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17 August 2022
Washington County Woman Pleads Guilty to Bank Fraud and Aggravated Identity TheftRead the Press Release
ALBANY, NEW YORK – Renee Burnell, age 49, of Hudson Falls, New York, pled guilty today in connection with a scheme to defraud two banks using the personal information of the customers of her plumbing and heating business.
The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Burnell pled guilty to bank fraud and aggravated identity theft. She admitted that between August 2019 and January 2020, she defrauded Synchrony Bank and The Bank of Missouri by applying for lines of credit with each bank using her customers’ personally identifiable information and then using the lines of credit to falsify purchases that benefitted her plumbing and heating business. Burnell admitted that her scheme resulted in a loss of $119,264.43 to The Bank of Missouri and a loss of $13,912.00 to Synchrony Bank.
The bank fraud conviction carries a maximum sentence of 30 years in prison and a maximum fine of up to $1 million. The aggravated identity theft conviction carries a mandatory term of 2 years in prison, to be imposed consecutively to any other term of imprisonment. The court may also require Burnell to serve a term of supervised release of up to 5 years to begin after imprisonment. Burnell is scheduled to be sentenced in January 2022, by Senior United States District Judge Lawrence E. Kahn. A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Alexander P. Wentworth-Ping.
U.S. Attorney Announces Sentences in Two Firearms CasesRead the Press Release
BOISE – Two men from southern Idaho were sentenced to federal prison in separate firearms cases this week, announced Josh Hurwit, the United States Attorney for the District of Idaho.
Scott Arlis Thomas, 48, of Caldwell, Idaho, was sentenced in U.S. District Court to 120 months in federal prison for the unlawful possession of firearms, ammunition, and silencers. Senior U.S. District Judge B. Lynn Winmill also ordered Thomas to serve three years of supervised release following his prison sentence.
Thomas has a lengthy criminal history that includes three drug trafficking convictions and a prior conviction for unlawfully possessing a firearm. Due to his criminal history, Thomas is not able to lawfully possess firearms. According to court records, on July 24, 2020, law enforcement conducted a search of Thomas’s shop in Caldwell, Idaho. Inside, officers located four firearms and four silencers. Officers also located marijuana, psilocybin mushrooms, and methamphetamine. The silencers were not registered to Thomas, as required by the National Firearms Act.
In a separate case, Juan Jose Sanchez, 31, of Nampa, Idaho, was sentenced in U.S. District Court to 96 months in federal prison for the unlawful possession of a firearm. Senior U.S. District Judge B. Lynn Winmill also ordered Sanchez to serve three years of supervised release following his prison sentence.
Sanchez also has a lengthy criminal history that includes convictions for aggravated battery, possession of heroin, burglary, and the unlawful possession of a firearm. Due to his criminal history, Sanchez is not able to lawfully possess firearms. According to court records, on February 19, 2021, Sanchez possessed a firearm while at another individual’s residence in Nampa, Idaho. Sanchez shot that individual in the leg during an altercation, fled the residence, and discarded the firearm. Law enforcement responded, investigated, and eventually located and arrested Sanchez.
“I am pleased with the successful prosecution of these repeat offenders who posed a risk to public safety,” said U.S. Attorney Josh Hurwit. “It is imperative that we work to reduce violent crime by aggressively pursuing those who unlawfully possess firearms. The cooperative efforts of the federal, state, and local agencies that work together to combat these crimes make a real difference.”
The Thomas case was investigated by the FBI Metro Violent Crimes Task Force, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Canyon County Sheriff’s Office, the Payette County Sheriff’s Office, the Caldwell Police Department, the Idaho State Police, and the Idaho Department of Correction.
The Sanchez case was investigated by the Canyon County Sheriff’s Office, FBI’s Metro Violent Crimes Task Force, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
These cases were prosecuted as part of the Department of Justice’s Project Safe Neighborhoods (PSN) program. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state, and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Ada County Sheriff’s Office; Boise Police Department; Caldwell Police Department; Canyon County Sheriff’s Office; Meridian Police Department; Nampa Police Department; and Idaho Department of Correction.
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Tyler Gang Member Sentenced for Federal Firearms ViolationRead the Press Release
TYLER, Texas – A Tyler man has been sentenced to federal prison for a firearms violation in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Brandon Deshun Hawkins, 36, pleaded guilty on Sep. 29, 2021, to being a felon in possession of a firearm and was sentenced to 37 months in federal prison by U.S. District Judge Jeremy D. Kernodle on August 16, 2022.
According to court documents, on Oct. 13, 2020, Hawkins was stopped while driving on S. Vine Street in Tyler and arrested on outstanding warrants. During the traffic stop, Hawkins threw a plastic bag containing marijuana from the vehicle, resulting in a probable cause search of the vehicle. During the search, officers discovered a pistol between the driver’s seat and center console. Further investigation revealed Hawkins is a member of the Eight Trey Gangster Crips, a criminal street gang, and a convicted felon with five prior convictions for aggravated assault with a deadly weapon from a 2008 Tyler shooting. As a convicted felon, Hawkins is prohibited from owning or possessing firearms or ammunition. Hawkins was indicted by a federal grand jury on March 17, 2021.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Tyler Police Department, the Smith County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Lucas Machicek.
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Two former officials of tiny St. Louis County municipality accused of stealing $660,000Read the Press Release
ST. LOUIS – Two former employees of the small St. Louis County city of Flordell Hills were accused in a grand jury indictment Wednesday of stealing a total of $663,000 over six years, well over the city’s typical annual budget.
Maureen Woodson, the former city clerk, and Donna Thompson, the former assistant city clerk, were each indicted on two counts of wire fraud and two counts of mail fraud.
The indictment says from roughly February 2016 to April 2022, Woodson, 68, and Thompson, 75, used two schemes to enrich themselves at the expense of the struggling city.
The pair wrote about 614 city checks to themselves totaling more than $531,000 without the authority or knowledge of Flordell Hills and its mayor, treasurer or board of aldermen, the indictment says. About 368 checks worth $376,026 were written to Woodson and 246 checks worth $155,329 were written to Thompson. The signature of the mayor and/or the treasurer, which were needed to authorize payment, were forged by the women, the indictment says.
The pair used the money to pay personal expenses and for gambling both online and at area casinos, the indictment says.
In the second scheme alleged in the indictment, Woodson and Thompson used $132,249 in city funds to directly pay personal expenses including retail vendor charges, entertainment, restaurant bills, rent for their home and taxes they owed to the Internal Revenue Service. The women either used Flordell Hills bank checks to pay the bills or used wire transfers of city money.
“The amount of money at issue in this case is stunning, particularly from a small city with so many residents below the poverty line,” said U.S. Attorney Sayler Fleming. “The loss of this money meant the city could sometimes not pay their bills,” she added.
Special Agent in Charge Jay Greenberg of the FBI St. Louis Division said, “It would be devastating for any city to have its money stolen year over year. It’s exponentially worse when an impoverished community gets fleeced by those sworn to serve it. Fighting public corruption is the FBI’s top criminal priority because such crimes undermine the community’s faith in our government.”
Each charge carries a penalty of up to 20 years in prison, a $250,000 fine, or both.
The indictment also contains a forfeiture provision seeking to recover the money.
Woodson was hired in 2010 and Thompson in 2012. Both women were terminated in May.
Flordell Hills is roughly six blocks square and has a population of about 800. Approximately 53.9% of those residents live below the poverty line, according to the U.S. Census Bureau.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the FBI. Assistant U.S. Attorney Hal Goldsmith is prosecuting the case.
Two Current Kentucky State Police Troopers and One Former Trooper Indicted for Civil Rights Violations and ConspiracyRead the Press Release
LONDON, Ky. - Two current Kentucky State Police Troopers and a former Trooper have been indicted for using excessive force on an arrestee, conspiring to cover up that excessive force, and illegally entering a home.
A federal grand jury sitting in London returned a superseding indictment charging Kentucky State Trooper Jeremy Elliotte, 28, and former Trooper Derrek Lovett, 30, with willfully depriving an arrestee of the right to be free from unreasonable force. Elliotte was also charged with willfully depriving three others of their right to be free from unreasonable searches. Michael L. Howell, 32, also a Kentucky State Trooper, was the third defendant named in the superseding indictment. He had previously been indicted in June 2022, for conspiracy and obstruction charges. The superseding indictment now charges all three with a conspiracy and with engaging in obstructive conduct with the intent to prevent communication of information to federal law enforcement relating to the possible commission of a federal offense.
The indictment alleges that Elliotte and Lovett, aiding and abetting one another and acting under color of law, assaulted a victim without legitimate law enforcement justification and that this assault resulted in bodily injury. The indictment further alleges that Howell, along with Elliotte and Lovett, conspired to conceal the true nature of the force Elliotte and Lovett used against the arrestee and the circumstances under which they used it. According to the indictment, the three defendants developed a cover story about what happened. While hoping the assault had not been recorded, the conspirators agreed upon a version that was as close as possible to what a recording would show, in case the assault had been recorded. The indictment also alleges that, on the night of the assault, Elliotte unlawfully entered a home without a warrant or other legal justification, depriving three victims living there of their right to be free from unreasonable searches.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office, announced the indictments.
The investigation preceding the indictments was conducted by the FBI. The indictment was presented to the grand jury by Assistant U.S. Attorneys Zachary Dembo and Emily Greenfield.
A date for Elliotte, Howell and Lovett to appear in court has not yet been set. Each faces up to 20 years in prison for the conspiracy and obstruction charges; Elliotte and Lovett face up to 10 years for the deprivation of rights charge related to the assault; and Elliotte faces up one year for the deprivation of rights charge related to the unlawful entry. However, any sentence following a conviction would be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which government must prove guilt beyond a reasonable doubt.
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Tukwila, WA, man who torched a car to retaliate against an informant sentenced to 7 years in prisonRead the Press Release
Seattle – A 23-year-old Tukwila, Washington, man was sentenced today in U.S. District Court in Seattle to 7 years in prison for retaliating against an informant and conspiracy to use fire to obstruct justice, announced U.S. Attorney Nick Brown. Jordan Sanchez was arrested January 20, 2021, for the November 20, 2020, fire at a Burien apartment complex. At the sentencing hearing Chief U.S. District Judge Ricardo S. Martinez noted that Sanchez… “threw a lit firebomb into a vehicle under an apartment building where many innocent people were living…. An extremely serious offense.”
“Respect for each other, and the laws and norms of our democracy, is vital to maintaining safe and healthy communities,” said U.S. Attorney Nick Brown. “Seeing the pictures of the burned-out car and the damage to the apartment building shows that Mr. Sanchez lacked both. Both the person who ordered the fire and Mr. Sanchez are being held accountable for their dangerous conduct and their efforts to subvert the rule of law and obstruct justice.”
According to records filed in the case, Sanchez was a drug customer of 30-year-old David Rosario. Rosario was arrested after selling guns and drugs to an undercover federal agent. Rosario blamed the person who introduced him to the agent and wanted to retaliate against them. Rosario offered to pay Sanchez with fentanyl pills for burning the informant’s car. In the early morning hours of November 20, 2020, Sanchez filled a beer bottle with gasoline, stuffed a t-shirt in the bottle and took it to the apartment complex in search of the informant’s convertible. Sanchez cut a hole in the roof of the car, lit the t-shirt on fire and dropped the gasoline loaded beer bottle in the car.
Burned carFortunately, one of the apartment residents smelled burning rubber and called 9-1-1. Another caller reported being trapped in the apartment complex by thick black smoke. But for King County Fire’s quick response, lives could have been lost.
As prosecutors wrote in their sentencing memo, “A King County Sheriff’s Office arson investigator believed that the fire would have spread to the complex and killed apartment residents if it had not been discovered so quickly… Sanchez risked the lives of apartment residents who were awakened by smoke and sirens and ran from their beds in the middle of the night, or, worse, were trapped in their apartment surrounded by black smoke.”
Burned car and damaged ceilingSanchez was ordered to pay $77,495 in restitution to the victims of the fire. That amount could increase if there are additional claims.
In March 2022, Sanchez pleaded guilty to obstructing justice by retaliating against an informant and conspiracy to use fire to obstruct justice.
Rosario was sentenced earlier this month to 11 years in prison for his role in the fire, and for drug and gun crimes.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the King County Sheriff’s Office, with help from the Drug Enforcement Agency (DEA).
This case was prosecuted by Assistant United States Attorney Jessica M. Manca.
Third Defendant Pleads Guilty to Involvement in Nigerian Fraud SchemeRead the Press Release
Jackson, Miss. – A third defendant in a Nigerian fraud scheme pled guilty today to conspiracy, announced U.S. Attorney Darren LaMarca and Special Agent in Charge David Denton of Homeland Security Investigations in New Orleans.
Ruth Ann Charlton, 62, of Franklinton, Louisiana, pled guilty to the conspiracy, joining two other defendants who previously pled guilty to the same conspiracy: Edafe Onoetiyi, 34, of Nigeria but living in Dallas, Texas, and Susan Johns, 54, of Bothwell, Washington.
According to court documents, the defendants conspired with each other and other individuals to defraud American citizens by transferring bank account information, personally identifiable information, and other access devices to create and transfer fraudulent loans and perpetrate other forms of theft, resulting in the fraudulent transfer of hundreds of thousands of dollars both internally within the United States as well as to locations abroad, including Canada and Nigeria. Many of the victims of the fraud were romance scheme victims, wherein fraudsters concealing their true identities duped innocent victims into either sending money or allowing the fraudsters to use their bank account to move fraudulently obtained money.
The defendants will be sentenced by U.S. District Judge David Bramlette III on November 15, 2022, at 11:00 a.m. at the federal district courthouse in Natchez, Mississippi.
These convictions are the result of a multi-year investigation conducted by Homeland Security Investigations. The U.S. Department of Justice’s Computer Crime and Intellectual Property Section assisted with preparation of the case.
Assistant United States Attorneys Erin Chalk and Andrew W. Eichner are prosecuting the case.
Texan gets max for smuggling people behind produceRead the Press Release
CORPUS CHRISTI, Texas – A 37-year-old San Benito man has been ordered to federal prison following his conviction of illegally transporting undocumented aliens within the United States, announced U.S. Attorney Jennifer B. Lowery.
Eric Mendiola pleaded guilty May 23 to smuggling 31 individuals while driving an 18-wheeler.
Today, U.S. District Judge Drew B. Tipton ordered Mendiola to serve the statutory maximum of 60 months in federal prison to be immediately followed by two years of supervised release. At the hearing, the court heard additional evidence that this is Mendiola’s third conviction for smuggling humans. In handing down the sentence, the court noted the manner in which Mendiola transported individuals.
At the time of his plea, Mendiola admitted that on March 20, Mendiola drove a tractor trailer into the Border Patrol (BP) checkpoint near Sarita. At inspection, A K-9 soon alerted authorities to the presence of concealed humans. Law enforcement opened the doors of the trailer and discovered individuals hiding behind a load of produce.
In the trailer were 31 undocumented aliens - 19 from Mexico; five, four and two from Columbia, Guatemala and El Salvador, respectively; as well as one Honduran national. All were determined to be in the United States illegally. In addition, the temperature inside the refrigerated trailer was 41 degrees Fahrenheit.
Mendiola will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with the assistance of BP. Assistant U.S. Attorney John Marck prosecuted the case.
Ten Indicted in Southeastern Massachusetts Fentanyl Trafficking ConspiracyRead the Press Release
BOSTON – Ten individuals were indicted today by a federal grand jury in Boston for their alleged involvement in a drug trafficking organization (DTO) that distributed fentanyl throughout Southeastern Massachusetts and Rhode Island. The defendants were initially arrested and charged on July 19, 2022. Approximately 14.9 kilograms of suspected fentanyl and substantial amounts of cash were seized at the time of the arrests.
According to the charging documents, in March 2021, law enforcement began investigating a DTO led by Estarlin Ortiz-Alcantara operating in Southeastern Massachusetts and Rhode Island. Intercepted communications on numerous cellphones allegedly identified Mario Rafael Dominguez-Ortiz, Yeury Francisco Garcia-Rodriguez, Rafael Cesar Cabreja Jimenez and Alfredo Valdez as members of the DTO who conspired with Ortiz-Alcantara to regularly distribute multi-kilograms of fentanyl from a base of operations at a stash house in Fall River.
The investigation also identified Rebecca Bartholomew, Edwin Collazo, Jason Cruz, Michael Pacheco and Jose Santiago as alleged regular DTO customers who re-distributed fentanyl to their own local customer bases in areas including Cape Cod, Taunton and New Bedford. As part of the conspiracy, it is alleged that members of the DTO, under Ortiz-Alcantara’s management and control, conducted drug transactions with these regular customers in public areas – including in the diaper aisle of a store and in supermarket parking lots. It is also alleged that on at least one occasion, members of the DTO transported drugs concealed in cereal boxes while accompanied by a child. Over 500 grams of suspected fentanyl was seized during the investigation through controlled purchases and drug seizures.
The following defendants were charged with conspiracy to distribute 400 grams or more of fentanyl:
- Estarlin Ortiz-Alcantara, 36, of Providence, R.I.;
- Mario Rafael Dominguez-Ortiz, 24, of Cranston, R.I.;
- Yeury Francisco Garcia-Rodriguez, a/k/a “Benjamin Osorio Pizarro,” 32, of Providence, R.I.;
- Rebecca Bartholomew, 36, of Yarmouth;
- Jose Santiago, 45, of New Bedford;
- Edwin Collazo, 26, of New Bedford;
- Jason Cruz, 41, of New Bedford;
- Michael Pacheco, 43, of Taunton;
- Rafael Cesar Cabreja Jimenez, 27, of Providence; and
- Alfredo Valdez, 44, of Providence.
The following defendants were charged with possession with intent to distribute 400 grams or more of fentanyl:
- Estarlin Ortiz-Alcantara,
- Rafael Cesar Cabreja Jimenez, and
- Alfredo Valdez, 44, of Providence.
The following defendants were charged with possession with intent to distribute fentanyl:
- Edwin Collazo, and
- Michael Pacheco.
“Today’s indictment is another step towards dismantling what we believe to be a substantial drug trafficking organization that pumped deadly fentanyl into neighborhoods throughout Southeastern Massachusetts and Rhode Island – including the Providence, New Bedford, Taunton and Cape Cod areas,” said United States Attorney Rachael S. Rollins. “My office is committed to prosecuting fentanyl traffickers to the fullest extent of the law for their deadly business. I commend our federal, state and local law enforcement partners for their outstanding investigation resulting in today’s indictment.”
“DEA is committed to investigating and dismantling Drug Trafficking Organizations and the individuals who are responsible for distributing lethal drugs like fentanyl to the citizens of Massachusetts,” said Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division. “Let these sentences be a warning to those traffickers who are distributing this poison in order to profit and destroy people’s lives. DEA’s top priority is combating the opioid epidemic by working with our local, county, state and federal partners. We won’t stop until individuals who distribute deadly drugs are brought to justice.”
The charges of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl, and possession with intent to distribute 400 grams or more of fentanyl, provide for a sentence of between 10 years and life in prison, at least five years and up to a lifetime of supervised release, and a fine of up to $10 million. The charge of possession with intent to distribute fentanyl provides for a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rollins, DEA SAC Boyle, New Bedford Police Chief Paul Oliveira and Fairhaven Police Chief Michael J. Myers made the announcement today. Special assistance was provided by the Massachusetts State Police; Homeland Security Investigations; Bristol County Sherriff’s Office; and Fall River, Taunton, Attleboro, Scituate, Yarmouth, Providence (R.I.) and West Warwick (R.I.) Police Departments. Assistant U.S. Attorney John T. Mulcahy of Rollins’ Narcotics & Money Laundering Unit is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Statement from U.S. Attorney Rachael S. Rollins Regarding Alleged Threats Made to Boston Children's HospitalRead the Press Release
“Today’s news about the alleged threats directed at Boston Children’s Hospital transgender health program is disturbing to say the least. Children deserve an opportunity to thrive and grow as their own authentic selves. Parents/guardians and health care providers who support them in that journey should be allowed to do so free of threats and harassment. I want to make it clear that the Department of Justice will ensure equal protection of transgender people under the law. As Attorney General Merrick Garland recently said, “At the Justice Department, we view confronting hate crimes as both our legal and our moral obligation.” I have made confronting hate crimes a priority of my administration, establishing a unit dedicated to the investigation and prosecution of civil rights violations. We also have worked tirelessly to send a message to hate groups that the U.S. Attorney’s Office is open for business. Our newly established hotline, 1-83-END-H8-NOW has resulted in dozens of calls and we will continue to pursue all leads. While free speech is indeed the cornerstone of our great nation, fear, intimidation and threats are not. I will not sit idly by and allow hate-based criminal activity to continue in our District.”
Statement by U.S. Attorney Breon Peace on the Passing of Former U.S. Attorney Andrew J. MaloneyRead the Press Release
“Our Office mourns the passing of Andrew J. Maloney, who nobly served as the 33rd United States Attorney for the Eastern District of New York with a passion for doing justice, a toughness honed as a boxer at West Point and Army Ranger, and supreme confidence in his prosecutors that resulted in amazing work during his tenure. Andy was an extraordinary trial lawyer, mentor, role model, and leader by example. The Office excelled under Andy’s leadership, with landmark organized crime cases that rocked the underpinnings of New York’s Mafia families, corruption prosecutions of a Brooklyn political boss and a state Assembly leader, the indictment of Colombian drug kingpin Pablo Escobar and his top hitman for conspiring to bomb an Avianca jetliner that exploded over Colombia killing 110 people, and the conviction of a prominent corporate lawyer who swindled clients out of millions of dollars. Those are just a few of the monumental cases that are Andy’s legacy. The generation of attorneys who became great prosecutors under Andy’s influence and leaders in the legal community are too numerous to name, but they, too are his legacy. We thank him for his service and immense contribution to making the Eastern District of New York the gold standard for prosecution offices in the United States.”
St. Louis man admits armed robbery of Jennings auto parts storeRead the Press Release
ST. LOUIS – A man from St. Louis on Wednesday admitted robbing an auto parts store in Jennings and crashing into a funeral procession while trying to escape police.
Diven Steed, 27, admitted robbing the O’Reilly Auto Parts store in Jennings on Dec. 5, 2020. Steed was carrying a Pioneer Arms “Hellpup” AK-47-style pistol and his co-defendant, Collis Lee, also had a pistol.
Steed and Lee took cash from store registers. Lee pistol-whipped one clerk, and the other then offered the robbers his own money to distract them. When the clerks told the robbers that they could not open the time-locked safe, Lee pistol-whipped the injured clerk a second time, Steed’s plea agreement says.
While the robbers’ attention was focused on the two clerks, a customer slipped out of the store and asked employees of another store to call 911.
When Steed and Lee left the auto parts store, witnesses pointed them out to police, who had already begun to arrive in response to the 911 call. Lee and Steed drove off, but a short time later crashed into a limousine in a three-car funeral procession transporting grieving family members to a funeral home. Five people in the limousine were injured.
Steed got out of his vehicle and ran toward some homes, refusing officers’ orders to drop his gun and presenting a danger to officers and area residents, his plea says. An officer fired twice at Steed, hitting him in the buttocks.
Lee also ran, but tripped. Police found two guns, cash and coins between the two pairs of sweatpants he was wearing.
Steed pleaded guilty in front of U.S. District Henry E. Autrey to a robbery charge and a charge of brandishing a firearm in furtherance of a violent crime. He is scheduled to be sentenced Nov. 16. The robbery charge carries a potential penalty of up to 20 years in prison and the gun charge carries a mandatory seven-year term consecutive to any other charge.
Lee, 25, of Moline Acres, pleaded guilty to the same charges in December and was sentenced in March to 11 years and three months in prison.
The St. Louis County Police Department investigated the case. Assistant U.S. Attorney Jason Dunkel is prosecuting the case.
St. Charles County man admits pandemic loan fraudRead the Press Release
ST. LOUIS – A man from O’Fallon, Missouri on Wednesday admitted fraudulently obtaining a $54,900 loan meant to aid businesses affected by the coronavirus pandemic.
David Smiley, 39, pleaded guilty in front of U.S. District Judge Ronnie L. White to a wire fraud charge. Smiley admitted that on July 8, 2020, he fraudulently sought and later obtained a $54,900 Economic Injury Disaster Loan through the federal Small Business Administration.
Smiley lied about the existence of a company, falsified that company’s gross revenue and falsely claimed that 13 employees worked there, his plea agreement says. He also listed his personal checking account as the business bank account.
Smiley admitted using the money for car payments, private school payments, to repair a Cadillac Escalade SUV and for cryptocurrency.
FBI investigators obtained and executed a seizure warrant on July 6, 2021, recovering $25,000 from Smiley’s checking account. He was indicted a month later.
The wire fraud charge carries a penalty of up to 20 years in prison, a $250,000 fine, or both. Smiley is scheduled to be sentenced Nov. 16.
The FBI investigated the case. Assistant U.S. Attorney Derek Wiseman is prosecuting the case.
South Carolina Fentanyl Trafficker Is Sentenced to 13 YearsRead the Press Release
CHARLOTTE, N.C. – A South Carolina man was sentenced to 13 years in prison today for trafficking nearly a kilogram of fentanyl, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Lawrence Robinson, 32, of Wellford, South Carolina, was also ordered to serve five years of supervised release.
According to filed documents and court proceedings, on August 3, 2020, the Charlotte Mecklenburg Police Department (CMPD) received a report that a backpack possibly containing narcotics was found at a short-term rental property in Charlotte. CMPD officers responding to the service call located the backpack which contained a substance later identified as 774.74 grams of fentanyl. The backpack also contained marijuana, ammunition, a digital scale, and other drug paraphernalia commonly used to package narcotics for distribution. Court records show that CMPD officers obtained video footage from the rental property which showed Robinson carrying various bags from his parked vehicle to the rental property, including the recovered backpack. While officers were conducting their investigation at the rental property, they observed Robinson driving by in his vehicle. The officers proceeded to conduct a traffic stop of the vehicle and Robinson was arrested at the scene. Officers executed a search warrant for Robinson’s vehicle and the rental unit, from which they recovered a loaded firearm with a round of ammunition in the chamber, $10,000 in cash, and a money counter. When investigators arrested Robinson at an apartment in Asheville on the federal arrest warrant stemming from this case, they also recovered an assault rifle and ammunition, narcotics, and more than $10,000 in cash.
On March 25, 2022, Robinson pleaded guilty to possession with intent to distribute fentanyl and marijuana.
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In a separate case, U.S. District Judge Robert J. Conrad Jr. sentenced Lynnard Fleming, 30, of Charlotte, to eight years in prison and three years of supervised release for drug and firearms offenses. Court records in this case show that on April 11, 2020, CMPD officers located a stolen vehicle parked at a residence in Charlotte and observed Fleming walking away from the car’s driver’s side. Court records show that, when Fleming saw the officers, he attempted to flee the scene. When officers caught Fleming shortly thereafter, they found a mixture containing fentanyl and heroin in his pocket. Inside the stolen vehicle from which Fleming had run, the officers seized additional mixture containing fentanyl and heroin, digital scales, an assault rifle loaded with 21 rounds of ammunition, 20 additional rounds of ammunition, a stolen loaded semiautomatic pistol, and a suppressor/barrel extender.
On March 29, 2022, Fleming pleaded guilty to possession with intent to distribute fentanyl and heroin and carrying a firearm during and in relation to, and possessing a firearm in furtherance of, a drug trafficking crime.
“Fentanyl is a killer drug. A small dose can lead to an overdose death,” said U.S. Attorney King. “From street dealers, to crooked doctors, to bulk traffickers, anyone who distributes this potentially lethal substance is a threat to public health safety and can be subject to a federal investigation and prosecution. We must and will do all we can to save lives and protect our communities from this dangerous drug,” said U.S. Attorney King.
Both Robinson and Fleming are currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons.
In making today’s announcement U.S. Attorney King commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and CMPD for their investigations into both cases and thanked the Asheville Police Department for their assistance with the investigation of Robinson.
Assistant U.S. Attorney Taylor G. Stout of the U.S. Attorney’s Office in Charlotte prosecuted both cases.
San Carlos Man Sentenced to 29 Months for AssaultRead the Press Release
PHOENIX, Ariz. – Last week, Josiah Kindelay, 26, of San Carlos, Arizona, was sentenced by United States District Judge John J. Tuchi to 29 months in prison. Kindelay previously pleaded guilty to Assault Resulting in Serious Bodily Injury.
On January 12, 2019, Kindelay, a San Carlos Apache Tribal member, was driving his car across the San Carlos Apache Indian Reservation while under the influence of alcohol. Kindelay struck the 68-year-old Native American victim as he was preparing to change his van’s flat tire on the side of the road. The victim suffered serious bodily injury including bone fractures to both legs. As a result, one of the victim’s legs had to be amputated.
The Bureau of Indian Affairs, San Carlos Investigation Unit, conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-21-00396-PHX-JJT
RELEASE NUMBER: 2022- 139_KINDELAY# # #
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.
Sacaton Man Sentenced to over 15 Years for Shooting DeathRead the Press Release
PHOENIX, Ariz. –Sage Jones, 30, of Sacaton, Arizona, was sentenced August 15, 2022, by United States District Judge Dominic W. Lanza to 188 months in prison, followed by five years of supervised release. Mr. Jones is a recognized member of the Gila River Indian Community. On March 24, 2021, Jones shot the victim multiple times, resulting in the victim’s death. Jones previously pleaded guilty on May 13, 2022, to Second Degree Murder.
The Federal Bureau of Investigation and the Gila River Police Department conducted the investigation in this case. Assistant U.S. Attorney Raynette Logan, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-21-00963-PHX-DWL
RELEASE NUMBER: 2022-138_Jones# # #
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.
Rochester Man Going to Prison for Rioting During Rochester Civil Unrest in May 2020Read the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Dyshika McFadden, 28, of Rochester, NY, who was convicted of civil disorder, was sentenced to serve 30 months in prison by U.S. District Judge Charles J. Siragusa. McFadden was also ordered to pay $4,287 in restitution.
Assistant U.S. Attorney Cassie M. Kocher, who is handling the case, stated that on May 30, 2020, McFadden participated with others in a public protest near the Public Safety Building on Exchange Street in Rochester, which turned violent and resulted in vandalism, damaged property, looting, and fires. At approximately 5:05 p.m., McFadden and others used an aerosol can and an open flame to set fire to a marked Rochester Police Department car, while it was parked in front of the Public Safety Building. The car was completely destroyed by fire. McFadden admits that he set the fire with assistance of others
The sentencing is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Rochester Police Department, under the direction of Chief David Smith; the Gates Police Department, under the direction of Chief James VanBrederode; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; the New York State Police, under the direction of Major Brian Ratajczak; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley; the Greater Rochester Area Narcotics Enforcement Team; the Rochester Fire Department, under the direction of Fire Chief Willie Jackson; and the United States Marshal’s Service, under the direction of United States Marshal Charles Salina.
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Providence Man Sentenced, Faces Deportation for Possessing Nearly 2 Kilos of CocaineRead the Press Release
PROVIDENCE – A Dominican national, who was detained moments after he claimed a package containing nearly two kilograms of cocaine shipped through the U.S. Postal Service, was sentenced on Tuesday to sixteen months in federal custody and faces deportation, announced United States Attorney Zachary A. Cunha.
Robinson Padilla-Rosario, 38, was arrested in April 2021, moments after he claimed a package at a Providence post office that U.S. Postal Inspectors and Rhode Island State Police determined contained two “bricks” of cocaine powder. The “bricks” were concealed inside a heavily wrapped package whose contents had been wrapped in duct tape, spray foamed, and wrapped again with birthday gift wrap.
According to charging documents, on April 17, 2021, two days after a Postal Service employee was unable to make a controlled delivery of the package to a Providence residence addressed to a “Jose Azcona,” Padilla-Rosario, claiming to be Azcona, retrieved the package from the post office. He was detained as he left the post office and was found to be in possession of a fake Rhode Island driver’s license bearing his photograph, the name Jose A. Azcona, and the address to which the package had been mailed.
Investigators discovered evidence on a cellphone in Padilla-Rosario’s possession that he had been using an app to communicate with a person in Puerto Rico; those communications included an image of the Postal Service redelivery slip for the package containing the cocaine.
Padilla-Rosario pleaded guilty on May 11, 2022, to possession with intent to distribute 500 grams or more of cocaine and using a communication device to facilitate the commission of a drug felony. In federal custody for approximately sixteen months since the time at which he was initially charged, Padilla Rosario was sentenced today by U.S. District Court Judge William E. Smith to time served followed by two years of federal supervised release. As Padilla Rosario was illegally present in the United States following a prior unlawful entry and voluntary departure in 2004, he has separately been taken into the custody of immigration authorities for the purpose of effecting his removal from the United States.
The case was prosecuted by Assistant U.S. Attorney Ly T. Chin.
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Pittsburgh Man Sentenced to 10 Years following Guilty Plea to Drug and Gun ChargesRead the Press Release
PITTSBURGH, PA - A local resident has pleaded guilty and been sentenced in federal court to 10 years’ imprisonment followed by a term of three years supervised release on his conviction of violating federal narcotics and firearm laws, United States Attorney Cindy K. Chung announced today.
Chief United States District Judge Mark R. Hornak imposed the sentence on Michael Champion, age 45 of Pittsburgh, Pennsylvania.
According to information presented to the court, on April 14, 2017, the Pittsburgh Bureau of Police SWAT team and narcotics detectives executed a search warrant upon Champion’s apartment. Officers seized packaged crack from the apartment and the defendant’s person, as well as drug packing material in the kitchen. Officers also seized over $6,712.00, a loaded .44 caliber revolver, an AK-47 pistol, and a sawed-off shotgun.
On August 15, 2017, law enforcement conducted a separate search during its investigation into Champion. Law enforcement learned that Champion maintained crack within his vehicle for distribution while at work in Wilkinsburg, Pa. That search resulted in the seizure of additional packaged crack and $1,295.00.
Assistant United States Attorney Brendan J. McKenna prosecuted this case on behalf of the government.
United States Attorney Chung commended the Pittsburgh Bureau of Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Champion.
Philadelphia Man Charged with Drug Trafficking OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Terrell Watson, age 33, of Philadelphia, Pennsylvania, was indicted yesterday by a federal grand jury for drug trafficking offenses.
According to United States Attorney Gerard M. Karam, the indictment charges Watson with conspiring to distribute and posses with the intent to distribute over 500 grams of methamphetamine as well as a quantity of fentanyl. Watson is also charged with two counts of distributing over 50 grams of methamphetamine and one count of distributing fentanyl within Luzerne County, all between July of 2021 and April of 2022.
The matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Luzerne County Drug Task Force, the Kingston Police Department, the Pennsylvania State Police, the Wilkes-Barre Police Department, and the Luzerne County District Attorney’s Office. Assistant United States Attorney James M. Buchanan is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
The maximum penalty under federal law for these offenses is life imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Paramount Man Sentenced to 46 Months for Participation in “Heartbreakingly Evil” Grandparent Scam RICO ConspiracyRead the Press Release
Assistant U. S. Attorney Oleksandra “Sasha” Johnson (619) 546-9769
SAN DIEGO – Jack Owuor, a resident of Paramount, California, was sentenced in federal court to 46 months in prison for participating in a large-scale “grandparent scam” racketeering conspiracy. As part of his guilty plea, Owuor admitted that he, along with seven others, participated in a criminal enterprise that engaged in extortion and fraud to swindle more than $2 million from 70-plus elderly victims across the nation. At least 10 elderly victims who resided in San Diego County lost over $300,000 to the fraud.
From approximately November 1, 2019, until October 14, 2020, the members of the criminal enterprise targeted elderly Americans, contacting them by phone and feeding them phony stories that their grandchildren were in legal trouble and needed money to pay for bail, pay medical expenses for car accident victims, or prevent additional charges from being filed. Members of the conspiracy and their associates obtained money from victims through in-person cash pick-ups, by mail or commercial carriers, or via wire transfers. Conspirators laundered the proceeds by transferring the funds or converting from fiat currency to cryptocurrency.
According to court documents, Jack Owuor personally conducted cash pick-ups from victims under the direction of co-defendant Timothy Ingram. In their phone messages, Ingram and Owuor exchanged information about the scheme, including victim names, addresses, relatives’ names, and false names and occupations for Owuor to provide to the victims. They also discussed using female mules for cash pick ups to make “it more smooth.” On one occasion, Owuor picked up $33,000 in cash from three different victims in a single day. In addition, Owuor recruited, supervised, and directed other mules to conduct pick-ups and to provide bank accounts to receive and launder the victim proceeds. Owuor was ordered to forfeit $4,300 in proceeds he personally received from the offense, and to pay $434,600 to the victims in restitution. During the hearing, U.S. District Judge Cathy Ann Bencivengo indicated that this custodial sentence will send a strong message to anyone who conspires to participate in such a “heartbreakingly evil” scheme.
This case was investigated by the San Diego Elder Justice Task Force, which is a collaboration between the U.S. Attorney’s Office, the FBI, the District Attorney’s Office and all San Diego County law enforcement agencies. The Elder Justice Task Force was established in February 2021 and is believed to be the first comprehensive law enforcement effort for this purpose anywhere in the country. The case was prosecuted by the U.S. Attorney’s Office and the Department of Justice’s Consumer Protection Branch.
“Today’s sentence, including prison time, demonstrates the gravity of the defendant’s egregious behavior to steal from the elders of our community,” said U.S. Attorney Randy Grossman. “It is despicable that these fraudsters preyed on a grandparents’ care and concern for their loved ones to line their own pockets. This important effort to bring these unscrupulous wrongdoers to justice helps protect victims and send the message that crime doesn’t pay.” Grossman commended the prosecution and law enforcement agencies who diligently pursued this case.
“Owuor and the criminal enterprise he was a part of preyed upon our elderly population, defrauding some of our most vulnerable and often most trusting citizens,” said Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office. “Today’s sentencing demonstrates the effectiveness of San Diego’s Elder Justice Task Force and the criminals we can stop when working in tandem with our local, state, and federal law enforcement partners who make up this collaborative team. This coordinated response is paramount to addressing elder fraud and the task force will continue to aggressively investigate those who operate these criminal enterprises and seek justice for the elderly victims they intend to exploit.”
As of today, five of the eight defendants charged in the case have pleaded guilty and are awaiting sentencing. Two defendants are fugitives and remain at large.
DEFENDANTS Case Number 22cr2216-CAB
Tracy Adrine Knowles 30 Orlando, Florida
Fugitive
Adonis Alexis Butler Wong 30 North Bay Village, Florida
Fugitive
Timothy Ingram, aka Bleezy 29 North Hollywood, California
In custody. Sentencing set for August 31, 2022.
Anajah Gifford 23 North Hollywood, California
In custody. Sentencing set for August 26, 2022.
Lyda Harris 74 Laveen, Arizona
Released on bond. Sentencing set for September 30, 2022.
Joaquin Lopez 46 Hollywood, Florida
Released on bond. Sentencing set for August 31, 2022
Jack Owuor 25 Paramount, California
Sentenced today to 46 months in prison.
Tracy Glinton 35 Orlando, Florida
Released on bond. Sentencing set for November 4, 2022.
SUMMARY OF CHARGES
Title 18, U.S.C., Sec. 1962(d) – Conspiracy to Conduct or Participate in an Enterprise
Through a Pattern of Racketeering Activity
Maximum penalty: Twenty years in prison and a fine of not more than the greater of twice the amount of gain or loss associated with the offense or $250,000
AGENCY
Department of Justice’s Consumer Protection Branch
San Diego Elder Justice Task Force, which includes:
San Diego FBI
San Diego County District Attorney’s Office
San Diego Police Department
San Diego Sheriff’s Department
Carlsbad Police Department
Oceanside Police Department
Escondido Police Department
Chula Vista Police Department
El Cajon Police Department
La Mesa Police Department
National City Police Department
Coronado Police Department
Nicaraguan Citizen Pleads Guilty and is Sentenced for Illegally Using Social Security Number to Obtain EmploymentRead the Press Release
NEW ORLEANS, LOUISIANA – EDGAR CRUZ-MATUTE (CRUZ-MATUTE), age 29, a citizen of Nicaragua, pled guilty and was sentenced on August 17, 2022, for illegally using a social security number to enroll in a safety class to qualify for employment, in violation of Title 42 United States Code, Section 408(a)(7)(B).
United States District Court Judge Ivan L.R. Lemelle sentenced CRUZ-MATUTE to time served and one year supervised release.
According to court documents, CRUZ-MATUTE, a citizen of Nicaragua, presented a false Social Security card when attending a pre-employment safety class at the Gulf Coast Safety Council in St. Rose, Louisiana. CRUZ-MATUTE falsely represented that a social security number was assigned to him when in fact, the social security number had been assigned by the Commissioner of Social Security to an another individual.
U.S. Attorney Duane A. Evans praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement and the Office of the Inspector General, Social Security Administration in investigating this matter. Assistant United States Attorney Julia K. Evans is in charge of the prosecution.
New York Man Sentenced to 24 Months’ Imprisonment for Scheme to Fraudulently Obtain 892 iphones from SprintRead the Press Release
WILLIAMSPORT- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Ian Keith Thompson, age 32, of New York, New York, was sentenced today to 24 months’ imprisonment to be followed by three years of supervised release by U.S. District Court Chief Judge Matthew W. Brann for conspiracy to commit mail fraud. Chief Judge Brann also ordered Thompson to pay $339,804 in restitution to Sprint.
According to United States Attorney Gerard M. Karam, Thompson and his codefendants, Horace Henry, age 44, Andrew Craig Herdsman, age 35, and George Bobb, age 38, all New York residents, devised a scheme to defraud Sprint. As part of the scheme, the conspirators fraudulently entered into cell phone service contracts using the personal identification information of 264 real persons, without those persons’ consent. In doing so, they caused the shipment of approximately 892 iPhones to Centre, Northumberland, Montour, and Mifflin Counties in the Middle District of Pennsylvania. Sprint incurred actual and attempted losses totaling in excess of $750,000. During the scheme, Thompson and his codefendants used shipment tracking numbers to determine when packages containing iPhones were scheduled for delivery. They then traveled from New York to the individual victims’ residences, and retrieved the packages at the delivery locations, or directly from delivery persons using counterfeit identification documents bearing the personal identification information of the individual victims and photos of the conspirators.
Thompson’s codefendants received the following sentences:
- Horace Henry – sentenced on February 28, 2022, to 144 months’ imprisonment followed by three years of supervised release and ordered to pay $705,803 restitution to Sprint after pleading guilty to conspiracy to commit mail fraud and aggravated identify theft;
- Andrew Craig Herdsman – sentenced on August 19, 2021, to 36 months’ imprisonment followed by three years of supervised release and ordered to pay $511,573 restitution to Sprint after pleading guilty to conspiracy to commit mail fraud and aggravated identify theft; and,
- George Bobb - sentenced on July 27, 2021, to 33 months’ imprisonment followed by three years of supervised release and $339,804 restitution to Sprint after pleading guilty to conspiracy to commit mail fraud.
The case was investigated by Homeland Security Investigation, the Pennsylvania State Police, the Pennsylvania Attorney General’s Office, the Delaware State Police, and the Spring Township Police Department, Patton Township Police Department, State College Police Department, with the cooperation and assistance of Sprint and Sprint Fraud Management. Assistant U.S. Attorney George J. Rocktashel prosecuted the case.
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New York City Man Pleads Guilty to Trafficking a Kilogram of Fentanyl to SyracuseRead the Press Release
SYRACUSE, NEW YORK – Marvin Antonio Lantigua, age 31, of New York City, pled guilty today to possessing with intent to distribute a kilogram of fentanyl, announced United States Attorney Carla B. Freedman, Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, and Syracuse Police Chief Joseph Cecile.
As part of his guilty plea today, Lantigua admitted that in early November 2021, he was in contact with a drug dealer in Syracuse via Facebook. After discussion, Lantigua agreed to deliver 1000 bricks (50,000 bags) of fentanyl from New York City to Syracuse for $75,000.00. On November 8, 2021, DEA Special Agents, Syracuse Police Detectives, and Syracuse Police Patrol Officers stopped two vehicles on the Court Street exit of Route 81 North, one of which was being driven by Lantigua. A subsequent search of one of the vehicles located two large bags that were found to contain 1007 bricks (50,350 bags) containing fentanyl that totaled approximately one kilogram in weight. After waiving his Miranda rights, Lantigua admitted that he was delivering the fentanyl to Syracuse from New York City as part of a drug deal. At the time of his arrest, Lantigua was on New York State parole in connection with a prior drug felony conviction.
Sentencing is scheduled for December 15, 2022, in Syracuse, at which time the defendant faces a maximum sentence of life and a minimum sentence of ten years in prison, a fine of up to ten million dollars, and a post-imprisonment term of supervised release of between five years and life.
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.
This case is being investigated by United States Drug Enforcement Administration (DEA) and the Syracuse Police Department-Special Investigations Division (SPD-SID), with assistance from Investigators of the Onondaga County District Attorney’s Office, Detectives of the Onondaga County Sheriff’s Office, and U.S. Border Patrol Agents, and is being prosecuted by Assistant U.S. Attorney Richard Southwick.
Money Mule Involved in A Business Email Compromise Scheme Is Sentenced to 13 Years in PrisonRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that Chukwudi Michael Okwara, 42, of Charlotte, was sentenced to 13 years in prison and three years of supervised release for his role as a money mule in a Business Email Compromise scheme. In June 2021, a federal jury convicted Okwara of multiple counts of money laundering, making a false statement to a financial institution, and aggravated identity theft.
A Business Email Compromise scheme, or BEC, is a sophisticated scam often targeting businesses involved in wire transfer payments. The fraud is carried out by compromising and/or “spoofing” legitimate business email accounts through social engineering or computer intrusion techniques, to cause employees of the victim company (or other individuals involved in legitimate business transactions) to transfer funds to accounts controlled by scammers.
According to trial evidence, witness testimony, documents filed with the court, and today’s sentencing hearing, beginning in November 2018, Okwara, who also goes by “Collins Bird” and “Larry Eugene Coleman,” used fake documents to open multiple money mule bank accounts. Money mule bank accounts are accounts used by fraudsters as a pass-through means of moving ill-gotten funds. As trial evidence established, Okwara used the money mule accounts to receive and launder the proceeds of several BEC scams totaling $2 million, perpetrated on six victim companies. The victim companies, which were located throughout the United States, were tricked into wiring large amounts of money into the bank accounts controlled by Okwara. Within days of receipt of the fraudulent wires, Okwara used false and stolen identities and conducted financial transactions in order to conceal the fraud, including making large cash withdrawals and sending wires to other bank accounts under his control.
Okwara is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King commended the investigating efforts of the U.S. Postal Inspection Service and the Charlotte-Mecklenburg Police Department.
Assistant United States Attorneys Matthew Warren and Mark T. Odulio, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Massachusetts Man Pleads Guilty to Conspiracy to Steal FirearmsRead the Press Release
CONCORD – William Guerrero, 21, of Brighton, Massachusetts pleaded guilty in federal court to conspiracy to steal firearms from a New Hampshire Federal Firearm Licensee, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, on January 23, 2022, Guerrero drove a stolen vehicle into the parking lot of Shooters Outpost, a Federal Firearm Licensee in Hooksett, New Hampshire. Surveillance footage shows Guerrero and three other men attempting to get into the store by smashing a window by the rear door. The previous day, using the same stolen vehicle, three of the four men attempted to gain access to three other Federal Firearm Licensees in New Hampshire. Following his arrest, a search of Guerrero’s telephones revealed a conversation in which he and his co-conspirators discussed breaking into gun stores.
Guerrero is scheduled to be sentenced on November 28, 2022.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Andover Police Department, the Brentwood Police Department, the Haverhill Police Department, the Lawrence Police Department, the Massachusetts State Police, the Methuen Police Department, the Milford Police Department, the New Hampshire State Police, the Rockingham County Sheriff’s Office, the Salem (NH) Police Department, the Somersworth Police Department, the Saugus Police Department, the Wellesley Police Department, and the Windham Police Department. The case is being prosecuted by Assistant U.S. Attorneys Anna Krasinski and John J. Kennedy
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Maryland Man Sentenced to 19 Years in Federal Prison for Posing as a 16-Year-Old Boy to Entice at Least Three Minor Victims to Produce Sexually Explicit Images and VideosRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Derrell Lamar Hooker Orange (“Orange”) age 37, of Brandywine, Maryland, today to 19 years in federal prison, followed by 12 years of supervised release, for enticement of a minor to produce child pornography and to possession of child pornography. Judge Hazel also ordered Orange to pay $15,000 in restitution to the victims of the offense. Orange has been detained since his guilty plea on May 13, 2022, after Judge Hazel determined that Orange was a danger to the community.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police and Sheriff Michelle Cook of the Clay County, Florida Sherriff’s Office.
“Parents should check their child’s smartphone and remind them that people may not be who they seem,” said U.S. Attorney Erek L. Barron. “This could save your child from becoming a victim. Many criminals, like Orange, take advantage of the anonymity of the internet to present themselves as something they’re not and use online messaging services to abuse children.”
“Derrell Lamar Hooker Orange’s crimes are inexcusable,” said Special Agent in Charge James C. Harris of HSI Baltimore. “He deceived and victimized three minors, and the cruelty of his actions was reflected in the severity of his prison sentence. Today he will begin to face the consequences of his crimes. HSI Baltimore is proud to have worked with our local law enforcement partners to bring Mr. Orange to justice. HSI Baltimore will continue to work to protect the law-abiding citizens of Maryland from notorious criminal elements like Mr. Orange.”
“The Clay County Sheriff’s Office is committed to doing everything in our power to combat child exploitation,” said Sheriff Michelle Cook. “I am grateful to the dedicated professionals and our law enforcement partners across the country for their tireless work to investigate and prosecute the perpetrators of these horrible crimes.”
According to his plea agreement, from at least July 2020 through October 2020, Orange, posing as a 16-year-old boy named “Lamar Thompson,” communicated with Victim 1, a 12-year-old girl living in Florida. Orange admitted that Victim 1 disclosed to him that she was in “junior high.” During their communications, Orange, using the Thompson persona, sent text messages requesting sexually explicit videos from Victim 1, including on August 29, 2020 and October 11, 2020, which Victim 1 then sent to Orange.
On March 16, 2021, law enforcement executed a search warrant at Orange’s residence and seized his iPad and iPhone. Forensic review of Orange’s devices revealed images and videos of child pornography, including sexually explicit videos of Victim 1.
As detailed in his plea agreement, Orange also communicated with three other minor victims, Victim 2, Victim 3, and Victim 4, through text messages and a secure communication application. As he did with Victim 1, Orange posed as a 16-year-old boy and requested sexually explicit images and videos from Victim 2, Victim 3, and Victim 4, which the victims sent to him. Based on the forensic analysis of his devices, Orange knew that Victims 3 and 4 were only 11 years old. In addition, on February 16, 2021, Orange sent text messages to Victim 2, who resided in Florida, indicating that he had traveled to her residence. The text messages included a screen shot of a Lyft route to the area of Victim 2’s residence, as well as a video of the apartment complex where Victim 2 lived at that time, with a text stating, “I’m outside.” Victim 2 did not meet Orange.
According to his plea agreement, Orange also participated in numerous chats using a cross-platform messaging service with enhanced encryption to transmit and receive material depicting minors, including prepubescent minors, engaged in sexually explicit conduct. For example, in a chat with another user of the messaging service in March 2021, the other user asked Orange to “Trade.” In response, Orange sent approximately 74 videos depicting minors engaged in sexually explicit conduct and received approximately 98 such videos.
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 Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Erek L. Barron commended the HSI, the Maryland State Police, and the Clay County, Florida Sheriff’s Office for their work in the investigation and thanked the Prince George’s County Police Department for its assistance. Mr. Barron thanked Assistant U.S. Attorneys Leah Grossi and Jessica C. Collins, who prosecuted the case.
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Man Charged with Making Threat to Arizona Election OfficialRead the Press Release
A Missouri man was indicted yesterday for allegedly leaving a voicemail containing a threat on the personal cell phone of an election official in the Maricopa County Recorder’s Office in Maricopa County, Arizona.
Walter Lee Hoornstra, 50, of Tecumseh, is charged with one count of communicating an interstate threat and one count of making a threatening telephone call.
“These unlawful threats of violence endanger election officials, undermine our electoral process, and threaten our democracy,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “The department’s Election Threats Task Force, working with our partners across the country, remains committed to investigating and prosecuting such illegal threats to ensure that these public servants are able to do their jobs free from intimidation.”
According to the indictment, on or about May 19, 2021, Hoornstra allegedly left the following voicemail message on the personal cell phone of the election official: “So I see you’re for fair and competent elections, that’s what it says here on your homepage for your recorder position you’re trying to fly here. But you call things unhinged and insane lies when there’s a forensic audit going on. You need to check yourself. You need to do your [expletive] job right because other people from other states are watching your ass. You [expletive] renege on this deal or give them any more troubles, your ass will never make it to your next little board meeting.”
“The FBI is committed to vigorously investigating and holding accountable anyone who threatens election workers,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “These public servants protect our fundamental right to vote by administering fair and free elections. Any attempts to interfere with our elections by intimidating election officials, their staffs, and volunteers with threats of violence will not be tolerated.”
If convicted, Hoornstra faces up to five years in prison for making a threatening interstate communication and up to two years in prison for making a threatening telephone call. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
FBI Phoenix is investigating the case.
Trial Attorney Tanya Senanayake of the Criminal Division’s Public Integrity Section is prosecuting the case.
Substantial assistance was provided by the U.S. Attorney’s Office for the District of Arizona and the U.S. Attorney’s Office for the Western District of Missouri.
This case is part of the Justice Department’s Election Threats Task Force. Announced by Attorney General Merrick B. Garland and launched by Deputy Attorney General Lisa O. Monaco in June 2021, the Task Force has led the department’s efforts to address threats of violence against election workers, and to ensure that all election workers — whether elected, appointed, or volunteer — are able to do their jobs free from threats and intimidation. The Task Force engages with the election community and state and local law enforcement to assess allegations and reports of threats against election workers, and has investigated and prosecuted these matters where appropriate, in partnership with FBI field offices and U.S. Attorneys’ Offices throughout the country. A year after its formation, the Task Force is continuing this work and supporting the United States Attorneys’ Offices and FBI Field Offices nationwide as they carry on the critical work that the Task Force has begun.
Under the leadership of Deputy Attorney General Monaco, the Task Force is led by the Criminal Division’s Public Integrity Section and includes several other entities within the Department of Justice, including the Computer Crime and Intellectual Property Section of the Criminal Division, the Civil Rights Division, the National Security Division, and the FBI, as well as key interagency partners, such as the Department of Homeland Security and the U.S. Postal Inspection Service. For more information regarding the Justice Department’s efforts to combat threats against election workers, read the Deputy Attorney General’s memo.
To report suspected threats or violent acts, contact your local FBI office and request to speak with the Election Crimes Coordinator. Contact information for every FBI field office may be found here: https://www.fbi.gov/contact-us/field-offices/. You may also contact the FBI at 1-800-CALL-FBI (225-5324) or file an online complaint at: tips.fbi.gov. Complaints submitted will be reviewed by the task force and referred for investigation or response accordingly. If someone is in imminent danger or risk of harm, contact 911 or your local police immediately.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law
Lexington Park Woman Convicted for Her Participation in a Conspiracy to Fraudulently Obtain Military Disability BenefitsRead the Press Release
Greenbelt, Maryland – A federal jury convicted Mary Francis Biggs, age 65, of Lexington Park, Maryland, late on August 15, 2022, for conspiracy to commit theft of government property and for theft of government property in connection with a scheme to fraudulently obtain additional military disability benefits for her husband from the United States Department of Veterans Affairs (VA). As a result of the fraud scheme, from 2016 through 2019, Biggs and her husband received over $170,000 in disability benefits and early retirement pay to which they were not entitled.
The conviction was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Kim R. Lampkins, U.S. Department of Veterans Affairs (VA) Office of Inspector General (OIG), Mid-Atlantic Field Office; and Special Agent in Charge Michael McGill of the Social Security Administration - Office of Inspector General (SSA-OIG), Philadelphia Field Division.
According to the evidence presented at Biggs’ six-day trial, Biggs participated in a conspiracy organized by her daughter, Angela Farr, in which false and fraudulent documents were submitted to the VA in support of disability claims in the name of Individual 1, who was Biggs’ husband and Farr’s father. The fraudulent documents stated that Individual 1 was homebound and required full-time assistance for basic tasks such as eating, bathing, and dressing. In fact, Individual 1 lived an ordinary, active life. For at least some of the time, Biggs and Farr concealed their fraud from Individual 1.
According to trial evidence, Individual 1 was a member of the United States Navy from January 29, 1974 to January 31, 1997. The evidence proved that Individual 1 received a 100% service-connected disability rating by the VA, and Special Monthly Compensation (SMC), based on fraudulent documentation submitted as part of the conspiracy. On approximately July 5, 2017, the VA determined, based on fraudulent documentation, that Individual 1 was not capable of managing his finances because of his purported disabilities, and appointed Biggs as Individual 1’s fiduciary. As such, Biggs was responsible for the receipt and expenditure of Individual 1’s fraudulently obtained VA benefits funds. During this time, Individual 1 was employed as a civilian employee of the Navy, supervising a logistics unit of 25 people.
Specifically, Biggs and Farr conspired to exaggerate Individual 1’s claims, which involved the submission of fraudulent and fictitious medical documents. Biggs and Farr also conspired to conceal from VA the fact that Individual 1 was working, and as part of a VA field interview on September 13, 2017, Biggs did not disclose the fact that Individual 1was employed and completed a form stating that Individual 1 had no employment income. Biggs spent the fraudulently received disability compensation payments on daily living expenses, cruise vacations, and a kitchen renovation, even though she was aware that her husband was not entitled to the payments. Biggs and her husband received more than $170,000 in VA benefits to which he was not entitled.
Farr and her husband at the time, Michael Pace, fraudulently obtained disability benefits for themselves in the same way. Pace received the highest amount of disability compensation and SMC paid by VA. In addition, Pace received a Caregiver Assistance stipend of more than $2,500 per month, for purportedly serving as Farr’s caregiver, despite claiming to be completely disabled himself and unable to use his arms and legs. Farr fraudulently obtained disability benefits from the VA and from the Social Security Administration. In total, Farr received approximately $440,085 in VA benefits to which she was not entitled, and approximately $35,666 in Social Security benefit payments to which she was not entitled, resulting in a loss to the United States of $475,751 just on Farr’s claims alone. Pace received $370,912 in VA benefits to which he was not entitled.
Angela Marie Farr, age 36, and Farr’s ex-husband Michael Vincent Pace, age 42, both of Leonardtown, Maryland previously pleaded guilty to their roles in the conspiracy and are awaiting sentencing.
Biggs faces a maximum sentence of five years in federal prison for the conspiracy and a maximum of 10 years in federal prison for theft of government property. U.S. District Judge Paula Xinis has not yet scheduled sentencing.
United States Attorney Erek L. Barron commended the VA OIG and SSA OIG for their work in the investigation. Mr. Barron thanked Special Assistant U.S. Attorney Michael F. Davio and Assistant U.S. Attorney Coreen Mao, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources to report fraud, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud.
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LaPlace Man Sentenced for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LA – United States District Judge Mary Ann Vial Lemmon sentenced OCTAVIUS NARCISSE, age 54, a resident of LaPlace, Louisiana, on August 11, 2022, to 37 months in the Bureau of Prisons for: 1)possession with the intent to distribute a quantity of a mixture and substance containing a quantity of N-phenyl-N-[1-(2-phenylethyl)-4-piperidinyl] (fentanyl) and cocaine hydrochloride pursuant to 21 U.S.C §841(a)(1), 21 U.S.C. §841(b)(1)(C), and 18 U.S.C. § 2; and 2) knowingly and intentionally using a telephone in committing, causing, and facilitating the commission of the possession with intent to distribute pursuant to 21 U.S.C. §843(b) and 18 U.S.C. §2 announced U.S. Attorney Duane A. Evans.
According to court documents, in April 2019, NARCISSE was stopped and arrested by law enforcement shortly after picking up 1.015 kilograms of N-phenyl-N-[1-(2-phenylethyl)-4-piperidinyl] propenamide (fentanyl) and 4.995 kilograms of cocaine hydrocholoride on behalf of co-conspirator, Ellis Batiste, Sr.
During the investigation, law enforcement seized over 15 kilograms of cocaine hydrochloride and over 1 kilogram of fentanyl. The majority of these controlled substanceswere being transported from Houston, Texas into the Eastern District of Louisiana.
NARCISSE’s sentence will be followed by three (3) years of supervised release. Judge Lemmon also ordered that NARCISSE pay a $100 mandatory special assessment fee for each count.
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.
The case was investigated by the United States Drug Enforcement Administration and the Saint John the Baptist Sheriff’s Office. Assistant United States Attorney Christopher Usher prosecuted the matter.
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Kodiak Man Sentenced to 18 Years in Federal Prison for SextortionRead the Press Release
ANCHORAGE – A Kodiak man was sentenced by U.S. District Judge Ralph R. Beistline to 18 years in federal prison followed by a lifetime of supervised release for the production of child pornography. He was also ordered to pay $13,390 in restitution.
According to court documents, Vince Deliguin, 20, created a fake social media profile for a young woman which he dubbed “Marley Madden” and used it to contact the minor victim in April 2021. Posing as “Marley” Deliguin instructed the victim to send nude photos. Believing “Marley” to be a real person, the victim sent the photos. A short time later, “Marley” told the victim to meet her at a park. When the victim tried to decline, “Marley” threatened to release the photos to the victim’s family and friends. Giving in to the pressure, the minor victim went to the park where he found Deliguin waiting for him. The victim recognized Deliguin because he had recently graduated from the minor victim’s high school. Deliguin then blackmailed the minor victim into engaging in oral sex on three separate occasions, video recorded each of the three acts and attempted to blackmail the minor victim into engaging in sex a fourth time when the victim reported it to authorities.
Deliguin was arrested in May 2021 on State charges and indicted on three federal charges in November 2021. He pleaded guilty to one count of production of child pornography in February 2022.
“The pursuit of individuals who sexually exploit children and produce child pornography is one of our highest priorities,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “Deliguin’s relentless, aggressive and threatening behavior in victimizing an innocent youth in Kodiak is disturbing and caused significant emotional harm. We recognize the courage it takes for a minor victim to report sexual abuse to authorities. Because of this brave young victim, the perpetrator was brought to justice, making our communities and children safer.”
“Through coercion, Deliguin used extortion or ‘sextortion’ as a means to perpetuate a horrible cycle of child sexual exploitation and abuse, which caused significant harm to the child and the child’s family,” said Special Agent in Charge Antony Jung of the FBI Anchorage Field Office. “Together with our law enforcement partners, the FBI is fully committed to protecting Alaska’s youth from child sexual exploitation crimes carried out by online predators like Deliguin, who will now spend the next 18 years in federal prison.”
“The Alaska State Troopers will work relentlessly to hold accountable anyone that victimizes Alaska’s youth,” said Major David Hanson, Deputy Director of the Alaska State Troopers. “Your Alaska State Troopers are constantly working with our local, state, and federal law enforcement partners to detect, investigate, and prosecute crimes against children. This case highlights these critical partnerships and our unified commitment.”
The FBI, Alaska State Troopers and the Kodiak Police Department investigated the case.
Assistant U.S. Attorney Michael Ebell prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Justice Department to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit: www.justice.gov/psc. It was also brought as part of the Rural Alaska Anti-Violence Enforcement Network (RAAVEN) initiative to increase engagement, coordination and action on public safety in Alaska Native communities.
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Resources:
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at 1-800-CALL-FBI (1-800-225-5324) or submit a tip online at www.tips.fbi.gov.
To learn more about sextortion including what kids and teens need to know as well as what caregivers need to know click here: https://www.fbi.gov/scams-and-safety/common-scams-and-crimes/sextortion
Kansas Man Indicted for Fentanyl TraffickingRead the Press Release
SPRINGFIELD, Mo. – A Pittsburg, Kansas, man who led Kansas authorities on a motorcycle chase before being apprehended in Missouri has been indicted by a federal grand jury for possessing fentanyl to distribute.
Justin T. Lapping, 47, was charged in an indictment returned by a federal grand jury in Springfield on Tuesday, Aug. 16, with one count of possessing fentanyl with the intent to distribute.
A Crawford County, Kan., sheriff’s deputy attempted to stop Lapping on Aug. 9, 2022, but he fled on his motorcycle. Soon after entering Barton County, Mo., on Highway 160, Lapping abandoned his motorcycle and fled on foot from law enforcement officers. Officers deployed tasers and Lapping was taken into custody. He was allegedly carrying a Ziploc baggie that contained approximately 202 grams of cocaine and fentanyl.
According to the indictment, Lapping has a prior serious drug felony conviction in Taney County, Mo., which would qualify for a mandatory minimum sentence of 10 years in federal prison without parole.
The charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jessica R. Eatmon. It was investigated by the FBI, the Barton County, Mo., Sheriff’s Department, and the Crawford County, Kan., Sheriff’s Department.
Organized Crime and Drug Enforcement Task Force
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
KC Man Pleads Guilty to Falsely Claiming to Hire Ex-Cons for Non-profit AgencyRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man who operates a non-profit agency has pleaded guilty in federal court to falsely claiming to employ convicted felons who were on federal court supervised release.
Michael A. Green, 51, pleaded guilty before U.S. District Judge Greg Kays on Tuesday, Aug. 16, to one count of transferring a false identification document and one count of making false statements to a federal probation officer.
By pleading guilty, Green admitted that he told a federal probation officer on May 6, 2019, that Kansas City Community Source, Inc., a non-profit corporation operated by Green, had hired the probation officer’s supervisee. Kansas City Community Source purports to employ convicted felons after release from incarceration. Various individuals under court-ordered supervision reported Kansas City Community Source as their employer in order to fulfill their employment obligations. Green’s statements to the probation officer were false. The supervisee was never employed by Green or by Kansas City Community Source. Instead, Green created false pay stubs for a fee.
Green also admitted that he sold fake pay stubs to an individual for $50 each on Oct. 16, 2019. The individual wanted the fake pay stubs in order to rent an apartment. Green also sold a false Texas driver’s license to the same individual for $800.
Under federal statutes, Green is subject to a sentence of up to 20 years 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 defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Matthew Blackwood. It was investigated by IRS-Criminal Investigation and the Kansas City, Mo., Police Department.
Jury convicts Washington man of trafficking meth, fentanyl in Great Falls and Rocky Boy’s Indian ReservationRead the Press Release
GREAT FALLS — A federal jury today convicted a Washington man of drug trafficking charges after he was accused of bringing methamphetamine and fentanyl to Great Falls and the Rocky Boy’s Indian Reservation for distribution, U.S. Attorney Jesse Laslovich said.
After a two-day trial that began on Aug. 16, the jury found Aaron Ramirez Espinoza, 37, of Yakima, Washington, guilty of conspiracy to distribute and to possess with intent to distribute controlled substances and possession with intent to distribute controlled substances as charged in a superseding indictment. Espinoza faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris set sentencing for Dec. 1. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Espinoza remains detained pending further proceedings.
“Removing from our streets drug traffickers like Espinoza who poison our communities with these highly addictive and dangerous drugs continues to be a top priority for our office and our law enforcement partners. I want to thank Assistant U.S. Attorney Ethan R. Plaut, along with the FBI, Russell Country Drug Task Force and Great Falls Police Department for their diligent work on this case,” U.S. Attorney Laslovich said.
In court documents and at trial, the government alleged that in May 2021, law enforcement seized fentanyl pills from a witness, who identified his suppliers as a group of men from Yakima. The investigation led to Espinoza being identified as a member of this group. Law enforcement further learned that Espinoza was bringing drugs to Montana for distribution. On May 12, 2022, officers arrested Espinoza at a Great Falls business’ gas station, searched him and found in his jacket pocket a pouch containing a bag of meth and two bags of fentanyl pills. Officers also located a scale, a number of credit cards and a Washington identification card. Espinoza told law enforcement he was in a gang in Washington and that the drugs recovered were for personal use. However, Espinoza later said he had been going to meet someone at the business but that they never showed up and that he was “trying to make a living.”
Assistant U.S. Attorney Ethan R. Plaut is prosecuting the case, which was investigated by the FBI, Russell Country Drug Task Force and Great Falls Police Department.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Jackson Man Sentenced for Wire Fraud Scheme Designed to Fraudulently Obtain GI Bill Funds from the U.S. Department of Veterans AffairsRead the Press Release
Jackson, Miss. – A Jackson man was sentenced to serve one year and one day in prison followed by three years of supervised release and ordered to pay over $402,000 in restitution to the U.S. Department of Veterans Affairs for perpetrating a wire fraud scheme to steal federal funds, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jeffrey Breen with the U.S. Department of Veterans Affairs Office of Inspector General.
Anthony Kelley, 60, of Jackson, was sentenced today in U.S. District Court in Jackson.
Kelley owns Trendsetters Barber College in Jackson, Mississippi. Trendsetters was certified by the VA and Mississippi’s State Approving Agency to offer courses which would be covered by GI Bill benefits for veterans enrolled in the school’s programs. Beginning at least as early as October 2016 and continuing through March 2019, Kelley offered a Master Barber course that was not an accredited course of study approved by the state’s Board of Barber Examiners. Kelley fraudulently represented that this course was an approved course of study and as a result was allowed to collect GI Bill money from veterans enrolled in the program. At least two veterans were enrolled in the Master Barber program using their GI Bill benefits and, as a result, the VA made interstate wire transfers of federal funds to Kelley based on his fraudulent representations.
An information was filed against Kelley on April 22, 2021. Kelley pled guilty to two counts of wire fraud on May 20, 2021.
The Department of Veterans Affairs Office of Inspector General investigated the case.
The case was prosecuted by Assistant United States Attorney Andrew W. Eichner.
Investment Scam Ringleader Pleads Guilty After Being Recorded Paying Cash Kickbacks at Boca Raton StarbucksRead the Press Release
Miami, Florida – Paul Geraci, 45, of Parkland, Florida, pleaded guilty today for his role in a large investment scheme in which he and others defrauded investors out of approximately $21 million by falsely claiming that investors’ money would go towards the development of a lucrative mobile gaming app that, in reality, never launched and generated no revenue during the scheme.
Juan Antonio Gonzalez, United States Attorney, Southern District of Florida, and Robert DeWitt, Acting Special Agent in Charge, FBI Miami Field Office, made the announcement.
Geraci pleaded guilty to conspiring to commit mail fraud and wire fraud, in violation of 18 U.S.C. § 1349. He faces a maximum term of 20 years’ imprisonment. The United States is pursuing forfeiture of Geraci’s home and under the terms of his plea agreement, Geraci must pay a forfeiture money judgment amount of approximately $1.2 million.
Geraci is the fifth defendant in the scam to plead guilty:
- Michael Assenza, a/k/a “Michael Grimaldi”, 44, of Boca Raton, Florida, the former Director of Technology at Social Voucher pleaded guilty and was sentenced to 52 months’ imprisonment on August 11, 2022;
- Ted Romeo, a/k/a “Ted Lamar”, 62, of Pompano Beach, Florida, an employee of Geraci’s boiler room who solicited Social Voucher investors, pleaded guilty and is scheduled to be sentenced on August 26, 2022;
- Paul Vandivier a/k/a “Doug Wright”, 61, of West Palm Beach, Florida, who operated a boiler room that solicited Social Voucher investors, pleaded guilty and is scheduled to be sentenced on October 7, 2022;
- Cindy Vandivier a/k/a “Madison Brooke” a/k/a “Madison Brookes”, 64, of West Palm Beach, Florida, who helped her husband operate a boiler room that solicited Social Voucher investors, pleaded guilty and is scheduled to be sentenced on October 7, 2022.
Gerald Parker, 78, of Juno Beach, Florida, the former Chief Executive Officer of Social Voucher, is still awaiting trial, currently scheduled for September 27, 2022. The case is assigned to United States District Judge Rodney Smith in Fort Lauderdale, Florida.
Geraci admitted in plea documents that, from the fall of 2016 until December 2018, he used Pinnacle Atlantic to fraudulently sell stock in a Florida company called Social Voucher.com, Inc. (“Social Voucher”) that was later referred to as Stocket, Inc. (“Stocket”). Geraci admitted that he and others at Pinnacle Atlantic took commissions as large as 50 percent of the investment, a fact that was not disclosed to investors. According to Geraci’s plea documents, he paid co-defendant Ted Romeo in cash to pitch Social Voucher stock even though Ted Romeo had a civil judgment against him (a fact that was, again, not disclosed to investors). Geraci also admitted that he knew the Social Voucher stock offering was not registered with the Securities and Exchange Commission or state regulators. According to Geraci’s plea agreement, he caused between $1.5 and $3.5 million in loss to the investors.
According to court filings by the Government, Geraci was recorded several times during the scheme. For example, Geraci was recorded pitching Social Voucher stock to an undercover FBI agent posing as an investor, telling the FBI agent on the recording that his investment money was “all for programming and software and so and so.” In reality, the FBI agent invested $50,000 in undercover funds and half the money went into Geraci’s pocket. Geraci was also recorded paying cash kickbacks at a Boca Raton Starbucks to a man he knew was under a federal fraud indictment in Detroit, in exchange for securing investors. Geraci was recorded explaining to this Detroit fraudster that he wouldn’t disclose the kickbacks to the fraudster on tax returns and that is what he did for his employees “with these special backgrounds.”
After the FBI executed a search warrant at the Social Voucher office in June 2018, investors sued the company, and the court granted the investors’ request to appoint a receiver to take over management of the company. See David Goerz, et al. v. Social Voucher, Case No. 50-2018-CA-011965, pending in the Circuit Court of the 15th Judicial District in Palm Beach County, Florida.
U.S. Attorney Gonzalez commended the investigative efforts of the FBI’s Miami Field Office and their extensive work on this case, work that included numerous undercover recordings and multiple search warrants. This case is being prosecuted by Assistant U.S. Attorneys Elizabeth Young and Will Rosenzweig. Assistant U.S. Attorney Emily Stone is handling asset forfeiture related to the matter.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-60101.
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Human smuggler imprisoned for lying about load of watermelonsRead the Press Release
CORPUS CHRISTI, Texas – A 54-year-old man has been ordered to federal prison for transporting illegal aliens in a tractor trailer, announced U.S. Attorney Jennifer B. Lowery.
A federal jury convicted Jose Luis Gutierrez-Plascencia, of Chicago, Illinois, May 17, following a two-day trial and 90 minutes of deliberation.
Today, U.S. District Judge David S. Morales ordered Gutierrez-Plascencia to serve 24 months in federal prison to be immediately followed by two years of supervised release. In handing down the sentence, the court noted Gutierrez-Plascencia had been caught with aliens in the cab of a tractor just one month before the incident for which he was found guilty. Several of the aliens in the trailer were also locked in with no way to communicate in the event of an emergency.
On Sept. 17, 2020, Jose Luis Gutierrez-Plascencia entered the Border Patrol (BP) checkpoint near Sarita while driving a white Freightliner commercial tractor and pulling an enclosed trailer. At trial, the jury heard testimony that Gutierrez-Plascencia had told authorities he was hauling a load of watermelons to Chicago. Law enforcement testified that he had displayed nervous behavior and answered questions rapidly.
The jury also saw an X-ray scan conducted at the scene that revealed anomalies – human bodies. Law enforcement had physically searched the vehicle and also discovered four aliens hiding in the cab of the tractor. Upon further inspection, they unlocked the trailer, with a key from Gutierrez-Plascencia’s keychain, and found three more individuals lying down inside the trailer. There were no watermelons in the vehicle.
It was later determined that the total of seven non-U.S. citizens were illegally present in the country. Two of the seven testified at trial and identified Gutierrez-Plascencia as the driver.
Gutierrez-Plascencia was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
BP conducted the investigation. Assistant U.S. Attorneys Joel Dunn and Ashley Martin prosecuted case.
Haughton Man Convicted of Possessing a Firearm While in the United States IllegallyRead the Press Release
SHREVEPORT, La. - United States Attorney Brandon B. Brown announced that Evaristo Contreras-Silva, 49, of Haughton, Louisiana, has been found guilty by a jury in United States District Court in Shreveport of possession of a firearm by an illegal alien. The jury returned the guilty verdict yesterday afternoon. United States District Judge Elizabeth E. Foote presided over the two-day trial.
Contreras-Silva was indicted on March 9, 2022 for illegally possessing a firearm while residing illegally in the United States. The facts at trial established that Contreras-Silva, a citizen of Mexico, entered the United States on a date unknown, but the Bossier Parish Sheriff’s Office encountered him in Haughton, Louisiana in February 2022 when it arrested Contreras-Silva for domestic abuse battery of a pregnant victim. The Bossier Parish Sheriff’s Office notified the Department of Homeland Security and the Bureau of Alcohol, Tobacco, Firearms, and Explosives that it had arrested Contreras-Silva and that it believed he had a firearm in his truck. After that, federal agents searched Contreras-Silva’s truck and residence, discovering a loaded 9mm pistol and multiple rounds of 5.56 ammunition.
Contreras-Silva faces a maximum sentence of 10 years in prison, and a fine of up to $250,000. Sentencing has been set for December 13, 2022 at 9:30 a.m.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Department of Homeland Security – Immigration and Customs Enforcement, and Bossier Parish Sheriff’s Office and is being prosecuted by Assistant U.S. Attorneys Leon H. Whitten and William Gaskins.
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Hattiesburg Man Sentenced to over 12 Years in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
Hattiesburg, Miss. – A Hattiesburg man was sentenced to 151 months in federal prison and 5 years of supervised release for conspiracy to possess with intent to distribute methamphetamine, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Brad L. Byerley of the Drug Enforcement Administration.
According to court documents, in April of 2020, DEA agents intercepted communications of Christopher Roberts, 41, of Hattiesburg, Mississippi, and his co-defendants conspiring to distribute methamphetamine. This led to the seizure of 3 pounds of 98% pure methamphetamine.
In addition to the prison sentence, Roberts was ordered to pay a $5,000 fine.
The case is the result of an extensive investigation, dubbed “Don’t Tell On Me Bro,” which began as an operation targeting illegal drug trafficking in the Hattiesburg, Mississippi area. “Don’t Tell On Me Bro” 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.
The case was investigated by the Drug Enforcement Administration, Lamar County Sheriff’s Office, the Mississippi Bureau of Narcotics, Hattiesburg Police Department, Forrest County Sheriff’s Office, and the Columbia Police Department. It was prosecuted by Assistant United States Attorney Keesha Middleton.
Guilty Verdict in Athens Trial Resulting from Federal Investigation into Armed Career Criminals Trafficking Firearms, Controlled SubstancesRead the Press Release
ATHENS, Ga. – An Athens resident with a lengthy criminal history was found guilty by a federal jury yesterday evening of multiple charges related to an FBI Middle Georgia Safe Streets Gang Task Force undercover operation into illegal gun and drug trafficking. His conviction follows a co-defendant entering a guilty plea last week in this case.
Robert Booker Sr., 44, of Atlanta, Georgia, was convicted of possession of a firearm by a convicted felon, possession of a firearm in furtherance of a drug trafficking crime, possession with intent to distribute methamphetamine, possession with intent to distribute alprazolam, possession with intent to distribute oxycodone and possession with intent to distribute marijuana. The verdict was reached following a two-day trial that began on Monday, Aug. 15 before U.S. District Judge C. Ashley Royal. Booker is an Armed Career Criminal and a Career Offender and faces a maximum lifetime of imprisonment for his crimes. Peter Deandra Lawrence, 47, of Athens, pleaded guilty to illegal possession of a firearm on Aug. 11; as an Armed Career Criminal and a Career Offender, Lawrence faces a minimum of 15 years up to a maximum lifetime in prison for his crime. Co-defendant Gerrick Lanier Cooper, 47, of Watkinsville, Georgia, pleaded guilty to distribution of cocaine on May 11. Cooper faces a maximum of 20 years in prison to be followed by at least three years of supervised release and a $1,000,000 fine. Sentencing for these defendants has not been scheduled.
“Armed Career Criminals trafficking weapons and dangerous controlled substances will be held accountable at the federal level for crimes that undermine the safety of our communities,” said U.S. Attorney Peter D. Leary. “Our office is working alongside federal, state and local law enforcement to bring the most violent and repeat offenders to justice for their continued criminal activities.”
“Booker refused to learn from his past mistakes and continued to possess firearms and illegal drugs. Now that a jury has passed judgement, our citizens will be safer while he spends significant time in prison,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI is proud to work with our partners in the Middle Georgia Safe Streets Gang Task Force to remove career criminals from our streets.”
According to court documents and evidence presented at trial, the case began when two FBI confidential informants (CI) purchased a .22 caliber rifle from Lawrence in Watkinsville, Georgia, on Aug. 17, 2016. Lawrence negotiated the purchase of the firearm with Cooper over his cellphone in the presence of the informants and retrieved the firearm from Cooper to give to the CIs at the close of the deal. Lawrence has previously been convicted of aggravated battery, burglary and possession with intent to distribute cocaine base in both state and federal courts; it is illegal for a convicted felon to possess a firearm. Cooper admitted that he sold various quantities of cocaine to the CIs on three separate occasions in Jan. 2017 at his Athens residence. Cooper, a convicted felon with a prior federal conviction for possessing with intent to distribute a controlled substance, was indicted in this case on July 14, 2020, and a firearm was retrieved at this home when agents executed a search warrant.
On Sept. 22, 2019, a GSP trooper stopped a vehicle with Lawrence driving and Booker in the front passenger seat. Lawrence was driving on a suspended license with an outstanding warrant for his arrest from Athens-Clarke County. As the trooper was dealing with Lawrence, Booker attempted to hide a large quantity of methamphetamine and alprazolam under the vehicle. The drugs under the vehicle were noticed and seized by the trooper. A search of the vehicle resulted in the seizure of approximately two pounds of marijuana, oxycodone packaged for illegal distribution and a pistol in the glovebox. Booker has a lengthy criminal history, which includes convictions for obstruction of an officer and three prior serious drug offenses.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The case was investigated by the FBI Middle Georgia Safe Streets Gang Task Force with assistance from Athens-Clarke County Police Department, Walton County Sheriff’s Office, Georgia State Patrol (GSP) and Georgia Bureau of Investigations (GBI).
Assistant U.S. Attorneys Mike Morrison and Tamara Jarrett are prosecuting the case.
Grand Jury Indicts Two Men on Multiple Charges for Defrauding Dozens of Victims Out of Millions of DollarsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced that a federal grand jury has returned an indictment charging Darin R. Pastor, 51, currently of Morristown, NY, and Halford W. Johnson, 59, of Brockport, NY, with conspiracy to commit wire fraud and securities fraud, securities fraud, and wire fraud. The charges carry a maximum penalty of 25 years in prison. Additionally, Pastor is charged with engaging in monetary transactions with criminally derived property and conspiracy to defraud the United States.
Assistant U.S. Attorney Paul E. Bonanno, who is handling the case, stated that in September 2013, Pastor obtained ownership and control of a publicly traded company named Creative App Solutions, Inc., whose stock was registered with the United States Securities and Exchange Commission. After becoming CEO of Creative App Solutions, Pastor changed the company’s name to Capstone Financial Group, Inc. On September 25, 2013, Johnson was appointed Chief Financial Officer of Capstone.
From September 2013, through March 2017, approximately 95 investors purchased Capstone stock in private placement offerings for approximately $19,000,000. During that time, in furtherance of the conspiracy, Pastor and Johnson fraudulently represented to investors and potential investors that Pastor had substantial personal wealth, and that Capstone was engaged in lucrative investments, such as gold, equity, and livestock deals, which would generate enormous profits for the investors. Pastor and Johnson maintained an online Wikipedia page for Pastor that misrepresented his net worth, and in soliciting investments in Capstone, encouraged potential investors to research Pastor online. Pastor actually had a negligible net worth and was millions of dollars in debt.
While investors believed their money would be used to fund Capstone’s business deals, millions of dollars were used to pay for Pastor’s personal expenses and to fund a lavish lifestyle for himself and his wife, which included:
• $1.5 million to purchase a house in Clarence, New York; • $738,000 to purchase a house in Florida for a relative of Pastor; • $294,640 for jewelry; • $118,000 for Pastor’s 2013 destination wedding in St. Barts; • $95,000 for furniture for Pastor’s rented home in California; • $57,000 for clothing from a high-end men’s clothing store in Amherst, NY; • $56,000 for child support payments to Pastor’s ex-wife; • $55,000 for tooth veneers for Pastor and his wife; and
• $52,000 for motor vehicles.In addition, in April 2017, Capstone offered to buy back shares of Capstone stock from its investors. Pastor and Johnson represented to investors that if they sold their Capstone shares back to the company, Capstone would pay them at least four times the amount the investors had paid for the stock by December 31, 2017. Approximately 94 investors accepted the stock buyback offer and returned their Capstone stock to Capstone. None of the investors who accepted the stock buyback offer received payment from Capstone by the December 31, 2017 deadline. Between February and April 2018, Capstone made partial payments to investors, who never received the full amounts Capstone promised to pay them pursuant to the stock buyback agreements.
Pastor and Johnson were arraigned by U.S. Magistrate Judge Michael J. Roemer and released on conditions.
The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia and the and the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-In-Charge Thomas Fattorusso.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Grand Jury - August 2022Read the Press Release
Acting United States Attorney Steven Russell announced the federal Grand Jury for the District of Nebraska has returned 14 unsealed Indictments charging 16 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Alejandro Alcantar-Mascote, a/k/a Alejandro Alcantar, a/k/a Alejandro Mascote, age 40, is charged with illegal reentry of a removed alien after having been convicted of a felony on or about March 8, 2022. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Massey Allen, age 41, of Omaha, is charged with distribution of 50 grams or more of methamphetamine (mixture) on or about July 7, 2022. The penalty if convicted is not less than 5 years’ and up to a 40 years’ imprisonment, a $5,000,000 fine, not less than four-years and up to a life term of supervised release, and a $100 special assessment.
* Mark A. Barraza Saenz, age 21, and Melecio Meza Salamanca, age 27, are charged in a four-count Indictment. Count I charges Barraza Saenz and Meza Salamanca with possession with intent to distribute 50 grams or more of methamphetamine (mixture) on or about October 12, 2021. The penalty if convicted is not less than 5 years’ and up to 40 years’ imprisonment, a $5,000,000 fine, not less than four-years and up to a life term of supervised release, and a $100 special assessment. Count II charges Barraza Saenz and Meza Salamanca with carrying a firearm during and in relation to a drug trafficking crime on or about October 12, 2021. The maximum possible penalty if convicted is not less than 5 years’ and up to life imprisonment consecutive to Count I, a $250,000 fine, a five-year term of supervised release, and a $100 special assessment. Count III charges Meza Salamanca with felon in possession of a firearm on or about October 12, 2021. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. Count IV charges Meza Salamanca with unlawful possession of a firearm after having a conviction for a misdemeanor crime of domestic violence. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Brayan Joaquin Carvajal-Alcantara, age 29, is charged with illegal reentry after deportation on or about August 1, 2022. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Yadira Chavarria-Enriquez, age 43, of Omaha, is charged with distribution of 500 grams or more of methamphetamine (mixture) on or about March 18, 2022. The penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, not less than five-years and up to life term of supervised release, and a $100 special assessment. There is also an allegation to forfeit $26,000.00 in United States currency seized on or about March 18, 2022.
* Holly M. Fleming, age 36, and Terrell C. Bass, age 39, are charged in a four-count Superseding Indictment. Count I charges Fleming and Bass with conspiracy to distribute and possession with intent to distribute 500 grams or more of methamphetamine (mixture) on or about October 27, 2021 and continuing to on or about February 18, 2022. The penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, not less than five-years and up to a life term of supervised release, and a $100 special assessment. Count II charges Fleming with possession with intent to distribute 50 grams or more of methamphetamine (actual) on or about October 27, 2021. The maximum possible penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, a not less than five-year and up to life term of supervised release, and a $100 special assessment. Count III charges Fleming and Bass with possession with intent to distribute 500 grams or more of methamphetamine (mixture) on or about February 18, 2022. The maximum possible penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, a not less than five-years and up to life term of supervised release, and a $100 special assessment. Count IV charges Fleming with using a firearm during a drug trafficking offense. The maximum possible penalty if convicted is not less than 5 years’ imprisonment and up to life imprisonment consecutive to count I, a $10,000,000 fine, a five-year term of supervised release, and a $100 special assessment. There is also an allegation to forfeit $61,198.76 in United States currency seized on or about May 23, 2022.
* Geraldo Hernandez-Mosqueda, age 44, is charged with illegal reentry after deportation on or about August 4, 2022. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Mark P. Nielson, age 43, of Omaha, is charged in a three-count Indictment. Count I charges Nielson with possession with intent to distribute 50 grams or more of methamphetamine (actual) on or about July 17, 2022. The penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, not less than five-years and up to a life term of supervised release, and a $100 special assessment. Count II charges Nielson with carrying a firearm in furtherance of a drug trafficking crime on or about July 17, 2021. The maximum possible penalty if convicted is not less than 5 years’ and up to life imprisonment consecutive, a $250,000 fine, a five-year term of supervised release, and a $100 special assessment. Count III charges Nielson with felon in possession of a firearm on or about July 17, 2022. The maximum possible penalty if convicted is 15 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. There is also an allegation to forfeit $1,914,00 in United States currency seized on or about July 17, 2022.
* Jason C. Olderbak age 34, of Grand Island, Nebraska, is charged with fraudulent use of seals of the United States on COVID vaccination cards on or about July 30, 2022. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* John W. Rice, age 34, is charged in a two count Indictment. Count I charges Rice with conspiracy to distribute 500 grams or more of methamphetamine (mixture) on or about May 4, 2020 continuing to on or about December 28, 2021. The penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, a five-year term of supervised release, and a $100 special assessment. Count II charges Rice with felon in possession of a firearm on or about December 28, 2021. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Alfred Rogers, age 61, of Omaha, is charged in a two-count Indictment. Count I charges Rogers with possession with intent to distribute 50 grams or more of methamphetamine (actual) on or about May 23, 2022. The penalty if convicted is not less than 15 years’ and up to life imprisonment, a $20,000,000 fine, not less than ten-years and up to life term of supervised release, and a $100 special assessment. Count II charges Rogers with carrying a firearm in furtherance of a drug trafficking crime on or about May 23, 2022. The maximum possible penalty if convicted is not less than 5 years’ and up to life imprisonment consecutive, a $250,000 fine, a five-year term of supervised release, and a $100 special assessment. There is also an allegation to forfeit $45,906.00 in United States currency seized on or about May 23, 2022.
* Russell L. Rucks, Jr., age 29, of Lincoln, Nebraska is charged in a three-count Superseding Indictment. Count I charges Rucks, Jr. with conspiracy to distribute and possession with intent to distribute 500 grams or more of cocaine and a detectable amount of fentanyl on or about April 1, 2021 and continuing to on or about August 12, 2021, resulting in serious bodily injury of F.F. and M.H. and resulting in the death of V.R. The penalty if convicted is not less than 20 years’ and up to life imprisonment, a $1,000,000 fine, not less than three years and up to a life term of supervised release, and a $100 special assessment. Count II charges Rucks, Jr. with distribution of cocaine and fentanyl on or about July 27, 2021, resulting in serious bodily injury of F.F. The penalty if convicted is not less than 20 years’ and up to life imprisonment life imprisonment, a $1,000,000 fine, not less than three years and up to a life term of supervised release, and a $100 special assessment. Count III charges Rucks, Jr. with possession with intent to distribute 500 grams or more of cocaine on or about August 12. 2021. The penalty if convicted is not less than 5 years’ and up to a 40 years’ imprisonment, a $5,000,000 fine, not less than four years and up to a life term of supervised release, and a $100 special assessment. There is also an allegation to forfeit $5,584.00 in United States currency seized on or about August 12, 2021.
* Russell L. Rucks, Sr., age 51, of Lincoln, Nebraska, is charged in a three-count Indictment. Count I charges Rucks, Sr. with conspiracy to distribute and possession with intent to distribute 500 grams or more of cocaine and a detectable amount of fentanyl on or about April 1, 2021 and continuing to on or about August 12, 2021 resulting in serious bodily injury of F.F. and M.H. and resulting in the death of V.R. The penalty if convicted is life imprisonment, a $2,000,000 fine, not less than six years and up to a life term of supervised release, and a $100 special assessment. Count II charges Rucks, Sr. with distribution of cocaine and fentanyl on or about July 27, 2021, resulting in serious bodily injury of F.F. and M.H. and resulting in the death of V.R. The penalty if convicted is life imprisonment, a $2,000,000 fine, not less than six years and up to a life term of supervised release, and a $100 special assessment. Count III charges Rucks, Sr. with possession with intent to distribute 500 grams or more of cocaine on or about August 12. 2021. The penalty if convicted is 10 years’ and up to a life imprisonment, a $8,000,000 fine, not less than eight years and up to a life term of supervised release, and a $100 special assessment. There is also an allegation to forfeit $5,584.00 in United States currency seized on or about August 12, 2021.
* Rogelio Torres-Rodriguez, age 25, of Lincoln, Nebraska, is charged with possession with intent to distribute 50 grams or more of methamphetamine (actual) on or about May 25, 2022. The penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, not less than five years and up to a life term of supervised release, and a $100 special assessment.
Grand Island Man Going to Prison for Aggravated Bank Robbery, Parents Sentenced for Accessory After the FactRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Timothy L. Mulvey, 35, of Grand Island, NY, who was convicted of aggravated bank robbery, was sentenced to serve 77 months in prison by U.S. District Judge Richard J. Arcara. In addition, Mulvey’s parents, Cheryl, 68, and Lawrence, 69, both of Grand Island, who were convicted of accessory after the fact, were sentenced to time served for their roles in Timothy Mulvey’s bank robberies.
Assistant U.S. Attorney Joshua Violanti, who handled the case, stated that on June 27, 2018, Mulvey entered the Northwest Savings Bank on Grand Island Boulevard and, wearing a disguise, approached the teller, displayed in his waistband a dangerous weapon that looked like a handgun, and demanded cash. The victim teller passed Mulvey approximately $2,044.00 in United States currency and Mulvey exited the bank. On July 11, 2018, Mulvey entered the M&T Bank on Military Road in Niagara Falls. Wearing a disguise and carrying a bag, Mulvey approached the teller and demanded cash, pulling a dangerous weapon that looked like a black gun halfway out of his bag. The victim teller passed Mulvey approximately $913.00 in United States currency, and Mulvey exited the bank.
At the time of the bank robberies, Mulvey was on New York State parole. After his arrest, he attempted to remotely erase the contents of his cellphone after giving it to law enforcement and consenting to its download. Mulvey also instructed his girlfriend to search in the basement insulation of their shared residence and to take whatever she found and discard it in a dumpster. The girlfriend found a black gun and took it to Mulvey’s parents’ house, and gave it to Mulvey’s father, co-defendant Lawrence Mulvey. Soon thereafter, that gun, which had been used in the robbery of the M&T Bank on July 11, 2018, was thrown away. In addition, Cheryl Mulvey admitted that she intentionally attempted to discredit a potential witness.
The sentencings care the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, the Erie County Sheriff’s Office, under the direction of Sheriff John Garcia, and the Niagara Falls Police Department, under the direction of Superintendent John Faso.
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Fridley Felon Sentenced to 18 Years in Prison for Selling Methamphetamine, Illegally Possessing FirearmsRead the Press Release
ST. PAUL, Minn. – A Fridley man was sentenced to 216 months in prison followed by five years of supervised release for methamphetamine distribution and firearms violations, announced United States Attorney Andrew M. Luger.
According to court documents, on February 1, 2019, law enforcement executed a search warrant at a residence in Columbia Heights. Officers encountered John Edward Juneau, 48, and two other people inside a detached garage. As a result of the search, officers found three plastic baggies containing more than 23 grams of 99% pure methamphetamine. Subsequent testing determined that Juneau’s DNA was present on the baggies.
According to court documents, on July 9, 2019, police executed a search warrant at a Coon Rapids residence. Officers saw Juneau trying to exit the residence through a basement bedroom window of the residence. Juneau dropped a bag outside the window that contained, among other things, a safe containing $6,000 in cash and numerous empty plastic baggies. Inside the residence, officers found quantities of 99% pure methamphetamine. The police also searched the garage located on the property and found a Ruger, .380 caliber pistol, a Ruger, .22 caliber pistol, two scales, several empty plastic baggies, and more than 40 grams of high purity methamphetamine.
Because Juneau has multiple prior felony convictions in Anoka, Sherburne, Hennepin, and Ramsey Counties, he is prohibited under federal law from possessing firearms or ammunition at any time.
On April 12, 2022, Juneau was convicted by a federal jury of one count of possession with intent to distribute methamphetamine, one count of possession of methamphetamine, one count of possession of firearms in furtherance of a drug trafficking crime, and one count of illegally possessing firearms as a felon. Juneau was sentenced earlier today in U.S. District Court before Judge Wilhelmina M. Wright.
This case was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Anoka-Hennepin Narcotics and Violent Crimes Task Force.
Assistant U.S. Attorneys Andrew Dunne and Harry Jacobs prosecuted the case.
Former Washington Woman Sentenced for Role in Forged Stimulus Check ConspiracyRead the Press Release
Acting United States Attorney Steven Russell announced that Courtney Laparele Clark, age 35, formerly of Tacoma, Washington, was sentenced today by United States District Judge John M. Gerrard to a sentence of time served for Conspiracy to Pass and Utter Forged United States Treasury Checks and two counts of Passing and Uttering Forged United States Treasury Checks. Clark has served more than 13 months’ incarceration at the time of her sentencing. There is no parole in the federal system. Clark will now begin a 3-year term of Supervised Release. Clark was also ordered to pay $1,400 in restitution and $300 in special assessments.
On March 26, 2021, Jessica Lovering went to the EZ Money Check Cashing location at 5102 L St. in Omaha, Nebraska and presented a forged United States Treasury stimulus check in the amount of $1,400 and was able to cash the check. A white powdery substance was used to obscure the original payee name and “Jessica Lovering” had been placed on the check as the payee. This United States Treasury Check was originally made payable to an individual who is an inmate in the United States Bureau of Prisons.
On April 26, 2021, Jessica Lovering went to the EZ Money Check Cashing location at 5102 L St. in Omaha and presented a forged United States Treasury stimulus check in the amount of $1,400. The check had originally been made payable to an inmate of the Nebraska Department of Corrections. A white powdery substance was again used to obscure the original payee name and “Jessica Lovering” had been placed on the check as the payee. The EZ Money employees recognized the check as being altered and denied payment.
Lovering received these checks from Clark. Text message and Facebook messenger conversations between Clark and Lovering were obtained via search warrants. In these conversations, Clark and Lovering discuss the manufacturing and alteration of checks. Clark and Lovering discuss Lovering cashing a check at the EZ Money near 50th and L Streets. Clark and Lovering discussed Clark getting checks back from Lovering and their splitting of the proceeds.
Lovering pleaded guilty Conspiracy to Pass and Utter Forged United States Treasury Checks and two counts of Passing and Uttering Forged United States Treasury Checks and was sentenced to time served on June 16, 2022 to be followed by a 3-year term of Supervised Release. Lovering had served three months and 11 days incarceration at the time of her sentencing.
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 United States Secret Service and the Omaha Police Department.
Former Merced Resident Sentenced to 60 Years in Prison for Sexual Exploitation of MinorsRead the Press Release
FRESNO, Calif. — Matthew Sheffield, 41, of Merced, was sentenced today to 60 years in prison to be followed by a lifetime of supervised release for his two convictions for sexual exploitation of a minor, U.S. Attorney Phillip A. Talbert announced.
In addition, Sheffield was ordered to pay $100,200 in special assessments and $25,000 in restitution to each of two victims.
According to court documents, law enforcement agents first encountered sexually explicit material in February 2018, and through investigative work and assistance from the National Center for Missing & Exploited Children, ultimately identified Sheffield as the person responsible for creating and distributing the material on the internet. During the execution of a search warrant at Sheffield’s house, agents recognized unique objects that are depicted in the images he created. On Aug. 29, 2019, Sheffield was indicted and on March 21, 2022, he pleaded guilty to two counts of sexual exploitation of children.
This case was the product of an investigation by the Federal Bureau of Investigation office in Fresno and the FBI Child Exploitation Operational Unit in Linthicum, Maryland. Assistant U.S. Attorney David Gappa and Child Exploitation and Obscenity Section Trial Attorney Nadia Prinz prosecuted the case.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Former Indiana State Senator and an Indianapolis Casino Executive Sentenced to Federal Prison for Criminal Election Finance SchemesRead the Press Release
INDIANAPOLIS – Darryl Brent Waltz, 48, of Greenwood, Indiana, and John Keeler, 72, of Indianapolis, were each sentenced today for devising and participating in election finance schemes. Waltz pleaded guilty to receiving fictitious donations and for lying and misleading FBI agents who were investigating these illegal contributions and was sentenced to ten months in federal prison. Keeler pleaded guilty to causing the filing of a false tax return and was sentenced to two months in federal prison.
According to court documents, Waltz, a former Indiana State Senator and 2016 candidate for U.S. Congress, funneled $40,500 in illegal conduit contributions to his congressional campaign. Maryland-based political consultant Kelley Rogers directed corporate funds from Indiana-based casino company New Centaur LLC into the “Brent Waltz for Congress” campaign through over a dozen straw donors and Waltz himself.
Also, according to court documents, Keeler, former vice president and general counsel of New Centaur LLC, paid Rogers $41,000 in New Centaur corporate funds and directed him to funnel $25,000 to a local political party committee in Marion County, Indiana. To further conceal the nature of the contribution, Keeler caused New Centaur’s federal tax return filed with the Internal Revenue Service to falsely describe the $41,000 payment to Rogers as a deductible business expense.
The FBI and IRS-Criminal Investigation investigated the case. The sentence was imposed by U.S. District Chief Judge James R. Sweeney II. As part of the sentence, Judge Sweeney ordered that Waltz be supervised by the U.S. Probation Office for two years following his release from federal prison and pay a $40,500 fine. Keeler was ordered to be supervised by the U.S. Probation Office for one year following his release from federal prison and pay a $55,000 fine.
“Illegal and undisclosed corporate contributions damage public trust in our elections,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Secretly funneling illegal casino money into political campaigns is a serious crime and the criminals who do so will be held accountable.”
“The integrity of our elections is of paramount importance to maintaining public trust in our democratic process,” said Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division. “Today’s sentencings demonstrate that the FBI is committed to ensuring that those who attempt to undermine the public’s trust by perpetrating election finance schemes and then compounding their misdeeds by lying to authorities, will ultimately be held to account for their actions.”
"The sentencing of these individuals proves there are consequences for the misuse of positions of trust within both the private and public sector," said Special Agent in Charge Justin Campbell, Chicago Field Office, IRS – Criminal Investigation. "IRS Criminal Investigation is committed to protecting the integrity of our system of taxation by investigating individuals who violate our tax laws."
U.S. Attorney Myers, Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division, and Justin Campbell, Special Agent in Charge of the IRS-Criminal Investigation Division in Chicago made the announcement.
U.S. Attorney Myers and A.A.G. Polite thanked Bradley P. Shepard, Senior Litigation Counsel for the U.S. Attorney’s Office, and William J. Gullotta and John P. Taddei, Trial Attorneys in the Justice Department’s Public Integrity Section for their work in prosecuting these cases.
Former Fort Gordon soldier sentenced to federal prison for distributing child pornographyRead the Press Release
AUGUSTA, GA: A former U.S. Army soldier was sentenced to 15 years in prison after admitting he distributed child pornography.
Joshua Gamble, 30, of Fort Gordon, was sentenced to 180 months in prison after previously pleading guilty to Distribution of Child Pornography, said David H. Estes, U.S. Attorney for the Southern District of Georgia. U.S. District Court Chief Judge J. Randal Hall also ordered Gamble to pay a fine of $5,000, to serve 20 years of supervised release after completion of his prison term, and to register as a sex offender. There is no parole in the federal system.
“Joshua Gamble could have served honorably in the military, but instead served his own depravity by using the internet to exploit vulnerable children,” said U.S. Attorney Estes. “Our vigilant law enforcement partners continue to perform outstanding work in identifying and shutting down these predators.”
As described in court documents and testimony, in 2021 FBI agents were investigating reports of illegal distribution of child pornography via an Internet chat application. After searching Gamble’s room in a Fort Gordon barracks, Agents arrested Gamble in October 2021. The investigation also determined that prior to joining the U.S. Army in May 2021, Gamble worked as a middle-school paraprofessional in Minnesota.
“This sentence should send a clear message to anyone who would try to take advantage of innocent children,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Gamble’s 15 years in prison will give him plenty of time to think about his unacceptable behavior, but more importantly while in prison, he won’t be able to do harm to any more children.”
The case was investigated by the FBI, and prosecuted for the United States by Assistant U.S. Attorney and Project Safe Childhood Coordinator Tara M. Lyons.
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 800-843-5678, or https://report.cybertip.org/.
Former CEO of Email Security Company Pleads Guilty to $50 Million Scheme to Defraud Investors and LendersRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that ROBERT BERNARDI, the founder, and former Chief Executive Officer of the Virginia-based email security company GigaMedia Access Corporation, d/b/a GigaTrust (“GigaTrust”), pled guilty today in Manhattan federal court in connection with a scheme to defraud investors and lenders of millions of dollars through false and misleading misrepresentations, including fabricated bank statements and audit reports, and by impersonating a purported customer, auditor, and GigaTrust lawyer. U.S. District Judge Paul G. Gardephe accepted the defendant’s guilty plea.
U.S. Attorney Damian Williams said: “Robert Bernardi, founder and former CEO of Gigatrust, a purported market-leading provider of cloud-based content security solutions, used the prolific reputation of his company to secure upwards of $50 million in loans and investments. But, as he admitted today, Bernardi’s representations to lenders and investors were just a house of cards built on a series of lies.”
According to the allegations in the Indictment and other filings and statements made in court:
From in or about 2016 through at least in or about 2019, GigaTrust was a private company headquartered in Virginia that purported to be a market-leading provider of cloud-based content security solutions. BERNARDI founded GigaTrust and served as its CEO, while NIHAT CARDAK and SUNIL CHANDRA were GigaTrust’s CFO and Vice President of Business Development, respectively. The defendants devised a scheme to defraud investors and lenders by (a) fabricating and disseminating false and misleading bank account statements that overstated GigaTrust’s cash deposits; (b) fabricating and disseminating false and misleading audit materials that purported to have been issued by GigaTrust’s auditors and overstated GigaTrust’s performance; (c) forging and disseminating a false and misleading letter purporting to be from GigaTrust’s New York-based counsel; and (d) impersonating or causing others to impersonate a purported customer and auditor of GigaTrust on telephone calls with a prospective lender.
Specifically, BERNARDI sent fabricated audit materials to a New York-based investment firm, and BERNARDI and CARDAK used fabricated bank statements to obtain multiple rounds of loans and investments for GigaTrust, worth millions of dollars. After a New York-based bank (“Bank-1”), which had loaned GigaTrust $25 million, declared that GigaTrust had defaulted on the terms of its loan agreement, BERNARDI and CARDAK induced additional investments in GigaTrust through, among other things, forging a letter purporting to be from GigaTrust’s New-York based counsel. Shortly thereafter, while negotiating another $25 million deal with a lender (“Lender-1”), BERNARDI and CARDAK devised a scheme to impersonate a GigaTrust customer and auditor on requested diligence calls, which induced Lender-1 to make a $25 million loan to GigaTrust. BERNARDI recruited CHANDRA to pose as one of GigaTrust’s alleged customers on a call with Lender-1. BERNARDI and CARDAK also fabricated bank statements and sent them to Lender-1 right before closing the $25 million deal.
GigaTrust filed for Chapter 7 bankruptcy protection in the District of Delaware on or about November 27, 2019.
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BERNARDI, 68, pled guilty to one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison, one count of conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in prison, and one count of conspiracy to commit wire fraud affecting a financial institution, which carries a maximum sentence of 30 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation in this case. Mr. Williams further thanked the Securities and Exchange Commission, which has filed a civil enforcement action against the defendants, for its cooperation and assistance in this investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Peter J. Davis and Emily A. Johnson are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Essex County Man Sentenced to One Year in Prison for Obstructing Justice while on Pre-Trial ReleaseRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 12 months in prison for obstructing justice while on pre-trial release, U.S. Attorney Philip R. Sellinger announced.
Robert Alexander, 45, of Newark, previously pleaded guilty by videoconference before U.S. District Judge Brian Martinotti to a superseding indictment charging him with obstructing justice while on pre-trial release.
According to documents filed in this case and statements made in court:
On Jan.14, 2019, Alexander pleaded guilty to an information charging him with one count of making a false statement on a loan application in a criminal case that was pending before Chief U.S. District Judge Freda L. Wolfson. On Sept. 4, 2019, Judge Wolfson sentenced Alexander to 46 months in prison; the sentence imposed by Judge Martinotti today will run consecutively to that sentence.
On Oct. 8, 2019 – the day before Alexander was scheduled to voluntarily surrender to the Bureau of Prisons to begin serving his sentence – he caused a forged medical note to be submitted to Judge Wolfson in support of a request to delay the date of his voluntary surrender. The forged medical note contained falsified information and was submitted with the specific intent to influence and impede Judge Wolfson in the discharge of her duties as the judge presiding over his case. At the time of the offense, Alexander was on pre-trial release.
In addition to the prison term, Judge Martinotti sentenced Alexander to three years of supervised release.
U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Damon Wood, Philadelphia Division, with the investigation leading to today’s sentencing.
The government is represented by U.S. Attorney DeNae Thomas of the Criminal Division in Newark.