McCarthy and Assistant Chief Michael T. O’Neill of the Criminal Division’s Fraud Section; White Collar Unit Chief John K. Neal and Assistant U.S. Attorney Timothy J. Wyse of the U.S. Attorney’s Office for the Eastern District of Michigan; and Senior Trial Attorney Todd W. Gleason of the Environment and Natural Resources Division’s Environmental Crimes Section are prosecuting the case.
The Fraud Section uses the Victim Notification System (VNS) to provide victims with case information and updates related to this case. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing [email protected]. To learn more about victims’ rights, please visit: https://www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas. If you believe you are a victim of the conduct described in the Plea Agreement and criminal Information, please visit https://www.justice.gov/criminal-vns/case/united-states-v-fca.
Durham Dentist Pleads Guilty to Tax FraudRead the Press Release
GREENSBORO – A North Carolina woman from Durham pleaded guilty on July 29, 2022, to tax fraud announced Sandra J. Hairston, U.S. Attorney for the Middle District of North Carolina.
Santa Maria McKibbins pleaded guilty to filing a false tax return, a violation of Title 26, United States Code, Section 7206(1), after an investigation revealed that she had withheld information from a tax preparer regarding income and personal use of funds related to her business. According to court-filed documents, McKibbins was a licensed dentist and ran a dental practice known as McKibbins Family Dentistry in Durham. A review of McKibbins’ expenditures revealed that her income far exceeded the income reported to the Internal Revenue Service (IRS), and bank records confirmed annualized personal income that exceeded the income claimed on her IRS forms. From 2013 to 2018, McKibbins withheld information regarding insurance and copayment checks made to her business, which she then diverted to her personal checking account which she used to make payments on multiple cars and her home.
“To attempt to evade taxes by hiding income and filing false returns, is a theft from the American public. It is a felony offense that carries severe consequences,” said Donald “Trey” Eakins, Special Agent in Charge, IRS Criminal Investigation, Charlotte Field Office. “The overarching principle of IRS’s enforcement strategy is simply this: We protect the integrity of the tax system by ensuring everyone pays their fair share of tax.”
Sentencing is scheduled to take place on October 19, 2022, at 9:30 a.m. in Greensboro, North Carolina, courtroom number three, before the Honorable Catherine C. Eagles. At sentencing, McKibbins faces a maximum sentence of three years in prison, a period of supervised release of up to one year, and monetary penalties.
Agents with the Criminal Investigation division of the Internal Revenue Service investigated the case. The case is being prosecuted by Assistant U.S. Attorney Tanner Kroeger.
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Dubuque Heroin, Fentanyl, and Meth Dealer Sentenced to over 33 Years in Federal Prison After Causing OverdoseRead the Press Release
A man who arranged a heroin and fentanyl distribution in Dubuque that led to a near‑fatal overdose was sentenced July 29, 2022, to more than 33 years in federal prison.
Derrick Darryl Trawick, age 40, from Chicago, Illinois, received the prison term after a January 27, 2022 jury verdict finding him guilty of aiding and abetting the distribution of heroin and fentanyl near a playground.
The evidence at trial showed that Trawick was a heroin dealer in Dubuque who was nicknamed “Worm” and “KG.” During the early morning hours of May 31, 2019, two of his heroin customers contacted him to purchase a $40 bag of heroin. Trawick and another man drove to meet the customers and then directed them back to Trawick’s residence on Walnut Street, which was around the corner from the playground at Jefferson Park. Trawick and the other man then returned to Trawick’s residence and went inside. A short time later, the other man exited the residence, walked to the customers’ car, and sold them the purported heroin, which actually contained both heroin and fentanyl. The customers then drove to a nearby motel and used the heroin and fentanyl. One of those customers suffered an overdose during which she lost consciousness and stopped breathing for several minutes. She regained consciousness after being given Narcan by her companions and chest compressions by a first responder. In the January 2022 trial, the jury did not find that the use of the drugs Trawick arranged to distribute caused the serious bodily injury to the customer.
Evidence presented at sentencing showed that Trawick not only sold heroin and fentanyl in Dubuque, but that he also sold large quantities of ice methamphetamine with another individual in 2018 and 2019—totaling at least 4.5 kilograms. The Court also found, under a lower standard of proof than applied at the trial, that the heroin and fentanyl that Trawick arranged to distribute to the customer had caused her overdose and injury. Information at sentencing also showed that Trawick had previously been convicted of six other felony-level crimes, including aggravated criminal sex abuse of a victim aged between 13 and 16 years old, aggravated robbery, a violation of sex offender registry requirements, domestic abuse assault causing injury, and assault with intent to commit sexual abuse.
Trawick was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Trawick was sentenced to 400 months’ imprisonment. He must also serve a six-year term of supervised release after the prison term. There is no parole in the federal system.
Trawick is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Dubuque Drug Task Force and the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorneys Dan Chatham and Jason Norwood.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-1016-CJW.
Follow us on Twitter @USAO_NDIA.
Department of Justice Awards $480,000 to Spokane County Sheriff’s Office for Rapid DNA TestingRead the Press Release
Spokane, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, today announced $480,000 Department of Justice grant to the Spokane County Sheriff’s Office Rapid DNA program. The grant will help law enforcement in Spokane County identify, arrest, and prosecute both violent crimes and prolific property crimes, with the goal of enhancing the Sheriff’s Office’s technical expertise, increasing the number of solved crimes in Spokane County, and reducing the number of crimes against persons and property.
The grant, which is administered by the U.S. Department of Justice Office of Justice Programs, was awarded on July 26, 2022. The funding will be used by the Forensic Unit of the Spokane County Sheriff’s Office, which is an accredited lab covering various areas. The Rapid DNA program should accelerate the speed by which investigative leads can be developed, perpetrators identified, and innocent parties cleared. As a result, offenders will be more quickly apprehended.
In announcing the nearly $500,000 award, U.S. Attorney Waldref stated, “This grant is an example of the Justice Department’s commitment to devoting resources to our local law enforcement partners to ensure Eastern Washington remains Safe and Strong.” U.S. Attorney Waldref continued, “DNA testing is a critical tool for solving and prosecuting crime. In fact, DNA analysis has proven to be the difference in identifying, and in some cases exonerating, the accused. By devoting these additional resources in Spokane County, we are able to help law enforcement hold perpetrators accountable and deter others from committing criminal acts in Eastern Washington.”
More information about grants and funding through the U.S. Department of Justice Office of Justice Programs is available at https://www.ojp.gov/.
Danville Woman Pleads Guilty to Stealing over $66,000 from Saint Anselm CollegeRead the Press Release
CONCORD – Renee Crawford, 35, of Danville pleaded guilty in federal court today to embezzling more than $66,000 from Saint Anselm College, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, Crawford was employed as the Assistant Vice President of Finance for the College. In her role, Crawford had authority to manage invoice approvals, enter vendor information, and had oversight of the Finance Office’s credit card program.
Crawford used her access to submit fraudulent invoices for a company that she created, receiving more than $44,000 from the College which she used for personal purchases. In addition, Crawford used two College issued credit cards to make personal purchases, such as family vacations and theme park tickets, totaling nearly $22,000.
Crawford is currently scheduled to be sentenced on November 14, 2022.
The case was investigated by the Federal Bureau of Investigation and the Goffstown Police Department. The case is being prosecuted by Assistant U.S. Attorney John J. Kennedy
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D.C. Man Pleads Guilty to Carrying Out Conspiracy to Impersonate Federal Law Enforcement OfficerRead the Press Release
WASHINGTON – A District of Columbia man pleaded guilty today to charges stemming from a scheme in which he pretended to be a federal law enforcement officer for a range of purposes, including to secure a series of apartments in which he then failed to pay rent. He also used the ruse to promote his security company and ingratiate himself with actual officers.
Arian Taherzadeh, 40, pleaded guilty in the U.S. District Court for the District of Columbia to a superseding information charging him with a federal conspiracy offense and two District of Columbia offenses: unlawful possession of a large-capacity ammunition feeding device and voyeurism. A sentencing date has not yet been set. He is to appear Nov. 2, 2022, for a status hearing before the Honorable Colleen Kollar-Kotelly. As part of his plea agreement, Taherzadeh has agreed to cooperate with the government’s investigation.
The announcement was made by U.S. Attorney Matthew M. Graves, Wayne A. Jacobs, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division, Dr. Joseph V. Cuffari, Inspector General for the U.S. Department of Homeland Security, and Tira A. Hayward, Acting Inspector in Charge, Washington Division, U.S. Postal Inspection Service.
According to plea documents, Taherzadeh created a business entity called United States Special Police LLC (USSP), which was described as a private law enforcement, investigative, and protective service based in Washington. The company was not associated in any way with the United States government or the District of Columbia. As the scheme unfolded between December 2018 and April 2022, Taherzadeh falsely claimed to be, among other things, a Special Agent with the Department of Homeland Security, a member of a multi-jurisdictional federal task force, a former United States Air Marshal, and a former Army Ranger. He used these false claims to recruit others to USSP, under the guise that it was part of a covert federal law enforcement task force, defraud owners of three apartment complexes into providing him with multiple apartments and parking spaces for his supposed law enforcement operations, and ingratiate himself with members of federal law enforcement and the defense community.
Taherzadeh and others used assumed law enforcement personas, false and fictious federal law enforcement supervisors, and the company to obtain leases for multiple apartments in three complexes in the District of Columbia. These apartment buildings sustained more than $800,000 in losses from unpaid rent, parking, and associated fees. In one such apartment, Taherzadeh maintained and possessed an unlicensed gun with five fully loaded large-capacity ammunition feeding devices, containing a total of 61 rounds of ammunition.
In furtherance of his scheme, Taherzadeh and others obtained law enforcement clothing, paraphernalia, equipment, and an identification-making device. This included, among other things, police patches and badges, tactical gear and equipment, police lights, a Sig Sauer P229 firearm, a Glock 19 9mm handgun, large quantities of ammunition, concealed carry holsters, surveillance equipment, and unlicensed long gun components including a firearm barrel, weapon stock attachments, foregrips, a magazine cartridge and scope.
According to the plea documents, beginning as early as the spring of 2020, Taherzadeh began falsely identifying himself as a Special Agent to employees of the U.S. Secret Service. For instance, he falsely claimed to two Secret Service employees that he was in a gang unit. He told another that he was part of a covert task force. Taherzadeh also provided these Secret Service employees with tangible and intangible gifts. For instance, Taherzadeh provided one employee and his wife with a generator and a doomsday/survival backpack. He provided another employee with a rent-free penthouse apartment for approximately one year, worth approximately $40,200. He provided a third employee with a rent-free apartment for approximately one year, worth an estimated $48,240, as well as a drone, a gun locker, and a Pelican case. According to the plea documents, he did so to ingratiate himself with Secret Service employees because it deepened their relationship and furthered his ability to impersonate himself as a federal law enforcement officer.
Finally, Taherzadeh installed surveillance cameras outside and inside his apartment in one of the complexes. Among other places, he installed, maintained, and utilized cameras in his bedroom. He used these cameras to record women engaged in sexual activity. Taherzadeh then showed these explicit videos to third parties.
Taherzadeh and a co-defendant, Haider Ali, 36, also of Washington, D.C., were arrested on April 6, 2022. Ali has pleaded not guilty to charges filed against him in an indictment. An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the FBI’s Washington Field Office, the Office of the Inspector General for the U.S. Department of Homeland Security, and the U.S. Postal Inspection Service. It is being prosecuted by Assistant U.S. Attorneys Elizabeth Aloi and Joshua S. Rothstein of the Fraud, Public Corruption, and Civil Rights Section.
Valuable assistance has been provided by Assistant U.S. Attorney Christopher Tortorice and Paralegal Specialists Chad Byron, Quiana Dunn-Gordon, and Lisa Abbe of the U.S. Attorney’s Office for the District of Columbia and Trial Attorneys Kathleen Campbell and Evan Turgeon of the Department of Justice’s National Security Division.
Cranston Man Admits to Role in Drug Trafficking Organization That Shipped More Than 50 Kilos of Cocaine into Rhode IslandRead the Press Release
PROVIDENCE – A Cranston man today admitted to a federal judge that he played a long-running role in a drug trafficking organization (DTO) that U.S. Postal Service Inspectors determined shipped or attempted to ship a total of more than 50 kilograms of cocaine into Rhode Island, announced United States Attorney Zachary A. Cunha.
Nelson Santos Carvalho, 47, admitted that he provided members of the DTO in Puerto Rico residential and business addresses in Rhode Island to use for shipping U.S. Priority mail parcels, each containing approximately one kilogram of cocaine; discussed arrival dates and retrieval of the parcels with co-conspirators; retrieved the packages from locations throughout Rhode Island, including his work address; transported the cocaine to co-conspirators in Rhode Island; and performed other functions as needed to facilitate the operations of the DTO.
Carvalho is the fourth defendant to admit his role in this DTO that operated in both Rhode Island and Puerto Rico.
According to charging documents, for more than 18 months, beginning in January 2018, Carvalho provided the DTO with various Rhode Island addresses at which he and other persons known to him lived and worked. At least eleven of the parcels were shipped to Women and Infants Hospital where Carvalho was employed as a mail clerk, addressed to names provided to the DTO by the defendant. Carvalho retrieved the packages from the post office and provided them to other co-conspirators.
Based on the packages seized, the known size and weights of many of the parcels not intercepted, and positive K9 alerts on packaging materials discarded by DTO members, the DTO is believed to have shipped and/or attempted to ship approximately 51 kilos of cocaine into Rhode Island.
Appearing today before U.S. District Court Judge Mary S. McElroy, Carvalho pleaded guilty to conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine. He is scheduled to be sentenced on November 3, 2022. The defendants’ sentences will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
Co-conspirators George Mojica, 42, Angel Delgado, 25, and Arcadio Torres, 30, of Central Falls, previously admitted to a federal judge that they participated in the conspiracy and performed various functions to assist the DTO. Mojica and Delgado were sentenced in May to serve seven years and five years in federal prison respectively; Torres is awaiting sentencing.
The case is being prosecuted by Assistant U.S. Attorney Denise M. Barton.
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Convicted Felon Sentenced to Ten Years in Federal Prison for Drug Trafficking and Unlawful Possession of a FirearmRead the Press Release
Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Tyrell Wade Nault, 22, of Havre, Montana was sentenced in federal court in Spokane for Possession with Intent to Distribute Methamphetamine and Unlawful Possession of a Firearm. Chief United States District Judge Stanley A. Bastian sentenced Nault to a total of 120 months in federal prison and ordered Nault to serve a three-year term of supervised release. Nault plead guilty on December 2, 2021.
According to court documents, the Spokane County Sheriff’s Office arrested Nault and his girlfriend on May 29, 2020, as they were about to get into their car in a hotel parking lot in Spokane Valley, Washington. At the time of their arrest, both Nault and his girlfriend had outstanding arrest warrants related to criminal proceedings in Montana. During the arrest, the Spokane County Sherriff’s Office found $1,355 in U.S. currency and, a baggie of approximately 32 Oxycodone pills, and a loaded 9mm semiautomatic pistol on Nault’s person. Subsequent investigation revealed that the 9mm firearm was stolen. During a search of Nault’s vehicle, law enforcement found, among other things, a digital scale, additional U.S. currency, and several baggies containing at total of 81 grams of actual (pure) methamphetamine. At the time of Nault’s arrest, he had multiple prior felony convictions.
Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, commended the joint efforts of law enforcement for working together to keep the Spokane community safe: “These types of federal, state, and local partnerships, coupled with community engagement, are essential to prevent convicted felons from obtaining firearms and distributing poison in our communities.” U.S. Attorney Waldref continued, “Today’s sentence removes Mr. Nault from our community for 10 years, sending an important signal that the U.S. Attorney’s Office continues to vigorously prosecute those who distribute deadly narcotics in Eastern Washington.”
“Hopefully this lengthy sentence will give Mr. Nault the opportunity to think about the harm he has done to the community, and when released change his life for the better,” said ATF Seattle Field Division Special Agent in Charge Jonathan T. McPherson. “We will continue to investigate and arrest those who, like Mr. Nault, act in ways that are against the law and harmful to our communities and nation.”
This case was prosecuted under the Project Safe Neighborhoods (PSN) program. PSN is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. The U.S. Attorney’s Office is partnering with federal, state, local, and tribal law enforcement to specifically identify the criminals responsible for violent crime in the Eastern District of Washington and pursue criminal prosecution.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the U.S. Marshals Service, the Pacific Northwest Violent Offender Task Force, and the Spokane County Sheriff’s Office. The case was prosecuted by Dominique Juliet Park, Assistant U.S. Attorney for the Eastern District of Washington.
Convicted Felon Sentenced to 57 Months in Federal Prison for Unlawful Possession of a FirearmRead the Press Release
INDIANAPOLIS – Deeon Flowers, 29, of Indianapolis, was sentenced to fifty-seven months in federal prison after pleading guilty to possession of a firearm by a convicted felon.
According to court documents and evidence presented at sentencing, on October 17, 2020, officers with the Indianapolis Metropolitan Police Department (IMPD) were dispatched to a gas station around 38th and Keystone Avenue in Indianapolis. When officers arrived, they were told that Flowers had taken his girlfriend’s 11-year-old child without the mother’s permission. Officers located Flowers in the driver’s seat of a vehicle stopped at the gas station. The child was in the front passenger seat. Officers observed a handgun magazine protruding from Flowers’ waistband and could also see marijuana in plain view in the center console area.
Police obtained a search warrant for the vehicle and recovered a loaded 9mm Taurus G2C, underneath the driver’s seat, as well as another loaded magazine from inside a lunchbox on the front passenger floorboard. Flowers is a convicted felon and is prohibited from possessing firearms and ammunition. The firearm was swabbed for DNA, which was later determined to match Flowers’ DNA. At the time of the offense, Flowers was on pretrial supervision after being charged with felony intimidation and misdemeanor domestic battery in Marion County, Indiana, in November of 2019.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana; Chief Randal Taylor, Indianapolis Metropolitan Police Department; and Daryl S. McCormick, Special Agent in Charge of ATF’s Columbus Field Division made the announcement.
IMPD and the ATF investigated the case. U.S. District Judge James Patrick Hanlon imposed the sentence following Flowers’ guilty plea. As part of the sentence, Judge Hanlon ordered that Flowers be supervised by the U.S. Probation Office for three years following his release from prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Kelsey Massa who prosecuted this case.
This case was brought as part of the Indiana Crime Guns Task Force (ICGTF). ICGTF is a partnership of law enforcement officers and analysts from several central Indiana law enforcement agencies in Boone, Hamilton, Hancock, Hendricks, Marion, Morgan, Johnson, and Shelby counties. In cooperation with state, local, and federal partners, ICGTF collaborates to address violent crime through a comprehensive strategy including innovative approaches to locating suspects and evidence related to violent crimes and illegal possession of firearms.
This case was also brought as part of the LEATH Initiative (Law Enforcement Action to Halt Domestic Violence), named in honor of Indianapolis Metropolitan Police Department (IMPD) Officer Breann Leath, who was killed in the line of duty while responding to a domestic disturbance call. A partnership among the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the IMPD, and the U.S. Attorney’s Office for the Southern District of Indiana, the LEATH Initiative focuses federal, state, and local law enforcement resources on domestic violence offenders who illegally possess firearms.
Additionally, this case is also 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.
Connecticut Drug Trafficker Sentenced to 54 Months in PrisonRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Markus Saez, 28, of Bloomfield, Connecticut, was sentenced today to serve 54 months in prison after his conviction for possessing with intent to distribute fentanyl, heroin, cocaine base, and cocaine. United States District Judge William K. Sessions III also ordered Saez to serve a three-year term of supervised release after his incarceration.
According to court records, in the fall of 2020, agents with the Drug Enforcement Administration conducted controlled purchases of fentanyl from Saez with the help of a confidential informant. On December 7, 2020, DEA agents arrested Saez while he was in the middle of a drug sale in the parking lot of a hotel in Colchester. A search of Saez’s person resulted in the seizure of $1,106 and a hotel key card for Saez’s room. Agents obtained a search warrant from a federal magistrate judge for the room, resulting in the seizure of approximately 40 grams of fentanyl, 70 grams of cocaine and cocaine base, cutting agents, drug packaging materials, and over $11,000 in cash.
At the sentencing hearing, the government requested a 70-month sentence, citing defendant Saez’s multiple prior convictions for selling narcotics and his June 2021 arrest in East Hartford, Connecticut for unlawfully possessing and brandishing a loaded firearm, which occurred while he was on pretrial conditions of release in the Vermont federal case. Saez’s prosecution in Connecticut for firearm offenses remains pending.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of the Drug Enforcement Administration, the Winooski Police Department and the Burlington Police Department.
Assistant United States Attorney Jonathan A. Ophardt handled the prosecution. Saez was represented by Gregory Mertz, Esq.
Brook Andrews Named First Assistant U.S. Attorney for the District of South CarolinaRead the Press Release
COLUMBIA, SOUTH CAROLINA —United States Attorney Adair F. Boroughs announced that Brook Andrews has been named First Assistant U.S. Attorney for the District of South Carolina, the office’s second-ranking position.
Andrews is a career federal prosecutor with experience spanning criminal, civil, trial, and appellate matters across several duty stations within the U.S. Department of Justice. He most recently served the office as the Deputy Criminal Chief for the White Collar/General Crimes Section. In that role, Andrews oversaw the investigation and prosecution of federal crimes in South Carolina including all financial fraud, civil rights, human trafficking, and public corruption offenses. As a criminal prosecutor, Andrews handled a number of high-profile matters including the prosecution of former SCANA executives in the wake of the V.C. Summer Nuclear investigation. Before that, he spent several years litigating civil fraud and whistleblower cases, recovering millions of dollars for Medicare, Medicaid, TRICARE, and other federal programs. In addition to his primary duties as a prosecutor, Andrews has served for over five years as the Ethics Advisor for the district, and as an adjunct professor at the University of South Carolina School of Law.
Before returning to his hometown of Columbia in 2016, Andrews practiced law in Washington, D.C. for five years, beginning with his selection into the U.S. Department of Justice Attorney General's Honors Program and placement into the Environment and Natural Resources Division. As a DOJ Trial Attorney, Andrews spent several years representing the United States in cases around the country involving land use, water rights, and environmental regulations. Andrews then spent two years in private practice at a national law firm, representing states and cities around the country as outside counsel in complex civil fraud and consumer protection cases.
Before his litigation practice, Andrews served as a law clerk to Chief Justice Jean Toal of the South Carolina Supreme Court and U.S. District Judge Margaret Seymour for the District of South Carolina. While at the Supreme Court, Andrews also served as a Staff Attorney on the South Carolina Sentencing Reform Commission.
For more information about the U.S. Attorney’s Office for the District of South Carolina, please visit https://www.justice.gov/usao-sc.
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Ashton Man Sentenced to 12.5 Years in Prison for Distribution of Child PornographyRead the Press Release
Acting United States Attorney Steven Russell announced that Jason Griess, 32, formerly of Ashton, Nebraska, was sentenced today in Lincoln, Nebraska, by United States District Judge John M. Gerrard for distribution of child pornography. Griess was sentenced to 12 1/2 years in prison and15 years of supervised release. There is no parole in the federal system. Griess was additionally ordered to pay $6,000 which will contribute to funds established for victims of these types of cases.
From on or about August 10, 2019, until on or about August 16, 2019, an Online Covert Employee (“OCE”) working with the FBI’s child exploitation task force engaged in conversations with Griess. Griess tried to make arrangements with the OCE to travel to Utah where the OCE indicated he lived, to have intercourse with the OCE’s fictitious 9-year-old daughter. Through the course of their conversation, Griess sent an image of child pornography to the OCE.
The FBI received search warrants for Griess’s residence and devices. Griess consented to a voluntary interview where he confessed to distributing the image to the OCE and to saving and storing child pornography. Approximately 124 images of child pornography were found on his cellular phone. An additional 172 videos and 11 images were found on other accounts that belonged to Griess.
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 Attorney’s 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.
Andrew Haden Becomes Second-in-Command at U.S. Attorney’s OfficeRead the Press Release
Kelly Thornton (619) 546-9726
NEWS RELEASE SUMMARY – August 1, 2022
SAN DIEGO – Veteran federal prosecutor Andrew R. Haden today became second-in-command of the United States Attorney’s Office for the Southern District of California, one of the busiest federal districts in the nation.
Haden, who was selected by U.S. Attorney Randy Grossman, was promoted to fill the vacancy created by the departure of David Leshner. Leshner – a 15-year veteran of the U.S. Attorney’s Office – was recently selected to become a United States Magistrate Judge for the Southern District of California.
As First Assistant U.S. Attorney, Haden will oversee the day-to-day operations of the office and serve as a trusted advisor to the U.S. Attorney.
Haden is a career federal prosecutor. He joined the U.S. Attorney’s Office in 2010, after being selected through the Attorney General’s Honors Program. During his almost-12 years in the San Diego office, Haden has worked in the General Crimes Section, as a Deputy Chief in both the Reactive and Major Crimes Sections, as the Chief of the Violent Crimes & Human Trafficking Section, and most recently as the Chief of the Criminal Division.
During those assignments, he established himself as a trial lawyer who is passionate about firearms offenses and crimes against children. In 2020, Haden received the nationwide Director’s Award for Superior Performance in a Managerial or Supervisory role from the Executive Office for United States Attorney’s for “extraordinary leadership contributions” to the Department of Justice from 2016-2019. Prior to joining the U.S. Attorney’s Office, Haden served as a law clerk for U.S. District Judge Thomas J. Whelan in the Southern District of California.
“We are thrilled that Andrew has agreed to accept this important role,” U.S. Attorney Grossman said. “Andrew’s strong leadership skills, deep and diverse experience as a prosecutor and his exceptional judgment and strength of character will serve him and our district well as First Assistant U.S. Attorney.”
A San Diego native, Haden is a graduate of University City High School. He received his Bachelor of Arts in Political Science from Stanford University. After college, Haden was commissioned as an Officer in the United States Navy where he served for five years, which included two overseas deployments. For his last assignment, Haden was the Navigator on the USS MOBILE BAY (CG-53), a guided-missile cruiser homeported in San Diego. Haden received his law degree from the University of San Diego.
The U.S. Attorney’s Office enforces federal criminal laws in the Southern District of California, which includes San Diego and Imperial counties, and represents the federal government in civil litigation. The office is composed of approximately 140 Assistant U.S. Attorneys and 145 staff members.
"Boiler Room" Operator Pleads Guilty to International Securities Fraud ConspiracyRead the Press Release
Earlier today, in federal court in Brooklyn, Lee Cohen, a citizen of the United Kingdom, pleaded guilty to conspiracy to commit securities fraud for his role in a scheme to manipulate the price and trading volume of HD View, 360, Inc. (HDVW), a publicly traded company that purported to distribute and install security surveillance systems. In connection with his plea, Cohen also admitted that he agreed to launder money that was purported to be the proceeds of similar securities fraud schemes. The proceeding was held before United States District Judge Kiyo A. Matsumoto. When sentenced, Cohen faces up to five years in prison.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI) announced the guilty plea.
“Cohen ran his scam from a ‘boiler room’ more than 8,000 miles from the federal courtroom in Brooklyn where he pleaded guilty today to defrauding investors, proving that distance will never protect criminals from the reach of our Office’s outstanding attorneys and FBI Special Agents who brought the defendant to justice,” stated United States Attorney Peace.
Mr. Peace thanked the United States Securities and Exchange Commission, New York Regional Office and Washington, D.C. Office, for their assistance in the case.
As set forth in court filings, Cohen operated a self-described “boiler room” in the Philippines. Cohen and his co-conspirators used the boiler room to defraud investors and potential investors in HDVW by inducing investors to buy HDVW shares at particular prices. At the same time, Cohen coordinated with a co-conspirator who controlled the majority of HDVW’s shares, then sold the shares for a profit. During the scheme, over 1,000 investors purchased shares of HDVW and lost more than $1.2 million.
In July 2022, Mr. Peace was selected as the Chairperson of the White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (AGAC). As the leader of the subcommittee, Mr. Peace will play a key role in making recommendations to the AGAC to facilitate the prevention, investigation and prosecution of various financially motivated, non-violent crimes including mail and wire fraud, bank fraud, health care fraud, tax fraud, securities and commodities fraud, and identity theft.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys David Gopstein and Nicholas J. Moscow are in charge on the prosecution.
The Defendant:
LEE COHEN
Age: 52
Manila, PhilippinesE.D.N.Y. Docket No. 22-CR-209 (KAM)
Friday 29 July 2022
Woman Sentenced to 70 Months in Prison for Multiple RobberiesRead the Press Release
A woman who robbed four stores and attempted to steal a woman’s purse at another was sentenced Friday in federal court, announced U.S. Attorney Clint Johnson.
Chief U.S. District Judge John F. Heil III sentenced Valerie Bowman, 25, of Tulsa, to 70 months in prison followed by three years of supervised release.
Bowman pleaded guilty on Jan. 7, 2022, to four counts of robbery in Indian Country and one count of attempted robbery in Indian Country.
On Oct. 2, 2021, Bowman robbed a Dollar General cashier, stealing $372 from the store’s cash register. She assaulted the victim by spraying him in the eyes and face with bed bug spray and grabbed the cash.
She further pushed a second cashier and stole $262 from the cash register at a CVS Pharmacy on Oct. 8, 2021. She also pushed, fought, grabbed and pulled a third cashier away from the register and stole $36 at another CVS Pharmacy on Oct. 10, 2021, and about eight hours later, fought and struggled with a cashier and store manager to steal cigarettes and cash at a Walgreens Pharmacy.
Finally, on Oct. 18, 2021, Bowman unsuccessfully attempted to steal an elderly woman’s purse at a Tulsa Walgreens. Bowman fled the location when the woman refused to let go of the purse, but she was stopped shortly after the crime by a Tulsa Police Officer. Bowman told the officer that she believed she was “untouchable” because she was a tribal citizen on a reservation.
“Valerie Bowman thought she was ‘untouchable’ when she robbed four stores by assaulting cashiers and attempted to rob an elderly woman,” said U.S. Attorney Clint Johnson. “She learned she wasn’t. Through federal, state and tribal cooperation, law enforcement officers have been cross commissioned so they can investigate cases involving Native Americans on reservations. Through those critical partnerships, defendants like Bowman are being held accountable for their crimes.”
The Tulsa Police Department and FBI conducted the investigation. Assistant U.S. Attorney Thomas E. Buscemi prosecuted the case.
Utica Woman Indicted for Theft and Misappropriation of Funds as a FiduciaryRead the Press Release
SYRACUSE, NEW YORK – Trina Gigliotti, age 54, of Utica, New York, was indicted earlier this month for misappropriating the funds of the legally incompetent spouse of a deceased veteran, as well as stealing from the U.S. Department of Veterans Affairs. The announcement was made by United States Attorney Carla B. Freedman and Christopher F. Algieri, Special Agent in Charge of the Northeast Field Office for the United States Department of Veterans Affairs Office of Inspector General.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The charges filed against Gigliotti carry a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. The indictment also seeks forfeiture of $36,129.08, representing the amount allegedly stolen. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Gigliotti was arraigned yesterday in Syracuse, before United States Magistrate Judge Andrew T. Baxter, and released on conditions of supervision pending further proceedings.
This case is being investigated by the United States Department of Veterans Affairs Office of Inspector General, and is being prosecuted by Assistant U.S. Attorney Adrian S. LaRochelle.
This case is part of the Elder Justice Initiative. The mission of the Elder Justice Initiative is to support and coordinate the Department’s enforcement and programmatic efforts to combat elder abuse, neglect and financial fraud and scams that target our nation’s older adults. Anyone with information about allegations of attempted fraud involving elders can call the National Elder Fraud Hotline at 1-833-372-8311.
United States Attorney and United States Marshal Announce Task Force ResultsRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg and United States Marshal William Berger announce the results of recent operations conducted by the United States Marshals Service Florida/Caribbean Regional Fugitive Task Force. In addition to finding and arresting fugitives charged with violent crimes, distribution of illicit narcotics, sex offenses, and other serious felonies, the United States Marshals Service Task Force provides direct support to law enforcement agencies in tracking down and recovering missing children. From January 1 through June 30, 2022, the United States Marshals Service Florida/Caribbean Regional Fugitive Task Force made over 1,500 felony arrests in Florida.
The United States Marshals Service Florida/Caribbean Regional Fugitive Task Force is headquartered in the Middle District of Florida and includes 88 federal, state, and local law-enforcement agencies. Nationally, the United States Marshals Service fugitive programs are carried out with federal, state, and local law enforcement in 94 district offices, eight regional task forces, 67 local fugitive task forces, as well as a growing network of offices in foreign countries around the world.
“The U.S. Marshals Service Florida/Caribbean Regional Fugitive Task Force is a model of interagency cooperation, and the results announced today show how well we work together in the Middle District of Florida,” said U.S. Attorney Handberg. “We bring together the combined resources of federal, state, and local law enforcement to make our communities safer.”
“The U.S. Marshals Service and the United States Attorney’s Office are committed to our federal, state, and local law-enforcement partners,” said Marshal Berger. “Members of the U.S. Marshals Service Florida/Caribbean Regional Fugitive Task Force put themselves in harm’s way each and every day and night to locate and apprehend dangerous fugitives and to rescue children. We are committed to this mission.”
In addition to the hundreds of arrests in the first part of this year, the Task Force has recently made arrests of violent offenders around the district, including:
- July 5, 2022, in Jacksonville, Oba Carter (47) for first degree murder, attempted first degree murder, and robbery;
- July 6, 2022, in Orange County, Eric Adkins (52) for sexual battery of a minor child; and
- July 7, 2022, in Tampa, Ronny Walker (44) for first degree murder of a minor.
Every defendant is presumed innocent unless, and until, proven guilty.
U.S. Postal Service Employee Indicted on Theft of Postal Money Orders and Wire FraudRead the Press Release
BOSTON – A U.S. Postal Service (USPS) employee has been indicted in connection with allegedly embezzling over $96,000 and for fraudulently obtaining unemployment benefits.
Jamesa Rankins, 26, of Brockton, was indicted on one count of theft of government money and three counts of wire fraud. Rankins will appear in federal court in Boston at 3 p.m. today.
According to the indictment, Rankins began working for USPS around 2016, most recently as a Sales & Service Distribution Associate at the Montello Post Office in Brockton. In this role, Rankins had the ability to generate postal money orders, including replacement money orders. During the relevant period, customers could obtain replacement money orders without paying any additional fees if the original money orders were lost, damaged or erroneous. It is alleged that Rankins issued over $96,000 worth of replacement money orders to another individual where the original money orders were not erroneous and had not been lost or stolen, which caused the USPS to incur losses of $96,000. On at least one occasion, it is alleged that Rankins personally negotiated one of the replacement money orders at a check cashing business.
It is also alleged that Rankins applied for and obtained unemployment assistance from the Massachusetts Division of Unemployment Assistance despite being employed by USPS and thus being ineligible to receive unemployment assistance.
The charge of theft of government money provides a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. The charge of wire fraud provides for a sentence of up to 20 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; Matthew Modafferi, Special Agent in Charge of the United States Postal Service Office of Inspector General, Northeast Area Office; and Jonathan Mellone, Special Agent in Charge of the New York Region of the U.S. Department of Labor’s Office of Inspector General, Office of Criminal Investigations – Labor Racketeering and Fraud made the announcement today. Assistant U.S. Attorney Eugenia M. Carris, Deputy Chief of Rollins’ Public Corruption & Special Prosecutions Unit, and Assistant U.S. Attorney Evan Panich of Rollins’ Criminal Division are 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.
U.S. Attorney’s Eastern Washington COVID-19 Strike Force Announces Three More IndictmentsRead the Press Release
Spokane, Washington – Today, Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced that a federal grand jury has indicted three additional individuals for COVID-19 Fraud as part of the Eastern Washington COVID-19 Strike Force. The Indictments announced today are the most recent charges brought by the Strike Force, which has brought criminal charges against numerous individuals and recovered millions of dollars in fraudulently obtained COVID relief funding.
On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act provided a number of programs through which eligible small businesses could request and obtain relief funding intended to mitigate the economic impacts of the pandemic for small and local businesses. One such program, the Paycheck Protection Program (PPP), provided government-backed loans to small businesses which could be forgiven so long as the proceeds were used for payroll and other eligible expenses. Another program, the Economic Injury Disaster Loan (EIDL) program, provided low interest loans that could be deferred until the conclusion of the pandemic to provide “bridge” funding for small businesses to maintain their operations during shutdowns and other economic circumstances caused by the pandemic. The PPP and EIDL programs have provided billions of dollars in aid, the vast majority of which have not been paid back, including hundreds of millions of dollars disbursed within Eastern Washington.
One Indictment announced today charges Stephanie and Stephen Murphy, ages 36 and 42, of Davenport, Washington, with nine counts of fraud for fraudulently-obtaining three PPP loans for fictitious landscaping and wood products manufacturing businesses in 2021. The second Indictment announced today charges Dondre Jackson, age 29, of Moses Lake, Washington, with six counts of fraud in connection with two fraudulently-obtained PPP loans for a fictitious catering business. The Indictments allege that these businesses did not exist and that the Defendants falsified information and submitted fake documents to make it appear as though they were legitimate businesses that qualified for PPP loans, resulting in Defendants collectively obtaining over $100,000 in relief funding that was designated for legitimate small businesses struggling with the economic impact of COVID-19.
“COVID-19 relief programs were designed to lift up our community during crisis, and due to the number of people and businesses that requested funding, some deserving small businesses were not able to obtain funding to keep their businesses in operation,” said U.S. Attorney Waldref. “We created the Eastern Washington COVID-19 Fraud Strike Force because combatting pandemic-related fraud and holding those accountable who abused these programs is critical to the strength and safety of our community in Eastern Washington. The Strike Force works to ensure that limited resources are used to protect our local small businesses and the critical jobs and services that they provide for the community.”
In February 2022, U.S. Attorney Waldref and the U.S. Attorney’s Office (USAO) began working with federal law enforcement agencies to create and launch a COVID-19 Fraud Strike Force that would leverage partnerships between different agencies to aggressively investigate and prosecute fraud against COVID-19 relief programs in Eastern Washington. The Strike Force consists of agency representatives from the USAO, Small Business Administration (SBA) Office of Inspector General (OIG), Federal Bureau of Investigation (FBI), U.S. Department of the Treasury Inspector General for Tax Administration (TIGTA), U.S. Secret Service, U.S. Homeland Security Investigations, U.S. Department of Veterans Affairs OIG, General Services Administration OIG, Department of Homeland Security (DHS) OIG, Internal Revenue Service, Department of Energy OIG, and others.
“I commend the stellar investigative work on these cases performed by the Strike Force and especially in this case by SBA OIG, TIGTA, and the Secret Service,” said U.S. Attorney Waldref. “We will continue to work together with our law enforcement partners to vigorously prosecute those who abuse and misuse COVID-19 relief funding, and to strengthen our communities by protecting our small and local businesses.”
The fraud charges carry sentences of up to 20 years in federal prison as well as restitution for fraudulently-obtained funds. This case was investigated by the Eastern District of Washington COVID-19 Fraud Strike Force and by SBA OIG, TIGTA, DHS OIG, and the U.S. Secret Service. The cases are being prosecuted by Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Three Florence Men Sentenced to Years in Prison on Federal Firearms ViolationsRead the Press Release
FLORENCE, SOUTH CAROLINA —Shakeam Marquise Backus, 27, Joey Qurrieven York, 23, and Jyqwon Antonio Woods, 34, all of Florence, were sentenced this week to multiple years in federal prison based on their convictions for federal firearms violations. These cases were jointly investigated by the Florence Police Department (FPD) and the Florence County Sheriff’s Office with the assistance of the Federal Bureau of Investigation (FBI) as part of an ongoing state/federal partnership to address violent crime in the Pee Dee. These defendants were specifically selected for federal prosecution due to their connections with a local street gang.
Backus was sentenced to 147 months in prison followed by a four-year term of supervised release after pleading guilty to being a felon in possession of a firearm and conspiring to distribute 28 grams or more of crack cocaine. Evidence presented at the sentencing hearing showed that during a traffic stop on March 28, 2017, he was caught with a stolen Glock, model 26, pistol loaded with 17 rounds of 9mm ammunition in an extended magazine. He also had various drugs in his vehicle and attempted to flee on foot before being apprehended by officers from the Florence Police Department. He was also found in possession of several firearms and other drugs during a July 10, 2020, search warrant executed by Florence County Sheriff’s Office deputies. Backus was prohibited from possessing a firearm or ammunition due to his prior felony convictions, which include burglary (2010), grand larceny (2010), strong arm robbery (2012), assault and battery, 1st Degree (2015), and distribution of crack cocaine (2016).
York was sentenced to 84 months in prison followed by a five-year term of supervised release after pleading guilty to being a felon in possession of a firearm and ammunition and possession of a firearm in furtherance of a drug trafficking crime. Evidence presented at the hearing showed that on December 10, 2020, he was the subject of a traffic stop where he was found to be in possession of a stolen vehicle, a loaded Smith and Wesson .38 revolver, marijuana, a digital scale, and a black ski mask. He was apprehended by officers from the Florence Police Department after a short foot chase. York was also prohibited from possessing a firearm or ammunition due to his prior felony convictions for possession of a stolen vehicle and failure to stop for blue lights (2017), and he had several prior misdemeanor convictions for drug possession and driving offenses.
Woods was sentenced to 60 months in prison followed by five-year term of supervised release after pleading guilty to possession of a firearm in furtherance of a drug trafficking crime. Evidence at the hearing showed that Woods drew the attention of Florence Police Department officers on March 19, 2019, when he was seen putting a pill bottle in his pocket and then attempting to flee on foot. He was apprehended and found to be in possession of an SCCY 9mm pistol loaded with 10 rounds of ammunition, oxycodone pills, crack and powder cocaine, cash, and a digital scale. Woods was prohibited from possessing a firearm or ammunition due to his prior felony convictions for possession of a stolen vehicle (2004) and conspiracy to distribute crack cocaine (2008), with the latter charge resulting in him being sent to federal prison for several years. He also has prior misdemeanor convictions for drug possession, DUI, and resisting arrest.
United States District Judge Sherri A. Lydon sentenced the defendants, all of whom have been in custody since the time of their arrests. There is no parole in the federal system, and they will not be released until the service of their prison sentences is complete.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant U.S. Attorney Everett McMillian, Lead Attorney for the Organized Crime and Drug Enforcement Task Force, prosecuted the cases in close coordination with the Florence Police Department, the Florence County Sheriff’s Office, the FBI, and the 12th Circuit Solicitor’s Office.
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Suspended Augusta commissioner convicted of destroying records, lying to federal investigatorsRead the Press Release
AUGUSTA, GA: A suspended Augusta commissioner was found guilty after a four-day trial of destroying records in a federal investigation, and then lying about it to federal investigators researching the case.
Sammie Lee Sias, 67, of Hephzibah, Ga., who was suspended from his District 4 seat on the Augusta Commission after his indictment, was found guilty by a U.S. District Court jury of Destruction, Alteration, or Falsification of Records in Federal Investigations; and False Statement or Representation Made to a Department or Agency of the United States, said David H. Estes, U.S. Attorney for the Southern District of Georgia. The charges carry a maximum statutory penalty of up to 20 years in federal prison, along with substantial financial penalties and up to five years of supervised release following completion of any prison term.
There is no parole in the federal system.
“Former Commissioner Sias knew his handling of sales tax funds was under investigation, and he deleted thousands of electronic files within hours of a federal order requiring him to provide those files,” said U.S. Attorney Estes. “This verdict demonstrates that no one is above the law, and that there is a penalty for obstructing investigators working to find the truth.”
As described in court documents and testimony, the FBI and the Georgia Bureau of Investigation were investigating Sias’ role in expenditures of Richmond County Special Purpose Local Option Sales Tax (SPLOST) funds when an FBI special agent served Sandridge and Sias with federal subpoenas between July 30 and Aug. 5, 2019, for records regarding the Sandridge Community Association (SCA), Jamestown Community Center, Jamestown Special Purpose Local Option Sales Tax (SPLOST), SCA Board of Directors, and SCA Summer Camp. At the time, Sias was the long-time president of the SCA, which operated the Richmond County government-owned Jamestown Community Center.
FBI computer experts testified that within hours of the agent’s visit, Sias deleted approximately 7,000 relevant files from a laptop computer in his possession that belonged to the Jamestown Community Center.
Four days later, during a recorded interview with an FBI agent, Sias lied when he told the agent that he had provided all files in his possession related to the investigation. Digital forensics experts later found evidence of those missing files on the laptop, and in July 2021, a U.S. District Court grand jury named Sias in a two-count felony indictment.
After four days of testimony, the jury deliberated for just two hours before delivering guilty verdicts on both counts of the indictment.
Sias is free on bond pending sentencing. U.S. District Court Chief Judge J. Randal Hall will set a sentencing date for Sias following an investigation by U.S. Probation Services.
The case is being investigated by the FBI and the GBI, and prosecuted for the United States by Assistant U.S. Attorney and Criminal Division Chief Patricia G. Rhodes, and Assistant U.S. Attorney and Deputy Criminal Chief Tara M. Lyons.
101-22
Superseding Indictment Charges Two Additional Defendants for Their Roles in a Violent Carjacking Conspiracy Targeting Uber and Lyft DriversRead the Press Release
MINNEAPOLIS – Two Minneapolis men have been arrested and charged in a 30-count superseding indictment for their roles in a series of violent carjackings and armed robberies targeting Uber and Lyft drivers, announced U.S. Attorney Andrew M. Luger.
“As outlined in the superseding indictment, these defendants targeted and terrorized Uber and Lyft drivers. These carjackings were not one offs or random opportunities for joyriding; they were organized, calculated, violent crimes,” said U.S. Attorney Luger. “I want to acknowledge the collaborative work of federal, state, and local law enforcement in investigating and charging this violent carjacking ring.”
According to court documents, between September and October 2021, Eric Harrell Knight, 19, and Javeyon Demario Tate, 21, along with their co-conspirators Shevirio Kavirion Childs-Young, 18, and William Charles Saffold, 20, engaged in a series of violent carjackings and armed robberies, targeting Uber and Lyft drivers. As part of the scheme, members of the conspiracy lured victim-drivers to particular locations under the guise of picking up or dropping off passengers. When the victim-drivers arrived, members of the conspiracy brandished firearms and demanded the cell phones and wallets of the victim-drivers. Members of the conspiracy forced the victim-drivers at gunpoint to unlock their cell phones and provide passcodes. The conspiracy members then transferred money, via Cash App or other applications, from the accounts of the victim-drivers to the accounts of members of the conspiracy. Members of the conspiracy then carjacked the victim-drivers at gunpoint. To intimidate and force compliance, members of the conspiracy struck, pistol whipped, and threatened to kill the victim-drivers.
All four defendants are charged with conspiracy, brandishing firearms during and in relation to a crime of violence, aiding and abetting carjacking, and aiding and abetting interference with commerce by robbery (Hobbs Act). The superseding indictment also charges Saffold with assault on a federal law enforcment officer with a Polymer 80 9 mm pistol. Additionally, Tate is charged with unlawful possession of a machinegun: a Glock model 21 .45 caliber pistol equipped with an auto sear.
Knight and Tate made their initial appearances earlier today in U.S. District Court before Magistrate Judge David T. Schultz. Both defendants were ordered to remain in custody pending detention hearings. Childs-Young and Saffold were indicted on April 26, 2022, and will remain in custody pending further proceedings.
This case is the result of an investigation conducted by the FBI and the Minneapolis Police Department.
U.S. Attorney Andrew M. Luger and Assistant U.S. Attorney Thomas Calhoun-Lopez are prosecuting the case.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Sumter County Man Pleads Guilty to Illegally Possessing Destructive Devices, Firearms, and SilencersRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces that James Clay Bexley (34, Center Hill) has pleaded guilty to a two-count indictment charging him with possessing unregistered destructive devices and firearm silencers and possessing firearms in violation of a domestic violence injunction. If convicted, Bexley faces a maximum penalty of 10 years in federal prison on each count. A sentencing date has not yet been scheduled.
According to court records, Bexley was arrested at his home after contacting his wife in violation of an injunction. Sumter County Sheriff’s Office deputies located six firearms, two silencers, and two small explosive devices in Bexley’s vehicle. The Lake County Sheriff’s Office bomb squad then responded and discovered two destructive devices (pipe bombs) on Bexley’s front porch. After obtaining a search warrant, federal agents recovered approximately 35 pounds of explosive materials and bomb-making equipment from within the residence, along with an additional 12 firearms and two silencers.
Firearm silencers and destructive devices, such as pipe bombs, are illegal to possess unless registered in the National Firearms Registration and Transfer Record. None of Bexley’s silencers or destructive devices had been registered as required under federal law. Furthermore, it is also a federal crime to possess firearms while subject to a domestic violence injunction.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Sumter County Sheriff’s Office, and the Lake County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Tyrie K. Boyer.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.